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CC SR 20170620 X - Denial of Fantore Defamation Libel Claim for DamagesRANCHO PALOS VERDES CITY COUNCIL AGENDA REPORT AGENDA DESCRIPTION: MEETING DATE: 06/20/2017 AGENDA HEADING: Consent Calendar Consideration and possible action regarding a claim for defamation and libel against the City by claimant, Michael Fantore. RECOMMENDED COUNCIL ACTION: 1) Reject the claim and direct Staff to notify the claimant. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Emily Colborn, City Clerke REVIEWED BY: Gabriella Yap, Deputy City Manager =: APPROVED BY: Doug Willmore, City Manager JVr ATTACHED SUPPORTING DOCUMENTS: A. Michael Fantore April 17, 2017, claim (page A-1) B. Michael Fantore May 16, 2017, Amendment (page B-1) BACKGROUND AND DISCUSSION: On April 17, 2017, Mr. Michael Fantore ("claimant") presented a claim for damages to the City for engineering expenses he alleges he incurred in reliance on a permit issued by the City. The background of his claim is as follows: Mr. Fantore constructed a deck on his property at 30530 Ganado Drive without obtaining the necessary permit from the City. To address the unpermitted construction, the City informed him that he needed to apply for an after -the -fact permit, which he subsequently did. The City granted him Permit No. ZON2015-00355. Mr. Fantore's claim alleges that he incurred $5,807.50 for engineering services related to the deck after the Permit No. ZON2015-00355 was approved. Also, after the permit was approved, Staff learned that Mr. Fantore's permit application contained incorrect information. Specifically, Section 17.48.060 of the Rancho Palos Verdes Municipal Code ("RPVMC") states [n]o development or construction of any structure shall be allowed on any extreme slope (grade of thirty-five percent or greater). The information provided on the plans submitted with Mr. Fantore's permit application did not correctly describe the slope as a percentage, as required by the RPVMC, but rather stated that 01203.0019/384045.1 1 the slope was 29.14 degrees. Staff requested that the correct information be provided. Following that request, after further review by Mr. Fantore's engineer, it was determined that the deck was constructed on an approximately 59% slope, which is not permitted by the RPVMC. Accordingly, because the unpermitted deck was constructed on an extreme slope in violation of RPVMC §17.48.060, the after -the -fact permit was then revoked on December 16, 2015. Mr. Fantore's April 17, 2017, claim for the engineering expenses was untimely, having been presented to the City approximately one year and four months after his permit was revoked. The untimeliness of his claim was explained to the City Council in a Staff report posted with the City Council Agenda for the May 16, 2017, City Council meeting. That Staff report also explained other grounds for the denial of Mr. Fantore's claim, including but not limited to the fact that the City had no liability because the permit was revoked due to Staff's discovery that incorrect information was provided on the permit application. On May 16, 2017, prior to the City Council meeting, Mr. Fantore presented a document to the City which he entitled an "Amendment" to the April 17, 2017, claim for damages. In the "Amendment," Mr. Fantore demanded "property damages in the amount of $250,000" and damages for "defamation [sic] libel." Because Mr. Fantore presented this "Amendment" on the day of the City Council meeting, the City Council did not take action on the claim and the item was continued so that Staff could evaluate the new material submitted by Mr. Fantore. Like the damages demanded in the original April 17, 2017, claim, the "property damages" aspect of the Amendment was also untimely, as the permit revocation occurred one year and five months before he presented his claim. Because the claim for damages for engineering costs and property damage was not timely, Staff sent Mr. Fantore a "Notice and Return of Late Claim" on May 30, 2017. As for the defamation and libel portion of the Amendment, the City Attorney's office investigated this claim. In a phone conversation with Mr. Fantore, he explained that the defamation and libel claim arises out of the statements made in the May 16, 2017, Staff report that Mr. Fantore's permit application contained "false" information. Because the defamation and libel allegations are based on the May 16, 2017, Staff report, only this portion of his claim is timely. RECOMMENDATION The City Attorney's office recommends that the City Council reject Mr. Fantore's claim for defamation and libel because there is no basis for the City's liability. The reasons why there is no liability include, but are not limited to, the fact that the statements in the May 16, 2017, Staff report were true statements based on Staff's assessment of the deck constructed on Mr. Fantore's property and the slope on which it is located. If the City Council does not act on claimant's claim for damages, the claim will be deemed rejected as a matter of law 45 days after date of the claim, which in this case is 01203.0019/384045.1 2 June 30, 2017. If a claim is rejected as a matter of law, the claimant has two years from the date of the alleged incident in which to file a lawsuit, as per Gov. Code § 945.6(a)(2). If, however, the City Council adopts Staff's recommendation to reject the claim, claimant's statute of limitations will be reduced to six months from the date the rejection is personally served or deposited in the mail, as per Gov. Code § 945.6(a)(1). 01203.0019/384045.1 3 30530 Ganado Drive Rancho Palos Verdes, Calif 90275 April 17, 2017 Christina Burrows, Assistant City Attorney City of Rancho Palos Verdes 30940 Hawthorne Blvd, Rancho Palos Verdes, Calif. 90275 Subject: Demand for $5,807.50 Dear Ms. Burrows: RECEIVED As you have been informed previously, Permit #ZON2015-00355 was approved on August 4, 2015 after I was told on July 21, 2015 that the city geologist would be sent to my property on that same day and he did arrive after the city arranged for him to come to my property. Two staff members at the counter told me on the same day, "the permit would not be granted if the geologist found the hillside to be unsuitable for my viewing deck"..After the geologist's approval on August 4, 2015,1 moved ahead and contracted for two engineers for engineering services on the "approved" project spending $5,807.50 on engineering. Several weeks later, I received a call from Mr. AraMiihranian on October 24, 2015 telling me to come to the planning department and cancel the above noted permit and my $854.00 would be returned to me. No mention was made of the $5,807.50 that I had subsequently spent on further engineering after the permit was approved. Then on December 16, 2015 Mr. Joel Rojas, Planning Director told me, "the permit was revoked"! When I responded with, "what about the geologist's visit to my property?" Mr. Rojas responded, "we didn't send a geologist to your property"! At that point, I knew, I was being made the scapegoat for the city's approval of the above noted permit. Now, I understand, Mr. Rojas has since retired from the city. Please remit my demand forthwith. Sincerely, Michael Fantore c: Finance Department A-1 30530 Ganado Drive Rancho Palos Verdes, Calif 90275 ZZ21; City Clerk City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, Calif. 90275 Subject: Amendment to Demand letter of April 17, 2017 Dear City Clerk: The Demand letter of April 17, 2017 is being amended to include property damage in the amount of $250,000.00 and for defamation libel, unspecified damages. Sincerely, Michael Fantore As