HomeMy WebLinkAbout2009-12-22 Item 4 EF
LADE LSINORE
TM DREAM EXTREME
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: DECEMBER 22, 2009
SUBJECT: RESOLUTION ESTABLISHING A POLICY TO DELEGATE CLAIMS
HANDLING RESPONSIBILITY TO THE CALIFORNIA JPIA
Background
The City is a member of the California Joint Powers Insurance Authority (California
JPIA), which provides liability protection and claims administration to the City. When a
claim is filed with the City Clerk's office, it is immediately forwarded to the California
JPIA's claims administrator, Carl Warren & Company. Carl Warren then investigates
the claim. Following the investigation, Carl Warren may recommend that the California
JPIA settle the claim but often recommends that the City Council take formal action to
reject the claim.
In the case of a rejected claim, the City Clerk's office prepares an agenda package item
for Council consideration and all subsequent correspondence to the claimant.
The California JPIA has developed a new program that is intended to relieve cities of
much of the administrative function related to claims administration and free up the
Council and staff to perform more critical functions. This program is available at no
additional cost to the City.
Discussion
The Executive Committee of the California JPIA recently took action to provide
members with an additional alternative for the handling of liability claims filed against
them. The new alternative allows a city to delegate the entire claims handling
responsibility to the California JPIA, which would eliminate the need for the city staff or
the City Council to take action or send letters to claimants.
CC December 22, 2009 Item No. 4
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Resolution Delegating Liability Claims Handling Responsibility
December 22, 2009
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Under current practice, claims presented to the City Clerk are forwarded to Carl Warren
& Company. Carl Warren staff reviews each claim for its merits and contacts the City
with a requested action. When the recommendation is made that the claim should be
rejected, the City Council is then asked to formally reject the claim at a public meeting
and written notice of the rejection is thereafter sent to the claimant. By following this
formal procedure, the time period in which a claimant may file a lawsuit is reduced from
2 years to six months.
The California JPIA is now, however, proposing a new alternative to allow streamlining
of the process. Under the Tort Claims Act, a legislative body may, by Resolution,
delegate the claims handling responsibility in its entirety to the California JPIA. This
would allow the California JPIA to reject the claim and send notice of the rejection to the
claimant without City Council action.
The City Clerk estimates that claims administration related to rejected claims utilizes
approximately 8 hours per month of staff time. Additionally, the California JPIA has
confirmed that the delegation of claims administration to the California JPIA will not
result in additional cost to the City. Accordingly, staff believes that the proposed
delegation of responsibility will provide for more efficient claims administration, reduce
the volume of agenda materials to be reviewed and considered by the City Council, and
also free up staff time in the City Clerk's office to address higher priority matters.
Fiscal Impact
None.
Recommendation
Adopt Resolution No. 2009- establishing a Policy which delegates Tort Liability
Claims Handling Responsibilities to the California JPIA.
Prepared by: Debora Thomsen
City Clerk
Barbara Leibold
City Attorney
Approved by: Robert A. Brady
City Manager
Attachment: Resolution
CC December 22, 2009 Item No. 4
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RESOLUTION NO. 2009 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ESTABLISHING A POLICY WHICH
DELEGATES TORT LIABILITY CLAIMS HANDLING
RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY AS AUTHORIZED BY GOVERNMENT
CODE SECTIONS 910, ET SEQ.
WHEREAS, the City of Lake Elsinore is a member of the California Joint Powers
Insurance Authority (California JPIA), and pursuant to Government Code
Sections 990.4, et seq. and 6500, et seq. pools its self- insured liability claims and
losses with other California JPIA members under a Memorandum of Coverage; and
WHEREAS, the Joint Powers Agreement creating the California JPIA authorizes
it to exercise powers common to members and appropriate to defend and indemnify
members from liability claims under the Memorandum of Coverage.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. The City of Lake Elsinore delegates to California JPIA authority to
act on its behalf pursuant to Government Code Sections 910, et seq. to accept, reject,
return as insufficient, or return as untimely any claims against it, and to provide any
notices authorized under those statutes on behalf of the City of Lake Elsinore.
SECTION 2. The City Clerk shall certify to the passage and adoption of this
Resolution and the same shall thereupon take effect and be in force.
PASSED, APPROVED AND ADOPTED this 22 day of December, 2009.
Melissa A. Melendez, Mayor
ATTEST:
Debora Thomsen, City Clerk
APPROVED AS TO FORM:
Barbara Leibold, City Attorney
CC December 22, 2009 Item No. 4
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City Council Resolution No. 2009-
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STATE OF CALIFORNIA SS
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE
I, Debora Thomsen, City Clerk of the City of Lake Elsinore, California, hereby
certify that Resolution No. 2009- was adopted by the City Council of the City of
Lake Elsinore, California, at a regular meeting held on the 22 day of December 2009,
and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Debora Thomsen, CMC
City Clerk
CC December 22, 2009 Item No. 4
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