262222 WHITE CITV CLERK 1 ��^^
P�TIK ��INANCE TT CO1111C11 '1�f
BLUERV- MAVORTMENT GITY OF SAINT PAIlL File NO. v�22 � -
.-
� Co cil Resolution �
Presented By .
Referred To Committee: Date
Out of Committee By Date
RESOLVED� Tha.t upon the recommendation of the Council' s
Finance Committee, the Council of the City of Saint Paul does
hereby adopt the Claims Settlement Procedure as proposed by the
City Attorney in a letter to the Fina.nce Subcommittee dated
August 23, 1973.
COUNCILMEN Requested by Department of:
Yeas gutler Nays
K�onopatzki .�_ [n Favor
Levine
Meredith �� Against By
� Roedler
Tedesco
Mme.President � �
Adopted by Council: Date
SEP 2 5 1973 Form Approved y C'ty Attorney
Certifi ed by Co tary BY
By
Approved y Ma r. Date 3 Approved by Mayor for Submission to Council
,
By By
eugu�c� S EP 2 9 1973
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Aas��S t 2"� , 1'�i� �:. SCOT� C7;i'�.�i �5
i�1E�IiJI�:��DU�.I
T0 : Finance Subcommit-tee
of the City Council
F�.O��: R. Sco tt Davies � '
City �lttorney
SUBJECT : Claims Committee for the City of Saint Paul
It has been requested that our office sz�.t�ply �his
commit�tee �ai-th izi�orr�ation �,er. tainin� �o th� estab—
lishmen�t o� a elaims siak�co�nrii-ttee t.o consicle.r clair�
settlements ii�vol�ring �tor�t actions ag�inst the City
o� Saint PaLil .
�Iinneso ta Statl,ites, Cti�pter• 4�6 , siib�iect, ri:f.i;�.:ic_i���� L:ities
to liabili ty �or �heir• torts as zvell. as tr.ie tcx•-i;s os
their of�icers , emnloyees and a�er7ts actin,� :vit(�in t�ie
scope of their ersployment or duties . Seetia_�i -'�66 . ��5
provides that the �overning hocly of any inur�;.e-ipal i. c.��
may com�ro�:ise , adjust anci settle tor� c:t��.iius a�aitist
the municipality for �ny dar�a;es irtciirre�l zineler �ti�is
chapter and appropri�.te money #'or the payrnent thereo�E'.
At the outset , it is clear �that this powex may be
exercised only by the governing body, I� is a r�.on—
clelegable govern.merital �unetion. There�'o.re , -t�ie
remaining question is not whether the city council
should approve such proposed settlements biat the best
and most e �ficient zlianner in �vhich to do so .
�ye h�.v� ezaniined pr•ocedures iisecl in ott,t,r ,ju:riscl��—
tions , partie�.11arly -ttze S-tate c�f :�IirinPSO �a anc� t.h��
Ci-ty o� �Iinne�ipoiis . Z�Te finct tt�a-t , in rnost it�stEz��ces ,
a claifr�s corninit tee , �lheii es��,i3:�lish�cl, rzo t ?�'z�s �:�1
ind.iviciu�.1 cla i.raa��t o F a � t ii7�e �tncl ���.�c e ,�;;��f�l�F, f��is � �
clai:.; i{ill be co7a�icl�r��c: �:y tl��� cott.�i t te�> , Geri�. r<� :_ i_y, -
-tYiis is ��n -irifo�-•,.Ial p-r•oc,�ed_in� , a�t ��;ti�izci� ti�:,=� t.��; � �
i��tdividual ��as �tt�ie o����o�•�tiirzi�i,,y to presf,�, t li�is «os�i , :�'�,
to �tr.e t:o��,��iit, te:�� , <«ii_i tiir, ��n�i�t�t.e� i.s t��,�;.°i i.�ud�� � <.:r! �,:,--
T:I:;Zl��. -t'OY' � C12C LSlOTl. �.11 !`l��_T2C1E'.�t�O�1S , i:t��> { �! i'_��- '.�j, ;,r� �•rl-,�,- � -� �
O:�:f:LCE' �Z:t'OCESS"t'.S �li1Cl 11]VE_'.SI", i !�c.11E'S �;�i�' (; ' �11� :i ,I7Y'
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:1tt`;�.�s t '_'� , 19 i;
presen�at=iorz tc� ttze c1 ��icn5 co�.�;riittee . P�v �2 t�4o— f;hirci5
rrzajarit�- vote , �. c:iairi rnay }�e �ic;cepted b�- ttle corrlr;i:�tt�e
ar��! ttien passed to ttde eritire city couiicil for apgroval .
This , of course , does iiot �2:eclticle any ri�tlts oF the
inclivicllial to coi�rt appeals .
In our o�iriio:n, tti2 procedures usecl by trie City o�
. irlirineapolis arici similar jurisdictions shoulcl be re,�ected
�.s being less e_eficient , iro_ce costly, and procluctive of
sut�s ta�ltial le��.l ques�tior_s concerning Iat;er pres2nta—
tion o:i etiridence a� trial . �ne c�.irrert s�Tstem used
by th2 City of Saint; �'aul , wit11 sorne sli;ht cnocli�ica—
tion, is �'ar stzperior to any iv�e have ezar�:ined .
accorclin�ly, tice i�oulcl sug�est thac the fQlloc;iti� pro—
ced�:tres be establis,led :
1 . Clai«ls , �arlen _t�3_ed a;ai,i� :` � ._ , �:;s �i- of Sai�it P�a�.t]. ,
shuuld � be process�d , _ins��� �_�i�_�_ec? elzid handlec� u�p
to tile ti�ne of a propos�c: �e t tlU�: e���t solel5- b�r
the of�ice o� ttie Cit-y At iorne�-. Tn our opi�iion,
�these activities cons ti-ttlte le�al bL�siness over
`��liicll our o�':tic�� , utider S�etioil 7 . C)? o:i the C.iarter,
is char�ed �vith re-tainin� full ana co�plete control . _
2 . WYien a proposed set-tlemerit has been .reached be-tcveen
the claimant ard ttiis o#�tice on a contingent basis ,
that is , subject to the a�proval of -the �;overning
body, and a conc�itiox�al release has been e�ecuted
i�y the elaiman+ on that basis , the proposal shouicl
be for��arcled to the Ci-ty Co�.zncil wi-tY; az� e�plai�atoxy
r��i,or�,nclum �frori -t��is c�f�ic° settin� �orth tt�e
Ie�al opinion tt�at liabil-it,y e:�iszs anc� a sum�,�ary
o� th� reasons lor tfie p��o�osecl clollar set tler�:arit .
Tha memor�.nc:urn s�loulcl k�e sen� to ttie Ci�y Coi�ne�I
in ads-an�e o� its f�lacer,ier?t o�� ,�ile a7encla so ;.h�zt
� eact:� le�isl�� F,ot• t;as at1 or��Jo�t�2i.l? ty o-t zevie;v .� �
� . .Z L �iiE,-' Gl t�Y �.C?�.tt1C11 � �li.1S Cii::!;� f 1�Y:5 CO;).Cf'riilTl�' i;i1!' -
se 't;ti i;;�;e��.;, , ci::, t::<.tt ter. s}i�;?_ii�l �r�� p1.��.cer1 ut! the
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ii:l I L ;.rJI)f',�?Y' !)E: !.`OY'° �.ilf; S!l�-' ;Qi:: i.i. G i,E'f_'. �O £'.\�i�t1.`i
tfl£' jt'. � �;LL'iilE.'.71 ,� . l I 1 i 1S �;�!P ��E:� ii'C �1 i t;�IE:
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t,tl�U S � `�.�� � ��� %� v�'i�
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� corn�,iittee , the c1.ai«�aslt; in�ti�,� f�e a�t:�c1 t;o �.���-,r�at°.
Oi� the o t��el• h���iti , i-f'� ��ct�iere ar•e no ��ues�t i.o��:� on
tlie p��z•t o_f tt:a Ci ty Cot�nci.l. , the cs�� � t�;r sfiot�l�1
not be ref'erred to tlie sti��coluriittee but processetl
for a�proval .
jde hav�� eonsidex•ecl the propo5ition of p!.acin.� a clollar
a�souxit limitatioa3 on tnos° claims tivhic�� Zv'OLlIC�. be �or—
w�,rclecl to ��. com^►i-t tee �or re�-ie�v, lor exaurpl_e , uu��thin�
over 51 , 000, aric: have rejec+ed tt2at posi�tion or3 t.�e
gro�incls that indi�-idi.:al le�islators si�o�lld be able to
revie�� each clairn �vi-th the e�plaiiato�y r►emoranclu;�
re���rdless of cost a��oiint .
For your iniorr;i�.tioYi, our office ilas :�.nal��zeil c�a-�_;_�s ,
settlements and j�,��l�rne�ts f'o:r t'r2e S-ears 1972 ��,r.:d 19i>
throu���i J�uly 1 . In t���e ,year i,�,2 , !��i� cl.���i.l�:s ��er�
.filed , F�itl1 _L47 clai:�l settle,�:e�:i.s �,.nc� �!: ;tt,�`,.�ez� ;;.;
� e�l�te_t°eci in coiirt . �!'ota:1 clai ;� set��1�,����rzt�s for� ��.iat �
year ec1Ltaled �2� , �27 . 06 . C�L�r• i. ,;}_zc:Jrne�ts �or !-ti�
same p�riod totaled �:�O, S06 , �1 , ���s�ilti�i� in a tot��l
payol;t for all clai;�is ancl jud�r.ierits of' ;106 , '-�>j , ir ,
Durin� the _first si� montlis of ca_lenrla�� ti'eai� �97� ,
207 claiu-�s iaere �'ilPcl, �vith �i clai►n se ttie�_�erits �.nd
20 judg�iients en�terecl. Set�tieci�eiits fo� that p�riod
to tale�i �23, 413 and jud�ments to talecl �25 , =l`?1 , for a
si:� mon-ths ' total of �48 ,734. �bsent Linzis�al case
situat.ions , we can presume tha-t our to-tal pay—out
abain this year �vill be ��ithin budget . In coritrast ,
ire finc� that proposecl insurance coverage on tort
liability as submi ttecl by� Bachrnt�n — :lnclersUn, .�nc .
would resLilt in a =eneral _liabili ty pre;�ium o� �`-."?j, l)C>0
per axznum. �i'�is fi�lire iaould no-t iticlitclF� aT:ito;�obile
liability, whic.� cons-tit.u-tes a sui�stantial poruion of
oi�r clai;� settlersents ar.d ,juclgmeiits .
�C�l1�re�ore , in sii<<�.�:��rs�f ��e rF��;or.�ne,ici� tt��� � ttt,� (;t��i�..ic_�i
�.
re-tair.i �ne curre�rt s�����i.�c t�ire �v�i�v�i ��t�e ��:1��;�1i���c�1�t ic:_�s
SL1�,trE_'.Sf�E'CI �l.i)'JVF; ,, �Il �;�alcli7�f' � �L 1S (_�::Y' �.1t1L'i1i011 i_:1:3,1; .
� � t���is is �t,tie ��ios�� � _i�licie�,�_ t� it��.t 1F���s�i, �e:s !: 1 �� �.<<, � ;zo:; � �
O� ��2�1Y1t.f.�1Tl~r �Ot � CZ �l:iiilS :t`,�li:l� � `L:l_� J lt��.t!i1.t t � +cl.? _I_ " ,
f�.S�: �)_L
CC : l�011'[1C3.. �_ :'''�f'tiit)f'I'j � � �
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�une 27, 1973
Cotuicil.n�n Willie�m Itc►nopatzki
Chairman, Finance Ca�maittee
Roe�n ?16, City Ha�]..l
St. Paul, Minnesota
Deax Sir:
The Counci]. ref�rrea to the Finance Cotmn.i.ttea� for study and
conaideration tYse matter e� the fea�ibility of e�tablishfng
a claima co�mmittee nf the City Couneil.
, Youra vexy truly,
City Clerk
ABO:�mw