Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R27, a Resolution Authorizing the Settlement of a Claim Against the City
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Submitted By: Ella Gilbert, Director, Risk Management
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): The claim at issue arises from a sewage pump failure near claimant Lindsay Johnson’s home on April 9, 2024, resulting in substantial damage to the claimant’s person and/or property (“Incident”). Following extensive settlement discussions, a proposed settlement is before the Council for approval.
Presentation Information: Staff and Outside Counsel, Garry Dundas, Esq., are available for any questions.
Staff Recommendation: Move that the Council approve the Resolution authorizing the City to settle the claim.
Alternate Recommendations:
1. Move that the Council does not accept the Resolution authorizing the City to settle the claim.
Background: The Incident resulted in substantial damage to the claimant’s person and/or property. After evaluation of the submitted claim, the City accepted liability based upon the unique facts and circumstances. This negotiated settlement is before the Council for approval.
Issues/Analysis: The total negotiated settlement of $195,592.32 is made up of three parts - payment to the claimant for damages incurred ($162,522.73), payment to claimant’s insurance carrier to settle their demand for subrogation ($26,180.39), and payment to contractor for partial mitigation work performed at claimant’s home ($6,889.20).
Financial Information: Per the Utility Systems Department, Funds for payment of the settlement are available and will be drawn from 431-3516-534000.
Special Consideration: Garry Dundas, Esq. was assigned as outside counsel for this claim and, alongside the City’s third-party administrator, represented the City in negotiations. It is the recommendation of the City’s third-party administrator and Mr. Dundas that this settlement is in the best interests of the City.
Location of Project: N/A
Business Impact Statement: N/A
Attachments:
1. Resolution Authorizing the Settlement of a Claim Against the City
2. General Release
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: Legal Intake 25101-07
Legal Sufficiency Review:
Reviewed by Richard Berrios, City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.