City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01289 7/19/2022 Consent Item 02.
Title: Granting Settlement Authority for Certain Workers’ Compensation and Litigation Matters, and Rescinding Resolution 2022-0101
File ID: 2022-01289
Location: Citywide
Recommendation: Adopt a Resolution granting settlement authority for certain workers’ compensation and litigation matters and rescinding Resolution 2022-0101.
Contact: Andrea Velasquez, Supervising Senior Deputy City Attorney, (916) 808-5346, [email protected], City Attorney
Presenter: None.
Attachments:
1-Description/Analysis
2-Settlement Resolution
Description/Analysis
Issue Detail: Staff is seeking Council approval to revise current settlement authority parameters for litigation and claims. The proposed resolution is needed to ensure the Worker’s Compensation Committee is properly retained from prior amendments and for clarification of resolution authority between departments and divisions. The proposed resolution includes 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.
Policy 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.
Economic Impacts: Not applicable.
City of Sacramento Page 1 of 2
File ID: 2022-01289 7/19/2022 Consent Item 02.
Environmental 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).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Obtain clear direction on litigation resolution for matters not monitored or controlled by Risk Management.
Financial 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 funding requirements are adjusted based on a cost allocation study by Bickmore, the City’s insurance actuarial consultant.
Local Business Enterprise (LBE): Not applicable.
City of Sacramento Page 2 of 2
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 2022-0101
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. Resolution 2022-0101 rescinded Resolution 2009-229 in its entirety and established the Litigation Resolution Committee (formerly called the Tort Claims Committee). The resolution expanded the authority previously provided by granting settlement authority for all pre-litigation and litigation matters, including risk and non -risk case, whether the City is a plaintiff, petitioner, defendant, respondent, or other type of participant in the matter. Under Resolution 2022-0101, “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).
C. The purpose of this resolution is to re -establish the Workers’ Compensation Claims Committee previously established by Resolution 2009-229 but rescinded by Resolution 2022-0101.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Resolution 2022-0101 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. 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.
Section 4. 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 5. 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 c laimant – 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 6. 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 7: 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 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).
Section 8. 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