HomeMy WebLinkAbout11 AMEND RES 04-24 AUTH TO SETTLE LIAB CLAIMS 09-15-09Agenda Item 11
~ Reviewed:
~~ ~~,~~, ~ ~ AGENDA REPORT City Manager
Finance Director N/A
MEETING DATE: SEPTEMBER 15, 2009
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: KRISTI RECCHIA, HUMAN RESOURCES DIRECTOR
SUBJECT: AMEND RESOLUTION 04-24 REGARDING AUTHORITY TO SETTLE GENERAL AND
AUTOMOBILE LIABILITY CLAIMS
RECOMMENDATION:
Adopt Resolution No. 09-55, amending Resolution No. 04-24 to update and clarify the authority
of the City Manager, City Attorney, Human Resources Director, Risk Manager, and City Council
to settle General and Automobile Liability Claims, and to increase the authority level from
$10,000 to $25,000.
FISCAL IMPACT:
None.
BACKGROUND AND DISCUSSION:
Resolution 04-24 previously clarified and outlined authority levels for the settlement of General
and Automobile Liability Claims. Since the adoption of Resolution 04-24, the City has
undergone changes with regard to responsibility for such claims. Prior to December 2008, the
Finance Director had responsibility for all General and Automobile Liability Claims. Beginning in
December 2008, responsibility for these claims falls under the Human Resources Director and
Risk Manager.
The proposed Resolution reflects the change in responsibility from the Finance Director to the
Human Resources Director and Risk Manager by replacing `Finance Director' with 'Human
Resources Director' and `Risk Manager' throughout the Resolution.
Resolution 04-24 also granted settlement authority for General and Automobile Liability Claims
up to $10,000. A survey of other cities within the California Insurance Pool Authority (CIPA)
was conducted in February 2009, and found that the majority of cities maintain a level of
settlement authority at a minimum of $20,000.
The proposed Resolution reflects an increased level of settlement authority up to $25,000.
Within the $25,000 limit, claims of up to $5,000 could be settled by either the City Manager,
Human Resources Director or Risk Manager; claims between $5,001 - $10,000 could be settled
by consensus of the City Manager and the Human Resources Director or Risk Manager; claims
between $10,001 - $25,000 could be settled by consensus of the City Manager, City Attorney
and the Human Resources Director or Risk Manager. The settlement of claims over $25,000
would require City Council approval.
~v~~ ~~c~i~~
Kristi Recchia
Director of Human Resources
Attachment: Resolution 09-55
RESOULTION No. 09-55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, CLARIFYING THE AUTHORITY OF THE CITY MANAGER, THE CITY
ATTORNEY, THE HUMAN RESOURCES DIRECTOR, THE RISK MANAGER, AND THE
CITY COUNCIL TO SETTLE GENERAL AND AUTOMOBILE LIABILITY CLAIMS
WHEREAS, California Government Code Section 935.4, a portion of the California Tort
Claims Act, allows the City to authorize, by resolution, the delegation of authority to an
employee of a local public entity to allow, compromise and/or settle claims; and
WHEREAS, by City Council Resolution No. 04-24 passed on February 17, 2004, the
City Council authorized settlement authority in the amount of $10,000 for general and
automobile liability claims; and
WHEREAS, since that Resolution was adopted by the City Council, the position of Risk
Manager has been added under the direction of the Director of Human Resources, thereby
assuming responsibility for the administration of general and automobile liability claims
formerly handled by the Director of Finance; and
WHEREAS, the City Council desires to clarify the authority of the City Manager, City
Attorney, Human Resources Director and Risk Manager to settle such claims and to further
report on significant claims from time to time to the City Council; and
WHEREAS, it is desired to increase settlement authority to $25,000 in line with current-
day settlement authority standards.
NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
resolves, determines and orders as follows:
1. The City Manager, Human Resources Director or Risk Manager shall have the authority
to settle General and Automobile Liability Claims ("Claims") up to and including the
amount of Five Thousand Dollars ($5,000.00).
2. The City Manager and the Human Resources Director or Risk Manager, by consensus,
shall have the authority to settle Claims in the amount of $5,001.00 up to, and including
$10,000.00.
3. The City Manager, City Attorney and the Human Resources Director or Risk Manager,
by consensus, shall have the authority to settle Claims in the amount of $10,001.00 up to,
and including $25,000.00.
4. The settlement of Claims in excess of $25,000.00 shall be approved or authorized by the
City Council.
5. The City Manager, City Attorney, Human Resources Director or Risk Manager shall
report periodically to the City Council on Claims that exceed or are estimated to exceed
$100,000.00
6. This City Council Resolution No. 09-55 supersedes City Council Resolution No. 04-24.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on
the 15th day of September, 2009.
DOUG DAVERT, MAYOR
ATTEST:
PAMELA STOKER
CITY CLERK