By Marjorie Simoens

Des Moines Area Regional Transit Authority (DART) General Manager Brad Miller asked the Polk County Board of Supervisors for a $1.6 million loan this morning to cover foreseeable lawsuit payouts associated with five pedestrian accidents that occurred within the past 16 months. The board denied the request.

Miller said DART’s legal counsel is “recommending that we need to prepare $2 million for these five pedestrian accidents.” DART has set aside $400,000 to cover the potential liability claims; the loan would have accounted for the remainder of the pool solely for litigation awards or settlements.

The requested loan was seen as a way “to sort of meter out the pending and upcoming major liability expenses that are coming up for DART,” Miller said.

Four out of the five pedestrian accidents were significant accidents, with three individuals actually being run over by a bus, Miller said. The most recent accident happened in October, when a bus making a left turn hit a pedestrian who was crossing the street.

The trials in lawsuits related to the pedestrian accidents are expected to go to court in late 2009 or early 2010, Miller said, making it pertinent to include the money to cover the judgments in the upcoming ’09 and ’10 budgets, which are currently being drafted.

Miller suggested DART would repay the $1.6 million zero-percent interest loan over four years in $400,000 increments until the loan was completely paid off in fiscal year 2014.

However, after Miller’s presentation, the Board of Supervisors denied his request. The board said that by giving DART the loan, Polk County would essentially be writing a check to the plaintiffs for $2 million before the trials even begin.

“If you’re on the witness stand and the plaintiff’s council says ‘Well isn’t it true that Polk County has guaranteed your liabilities to the extent of $2 million?’ you’re under oath, you have to say ‘yes’ and you have essentially written a check for $2 million,” said Michael O’Meara, first assistant county attorney.

“So I think we need to slow down on that. It’s one thing for you to make a presentation and tell us your situation; it’s a totally different thing for Polk County to go on record with a resolution as a guarantor for any potential liability that a jury is going to find.”

Other board members echoed O’Meara’s concern, claiming the loan is unnecessary given the uncertainty of the outcomes of the lawsuits.

“I’m wondering if it would be better to come back and see us when these cases get tried or settled,” said Robert Brownell, 1st District supervisor. “I think this would work against you rather than work for you.”

Miller said he plans to go back to the drafting board to devise a plan that would better suit the uncertainty of the situation.