LAGUNA BEACH : City OKs $61,500 to Settle 2 Claims

The Laguna Beach City Council agreed last week to pay $61,500 to settle two claims against the city, one involving a police car that rear-ended a vehicle and another that resulted from a city bus hitting a bicyclist.

Even before those claims were settled, the city had spent more in the first five months of this fiscal year on liability claims than it did in all of fiscal year 1991-92, said Deputy City Manager Rob Clark.

The settlement of those and one smaller claim approved last week by the council brings the amount allocated from the general insurance fund for this fiscal year to $1,070,000, according to figures provided by Clark. In all of 1991-92, the amount spent was $960,000, he said.

While the general insurance fund also includes the amount paid for legal fees and insurance premiums, Clark said, the steady rise in spending since fiscal year 1987-88 can be directly attributed to having more and larger claims being filed against the city.

For example, in September, the city agreed to pay $450,000 to settle a case of a homeless man who died of injuries sustained after being run over by a police car. The man was squatting in the middle of the street at the time.

Last month, the City Council voted to pay $115,000 to settle claims filed by two women who were injured more than two years ago when a city bus crashed into the rear of their vehicle on Laguna Canyon Road.

Last year, the city paid $100,000 to a man who was kicked by an officer during a 1990 arrest that was captured on videotape.

“There’s no question we’ve had a couple big claims in the last couple years,” City Manager Kenneth C. Frank said. However, he said, such costs are cyclical and have risen and fallen over the past decade.

“One $450,000 claim can distort the whole picture,” Frank said.

Rising Costs of Claims

Here’s what Laguna Beach has spent from the city’s general insurance fund since fiscal year 1981-82 to settle claims and lawsuits against the city. Figures include legal fees and insurance costs.

Year: Amount 1981-82: $334,000 1982-83: $645,000 1983-84: $1,180,000 1984-85: $496,000 1985-86: $672,000 1986-87: $510,000 1987-88: $504,000 1988-89: $587,000 1989-90: $590,000 1990-91: $682,000 1991-92: $960,000 1992-93*: 999,000 * First five months

Source: City Manager’s office.

Researched by LESLIE EARNEST / For The Times