HomeMy WebLinkAbout2008/03/18 Item 10
ITEM TITLE: eel'
SUBMITTED BY:
REVIEWED BY:
CITY COUNCIL
AGENDA STATEMENT
~f:. CITY OF
~...,., CHULA VISTA
MARCH 18, 2008, Item~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $335,000 FROM THE
AVAILABLE BALANCE OF THE GENERAL FUND TO
THE HUMAN RESOURCES DEPARTMENT'S BUDGET TO
COVER ANTICIPATED COSTS AND EXPENSES
RELATED TO CURRENT PUBLIC LIABILITY CLAIMS
THROUGH THE END OF THE FISCAL YEAR
CITY ATTORNEY ('~
DIRECTOROFHUMA R OURCES (~
CITY MANAGER
-
ASSISTANT CIT MANAGER ~)
4/STHS VOTE: YES 0 NO D
SUMMARY
Annually, the City's budget includes funds to defend and to pay settlements on claims
against the City based on typical claims activity. Depending upon the number and the
complexity of claims received the cost to defend or settle them may exceed the costs
anticipated during budget preparation as is the case this fiscal year.
ENVIRONMENTAL REVIEW
Not Applicable.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
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MARCH 18,2008, ItemR
Page 2 of2
DISCUSSION
During the annual budget process, funds are appropriated to pay anticipated costs and
expenses related to liability against the City during that fiscal year. These budget
estimates are based on prior years' "normal" claims activity plus anticipated unusual
expenditures based on known claim exposure at the time the budget is prepared.
During the current fiscal year the City Attorney's Office has been involved in an
unexpected number of complex lawsuits and pre-litigation matters. The volume and
magnitude of such matters along with the complexity of issues has been significant. The
matters being handled in the fiscal year involve technical and specialized issues including
catastrophic injuries, death cases, detailed constitutional rights matters, and matters
involving significant employment and police issues. Because of the increase in expert
witness and outside counsel expenses associated with these cases, it is requested that the
City Council appropriate an additional $335,000.00 to cover such expenses to the Human
Resources Department's budget.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequently the 500 foot rule fOlmd in California Code of
Regulations section 18704.2(a)(I) is not applicable to this decision.
FISCAL IMPACT
With this action $335,000.00 will be appropriated from the available General Fund
reserves to the Human Resources Department's budget. This appropriation was not
included in the $3.5 million deficit projected in the General Fund Second Quarter
Financial Report. The appropriation would increase the projected deficit to $3.8 million
in the current fiscal year.
ATTACHMENTS
Not Applicable
Prepared by: Bart C. Miesleld. Senior Assistant City Attorney, City Attorney's Office
,
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RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $335,000 FROM THE
AVAILABLE BALANCE OF THE GENERAL FUND TO THE
HUMAN RESOURCES DEPARTMENT'S BUDGET TO
COVER ANTICIPATED COSTS AND EXPENSES RELATED
TO CURRENT PUBLIC LIABILITY CLAIMS THROUGH THE
END OF THE FISCAL YEAR
WHEREAS, during Fiscal Year 2007-2008, the City Attorney's Office and Human
Resources Department has been involved in the defense and prosecution of an unexpected high
number of very complex lawsuits and pre-litigation matters; and
WHEREAS, due to the increase in outside counsel and expert witness costs
associated with these cases, the Human Resources Department is asking for an appropriation of
$335,000.00; and.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve appropriation of $335,000.00 from the General Fund balance to
the Human Resources Department's Other Expenses budget.
Presented and approved as to form by:
~~J
~ Mo re
City Attorney
.I:\Jttol11ey\reso\tinance\City Atty Budget amend
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