SUBJECT/RECOMMENDATION:
Title
Authorize settlement of Szlechta, et al., d/b/a Tropical Sky Ranch Hotel v. City of Clearwater, Case No. 08-16343-C-15, and City v. Atkins North America, Inc. f/k/a/ Post, Buckley, Schuh and Jernigan, Inc., Case No. 09-21391-CI-015. (consent)
Body
SUMMARY:
This case arises from incidents connected with the redesign and construction of Coronado Drive on Clearwater Beach. As a result of that redesign and the construction, several property owners/businesses whose property fronted on Coronado Drive brought inverse condemnation actions against the City. The City, in turn, brought an action against Atkins, f/k/a Post Buckley Shuh and Jernigan, the City's design engineers, for alleged defects in the design of the project.
One of the cases was settled at mediation and three of the cases were tried before a circuit judge. The trials resulted in a finding that no encroachment or taking occurred in one of the cases and de minimis encroachments occurred in the other two cases.
In August 2014, Szlechta, the last remaining case involving a taking, was mediated in an attempt to resolve all outstanding claims and any damages, costs and fees to which the plaintiffs were entitled. A settlement was tentatively reached wherein the City would pay plaintiff $25,000 and Atkins would pay the plaintiff and their attorneys $100,000. This would resolve all outstanding claims the plaintiff has or may have against the City and all claims the City may have against Atkins.
This settlement agreement would provide that the plaintiffs provide the City with full releases of all claims, and that the City would provide Atkins with a full release of all claims. All pending cases between the parties would be dismissed with prejudice.
APPROPRIATION CODE AND AMOUNT:
Not to exceed $25,000.00
Account 0-010-07000-534000-519-000-0000
USE OF RESERVE FUNDS:
Funding for this settlement will be provided by a first quarter budget amendment allocating General Fund reserves in the amount of $25,000 to cost code 010-07000-534000-519. The balance in General Fund reserves is approximately $17.9 million, or 15.3% of the 2014/15 General Fund operating budget. A total of $1,126,214 of General Fund reserves has been used to date to fund expenditures in the 2014/15 operating budget.