passed ordinance

*Pay settlement of William Erickson Jr and Ashley McGraw property damage claims for $39,897 involving the Portland Bureau of Environmental Services

infrastructure utilities
budget finance
claim settlement

Department: Risk Management
Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

This Ordinance settles two property damage claims brought by William Erickson Jr and Ashley McGraw, resulting from a sewer backup in their property in north Portland.

Financial impacts

This legislation will have no impact on City revenue. Total cost to the city to settle these claims is $39,897.24. The source of funding is the City’s Insurance and Claims Fund. All cost of the settlement is in the current fiscal year. This Ordinance does not amend the budget.

Community impacts

This Ordinance settles two tort claims resulting from a sewer backup involving the Portland Bureau of Environmental Services. No public involvement or input was sought regarding this Ordinance. The City Attorney’s Office and Risk Management have concluded that it is not appropriate to have public involvement in settlement negotiations regarding tort claims or lawsuits against the City. No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle a tort claim against the City of Portland.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: William Erickson Jr and Ashley McGraw have filed claims against the city for damages resulting from a sewer backup involving the Portland Bureau of Environmental Services on September 12, 2023. The claims have been investigated by Risk Management Services. The investigation indicates there is risk the city may be found liable. Therefore, in order to avoid the risk of an adverse jury award, it is prudent to compromise the claims at this time. City Attorney, Risk Management, and the Bureau of Environmental Services (BES) recommends the claims be compromised for the total sum of $39,897.24 with the amount of $29,897.24 still due, subject to the claimant providing the city with a release in a form to be approved by the City Attorney. NOW, THEREFORE, the Council directs: The Mayor and Auditor are hereby authorized to draw and deliver a check in the amount of $29,897.24 made payable to William Erickson Jr and Ashley McGraw. Risk Management Services will execute a payment authorization in the amount set forth in sub-paragraph (A) above. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling these property damage claims; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

5 yea 0 nay