TITLE
Recommendation to authorize City Manager to approve payment of
$95,000 to Dr. and Mrs. Bernard Gantes for property damage sustained at their residence. (Citywide)
DISCUSSION
On January 25, .2005, Dr. and Mrs. Bernard Gantes filed, a claim with the City of Long
Beach for damages resulting from an incident that occurred on June 3, 2003. The
Gantes' alleged that the Long Beach Energy Department (LBE) damaged their house,
specifically that their sewer line was ruptured when LBE used "pierce arrow" equipment
to set a gas line. As a result of the rupture, the house, which was near completion as a
remodel, sustained structural subsidence to one side and required sewage clean up.
The resulting claim for damages related directly to the repairs and clean up paid for by
Dr. Gantes.
LBE did not dispute that it caused the damage, but did dispute the damage claim
amount, which was in excess of $200,000. After review by the City Attorney of the
documentation presented by Dr. Gantes, a $95,000 comprQmise was reached.
Both parties have agreed to this settlement. The City and Dr. and Mrs. Gantes signed a
Release and Settlement of Claim on August 24, 2005. The release was not an
admission of liability and prohibits the Gantes' from claiming any further damages
related to this incident.
This matter was reviewed by Deputy City Attorney Richard Anthony and by Budget
Management Officer Dave Wodynski on September 9,2005.
TIMING CONSIDERATIONS
City Council action is requested on September 20, 2005. There are no exigent
circumstances regarding this claim; however, immediate payment on this claim is
requested.
FISCAL IMPACT
The $95,000 settlement will be paid out of the Gas Fund (EF 301) in the Department of
Long Beach Energy (EN).
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
[Respectfully Submitted,]