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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />April 23, 2018 <br />SUBJECT <br />Rejection of claim from Pizza Panda LLC <br /> <br />RECOMMENDATION <br />By motion, reject subject claim <br /> <br />BACKGROUND <br />Resolution Nos. 15081 and 15624 require City Council approval for the denial, <br />allowance, allowance in part, settlement, or compromise of a general liability claim if it <br />exceeds $50,000. The amount claimed by the claimant exceeds that limit and therefore <br />its denial must be approved by the City Council. <br /> <br />ANALYSIS <br />The claimant, through managing member Jenefer Cauraugh, is alleging loss of business <br />and use of property without due process. <br /> <br />ALTERNATIVES <br />If this claim is not rejected, the statute of limitations for the claimant to file a court action <br />on the claim is extended from six months to two years, thereby placing the City in a <br />more difficult position in defending this matter. <br /> <br />FISCAL IMPACT <br />The rejection of this claim has no direct fiscal impact. However, should the claimant <br />elect to initiate litigation regarding this incident, the City has no basis with which to <br />estimate the legal expenses or a settlement, should such estimates ultimately be <br />required. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or foreseeable physical <br />change in the environment. <br /> <br /> <br />KIMBRA MCCARTHY <br />ASSISTANT CITY MANAGER OF ADMINISTRATIVE SERVICES <br />6.5.B. - Page 1