Title
Human Resources Department, Risk Management Division, recommending the Board approve and authorize the Chair to sign a budget transfer for Fiscal Year 2025-26 to increase appropriations by $15,510,971 in the General Liability Fund to process a settlement payment in the matter of Ammons v. County of El Dorado (4/5 vote required).
FUNDING: General Liability Fund.
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DISCUSSION / BACKGROUND
On May 31, 2023, a driver on Pony Express Trail in Pollock Pines was traveling westbound approaching the crosswalk in front of the 50 Grand Café. At the same time, a group of children from the Pine Top Montessori School were walking back to school from a field trip and entered the crosswalk. The driver failed stop for the children in the crosswalk, striking three causing serious to them. The children, through their guardians, filed lawsuits against the driver, his employer, the school, and the County. The other defendants settled with the three plaintiffs for their policy limits, $2,000,000, collectively. The case proceeded against the County on the dangerous condition of public property theory. If the Plaintiffs were to prevail against the County, the County would be jointly liable (along with the other defendants) to Plaintiffs for their economic damages. The County would only be severally liable (liable to the extent of its proportionate share of fault) for the non-economic damages (pain and suffering). The parties agreed to mediate the matter ahead of an impending trial date. The County, through its risk pool, PRISM, reached a settlement with all three plaintiffs. This budget transfer is necessary to process the settlement payment to the plaintiffs. The County is being reimbursed for this payment from PRISM.
On December 2, 2025, with Legistar file 25-1936, the Board approved a settlement in the case Ammons v. County of El Dorado, Case No. 24CV0374 (Ammons) for $15,000,000. The settlement will be paid from the General Liability Program (with reimbursement from the County's excess insurance authority as discussed below).
PRISM is the County’s excess insurance authority. The General Liability Program Policy has a self-insured retention (SIR) of $1,000,000. Prior settlement payments have been made in the amount of $950,000. The excess of the SIR will be reimbursed by PRISM in the amount of $14,950,000. PRISM will also reimburse County legal costs, estimated to be $560,000.
The enclosed budget transfer will allow for sufficient appropriations to process the settlement payment.
ALTERNATIVES
Not approving the budget transfer would result in inadequate appropriations in the General Liability which would impair the County's ability to complete the settlement as agreed to between the parties.
PRIOR BOARD ACTION
12/02/2025 Legistar file 25-1936: Closed Session.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The current $15,000,000 settlement will be reimbursed by PRISM in the amount of $14,950,000. The County had made prior payments totaling $950,000 prior to this settlement towards the SIR of $1,000,000 in prior settlements and legal costs. Therefore, the reimbursement to the County from PRISM is reduced by the remaining $50,000 applied towards the SIR.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon Board approval, obtain Board Chair signature on the attached Budget Transfer and forward to the Auditor’s Office for final processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joseph Carruesco, Director of Human Resources