1999 AGN NOV 02 I12 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF NOVEMBER 02,1999 TO: Honorable Mayor and City Council APPROVAL: Henry Garcia, City Manager V FROM: Dennis Morris, Human Resource Director Joanne Knowles, Risk/Safety Analyst SUBJECT: Adjustment of Settlement Authority: Liability Claims. DATE: October 18,1999 BACKGROUND: Currently the Human Resource Director has settlement authority of up to $7,500 to resolve liability claims that have been filed against the City and are determined to have adverse liability. This authority level, originally set, over fourteen years ago, allowed staff to expeditiously settle many of the smaller claims filed against the City. The quick resolution of many claims, such as those filed as a result of vehicle accidents, sewer overflow, and/or property damage reduces the cost and potential litigation involved in these claims. DISCUSSION/ANALYSIS: With the dramatic increase of property damage repair (e.g, automotive repair) and state mandated cost of state workers' compensation claims: medical costs, temporary, and permanent disability payments, staffs flexibility to expeditiously settle claims has decreased. We have calculated that the current value of the $7,500 settlement authority, when adjusted for CPI increase, since 1985, has increased forty-seven percent. In addition, the attached survey indicates that the average settlement authority of the fourteen ICRMA cities is $21,429. Purchasing authority for the City is $15,000, upon the approval of the department Director. Council authority is required only for items over the $15,000 limit. The serious nature of liability claims should justify the same amount of settlement authority. FINANCIAL IMPACT: None RECOMMENDATION: Staff recommends that the Human Resource Director have settlement authority on all liability claims up to the amount of $15,000. This amount will be used to expeditiously resolve adverse claims filed against the City. Staff requests City Council authority of the above request. Attachment Survey Reported by: Joanme Knowles, Risk/ Safety Analyst/Agenda, Liability Claims Item #12