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HomeMy WebLinkAbout04 SETTLEMENT AUTHORITY - LIABILITY CLAIMS 02-17-04 Agenda Item 4 AGENDA REPORT Reviewed: ~ City Manager Finance Director MEETING DATE: February 17, 2004 TO: William A. Huston, City Manager FROM: Ronald A. Nault, Finance Director SUBJECT: Liability Claims Settlement Authority SUMMARY: The City has followed an administrative policy for settlement authority with the same limits as detailed in the proposed Resolution for many years. Resolution No. 04-24 will codify the appropriate limits as adopted by the City Council. RECOMMENDATION: That the City Council adopt Resolution No. 04-24 clarifying the authority of the City Manager, the City Attorney, the Finance Director and the City Council to settle general and automobile liability claims. FISCAL IMPACT: None. DISCUSSION: Resolution No. 04-24 simply formally adopts an administrative policy that has been followed by the City Manager, City Attorney and Finance Director for many years. The formal adoption of settlement authority is a practice recommended by the Board of the City's insurance JPA, the California Insurance Pool Authority (CIPA). ctor Attachment RAN :LiabilityClai msSettlementAuthorityResolutionO4-24StaffReport. doc 2 3 RESOLUTION NO. 04-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, CLARIFYING THE AUTHORITY OF THE CITY MANAGER, THE CITY ATTORNEY, THE FINANCE DIRECTOR, AND THE CITY COUNCIL TO SETTLE GENERAL AND AUTOMOBILE LIABILITY CLAIMS 4 5 WHEREAS, since 1991, the City has been following a Claims Administration Procedure for the review, presentation, and settlement of General and Automobile Liability Claims; and WHEREAS, the City Council desires to clarify the authority of the City Manager, City Attorney, and Finance Director to settle such claims in accordance with the Claims Administration Procedure and to further report on significant claims from time to time to the City Council. 6 7 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, resolves, determines and orders as follows: 8 9 1. The City Manager, City Attorney, and Finance Director shall have the authority to settle General and Automobile Liability Claims ("Claims") up to and including the amount of Ten Thousand Dollars ($10,000.00) as follows: (a) The Finance Director or City Manager may settle Claims up to, and including $1,500.00; 10 11 12 13 (b) The Finance Director and City Manager may settle Claims in the amount of $1,501.00 up to, and including $5,000.00; 14 15 2. The City Manager, City Attorney, and Finance Director, by consensus, may settle Claims in the amount of $5,001.00 up to, and including $10,000.00. The settlement of Claims in excess of $10,000.00 shall be approved or authorized by the City Council. (c) 16 17 The City Manager, City Attorney or Finance Director shall report periodically to the City Council on Claims that exceed or are estimated. to exceed $100,000.00. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 17th day of February, 2004. 3. 18 19 20 21 22 23 TONY KAWASHIMA, MAYOR ATTEST: 24 25 PAMELA STOKER CITY CLERK 26 2 3 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN 4 5 RESOLUTION NO. 04-24 6 7 Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution was passed and adopted at a regular meeting of the City Council held on the 17th day of February, 2004 by the following vote: 8 9 10 11 COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: 12 13 14 15 PAMELA STOKER City Clerk 16 17 18 19 20 21 22 23 24 25 26 RES: Resol ullon04-2 4Liabil IlyCla 1 msSettlementAuthorily .doc 2