HomeMy WebLinkAboutOrdinance 2826 N.C.S. 11/07/2022 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E
EFFECTIVE DATE
OF ORDINANCE ORDINANCE NO. 2826 N.C.S.
December 7, 2022
Introduced by:Dennis Pocekay Seconded by: Kevin McDonell
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING SECTION
1.18.020 OF THE PETALUMA MUNICIPAL CODE ENTITLED—"ACTION BY THE CITY" TO
AUTHORIZE THE CITY MANAGER TO DELEGATE HER AUTHORITY TO SETTLE CLAIMS
AGAINST THE CITY AND TO ESTABLISH CLAIMS SETTLEMENT AUTHORITY FOR THE RISK
MANAGER OR DESIGNEE REGARDING GOVERNMENT AND WORKERS' COMPENSATION
CLAIMS AGAINST CITY
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, on March 7, 2016, the Petaluma City Council adopted Ordinance No. 2573 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 $50,000 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 enable the Risk Manager or designee to settle claims on behalf of the City so as
to provide the Risk Manager or designee the ability to timely resolve disputes involving the City while minimizing
the City' s costs of dispute resolution due to use of staff time, in-house legal services, and outside legal counsel;
and
WHEREAS, the City of Petaluma has not established settlement authority for the Risk Manager or designee
to resolve personal injury and property damage claims against the City; and
Ordinance No. 2826 N.C.S. Page 1
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WHEREAS,this ordinance would establish settlement authority for the Risk Manager or the Risk Manager's
designee and allow the City Manager to delegate the City Manager's settlement authority; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing settlement authority for
claims does not meet CEQA's definition of a"project,"because the action does not have the potential for resulting
in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the
environment, and because the action constitutes organizational or administrative activities of governments that
will not result in direct or indirect physical changes in the environment; and
WHEREAS, if the action did constitute a "project" under CEQA the proposed action is exempt under the
common-sense exemption, CEQA Guidelines Section 15061(b)(3)because it can be seen with certainty that there
is no possibility that the proposed action could have a significant impact on the environment;
WHEREAS, on October 17, 2022, City Council considered the amendments and approved the proposed
amendments by a vote of 5-0 with two absent.
NOW, THEREFORE,be it ordained by the Council of the City of Petaluma, as follows:
Section 1. Findings The above recitals are hereby declared to be true and correct and are incorporated into this
ordinance as findings of the City Council.
Section 2. Exemption from CEQA The proposed action is exempt from the requirements of the California
Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing
settlement authority for claims does not meet CEQA's definition of a"project,"because the action does not have
the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment, and because the action constitutes organizational or administrative activities
of governments that will not result in direct or indirect physical changes in the environment. If this action did
constitute a"project,"it is exempt under the common-sense exemption in CEQA Guidelines Section 15061(b)(3)
because it can be seen with certainty that there is no possibility that the action could have a significant impact on
the environment.
Section 3. Amendment of Section 1.18.020 Section 1.18.020 of the Petaluma Municipal code is hereby amended
to read as follows underline=added text,stAkethrough= deleted text):
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 required 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 or the city manager's designee 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 fifty thousand dollars. The risk manager or the
risk manager's designee 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 ten thousand dollars. Upon the written order of
the city manager, the risk manager, or the designee of the city manager or the risk manager in accordance
with the authority granted in this section, 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.
Ordinance No. 2826 N.C.S. Page 2
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Section 6. 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 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 7. Effective Date This ordinance shall become effective thirty(30) days after the date of its adoption by
the City Council in accordance with Article XII, Section 76A of the Petaluma Charter.
Section 8. Repeal The City Council may repeal this ordinance by duly adopted resolution upon finding that the
conditions warranting the enactment of this ordinance no longer apply in the city.
Section 9. Posting/Publishing of Notice 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 other applicable law.
INTRODUCED and ordered published and posted this 17th day of October 2022 by the following vote:
Ayes: Barrett, Fischer, Healy, McDonnell, Pocekay
Noes: None
Abstain: None
Absent: Barnacle, King
ADOPTED this 7th day of November 2022 by the following vote:
Ayes: Barrett, Barnacle, Fischer, Healy, McDonnell, Pocekay
Noes: None
Abstain: None
Absent: King
FDocuSigned by:
fitSo, bayy ff
Teresa arrett, Mayor
ATTEST: APPROVED AS TO FORM:
DocuSigned by: DocuSigned by:
rou
Ken a Sawyer, CMC, City Clerk Eric Dan y, City Attorney
Ordinance No. 2826 N.C.S. Page 3