HomeMy WebLinkAboutResolution 1993 - 0013RESOLUTION NO.93-13
REVISING DISTRICTS PROCEDURE FOR SETTLEMENT OF
CLAIMS MADE AGAINST THE DISTRICTS;SETTLEMENT
OF CLAIMS MADE BY THE DISTRICTS;COLLECTION OF
DELINQUENT ACCOUNTS OWING TO THE DISTRICTS;AND
SETTLEMENT OF CIVIC OR ADMINISTRATIVE ENFORCEMENT
ACTIONS
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;COLLECTION OF
DELINQUENT ACCOUNTS OWING TO THE DISTRICTS;
SETTLEMENT OF CIVIL OR ADMINISTRATIVE ENFORCEMENT
ACTIONS;AND REPEALING RESOLUTION NO.88-61
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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 within 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,who have been assessed fines,charges or special fees
relating to their use of District facilities,or who have been
the subject of civil or administrative enforcement proceedings
for violation of the Districts’Wastewater Discharge Regulations
Ordinance;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;and,
WHEREAS,cost efficiency relating to collection of
delinquent accounts.can be greatly improved by the adoption of
certain policies relating to the 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
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 firm 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 committee comprised of the General Manager
or his designee,the Director of Finance and the General 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
$25,000.00 per claimant.In the event a claim results in
litigation,which is being legally defended by other than the
Districts’General Counsel,this committee shall review and
provide the approval to the Districts’special legal counsel
within the same limits.
Section 1.5 All claims for damages resulting in a judgment
or a recommended settlement by negotiation in an amount exceeding
$25,000.00 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.
Section 1.6 The General Counsel is authorized to retain
the services of special 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,a conflict of interest exists or
could arise with the office of General Counsel or that the
workload of the office of General Counsel requires the
utilization of special 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 firm of his
choosing,any delinquent obligation owing to the Districts in
excess of 45 days and not exceeding the sum of $2,500.00.Ninety
(90)days after assigning the obligation for collection,the
Director of Finance is authorized to write of f 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 45 days and not exceeding the sum of
$2,500.00 or,with the concurrence of General Counsel,not
exceeding the sum of $5,000.00.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 of f 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 23 above,any obligation owing to the
Districts,not exceeding the sum of $25,000.00,may be
compromised by acceptance of a sum lesser than the full amount
due or may be written of f as uncollectible,upon that
determination being made,after investigation by a committee
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 $25,000.00 to the General
Counsel for the Districts,who shall submit his recommendation 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
methods to 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.
Section 2.8 The Director.of Finance is authorized to
withhold the approval of any such 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 the 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 DISCHARGES
Section 3.1 In the event of any fees or charges being owed
by an Industrial Waste Permittee up to the amount of $25,000.00,
a committee comprised of the Director of Finance,Director of
Technical Services and General Counsel are authorized to
negotiate and enter into,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 permittee,the committee 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 incorporated as part of or
separate and in addition to any enforcement compliance agreements
authorized by the provisions of the Districts’Wastewater
Discharge Regulations Ordinance.
Section 3.2.1 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 a rate equal to prime rate plus 2-1/2%.The prime rate
shall be established as the rate set and in effect by Bank of
America,San Francisco,California,on the date of the agreement.
The agreement shall provide for payment of all costs of preparing
and administering the payment agreement,including legal and
administrative 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
recommended by the General Counsel.
Section 3.3 If the delinquent obligation is greater than
$25,000.00,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.
ARTICLE IV
SETTLEMENT OF CIVIL ADMINISTRATIVE
ENFORCEMENT ACTIONS
Section 4.1 In the event that the Districts initiate or
intend to initiate any civil or administrative enforcement
actions based upon alleged violations of the Districts’
Wastewater Discharge Regulations Ordinance,a committee comprised
of the Director of Technical Services,the Source Control Manager
and the General Counsel are authorized to negotiate and enter
into,on behalf of the Districts,a settlement agreement,which
may include both payment to District in an amount up to
$25,000.00 and enforcement compliance orders deemed appropriate
to ensure compliance with the Wastewater Discharge Regulations
Ordinance.This agreement may be entered into prior to or during
the pending of any administrative proceeding or litigation
enforcement action.
Section 4.2 The committee of the Director of Technical
Services,Source Control Manager and General Counsel may
negotiate and enter into a settlement agreement which includes a
schedule of payments over time by the person or entity which is
the subject of the enforcement action.
Section 4.3 If the proposed settlement involves payment
greater than $25,000.00,the settlement shall be submitted for
approval by the Board of Directors of the involved District or
the Joint Boards in the event of an enforcement action involving
the Joint Districts.
Section 4.4 That Resolution No.88—61 is hereby repealed
and made of no further effect.
Section 4.5 This Resolution is effective immediately upon
adoption.
PASSED AND ADOPTED at a regular meeting held February 10,
1993.
STATE OF CALIFORNIA)
)SS.
COUNTY OF ORANGE )
I,PENNY KYLE,Assistant 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.93-13 was passed and adopted at
a regular meeting of said Boards on the 10th day of February,
1993,by the following vote,to wit:
AYES:Fred Barrera,Bob Bell,Buck Catlin,John Collins,
John C.Cox,Jr.,Jan Debay,Burnie Dunlap,
James V.Evans,James M.Ferryman,James H.Flora,
Don R.Griffin,John N.Guiiixson,Barry Hammond,
Gail Kerry,Frank Laszlo,Victor Leipzig,
Thomas E.Lutz,William D.Mahoney,Eva G.Miner,
Maria Moreno,Ted Noreno,Carrey J.Nelson,
Glenn Parker,Irv Pickier,Charles E.Puckett,
Miguel Pulido,Don R.Roth,Thomas R.Saltarelli,
Phil Sansone,Sal Sapien,Jim Silva,Sheldon S.
Singer,Roger R.Stanton,Peer A.Swan,Charles E.
Sylvia,James A.Wahner,Henry W.Wedaa,Grace H.
Winchell,George L.Ziaket
NOES:None
ABSENT:None
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 10th day of February,1993.
Penny Kyle,ssi.nt Secretary
Boards of D ect 5,County
Sanitation Districts NQS.1,2,3,
5,6,7,11,13 and 14 of
Orange County,California