City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01671 10/7/2025
Adopt a Resolution Creating the Litigation Resolution Committee and Workers’ Compensation Claims Committee and Adopt a Resolution Granting Settlement Authority for Workers' Compensation and Litigation Matters
File ID: 2025-01671
Location: Citywide
Recommendation: 1) Adopt a Resolution rescinding Resolution No. 2022-0225 and creating the Litigation Resolution Committee and Workers’ Compensation Claims Committee and defining Risk and Non-Risk cases; and 2) adopt a Resolution granting Settlement Authority for Workers’ Compensation and Litigation Matters.
Contact: Patrick Flaherty, Risk Manager, (916) 808-8587, [email protected], Human Resources Department; Andrea Velasquez, Supervising Deputy City Attorney, (916) 808-5346, [email protected], City Attorney’s Office Presenter: Patrick Flaherty, Risk Manager, (916) 808-8587, [email protected], Human Resources Department
Attachments:
1-Description/Analysis
2-Resolution Adopting Litigation Resolution Committee and Workers’ Compensation Claims Committee
3-Resolution Granting Settlement Authority for Workers’ Compensation and Litigation Matters Description/Analysis
Issue Detail: Former resolutions provided for the creation of the Litigation Resolution Committee and Workers’ Compensation Claims Committee, defined Risk and Non-Risk cases and provided for settlement authority in one document. Each time settlement authority has been amended the former resolution has been rescinded and the committees have to be re-established.
These resolutions seek to separate the creation of the committees, and definition of Risk and Non- Risk cases from the settlement authority so that future changes to settlement authority can be done more clearly and succinctly without needing to rescind and then recreate the committees.
File ID: 2025-01671 10/7/2025
Council has requested that the committee’s settlement authority be increased from $100,000 to $250,000. These resolutions accomplish both of these requests.
Policy Considerations: The increase in settlement authority to the committees allows the City Council to delegate decision making to the committee and allows for less cases needing deliberation at closed session.
Economic Impacts: There are no economic impacts.
Rationale for Recommendation: In fiscal year 2025 Council heard 10 Workers’ Compensation matters in closed session. Applying the resolution which increases the settlement authority of the committee to $250,000, Council would only have had to hear 6 of these matters in closed session. In the same time period, Council heard 23 litigation matters. Applying the resolution which increases the settlement authority of the committee to $250,000, Council would only have had to hear 20.
Financial Considerations: Not applicable.
RESOLUTION NO. 2025-
Adopted by the Sacramento City Council
October 7, 2025
ESTABLISHING THE LITIGATION RESOLUTION COMMITTEE AND THE WORKERS’ COMPENSATION CLAIMS COMMITTEE, AND RESCINDING
RESOLUTION 2022-0225
BACKGROUND
A. Resolution 2022-0225 established the Litigation Resolution Committee and the Workers’ Compensation Claims Committee, granted settlement authority for certain litigation and workers’ compensation matters, and rescinded a prior resolution related to settlement authority.
B. From time to time, the City Council adjusts the scope and amount of settlement authority that it delegates to City staff and committees.
C. The City Council has determined that adopting one resolution to establish the Litigation Resolution Committee and Workers’ Compensation Committee and a separate resolution to specify the scope and amount of settlement authority that the City Council grants to City staff and committees promotes administrative efficiency and flexibility.
D. The purpose of this resolution is to establish the Litigation Resolution Committee and the Workers’ Compensation Claims Committee and to rescind Resolution 2022-0225.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Resolution 2022-0225 is hereby 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 the Litigation Resolution Committee and the Workers’ Compensation Claims Committee shall be set forth by resolution.
RESOLUTION NO. 2025-
Adopted by the Sacramento City Council
October 7, 2025
GRANTING SETTLEMENT AUTHORITY FOR CERTAIN LITIGATION AND WORKERS’ COMPENSATION MATTERS
BACKGROUND
A. Resolution 2022-0225 established the Litigation Resolution Committee and the Workers’ Compensation Claims Committee, granted settlement authority for certain litigation and workers’ compensation matters, and rescinded a prior resolution related to settlement authority.
B. From time to time, the City Council adjusts the scope and amount of settlement authority that it delegates to City staff and committees.
C. The City Council has determined that adopting one resolution to establish the Litigation Resolution Committee and Workers’ Compensation Committee and a separate resolution to specify the scope and amount of settlement authority that the City Council grants to City staff and committees promotes administrative efficiency and flexibility.
D. The purpose of this resolution is to grant settlement authority for certain litigation and workers’ compensation matters to the Litigation Resolution Committee, the Workers’ Compensation Claims Committee, and City staff.
E. The further purpose of this resolution is to increase the amount of settlement authority that the City Council grants to others.
F. For purposes of this resolution, “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, and “non-risk cases” are all claims and cases that are not risk cases (e.g., qui tam, class action, writ proceedings, and contracts).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. 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 $250,000 – Workers’ Compensation Claims Committee.
Section 2. Settlement authority for risk cases where the City is a defendant, respondent, or similarly situated party 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 City Attorney or designee;
c. >$50,000 to $250,000 per individual party or claimant – Litigation Resolution Committee.
Section 3. Settlement authority for non-risk cases where the City is a defendant, respondent, or similarly situated party 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 City Attorney or designee c. >$50,000 to $250,000 per individual party or claimant – Litigation Resolution Committee.
Section 4. Settlement authority for all claims and cases where the City is a plaintiff, claimant, petitioner, or similarly situated party is hereby granted as follows:
a. The City Attorney, in consultation with the City Manager, is authorized to determine whether the subject matter of a claim or litigation involves issues that are routine in nature as opposed to presenting sensitive issues of policy;
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 5. The City Manager may appoint a designee to exercise the authority granted to the Risk Manager under this resolution if the Risk Manager is not available to exercise the authority.
Section 6. All settlement authority not expressly granted by this resolution is reserved to the City Council.
Adopted by the City of Sacramento City Council on October 7, 2025, by the following vote: