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<br />6.58 <br />Page 1 <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />December 7, 2009 <br /> <br />SUBJECT <br />Claim from John W. Busby II, attorney for Viking Drillers, Inc. <br /> <br />RECOMMENDATION <br />Reject subject claim by operation of law. <br /> <br />BACKGROUND <br />This claim is being brought to the Council because if this claim results in a monetary <br />settlement, the settlement could exceed $15,000. According to resolution no. 14595, if an <br />amount to be paid for a general liability claim exceeds $15,000, any denial, allowance, <br />allowance in part, settlement, or compromise must be approved by Council. <br /> <br />Viking Drillers is seeking indemnity from the City and Redevelopment Agency in connection <br />with lawsuit filed by Mr. Robert Bryant which alleges loss of profits as a result of the <br />construction activity related to the downtown cinema project. <br /> <br />It has been recommended by the City's outside defense counsel, Joe Howard, that this <br />claim be denied. <br /> <br />ALTERNATIVES <br />If this claim is not rejected by operation of law, the statute of limitations for the claimant to <br />file a court action on the claim is extended from six months to two years. thereby placing <br />the City in a more vulnerable position in defending this matter. <br /> <br />FISCAL IMPACT <br />The rejection of this claim by operation of law has no direct fiscal impact. However, should <br />the claimant elect to affect litigation to this incident, we have no basis with which to <br />estimate the legal expenses or a settlement, should such estimates ultimately be required. <br /> <br />pilL- <br /> <br />Brian Ponty <br />Director of Finance and Financial Planning <br /> <br />~' <br />~ <br /> <br />Peter Ingram <br />City Manager <br /> <br />ATTACHMENTS <br />NONE <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />1. Viking Drillers Claim submitted November 19, 2009 <br />