HomeMy WebLinkAboutResolution 1988 - 0061 (REPEALED)‘0
RESOLUTION NO.88-61
REVISING DISTRICT PROCEDURES FOR SETTLEMENT OF CLAIMS
MADE AGAINST THE DISTRICTS;SETTLEMENT OF CLAIMS MADE
BY THE DISTRICTS;AND.COLLECTION OF DELINQUENT
ACCOUNTS OWING TO THE DISTRICTS
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2, 3,5,6,7,
11,13 AND 14 OF ORANGE COUNTY,CALIFORNIA,ADOPTING
DISTRICT PROCEDURES FOR SETTLEMENT OF CLAIMS MADE
AGAINST THE DISTRICTS;SETTLEMENT OF CLAIMS MADE
BY THE DISTRICTS;AND COLLECTION OF DELINQUENT
ACCOUNTS OWING TO THE DISTRICTS AND REPEALING
RESOLUTIONS NOS.78—107 AND 83-190
WHEREAS,claims for damages alleging personal injuries,including death,
and to real and personal property,are periodically made against the Districts;
and,
WHEREAS,the Districts presently have no liability insurance in force,
having previously determined to be self—insured;and
WHEREAS,the Districts have the need for the retention of claims
administration services and legal counsel who shall be vested with certain
limited authority to accomplish a favorable disposition of claims made against
the Districts;and,
WHEREAS,the Districts have occasion to seek recovery against persons or
entities who have caused loss or damage to the Districts or who have been
assessed fines,charges or special fees relating to their use ofDistrict
facilities;and
WHEREAS,in the course of conducting the business affairs of the Districts,
certain accounts receivable or other obligations owing to the Districts become
delinquent,and in fact,uncollectible;andT
WHEREAS,cost efficiency relating to collection of delinquent accounts can
be greatly improved by the adoption of certain policies relating to the
REPEALED BY
97-31
collection of said accounts.
NOW,THEREFORE,the Boards of Directors of County sanitation Districts
Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California,
DO HEREBY DETERMINE,RESOLVE AND ORDER:
ARTICLE I
SETTLEMENT OF LIABILITY CLAIMS
MADE AGAINST DISTRICTS
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Section 1.1:A liability reserve has been established in the amount of
$500,000.00 for the payment of claims made against the Districts.Said amount
shall continue to be provided for in each annual budget to ensure that sufficient
funds are on deposit •to provide for payment of those amounts incurred as a
liability loss or expense.
Section 1.2:Each annual budget shall provide,in addition to the reserve
established by Section 1.1,for the sufficient funds to provide a sufficient
balance to meet projected expenses for loss and payment of claims during the
ensuing fiscal year.
Section 1.3:A claims administration firm is authorized to be retained,
and said fim is hereby granted authorization to make payments and settlements
of claims made against the Districts in an amount not to exceed $1,000.00 per
claimant.Said firm shall be retained in accordance with the terms and
conditions set forth in an agreement approved by the General Counsel.
Section 1.4:A coniTlittee comprised of the General Manager,Director of
Finance andGeneral Counsel are authorized to review and make full settlement of
any claims made against the Districts for contract or liability damages not
otherwise covered by Insurance by payment of a sum not to exceed $10,000.00 per
claimant.In the event a claim results in litigation,which is being legally
defended by other than the Districts’General Counsel,this comittee shall
review and provide the approval to the Districts’legal counsel within the same
limits.
Section 1.5:All claims for damages resulting in a judgment or a
recomended settlement by negotiation in an amount exceeding $10,000.00 per
claimant,shall be submitted to and approved by the Board of Directors of the
defendant District or the Joint Boards in the event of claims made against the
Joint Districts.
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Section 1.6:The General Counsel is authorized to retain the services of
additional legal counsel for purposes of representing the Districts in the
defense of any claim or matter of litigation,wherein he determines that
specialized expertise or experience is desirable or that the workload requires
the utilization of outside counsel.
ARTICLE II
COLLECTION OF DELINQUENT OBLIGATIONS
OWING TO THE DISTRICTS
Section 2.1:The Director of Finance is authorized to write off as an
uncollectible debt any delinquent obligation owing to the Districts in excess of
90 days and not exceeding the sum of $250.00.
Section 2.2:The Director of Finance,in his discretion,is authorized to
assign for collection to a person or fim of his choosing,any delinquent
obligation owing to the Districts in excess of 30 days and not exceeding the sum
of $1,500,00.Ninety (90)days after assigning the obligation for collection,
the Director of Finance is authorized to write off as an uncollectible debt,any
portion of the obligation which is still outstanding.
Section 2.3:The Director of Finance,~-in his discretion,is authorized to
file the necessary proceedings in the Small Claims Court of the appropriate
judicial district of the County of Orange in order to.collect any delinquent
obligation owing to the Districts in excess of 30 days and not exceeding the sum
of $1,500.00.Upon obtaining a judgment in favor of the Districts,the Director
of Finance and General Counsel shall take all legal measures necessary to enforce
the terms of the judgment.Ninety (90)days after receiving a final judgment in
favor of the Districts,the Director of Finance is authorized to write off as an
uncollectible debt,any portion of the obligation which is still outstanding.
Section 2.4:Notwithstanding the authority provided in Sections 2.2 and
2.3 above,any obligation owing to the Districts,not exceeding the sum of
$10,000.00,may be compromised by acceptance of a sum lesser than the full
amount due or may be written off as uncollectible,upon that detemination being
made,after investigation by a comittee comprised of the General Manager,or
his designee,General Counsel,and Director of Finance.
Section 2.5:The Director of Finance shall forward any delinquent
obligation in excess of $10,000.00 to the General Counsel for the Districts,who
shall submit his reconiiiendation to the Boards of Directors as to the method of
collection or disposition of said account.
Section 2.6:In addition to the above authorization,the Director of
Finance is directed to exercise all available lawful methodsto ensure prompt
and full recovery of all obligations owing to the Districts.
Section 2.7:The Director of Finance is authorized to offset against any
sums held on deposit by the Districts on behalf of any person who owes a
delinquent obligation to the Districts.
S
Section 2.8:The Director of Finance is authorized to withhold the
approval of any permits otherwise to be issued by the Districts to any person
who has an outstanding debt obligation owing~to the Districts until such time as
said debt obligation is paid in full.
Section 2.9:Delinquent obligations,as used in this Resolution,shall
include any invoice submitted by the Districts for services rendered or for
reimbursement of damages caused to District property or personnel,which has not
been paid within (a)the time prescribed by District ordinance or resolution;or
(b)thirty (30)days,whichever is later,from the date of invoice.
ARTICLE III
COLLECTION OF FEES AND CHARGES RELATING
TO INDUSTRIAL WASTE DISCHARGERS
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Section 3.1:In the event of any fees or charges being owed by an
Industrial Waste Permittee up to the amount of $10,000.00,a coninittee comprised
of the Director of Finance,Director of Technical Services and General Counsel
are authorized to negotiate and execute,on behalf of the Districts,a
settlement agreement relating to the financial obligation owing to the
Districts.Said agreement shall be based upon a showing of good cause and a
reasonable dispute between the Districts and the Permittee,and can provide for
acceptance of a sum lesser than the full amount claimed as due by the District.
This agreement may be entered into prior to or during the pending of any
litigation action filed by the Districts to collect the amount owed.
Section 3.2:Upon written request and establishment of good cause by an
industrial waste permitee,the convnittee of the Director of Finance,Director of
Technical Services and General Counsel may negotiate and enter into a deferred
payment agreement with the permittee in accordance with the guidelines
established herein.Said agreement may be incoroporated as part of or separate
and in addition to any enforcement compliance agreements authorized by the
provisions of the Districts’Industrial Waste Regulations Ordinance.
Section 3.1:The installment payment agreement shall be for a maximum term
not to exceed six (6)months.The agreement shall provide for payment of
interest on the principal amount owing at the prime rate plus 2—½%.The prime
rate shall be established as the rate set and in efect by Bank of America,
San Francisco,Callforina,on the date of the agreement.The agreement shall
provide for payment of all costs of preparing and adminsitering the payment
agreement,including legal and adminsitrative costs.
Section 3.2.2 The agreement shall stipulate the penalties to which the
permittee shall be subjected in the event of nonpayment of any of the payments
specified In the agreement,including initiation of legal action or permit
revocation,as recorrmended by the General Counsel.
Section 3.3:If the delinquent obligation is greater than $10,000.00,any
compromise settlement or any deferred payment agreement shall be submitted to
and approved by the Boards of Directors,who shall prescribe the terms and -
conditions.
Section 3.4:That Resolutions Nos.78—107 and 83—190 are hereby repealed
and made of no further effect.
Section 3.5:This Resolution is effective ininediately upon adoption.
PASSED AND ADOPTED at a regular meeting held May 11,1988.
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
I,RITA J.BROWN,Secretary of the Boards of Directors of County
Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
California,do hereby certify that the foregoing Resolution No.88-61 ~as
passed and adopted at a regular meeting of said.Boards on the 11th day of May,
1988,by the following vote,to wit:
AYES:Ben Bay,Roland E.Bigonger,John C.Cox,Jr.,Norman E.
Culver,William ~Davis,Richard B.Edgar,James T.Fasbender,
Don R.Griffin,Dan Griset,Robert Hanson,Evelyn Hart,Ronald
B.Hoesterey,Ursula E.Kennedy,Gene A.Leyton,William D.
Mahoney,Philip Maurer,Tom Mays,Todd Murphy,James Neal,
Carrey J.Nelson,Chris Norby,Bob Perry,Richard 1.Polls,Don
R.Roth,Sal Sapien,J.R.“Bob”Siefen,Don E.Smith,Roger
R.Stanton,John H.Sutton,Peer A.Swan,Charles E.Sylvia,
James A.Wahner,Edna Wilson,Grace Winchell
NOES:None
ABSENT:Sally Anne Miller,Arthur G.Newton
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts
Nos.2,3,5,6,7,11,13 and 14 of Orange County,California,this 11th day
of May,1988.
Rita J.Brown,~ecretary
Boards of Directors,County.
Sanitation Districts Nos.i;2,3,5,
6,7,11,13 and 14 of Orange County,
California -