HomeMy WebLinkAboutStaff Report 3.C 03/21/2016DATE: March 21, 2016
Agenda Item #3.0
TO: Honorable Mayor and Membersf the City Council through City Manager
FROM: Eric W. Danly, City Attorney
SUBJECT: Adoption 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 adopt 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. Over time, the City Council has taken a series of actions delegating to the
City Manager authority to resolve claims and disputes involving the City. The City Manager's
current settlement authority was established on April 15, 2004, when the City Council adopted
Ordinance No. 2177 N.C.S. amending section 1. 18.020 of the Petaluma Municipal Code to
authorize the City Manager to settle claims against the City for amounts of up to $20,000.
At its March 7, 2016 meeting, the City Council voted 6/0, with Council Member Healy absent, to
introduce the attached ordinance amending Section 1. 18.020 of the Petaluma Municipal Code to
increase the City Manager's claim settlement authority to $50,000. If adopted by the Council,
the ordinance would increase the City Manager's settlement authority to the maximum permitted
under Section 935,4 of the Government Code,
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
Ordinance Amending Section 1. 18.020 of the Petaluma Municipal Code to Increase the City
Manager's Self -Insured Retention Program Claim Settlement Authority
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. -C ty 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:
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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 subje°&rto-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.
f
INTRODUCED and ordered posted/published this 7th day of March, 2016.
ADOPTED this day of 2016 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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ATTEST:
David Glass, Mayor
APPROVED AS TO FORM:
Claire Cooper, City Clerk Eric Danly, City Attorney