CC - Agendas - City Council - REGULAR - 3/23/2010

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f COUNCIL AGENDA MEMO — MarchS, 2010 DEPARTMENT: Legal AGENDA ITEM: Proposed Lawsuit Settlement of Bobby and Beth Raber vs. City of Prescott Approved By: Date: Department Head: Gary D. Kidd (,;,/)/Z 3//9/0 Finance Director: Mark Woodfill City Manager: Steve Norwood(' I J Item Summary- Plaintiffs sued the City in 2008, alleging the City installed waterlines diagonally through their property cutting off usage of a large portion of the property. Plaintiffs alleged they intended to build a home at the highest and most beneficial point on their nine acre property and the water lines prevent them from doing that. Plaintiffs alleged that the City had no easements and/or easements set to expire in the near future for these waterlines. The City filed a counter-claim and trial was scheduled for this year. The parties went to mediation but a settlement was not reached at that time although the Mediator urged a much higher settlement amount to the Plaintiffs than ultimately has been proposed here. Since then, the parties have negotiated a total settlement which includes the following highlights: 1. Payment of the sum of $42,500 by the City to Plaintiffs subject to Council approval in an effort to avoid the necessity of further litigation and trial; 2. Agreement by the City to pay the mediation fees on behalf of the Plaintiffs in an amount not to exceed $5,000 upon presentation of an invoice from the.Mediator; 3. Plaintiffs' right to relocate the 14" water line by January 1, 2020, at Plaintiffs' expense so long as such relocation meets City standards and Plaintiffs provide City with any additional necessary easements to accommodate same; 4. Plaintiffs are to provide the City all new necessary easements to encompass the preexisting waterline on the subject property. The easements shall remain in perpetuity; and 5. Lastly, the City will quitclaim deed its legal rights and interests in the property commonly referred to as Lorraine Drive in and around the vicinity of Robbin Drive to the Plaintiffs. This settlement is deemed reasonable by staff and likely much less than the total cost of trial. Fiscal Impact:: $42,500; Plaintiffs' mediation fees not to exceed $5,000; and the value of the Lorraine Drive transfer. Recommended Action: Authorize the Mayor and City Attorney to enter into the proposed Settlement Agreement with Plaintiffs for the terms stated therein.