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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. 93-34 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. 93-34 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 93-34 " 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; 93-34 ..... 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. 93-34