Susana Alcala Wood, City Attorney Jorge Oseg uera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00756 April 19, 2022 Consent Item 03
T
itle: Granting Settlement Authority for Certain Workers’ Compensation and Litigation Matters, and Rescinding Resolution 2009-229
Loc
ation: Citywide
R
ecommendation: Adopt a Resolution to grant settlement authority for certain workers’ compensation and litigation matters and rescinding Resolution 2009-229.
C
ontact: Andrea Velasquez, Supervising Senior Deputy City Attorney, (916) 808-5346, [email protected], City Attorney
P
resenter: None
A
ttachments:
1-Description/Analysis
2-Settlement Resolution – Clean Copy
3-Settlement Resolution - Redline
Description/Analysis
I
ssue Detail: Staff is seeking City Council approval to revise current settlement authority parameters for litigation and claims to include types not addressed in the current resolution. The proposed new resolution would include settlement authority parameters for cases affirmatively brought by the City, cases in which the City is a plaintiff or similarly situated party, and for those matters brought against the City outside of matters monitored by the Risk Manager.
P
olicy Considerations: In cases or claims where the City is a plaintiff or defendant, it is necessary that the authority to resolve litigation be spelled out accurately and clearly to facilitate litigation resolution.
E
conomic Impacts: Not applicable.
E
nvironmental Considerations: Administrative activity that will not result in direct or indirect physical changes in the environment and is not a proper subject to CEQA review. CEQA Guidelines section 15378(b)(5).
S
ustainability: Not Applicable.
C
ommission/Committee Action: Not Applicable.
R
ationale for Recommendation: Obtain clear direction on litigation resolution for matters not monitored or controlled by Risk Management.
Fi
nancial Considerations: This action does not have an impact, but future impacts depend on each case. Sufficient resources are available in the Risk Fund (Fund 6502) and the Workers’ Compensation Fund (Fund 6504). Each year these funding requirements are adjusted based on a cost allocation study by Bickmore, the City’s insurance actuarial consultant.
L
ocal Business Enterprise (LBE): Not Applicable
1 Resolution 2022-
#######
Date
RESOLUTION NO. ___________
Adopted by the Sacramento City Council
Date
GRANTING SETTLEMENT AUTHORITY FOR CERTAIN WORKERS’ COMPENSATION AND LITIGATION MATTERS, AND RESCINDING RESOLUTION 2009-229
BACKGROUND
A. Resolution 2009-229 granted the following settlement authority:
1. Workers' compensation cases.
a. ≤$25,000 – Workers’ Compensation Claims Manager and Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Workers' Compensation Claims Committee
2. Tort claims.
a. ≤$25,000 – Workers’ Compensation Claims Manager and Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Tort Claims Committee
B. This purpose of this r esolution is to expand the authority previously provided by Resolution 2009-229 by granting settlement authority for all pre-litigation and litigation matters, including risk cases and non-risk cases , whether the City is a plaintiff, petitioner, defendant, respondent, or other type of participant in the matter. “Risk cases” include all claims and cases that are covered by any of the City’s excess insurance policies, most commonly those involving personal injury and property damage. “Non- risk cases” are all claims and cases that are not risk cases (e.g., qui tam, class action, writ proceedings, and contracts ). This resolution also renames the Tort Claims Committee the Litigation Resolution Committee and rescinds Resolution 2009-229.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Resolution 2009-229 is rescinded in its entirety.
Section 2. A committee to be known as the Litigation Resolution Committee is hereby established, to be comprised of: (1) the Risk Manager; (2) the City Manager or designee; and (3) the City Attorney or designee.
Section 3. Settlement authority for workers’ compensation claims and cases is hereby granted as follows:
a. ≤$25,000 – Workers’ Compensation Claims Manager or Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Workers' Compensation Claims Committee Section 4. For risk cases in which the City is a defendant, respondent, or similarly situated party, settlement authority is hereby granted as follows:
a. ≤$25,000 per individual party or claimant - Risk Manager b. >$25,000 to $50,000 per individual party or claimant – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 per individual party or claimant – Litigation Resolution Committee
Section 5. For non-risk cases in which the City is a defendant, respondent, or similarly situated party, settlement authority is hereby granted as follows:
a. ≤$25,000 per individual party or claimant – City Manager (or designee) b. >$25,000 to $50,000 per individual party or claimant – City Manager (or designee), with concurrence of the City Attorney (or designee) c. >$50,000 to $100,000 per individual party or claimant – Litigation Resolution Committee
Section 6: For litigation matters in which the City is a claimant, plaintiff, petitioner, or similarly situated party, authority is hereby granted as follows:
a. The City Attorney, in consultation with the City Manager , is authorized to determine whether or not the subject matter of a claim or litigation involves issues that are routine in nature as opposed to presenting sensitive issues of policy; and
b. If the City Attorney and City Manager determine that the subject matter involves issues that are routine in n ature and do not present sensitive issues of policy, then settlement authority is hereby granted as follows:
i. < $50,000 – City Manager (or designee)
ii. > $50,000 to $250,000 - City Manager (or designee) with concurrence of the City Attorney (or designee).
Section 7. All settlement authority not expressly granted by this resolution is reserved to the City Council.
Adopted by the City of Sacramento City Council on ____________ by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Darryl Steinberg, Mayor
1 Resolution 2009-229 April 21, 2009
RE
SOLUTION NO.
Adopted by the Sacramento City Council
Date
GRANTING SETTLEMENT AUTHORITY FOR CERTAIN WORKERS' COMPENSATION A N D L I T I G A T I O N M A T T E R S , AND RESCINDING RESOLUTION 2009-229
BACKGROUND
A. Resolution 2009-229 granted the following settlement authority:
1. Workers' compensation cases.
a. ≤$25,000 – Workers’ Compensation Claims Manager and Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Workers' Compensation Claims Committee
2. Tort claims.
a. ≤$25,000 – Workers’ Compensation Claims Manager and Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Tort Claims Committee
B. This purpose of this resolution is to expand the authority previously provided by Resolution 2009-229 by granting settlement authority for all pre-litigation and litigation matters, including risk cases and non-risk cases, whether the City is a plaintiff, petitioner, defendant, respondent, or other type of participant in the matter. “Risk cases” include all claims and cases that are covered by any of the City’s excess insurance policies, most commonly those involving personal injury and property damage. “Non- risk cases” are all claims and cases that are not risk cases (e.g., qui tam, class action, writ proceedings, and contracts). This resolution also renames the Tort Claims Committee the Litigation Resolution Committee and rescinds Resolution 2009-229.
Deleted: 2009-229
Deleted: April 21, 2009¶
AUTHORIZING INCREASED
Deleted: IN TORT AND
Deleted: ¶
Deleted: CASES
Deleted: REPEALING
Deleted: 2005-729
Deleted: <#>Resolution 2005-729 provides
settlement authority to employees of the City of
Sacramento up to $25,000 for tort claims.
Resolution 2005-729 also created the Tort
Claims Committee which has authority to settle
tort claims up to $50,000. ¶
¶
B. Resolution 2005-729 also provides
settlement authority on workers' compensation
claims to the Workers' Compensation Manager
up to $15,000, and for the City
Manager, or
designee, up to $25,000. Resolution 2005-729
also created the Workers' Compensation
Claims Committee, which has authority to
settle workers' compensation claims up to
$50,000. ¶
C. This Resolution authorizes a more efficient
claims handling process by increasing the
settlement authority to the Workers'
Compensation Claims Committee to
$100,000, and for the Tort Claims Committee to
$100,000.The workers’ compensation manager
and Risk Manager may settle workers'
compensation cases up to $25,000, and the
Risk Manager may settle workers'
compensation cases up to $50,000 with the
concurrence of the City Attorney or designee.
The settlement of workers' compensation
claims in excess of $50,000 up to $100,000
would require approval by two of the three
members of the Workers' Compensation Claims
Committee. For tort claims, the Risk Manager
may settle cases up to $25,000, and may settle
cases up to $50,000 with the concurrence of the
City Attorney or designee. The settlement of tort
claims in excess of $50,000 and up to $100,000
would require approval by two of three members
of the Tort Claims Committee. This resolution
also repeals Resolution 2005-729.¶
BAS
ED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1: Resolution 2009-229 is rescinded in its
entirety.
Section 2. A committee to be known as the Litigation Resolution Committee is hereby established, to be comprised of: (1) the Risk Manager; (2) the City Manager or designee; and (3) the City Attorney or designee.
S
ection 3. Settlement authority for workers’ compensation claims and cases is hereby granted as follows:
a. ≤$25,000 – Workers’ Compensation Claims Manager or Risk Manager b. >$25,000 to $50,000 – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 – Workers' Compensation Claims Committee Section 4. For risk cases in which the City is a defendant, respondent, or similarly situated party, settlement authority is hereby granted as follows:
a. ≤$25,000 per individual party or claimant - Risk Manager b. >$25,000 to $50,000 per individual party or claimant – Risk Manager, with concurrence of the City Attorney (or designee)
c. >$50,000 to $100,000 per individual party or claimant – Litigation Resolution Committee
Section 5. For non-risk cases in which the City is a defendant, respondent, or similarly situated party, settlement authority is hereby granted as follows:
a. ≤$25,000 per individual party or claimant – City Manager (or designee) b. >$25,000 to $50,000 per individual party or claimant – City Manager (or designee), with concurrence of the City Attorney (or designee) c. >$50,000 to $100,000 per individual party or claimant – Litigation Resolution Committee
Section 6: For litigation matters in which the City is a claimant, plaintiff, petitioner, or similarly situated party, authority is hereby granted as follows:
a.
The City Attorney, in consultation with the City Manager, is authorized to determine whether or not the subject matter of a claim or litigation Moved (insertion) [1]
Deleted: 2005-729
Deleted: repealed
Deleted: ¶
¶
1. Moved up [1]: Resolution 2005-729 is repealed in
its entirety.
Deleted: Section 2: ¶
2: Both the Human Resources Manager
for workers' compensation and the Risk
Manager are authorized to approve on
behalf of the City of Sacramento the
settlement of workers' compensation
claims when such settlement does not
exceed $25,000. ¶
¶
3. The Risk Manager is authorized, with
the concurrence of the City Attorney or
designee, to approve on behalf of the
City of Sacramento the settlement of
workers compensation claims when
such settlement exceeds $25,000, but is
not greater than $50,000 per individual
party or claimant.¶
¶
4. A committee to be known as the
Workers' Compensation Claims
Committee is hereby¶
established, to be comprised of: (1)
the Risk Manager; (2) the City Manager
or designee; and (3) the City Attorney or
designee, and is authorized to approve
on behalf of the City of Sacramento the
settlement of workers' compensation
claims when such settlement exceeds
$50,000 but is not greater than
$100;000. ¶
5. The City Council shall approve the
settlement of workers’ compensation
claims when such settlement exceeds
$100,000.¶
¶
Section 3: ¶
¶
The Risk Manager is authorized to
approve on behalf of the City of
Sacramento the settlement of tort
claims when such settlement does not
exceed $25,000 per individual party or
claimant. ¶
¶
The Risk Manager is authorized, with
the concurrence of the City Attorney or
designee, to approve on behalf of the
City of Sacramento the settlement of
tort claims when such settlement
exceeds $25,000, but is not greater than
$50,000 per individual party or
claimant. ¶
¶
A committee to be known as the Tort
Claims Committee is hereby ... [1]
involves
issues that are routine in nature as opposed to presenting sensitive issues of policy; and
b.
If the City Attorney and City Manager determine that the subject matter involves issues that are routine in nature and do not present sensitive issues of policy, then settlement authority is hereby granted as follows:
i.
< $50,000 – City Manager (or designee)
ii.
> $50,000 to $250,000 - City Manager (or designee) with concurrence of the City Attorney (or designee).
S
ection 7. All settlement authority not expressly granted by this resolution is reserved to the City Council.
A
dopted by the City of Sacramento City Council on ____________ by the following vote:
Ayes:
Noe
s:
Abstain:
Absent:
Darryl Steinberg, Mayor
3Resolution 2009-229 April 21, 2009