Sparks City Council Meeting 7/27/2015 2:00:00 PM

    Monday, July 27, 2015 2:00 PM
    City Council Chambers, Legislative Bldg, 745 Fourth St., Sparks

General Business: 9.2

Title: Consideration and possible approval of SIR payment to Traveler’s Insurance in connection with claim made by Darcie Latham.
Petitioner/Presenter: Doug Thornley/Doug Thornley
Recommendation: That the City Council authorize the payment in the amount of $300,000.00 to Traveler’s Insurance to proceed with defense of litigation.
Financial Impact: An expenditure of $300,000.00 will be necessary if the City Council approves the settlement.
Total Costs: $300,000.00
Fund: Municipal Self-Insurance    Account: 603260
Program: Police in Muni Ins Fund (050522)
Amount: $300,000.00    Budget Status: Budget Exists
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

Possible approval of SIR payment to Traveler’s Insurance.



Background:

On October 13, 2013, the Sparks Police Department responded to a suicidal subject call. The suicidal subject had a gun and was threatening to kill herself in front of her adult daughters. When our police officers arrived, the subject was outside waving the gun in the air and screaming to stay back. The subject became very agitated when she saw our police officers on scene, so our officers withdrew to a safe distance. The suicidal subject pointed her gun at police officers who felt they could not safely defend themselves and protect other citizens who were on scene. The Sergeant on scene ordered other officers, staged at a distance, to take the shot.

A daughter of the suicidal subject was injured on the scene and, through her attorney, has demanded TWO MILLION TWENTY THOUSAND EIGHT HUNDRED FIFTY FOUR DOLLARS AND 11/100 ($2,020,854.11).

Because of the large sum of money, the City Attorney, in concert with the City Manager, has made Traveler’s Insurance aware of the City’s intent to make a claim against the City’s Self-Insurance Policy. The City has been asked to pay Traveler’s SIR (Self-Insured Retention) amount of $300,000.00 – once paid, Traveler’s will take over defense of the matter along with all attendant costs.



Analysis:

Alternatives:

The City Council could deny the transfer of funds based upon information it receives from the City Attorney during the attorney client session. Should the Council elect this alternative, the City will be solely responsible for all costs associated with this claim.



Recommended Motion:

Approval of Settlement:

If the City Council decides to approve the transfer of funds, the motion should state:

Based upon the advice provided by the city’s attorney, I move to approve the transfer of funds to Traveler’s Insurance in the amount of $300,000.00

Rejection of Settlement:

Alternatively, the City Council can deny the proposed transfer of funds to Traveler’s Insurance.  If the City Council decides to deny it, the motion should state:

I move to deny the transfer of funds to Traveler’s Insurance.



Attached Files:
     Travelers Letter - ROR--Latham EUW8292 ( LELT1040209 SIR end).pdf
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