City Council Agenda Report
April 2, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Theresa Devoy, CMC, City Clerk
SUBJECT: RESOLUTION NO. 24-18 - CONSIDERATION OF DELEGATION OF CLAIM
DENIALS TO THE CITY'S INSURANCE AUTHORITY
Background:
The City is a member of the California Joint Powers Insurance Authority (CJPIA), and pools its self-insured liability claims and losses with other CJPIA members under a Memorandum of Coverage. As part of the Joint Powers Agreement that created the CJPIA, the CJPIA provides tort Liability Claims administration through an independent contractor on behalf of its members defending and indemnifying members from liability claims under the Memorandum of Coverage.
In the current process, claims are filed with the Office of the City Clerk which are sent to the Claims Administrator, the Claims Administrator thoroughly reviews and investigates the claims and makes a determination whether the City is or is not at fault. If it is determined that the City is not at fault, direction is provided to the City Clerk to place the claims on the agenda for City Council to authorize the denial of the claims pursuant to the Government Code.
Interest has been expressed to delegate the responsibility of claim denial to the CJPIA, as they do for some of their other members. California Government Code 935.4 provides for delegation of the authority to act on claims to a designee other than the government board by way of a resolution adopted by the City Council. Therefore, Resolution No. 24-18 has been prepared for consideration and if it is adopted this evening, the denial process would immediately be delegated to CJPIA. City Council would no longer receive agenda reports to deny the claims. All denial, insufficiency, and late notifications would be sent by the Claims Administrator to the claimants or their representatives rather than by the City.
Fiscal Impact:
N/A
City Council April 2, 2024
Resolution No. 24-18 – Delegating Claims Denial Process to CJPIA Page No. 2 8 2
1 Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommends City Council:
a. direct staff to continue utilizing the current claims administrative process; or b. adopt Resolution No. 24-18, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NORWALK, CALIFORNIA, ESTABLISHING A POLICY WHICH DELEGATES TORT
LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY AS AUTHORIZED BY GOVERNMENT CODE SECTION 910, ET SEQ.
Attachments:
Resolution No. 24-18