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HomeMy WebLinkAboutCC AG PKT 2006-06-26 #R Oq AGENDA REPORT DATE: June 26, 2006 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: June Yotsuya, Assistant City Manager SUBJECT: RESOLUTION NO. ESTABLISHING POLICY DELEGATING TORT LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY SUMMARY OF REQUEST: Staff recommends that the City Council adopt Resolution No establishing a policy that delegates tort liability claims handling responsibilities to the California Joint Powers Insurance Authority (CJPIA) as authorized by Government Code Sections 910, et seq. DISCUSSION: Since the City of Seal Beach joined the California Joint Powers Insurance Authority (CJPIA), all processing and resolution of claims (rejection or settlement) has been administered through the Authority and its claims administrator, Carl Warren & Company. The City Manager's Office through its risk management program has been responsible for the basic claim handling and internal processing of claims for the City and currently sends out claim letters based on direction from the CJPIA and Carl Warren and Company. CJPIA continues to provide valuable expertise and coverage in managing the City's risk. CJPIA recently took action to provide members with an additional alternative for the handling of liability claims filed against them. The new alternative would allow member cities to fully delegate the entire tort liability claims handling responsibility to the Authority. The Authority would assume the responsibility for all correspondence to a claimant on the City's behalf and further streamline the process. CJPIA's third party administrator provided this assistance to the City last year when the City was inundated with flood related claims and it proved to be an invaluable service. FISCAL IMPACT: No direct fiscal impact. AGENDA R June 26, 2006 City Council Agenda Report — Resolution re: Delegation of Tort Liability Claims Handling to CJPIA Page 2 RECOMMENDATION: Staff recommends the City Council adopt Resolution No. establishing a policy that delegates tort liability claims handling responsibilities to the California Joint Powers Insurance Authority as authorized by Government Code Sections 920, et seq. Submitted by: ./ i a �I J Yotsuy %ssistan ity Manager N TE • ND APP' • E P . John y! B • orski, City Manager achment: Resolution RESOLUTION NO. .b 6 1 7 1- A RESOLUTION OF THE CITY OF SEAL BEACH ESTABLISHING A POLICY THAT DELEGATES TORT LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY AS AUTHORIZED BY GOVERNMENT CODE SECTIONS 910, ET SEQ. THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Whereas, the City of Seal Beach 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, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The City of Seal Beach delegates to 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 Seal Beach. SECTION 2. This Resolution shall become effective immediately upon its adoption. SECTION 3. The City of Seal Beach City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED by the City Council of the City of Seal Beach at a regular meeting thereof held on the 26th day of June , 2006 by the following vote: AYES: Councilmember NOES: Councilmember ABSENT: Councilmember Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } 1, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach at a regular meeting thereof held on the 26th day of June , 2006. City Clerk