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
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