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Resolution No. 6175 127 RESOLUTION NO. 6175 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS AUTHORIZING THE CITY MANAGER OF THE CITY OF CYPRESS, OR THE CITY MANAGER'S AUTHORIZED DESIGNEE, TO DENY, COMPROMISE OR SETTLE CERTAIN LIABILITY, WORKERS' COMPENSATION & PERSONNEL CLAIMS AND ACTIONS AGAINST THE CITY AND BY THE CITY AGAINST THIRD PARTIES NOT TO EXCEED CERTAIN SPECIFIED AMOUNTS WHEREAS, the City of Cypress is partially self-insured for liability claims, actions and for Workers' Compensation claims, and claims made by current or former employees of the City for money damages, unpaid compensation and other related employment claims for money; and WHEREAS, under the City's self-insurance risk management program, the City has retained independent adjusting firms to serve as third party administrators to analyze, investigate and adjust such claims; and WHEREAS, actions of third parties (including current and/or former employees) will, from time to time, require that the City initiate claims or suits against such third parties or current or former employees; and WHEREAS, California Government Code § 935.4, a portion of the California Tort Claims Act, allows the City to authorize, by resolution, the delegation of authority to an employee of a local public entity to allow, deny, compromise and/or settle such claims; and WHEREAS, previous City Council action, by way of Resolution No. 5702, authorized settlement authority in the amount of $10,000, however, it did not provide authority for settlement or compromise of claims or disputes between the City and current or former employees (excluding claims or disputes between the City and the City Manager); and WHEREAS, it is desired to increase the global settlement authority of the City Manager, or designee, to $25,000 to meet today's settlement authority standards, and, from time to time, it is necessary that the City Council grant specific authority to the City Manager, or such other employee of the City as the City Manager may designate in writing, to expeditiously enter into settlement agreements without prior authorization of the City Council of the City of Cypress in order to minimize costs to the City; and NOW, THEREFORE, the City Council of the City of Cypress does hereby find, determine and resolve as follows: 1. The City Manager, or such other employee of the City as the City Manager may designate in writing, is hereby authorized to deny, allow, compromise and/or settle liability and/or worker's compensation claims, and/or employment related claims against the City of Cypress (excepting claims made by or against the City Manager), or by the City against a third party (excepting claims made by or against the City Manager), without prior approval of the City Council, when the amount of such allowance, compromise, or settlement does not exceed Twenty-Five Thousand Dollars ($25,000.00). 2. The City Manager, or such other employee of the City as the City Manager may designate in writing, shall consult with and obtain the advice and counsel of the City's third party administrators and the attorneys retained by the City in order to assist staff in ascertaining whether or not any claim should be partially, or completely, allowed, denied, rejected, settled or compromised in accordance with the provisions of this Resolution. 3. The City Manager, or such other employee of the City as the City Manager may designate in writing, is not authorized to deny, allow, compromise and/or settle liability and/or worker's compensation claims, and/or employment related claims against the City of Cypress, or by the City against a third party, without prior approval of the City Council, when the amount of such allowance, compromise, or settlement exceeds Twenty-Five Thousand Dollars ($25,000.00). 4. Whenever a liability claim or action has been filed against the City, and the City's liability claims administrator and/or the City Attorney, after investigation and analysis, determines that the City may be partially or wholly liable thereon, such claim or action, together with a recommendation concerning allowance, compromise or settlement thereof, shall be presented to the City Manager or his designee for consideration. Should the City Manager or his designee determine that any such claim or action is meritorious, the City Manager or his designee may allow, compromise and/or settle any such claim or action in accordance with the procedures set forth herein. 5. Whenever a Workers' Compensation claim has been filed against the City, and the 28 City's Workers' Compensation claims administrator, after evaluation and analysis, determines that the injury or illness is work-related, such claim, together with a recommendation concerning allowance, compromise or settlement thereof, shall be presented to the City Manager or his designee for consideration. Should the City Manager or his designee determine that any such claim is meritorious, the City Manager or his designee may allow, compromise and/or settle any such claim in accordance with the procedures set forth herein and in accordance with State laws governing Workers' Compensation. 6. Whenever a personnel claim or action has been filed against the City (excepting claims made by or against the City Manager), or by the City against a third party, and the City's claims administrator and/or the City Attorney, after investigation and analysis, determines that the City may be partially or wholly liable thereon, such claim or action, together with a recommendation concerning allowance, compromise or settlement thereof, shall be presented to the City Manager or his designee for consideration (excepting claims made by or against the City Manager). Should the City Manager or his designee determine that any such claim or action is meritorious, the City Manager or his designee may allow, compromise and/or settle any such claim or action in accordance with the procedures set forth herein (excepting claims made by or against the City Manager). 7. Whenever a claim or action has been filed by the City against a third party, settlement offers by the third party shall be reviewed by staff and recommendations to accept or reject such offer shall be made to the City Manager or his designee for consideration. Should the City Manager or his designee determine that any such offer or compromise is meritorious, the City Manager or his designee may compromise and/or settle any such claim or action in accordance with the procedures set forth herein. 8. Within thirty days (30) after allowing, settling, or compromising any claim authorized to be settled or compromised herein, and where the amount of the settlement or compromise is in excess of Five Thousand Dollars ($5,000.00) but within the authority conferred by this Resolution, the City Manager, or such other employee of the City as the City Manager may designate in writing, shall submit to the City Council a report substantiating the basis for the decision and the facts underlying the claim. Further, the City Manager shall file with the City Clerk of the City of Cypress all executed settlement agreements entered into on behalf of the City pursuant to this resolution. 9. This resolution shall supersede and rescind Resolution No. 5702. PASSED AND ADOPTED by the City Council of th ity of Cypress at a regular meeting held on the 11th day of January, 2010. • VONA owt., Meta MAYOR OF THE CITY OF CYPRESS ATTEST: 100 15 (XY1 CITY CLERK OF THE CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS I, DENISE BASHAM, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 11th day of January, 2010, by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Luebben, Mills, Seymore, Bailey, and Narain NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None cotterer 6.b s CITY CLERK OF THE CITY OF CYPRESS