RESOLUTION No. 36125

Authorize the City Attorney to file litigation on behalf of the City as may be required to recover money from Zurich American Insurance Company as a result of claims made against a policy of insurance in regard to the Tanner Creek Stream Diversion Project, Phases 2 and 5 (Resolution)

WHEREAS,  The Bureau of Environmental Services obtained a builder’s risk insurance policy from Zurich North American Insurance Company (“Zurich”) to protect itself and its contractor from accidents on the Tanner Creek Stream Diversion Project, Phases 2 and 5 (“the project”);

WHEREAS,  During installation of a receiving shaft for a micro-tunnel boring machine, an accident occurred at S.W. Naito Parkway that caused damage to the City and BES;

WHEREAS  BES filed a claim with Zurich for coverage which was accepted, but Zurich applied a deductible of $250,000 rather than the appropriate deductible of $10,000;

WHEREAS  The City Attorney’s Office has attempted to amicably resolve the issue of the appropriate deductible without success; and

WHEREAS  It appears necessary to file litigation against Zurich to recover the additional $240,000 owed to the City and BES;

NOW, THEREFORE, BE IT RESOLVED that the City Attorney is authorized to file litigation on behalf of the City of Portland and BES as may be required to fully recover on its insurance policy with Zurich.

Mayor Vera Katz

James H Van Dyke:cj

February 18, 2003

Adopted by the Council: FEB 26 2003 Gary Blackmer

Auditor of the City of Portland

By:/s/Susan Parsons

Deputy

BACKING SHEET INFORMATION

AGENDA NO. 167

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36125