HomeMy WebLinkAbout07-14 - Amending Code Regarding Settlement and Rejection Authority of Liability ClaimsORDINANCE NO. 07-14
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AMENDING TITLE 2,
CHAPTER V, ARTICLE 3 OF THE COSTA MESA
MUNICIPAL CODE REGARDING SETTLEMENT AND
REJECTION AUTHORITY OF LIABILITY CLAIMS.
WHEREAS, the liability claims environment has changed significantly since the
Code was last amended in 1996; and
WHEREAS, the facts notwithstanding, claimants now make claims for millions of
dollars, but the authority limits have not been raised accordingly; and
WHEREAS, over the last ten years, claim settlement value has increased to the
point where the industry standard of the nuisance value of claims is anything less than
$25,000; and
WHEREAS, by adopting higher settlement authority limits for the City Manager,
fewer claims would have to be presented to City Council for review and disposition,
thereby reducing staff involvement and streamlining claims processing; and
WHEREAS, by giving the City Manager the authority to review and reject any
meritless claims regardless of the amount claimed would allow the City to reject claims
quickly, resulting in lower litigation costs by restricting claimants to a shorter time period in
which to file lawsuits and encouraging more expedient discovery.
WHEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 2-189, Title 2, Chapter V, Article 3 of the Costa Mesa Municipal
Code is hereby amended as follows:
Sec. 2-189. Settlement of certain claims.
(a) The city council authorizes an insurance committee, comprised of the city manager,
director of finance, and city attorney, or designees, to perform such functions of the city
council as provided in Chapter 5 of Title 1 of the Government Code, including the
rejection or negotiation of all claims and settlement of any claim where the amounts to
be paid pursuant to an allowance, compromise or settlement does not exceed twenty-
five thousand dollars ($25,000.00). Upon approval of a majority of the insurance
committee, the director of finance shall cause a warrant to be issued upon the treasury
of the city in the amount for which a claim has been allowed, compromised or settled.
(b) The Human Resources/Risk Manager is hereby authorized, with the concurrence of
the city attorney, to allow, reject, compromise, or settle any tort claim for a sum not to
exceed five thousand dollars ($5,000.00). Upon approval by the Human Resources/Risk
Manager, the director of finance shall cause a warrant to be issued upon the treasury of
the city in the amount for which a claim has been allowed, compromised or settled.
(c) The City Manager is hereby authorized to reject any claim, regardless of amount
stated or unstated. This authority may be delegated by the City Manager to the City's
Insurance Committee or an individual employee.
(d) The City Manager is hereby authorized to negotiate and settle any liability claim up
to an amount not to exceed $50,000. Upon approval by the Human Resources/Risk
Manager, the director of finance shall cause a warrant to be issued upon the treasury of
the city in the amount for which a claim has been allowed, compromised or settled. This
authority may be delegated by the City Manager to the City's Insurance Committee or
an individual employee.
Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or
appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies and no further, is hereby repealed or modified to that extent
necessary to affect the provisions of this Ordinance.
Section 4. Severability. If any chapter, article, section, subsection, subdivision,
sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any
person, is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portion of this Ordinance or its application to other persons. The City Council
hereby declares that it would have adopted this Ordinance and each chapter, article,
section, subsection, subdivision, sentence, clause, phrase or portion thereof,
irrespective of the fact that any one or more subsections, subdivisions, sentences,
clauses, phrases, or portions of the application thereof to any person, be declared
invalid or unconstitutional. No portion of this Ordinance shall supersede any local,
State, or Federal law, regulation, or codes dealing with life safety factors.
Section 5. Publication. The Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Ordinance and shall cause the same to be published and
posted pursuant to the provisions of law in that regard and this Ordinance shall take
effect thirty (30) days after its final passage.
PASSED AND ADOPTED this 1 g'" day of June, 2007.
Allan R. Mansoor, Mayor
ATTEST:
Julie6Folcik, City Clerk
APPROVED AS TO FORM:
Kimberly I - II Barlow, City Attomey
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing Ordinance No. 07-14 was duly introduced for first reading
at a regular meeting of the City Council held on the 5t" day of June, 2007, and that
thereafter, said Ordinance was duly passed and adopted at a regular meeting of the
City Council held on the 19`" day of June, 2007, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MANSOOR, BEVER, DIXON, FOLEY, LEECE
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 20th day of June, 2007.
JULIE FOLCIK, CITY CLERK
(SEAL)
I hereby certify that the above and foregoing is the original of Ordinance No. 07-14 duly
passed and adopted by the Costa Mesa City Council at the regular meeting held June
19, 2007, and that Summaries of the Ordinance were published in the Newport Beach -
Costa Mesa Daily Pilot on June 13 and 27, 2007.
JUEIE FOLCIK, CITY CLERK
(SEAL}_