HomeMy WebLinkAboutFCS-11-071 - Delegation re Execution of Releases1
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KITCx~nT~,~ ~inanre and Corporate Services Department ~+ww.kircbenerca
REPORT TO: Council
DATE OF MEETING: March 28, 2011
SUBMITTED BY: Lesley MacDonald, Director of Legal Services &
City Solicitor, 519-741-2267
PREPARED BY: Lesley MacDonald, Director of Legal Services &
City Solicitor, 519-741-2267
WARD(S) INVOLVED: N/A
DATE OF REPORT: March 24, 2011
REPORT NO.: FCS-11-071
SUBJECT: Addendum to Report FCS-11-049
Delegation of the Execution of Releases
RECOMMENDATION:
That the recommendation in Report FCS-11-049 be amended to change the amount of the
awards from $100,000 to $25,000 or less.
BACKGROUND:
Council deferred Report FCS-11-049 seeking more information about the types of releases and
number of times the City is faced with executing releases in order to receive payouts/payments
in settlement of claims (or could be claims) the City would have had.
The situation typically arises where City property is damaged and the City seeks recovery from
the party responsible. The insurance company representing the party responsible and or their
lawyer require that the City execute a release, releasing them from any further responsibility
with respect to the particular matter before they will make payment to the City.
Currently the City is involved in 2 matters where releases are being sought. One matter
involves a city gas meters which was hit by a vehicle. The vehicle owner's insurance company
has acknowledged the damages and is prepared to reimburse the City for the costs to repair the
meter, which are approximately $1650.00, but it requires a Release executed by the City
indicating that the City will not be seeking further recovery from the insurance company and
vehicle owner. The other matter involved a situation where a contractor working for the City did
not locate a water main and there were significant damages in the amount of $23,500.00 which
the City is recovering from the Contractor's insurer but again a release is required.
REPORT:
The number of situations which have arisen over the years have not been tracked but we are
aware that it happens occasionally and in order for the City to recover its costs for repairing and
replacing its property that has been damaged or destroyed, releases are often required. To
date there has been no clear direction as to how to handle these requests for release. In
canvassing staff in various divisions as to the number of times they may have encountered such
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a request and the value of the damage involved, it would appear that the value of the damage
typically has run under $25,000. Pre-approved authorization for the CAO and the DCAO's to
execute releases that are satisfactory to the City Solicitor once staff and/or the insurance pool
staff involved in the particular matter have reviewed the details of the situation and confirmed
acceptable recovery would create an efficiency and would give clear direction to staff has to the
approach that should be taken. Since the value of most recovery tends to be under $25,000, I
would suggest that the resolution originally put forth in FCS-11-049 be modified to reflect
awards of $25,000 or less. Where the award exceeds $25,000 staff will bring a report to
Council seeking authorization.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Assists with respect to effective and efficient government.
FINANCIAL IMPLICATIONS:
There are no costs to the City as this involves the City recovering costs that it otherwise has
occurred as a result of damages caused by others.
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Joyce Evans, Acting Deputy CAO and City Treasurer
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Staff ~~ vr~
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KITCx~nT~,~ ~inanre and Corporate Services Department ~+ww.kircbenerca
REPORT TO: Committee of the Whole
DATE OF MEETING: March 7, 2011
SUBMITTED BY: Lesley MacDonald, Director of Legal Services &
City Solicitor, 519-741-2267
PREPARED BY: Lesley MacDonald, Director of Legal Services &
City Solicitor, 519-741-2267
WARD(S) INVOLVED: N/A
DATE OF REPORT: March 3, 2011
REPORT NO.: FCS-11-049
SUBJECT: Delegation of the Execution of Releases pertaining to
awards of damages, satisfaction of claims, lawsuits,
recovery of insurance proceeds and costs.
RECOMMENDATION:
That the Chief Administrative Officer and the Deputy Chief Administrative Officers are hereby
authorized to execute any Releases pertaining to awards of damages, satisfaction of claims,
lawsuits, recovery of insurance proceeds and costs where the award is $100,000.00 or less;
said Release documentation must be to the satisfaction of the City Solicitor.
BACKGROUND:
From time to time the city is involved in matters where it becomes appropriate for the City to be
paid monies on account of a loss the City incurred such as damage to City property and in order
to receive those monies the City is asked to execute a Release, releasing the other party (ies)
from any further responsibility with respect to the particular matter. For example currently the
City is involved in a matter where one of its gas meters was hit by a vehicle and the vehicle
owner's insurance company has acknowledged the damages and is prepared to reimburse the
City for the costs to repair the meter but it requires a Release executed by the City indicating
that the City will not be seeking further recovery from the insurance company and vehicle
owner.
REPORT:
Once City staff and/or the insurance pool staff, involved in the particulars files review
the details of the situation and determine there are no further concerns for the City, it is
appropriate to have a Release executed provided it is acceptable to the City Solicitor.
For expediency purposes staff would take the Release for signature to either the CAO
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or the DCAO most familiar with the area involved where ever possible. Staff proposes
that the CAO and DCAO be able to sign any such Releases pertaining to payments of
$100,000 or less.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
N/A
FINANCIAL IMPLICATIONS:
N/A
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO and City Treasurer
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