2017 2:00:00 PM

Monday, November 13, 2017 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.5

Title: Consideration, discussion, and possible decision regarding a Settlement Offer of $42,000 for a Personal Injury Claim.

Petitioner/Presenter: Alyson McCormick, Assistant City Attorney/Alyson McCormick, Assistant City Attorney

Recommendation: That City Council reject the settlement offer made by Rene House.

Financial Impact: An expenditure of $42,000.00 will be necessary if the City Council approves the settlement offer. (603260 050515 050522-101)

Total Costs: $42,000.00

Fund: Municipal Self-Insurance Account: 603260
Program: Admin/Premium (Non Claim) Transactions in Muni Ins Fund (050515)
Amount: $42,000.00 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:

This agenda item asks the City Council to consider and decide whether to accept or reject the terms of a demand letter relating to a personal injury claim against the City.

Background:

In November 2016, Rene House was involved in a motor vehicle collision with a City of Sparks vehicle driven by a City of Sparks employee. Through the Risk Management Committee, the city settled Ms. House’s insurer’s claim for property damage in the amount of $18,602.19 in May 2017. The property damage settlement did not include damages for personal injury, the extent of which was not yet known at the time.

As of October 17, 2017, Ms. House had incurred medical costs in the amount of $10,363.26, which she alleges were necessary due to the collision. Through counsel, Ms. House sent a demand letter to the City of Sparks, seeking to settle Ms. House’s personal injury claim “for $42,000 or policy limits, whichever is less.”

Analysis:

The City Attorney recommends rejecting Ms. House’s settlement offer of $42,000.00 and pursuing further negotiations.

Alternatives:

The City Council could accept Ms. House’s settlement offer.

Recommended Motion:

Rejection of Demand:
Based on the advice of the City Attorney’s Office, I move to reject Rene House’s demand of $42,000.00 as consideration for settling all of Ms. House’s claims against the City.

Acceptance of Demand:
Alternatively, the City Council could decide to accept Ms. House’s demand. If the City Council decides to accept the settlement offer, the motion should state:

I move to accept Rene House’s demand of $42,000.00 as consideration for settling all of Ms. House’s claims against the City.

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