Item #11
Date: August 18, 2026
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Resolution Supporting Comprehensive Public Agency Tort Reform Recommendation:
Adopt Resolution No. 2026- XX supporting comprehensive public agency tort reform and authorizing distribution of the Resolution as directed by the Mayor or City Manager.
Background:
The City has experienced increasing public liability costs and has discussed various aspects of California tort law in connection with claims and litigation involving the City. During those discussions, the City Attorney has advised the City Council regarding the fiscal impacts of California's current tort liability framework, including issues related to proportional liability. Based on those discussions and the City's own experience, individual members of the City Council have previously expressed concerns regarding the need for meaningful tort reform that appropriately balances accountability to injured parties with the protection of taxpayer resources and the City's ability to continue providing essential public services.
On May 20, 2026, a coalition consisting of the League of California Cities, California Association of Joint Powers Authorities (CAJPA), Rural County Representatives of California (RCRC), California School Boards Association, and numerous other statewide organizations submitted a letter to the California Legislature requesting comprehensive public agency tort reform.
On July 17, 2026, the League of California Cities and an expanded coalition issued updated correspondence to the Legislature reflecting significantly broader statewide support, including support from the City of Marysville. The correspondence references recently released CAJPA data indicating that known public entity liability exposure exceeds $7 billion, has tripled over the past seven years, and is projected to continue increasing significantly if legislative action is not taken.
The Mayor has requested that the matter be placed on the City Council agenda for formal consideration through adoption of a resolution.
Discussion:
The City has experienced firsthand the increasing financial impacts associated with public entity liability claims, litigation, and insurance costs. The coalition correspondence identifies these trends as a statewide issue affecting cities, counties, school districts, and other public agencies, resulting in fewer resources available for police and fire protection, transportation infrastructure, parks, education, and other essential public services.
Item #11
The coalition further states that its objective is not to reduce accountability or deny injured parties access to the courts, but rather to establish a more balanced liability system that preserves meaningful compensation while protecting taxpayers and the ability of public agencies to continue providing essential public services.
The coalition has identified three principal legislative priorities:
• Establish reasonable limits on damages in civil actions against public entities while preserving meaningful compensation for injured parties.
• Restore proportional (several) liability so public agencies are responsible only for damages attributable to their own conduct.
• Adopt heightened evidentiary and procedural standards for claims involving decades-old allegations where records and witnesses may no longer exist.
Adoption of the attached resolution would formally express the City Council's support for comprehensive public agency tort reform and the legislative objectives identified in the coalition correspondence.
Legal Review:
The attached resolution has been reviewed and approved as to form by the City Attorney.
Fiscal Impact:
There is no direct fiscal impact associated with adoption of the proposed resolution.
Should the Legislature adopt reforms that reduce future public entity liability costs, local governments could realize long-term savings and preserve additional resources for essential public services. The magnitude of any fiscal benefit would depend upon future legislation enacted by the California Legislature Environmental Review:
The action proposed in this item is administrative in nature and does not constitute a project under the California Environmental Quality Act (CEQA).
Attachments:
1) Resolution 2026-XX
2) Coalition Letter dated July 17, 2026
3) Coalition Letter dated May 20, 2026