FOR THE COUNCIL MEETING OF SEPTEMBER 17, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Attorney Thomas T. Watson
BY: Risk Manager Mellissa Guerrero
SUBJECT: Adoption of a Resolution Authorizing the Increase in Contract and Settlement Authority for the City Manager, City Attorney , and Risk Manager
Description:
The City Council will consider an increase in contract and settlement authority for the City Manager, City Attorney, and Risk Manager.
Environmental Notice: The Activity is not a “Project” as defined under Section 15378(b) of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt Resolution authorizing contract and settlement authority for the City Manager, City Attorney, and Risk Manager.
BACKGROUND:
Under Resolution No. 2020 -18, the City Council granted the Risk Manager authority to settle claims against the City not to exceed $10,000, the Risk Manager and City Attorney to settle claims against the City not to exceed $50,000 and the City Attorney and City Manager to settle claims against the City not to exceed $100,000. For the expedient settlement of claims against the City, it is necessary that an increase in settlement and contract authority be adopted as claim values against the City have grown substantially.
DISCUSSION:
Pursuant to Government Code Section 935.4, the City Council may divest settleme nt authority in any one employee for claims received pursuant to the Government Claims Act in an amount not to exceed $50,000. The City Council can authorize a higher settlement amount for claims not governed by the Government Claims Act, or where settlements are approved by more than one single employee.
The proposed Resolution authorizes the following settlement authority:
2 1. $50,000 to the Risk Manager (or, during periods when that position is unfilled, an employee designated by the City Manager) to settle claims against the City of Santa Maria, including claims through the workers’ compensation system against the City of Santa Maria, not in excess of $50,000.
2. $100,000 to the Risk Manager (or, during periods when that position is unfilled, an employee designated by the City Manager), together with the City Attorney, to settle both claims and other legal liabilities, including claims through the workers' compensation system agains t the City of Santa Maria, not in excess of $100,000.
3. $175,000 to the City Ma nager, together with the City Attorney, to settle both claims and other legal liabilities, including claims through the workers' compensation system agains t the City of Santa Maria, not in excess of $175,000.
Alternative(s)
The City Council may maintain its current authority levels or suggest other increased or decreased levels of authority.
Currently, under Resolution No. 2020-18, the Risk Manager is authorized to settle claims against the City up to $10,000, the Risk Manager and the City Attorney are authorized to settle claims against the City, and other legal liabilities including workers’ compensation claims up to $50,000 and the City Manager and the City Attorney are authorized to settle claims against the City and other legal liabilities including workers’ compensation claims up to $100,000.
Keeping authority levels at the current values will not allev iate delays in the settlement process and will hinder the evolution of the claim’s management process.
Fiscal Considerations
The increase in settlement authority will allow the City to handle claims management and contracting processes more efficiently . Government claims, workers' compensation claims, and contracting amounts have all risen since the previous Resolution. Increasing authorities will lessen delay, and streamline staff time in the processing of settlements.
Impact to the Community
Increased settlement authority levels will streamline service delivery to internal and external customers.