Council Memo

Approval of the Proposed Settlement in Hidden Heights v. City of Prescott (Contract No. 2020-081).


Department:City AttorneySponsors:


  1. Printout
  2. Hidden Heights Settlement Agreement

Document Comments

Recommended Action: MOVE to approve settlement agreement with Hidden Heights, LLC. (Contract No. 2020-081).


Item Summary


This agreement was reached following mediation and would settle the Hidden Heights v. City of Prescott lawsuit (Contract No. 2020-081).



Hidden Heights, LLC sued the City of Prescott in 2016 alleging that the City breached a 1965 agreement for water service. Hidden Heights sought $3.5 million in damages from the City.  A mediation in this case was held on September 17, 2018.  At that mediation the parties agreed that an appropriate resolution would be for the City to provide water to the subject lands and that each side would pay their own attorney’s fees.  The City will provide nothing more than water service to settle this case.  Hidden Heights will also be required to connect to sewer when the property is developed and the development will pay all normal development and impact fees and out-of-city water rates.  The proposed development is approximately 37 units which would require a total of 6.3 acre feet of water annually.  The Council must approve the settlement agreement before it can be final and the case dismissed.



Meeting History

Oct 8, 2019 3:00 PM  City Council Voting Meeting
draft Draft

Interim City Attorney Matt Podracky provided a presentation to Council regarding the proposed Settlement Agreement. Hidden Heights owns 40 acres off Iron Springs Rd outside of city limits and sought damages regarding an alleged breach regarding water services. Settlement includes that water will be provided to the area, damages will not be paid, each side will assume its own attorney fees, Hidden Heights will be required to connect to city sewer at usual cost and it will allow for the development of approximately 37 units.

MOVER:Jim Lamerson, Councilman
SECONDER:Billie Orr, Mayor Pro Tem
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Jim Lamerson, Alexa Scholl, Steve Sischka