Posted by Frank McClain, a resident of the Larkspur neighborhood, on Oct 31, 2009 at 5:41 pm

In 1997, the City of Larkspur commissioned an engineering report “for the rehabilitation of the failing retaining wall at the corner of Myrtle and Hawthorne Avenues in Larkspur”, CA. What was a $135,000 to $155,000 retaining wall replacement project in 2002 ended up costing the taxpayers and insurance company over $1.1 million.

Eight years later, Hamid Shamsapour, Director of Public Works, recommended in 2005, that the City "do nothing". Four months later, a landslide occurred in 2006 that broke a gas line on two occasions, continuously pulled open a sewer line, and required the upslope neighbors to install 10 drilled concrete piers to protect and support the adjoining building and land. The City then refused to take responsibility for any damages, and lawsuits to recover those damages were filed against the City.

In 2005 Council member Joan Lundstrom noted the existing walls were obviously rotted, and still voted to accept Director of Public Works, Hamid Shamsapours’ staff report recommendation to “do nothing”. One of the defining moments of this situation was Dan Hillmer's comment in 2004,"I think we should cut our losses and go to court." By taking these actions, the City Council refused to take responsibility for infrastructure taken, according to law, into the City Street System by a resolution of the Larkspur City Council in 1963.

In June 2006, the City applied for FEMA disaster funding, claiming "legal responsibility" for the retaining walls (Federal statutes require an applicant for public grant money to be "legally responsible" for the property or structure for which they are seeking funds).

In August 2006, the City initiated litigation against the adjoining property owner for damages to the City caused by the failure of the same walls for which the City was simultaneously claiming "legal responsibility".

City Manager Jean Bonander was then at the center of City efforts to claim California State Office of Emergency Services and FEMA grants while countersuing the adjoining property owner for the apparent purpose of possibly obtaining homeowner's insurance funds from the property owner's insurance company. The City was expending taxpayer dollars for the Department of Public Works to claim responsibility for the walls to pursue obtaining FEMA grant money while simultaneously expending taxpayer dollars to pay City Attorney Meyers Nave to deny City responsibility for the same retaining walls. The City Council continued this lawsuit for almost two years, using the virtually unlimited City funds to litigate against one of its own constituents.

The financial result of these actions were:

From 1997 through 2003 the City spent over $60,000. in staff time, attorneys fees and engineering consultant fees to determine responsibility for the retaining walls and to design repair and replacement plans.

In 2007-2009, he City received a $50,000. "management fee" to administer the construction of the $440,000. replacement retaining wall that was paid for by all US taxpayers from FEMA funds.

In 2009, Meyers Nave, according to their accounting, received over $222,000 in fees and costs which they represent as "Actual cost to City $00.00" because this expense was paid for by the Bay Cities Joint Powers Insurance Authority. The taxpayers fund the BCJPIA.

The City paid the adjoining property owners over $245,000. to settle claims for attorney's fees and damages. The homeowner's insurance company, expended over $69,450. for attorney's fees and paid the City an additional $17,500 to drop the countersuit.

Total costs to the taxpayers and the taxpayers' insurance company:

FEMA $490,000.

Meyers Nave 226,000.

Insurance Attny 69,450.

Insurance Settlement 17,500.

Damages Paid Out/ City 245,500.

City Staff Time/Plans (est.) 60,000.

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Total $1,108,450.

Frank McClain

Larkspur, CA