DATE: February 1, 2022
DEPARTMENT: OFFICE OF THE CITY ATTORNEY
FROM: CHRISTOPHER A. CALLIHAN, CITY ATTORNEY
TITLE: RESOLUTION DELEGATING SETTLEMENT AUTHORITY TO THE CITY ATTORNEY RECOMMENDATION MOTION:
It is recommended that the City Council approve a Resolution delegating authority to settle claims and pending actions against the City, including liability claims and Worker’s Compensation claims, that do not exceed fifty thousand dollars ($50,000) to the City Attorney.
RECOMMENDATION:
It is recommended that the City Council approve the Resolution delegating settlement authority to the City Attorney.
DISCUSSION:
Salinas Charter Section 16.1 provides that “The Council may, by ordinance or resolution, prescribe the procedure for filing, handling, disposing and dealing with ay other aspect of claims for damage against the City.” Similarly, Government Code Sections 935.4 allows the Council by resolution to authorize an employee of the City to allow, compromise, or settle a claim against the City which would otherwise be filled and borne by the City Council. And, Government Code Section 949 allows the Council to delegate its authority to its attorney or employee to compromise any pending action.
Since 1994, the level of settlement authority delegated with respect to pending claims and actions has remained unchanged at $20,000. The proposed change in delegated authority to increase the settlement authority to the City Attorney in the amount not to exceed $50,000 is consistent with the Salinas Charter and with state law and will reduce the need for Council to consider modest settlements as part of closed session. The City Council will still receive reports related to settled claims and the status of on-going matters.
CEQA CONSIDERATION:
The City Council’s consideration and approval of the Resolution is not a project subject to review under the California Environmental Quality Act because it can be seen with certainty that it will not have a significant effect or physical change to the environment. (CEQA Guidelines Section 15061(b)(3)).
STRATEGIC PLAN INITIATIVE:
The City Council’s approval of the Resolution is consistent with the City Council’s goal to improve the City’s operation efficiency, reduce expenditures, and make necessary investments in order to have long-term savings. (2020-2023 Goals) FISCAL AND SUSTAINABILITY IMPACT:
Increasing the settlement authority deleted from the City Council to the City Attorney is not expected to have an overall impact on the total amount budgeted and spent in defense and settlement of claims and lawsuits brought against the City. Increased efficiencies in resolving certain claims and lawsuits, without the need for occupying the City Council’s time, may result in some cost savings due to reductions in staff time associated with agenda preparation and attendance at closed sessions.
DEPARTMENTAL COORDINATIONS
The Resolution requires only the coordination of the City Attorney and the City Council. No other departments are affected by this Resolution.
ATTACHMENTS:
Resolution
RESOLUTION NO. ____________ (N.C.S.)
A RESOLUTION DELEGATING SETTLEMENT AUTHORITY
BE IT RESOLVED BY THE COUNCIL OF SALINAS that the City Council delegates to the City Attorney authority to allow, compromise, or settle claims, including liability claims and Worker’s Compensation claims, within settlement authority limits not to exceed fifty thousand dollars ($50,000).
PASSED AND APPROVED this 1st day of February 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________________
Patricia M. Barajas, City Clerk
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