RES-8966 Establishing Guidelines Pertaining to Administration and Settlement of Claims Against the CityRESOLUTION NO. 8966
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE REPEALING RESOLUTION NOS.
4527 AND 5620 AND ALL AMENDMENTS THERETO
AND ESTABLISHING NEW GUIDELINES PERTAIN-
ING TO THE ADMINISTRATION, INVESTIGATION,
ALLOWANCE, COMPROMISE, AND SETTLEMENT
OF OCCURRENCES INVOLVING CIVIL LIABILITY
TO THE CITY,
WHEREAS, Government Code Sections 935.2 and 935.4 prohibit the City
Council from delegating to an insurance carrier or claims administrator the authority to
allow, compromise, or settle claims insofar as the allowance, compromise or settlement
would involve the payment by the City of all or part of the risk retention level; and
WHEREAS, the City of Orange liability insurance policies now contain a
specific risk retention level (deductible) of$350,000 per occurrence; and
WHEREAS, pursuant to Government Code Section 935.2, the City Council
may establish a claims settlement committee of at least three employees and authorizes
that settlement committee to allow, compromise, settle or make recommendations of
settlement to the City Council; and
WHEREAS, pursuant to Government Code Section 935.4, the City Council
may authorize an employee to allow, compromise, or settle claims against the City of
Orange.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange that all liability claims filed against the City of Orange are to be resolved in the
following manner when the risk of loss arising from the claim is not insured by the
Insurance carner:
Section I:
The Risk Manager, with the concurrence of the City Attorney, is authorized to
allow, compromise or settle all property damage claims for which the City of Orange is
not insured by an insurance carrier if the amount to be paid by the City pursuant to
such allowance, compromise or settlement does not exceed $2,000.
In the event these officials are unable to agree, such claim shall be referred to
the City Manager for appropriate action.
Section II:
The City Attorney or hislher designee is authorized to allow, compromise, or
settle all liability claims including personal injury and property damage for which the
City of Orange is not insured by an insurance carrier up to and including $5,000.
Section III:
The City Attorney or hislher designee and the City Manager or hislher designee
are authorized to allow, compromise, or settle all liability claims including personal
injury and property damage for which the City of Orange is not insured by an
insurance carrier up to and including $15,000.
In the event these officials are unable to agree, such claim shall be referred to
the City Council for appropriate action.
Section IV:
A Claims Settlement Committee is hereby established and authorized to allow,
compromise, or settle all liability claims for which the City of Orange is not insured by
an insurance carrier if the amount to be paid by the City pursuant to such allowance,
compromise, or settlement does not exceed $30,000. The Claims Settlement
Committee shall be composed of the City Attorney or hislher designee, the City
Manager or hislher designee, the Finance Director or his/her designee, the Risk
Manager, and an authorized employee of the department to which the claim is made
against.
In the event these officials are unable to agree, such claim shall be referred to
the City Council for appropriate action.
Section V:
In situations where there is in existence a liability insurance policy containing a
risk retention level, and the insurance carrier proposes the allowance, compromise, or
settlement of a claim the Claims Settlement Committee is hereby authorized to accept,
reject, or modifY that allowance, compromise, or settlement to the extent it involves
payment by the City of all or part of the risk retention level up to and including
30,000.
In the event these officials are unable to agree, such claim shall be referred to
the City Council for appropriate action.
R"so.No.8966
2
Section VI:
Upon written order of the City Attorney or hislher designee, with the
concurrence with the above, the Finance Director or hislher designee shall cause a
warrant to be issued in the amount for which a claim has been investigated, allowed,
compromised and settled.
ADOPTED this 23rd day of June 1998.
J:-
ATTEST:J~.
o,*
AcdC City Clerk
of the ty of Orange I hereby
certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at a regular meeting thereof held on the 23rd day of
June , 1998, by the following vote:AYES: COUNCIL
MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES: COUNCIL
MEMBERS: NONE ABSENT: COUNCIL
MEMBERS: NONE ABSTAIN: COUNCIL
MEMBERS: NONE WWW:ajj
Reso.No.8966 3