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HomeMy WebLinkAboutResolution 95-112 (REPEALED)RESOLUTION NO.95-112 REVISING DISTRICTS PROCEDURE FOR SETTLEMENT OF CLAIMS MADE AGAINST THE DISTRICTS:SETTLEMENT OF CLAIMS MADE BY THE DISTRICTS:COLLECTION OF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:SETTLEMENT OF CIVIL OR ADMINISTRATIVE ACTIONS:AND SETTLEMENT OF WORKER’S COMPENSATION 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;SETTLEMENT OF WORKER’S COMPENSATION ACTIONS;AND REPEALING RESOLUTION NOS.93- 13 and 90-89 LA **AALAAAA AL PA APP *AAAAA p pp pp pAp g.LAP PA APAPAP WHEREAS,claims for damages alleging personal injuries,bodily injuries, including death,and damages 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facilities,or who have been the subject of civil or administrative enforcement proceedings for violation,of the 1 REPEALED BY RESOLUTION 97-31 Districts’Wastewater Discharge Regulations Ordinance;and, WHEREAS,in the course of conducting the business affairs of the Districts,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;and, WHEREAS,claims for Workers’Compensation damages alleging personal injuries,including death,are periodically made against the Districts;and, WHEREAS,the Districts presently have no Workers’Compensation insurance in force,having previously determined to be legally self-insured;and, WHEREAS,the Districts have retained a claims administration service firm and special legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of Workers’Compensation claims made against the Districts;and, WHEREAS,cost efficiency relating to resolution of Workers’Compensation claims can be greatly improved by the adoption of certain policies relating to the resolution of said claims. 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: 2 ARTICLE I SETTLEMENT OF LIABILITY CLAIMS MADE AGAINST DISTRICTS Section 1.1 A liability reserve has been established for the payment of claims made against the Districts.Said reserve shall continue to be provided 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 necessary 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 $5,000.00 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 $50,000.00 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 3 settlement by negotiation in an amount exceeding $50,000.00 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,whenever it is determined 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 $1,000.00. 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 $5,000.00.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 4 in excess of 45 days and 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, with the concurrence of General Counsel 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 $50,000.00,may be compromised by acceptance of a sum less than the full amount due or may be written off 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 $50,000.00 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 or entity who owes a delinquent obligation to the Districts. Section 2.8 The Director of Finance is authorized to withhold the approval of 5 any such permits otherwise to be issued by the Districts to any person or entity 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)forty-five (45)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 any fees or charges,up to the amount of $50,000.00, are owed by an Industrial Waste Permittee and are delinquent or in dispute between the Permittee and District,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.This Section shall not apply to excess capacity charges,nor enforcement actions which are provided for in Article IV below.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 less than the full amount claimed as due by the District.This agreement may be entered into prior to or during the pendency of any litigation filed by the Districts to collect the amount owed. Section 3.2 Upon written request and establishment of good cause by an 6 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 twenty-four (24)months.The agreement shall provide for payment of interest on the principal amount owing at a rate equal to the Federal Reserve Board prime rate plus 2-1/2%.The prime rate shall be established as the rate set and in effect by the Los Angeles Federal Reserve Bank,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 suspension or revocation,as recommended by the General Counsel and the Director of Technical Services. Section 3.3 If the delinquent obligation is greater than $50,000.00,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. 7 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 Finance,Director of Technical Services,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 $50,000.00 and enforcement compliance orders deemed appropriate to ensure compliance with the Wastéwater Discharge Regulations Ordinance.This agreement may be entered into prior to or during the pendency of any administrative proceeding or litigation enforcement action. Section 4.2 The committee of the Director of Finance,Director of Technical Services,and General Counsel may negotiate and enter into a settlement agreement which includes a schedule of payments over a period of time not to exceed twenty-four (24)months,by the person or entity which is the subject of the enforcement action.The agreement shall provide for payment of interest on the principal amount owing at a rate equal to the Federal Reserve Board prime rate plus 2-1/2%.The prime rate shall be established as the rate set and in effect by the Los Angeles Federal Reserve Bank on the date of the agreement. Section 4.3 If the proposed settlement involves the payment of an amount greater than $50,000.00,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 8 action involving the Joint Districts. ARTICLE V SETTLEMENT OF WORKERS’COMPENSATION CLAIMS MADE AGAINST THE DISTRICTS Section 5.1 A minimum liability reserve has been established in the amount of $250,000.00 for the payment of claims made against the Districts.Said minimum 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;and Section 5.2 Each annual budget shall provide,in addition to the reserve established by Section 5.1,for the sufficient funds to provide a sufficient balance to meet projected expenses for payment of claims during the ensuing fiscal year;and Section 5.3 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 $5,000.00 per claimant.Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel;and, Section 5.4 In addition to special legal counsel selected by the Districts’ Workers’Compensation administrator,the General Counsel is authorized to retain the services of special legal counsel for purposes of representing the Districts in the defense of any Workers’Compensation claim,wherein he determines that specialized expertise is desirable or that the workload requires the utilization of outside counsel; and, 9 Section 5.5 A committee comprised of the General Manager,or his assignee, Director of Finance and General Counsel are authorized to review and make full settlement of any Workers’Compensation claim made against the Districts by payment of a sum not to exceed $25,000.00 in addition to the actual medical expenses and temporary disability payments 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;and, Section 5.6 All claims resulting in a recommended settlement by negotiation or stipulation in an amount exceeding $25,000.00 in addition to the actual medical expenses and temporary disability payments per claimant shall be submitted to and approved by the joint Boards of Directors. Section 5.7 Resolution Nos.93-13 and 90-89 are hereby repealed and made of no further effect. Section 5.8 This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting held Nov~nber 15,1995 10 STATE OF CALIFORNIA) )SS. COUNTYOF ORANGE ) I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation Districts Nos.1,2,3,5,6,7,11,and 14 of Orange County,California,do hereby certify that the foregoing Resolution No.95-112 was passed and adopted at a regular meeting of said Boards on the 15th day of November,1995,by the following vote,to wit: AYES:George Brown,John Collins,John C.Cox,Jr.,Jan Debay,Barry Denes,Shirley Dettloff,Norman Z.Eckenrode,James M. Ferryman,James H.Flora,Barry Hammond,Victor Leipzig,Wally Linn,Pat McGuigan,Margie L.Rice,Thomas R.Saltarelli,Sal A. Sapien,Sheldon S.Singer,William G.Steiner,Peer A.Swan, Charles E.Sylvia,Daniel T.Welch NOES:None ABSENT:Cecilia L.Age,Burnie Dunlap,Don R.Griffin,Mark A.Murphy, Glenn Parker,Julie Sa,Bob Zemel 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,and 14 of Orange County,California,this 15th day of November,1995. Penny Kyle,ret- Boards of D tors,ounty Sanitation Districts Nos.1,2,3,5,6,7,11,and 14 of Orange County,California J:\WPDOC~BS\FORMS\95\F1 2.112