HomeMy WebLinkAboutCC Resolution 13347 - Amending Administrative Policy Sections 7.F.2 and 7.BRESOLUTION NO. 13347
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING
CAMPBELL ADMINISTRATIVE POLICY 2.8 (INSURANCE CLAIMS PROCEDURES)
SECTIONS 7.F.2 (SETTLEMENT COSTS) AND 7.13 (DENIAL OF CLAIM) AND
SEVERAL OTHER MINOR SECTIONS
WHEREAS, in 1990, City established Administrative Policy 2.8 (Insurance Claims
Procedures) to assist in the claims process and provide appropriate guidelines for City,
Joint Powers Authority (JPA), and third -party administrator (TPA) staff to follow; and
WHEREAS, this policy has seen minor changes since first implemented; and
WHEREAS, to account for inflationary factors, improve operational efficiency, and align
to best practice within similar municipalities, the City's self -insured retention limit (SIR),
and recent changes to the City Manager's agreement award threshold, staff is
recommending several changes to Section 7.17.2 regarding claims settlement authority
levels in accordance with California Government Code (CGC) Section 935.4; and
WHEREAS, staff, per guidance from the Pooled Liability Assurance Network Joint
Powers Authority (PLAN JPA), is also recommending changes to Section 7.13 so as to
identify and clarify who in the City of Campbell is allowed to deny claims other than the
City Council in accordance with CGC Section 912.4;
WHEREAS, several other minor policy changes are also recommended by City staff; and
NOW, THEREFORE, BE IT RESOLVED that City Council approves amendments to
Campbell Administrative Policy 2.8 (Insurance Claims Procedures) Section 71.2
regarding claims settlement authority levels, Section 7.13 regarding delegation of authority
to deny claims, and several other minor revisions and sections shown in the attached
clean and modified version of the Policy, incorporated by reference.
PASSED AND ADOPTED this 18th day of November, 2025, by the following roll call vote:
AYES:
Councilmembers: Bybee, Hines, Scozzola, Furtado, Lopez
NOES:
Councilmembers: None
ABSENT:
Councilmembers: None
• •Lopez,•
ATTEST:
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Andrea Sand s, City Clerk
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Subject: INSURANCE CLAIMS PROCEDURES
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Date: November 18, 2025
To establish the responsibilities and procedures for handling general liability and
property damage claims against the City.
The City is a participant in the Pooled Liability Assurance Network (PLAN) Joint
Powers Authority (JPA) with other cities in the San Francisco Bay Area.
The City has elected to be self -insured for the first $100,000 for general liability and property
damage claims.
PLAN JPA operates under the direction of a Board of Directors comprised of one
member from each participating jurisdiction with one alternate member. The
Board typically includes City/Town Managers, City/Town Attorneys, Finance
Directors, Human Resources Directors/Managers and other designated Risk
Managers as approved by each participating jurisdiction's governing body.
The daily operation of PLAN JPA is under the direction of a full time Risk Manager
with a staff of insurance investigators and claims adjusters.
This policy will outline the legal requirements for denial of claims against the City
as well as determine the levels of authorization for settlement of the claims.
City Manager
City Clerk
Finance
All Departments
California Government Code, Section 900 et. seq.
Administrative Policies /INSURANCE CLAIMS PROCEDURES
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Subject:
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INSURANCE CLAIMS PROCEDURES
Date: November 18, 2025
Claim for Damages: A non -contractual claim for compensation, including claims
for personal injury, wrongful death, false arrest, property damage, and/or errors
and omissions filed against the City.
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A., The Finance Department shall:
1. Coordinate the handling of the claim under the direction of the Finance Director, who shall
normally serve as the City's designated Risk Manager per the discretion of the City
Manager.
2. Provide advance information to PLAN JPA of any potential claims against
the City when advised by operating departments of accidents, injuries, or
other occurrences involving City property.
3. Receive quarterly reports from PLAN JPA and keep City Manager informed
of status of major claims or problem areas.
4. Provide PLAN JPA with authorization to settle claims (See Procedures Section).
B. The City Clerk shall:
1. Receive and forward claims to the Finance Director.
2. When served by a process server, shall forward original to the Finance
Department and copies to the affected departments.
C. All Departments:
1. Department Heads shall instruct all employees to:
a) Promptly notify the Finance Department of all potential or actual claims
involving accidents or other events relating to City property.
b) Promptly forward all written claims against the City to the Finance
Department.
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INSURANCE CLAIMS PROCEDURES
Date: November 18, 2025
c) Not make comments that could assume or concede any liability on the
part of themselves as City employees, or the City, at any time.
d) Not advise claimants on matters relating to any claims against the City —
except as to claim filing procedure.
A. Submission of Claim: Claims must be submitted to the City Clerk in writing.
Such claims will be forwarded to the Finance Department for handling.
B. Denial of Claim: If not acted upon within 45 days (or such extended period of
time mandated by the Government Claims Act), the claim is automatically
deemed to be denied. The City's designated Risk Manager shall also have the
authority to deny a claim. In denying a claim, the Risk Manager upon PLAN
JPA's recommendation shall either find:
1. The claim is not a proper charge against the City;
2. The amount of the claim is greater than the true value of the claim, or;
3. The legal liability of the City or the amount of the claim is disputed based
upon the facts investigated.
C. PLAN JPA: Council shall direct staff to provide PLAN JPA with information
necessary to investigate and/or defend claims filed against the City. PLAN
JPA (the City's General Liability Insurance Pool administrator) serves as an
extension of City staff Risk Management capacity related to general liability
claims.
D. Co -Defendants: Should there be co-defendants with the City on a particular
claim, the City and PLAN JPA staff shall act in accordance with the
philosophies identified within this policy.
E. Defending a Claim: It shall remain the City of Campbell's philosophy and
practice to defend liability claims filed against the City whenever it appears
that the City is clearly not liable, or the amount demanded is in dispute.
However, the City shall also look at all available means to bring claims to
closure in a manner that is most beneficial to the City.
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ADMINISTRATIVE POLICIES AND PROCEDURES
Subject: INSURANCE CLAIMS PROCEDURES Date: November 18, 2025
F. Settlement Costs: The City may settle a claim when liability is apparent or
when other overriding considerations are present. Claim settlements shall be
subject to the following limits of authority:
a) The Police Chief and/or his/her designee are authorized to settle
single police -related claims up to $5,000;
b) The City's designated Risk Manager is authorized to settle single
claims up to $20,000;
c) Settlements from $20,001 to $50,000 must be approved by the
City Manager and City Attorney; and
d) All settlements greater than $50,000 and less than $100,000
require the City Council's approval.
G. Payment Release/Settlement: Before releasing any payments in settlement of a
claim, a "Release of All Claims" form shall be obtained from the claimant.
H. Reporting Requirements: On a quarterly basis, the City Manager will meet with
the designated Risk Manager and review the status of all general liability claims.
In addition, the City Manager and designated Risk Manager will keep the City
Council apprised of significant activity related to liability suits as a matter of
routine.
The purpose of this section is to establish a criterion for the assignment of legal
counsel to handle matters covered by PLAN JPA. The intent of this criteria is to
ensure the City obtains high quality, legal representation appropriate to the case
at hand, in a cost-effective manner.
A. Cases, to be referred to the City Attorney:
Cases that are not covered by PLAN JPA shall be referred to the City Attorney
unless otherwise directed by the City Council, including:
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Subject: INSURANCE CLAIMS PROCEDURES I Date: November 18, 2025
ons arising out of legislative, ministerial or quasi-judicial actions of the
City Council, Planning Commission, or other Boards or Commissions, or
Officials or Employees of the City; and
2. Land Use and Inverse Condemnation Actions.
Notwithstanding the foregoing, nothing contained herein shall preclude the City
Attorney from recommending the employment of outside legal counsel when
the City Attorney believes the employment of such outside counsel would be in
the best interest of the City.
Cases covered by PLAN JPA shall be referred to outside counsel, mutually
agreeable to the City and PLAN JPA, unless otherwise directed by the City
Council, including:
1. Personal injury or civil rights actions, including those that:
a) , Involve medical special damages of any amount; or
b) Involve allegations of abuse, harassment, use of excessive force,
assault or violations of civil rights by police officers;
2. Property damage tort actions, including those that:
a) Involve damages of any amount; or
b) Involve allegations of civil rights violations by police officers; and
3. Wrongful death actions.
Brian Loventhal, City Manager
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