CC Resolution 8425
RESOLUTION No. 8425
BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AMENDING THE INSURANCE CLAIMS PROCEDURES TO EXPAND THE PROCEDURES
SECTION TO INCORPORATE PROCEDURAL LANGUAGE THAT ADDRESSES
THE CITY's PHILOSOPHY AND PRACTICE RELATED TO DEFENSE
OR SETTLEMENT OF GENERAL LIABILITY CLAIMS
WHEREAS, the City of Campbell is a member of ABAG Plan Corporation, which
provides general liability self-insured pooled insurance for member cities in the
Bay Area; and
WHEREAS, City staff need to act on all general liability claims in a timely
manner for their appropriate resolution; and
WHEREAS, the resolution of general liability claims under $10,000 are considered
a ministerial duty of City staff; and
WHEREAS, the resolution of general liability claims between $10,001 and $25,000
are subject to review by and approval of the Finance Sub-Committee; and
WHEREAS, the City Council shall have ultimate authority and responsibility for
resolving any general liability claims above $25,000, however, the Finance
Sub-Committee may act on behalf of the Council should situations of an emergency
nature occur; and
WHEREAS, the Finance Sub-Committee shall review on a quarterly basis the status
of all general liability claims; and
WHEREAS, the Insurance Claims Procedures shall provide defense counsel selection
and referral criteria; and
WHEREAS, by endorsing this delegation of authority to City staff, the City
Council, shall be able to concentrate their work on major civic issues and problems:
NOW, lHEREFORE, BE IT RESOLVED by the City Council of the City of Campbell that
the City Council shall approve amendments to the Administrative Policy and amend
Section 7 - Procedures.
PASSED AND ADOPTED this 5th day of January, 1993 by the following roll call
vote:
AYES:
NOES:
Councilmembers
Burr, Watson, Ashworth, Dougherty, Conant
Councilmembers
None
ABSENT: Councilmembers None
APPROVED:
ATTEST:
/):J
(J~1~rJL i~~
./ Anne Bybee, City Clerk
"-t3azj~u~ ~
Barbara D. Conant, Mayor
CITY OF CAMPBELL
ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT:
INSURANCE CLAIMS PROCEDURES
DATE:
January 5, 1993
1) PURPOSE
To establish the responsibilities and procedures for handling damage claims
against the City.
2) DISCUSSION
The City is a participant in the ABAG Plan liability insurance program pool
with other cities in the San Francisco Bay Area.
The City has elected to be self-insured for the first $100,000.
The ABAG Plan operates under the direction of a Board of Directors comprised
of one member from each participating jurisdiction with one alternate
member. The Board includes, Councilmembers, City Managers, City Attorneys,
Finance Directors and Risk Managers.
The daily operation is under the direction of a full time Risk Manager with a
staff of insurance investigators.
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.
3) DEPARTMENT AFFECTED
City Manager
City Clerk
Finance
All departments
4) LEGAL REOUIREMENTS
California Government Code, Section 900 et. seq.
5) DEFINITION
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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CITY OF CAMPBELL
ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT:
INSURANCE CLAIMS PROCEDURES
DATE:
January 5, 1993
6) RESPONSIBILIlY
A. The Finance Department shall:
1. Coordinate the handling of the claim.
2. Provide advance information to ABAG Plan 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 ABAG Plan and keep City
Manager informed of status of major claims or problem
areas.
4. Provide ABAG Plan with authorization to settle claims (See
Section E).
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 Director.
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 claim
against the City -- except as to claim filing procedure.
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CI TV OF CAMPBELL
ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT:
INSURANCE CLAIMS PROCEDURES
DATE:
January 5, 1993
7) PROCEDURES
A. Submission of Claim: Claims must be submitted to the City
Clerk in writing. Such claims will be forwarded to the Finance
Director for handling.
B. Denial of Claim: If not acted upon within 45 days, the
claim is automatically deemed to be denied. In denying a
claim, the City upon ABAG PLAN'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. ABAG PLAN: Council shall direct staff to provide ABAG PLAN
with information necessary to investigate and/or defend claims
filed against the City. ABAG PLAN (the City's General
Liability Insurance Pool administrator) serves as an extension
of City staff in a 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 ABAG PLAN 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.
F. Settlement of a Claim: The City may settle a claim when
liability is apparent or when other overriding- considerations
are present. Claim settlements may be approved as follows:
The City Manager and/or Finance Director are authorized to
settle single claims up to $10,000. Settlements from $10,001
to $25,000 must be approved by the Finance Sub-Committee. All
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CITY OF CAMPBELL
ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT:
INSURANCE CLAIMS PROCEDURES
DATE:
January 5, 1993
settlements greater than $25,000 require the City Council's
approval. However, in unusual situations of an emergency
nature, the Finance Sub-Committee is authorized to act on
behalf of the City Council. Should such emergency action be
necessary, the Council will be advised accordingly in a timely
manner.
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 Finance
Sub-Committee will meet and review the status of all general
liability claims. In addition, the Finance Sub-Committee will
be called to meet on an as-needed basis. Staff will keep the
Finance Sub-Committee apprised of significant activity related
to liability suits as a matter of routine.
8) LEGAL DEFENSE COUNSEL SELECTION & REFERRAL CRITERIA
FOR ABAG . COVERED LIABILITY CLAIMS
PURPOSE
The purpose of this section is to establish a criteria for the
assignment of legal counsel to handle matters covered by the
Association of Bay Area Government's (ABAG's) Insurance Pool. The
intent of these 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:
The following cases shall be referred to the City attorney
unless otherwise directed by the City Council:
1. Personal injury actions involving medical special
damages of less than $35,000, except cases of abuse,
harassment, excessive force, assault or violation of
civil rights by police officers;
2. Property damage tort cases involving total damages of
less than $250,000, except for those cases arising out
of alleged violations of civil rights by police
officers;
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CI TV OF CAMPBELL
ADMINISTRATIVE POLICIES AND PROCEDURES
SUBJECT:
INSURANCE CLAIMS PROCEDURES
DATE:
January 5, 1993
3. Actions ansmg out of the 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
4. Land Use and Inverse Condemnation Actions.
Notwithstanding the foregoin~, nothing contained herein shall preclude the
City Attorney from recommendmg 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.
B. Cases to be Referred to Outside Counsel:
The following cases shall be referred to outside counsel,
mutually agreeable to the City and ABAG, unless otherwise
directed by the City Council:
1. Personal injury actions that:
a) Involve medical special damages of $35,000 or more; 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 that:
a) Involve $250,000 in damages or more; or
b) Involve allegations of civil rights violations by police
officers; and
3. Wrongful death actions.
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