HomeMy WebLinkAboutE-16 Staff Report - Delegate Full Claims Authority to CJPIACONSENT ITEM
E-16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: AUGUST 17, 2020
SUBJECT: ADOPTION OF A RESOULTION TO DELEGATE FULL CLAIMS AUTHORITY TO
THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
BACKGROUND:
The Human Resources/Risk Management Division of the Administrative Services Department is
looking at ways to maximize efficiencies within the risk management processes. One of the ways in
which this can be achieved is by delegating the claims handling responsibility, in its entirety, to the
California Joint Powers Insurance Authority. The Authority, through Carl Warren & Company, will
send notices to claimants. The recommended action will adopt a resolution to grant full authority to the
California Joint Powers Insurance Authority.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1) Adopt Resolution No. 2020-C48 to delegate tort liability claims handling responsibilities to the
California Joint Powers Insurance Authority.
ANALYSIS:
Department Heads are encouraged by the City Manager to continue to identify ways in which to enhance
efficiencies within their respective departments. In light of a recent staff member retirement, the
Administrative Services Director has identified a way in which to redirect staff time spent on liability
claims processing by having the City’s insurance agent, California Joint Powers Insurance Authority
(“CJPIA”), take on claims handling in its entirety. This is a common practice among the JPA’s member
agencies. Through Carl Warren & Company, they will have full authority to act on behalf of the City to
accept/reject claims and return claims as insufficient or untimely to claimants. CJPIA/Carl Warren’s
handling of claims does not fully remove burden from staff, and is only a small portion of the risk
management function, but this change will result in a more streamlined process and will allow the
Department the opportunity to better utilize staff resources. CJPIA and Carl Warren will maintain close
APPROVED
CITY COUNCIL
8/17/2020
Delegate Claims Process to CJPIA
August 17, 2020
Page 2
contact and report to the City on all actions taken for claims. Claims in the amount above the designated
authority to the City Manager will continue to require Council settlement authority.
FISCAL IMPACT:
There is no fiscal impact with this action.
Prepared by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachment:
1. Resolution No. 2020-C48 delegating CJPIA as claims handler
RESOLUTION NO. 2020-C48
A RESOLUTION OF THE CITY COUNCIL OF CITY OF
AZUSA ESTABLISHING A POLICY WHICH 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 CITY OF AZUSA DOES HEREBY RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
Whereas, City of Azusa 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 CITY OF AZUSA DOES HEREBY
FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. City of Azusa 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 City of Azusa.
SECTION 2. This Resolution shall become effective immediately upon its adoption.
SECTION 3. The City of Azusa Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this th day of , .
Mayor/Board Chair
ATTEST:
Clerk
Attachment 1