REPORT TO COUNCIL
SUBJECT
Title
Action on Approval of a Budget Amendment to Fund Settlement in the Case of Smee v. City of Santa Clara
Report
BACKGROUND
Smee v. City of Santa Clara arises from an auto vs. pedestrian accident in a marked crosswalk at the intersection of Kiely Boulevard and Malabar Avenue. Mr. Smee sustained significant personal injuries and initiated suit against the at-fault driver and the City. His claims against the City are related to the design and maintenance of the crosswalk where the accident occurred. Mr. Smee's employer, AutoNation (owner of the Mini dealership located on Kiely Boulevard), is also involved in the suit as it pertains to the amounts expended for Mr. Smee's medical care.
DISCUSSION
This settlement was brought to Council in closed session on June 12, 2018, at which time Council approved the settlement amount. No report out of closed session was completed at that time because the settlement was not yet final, as required by California Government Code ?54957.1(a)(3). The settlement has now been finalized and a copy of the Settlement Agreement is on file with the City Clerk's Office.
The City's total liability on this case is $2 million, and the settlement forecloses any possible further liability for the City based upon ongoing claims of Auto Nation. An appropriation from the Special Liability Reserve Fund - which is a reserve fund established to cover jury verdicts, settlements, and payments of the City's insurance deductible in claims matters - to the Special Liability Insurance Fund is required in order to make the payment. Staff further requests approval of payment from the Special Liability Insurance Fund in the amount of $2 million to plaintiffs, Mr. and Mrs. Smee (and their counsel), in accordance with the terms of the settlement agreement.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA...
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