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Friday, March 31, 2006

Water-logged residents may soon see relief



Cathleen Allison/Nevada Appeal After years of legal struggles, homeowner Jan-Marie Brown is still working to ensure water damage to homes in her Mountain Park subdivision, including her own, finally receive proper resolution. Brown's cat Glory B keeps an eye on her work Thursday afternoon.
Cathleen Allison/Nevada Appeal After years of legal struggles, homeowner Jan-Marie Brown is still working to ensure water damage to homes in her Mountain Park subdivision, including her own, finally receive proper resolution. Brown's cat Glory B keeps an eye on her work Thursday afternoon.ENLARGE
Cathleen Allison/Nevada Appeal After years of legal struggles, homeowner Jan-Marie Brown is still working to ensure water damage to homes in her Mountain Park subdivision, including her own, finally receive proper resolution. Brown's cat Glory B keeps an eye on her work Thursday afternoon.
People living in the Northridge area neighborhood, sometimes referred to as "the swamp," may be a step closer to obtaining a solution to their long-standing drainage problems.

News there might be a solution that could satisfy most of the 370 homeowners gave Jan-Marie Brown a case of "borderline shock," she said.

Brown, who has lived in the Mountain Park housing development for 11 years, is one of eight resident-representatives in a case that has dragged on for so long that many people living there feel like they've been abandoned, she said.

Brown has several inches of water pooled in the crawl space of her home. The amount varies depending on weather conditions. And this winter has brought quite a bit of water into the crawl space, she said.

Though Brown often has felt discouraged as time has elapsed, she said she is proud of her part in trying to work "for the best result for the neighborhood."

"It has taken much too long," said Robert Maddox, the homeowners' attorney. "We need to get this finally worked out."

Built between 1992 and 1998, in an area that was partly wetland and at low-elevation, the homes have sustained damage over the years because of water accumulating in the crawl spaces. The number of problems homeowners have discovered has only increased since legal action began in late 1999.

The homeowners are scheduled to be in court today. Defendants in the case include Carson City, the developer - Stanton Park Development Co., Millard Realty and Construction Co., and Garretson-Furgerson Construction Co. The city's role as a defendant was in its allowing the houses to be built in the first place.

The city last fall threatened to halt a final decision on how to spend the funds, but now expects to let the process begin after meeting with Maddox, homeowners and the contractor for the drainage fix, Maddox said.

A legal odyssey

The class action suit initially was settled in early 2003 for $14.5 million, but the manner in which a significant portion of the money should be handled has been debated ever since.

Costs for engineers, architects, contractors, other experts and the legal workers reduced the settlement to more than $8 million. The representatives set aside about $4.2 million, which provided a "very substantial cushion" when the projected cost in early 2003 for the drainage fixes, re-leveling of two homes and concrete repairs was $2.7 million. Another $150,000 more had been set aside for mold remediation, according to a letter written in June by Maddox to homeowners.

An initial distribution of money then provided about $10,000 to all of the homeowners who made a personal injury claim.

During summer 2003, a design for the drainage fixes was presented to Carson City, which rejected it. A special court master was assigned to the case to help all of the parties reach a design consensus, said the letter.

As the search for a solution crawled forward, the cost for constructing drainage fixes rose. One estimate to do the work reached $6 million. Fast-rising construction costs also added to overall costs, said Maddox and Brown.

Some more redesigning brought in an eventual estimate of $4.7 million - still $500,000 more than was budgeted.

Another solution proposed, but later dropped, was to create a special assessment district. Not all of the homeowners were amenable to it, according to court documents.

Then Enterprise Landscaping Services of Carson City, offered to do the work for about $3.7 million. According to a report dated March 1 that described how the settlement money has been - and likely will be - distributed, another $521,000 will be used to pay for mold remediation in 71 homes so far identified; the re-leveling of two homes that were weakened by the water; and concrete flat work on 86 homes.

Homeowners can either have the work done or take a cash settlement and pay someone else to do the work for them.

"There are people who desperately need help," Maddox said. "Now, I think we're going to be able to do that."



• Contact reporter Terri Harber at tharber @nevadaappeal.com or 882-2111, ext. 215.



The proposed fix

There are two types of solutions being offered to homeowners. Which one each receives depends on the severity of their drainage problems. Both solutions involve use of a French drain - a ditch filled with gravel, rock or perforated pipe that redirects water away from building foundations.

• In roughly 120 dwellings, where standing water has been a repeated occurrence, the French drain would be directed around the entire crawl space of a home and any water it captures would be sent to a sump pump. Next, an evaporator pit and energy dissipater would slowly reduce the volume of water before sending it out to city gutters. Heavy amounts of water moving through the gutters were a concern of city officials because of the potential for drawing mosquitoes and moths during certain parts of the year. Cost would be roughly $14,000 per home.

• In another 250 dwellings, where water accumulation hasn't been as severe, a shorter French drain would go across the crawl space and receive water from bays created by the grade beams. A sump pump would send the water to an evaporator-dissipater for eventual flow into gutters. Cost would be about $7,700 per home.

Homeowners who don't want to use the contractor's solution can obtain a cash settlement of roughly $7,700.

If any money is left over, it also will be distributed.

The matter is scheduled to be addressed in Carson City District Court at 3 p.m. today.

- Sources: Attorney Robert Maddox, Carson City, court papers


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