Consideration and Approval of Settlement Agreement:  George Nackard v. the City of Flagstaff, CV2012-003499.

To obtain a full release of all claims against the City brought forth in the litigation.

Subsidiary Decisions Points: none

The City's Self Insurance Trust fund covers the first $50,000 in defense costs and settlement costs with City's insurance carrier, Travelers, to pay the balance of all costs associated with the claim.  To date legal defense fees are $30,833.24 plus any additional amounts associated with the mediation process and those fees necessary to finalize and execute the Settlement Agreement. Therefore the City SIR will pay $19,166.76 to exhaust its SIR and Travelers will be responsible for the remaining amounts, approximately $12,000 for final settlement and attorney's fees.

Effective governance

Yes, Executive Session July 9, 2013.

The Council could deny the Settlement Agreement and direct the City Attorney to continue in the litigation process.  The advantage of pursuing litigation as opposed to settling is that the City could prevail in trial and not be responsible for any award to Mr. Nackard.  The disadvantage of this option is that the cost to continue the litigation process (discovery, motions) and conducting the trial would exceed the cost of settlement without a certain outcome at trial.

G. Nackard was arrested on September 17, 2011 at the Municipal Court by officers of the Flagstaff Police Department for Disorderly Conduct, Resisting Arrest and Failure to Comply. 

All parties agree that in lieu of expending additional costs of litigation a settlement of all claims is in their best interest.  The City's Insurance carrier is in support of the claim settlement.

The City is responsible for the first $50,000 in all claims expenses including settlement, which are budgeted for in the City Self Insurance fund Account # 600-8901-590-2005.