Lrt-related claims probed

Property owners need better process for complaints: auditor

Edmonton’s auditor has told city o cials they should make changes after complaints last year about the handling of damage claims from construction of the south LRT.

“Our observations show that the insurance claims practices applied for the SLRT were not formally communicated to residents in the affected communities,” according to a report by city auditor David Wiun.

“The administration needs to ensure processes and practices are open and transparent to protect the city’s reputation and maintain public trust.”

Homeowners filed insurance claims by last year regarding 51 properties with cracked walls, broken fences and other problems they felt were caused by crews building the LRT south of the University of Alberta.

The line along 114th Street to South Campus opened in 2009, and the Century Park extension was finished a year later.

While there was an “extensive” communications strategy to let people know about construction activity and progress on the project, it didn’t tell them how to prepare for a damage claim, Wiun found.

The city should have let nearby residents know they needed to document the condition of their homes before work started, who to contact about excessive vibrations and how to make a claim, he wrote.

“News reports portrayed the city’s claims process as confusing, adversarial, unfair and stacked against claimants. We believe negative publicity generated by the media can impact the city’s reputation and erode public trust.”

A Journal story last October indicated about half the claims, which must be filed within two years, had been settled, although the amount of money involved wasn’t disclosed.

Wiun originally intended to study whether the claims were managed in a fair and consistent manner, but the insurance company wouldn’t give him the information he required.

Out of 47 claims he could check, 12 were on the list of properties considered at risk and 35 weren’t, making it possible they’d have a harder time proving their case because they didn’t document the home’s pre-construction condition.

While city staff believe all claims were settled fairly, Wiun said the incomplete files make this di cult to determine.

Coun. Don Iveson, who asked Wiun to look into the LRT concerns after hearing complaints from residents, said Wednesday his recommendations for more information and better communications are reasonable.

“Administration has agreed to those recommendations and made changes for the work on the north line. Those changes will apply to the north, east, west and any future LRT project,” he said.

“I think they’re going to make the process easier to negotiate for citizens, and that’s always what we’re looking for.”

Wiun determined the insurance process has been improved for the NAIT line by making information available through 311 and regular meetings with the broker.

David Edey, general manager of corporate services, said the south LRT was the first above-ground track built in Edmonton near existing neighbourhoods.

“The (previous) LRT was in the north, which didn’t involve going so close to people’s property.”

Engineers visited 132 homes next to the south LRT line for pre-construction assessments of places felt most at risk, Edey said. There were 224 inspections o ered for homes abutting the line being built to NAIT, scheduled to open in 2014, but only 186 people accepted.

So far, there have been four claims on the north side. Two were denied and two are in progress.

All claims now go through the city so it can keep better track of what’s happening, and are then sent to an independent adjuster hired by the firm handling the project, Zurich Insurance, Edey said.

“We’re learning from our recent experience.”