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Home My WebLink About05/16/2017 06H Settlement Agreement with Dayle and Pauletta ChampBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.H. For Meeting of: May 16, 2017 ITEM TITLE: Resolution authorizing a settlement agreement to resolve and settle the damage claim brought by Dayle and Pauletta Champ SUBMITTED BY: Helen A. Harvey, Senior Assistant City Attorney SUMMARY EXPLANATION: This matter is on for consideration of a Resolution authorizing the City Manager to consent to a settlement entered into by the City of Yakima to resolve and settle the damage claim filed by Dayle and Pauletta Champ on January 23, 2017. In their damage claim, the claimants alleged damages from a sewer backup that occurred on January 22, 2017 at their residence located in the 4700 block of Englewood Avenue. The claim against the City of Yakima has been settled for $64,136.98, subject to the presentation of the settlement before the Yakima City Council for its consideration. A copy of the Release and Settlement Agreement is attached. Previous payments have been made on this claim in the amount of $39,757.55. The Resolution authorizes the City Manager to consent to an additional payment to claimants in the amount of $24,379.43, for a total settlement amount of $64,136.98, which includes the previous payments of $39,757.55. Because the settlement is within the City's deductible of $100,000 with CIAW, the settlement amount is to be paid by the City through reimbursement to CIAW. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR ,■. SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date resolution 5/912017 Release and Settlement Agreement 5/8/2017 Type Co%er Memo RESOLUTION NO. R -2017- A RESOLUTION authorizing a settlement entered into by the City of Yakima to resolve and settle the damage claim brought by Dayle and Pauletta Champ. WHEREAS, on January 23, 2017, a damage claim was filed with the City Clerk's Office by claimants Dayle and Pauletta Champ relating to a sewer backup that occurred on January 22, 2017, at their residence located in the 4700 block of Englewood Avenue, Yakima, Washington 98908; and WHEREAS, the City of Yakima is a member of the Cities Insurance Association of Washington ("CIAW') for most claims, including this claim, and the City has a $100,000 deductible on CIAW claims; and WHEREAS, a settlement has been reached with the claimants to resolve and conclude all claims in the matter; and WHEREAS, final payment on this claim will be made by CIAW on behalf of the City in the amount of $24,379.43 to the claimants Dayle and Pauletta Champ for payment of the balance owed to Nathan Towell Construction for repairs and for personal property damages and additional expenses; and WHEREAS, the total amount, including prior payments, paid pursuant to the settlement will be $64,136.98, and the City will pay the settlement through reimbursement to CIAW because it is within the City's $100,000 deductible; and WHEREAS, the City Council of the City of Yakima deems it to be in the interest of the City to authorize the City Manager to consent to a settlement entered into by the City of Yakima and the claimants to resolve and conclude the damage claim; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is authorized to consent to the settlement entered into with the claimants in the Release and Settlement Agreement to resolve and settle the damage claim brought by Dayle and Pauletta Champ. ADOPTED BY THE CITY COUNCIL this 16th day of May, 2017. ATTEST: Sonya Claar Tee, City Clerk Kathy Coffey, Mayor 4 t t 1101-0191a, THIS RELEASE AND AGREEMENT 1 is made and entered into by and between DAYLE and t t CHAMP referred to as "Claimants"'), and the CITY OF YAKIMA (hereafter referred to as "City")- WHEREAS, Damages againstcalled the "Claim") with and that Claimants sustained damages as a result of a sewer backup that occurred on January 22, 2017, at the Claimants' residence that they own which is located at 4710 Englewood Avenue, Yakima, Washington (hereafter the ""Incident"). WHEREAS, Claimants and the City wish to settle and compromise the Claim. NOW, THEREFORE, in consideration of the matters set forth in the foregoing recitals MI agreeand Claimants consideration1. Settlement P!jyments of the g#3L. In delivery of the Release and Settlement Agreement, r Washington ("'CIAW") on behalf of the City delivers to the Claimants a final settlement check in the sum of Twenty -Four e Dolwork in their basement by Nathan Towell Construction, for contents damage and for additional expenses incurred by claimants. In addition to this final payment, the following payments previously have been made: on February lars onbehalf of the City delivered a j check }to the Claimants which was the requiredamountof %of the total reconstruction cost for Nathan Towell Construction to begin work on the claimants' e CIAW on behalf of the Citdelivered of Twenty -Two Thousand Three Hundred Twenty -Five and 32/100 Dollars ($22,325.32) to Rainbow International ofYakima for mitigation servicesand content cleaning work; and on April 10, 2017, CIAW on behalf of the City delivered a check in the sum of Two Thousand Four Hundred Thirty -Two and 23/100 Dollars ($2,432.23) to the Claimants for replacement of their washer, dryer and refrigerator. These prior payments totaled $39,757.55. priorsettement $39,757.55, which result in a total settlement amount of Sixty -Four Thousand One Hundred Thirty -Six and 98/100 Dollars ($64,136.98) are the consideration for the claimants' execution and delivery of this Release and Settlement Agreement. 2. No Further Prosecution of the Claim._ In consideration of the payment b the City of said Twenty -Four Thousand Three Hundred Seventy -Nine and 43/100 Dollars ($24,379.43) in a final settlement check, and the total settlement amount of ity- LEASE AND SETTLEMENT AGREEMENT Pagel of 5 • 3. Release of the Cfty by the Claimants. In consideration of the payment by the City of said Twenty -Four Thousand Three Hundred Seventy -Nine and 43/100 Dollars ($24,379.43) in a final settlement check, and the total settlement amount of Sixty - Four Thousand One Hundred Thirty -Six and 98/100 Dollars ($64,136.98).. Claimants, representatives of Claimants' estates, Claimants' beneficiaries, heirs, children, grandchildren, successors and assigns do hereby irrevocably and forever release, acquit and discharge the City and the City's elected officials, officers, directors, agents, attorneys, employees, insurers, CIAW, successors and assigns, of and from and all liabilities, claims, cross claims, counterclaims, actions, suits, damages, penalties, costs, losses, expenses, interest, court costs, and attorney fees of any kind and nature wh never, known or unknown, arising out of, relatin- to., or resulting from the Incident, and for or relating to any claim related to any future sewage backup incident', if any at Claimants' property where a functioning backflow valve at the Claimants' property would prevent the Incident. 4. Claimants Shall Install a Backflow Valve. In consideration of the payme by the City of said Twenty -Four Thousand Three Hundred Seventy -Nine and 43/1 Dollars ($24,379.43) in a final settlement check, and the total settlement amount of Sixt Four Thousand One Hundred Thirty -Six and 98/100 Dollars ($64,136.98), and in order prevent future sewer backups at Claimants" property, Claimants agree, represent a t warrant to install, at Claimants' expense, a properly functioning backflow valve at t property located at 4710 Englewood Avenue, Yakima, Washington. With regard to sai installation, Claimants also agree to, represent and warrant that Claimants shall obta the necessary City permit(s) to install said backflow valve and that said backflow val a M icival Code and all other ---,Iica �1) b rules, regulations and laws,. and complete the installation within six months of the dal Page 2 of 5 �V of settlement. Once said backflow valve is installed, Claimants will have it inspected by a representative of the Codes Division of the City. KVMBUFPM matters now unknown, unanticipated or misunderstood by them in connection with Claimants" alleged damages from the Incident may have given or hereafter give rise to causes of action, claims, losses and expenses which are presently unknown, unanticipated or unsuspected, or misunderstood, and further agree, represent and warrant that the releases in this -R -We- Aggree-.-.-.e��t hcwe b2 -en neRtg�iated and agreed to in light of the realization that Claimants nevertheless intend to release, discharge and acquit the City from any such controversies, damages, costs, losses and expenses which in any way are related to the Incident. Uri demands, taxes, claims, cross claims, counterclaims, actions, suits, damages, penalties, costs, losses, expenses, interest, court costs, and attorneys fees of any kind or nature what%w-v-er, kx-rLw-D-4r unkneiAr:i�-2risixg out of, or resulting fro.-.�n flke,1Acident, i;wludinx but not limited to subrogation claim(s) of any third party arising from the described Incident. -7. No Admission of Liabilfty. It is understood and agreed that this Agreement is the compromise of a disputed claim, and that the payment made herein is not to be construed as an admission of liability on the part of the City and the parties hereby released, and that said releasees deny liability therefor. This Agreement is not intended to be admissible against any party as an admission of liability and/or fault, including but not limited to claims or lawsuits by other claimants relating to sewage backup claims. Notwithstanding the immediately preceding sentence, this Agreement, if othArw�o-aa4wui"-�&6, mi��= 2t :-xvxy prwcevw6ft, beiii"ee-i-rm among the parties to enforce its terms. 8. Severability. If any provision of the Agreement is prohibited by law or I Page 3 of 5 7 jurisdiction, such provision shall not affect the validity of the remaining provisions of this Release and Settlement Agreement. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. I I v RM IN WITNESS WHEREOF, this Agreement has been signed by Claimants. DATED this —�- day of May, 2017. By: DAYLE'tHAMP By: / PAUL TA CHAMP STATE OF WASHINGTON )ss. COUNTY OF YAKIMA On this day personally appeared before me, to me known to be Dayle Champ, the individual described herein and who executed the foregoing instrument, having each acknowledged to me that the same was signed by him as a free and voluntary act and deed for the uses and purposes therein mentioned. WITNESS my hand and official seal thisdayof May, 2017. 4 E NSCHUH A7MINTREKE 71 e: mistary paithe Signatur S S= stm Of Washington Print la ea ti 7MyARQ4ntMfft EWM Jun 13, 2020 NOTARY PUBLIC in and for the State of — — — — — — — — — — — - Wasl-tington residing at \Aalawa My Commission expires RELEASE AND SETTLEMENT AGREEMENT Page 4 of 5 STATE OF WASHINGTON COUNTYE YAKIMA ) kJIM s s r � WITNESS my hand and official seal this-1—day of May, 2017, Notary Public state of Washington My Appointment Expires Jun 13, 2020 r Page 5 of 5 M •e 8