A Santa Clara business owner faced significant losses due to two city construction projects. This incident not only affected his business but also raised important questions about the city's responsibility towards contractors. Let's delve into the details.

Initial Claims and Settlements

After two city projects disrupted his operations last year, the owner of OG Performance and Tuning at 940 Shulman Ave. suffered a loss of $18,600 in business. In August, the city cut him a $4,450 check for his initial claim related to utility-pole work by Silicon Valley Power (SVP). Then, last month, the city contractor handling water main upgrades settled his other claim, although the details remained undisclosed. With this money, the owner can now pay his credit card and invest in more equipment for his shop.

The Water Shut-Off Incident

The water shut-off was a major setback for the business owner. He relies on water to operate a dynamometer, which determines the torque and power of engines. In an email exchange, the city's spokesperson, Janine De la Vega, stated that the power-shut-off situation was a pending legal matter at the time of initial inquiry. However, she also emphasized that the city never denied the owner's claim. Once the claimant provided evidence to support the claim amount, it was promptly settled, and the city is pleased with the resolution.A third-party assessor, Donald Chang from Carl Warren & Company, handled the owner's claim. Although he claimed to be a third-party, Chang wrote in an email to the owner that the city had its own legal battles to attend to. He suggested that the owner might have a case against the contractor and informed him about the option of receiving an award of up to $12,500 in Small Claims Court with a filing fee of $250 if he needed to hire a process server.

The Water Main Work and Permits

For the water main work, the city issued an encroachment permit to Preston Pipelines, a private contractor. The city's water department shuts off water for system upgrades, as explained by De la Vega. This is to prevent a pressurized water main from spewing water everywhere in case of a line breach. The encroachment permit requires contractors to notify businesses of water cut-offs, and Preston Pipelines fulfilled this requirement, contrary to the owner's claim.However, Santa Clara has previously acknowledged the need for improvement in the notification process for SVP. There is a disparity between the claims of the owner and his neighbors that they were not notified of the water shut-off and the water department's determination that they were. The Water Utility reviews all shutdown requests and only approves those necessary for water distribution system upgrades.Upon review, the water department shut off water service to the area on behalf of Preston Pipelines. De la Vega stated that the Preston Pipelines project was different from the SVP work and did not involve city employees or departments. But the owner tells a different story, claiming that a water utility employee gave him his card and offered to bring a water tank, although it came too late.Although the matter has been settled to the owner's satisfaction, questions remain about the relationship between the city and contractors and where the responsibility lies. It is clear that such incidents have a significant impact on businesses and highlight the need for better coordination and communication between the city and contractors.