November 2007: U.S. District Court Judge Vaughn Walker issues an inverse-condemnation judgment against Half Moon Bay in the amount of roughly $37 million plus $4 million more in attorneys' fees. Walker finds that, when the city did work on Beachwood, a 24-acre property owned by developer Charles "Chop" Keenan, it allowed water to pool, creating wetlands that made the site unfit for development.

April 2008: Half Moon Bay agrees to an $18 million legal settlement with Keenan and later takes ownership of the property.

April 2011: Its finances crippled by the Beachwood fiasco and the recession, the city votes to outsource police and recreation services to the San Mateo County Sheriff's Office and the city of San Carlos, respectively.

September 2012: Arbitrator Edward Panelli, a retired California Supreme Court justice, rules that Beachwood is covered by the city's liability policy with Insurance Company of the West and orders the company to pay the city $10 million.

Contact Aaron Kinney at 650-348-4357. Follow him at Twitter.com/kinneytimes.