passed ordinance

*Authorize settlement in the matter of Water Avenue Associates’ tort claim for the sum of $65,000 involving the Portland Water Bureau

infrastructure utilities
claim settlement

Department: City Attorney
Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

This Ordinance settles a property damage claim brought by Water Avenue Associates, LLC resulting from alleged trespassing and inverse condemnation in southeast Portland.

Financial impacts

This legislation will have no impact on City revenue. Total cost to the City to settle the claim is $65,000. The sources of funding are the City’s Insurance and Claims Fund in the amount of $26,000 and the Portland Water Bureau in the amount of $39,000. All cost of the settlement is in the current fiscal year. This Ordinance does not amend the budget.

Community impacts

This Ordinance settles a tort claim resulting from trespass allegations involving the Portland Water Bureau and an additional non-tort allegation of inverse condemnation. No public involvement or input was sought regarding this Ordinance. The City Attorney’s Office and Risk Management have concluded that it is not appropriate to have public involvement in settlement negotiations regarding tort claims or lawsuits against the City. No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle a tort claim against the City of Portland.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: In 2020, Water Avenue Associates filed a tort claim notice against the City, in case number 2020-009702-20 (“the Tort Claim Notice”), alleging trespass and inverse condemnation claims and seeking damages related to the Portland Water Bureau’s allegedly unauthorized use of Water Avenue Associates’ property for staging construction equipment. This Tort Claim Notice is being investigated by Risk Management Services. The investigation indicates that the City may be liable for trespass and inverse condemnation. Risk Management Services provides coverage for trespass claims but does not provide coverage for inverse condemnation claims. To fully resolve this Tort Claim Notice without further legal proceedings, and to avoid the legal and financial risks of litigation, Risk Management Services and the Portland Water Bureau recommend the payment of $65,000 to Water Avenue Associates in settlement of all claims alleged in the Tort Claim Notice. NOW, THEREFORE, the Council directs: Risk Management Services and the Portland Water Bureau are hereby authorized to enter into and execute a settlement agreement and release, in a form substantially similar to Exhibit A attached hereto, to resolve the Tort Claim Notice. Risk Management Services is hereby authorized to draw and deliver a check from the City’s Insurance and Claims Fund in the amount of $26,000.00 made payable to Water Avenue Associates. Portland Water Bureau is hereby authorized to draw and deliver a check from the Water Operating Fund in the amount of $39,000.00 made payable to Water Avenue Associates. If the check authorized in Paragraph (a) herein is not tendered by July 15, 2022, Risk Management Services and the Portland Water Bureau are hereby authorized to add interest at the legal rate set forth in ORS 82.010 to those payments beginning July 15, 2022. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this matter; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

4 yea 0 nay 1 other