Capitola sued over 2011 flooding damages: One homeowner seeks $132,000 for repairs and lost use of beach rental [Santa Cruz Sentinel, Calif.]

Feb. 21--CAPITOLA -- First came the flooding, now comes a flood of lawsuits.

The city of Capitola is defending itself in four lawsuits stemming from the flooding of Capitola Village on March 24. Plaintiffs have sued the county of Santa Cruz and the Santa Cruz County Flood Control and Sanitation District in three of those cases.

"Likely there will be other cases filed," said Dean Alper, a Greenbrae attorney representing Truck Insurance, which sued in January, and Foremost Insurance and Truck Insurance, which sued in February.

All of the lawsuits allege the flooding was due to city negligence in underground pipe maintenance that led to pipe blockage or failure.

In June, engineering firm URS Corp. of San Francisco, hired by the city, identified the "probable cause" of the storm system malfunction as the failure at the junction of a concrete culvert under Bay Avenue and a corrugated steel pipe under the city-owned Pacific Cove Mobile Home Park.

Once the pipe ruptured, water eroded the soil around the pipe creating a sinkhole directly under a mobile home. That sent torrents of water down Capitola Avenue and into the village. Cleanup was extensive, and village businesses were closed for a week or more.

However, the report left open the question of who or what entity is ultimately responsible.

Capitola renter Katie Saldana filed the first lawsuit in October.

In her lawsuit, filed by Capitola attorney John Hannon, she claims her rental was flooded and her personal property damaged. In moving this property back to her residence after it was moved to avoid further damage, she injured her shoulder, which necessitated surgery, and resulted in her losing time from work, according to the lawsuit. She is seeking an unspecified amount for damages to her property and for her injuries and loss of time from work.

Kevin Calvert, a dentist in San Jose, and his wife, Pamela, sued in December. They own a house on Lawn Way in Capitola Village "steps from the beach," according to a rental posting for summer vacationers.

Their attorney, Daniel Ballesteros of San Jose, contends they suffered damages of at least $132,000 "and likely more" because of damage to the foundation. The lawsuit says the repairs to the foundation and internal and external water damage will cost at least $73,000, with the lost use of the property and "lost profits," of at least $58,000.

The city of Capitola has rejected claims submitted by Saldana and Calvert, and the city's insurer, Lexington Insurance, has rejected its claims. In addition, the Federal Emergency Management Agency denied Capitola disaster relief.

According to Mayor Michael Termini, people who incurred damages and had claims paid by insurance companies are "coming after" the city for money and those without insurance or who had claims rejected are "coming after us directly."

He explained that Capitola submits claims of less than $500,000 to a self-insurance group of municipalities, sending claims over that amount to Lexington Insurance.

"Until now, our claims were small," Termini said. "This is the first time we've ever had to reach out to Lexington."

Last month in an attempt to persuade Lexington to reconsider, the City Council hired an outside legal firm for $20,000, which Termini considered a small investment compared to the city's flood-related expenditures, about $1.6 million to $1.8 million.

"We believe that amount should bring closure," Termini said.

The Santa Cruz County Board of Supervisors rejected a claim by Lexington Insurance in October and referred it to the county counsel's office.

"The county and the (sanitation) district are unaware of any connection or involvement that they have with the flooding," said attorney Jason Heath of the county counsel's office.

The engineering consultant made these findings:

-- "Debris in the water flow may have caught the edge of the [corrugated metal pipe] at the junction, causing the [corrugated metal pipe] to fold, thereby significantly impeding the flow of stormwater through the stormdrain system."

-- Corrosion inside the pipe "may have contributed to the collapse of the pipe but likely only after the [corrugated metal pipe] had become disconnected from the culvert.

-- "The age of the culvert, installed in 1963, may have contributed to the culvert's inability to resist the pressures from the high flow."

Follow Sentinel reporter Jondi Gumz on Twitter @jondigumz

Katie Saldana complaint for damages v. city of Capitola -

Noble Creek Storm Drain Culvert Failure Report -

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