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<br />I <br /> <br />REPORT <br /> <br />6.4B <br />Page 1 <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />July 12, 2010 <br /> <br />SUBJECT <br />Claim from Safeco I nsurance on behalf of Ronald Mason <br /> <br />RECOMMENDATION <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 />Safe co Insurance has placed a subrogation claim on the City requesting reimbursement for <br />damages to Ronald Mason's property which occurred when it was hit by a fallen oak tree. <br /> <br />It has been recommended by the City's Liability Adjuster, Rosemary Oberhelman, that this <br />claim be denied. <br /> <br />AL TERNA TIVES <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 />~~ <br />.,.....- --==- ------ <br />~ Brian Panty <br />Director of Finance <br /> <br />Peter Ingra~ <br />City Manager ~ <br /> <br />--/ <br /> <br />ATTACHMENTS <br />None <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />1. Claim 2694 <br />