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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 4/2/2014 |
Commission, Board or Committee: N/A |
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Staff Contact: Joel Landeen, Mike Maltaverne |
PW Committee or L&F Committee: Legal & Finance |
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Petitioner: N/A |
City Council 1st Reading: N/A |
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Location: M Hill/Cowboy Hill |
City Council 2nd Reading: N/A |
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Agenda Title: |
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Authorize Mayor and Finance Officer to Sign Settlement Agreement and Release in Full of All Claims Related to the Mallow Fire |
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Summary: |
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On March 9, 2012, a large fire occurred on the eastern slope of M Hill/Cowboy Hill. This fire was fought by the Rapid City Fire Dept., the State Wildland Fire Suppression Division and various local volunteer fire departments. The total cost to the City in manpower and equipment was determined to be $85,894.11. This amount includes $34,160.24 that has been reimbursed to the State pursuant to the terms or our mutual aid agreements. Upon investigation, the FD determined that a sub-contractor to a general contractor who was doing a project in the area was responsible for starting the fire. Based on this determination, the City filed a claim with the contractor’s insurers. The insurers have hired an expert and are disputing the cause of the fire. City staff went to a mediation at the beginning of March and reached a tentative settlement of the City’s claims with the insurer subject to approval by the City Council. The insurers have agreed to pay the City $30,000 in exchange for a release of any and all claims. |
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Funding Source & Fiscal Impact (if applicable): |
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The City has already paid for the suppression costs in 2012, so the money would go back into the Fire Dept. budget to help purchase equipment that the department needs. |
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Recommendation: |
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Action: Authorize the Mayor and Finance Officer to sign the settlement agreement and release of all claims arising out of the “Mallow Fire.” Notes: Staff recommends approval |
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Options: |
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1) Approve the agreement and be reimbursed; 2) Reject the agreement and receive no reimbursement. |
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Attachments & Links: |
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