The city of Glendale is still dealing with the damage and the cost of damage the severe rainstorms caused during the winter of 2004 – 2005.
Contrary to what people believe it does rain in sunny California and Los Angeles felt in January 2005. The rain came pouring down and the mud came sliding down. Rainfall drenched Los Angeles and this caused mudslides and power outages in Glendale. The property damages were around $27 million.
The homes affected from the mudslides were damaged from the mud flowing from a city-owned fire access road. According to the original complaint filed in Los Angeles County Superior Court, the mudslides destroyed the drainage devices and irrigation systems, further destabilizing the slope.
The repair for the hillsides was roughly $400,000 and the city agreed to pay in an October 2007 partial settlement according to Christina Sansone, general counsel for the Public Works Department. “We are pleased to have reached a settlement in this case,” she said.
There was a consulting firm that was hired that did the original engineering work in the hillsides and the city contends that the firm should also be held partially liable.
There were several homes severely damaged and residents were forced to evacuate. Nine residents filed lawsuits against the city. The plaintiffs alleged that the construction of the storm gutters were poorly done and were inadequate in handling the rain which lead to the damage.
There were nine settlements and payouts of more than $12 million to homeowners. The city in turn filed a lawsuit against American International Group (AIG). The lawsuit was intended to help the city recover some or all the money it had to pay to Glendale homeowners. The city is claiming that AIG failed to cover and adequately investigate the claims.
As a result of the $12 million settlement to homeowners the city acquired five hillside properties. Officials planned to sell the properties through public auction to help with the city’s liability insurance fund.
According to the Glendale News-Press, the city was able to auction off one of the properties last year for $464,000. The property is a 2,069 square foot single family home with 3 bedrooms and 3 bathrooms. The total land area is approximately 9,260 square feet. The property was sold “as-is” and the minimum initial base asking bid amount was set at $200,000. Bidders were required to put a deposit of 10% of the minimum bid price.
City officials attempted to sell two more properties and were unsuccessful. One of the properties was set at a minimum bid price of $300,000 and the other at $400,000 with the same 10% deposit. The homes continue to be classified as damaged properties because their damaged slope has not been repaired thus remain yellow-tagged.
“We have had no bidder on this property at all,” Christina Sansone, general counsel for the Public Works Department said last week. “We have advertised on the Web. We have put out public notices.”
Officials say they are reevaluating their options. If you want my opinion, the city should drop the sale price if they want to unload these properties. That is a hefty price tag to pay for a property that comes with substantial risk and the additional costs of major repairs.
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