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HomeMy WebLinkAboutAGENDA REPORT 1991 1002 CC REG ITEM 08MITEM MOORPARK 799 Moorpark Avenue Moorpark, California 93021 TO: Honorable City Council �- FROM: Richard Hare, Deputy City Manager DATE: September 27, 1991 SUBJECT: Consider Granting Authority to Settle Liability Claims to the City Manager Introduction (805) 529 -6864 MOORPARK, CALIFORNIA When an individual suffers a property loss or injury and files a claim with the City for the damages or loss, the circumstances surrounding the loss or injury are reviewed to determine if there is any liability on the part of the City. In cases where there is liability, the staff requests that the City Council authorize the City Manager to settle the claim, iT the amount of the claim is one thousand dollars ($1,000) or less and a release from further claims is obtained from the claimant. Background The City of Moorpark self - insures its general and auto liability as a member of the Southern California ,Joint Powers Insurance Authority (SCJPIA). The first $20,000 of each claim is assessed directly against the City. A high frequency of small claims can result in high incurred costs which are established as reserve accounts until the claim is finally settled. During the period of processing a claim the City's operational funds are tied up in reserves for these claims. In some cases, the claims are minor and the City has some direct responsibility for the damage or injury. Delays of a few days can often increase the amount of the claim. In these circumstances it is to the City's advantage to settle the claim quickly with the claimant to avoid the expense of processing or litigating the claim and to avoid the aggravation of a, rinp leasant situation and the expansion of the claim PAUL W. LAWRASON JR BERNARDO M- PEREI SCOTT MONT(, )MER1 ROY E TALLEY ,R JOHN E WOZNIAK Mayor Mayor Pro Tem Councilmembe, Councilmember This suggestion has been discussed with the Budget & Finance Committee and they have recommended that the City Manager's settlement authority be limited to one thousand dollars ($1,000). Anything in excess of this amount would be referred to the City Council for authorization to settle. Within the insurance line item in Administrative Services approximately $3,000 would be available to fund these settlements. Claims which are referred to the SCJPIA for processing through their contractor Carl Warren & Co. are processed and settled pi rsuant to the provisions of our agreement with the Authority. If the City Council approves this settlement authority, the Deputy City Manager would perform these Duties as Risk Manager and make a recommendation to the City Manager for final approval. For internal control purposes, any war rants :issued directly by the City to a claimant would have to be s� i.gned by the Mayor or Mayor Pro Tempore and countersigned by t.ht City Treasurer. Any warrants issued would be listed on the war ~ant, register for that period and subject to the review of the fu,L 'ity Council. Under no circumstances would payment be m,Je to claimant without several levels of review. Recommendation Authorize the City Manager to settle general and automobile liability claims up to a maximum ,::)f one thousand dollars ($1,000) when it is the best interest of the City to do so and when a release from further claims has obtained from the claimant.