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HomeMy WebLinkAboutResolution 97-31 (SUPERSEDED)•0 RESOLUTION NO.97-31 REVISING DISTRICTS’PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINST THE DISTRICTS:SETTLEMENT OF CLAIMS MADE BY THE DISTRICTS:COLLECTION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 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 NO.95-112 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 liability insurance in force with a significant self-insured retention,having previously been 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,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proceedings for violation of the Districts’Wastewater Discharge Regulations Ordinance;and, 2000-00026 49882 1 1 SUPERSEDED by OCSD 11-04 WHEREAS,in the course of conducting the business affairs of the Districts, certain accounts receivable or other obligations owing to the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 worker’s compensation damages alleging personal injuries,including death,are periodically made against the Districts;and, WHEREAS,the Districts presently have only major stop loss worker’s 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 worker’s compensation claims made against the Districts;and, WHEREAS,cost efficiency relating to resolution of worker’s 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,II,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 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. 2000-00026 499821 2 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, Director of Finance,and 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 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,with concurrence of the General Manager,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. 2000-00026 49982 1 3 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 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 the 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,the General Counsel, and Director of Finance. 2000-00028 49982 1 4 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 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 Ill 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 2000-00026 49982 1 5 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 Districts.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 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 24 months.The agreement shall provide for payment of interest on the principal amount owing at a rate not exceeding the higher of: (a)Ten (10%)percent per annum;or (b)Five (5%)percent per annum,plus the rate prevailing on the 25th day of the month preceding the earlier of: (i)The date of execution of the contract to make the loan or forbearance;or (ii)The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a)of the Federal Reserve Act (commonly referred to as the “discount”rate).) 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 2OOO~OOO26 49982 1 6 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. ARTICLE IV SETTLEMENT OF CIVIL ADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1 In the event 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 General Counsel are authorized to negotiate and enter into,on behalf of the Districts,a settlement agreement,which may include both payment to the Districts in an amount up to $50,000.00,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 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 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 not exceeding the higher of: (a)Ten (10%)percent per annum;or (b)Five (5%)percent per annum,plus the rate prevailing on the 25th day of the month preceding the earlier of: (i)The date of execution of the contract to make the loan or forbearance;or 2000-00026 49982 1 7 (ii)The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to member banks under Sections 13 and 13(a)of the Federal Reserve Act (commonly referred to as the “discount”rate).) 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 action involving the Joint Districts. ARTICLE V SETTLEMENT OF WORKER’S 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. 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. 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. Section 5.4 In addition to special legal counsel selected by the Districts’ Worker’s 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 worker’s compensation claim,wherein he determines that specialized 2000.00026 49982 1 8 expertise is desirable or that the workload requires the utilization of outside counsel. Section 5.5 A Committee comprised of the General Manager,or his designee, Director of Finance and General Counsel are authorized to review and make full settlement of any worker’s 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 District’s General Counsel,this Committee shall review and provide the approval to the Districts’special legal counsel within the same limits. 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 No.95-112 is 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 September 24,1997. 2000.00026 49982 1 9 STATEOFCALIFORNIA ) )SS. COUNTY OF ORANGE ) I,PENNY KYLE,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.97-31 was passed and adopted at a regular meeting of said Boards on the 24th day of September,1997,by the following vote,to wit: AYES:Steve Anderson;George Brown;Tom Carroll;John Collins;Jan Debay; Barry Denes;Shirley Dettloff;Norman Z.Eckenrode;James M.Ferryman; Mark Leyes;Patsy Marshall;Pat McGuigan;Eva Minor-Bradford;Chris Norby;John Noyes;Margie Rice;Thomas R.Saltarelli;Mark Schwing; William G.Steiner;Dave Sullivan;Peer A.Swan;Charles E.Sylvia;Bob Zemel NOES:None ABSENT:Brian Donahue;Burnie Dunlap;Mark A.Murphy;Christina Shea IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official seal of County Sanitation District No.I on behalf of itself and Districts Nos.2,3,5,6,7, 11,13 and 14 of Orange County,California,this 24th day of September,1997. Penny KyIe(S~cr~t~ry Boards of Dic~ctcks~County Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California H:\wp.dta%admin\BS\FORMS~97\F1 2.031 .doc