HomeMy WebLinkAbout55C - RESO - LIABILITY CLAIMSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 19,2018
TITLE:
ADOPT A RESOLUTION AUTHORIZING
SETTLEMENT OF LIABILITY CLAIMS AND
LITIGATED MATTERS FOR UP TO $50,000
AND WORKER'S COMPENSATION
CLAIMS FOR UP TO $150,000 AND
REPEAL RESOLUTION NO. 2015-041
(STRATEGIC PLAN NO. 4, 1)
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RECOMMENDED ACTION
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CONTINUED TO
FILE NUMBER
Adopt a Resolution Authorizing settlement of liability claims and litigated matters for up to
$50,000 and workers compensation claims for up to $150,000 and repealing Resolution No.
2015-041.
DISCUSSION
Currently, the City of Santa Ana allows the Executive Director of Human Resources approval for
liability, workers compensation claims, and litigated matters in an amount not to exceed $5,000.
From $5,001 to $10,000 claims and litigated matters are authorized to be settled by the Executive
Director of Human Resources and the City Attorney. Between $10,001 and $25,000, claims and
litigated matters can be settled by the Executive Director of Human Resources, City Attorney and
City Manager.
The Human Resources Department conducted a study of Orange County cities and determined
that the City of Santa Ana's settlement authority was on the low end of what other cities
authorized for settlement without the need to go to the City Council for approval. In particular,
Huntington Beach, Fountain Valley and Anaheim authorize settlement of liability claims up to
$35,000. While, Newport Beach, Irvine, and Orange allow settlement of liability claims up to
$50,000. For workers compensation claims, Garden Grove and Irvine authorize settlement up to
$100,000; Newport Beach authorizes settlement up to $125,000; Huntington Beach up to
$150,000; Anaheim up to $175,000 and Orange up to $200,000.
55C-1
Adopt a Resolution Authorizing
Settlement of Claims and Litigated Matters
June 19, 2018
Page 2
In order to create efficiency and to streamline the claims process, the City Manager is
recommending an increase in settlement authority for liability claims and litigated matters from
$25,000 to $50,000. In addition, the City Manager is also asking for an increase in settlement
authority for workers compensation claims from $25,000 to $150,000. The settlement authority
approval would be as follows:
LiabilitV Claims and Litigated Matters
Settlement Amount
Ap_proval Reguired
$0-$25,000
Executive Director of Human
Resources
$25,001 - $50,000
City Manager, Executive
Director of Human Resources
and City Attorney
Workers Compensation Claims
Settlement Amount
I Approval Reguired
$0 - $150,000
City Manager, Executive Director of —Human
Resources and City Attorney
STRATEGIC PLAN ALIGNMENT
Approval of this items allows the City to meet Goal #4 — City Financial Stability, Objective #1
(Maintain a stable, efficient and transparent financial environment).
FISCAL IMPACT
There is n4 Fiscal Impact associated with this item.
Steven V. rXar�
Executive birector
Human Resources Department
55C-2
LAIR — 06119/18
RESOLUTION NO. 2018 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING CITY STAFF TO SE17LE
LIABILITY CLAIMS AND/OR PENDING LITIGATION
AGAINST THE CITY UP TO FIFTY THOUSAND DOLLARS
AND WORKERS' COMPENSATION CLAIMS FOR UP TO
ONE HUNDRED AND FIFTY THOUSAND DOLLARS AND
REPEALING RESOLUTION 2015-041
Whereas, California Government Code Section 900 et seq. establishes general
provisions regarding the processing of claims filed against cities, and authorizes cities to
adopt local procedures not in conflict with state law;
Whereas, California Government Code Section 935.4 allows this Council by
resolution to authorize an employee of the City to allow, compromise or settle a claim
against the City which would otherwise be filed and borne by the City Council;
Whereas, California Government Code section 949 allows this Council to
delegate its authority to its attorney or employee to compromise any pending action.
Whereas, the City of Santa Ana is permissibly self-insured for Workers'
Compensation pursuant to the provisions of Sections 3700 at secl. of the California
Labor Code;
Whereas, consideration by the City Council of every claim or action presented
can occupy an inordinate amount of time, preventing the City Council from considering
other important matters of City business; and
Whereas, a survey was conducted by Human Resources staff and it was
discovered that many Orange County cities delegate authority to settle litigation and
claims in excess of the twenty-five thousand dollars currently authorized by the City
Council.
Whereas, increasing the authority to settle claims and litigated matters would
increase efficiency and streamline internal processes.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF SANTA ANA
DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The Executive Director of Human Resources, or his/her designee, is
authorized to allow, compromise or settle liability claims and/or pending litigation (i.e.
lawsuits) against the City up to twenty-five thousand dollars ($25,000);
Resolution No. 2018 -XXX
55C-3 Page 1 of 3
Section 2. The Executive Director of Human Resources, City Attorney, and City
Manager or their respective designees are authorized to allow, compromise or settle
liability claims and/or pending litigation (i.e. lawsuits) against the City for twenty-five
thousand and one dollars ($25,001) up to fifty thousand dollars ($50,000);
Section 3. The Executive Director of Human Resources or his/her designee is
authorized to compromise or settle workers' compensation claims, including stipulated
judgments, liens resulting from claims, bills and invoices relating to management of the
claim, up to one hundred and fifty thousand dollars ($150,000-00) with the approval of
the City Attorney and City Manager or their respective designees.
Section 4. All settlements of claims, litigation and workers compensation claims
pursuant to this Resolution will be reported to the City Council on a quarterly basis in a
similar manner to the contracts for less than twenty-five ($25,000) approved by the City
Manager.
Section . Resolution No. 2015-041 is hereby repealed.
Section 6. This Resolution shall take effect immediately upon its adoption by the
City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this _ day of June, 2018.
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: 14-0-� R,,W,,,;—
Laura A. Rossini
Senior Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN:
NOT PRESENT:
Councilmembers
Councilmembers
Miguel A. Pulido
Mayor
Resolution No. 2018 -XXX
55C-4 Page 2 of 3
CERTIFICATE OF ATTESTATION AND ORIGINALITY
1, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the
City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2018 -XXX
55C-5 Page 3 of 3
55C-6