TO: CITY COUNCIL

FROM: CITY MANAGER

DATE: MAY 16, 2006

SUBJECT: DEL CERRO FIRE SETTLEMENT AGREEMENT

RECOMMENDATION
Approve a settlement of $54,000 from the Southern California Edison Company for damages stemming from the Del Cerro fire which occurred on July 13, 2005 and authorize the Mayor and City Clerk to execute a Release on behalf of the City.

BACKGROUND
On July 14, 2005 the City of Rancho Palos Verdes experienced a brush fire in the canyons below Del Cerro Park and San Clemente Drive. The Fire Department ultimately determined that the cause of the fire originated with a Southern California Edison (SCE) work crew.

Although the nearby property owners were spared any significant structural damage, approximately 179 acres of brush and native vegetation were destroyed. Of the area that burned, approximately 17.5 acres were on land owned by the City (the remainder is primarily owned by York Long Point). The 17.5 acres of City-owned land are designated as a Nature Preserve and provide habitat for native species including the California Gnatcatcher. In addition, the city land denuded of vegetation has become of concern to the property owners living upslope due to the possibility of soil erosion and slope failure.

On October 24, 2005 the City filed a claim against SCE for $78,750, which we estimated as the cost of re-vegetating the burned area.

DISCUSSION
In response to our claim for re-vegetation of the burned area SCE originally offered a settlement of $30,600. The City countered with a figure of $54,000. SCE has agreed to the $54,000 amount.

Respectfully Submitted,

Les Evans
City Manager

Attachments: Release