HomeMy WebLinkAboutAgenda Statement 1981/02/24 Item 5
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COUNCIL AGENDA STATEMENT
Item ~
Meeting Date 2-24-81
ITEM TITLE:
Resol ution /O.Jtff- Amending
Between the City of Chula
Director of person~/
Resolution 10165, Service Agreement
Vista and Carl Warren & Company
SUBMITTED BY:
BACKGROUND:
(4/5ths Vote: Yes No___)
Carl Warren & Company serve as our public liability claims administrator. Their role
is to investigate and make recommendations on claims and suits filed against the City.
In the service agreement between the City and Carl Warren & Co., provision is made
that Carl Warren & Co. have direct claims settlement authority' to the extent of $1,000
per occurrence without prior approval by the City.
Certain claims and their settlements falling under the $1,000 limitation are fairly
routine in nature. City risk management staff and Carl Warren & Co. feel that these
claims can more economically be handled by the City directly without increasing the
.risk to the City. Therefor.e, it is my
RECOMMENDATION: That Council adopt the resolution.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
Records of public liability claims for the last eighteen months show that the City
could save approximately $1600 in administrative fees by handling undisputed property
damage claims independently from Carl Warren & Co. The claims in question include:
1. Sewer main backups where the claimed amount is justified by the actual damages
sustained.
2. Plumbing costs sustained while investigating the cause of a sewer backup, if
the problem is found to be in the main.
3. Damage caused to property through acts of City employees when liability is
clear.
4. Any other undisputed property damage claims where the City's liability is
obvious.
Sewer and plumbing claims listed as #1 and #2 above, are included because the City
assumes full liability for damage caused by sewer main backups. Risk management staff
would still be required to do investigative work to determine that the claims made
are reasonable, considering the actual damage sustained by the claimant.
In property damage caused by City employees, #3 above, full compensation for damages
sustained should be provided to the claimant. The investigative role of.the risk
management staff in this type of claim would include getting repair estimates in the
case of automobile or other equipment damage, estimating replacement costs of damaged
articles or otherwise determining that the claimed amount is appropriate.
16399
Form A-113 (Rev. 11/79)
EXHIBITS
Agreement_____ Resolution_____ Ordinance_____ Plat_____ Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached
Submitted on
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Item 5
Page 2
There may be other types of claims where City liability is obvious. When this
is the case, a determination of actual damages and settlement should be
undertaken. Whatever investigation is necessary to determine appropriate
costs would be conducted by the ris'k management staff or private adjusters.
Carl Warren & Co. used private adjusters in this type of case, also, but by
hiring them directly we would save the administrative costs charged back
to the City.
The attached resolution provides the necessary amendment to the service
agreement specifying that certain types of claims will be handled by the
City's risk management staff.
FISCAL It1PACT:
The adoption of the change in procedure is expected to reduce the administra-
tive fees paid to Carl Warren & Co. by approximately $1,000 per year.
SAT/bb
by the City Council of
Chula Vista, California
Dated
01-.2--,1 ~f/
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