SUBJECT/RECOMMENDATION:
Title
Amend the Clearwater Code of Ordinances, Section 2.527 - Settlement of Claims, to increase the City Manager or his/her designee authority to settle and release, on behalf of the City, any claim or lawsuit, both for and against the City, up to and including $50,000, which is an increase from its current amount of $25,000; approve any settlement that exceeds $15,000 (currently $7,500) shall be reviewed by the City Attorney and/or designee and any claim that exceeds $25,000 (currently $15,000) shall require unanimous written concurrence of the City Manager, City Attorney and Risk Manager or their designees and pass Ordinance 9031-17 on first reading.
Body
SUMMARY:
The Risk Management Division of the Finance Department respectfully requests this amendment to allow for settlement of claims to be more efficient and to acknowledge that current claims settlement authorization levels are not sufficient, since settlements have become increasingly more expensive since 1980, which is the date of the original Ordinance.
In reviewing the 22 claims that went to Council for settlement approval from June 2014 to
March 2017, 10 of those claims fell between $25,000 and $50,000. By increasing the settlement authority to $50,000, it will provide for the following benefits:
• Allow recognition that claims values have increased since 1980, the date of the original Ordinance, due to medical and legal expenses.
• Greater flexibility for Risk Management and the Claims Committee to settle claims quicker, therefore reducing workload, claims severity and legal expenses.
• Reduce the amount of time for review and approval of these settlements arising from one on one’s with councilmembers, presentations at council work sessions and council meetings.
Risk Management believes the recommended changes to this Section will increase the efficiency and provide a financial benefit of reducing claims severity and legal payments.