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CC SR 20220906 F - Claim Against the City Conjunction Junction CITY COUNCIL MEETING DATE: 09/06/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action regarding a claim against the City by Conjunction Junction LLC. RECOMMENDED COUNCIL ACTION: 1) Reject the claim and direct Staff to notify the claimant, Conjunction Junction LLC. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: William W. Wynder, City Attorney REVIEWED BY: Teresa Takaoka, City Clerk APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Conjunction Junction LLC claim (page A-1) B. City Attorney Letter (page B-1) BACKGROUND AND DISCUSSION: The City of Rancho Palos Verdes (City) is a member of the California Joint Powers Insurance Authority (Authority), which provides risk management services and handles any liability claims received by the City. Under the current practice, claims presented to the City Clerk are forwarded by the Authority to a third-party claims administrator, Carl Warren and Company (Carl Warren) for adjusting. Carl Warren’s staff reviews each claim on its merits and contacts the City with any requested action pertaining to the disposition of the claim. The City Clerk and the City Attorney review each claim when received and work closely with Carl Warren throughout the claims process. 1 Claimant: On August 3, 2022, the City received a claim for damages from Conjunction Junction LLC. The claim was referred to Carl Warren for review and investigation. The claimant has demanded that the City provide a street address for vacant property allegedly owned by the claimant. Staff has declined to provide such an address for the reasons set forth in a letter to the claimant from the Office of the City Attorney. The Claimant seeks the cost of installing a fence and indemnity from any trespass resulting in damage to the property. Deposition: The CJPIA has advised that this claim is not covered by the memorandum of coverage and has forwarded the same to the Office of the City Attorney for review and recommendation. The City Attorney’s Office has reviewed the claim and found that there is no liability for the City on the basis there is nothing in the City’s municipal code that allows or requires the City to issue addresses on vacant property, neither has the City an obligation to pay for the installation of a fence. The City Attorney, therefore, recommends denying the claim for damages. 2 A-1 A-2 William W. Wynder 2361 Rosecrans Ave., Suite 475 El Segundo, CA 90245 01203.0005/805442.2 July 22, 2022 SENT VIA E-MAIL eilenberglegal@gmail.com ONLY Beniamin Eilenberg Conjunction Junction LLC Subject: Administrative Appeal Letter; July 19, 2022 Mr. Eilenberg: We are City Attorney for the City of Rancho Palos Verdes. Your purported administrative appeal (of which we have been copied) has been referred to our office for a response. For the reasons that will follow, no administrative appeal is afforded in the Rancho Palos Verdes Municipal Code from a declination to provide you with a street address, nor do you cite to a section of the municipal code that so affords. While the City appreciates the frustration you may feel given the United States Postal Service declined to issue an address and referred you back to the City, there is simply nothing in the City’s municipal code that allows or requires the City to issue addresses on vacant property. Neither does your letter cite to any such authority. Your letter suggests that the City’s failure to provide you with the requested property address amounts to an unconstitutional “taking” of property. That is wrong as a matter of law. See, Colony Cove. v. City of Carson, 888 F.3d 445 (9th Cir. 2018) (“If ‘an owner possesses a full “bundle” of property rights, the destruction of one “strand” of the bundle is not a taking, because the aggregate must be viewed in its entirety.’ . . . Not every diminution in property value caused by a government regulation rises to the level of an unconstitutional taking. Government hardly could go on if to some extent values incident to property could not be diminished without paying for every such change in the general law. . . . Thus, we have observed that diminution in property value because of governmental regulation ranging from 75% to 92.5% does not constitute a taking. [Citation omitted.] The Federal Circuit has noted that it is ‘aware of no case in which a court has found a taking where diminution in value was less than 50 percent.’”) There are options available to you to secure the property in question that do not require a property address. You may be free, for example, to fence the property which will require no permits or entitlements from any public agency. We are advised the Los Angeles County Assessor’s office will assign vacant lots a designation known as “VAC/VIC” (“vacant lot in the B-1 Beniamin Eilenberg Page 2 01203.0005/805442.2 vicinity of”) as a proximity designation for your property. Such a designation may also be sufficient for your purposes. In short, the City is not in a position, nor does it have the legal obligation, to assign a street address to vacant property. Finally, as already noted by City staff, your vacant property is located in an active landslide zone. In RPVMC § 15.20.020 “the city declare[d] a moratorium on the filing, processing, approval or issuance of building, grading or other permits, environmental assessments, environmental impact reports, conditional use permits, tentative maps or parcel maps in the area of the city identified as the ‘landslide moratorium area’ as outlined in red on the landslide moratorium map on file in the office of the director . . . .” Your request to install cameras and related equipment may require the issuance of a building permit which, under the terms of th e moratorium ordinance, cannot be issued in any event. Very truly yours, William W. Wynder of ALESHIRE & WYNDER, LLP Copies: (v/e-mail only) Mr. Ara Mihranian, AICP, City Manager; Mr. Ken Rukavina, Community Development Director; Mr. Octavio Silva, Deputy Community Development Director & Planning Manager B-2