Steve Sisolak ‘Susan Brown Governor Director Paul Nicks Deputy Director STATE OF NEVADA GOVERNOR’S FINANCE OFFICE Budget Division 209 E. Musser Street, Suite 200 | Carson City, NV 89701-4298 Phone: (775) 684-0222 | www.budget.nv.gov | Fax: (775) 684-0260 Date: May 17, 2019 To: Susan Brown, Clerk of the Board Governor's Finance Office From: Jim Rodriguez, Executive Branch Budget Officer“ Budget Division Subject: BOARD OF EXAMINERS |ACTION ITEM The following describes an action item submitted for placement on the agenda of the next Board of Examiners’ meeting, APPROVAL OF SETTLEMENT AGREEMENT WITH THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA. Pursuant to Article 5, Section 21 of the Nevada Constitution, the State Board of Examiners may approve, settle or deny any claim or action against the state, any of its agencies or any of its present or former officers, employees, immune contractors or State Legislators. THE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES -— DIVISION OF FORESTRY and UNIVERSITY OF NEVADA, RENO (UNR) Agenda Item Write-up: ‘The Division of Forestry, in conjunction with the University of Nevada, Reno request the Board of Examiners approve a settlement agreement between 105 Nevada property owners and the State of Nevada, Division of Forestry and UNR where the State of Nevada agrees to pay, as its share of the settlement, a total of $10 million, Additional Information: On Oct. 14, 2016, the Division of Forestry implemented and controlled-bum action in Cold Springs, Nevada along Little Valley road. ‘That burn escaped containment and tured into a full- scale wildfire that resulted in significant loss of property and homes. Residents and businesses impacted by that fire brought forth legal action claiming negligence on the part of the Division of Forestry.Through the course of discovery, mediation and claims for damages a settlement was reached in the amount of $25 million. The settlement includes two separate agreements: 1.) an agreement with the subrogated insurers for $7 million, and 2.) an agreement with the 105 individual plaintiffs for $18 million with the excess insurer for the State paying $15 million and the State paying $10 million. The State’s portion of the settlement will be funded $7 million from the Statutory Contingency Account and $3 million will be paid from the Tort Fund. The Attorney General’s Office believes the settlement is in the best interest of the state and recommends moving forward with the state’s portion of the settlement payment in the amount of $10 million. Settlement Agreement is attached. Statutory Authority: Article 5, Section 21 of the Nevada Constitution REVIEWED: Le ACTION ITEM:JESSICA L, ADAIR AARON D. FORD cea oer ‘Aare Gener CAROLINE BATEMAN RACHEL J. ANDERSON Fi Asan! ora Cora! Corse (CHRISTINE JONES BRADY STATE OF NEVADA HEIDI PARRY STERN Seond AwinentAtorscy Goel QF EICE OF THE ATTORNEY GENERAL 100 North Careon Stroot Carson City, Nevada 89701 MEMORANDUM To: dim Rodriguez, Executive Branch Budget Officer 2 From: —_ Nancy Katafias, Tort Claims Manager Subject: BOE Agenda Submittal: TC 18948 Little Valley Fire May 8, 2019 Please place the following item on the June 11, 2019 Board of Examiner's agen- da for approval. Upon approval, this item will be paid from Budget 1848, Cate- gory 15 and from the Statutory Contingency Fund Date: Claimant: Little Valley Fire; subrogated insurers and individu- al plaintiffs State Claim No.: ‘TC 18948 Settlement Amount: $25 million $15 million Excess Insurance $10 million from State of Nevada $7 million from the Statutory Contingency Fund $8 million from the Tort Fund $25 million is payable as follows: $18 million to the individual plaintiffs; payable to a Qualified Settlement Fund $7 million to the subrogated insurers; to Berger Kahn, A Law Corporation, Trust Account ‘Telephone: 776-484-100 » Fee 77664108 « Web: gsr gor @NevedehG + Facsbook: AVAtiomneyGereral YouTube AevasaaG