TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Lisa Jenkins, Human Resources Director
Briza Morales, Risk Manager
SUBJECT:Title
Consideration of a Resolution to Increase the Liability Claim Settlement Authority of the City Manager (or Designee) from $25,000 to $50,000 (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 20-0119 INCREASING THE LIABILITY CLAIM SETTLEMENT AUTHORITY
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 20-0119 to increase the liability claim settlement authority of the City Manager from $25,000 to $50,000; authorize the City Manager to delegate such authority to a designee; and repeal all prior resolutions.
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FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
Since 1984, the City has contracted with a third party claims administrator (TPA) for its liability program. The TPA collaborates with the City's Risk Manager to evaluate, reject, return as insufficient or untimely, or make settlement recommendations on claims filed against the City. In February 1992, Council adopted Resolution No. 4881 authorizing the City Manager to allow, compromise, settle, or reject claims where the amount of such claim did not exceed $10,000. In July 1997, Council adopted Resolution No. 5342 amending Resolution No. 4881 to increase the settlement authority of the City Manager from $10,000 to $25,000.
In October 2012, Council adopted Resolution No. 12-6397 clarifying the policy delegating liability claims handling responsibilities and the City Manager's authority and repealing Resolution Nos. 4881 and 5342. Resolution No. 12-6397 authorized the Risk Manager or TPA to accept, reject, return as insufficient, return as untimely, any claims and late claims filed against the City. It further authorized the City Manager to allow, compromise a...
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