CITY OF LAGUNA NIGUEL
CITY CouncIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Justin J. Martin, Assistant City Manager
DATE: April 16, 2024
SUBJECT: Adoption of Resolution No. 2024-1469, Delegating Basic Tort Liability Claims Handling Responsibilities to the California Joint Powers Insurance Authority as Authorized by Government Code Sections 910, et Seq.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2024-1469, which delegates basic tort liability claims handling responsibilities to the California Joint Powers Insurance Authority as authorized by Government Code Sections 910, et seq.
BACKGROUND
The City of Laguna Niguel is currently a member agency of the California Joint Powers Insurance Authority (CJPIA). The CJPIA is comprised of more than 125 cities, joint powers authorities, and special districts throughout the state of California. The CJPIA provides the City insurance coverages and serves as a comprehensive solution for risk management and mitigation to create and maintain best practices in risk management.
The CJPIA currently provides the following services, programs, and coverages to the City of Laguna Niguel:
Risk Sharing Pools
• Worker's Compensation Coverage
• Liability Protection Program Coverage
Insured Programs
Crime Program
• Cyber Liability Program
• Pollution Program
• Property Program
• Special Event Program
Risk Management Resources and Training Programs
Loss Control Action Plan (LossCAP) Program
• Training Classes (Webinar and In-person)
Risk Assessments
• Property Schedule Audit
• Administrative policies related to compliance with regulatory requirements, risk management and workplace safety.
ANALYSIS
The City's Liability Protection Program Coverage includes $50 Million per occurrence for bodily injury, personal injury, and/or property damage to a third party resulting from a member activity, including automobile liability. Employment practices liability and public official liability are also covered exposures. The majority of all City claims received/submitted by the City fall under the Liability Protection Program.
Currently, CJPIA utilizes a third-party administrator to investigate and respond to all claims. CJPIA informs City staff of the claim status and City staff is then responsible for the administrative process of the tort liability claims, which includes preparing and mailing notices and correspondence to the claimant. If legal representation becomes necessary, the CJPIA's defense counsel handles the claim, minimizing additional legal expenses.
On average, the City typically receives 15 claims per year.
The subject resolution fully delegates the handling of tort liability claims to the CJPIA, eliminating the administrative procedures currently done by City staff. This change results in efficiency for the claim process and it reduces the number of hours and resources that City staff currently spends handling and administering the claim process with the CJPIA third-party administrator.
ALTERNATIVES CONSIDERED
The City Council may elect not to approve the subject resolution and provide staff direction to continue to handle tort liability claims with the CJPIA. This will not result in greater efficiency or use of City resources.
FISCAL REVIEW
There is no direct fiscal impact as a result of the adoption of Resolution No. 2024-1469.
LEGAL REVIEW
The City Attorney's Office has reviewed the resolution and has approved it as to form.
CONCLUSION
Staff recommends that the City Council adopt Resolution No. 2024-1469, which delegates basic tort liability claims handling responsibilities to the California Joint Powers Insurance Authority as authorized by Government Code Sections 910, et seq.
Lemon letine adi fee.
Tamara S. Letourneau
City Manager
Dorna Farhadi
Human Resources Manager
Attachments:
A. Resolution No. 2024-1469
ATTACHMENT A
Resolution No. 2024-1469
RESOLUTION NO. 2024-1469
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA
DELEGATING BASIC TORT LIABILITY CLAIMS HANDLING
RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY AS AUTHORIZED BY
GOVERNMENT CODE SECTIONS 910, ET SEQ.
WHEREAS, City of Laguna Niguel is a member of the California Joint Powers nsurance Authority (California JPIA), and pursuant to Government Code sections 990.- t seq. and 6500 et seq. pools its self-insured liability claims and losses with othe 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, BE IT RESOLVED AND ORDERED:
Section 1. The City of Laguna Niguel 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 Laguna Niguel.
Section 2. This Resolution shall become effective immediately upon its adoption.
Section 3. The City of Laguna Niguel City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 16th day of April, 2024.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin, City Clerk