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<br />6.3C <br />Page 1 <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />April 12, 2010 <br /> <br />SUBJECT <br />Claim from USAA Insurance as subrogee for Casey L. Merrill <br /> <br />RECOMMENDA liON <br />Reject subject claim. <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 />USAA Insurance as subrogee for Casey L. Merrill has place a claim against the City for <br />damages to their insured's 2006 Lexis which occurred when it was hit by a fallen tree at the <br />location of Jefferson Avenue and Oakridge Drive. <br /> <br />It has been recommended by the City's Liability Adjuster, Rosemary Oberhelman, that this <br />claim be denied. <br /> <br />ALTERNATIVES <br />If this claim is not rejected, the statute of limitations for the claimant to file a court action on <br />the claim is extended from six months to two years, thereby placing the City in a more <br />fiscally vulnerable position in defending this matter. <br /> <br />FISCAL IMPACT <br />The rejection of this claim has no direct fiscal impact. However, should the claimant elect <br />to affect litigation to this incident, we have no basis with which to estimate the legal <br />expenses or a settlement, should such estimates ultimately be required. <br /> <br />p'1/,- <br /> <br />Peter Ingram ~ ./ <br />City Manager <br /> <br />Brian Ponty <br />Director of Finance <br /> <br />A TT ACHMENlS <br />None <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />1. Claim 2679 <br />