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Home My WebLink About05/01/1990, C-3 - THE CLAIMS SETTLEMENT AUTHORITY OF THE CITY ADMINISTRATIVE OFFICER SHOULD BE INCREASED. �II^,Illll�l�l�lu,lll MEETING DATE: �illhlll W �n�l InUI Clu7 OT Sa►t'1 LUIS OBISPO v ITEM :w2 COUNCIL AGENDA REPORT " : From. Jeffrey G. Jargons Prepared By: Robert S. Illman City Attorney senior Legal Assistant subject: The claims settlement authority of the City Administrative Officer should be increased. CAO Recommendation: Adopt the attached resolution increasing the City Administrative Officer's settlement authority for liability claims from $5,000 to $10,000. Discussion: In 1981, by Resolution No. 4502, the City Council authorized the settlement of claims by the City Administrative Officer. This settlement authority was established at the $5,000 level. (See Attachment 2) . _ In 1986, by Resolution No. 5946, the City Administrative Officer's settlement authority for workers' compensation claims was raised to $20,000. (See Attachment 3. ) A recent seminar attended by the City's Risk Management Analyst disclosed that the $20, 000 limit is now used by a majority of the cities in the State, except in this county. In our county, the cities of Atascadero and Morro Bay are presently involved in raising the settlement authority of their City Administrators to the $10,000.00 level. By increasing the CAO's settlement authority in liability claims, the Council will be taking into account the change in the economy which has occurred since 1981. This increase will not alter the procedure for claims; only the dollar amount will change to reflect the differing dollar value of 1981 and 1990. This change is concurred in by the City's Risk Manager (Personnel Director) and the City Attorney. significant Impact: There will be no significant environmental or cost impacts. There will be Council time saved as fewer closed sessions will be required to discuss claims settlements. Attachments: Proposed Resolution Resolution No. 4502 Resolution No. 5946 1 RESOLUTION NO. (1990 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO. INCREASING THE LIMITS OF THE CITY ADMINISTRATIVE OFFICER'S AUTHORITY TO MAKE SETTLEMENT PAYMENTS ON CLAIMS AGAINST THE CITY WHEREAS, by Resolution No. 4502, dated June 2, 1981, the Council of the City of San Luis Obispo has designated authority to the City Administrative officer to settle certain claims against the City up to the amount of Five Thousand Dollars ($5,000. 00) ; and WHEREAS, it is desirable to update the level of the City Administrative Officer's settlement authority for claims other than those under the California Workers' Compensation laws; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1: Upon investigation and determination by the CCCJPA adjustor for the City that the City appears to be partially or fully liable by reasons of an incident or accident resulting in a claim against the City, the Adjustor shall have the authority to enter into Settlement Agreements on claims that do not exceed One Thousand and no/100ths Dollars ($1,000.00) . This authority may be suspended or reduced at any time by the City Administrative Officer. SECTION 2: When a claim against the City exceeds One Thousand and no/100ths Dollars ($1,000. 00) and it is determined that the City appears to be partially or fully liable for the claim, the City Administrative Officer shall have the authority to enter into a Settlement Agreement to settle the claim up to the amount of Ten Thousand and no/100ths Dollars ($10, 000. 00) . Any such Settlement Agreement shall be signed by both the City Administrator and the City Attorney. SECTION 3: All proposed settlement of claims in which the staff cannot reach concurrences to settle as provided in 2 above, or which amount to Ten Thousand and no/100ths Dollars ($10, 000. 00) or more, shall be referred to the City Council for determination. attachment 1 G, On motion of seconded by and on the following roll call vote: Ayes: Noes: Absent: the foregoing Resolution was passed and adopted this day of 1990. MAYOR RON DUNIN ATTEST: City Clerk Pam Voges APPROVED: ity dministrative Officer 1 t orn Director of Finance clov, " Personnel Director C-3-3 ORESOLUTION NO. 4502 (19 81 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DESIGNATING AUTHORITY TO MAKE SETTLEMENT PAYMENTS ON CLAIMS AGAINST THE CITY WHEREAS, the City of San Luis Obispo is a member of the Central Coast Cities Joint Powers Agreement (CCCJPA) for insurance purposes; and WHEREAS, as a result, the City receives the services of an independent CCCJPA adjustor and investigative service and will defend claims filed; against it ; and WHER'EAS, for the expedient settlement of claims necessary to minimize costs of the City, it is necessary that the Staff and the Adjustor have specified authority on behalf of the City to immediately enter into Settlement Agreements without prior authorization of the Council; NOW, THEREFORE, BE IT RESOLVED by .the Council of the City of San Luis Obispo follows: SECTION 1. Upon investigation and determination by the CCCJPA adjustor for the City that the City appears to be partially or fully liable by reasons of an incident or accident resulting in a claim C% against the City, the Adjustor shall have the authority to enter into Settlement Agreements on claims that do not exceed One Thousand and no/100ths Dollars ($1,000.00) . This authority may be suspended or reduced at any time by the City Administrator. SECTION 2. When a claim against the City exceeds One Thousand and no/100ths Dollars ($1,000.00) and it is determined that the City appears to be partially or fully liable for the claim, the City Adminis— trator shall have the authority to enter into a Settlement Agreement to settle the claim up to the amount of Five Thousand and no/100ths Dollars ($5,000.00) . Any such Settlement Agreement shall be signed by both the City Administrator and the City Attorney. SECTION 3. All proposed settlument of claims in which the Staff cannot reach cocc.,rrenc•as to scrcle as provided in 2 above, or which amount to Five Thousand r.;:d 110/100tPis Dollars ($5,000.00) or more, shall be r : rred to the City Cu;incil for determination. Or r..otinn of Co!:I, l;,io,i Sc:rt:lu seconded by Councilman Dunin on tua folLowin: _cll c;:11 :•oto: .YES : Councilm�,:.:;•ars tla, Du::in 5ond, Dovey and Mayor Billig ES: ::one None C-3 attachment 2 R 4502 e , RESOLUTION NO. 4502 (19 81 Series) Page 2 foregoing Resolution was passed and adopted this 2nd day of June s `i 81 . MAY R MMELANIE C. BILLIG .,.--,-'EST: CTI 1G �f-:Y ERK PAMELA VOGE _y rative Orticer �, __y Attorney C_cy Finance irector 1 I RESOLUTION NO. 5946 (1986 SERIFS) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DESIGNATING AUTHORITY TO MAKE SETTLEMENT AGREEMENTS ON WORKERS' COMPENSATION CLAIMS AGAINST THE CITY WHEREAS, the City of San Luis Obispo is a member of the Central Coast Cities Joint Powers Agreement (CCCJPA) for workers' compensation purposes; and WHEREAS, as a result, the City receives the services of an independent CCCJPA workers' compensation administrator who will administer claims filed against it; and WHEREAS, for the expedient settlement of claims necessary to minimize costs of the City, it is necessary that the City staff and the independent administrator have specified authority on behalf of the City to immediately enter into Settlement Agreements without prior specific. authorization of the Council as to any particular case; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Upon investigation and determination by the CCCJPA workers' compensation administrator for the City that- the hatthe City may be liable under the California workers' compensation laws for injury or illness resulting in a claim against the City, the Administrator shall have the authority to enter into a Settlement Agreement that does not exceed Five Thousand and . no/100ths Dollars ($5000.00) . This authority may be suspended or reduced at any time by the City Administrative Officer. SECTION 2. When a possible settlement with the City exceeds Five Thousand and no/100ths Dollars ($5,000.00) and it is determined that the City, under the California Workers' Compensation laws, may be liable for. the claim, the City Administrative Officer or his/her designee shall have the authority to enter into a Settlement Agreement that does not exceed Twenty Thousand and no/100ths Dollars ($20,000.00) . �'�3 Resolution No. 5946 (1986 Series) Any such Settlement Agreement shall be approved by both the City Administrator and the City Attorney prior to being effective. SECTION 3. Any proposed settlement of a claim in which the staff cannot reach concurrences to settle as provided in 2 above, or which amountsto Twenty 'Thousand and no/100ths Dollars ($20,000.00) or more, shall be referred to the City Council for determination. On motion of Councilman Settle bonded by Councilwoman Rappa� and on the following roll call vote: AYES: Councilmembers Settle, Rappa, Dovey, Griffin and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 6th day of May , 1986. 40 7f::> ATTEST: ( ) CITY CLEPK PIMLA VOGE * * * * * * * * * * A.P City Administrative five City Att ney Personnel Director C-3-7