HomeMy WebLinkAboutSettlement of City of Huntington Beach vs Alvarez, et al. -Council/Agency Meeting Held:
Deferred/Continued to:
Apprpyed� ❑ Conditionally Approved ❑ Denied �/CitWClef s Sign ure
Council Meeting Date: November 5, 2012 1 Departm&WID Number: PW-12-062
0161.014441VId Well]
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
SUBJECT: Approve appropriation funds in the amount of $97,367.51 for the
Settlement of City of Huntington Beach v. Alvarez, et al. (Garfield
Widening) Orange County Superior Court Case No. 07CCO2215
Statement of Issue: An additional appropriation is needed from the Traffic Impact Fund
balance in order to make payment on a settlement related to the Garfield Avenue Widening
Project.
Financial Impact: Funds in the amount of $97,367.51 are available in the Traffic Impact
Fund balance.
Recommended Action: Motion to:
Appropriate $97,367.51 from the Traffic Impact Fund balance to account 20685201.69380.
Alternative Action(s):
Do not authorize the appropriation and provide direction for staff.
HB -373- Item 8. - 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 11/5/2012 DEPARTMENT ID NUMBER: PW-12-062
Analysis: On January 25, 2007, the City commenced eminent domain action against the
owners of four parcels to acquire 20-feet of right-of-way in order to widen Garfield Avenue
between Delaware and Florida Streets. The City reached an agreement with one of the
parcel owners, but the owners of the other three parcels, all members of the Alvarez family,
declined the City's offer.
The City gained possession of the property in 2007 and proceeded with the street widening,
depositing $198,375.05 with the State Treasurer representing $85/square foot (sf) for 12-feet
of right-of-way for a new travel lane and $9/sf for the 8-feet of right-of-way needed to install
curb, gutter and sidewalk. The Alvarez appraiser valued the same land at $300,900
disputing that the $9/sf portion should be valued at $85/sf. The Alvarez family filed suit
claiming a variety of damages. While the Court ultimately agreed with the City, the City is
obligated to pay just compensation for the public acquisition of private property in an action
for eminent domain.
To date, the Alvarez family has obtained an order withdrawing $143,242.50 from the original
amount deposited with the State Treasurer. With one other minor expense related to the
undisputed property, the balance left with the State Treasurer is $52,632.49. The Alvarez
Defendants made a settlement demand for an additional $250,000 over and above the
amount withdrawn previously.
At the September 17, 2010, closed session of the City Council, the City Attorney
recommended and staff was granted authority to make settlement in an additional amount
not to exceed $150,000. At the October 15, 2012, closed session of the City Council, staff
reported that a settlement had been reached within this authority. However this expenditure
was not included in the Fiscal Year 2012-13 budget and an additional appropriation is
needed to make payment. The appropriation requested represents the amount needed to
supplement the balance held by the State Treasurer ($150,000 - $52,632.49 = $97,367.51).
Environmental Status: Not applicable
Public Works Commission Action: Not applicable.
Strategic Plan Goal: Improve the City's infrastructure
Attachment(s):
Item 8. - 2 HB -374-