5. The Impact of Claims in the Public Right of Way
· The Department of Public Works paid $2.85 million in claims settlement costs in FY 2005-2006 from claims related to tree problems, sidewalk falls, vehicle accidents and other Department activities. The Department's number of claims settlements has increased by 50 percent over the past ten years and claims settlement costs have increased by 79 percent.
· The Department of Public Works incurs high costs for claims settlements for tree-related incidents. $1.7 million in claims settlement costs in FY 2005-2006 resulted from tree problems, or 59.6 percent of the Department's total claims settlement amount of $2.85 million. Sidewalks lifted and damaged by tree roots are the primary reason for the increase in tree problem settlements.
· According to the Department, the Bureau of Urban Forestry assesses sidewalk damage due to tree problems and prioritizes sidewalk repairs based on this assessment. However, the cost of tree-related claims has increased significantly over the past 10 years. The number of tree-related claims settlements increased from 56 in FY 1996-1997 to 251 in FY 2005-2006. The claims settlement amount increased from $158,006 in FY 1996-1997 to $1,661,936 in FY 2005-2006.
· The Department should more thoroughly assess causes of tree-related claims to efficiently plan sidewalk repairs and reduce the incidence and costs of claims settlements resulting from tree problems.
The Department of Public Works, through the services of the Office of the City Attorney Bureau of Claims and Investigations, investigates and seeks to settle all claims brought against the City and County resulting from accidents on the City's right of way. Over the past ten years, from fiscal year 1996-1997 through fiscal year 2005-2006, the Department of Public Works settled a total of 5,274 claims with total costs of $22.2 million.
Since FY 1996-1997, the number of claims settlements has increased by 50 percent and the cost to settle has increased 79 percent. The Department of Public Works settles an increasing number of claims due to tree and sidewalk accidents. The number of claims attributed to tree problems have increased by approximately 350 percent and the costs of these claims has increased by approximately 950 percent.
Table 5.1
Comparison of the Annual Number and Costs of Settlements for Claims Resulting from the Department of Public Works' Responsibility for the Public Right of Way
FY 1996-1997 and FY 2005-2006
Cause | Number of Settlements | Cost of Settlements | ||
FY 2005-2006 | FY 1996-1997 | FY 2005-2006 | FY 1996-1997 | |
Tree Problems | 251 | 56 | $1,661,936 | $158,006 |
Sidewalk Falls | 35 | 48 | 293,570 | 217,563 |
City Vehicle Accidents | 76 | 81 | 313,067 | 378,616 |
Roadway Falls | 27 | 38 | 107,046 | 247,916 |
Vehicles Damaged by Road | 141 | 70 | 139,913 | 218,689 |
Damage caused by operations | 51 | 57 | 247,480 | 69,753 |
Flooding Damages | 6 | 21 | 29,087 | 295,445 |
Miscellaneous Damages | 7 | 1 | 52,726 | 140 |
Tires Damaged by Curbs | 27 | 43 | 3,686 | 3,264 |
City Contracts | 0 | 0 | 0 | 0 |
Total: | 621 | 415 | $2,848,511 | $1,589,392 |
10-year increase in the number of Settlements | 50% | |||
10-year increase in the cost of Settlements | 79% | |||
Source: City Attorney Claims Unit
Sidewalks lifted and damaged by tree roots are the primary reason for the increase in tree problem settlements. Although property owners are responsible for the maintenance of their sidewalk, the exception is when a City tree causes damage. Additionally, the City is responsible for sidewalks of school districts and some buildings of State and Federal buildings.
According to the Bureau of Urban Forestry, as of October 20, 2006, the Bureau had identified 6,252 City sidewalks needing repairs and an additional 8,195 for which the City is responsible. Total estimated costs of the backlog are $11.4 million.
Table 5.2
Backlog of Sidewalk Repairs as of October 20, 2006
Number of Sidewalk Locations | Square Feet per Sidewalk Location | Cost per Square Feet | Total Estimated Cost to Repair the Sidewalks | |
Tracked by the Bureau of Urban Forestry | ||||
City sidewalks | 6,252 | 72 | $11.00 | $4,951,584 |
Not Tracked by the Bureau of Urban Forestry | ||||
School districts | 3,352 | 72 | 11.00 | 2,654,784 |
State and Federal | 676 | 72 | 11.00 | 535,392 |
Other - not identified | 4,167 | 72 | 11.00 | 3,300,264 |
8,195 | 6,490,440 | |||
Total Estimated Backlog Sidewalk Repairs: | 14,447 | 72 | 11.00 | $11,442,024 |
Source: Bureau of Urban Forestry
To better understand the scope of the sidewalk repair backlog for which the Department of Public Works is responsible, the Bureau of Urban Forestry should complete an annual evaluation of all sidewalks for which the City is responsible and record these findings in their computer tracking system.
Currently, the Department of Public Works does not have a formal procedure to assess and manage risks associated with its infrastructure in order to minimize claims and litigation. Because the Department incurs such high claims costs from sidewalk claims due to tree problems, the Department should assess common causes, such as specific types of trees, locations, and sidewalk structures to determine which factors contribute to claims. The Department should then use this information to plan and set priorities for repairs.
The Department of Public Works receives approximately $500,000 annually from the San Francisco County Transportation Authority and an additional $100,000 annually from grants to reconstruct and repair sidewalks. The City's ten-year capital plan anticipates approximately $1 million annually in sidewalk to replace defective sidewalks and keep current with annual sidewalk deterioration. The Department of Public Works should track and analyze sidewalk repair funding, sidewalk repairs, and sidewalk-related claims costs to determine if targeted sidewalk repairs contribute to reduced claims costs. This information should be presented to the Board of Supervisors each year during the annual budget review, allowing the Board of Supervisors to assess the impact of sidewalk funding and resulting savings in claims costs.
Conclusion
The City incurs significant costs from claims associated with sidewalk damage due to tree roots cracking, displacing or in other ways causing damage or disruption to sidewalks. At the same time, the City has a backlog in sidewalk maintenance. The Department of Public Works does not have a full inventory of all sidewalks needing repair nor a procedure to assess which sidewalks contribute to accidents and claims costs. The Department needs to evaluate the costs of sidewalk repairs against the potential reduction in claims to determine if prioritizing sidewalk repairs contributes to a reduction in claims.
Recommendations
The Deputy Director for Operations should:
5.1 Complete an annual evaluation of all sidewalks for which the Department of Public Works is responsible and record these findings in their computer tracking system.
5.2 Assess common causes of tree-related claims, such as specific types of trees, locations, and sidewalk structures, to determine which factors contribute to claims.
5.3 Include the claims assessment data in setting sidewalk repair priorities.
5.4 Track and analyze sidewalk repair funding, sidewalk repairs, and sidewalk-related claims costs to determine if targeted sidewalk repairs contribute to reduced claims costs.
5.5 Present this information to the Board of Supervisors each year during the annual budget review.
Costs and Benefits
Currently, the Department of Public Works incurs $1.6 million annually in claims costs due to tree-related incidents. If sidewalk repair priorities based on an assessment of frequently-occurring claims reduced claim amounts by 10 percent, the City would achieve $160,000 annually in savings.