Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: September 27, 2022
SUBJECT: RESOLUTION ESTABLISHING A POLICY WHICH DELEGATES
TORT LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO
THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams
RECOMMENDED ACTION
City Council:
1. Adopt a resolution authorizing the City of Santa Clarita to delegate tort liability claims handling responsibilities to the California Joint Powers Insurance Authority.
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) is a California Joint Powers Insurance Authority (CJPIA) member for insurance coverage. The CJPIA provides the City’s required insurance coverages in addition to services to support the City in liability/tort insurance, safety initiatives, and the overall claims process. While the City works closely with CJPIA on various aspects of a claim, it is the City who is ultimately responsible for making the final claim rejection and settlement determinations.
When a claim is submitted, City staff forwards the claim to CJPIA and Carl Warren & Company, the third-party administrator that assists member agencies with their general liability/tort insurance claims; resulting in a multi-party investigation to determine liability.
After analysis of all pertinent facts, the City determines to reject or settle the claim. Upon doing so, the City and Carl Warren independently send a findings letter to the claimant with the City’s decision. The receival of two notices is confusing to the claimants. In an effort to reduce confusion and inefficient duplication of efforts, City staff recommend delegating the
responsibility of claim notices, such as finding letters and other notices, to Carl Warren.
By adopting the resolution, the City would delegate the preparation of these notification letters solely to Carl Warren, resulting in a more streamlined claims communication process. Carl Warren would mail notifications directly to claimants and forward electronic copies to the City for recordkeeping. For reference, most of the 120 CJPIA member agencies currently use Carl Warren to disseminate all claimant notices on their behalf.
ALTERNATIVE ACTION
Other direction as determined by the City Council.
FISCAL IMPACT
There is no impact to the General Fund associated with this action.
ATTACHMENTS
Resolution Approving the Delegation of Tort Liability Claims Handling