10 - Mercury Insurance Claim Rejection Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: May 23, 2013 Subject: Claim No. 13 -00 3 - Mercury Insurance Summary The Costa Mesa Sanitary District received a third party claim on April 29, 2013 for alleged damages to a vehicle from a loose sewer manhole cover. Staff Recommendation Staff recommends the Board of Directors reject the claim . Analysis Attached is a claim form along with supporting document ation from Mercury Insurance regarding their claim for alleged damages to their insured’s, Mr. Marc L. Oestreicher, vehicle from a loose sewer manhole cover in the late afternoon of March 24, 2013 . This claim has been forwarded to the Special District Risk Management Authority (SDRMA), the District’s third party administrator, to process. Staff was notified of a loose manhole cover incident the evening of March 24, 2013. Staff responded to the site of Bristol and Bear when on-call staff was notified by the Costa Mesa Police Department. Costa Mesa PD requested District staff weld the manhole cover to the manhole ring. ITEM NO. 10
Board of Directors May 23, 2013 Page 2 of 2 Upon review of District maintenance records, this manhole was last assessed when the sewer mainline was cleaned, on March 14, 2012. There are no records on file that indicate this area contained a hazardous condition, therefore, the District was never on notice. Rejection of the claim does not preclude the possibility of se ttlement of the claim but sets the statute of limitations so resolution can be reached in a reasonable time . Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 5.0., Administrative Management, which states: “Objective: To create, maintain and implement policies and procedures to ensure sound management of the District.” “Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District operations.” Legal Review SDRMA will represent the District if the claimant pursues to recover costs for damages after the Board rejects the claim. Financial Review There is no financial impact for rejecting the claim. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23 , 2013 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actio ns 1. Direct staff to report back with more information Attachment A : Claim No. 2013 -00 3 ITEM NO. 10
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