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 ad...
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