HomeMy WebLinkAbout09/11/2018 06D Settlement of Damage Claim Brought by The State of Washington Department of Natural Resources1
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.D.
For Meeting of: September 11, 2018
ITEM TITLE: Resolution authorizing consent to a settlement entered into by
Cities Insurance Association of Washington and Munich
Reinsurance to resolve and settle the damage claim brought by the
State of Washington Department of Natural Resources
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 Cities Insurance Association of Washington ("CIAW") and Munich
Reinsurance to resolve and settle the damage claim filed on June 25, 2018 by the State of
Washington Department of Natural Resources ("DNR"). In its damage claim, the DNR alleged
damages for expenses in suppressing a fire that started on or about June 27, 2017, in the South
Wenas Road area, Selah, in Yakima County, Washington.
The claim against the City of Yakima has been settled for $130,000, subject to the presentation
of the settlement before the Yakima City Council at a City Council business meeting. A copy of
the Release signed by DNR is attached. The amount of the settlement with DNR is $130,000,
which entire amount will be paid by CIAW and the City's insurance carrier Munich Reinsurance.
The City of Yakima is paying no money toward settlement of the DNR claim as the City has
reached its insurance deductible.
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
0 Resolution 8/31/2018
0 Release 8/31/2018
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Type
Resdution
Backup Material
A RESOLUTION
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RESOLUTION NO. R -2018 -
authorizing consent to a settlement entered into by the Cities Insurance
Association of Washington and Munich Reinsurance to resolve and settle
the damage claim brought by State of Washington Department of Natural
Resources.
WHEREAS, on June 25, 2018, a damage claim was filed with the City Clerk's Office by
claimant State of Washington Department of Natural Resources ("DNR") relating to a fire that
started on or about June 27, 2017 in the South Wenas Road area, Selah in Yakima County,
Washington, and DNR alleged damages for its expenses in suppressing the fire; 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 claimant to resolve and conclude all
claims in the matter; and
WHEREAS, in the Release, liability for all such claims is denied by the entities being
released; and
WHEREAS, the settlement is to be paid by CIAW and Munich Reinsurance as the City
has reached its deductible on the incident; 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 the settlement with the claimant DNR 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 claimant DNR in the Release to resolve and settle the damage claim brought by
State of Washington Department of Natural Resources.
ADOPTED BY THE CITY COUNCIL this 11th day of September, 2018.
ATTEST: Kathy Coffey, Mayor
Sonya Claar Tee, City Clerk
RELEASE
SOUTH WENAS FIRE
Release.
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For the sole consideration of the sum of One Hundred Thirty Thousand Dollars
($130,000.00) paid to the STATE OF WASHINGTON, DEPARTIVIENT OF NATU ' L
RESOURCES (1)NR), receipt of which will be acknowledged, the undersigned forever releases
ME CITY OF YAKIMA, its insurers, employees, officers, directors, attorneys, principals,
heirs, executors, administrators, successors, assigns, agents, and representatives (hereinafter the
"Released Parties") from any and all past, present, or future DNR claims, demands, obligations,
actions, causes of action, rights, damages, and expenses of any nature whatsoever, including but
not limited to costs, losses, and expenses for fire suppression, resource losses, rehabilitation
expenses, property damages or losses to DNR land, timber, shuutures, loss of use, and, interest,
penalties, attorney fees, and costs, whether presently known or unknown, which in any way arise
out of the fire and the fire suppression efforts of I)NR, which occurred on or about June 27,
2017, near Selah, Washington (hereinafter the "South Wenas Fire").
2. Governing LaYv.
This Release shall be construed and interpreted according to the laws of the state of
Washington.
3. Denial of Liability.
The undersiped a.cknowledges that the payment of said sum is not to be construed as an
admission of liability by the Released Parties, who dispute any liability to the undersigned, but
that said paytrient is made and accepted in full accord and satisfaction of', and in compromise of,
a disputed claim and for the purpose of tenninating a disputed claim or litigation between the
parties.
4. Subrogation and Lien Claims,
The undersigned acknowledges and represents that no other person or entity has or has
had any interest in the claims referred to in this Release. The iandersigned further represents, to
the best of her krtowledge, that there are no lien claims or subrogation claims or interests related
to IDNR's claims arising out of the South Wenas Fire, which occurred on June 27, 2017. Should
any lien claims, subrogation claims, or interests arise from DNR's claims in the future, 13NR is
obligated under this Release to resolve such claims.
5. Warranty of Capacity to Execute Releasu
The undersigned warrants that she has the right and authority to execute this Release and
to receive the sum specified herein,
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6. AR Writings Contained Herein.
This Release represents and contains the entire understanding of the undersigned relating
to the matters covered by this Release, There are no representations, covenants, or undertakings
other than those expressly set forth in this Release.
CITY OF YAKIMA DATED this X, day of August, 2018.
By;
Cliff Moore, City Manager
Date:
ATTEST:
By:
City Clerk
City Resolution No, R-2018-
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STATE OF WASHINGTON,
DEPARTMENT OF NATURAL
RESOURCES
MEGAN DUFFY, Des jsor on
-behalf of HI FRANZ
Comrniss" ner of Public Lan s