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HomeMy WebLinkAboutStaff Report 4.D 03/07/2016Agenda Item #4.D DATE: March 7, 2016 TO: Honorable Mayor and Members of the City Council through City Manag FROM: Eric W. Danly, City Attorney SUBJECT: Introduction of Ordinance Amending Section 1. 18.020 of the Petaluma Municipal Code to Increase the City Manager's Self -Insured Retention Program Claim Settlement Authority to Cover Claims and Disputes Involving the City in Amounts of up to $50,000 RECOMMENDATION It is recommended that the City Council introduce the attached Ordinance Amending Section 1. 18.020 of the Petaluma Municipal Code to Increase the City Manager's Self -Insured Retention, Program Claim Settlement Authority to cover claims and disputes involving the City in amounts of up to $50,000. BACKGROUND The City of Petaluma has adopted a Self -Insured Retention Program for its liability and property damage insurance. On February 20, 1990, the City Council adopted Resolution No. 90-52 delegating authority to the City Manager to resolve disputes involving the City for amounts up to $10,000 in accordance with California Government Code section 935.4. In 2003 the City Council adopted Ordinance 2169 N.C.S, codified as Chapter 1.18 of the Petaluma Municipal Code entitled "Claims Against the City" governing treatment of claims against the City. On April 15, 2004, the City Council adopted Ordinance No. 2177 N.C.S. amending section 1.18.020 of Chapter 1.18 to authorize the City Manager to allow, compromise or settle claims against the City for amounts of up to $20,000 or less. DISCUSSION Section 935.4 of the California Government Code provides that legislative bodies of local government entities may by ordinance or resolution delegate to employees of the entity the authority to settle claims against the entity of up to $50,000. Under section 935.4, delegation to government entity employees authorizing settlement of claims in excess of $50,000 must be by charter. The City Manager's authority to settle claims involving the City has not been updated since April 15, 2004. Increasing the City Manager's settlement authority as permitted by law can assist the City Manager in resolving disputes involving the City while minimizing the City's costs of dispute resolution due to use of contract risk management services, in-house legal services, and outside legal counsel. FINANCIAL IMPACTS Although difficult to quantify, granting the City Manager increased settlement authority can help resolve claims involving the City and reduce dispute resolution costs related to contract risk management services, in-house legal services and outside legal counsel. ATTACHMENTS 1. Ordinance Amending Section 1.18.020 of the Petaluma Municipal Code to Increase the City Manager's Self -Insured Retention Program Claim Settlement Authority 2 ATTACHMENT 1 Ordinance No. 2016- N.C.S. of the City of Petaluma, California AMENDING SECTION 1.18.020 OF THE PETALUMA MUNICIPAL CODE TO INCREASE THE CITY MANAGER'S SELF-INSURED RETENTION PROGRAM CLAIM SETTLEMENT AUTHORITY WHEREAS, the City of Petaluma has adopted a Self -Insured Retention Program for its liability and property damage insurance; and, WHEREAS, California Government Code Section 935.4 provides that the legislative body of a local public entity may by ordinance or resolution authorize an employee to allow, compromise or settle claims against the entity if the amount to be paid pursuant to the allowance, compromise or settlement does not exceed $50,000; and WHEREAS, Government Code Section 935.4 further provides that upon the written order of public entity employees authorized to settle claims under that section, the auditor or other fiscal officer of the local public entity shall cause a warrant to be issued upon the treasury of the local public entity in the amount for which a claim has been allowed, compromised or settled; and WHEREAS, on February 20, 1990, the City Council of the City of Petaluma adopted Resolution No. 90-52 N.C.S. authorizing the City Manager to settle claims against the City up to a maximum amount of $10,000; and WHEREAS, in 2003 the City Council adopted Ordinance 2169 N.C.S, codified as Chapter 1.18 of the Petaluma Municipal Code entitled "Claims Against the City" governing treatment of claims against the City; and WHEREAS, on April 15, 2004, the City Council adopted Ordinance No. 2177 N.C.S. amending section 1. 18.020 of Chapter 1.18 of the Petaluma Municipal Code to authorize the City Manager to allow, compromise or settle claims against the City for amounts of up to $20,000 or less; and WHEREAS, it is in the interest of efficient and cost-effective operation of the City's Self -Insured Retention Program for the City Council to increase the value of claims that the City Manager may settle on behalf of the City so as to provide the City Manager the maximum ability to resolve disputes involving the City while minimizing the City's costs of dispute resolution due to use of contract risk management services, in-house legal services, and outside legal counsel. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Petaluma as follows: Section 1. Section 1.18.020 Amended. Section 1. 18.020 of the Petaluma Municipal Code is hereby amended to read as follows 1.18.020 Action by city. The city shall process and take action upon a claim submitted pursuant to this chapter, pursuant to the requirements of Chapters 1 and 2 of Part 3 of Division 3.6 of Title 1 of the Government Code, within forty-five days of its filing with the city clerk. If the city fails to do so, the demand or claim shall be deemed to have been rejected on the last day of the period within which the city was require to act. Action by the city shall otherwise be subject to the provisions of Section 912.4 of the Government Code. The city manager and city risk manager are authorized to perform these functions relating to consideration of claims. The city manager is authorized pursuant to Government Code Section 935.4 to allow, compromise or settle claims against the city if the amount to be paid pursuant to the allowance, compromise or settlement does not exceed $50,000.00. Upon the city manager's written order, the city's chief fiscal officer shall cause a warrant to be issued upon the city treasury in the amount for which a claim has been allowed, compromised or settled in accordance with the authority granted to the city manager pursuant to this section. Section 2. Resolution No. 90-52 N.C.S. Repealed. Resolution No. 90-52 N.C.S. adopted February 20, 1990, is hereby repealed in its entirety. Section 3. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 4. Publication. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. INTRODUCED and ordered posted/published this day of , 2016. ADOPTED this day of 2016 by the following vote: AYES: NOES: 4 ABSENT: ABSTAIN: David Glass, Mayor ATTEST: APPROVED AS TO FORM: Claire Cooper, City Clerk Eric Danly, City Attorney Agenda Item #5.A CITY OF PETALUMA, CALIFORNIA MEMORANDUM City Manager's Office, 11 English Street, Petaluma, CA 94952 (707) 778-4345 Fax (707) 778-4419 E-mail. cityingi@ci petaluina. ca. its DATE: March 7, 2016 TO: John C. Brown, City Manager FROM: Heather Hines, Planning Manager SUBJECT: Marina Apartments At the request of the applicant, the Marina Apartment item currently scheduled for the March 7th Council meeting has been continued to the April 4th Council agenda. The public hearing should be opened and the item continued to April 4th as notices were already mailed to the public.