RES-11501 CITY MANAGER AND CITY ATTORNEY AUTHORITY TO DENY CLAIMS AND INCREASE SETTLEMENT AMOUNTS - AMENDS RESOLUTION NO. 8966RESOLUTION NO. 11501
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE ADOPTED PURSUANT TO GOVERNMENT
CODE SECTION 935.4 OF THE CALIFORNIA
GOVERNMENT CLAIMS ACT ("ACT") AUTHORIZING
THE CITY MANAGER AND CITY ATTORNEY TO
PERFORM ADMINISTRATIVE FUNCTIONS UNDER
THE ACT AND AMENDING RESOLUTION NO. 8966 TO
INCREASE THE SETTLEMENT AUTHORITY AMOUNTS
FOR DESIGNATED EMPLOYEES FOR SETTLEMENT
OF CIVIL LIABILITY CLAIMS AGAINST THE CITY
WHEREAS,the California Government Claims Act, contained at California Government
Code Section 810, et seq. ("Act"),requires,in part,that claims for money or damages be presented
to the public entity to determine whether to accept or reject a claim; and
WHEREAS, Government Code Section 935.4 provides authority for a local public entity
to authorize,by ordinance or resolution, an employee of that local public entity to perform claims
procedures and functions required by the Act on behalf of the City; and
WHEREAS,those procedures and functions under the Act include, but are not limited to,
the authority to reject, return as insufficient, or return as untimely, any claims against the City, or
to otherwise make determinations concerning claims against the City, and to provide any notices
authorized under those statutes on behalf of the City ("Administrative Functions"); and
WHEREAS, it is the City's practice and policy that, after review, investigation and
formulation of a recommendation by the designated employee, claims made under the Act are
included on the agendas of regular City Council meetings and presented to the City Council for
their formal "denial" (i.e., rejection); and
WHEREAS, Government Code Section 935.4 further provides that a local public entity,
also by ordinance or resolution, may authorize an employee of the local public entity to resolve a
claim against the local public entity; and
WHEREAS, specifically regarding settlement of claims, Government Code Section 935.4
authorizes a public employee of a general law city to allow, compromise, or settle a claim against
the City for an amount not in excess of$50,000; and
WHEREAS, pursuant to Government Code Section 935.2 and 935.4, on June 23, 1998,
the City Council adopted Resolution No. 8966, establishing guidelines pertaining to the
administration, investigation, allowance, compromise, and settlement of civil liability claims; and
WHEREAS,Resolution No. 8966 provided settlement authority to the Risk Manager,City
Attorney, City Manager (and, as thereafter referenced in this Resolution, along with Finance
Director, to also include their designees) for claims not covered by an insurance carrier, and also
formally created, and provided authority to, a Claims Settlement Committee, which is to be
composed of the City Attorney, City Manager, Finance Director, Risk Manager and another
employee of the Department to which the claim is made; and
WHEREAS, Resolution No. 8966 was thereafter memorialized in Administrative
Regulation 1.3, providing, generally, settlement authority to the Risk Manager for property
damage claims up to and including $2,000, the City Attorney for personal injury and property
damage claims up to and including$5,000,the City Attorney and City Manager for personal injury
and property damage up to and including $15,000 and the Claims Settlement Committee for all
civil liability claims up to and including $30,000, with all civil liability claims above $30,000
requiring City Council approval ("Approved Levels"); and
WHEREAS, since 2004, there have been no changes made to Administrative Regulation
No. 1.3 regarding settlement of claims against the City although Government Code Section 935.4
authorizes settlement by an employee of the local public entity up to and including $50,000; and
WHEREAS, consideration by the City Council of each and every claim or action against
the City,including Administrative Functions, can be inefficient and prevent the City Council from
focusing on other matters of City business; and
WHEREAS, the City Council of the City of Orange hereby desires to: (1) delegate
authority to the City Manager and City Attorney to perform Administrative Functions, thereby
alleviating the necessity of placing certain matters before the City Council for action; and to (2)
increase the amounts delineated in the Approved Levels contained in Resolution No. 8966 and
Administrative Regulation 1.3 to allow, compromise or settle claims in specified amounts, up to
and including $50,000, commensurate with staff recommendations and the authority contained in
Government Code Section 935.4.
NOW, THEREFORE, BE IT RESOLVED that the City Council finds, resolves and
orders as follows:
SECTION 1. The above recitals are true and correct.
SECTION 2. Pursuant to Government Code Section 934.5, the City Council of the City
of Orange hereby authorizes the City Manager,with the concurrence of the City Attorney,or their
designees,to perform Administrative Functions on behalf of the City.
SECTION 3. The City Council of the City of Orange hereby increases the amount of
settlement authority for settlement of civil liability claims within the Approved Levels as follows:
Resolution No. 11501 2
Official Settlement Amount
Risk Manager, with concurrence of the Up to $5,000
City Attorney
City Attorney 5,001 to $15,000
City Manager, with concurrence of the $15,001 to $30,000
City Attorney
Claims Settlement Committee 30,001 to $50,000
City Council Over$50,000
SECTION 4. All provisions of Resolution No. 8966 not inconsistent with this Resolution
shall remain in full force and effect. Administrative Regulation No. 1.3 shall be amended to be
consistent with this Resolution.
SECTION 5. Nothing herein shall prevent the City Attorney and/or City Manager from
presenting any claim to the City Council, for denial or settlement, in their sole and absolute
discretion.
ADOPTED this 28th day of November 2023.
4Dane R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
APP OVED AS TO FORM:
Mike igliotta, City Attorney
Resolution No. 11501 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do 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 28th day of November 2023, by the following
vote:
AYES:COUNCILMEMBERS: Barrios, Dumitru, Tavoularis, Gyllenhammer,
Gutierrez, and Slater
NOES:COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Bilodeau
ABSTAIN: COUNCILMEMBERS: None
Pamela Coleman, City Clerk, City of Orange
Resolution No. 11501 4