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HomeMy WebLinkAboutItem 1b: Appropriation of $20,000 to Settle Case of April VerlatoSUMMARY STAFF REPORT Arcadia Redevelopment Agency DATE: January 19, 2010 TO: Chairman and Members of the Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director: LK Lisa Mussenden, Chief Deputy City Clerk/Records Manager SUBJECT: Request for an appropriation of $20,000 from Arcadia Redevelopment Agency Unprogrammed Reserves to settle the case of Verlato, et al. v. City of Arcadia, et al. Recommendation: Approve On April 9, 2009, the City was served with a Summons & Complaint filed by April Verlato, et al. alleging the City cemented over a roof drain resulting in water damage to the roof and interior of the building located at 33 East Huntington Drive. As a result of discussions between attorneys representing the City and Plaintiff, a settlement was reached in the amount of $20,000. Since the project that gave rise to this lawsuit was a redevelopment agency project, an appropriation of $20,000 from Redevelopment Agency unprogrammed reserves is being requested. DISCUSSION In 1995, the City hired a contractor for the construction of the "Downtown 2000 Streetscape Project" to enhance and beautify the Downtown area. As part of this project, sidewalk enhancements, landscape planters and driveway approaches were constructed. As a result of this work, Plaintiff alleges the roof drain to the building at 33 East Huntington Drive was cemented over and blocked causing rain water to back up onto the roof and interior of the building. Through discussions between attorneys representing the City and Plaintiff a settlement in the amount of $20,000 was reached. Since the project that gave rise to this lawsuit was a redevelopment agency project, an appropriation of $20,000 for this settlement should come from the Arcadia Redevelopment Agency. Verlato v. City of Arcadia January 19, 2010 Page 2 FISCAL IMPACT There is no fiscal impact to the General Fund as a result of this settlement; however, the settlement amount of $20,000 will be paid from the Arcadia Redevelopment Agency unprogrammed reserves, which has adequate funds to cover this payment. RECOMMENDATION Staff recommends that the City Council appropriate $20,000 from Arcadia Redevelopment Agency unprogrammed reserves to settle the case of April Verlato, et al v. City of Arcadia, et al. APPROVED: Donald Penman Executive Director 2