1990/05/22 City Council Resolution (3)RESOLUTION NO. 90 -107
A RESOLUTION AUTHORIZING A NEGOTIATED SETTLEMENT
WITH BLOUNT DEVELOPMENT CORP. AND RED LION HOTELS AND INNS
REGARDING ALLEGED WATER DAMAGE
WHEREAS, by letter dated May 3, 1989, Blount Development Corporation, on
behalf of Golf Course Drive Associates, formally petitioned the City of Rohnert
Park for reimbursement of expenses incurred by Golf Course Drive Associates in
the investigation and correction of damage to the pool deck, hotel foundation,
and tennis courts at the Red Lion Inn in Rohnert Park; and
WHEREAS, it was alleged that the damage was caused by water that entered
the hotel property from the golf course irrigation system through irrigation
lines running on the hotel property which Golf Course Drive Associates alleges
were there without their knowledge or permission or any easement or right of way
being granted for them; and
WHEREAS, Blount and Red Lion indicate that $78,000 of expenses have been
incurred in the investigation and correction of the damage; and
WHEREAS, it was alleged that the damage was caused by water that came from
leaking irrigation pipes extended from the land sold by the City to Golf Course
Drive Associates in connection with the development of the Red Lion Hotel; and
WHEREAS, negotiations and discussions concerning the matter have been going
on between City representatives and representatives of Red Lion Hotels & Inns
and Blount Development Corporation since early 1989; and
WHEREAS, in order to resolve the matter in an amicable manner, the City has
agreed to split the cost of the damages subject to the City and American Golf
Corporation being held harmless from any additional claims or liability related
to the development of the Red Lion Hotel.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rohnert Park
that in consideration of settling the dispute between Golf Course Drive
Associates, Blount Development Corporation, and the Red Lion Hotel & Inns on the
one hand, and the City of Rohnert Park on the other, that a settlement payment
in the amount of $39,000 be, and the same is hereby authorized.
BE IT FURTHER RESOLVED that the City Attorney and City Manager are
authorized and directed to implement this resolution and make payment as and
when satisfactory releases absolving the City and American Golf Corporation from
any further liability is received in a form satisfactory to the City Attorney.
DULY AND REGULARLY ADOPTED this 22nd day of May, 1990.
ATTEST:
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CITY OF ROHNERT PARK
Mayor
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