HomeMy WebLinkAbout2008-12-01 Ordinance 5023Ordinance No. 5023
Ordinance of the Council of the City of Palo Alto Amending
Palo Alto Municipal Code Section 2.28.240 (Settlement of
Claims and Actions) to Increase the City Attorney's Settlement
Authority from $10,000 to $35,000
The City Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings. The City Council finds that:
A. The public interest requires that periodic revision of the municipal code is
necessary in order to make editorial changes for clarification and to make revisions that are
consistent with current practice and public policy.
B. The City Attorney has authority to perform the functions of the City
Council relative to claims and actions against the City or its officers or employees under the
-----provisions of Division 3i)of the Goveniment Code, "ClaimsancfActions Again sf Public Entities
C. Section 2.28.240 of the Palo Alto Municipal Code authorizes the City
Attorney to accept, settle or reject without prior approval of the Council, claims and actions
against the City, provided that no allowance, compromise or settlement shall exceed $10,000.
D. Section 2.28.240 of the Palo Alto Municipal Code was last updated in
1995 and no longer accurately reflects the monetary value of many actions against the City.
E. Increasing the City Attorney's authority to accept, settle or reject claims
and actions against the City, without prior approval of the Council, in an amount of up to
$35,000.00, will reduce the number of closed sessions, creating greater transparency in the
settlement process, and facilitate the prompt resolution of claims and actions worthy of
settlement.
Section 2.28.240 of the Palo Alto Municipal Code is hereby
2.28.240 Settlement of Claims and Actions.
As provided in Section 935.4 of the Government Code of California, the City
Attorney is designated to perform the functions of the City Council relative to claims and actions
against the City or any of its officers or employees under the provisions of Division 3.6 of the
Government Code, as follows:
(a) Where the City has insured itself against liability for the claimed injury, the City
Attorney shall forward to the insurance carrier without prior council approval a written
recommendation as to acceptance, settlement, or rejection of such claim, provided that the
amount of any recommended allowance, compromise or settlement does not exceed $35,000.00;
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(b) Where the City is uninsured, the City Attorney shall be authorized to accept,
settle or reject without prior approval of the council, claims against the city, provided that no
allowance, compromise or settlement shall exceed $35,000.00. Upon the written order from the
City Attorney, the Director of Administrative Services shall cause to be issued a warrant upon
the treasury of the City in the amount for which a claim has been allowed, compromised or
settled;
(c) The City Attorney is further authorized to compromise or settle, without prior
approval of the council, except on a matter of policy, any actions which the City is either
plaintiff or defendant and which are not covered by insurance, provided that the amount of such
compromise or settlement shall not exceed 35,000.00;
(d) The City Attorney shall make bi-annual reports to the council on action taken on
claims and actions against the City;
(e) A recommyndation under subsection (a) above shall constitute "action" upon such
-----claiffi-within-the-meanin~ofGO-v:ernmenLCode-Section-9A5.4.------------------
SECTION-3-:-TheCouncll-:fiilllsfliat mcreasmg me-CIty Aftorney' s seUlement autliority
does not meet the definition of a project under the California Environmental Quality Act
pursuant to California Public Resources Code Section 21065, and therefore no environment
impact assessment is necessary.
SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its
adoption.
INTRODUCED: NOVEMBER 17,2008
PASSED: DECEMBER 1, 2008
AYES: BARTON, BURT, DREKMEIER, ESPINOSA, KISHIMOTO, KLEIN, MORTON,
SCHMID, YEH
NOES:
======~AB£EN~~. ========================================================
ABSTENTIONS:
APPROVED AS TO FORM: APPROVED:
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