HomeMy WebLinkAboutRes 2017-25 - Tort Liability Claims RESOLUTION NO. 2017-25
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: ADOPTION OF RESOLUTION NO. 2017-25, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALM DESERT, DELEGATING
TORT LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA), AS
AUTHORIZED BY GOVERNMENT CODE SECTIONS 910, ET SEQ.
SUBMITTED BY: Stephen Y. Aryan, Risk Manager
Rachelle D. Klassen, City Clerk
DATE: March 23, 2017
CONTENTS: Resolution No. 2017-25
Recommendation
Waive further reading and adopt Resolution No. 2017-25.
Strategic Plan
This item does not have a direct correlation to the Palm Desert Strategic Plan but still results
in improved efficiencies in the way staff conducts its review of claims made against the City
and their ultimate disposition.
Background
The California Joint Powers Insurance Authority (CJPIA) was established in 1978 for the
purpose of providing liability protection from losses and lawsuits for its members. Currently,
CJPIA is one of the largest municipal self-insurance pools in the state with over 100
participating members, including the City of Palm Desert since 1995.
As a member, the City participates in the CJPIA's Liability Protection Program and has
delegated authority to them to investigate, defend against, and take action to reject or pay all
claims, settlements, and final judgments against the City. The City has no legal authority to
overturn decisions made by CJPIA on the City's behalf but is still actively engaged in the
claims process and resolution. The City Clerk, Risk Manager, and City Attorney review each
claim when received and work closely with CJPIA's third-party administrator, Carl Warren &
Company, throughout the process as follows:
1. Claims are presented to the City Clerk.
2. City Clerk forwards claims to Carl Warren & Company, and they review each one on
its merits.
Staff Report: Resolution No 2017-25 - CJPIA Claims Administration
March 23, 2017
Page 2 of 3
3. Carl Warren & Company contacts the City with the requested action based upon
findings of their review.
4. If it is determined that a claim should be rejected, the claim is either presented to the
City Manager (Palm Desert Municipal Code Section 3.14.041 — authority up to the
jurisdictional limit of Small Claims Court) or City Council for action:
a. City Manager or City Council can take no action. The claim will then be deemed
rejected by operation of law 45 days after it was first presented. Under this
scenario, the time period in which a lawsuit may be filed is two years from the
date of the occurrence; or
b. City Manager can reject the Claim or City Council can reject the claim at a
public meeting, followed by sending written notice of the rejection. Under this
scenario, the time period in which a claimant may file a lawsuit is reduced to six
months following the resection.
5. Following City Manager or City Council rejection, the City Clerk notifies claimant of the
outcome.
6. If it is determined that a claim has merit, the settlement would be processed
administratively by the CJPIA through Carl Warren & Company. Based on value of the
claim, the City Council may/may not be consulted prior to final disposition.
An alternative to the City's current process for claims action communication through the
City Clerk's Office is the assignment of claims handling to CJPIA. Doing so requires approval
by City Council via resolution, pursuant to Government Code Sections 910, et seq. At this
time, 75 of the CJPIA's 115 members utilize this process.
Delegation of claims administration would not change the process of accepting claims
through the City Clerk's office. The City would continue to receive Claims Status Reports,
recommendations for claims resolution, and updates on any claims in litigation. The City
Clerk, Risk Manager, and City Attorney would also continue to work closely with Carl Warren
and Company throughout the investigation process.
This change to the communication process, however, will eliminate the requirement to take
recommendations for rejection of claims to the City Council, and improve efficiency in the City
Clerk's Office by eliminating staff time spent serving as claimant communication intermediary.
Staff respectfully recommends that the City Council adopt a resolution delegating tort liability
claim handling responsibilities to the CJPIA, as authorized by Government Codes Sections
910, et seq. This recommendation follows a review of both the current practice and the
impacts of the recommended change, concluding that delegation of claims handling may be
accomplished with the following results:
• Maintaining the same level of claims communication between the CJPIA and the City.
Staff Report: Resolution No 2017-25 - CJPIA Claims Administration
March 23, 2017
Page 3 of 3
• Maintaining the City's participation in the claims process through active involvement by
the City Clerk, Risk Manager, and City Attorney.
• Improving efficiencies in the City Clerk's office.
FISCAL IMPACT
The proposed delegation of liability claims handling will have no direct fiscal impact, but will
save staff hours spent handling this responsibility.
Submitted by:
Steph n Y. Aryan, is anager
Rac elle D. Klassen, City erk
Reviewed: - _
Robe W. Hargre v s, City ttorney
Approved:
Lauri Aylaian, City Manager
RESOLUTION NO. 2017- 25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, DELEGATING TORT LIABILITY CLAIMS
HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY (CJPIA), AS AUTHORIZED BY GOVERNMENT
CODE SECTIONS 910, ET SEQ.
WHEREAS, The City of Palm Desert is a member of the California Joint Powers
Insurance Authority (California JPIA), and pursuant to Government Code sections 990.4,
et seq. and 6500 et seq., pools its self-insured liability claims and losses with other
California JPIA members under a Memorandum of Coverage; and
WHEREAS, the Joint Powers Agreement creating the California JPIA authorizes it
to exercise powers common to members and appropriate to defend and indemnify
members from liability claims under the Memorandum of Coverage.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF PALM DESERT HEREBY FINDS, DETERMINES, AND ORDERS, AS
FOLLOWS:
SECTION 1. The City of Palm Desert delegates to the California JPIA authority to
act on its behalf pursuant to Government Code sections 910, et seq. to accept,
reject, return as insufficient, or return as untimely any claims against it, and to
provide any notices authorized under those statutes on behalf of the City of
Palm Desert.
SECTION 2. This Resolution shall become effective immediately upon its adoption.
SECTION 3. The City Clerk of the City of Palm Desert shall certify to the adoption
of this Resolution.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Palm Desert, California, at its regular meeting held on the 23rd day of March, 2017, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAN C. HARNIK, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA