Agenda Item No: 1.f
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: September 16, 2025
Submitted by: Rosanna Ramirez
From: Administrative Services
Subject:
Resolution to Adopt Amendments to the City of Placentia Policy and Procedures Manual, Claims Settlement Authorization Policy No. 407
Financial Impact:
Fiscal Impact:
None
Summary:
California Government Code Sections 935.4 and 949 permit the City Council, by resolution, to delegate authority to City Staff to pay, compromise, or settle pending claims. On August 19, 2008, the City Council adopted Resolution No. R-2008-74, which amended Policy No. 407 of the City's Policy and Procedures Manual to increase the City Administrator's claims settlement authority from $10,000 to $25,000. The purpose of this policy amendment was to create consistency with the City Administrator's purchasing authority at the time, which was also $25,000.
On December 7, 2021, the City Council adopted Ordinance No. O-2021-13, which amended Section 3.08.085 of the Placentia Municipal Code to increase the City Administrator's purchasing authority to $40,000. To remain consistent with the City Administrator's purchasing authority, Staff recommends amending Policy No. 407 to increase the City Administrator's claims settlement authority from $25,000 to $40,000. Staff also recommends amending Policy No. 407 to authorize the City Administrator to designate the Deputy City Administrator to settle claims up to $5,000. Under the amended policy, claim settlements greater than $40,000 will require approval from the City Council. The City Council will also continue to approve the annual budget allocated to claim and lawsuit settlements.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Adopt Resolution No. R-2025-47, a Resolution of the City Council of the City of Placentia, Approving and Adopting Amendments to the City of Placentia Policy and Procedures Manual, Claims Settlement Authorization Policy No. 407.
Strategic Plan Statement:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
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Discussion:
California Government Code Sections 935.4 and 949 permit the City Council, by resolution, to delegate authority to City Staff to pay, compromise, or settle pending claims. On August 19, 2008, the City Council adopted Resolution No. R-2008-74, which amended Policy No. 407 of the City's Policy and Procedures Manual to increase the City Administrator's claims settlement authority from $10,000 to $25,000. The purpose of this policy amendment was to create consistency with the City Administrator's purchasing authority at the time, which was also $25,000.
On December 7, 2021, the City Council adopted Ordinance No. O-2021-13, which amended Section 3.08.085 of the Placentia Municipal Code to increase the City Administrator's purchasing authority to $40,000. To remain consistent with the City Administrator's purchasing authority, Staff recommends amending Policy No. 407 to increase the City Administrator's claims settlement authority from $25,000 to $40,000. Staff also recommends amending Policy No. 407 to authorize the City Administrator to designate the Deputy City Administrator to settle claims up to $5,000.
These proposed policy amendments are consistent with state law and will reduce the need for City Council to consider modest settlements as part of closed session. In addition, delegating settlement authority to City Staff will help expedite the resolution of certain claims and save costs by limiting exposure to ongoing or potential litigation. Under the amended policy, claim settlements greater than $40,000 will require approval from the City Council. The City Council will also continue to approve the annual budget allocated to claim and lawsuit settlements.
Fiscal Impact Summary:
There is no fiscal impact to this action.
Attachments
Attachment 2 - Policy No. 407 Claims Settlement Authorization Resolution No. R-2025-47.docx
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INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 407
POLICY MANUAL CITY COUNCIL
CLAIMS SETTLEMENT AUTHORIZATION 11/87, 8/08, 2/10, 9/24
Printed on Recycled Paper
CLAIMS SETTLEMENT AUTHORIZATION
The City receives a number of claims each year. The City retains third-party administrators to investigate claims, make settlement recommendations, and provide related services.
This policy establishes a process by which claims can be settled in a timely manner.
There shall be three levels of authority for the settlement of claims. Generally, authority is established by the dollar amount of the settlement.
CLAIMS UNDER $5,000:
The City Administrator shall designate the Deputy City Administrator to authorize settlements for claims up to $5,000.
CLAIMS BETWEEN $5,001 AND $40,000:
The City Administrator shall be authorized to settle claims starting at $5,001 and up to $40,000.
CLAIMS OVER $40,000:
Claims greater than $40,000 shall not be settled without prior authorization from the City Council.
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Resolution R-2025-47
RESOLUTION NO. R-2025-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, APPROVING AND ADOPTING
AMENDMENTS TO THE CITY OF PLACENTIA POLICY
AND PROCEDURES MANUAL, CLAIMS SETTLEMENT
AUTHORIZATION POLICY NO. 407
A. Recitals
(i). The City of Placentia heretofore has adopted policies and procedures for the guidance of all elected and appointed officials, officers, and employees of the City as well as to establish policies and procedures for the implementation of provisions of the Placentia Municipal Code and provisions of state and federal law.
(ii). To remain consistent with the City Administrator’s purchasing authority of $40,000, Policy No. 407 shall be amended to increase the City Administrator’s claims settlement authority to $40,000. Policy No. 407 shall also be amended to authorize the City Administrator to designate the Deputy City Administrator to settle claims up to $5,000. Any claim settlements over $40,000 will require City Council approval.
(iii). A full, true, and correct copy of Policy No. 407, to be incorporated into the Policy and Procedures Manual of the City of Placentia, is attached hereto and by this reference incorporated herein.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., of this Resolution.
2. That Policy No. 407 hereby is amended and hereby incorporated into the Policy and Procedures Manual of the City of Placentia.
APPROVED and ADOPTED this 16th day of September 2025.
___________________________
Kevin Kirwin, Mayor
ATTEST:
___________________________
Robert S. McKinnell, City Clerk
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Resolution R-2025-47
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 16th day of September 2025 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
______________________________
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
________________________________
Christian L. Bettenhausen, City Attorney
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