2014/11/19 Council Agenda Packet

♦ EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET `>0 PROJECT TITLE: Final tort claim settlement for Briefmg COUNCIL BILL# the property located at 11603 Proposed Action Originating Department Legal Hwy. 99, Corongo Consent Contact Person Jim Iles Corporation 11/19/2014 Action Phone Number 425-257-7000 First Reading FOR AGENDA OF 11/19/2014 Second Reading Third Reading Initialed by: Public Hearing Department Head Budget Advisory CAA cdnt Council President Location Preceding Action Attachments Department(s)Approval 11603 Hwy. 99, Everett 3/20/13 Council approved partial Utilities, Legal claim settlement of$215,000 Amount Budgeted Expenditure Required $314,916.09 Account Number(s): 503-5141030460(Tort Fund) Budget Remaining Additional Required $54,699.23 DETAILED SUMMARY STATEMENT: In March 2013, Council approved the partial tort claim settlement td Corongo Corporation"(Star Produce) for $215,000, in addition to $45,216.86 previously paid for damage to 11603 Hwy. 99."Now that a final settlement has been reached in the additional amount of$54,699.23,for a total final settlement of$314,916.09, Council authority is required to finalize the settlement. The additional time required to reach final settlement amount was due to the complexity of the claim. v Background: This claim for damages for the property located at 11603 Hwy. 99,Everett, stems from November 20, 2012,when a City Utility 12-inch cast iron water main broke south of the intersection of 112th and Hwy. 99. Water traveled down the roadway approximately 500 feet and diverted into the basement and exterior of the business at that address to a depth of approximately three feet. The business is essentially a full grocery store, including meat counter and specialty seafood,as well as many sundries and cooking supplies. The basement area totals 4000 square feet including 1500 square feet of cold storage, a large walk-in freezer, a refrigeration unit, office space, bathroom, meat processing equipment, and a large warehouse area. Damages include: the clean-up and repairs to the basement area performed by an independent contractor; damaged meat cutting and other equipment; destroyed produce/meat, miscellaneous merchandise;the walk-in freezer and its contents; office equipment; and a variety of miscellaneous items. There are also additional labor costs involved in clean-up and operation of the store. There was a legal dispute between the owners of the business at this address. As a result of the settlement,the final payment for this claim is to be made to Quang Ngo. RECOMMENDATION(Exact action requested of Council): Approve the final tort claim settlement for the property located at 11603 Hwy. 99, Corongo Corporation, in the additional amount of$54,699.23,for a total final settlement of$314,916.09. 131