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HomeMy WebLinkAboutOCSD 98-23 (REPEALED),.,.. RESOLUTION NO. OCSD 98-23 I. 1 · I ADOPTING DISTRICT'S PROCEDURES FOR SETTLEMENTOF : CLAIMS MADE AGAINST THE DISTRICT: SETTLEMENT OF . : I CLAIMS MADE BY THE DISTRICT: COLLECTION OF : · DELINQUENT ACCOUNTS OWING TO THE DISTRICT: i SETTLEMENT OF CIVIL OR ADMINISTRATIVE ACTIONS: AND 1 SETTLEMENT OF WORKER'S COMPENSATION ACTIONS . i A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE : COUNTY SANITATION DISTRICT ADOPTING DISTRICT PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINSll THE DISTRICT; SETTLEMENT OF CLAIMS MADE BY THE 1 DISTRICT; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE DISTRICT; SETTLEMENT OF CIVIL OR j ADMINISTRATIVE ENFORCEMENT ACTIONS; AND I SETTLEMENT OF WORKER'S COMPENSATION ACTIONS ' I I WHEREAS, claims for damages alleging personal injuries, bodily injuries! including death, and damages to real and personal property, are periodically made against the District; and, WHEREAS, the District presently has liability insurance in force with a significant self-insured retention, having previously been self-insured; and, I WHEREAS, the District has 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 District; and, 1 ; I WHEREAS, the District has occasion to seek recovery against persons or entities who have caused loss or damage to the District, 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 pf the District's Wastewater Discharge Regulations Ordinance; and, 1 WHEREAS, in the course of conducting the business affairs of the District, certain accounts receivable or other obligations owing to the District become ~ delinquent, and in fact, uncollectible; and, ' 2000-00026 49982_1 1 REPEALED BY OCSD 11-04 I WHEREAS, cost efficiency relating to collection of delinquent accounts ~n be greatly improved by the adoption of certain policies relating to the collection of said accounts; and, : I WHEREAS, claims for worker's compensation damages alleging personal injuries, including death, are periodically made against the District; and, ; I WHEREAS, the District presently has only major stop loss worker's compensation insurance in force, having previously determined to be legally self- insured; and, i WHEREAS, the District has retained a claims administration service firm 1and special legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of worker's compensation claims made against the District; and, I I WHEREAS, cost efficiency relating to resolution of worker's compensatiqn claims can be greatly improved by the adoption of certain policies relating to the resolution of said claims. : I I NOW, THEREFORE, the Board of Directors of Orange County Sanitation I District, DOES HEREBY DETERMINE, RESOLVE AND ORDER: ARTICLE I SETTLEMENT OF LIABILITY CLAIMS MADE AGAINST DISTRICT Section 1.1: A liability reserve has been established for the payment of ~!aims made against the District. Said reserve shall continue to be provided in each annual I budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense. I I I Section 1.2: Each annual budget shall provide, in addition to the reserve I established by Section 1.1, for the necessary funds to provide a sufficient balance to I meet projected expenses for loss and payment of claims during the ensuing fisGal year. I Section 1.3: A claims administration firm is authorized to be retained, a~d said firm is hereby granted authorization to make payments and settlements of claims made against the District in an amount not to exceed $5,000.00 per claimant. Said fifim shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. ' 2()()()..()()()26 49982_1 2 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 District for contract or liability damages not otherwise covered by insurance by payment of a sum not to exceed $50,000.00 1: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 provi~e the approval to the District's 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 District. ' Section 1.6: The General Counsel, with concurrence of the General Ma~ager, is authorized to retain the services of special legal counsel for purposes of representing I the District 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 DISTRICT Section 2.1: The Director of Finance is authorized to write off as an [ uncollectible debt any delinquent obligation owing to the District in excess of 90 days and not exceeding the sum of $1,000.00. i I I 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 District in excess of 45 days and not exceeding the sum of $5,000.00. Ninety (SO) days after assigning the obligation for collection, the Director of Finance is authorizea to write off as an uncollectible debt any portion of the obligation which is still outstanding. I i Section 2.3: The Director of Finance, in his discretion, is authorized to f!1e the necessary proceedings in the small claims court of the appropriate judicial distr,ict of the County of Orange, in order to collect any delinquent obligation owing to the Dis~rict in · excess of 45 days and not exceeding the sum of $5,000.00. Upon obtaining a ~ judgment in favor of the District, the Director of Finance and General Counsel shall take all legal measures necessary to enforce the terms of the judgment. Ninet~ (90) days after receiving a final judgment in favor of the District, the Director of Finance, with the concurrence of the General Counsel, is authorized to write off as an i uncollectible debt, any portion of the obligation which is still outstanding. 2000-00026 49982_1 3 ' I Section 2.4: Notwithstanding the authority provided in Sections 2.2 and 2.3 above, any obligation owing to the District, not exceeding the sum of $50,000.00, may I be compromised by acceptance of a sum less than the full amount due or may t>e written off as uncollectible upon that determination being made, after investigation by a Committee comprised of the General Manager, or his designee, the General Co,lmsel, 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 District, who shall submit his recommendation to the Board of Directors as to the method of collection or disposition of said account. · I Section 2.6: In addition to the above authorization, the Director of Finanee is directed to exercise all available lawful methods to ensure prompt and full recovery of all obligations owing to the District. : I Section 2. 7: The Director of Finance is authorized to offset against any sums I held on deposit by the District on behalf of any person or entity who owes a delinquent obligation to the District. : I i Section 2.8: The Director of Finance is authorized to withhold the approval of any such permits otherwise to be issued by the District to any person or entity who has an outstanding debt obligation owing to the District until such time as said debt i obligation is paid in full. 1 Section 2.9: Delinquent obligations, as used in this Resolution, shall inqlude any invoice submitted by the District for services rendered or for reimbursemeni of damages caused to District property or personnel, which has not been paid within: I I (a) The time prescribed by the District Ordinance or Resolutio~; or (b) Forty-five (45) days from the date of invoice, whichever is later. ARTICLE Ill COLLECTION OF FEES AND CHARGES RELATING TO INDUSTRIAL WASTE DISCHARGES I Section 3.1: In the event any fees or charges, up to the amount of $50,<;}00.00, are owed by an Industrial Waste Permittee and are delinquent or in dispute beo/'een 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 District, a settlement agreement relating to the financial obligation I owing to the District. This Section shall not apply to enforcement actions which are 20Q0.00026 49982_1 4 I I I I specifically provided for in Article IV below. Said agreement shall be based upqn a showing of good cause and a reasonable dispute between the District and the 1 Permittee, and can provide for c;tG:C~Pl~oce of a sum less than the full amount cl~imed as due by the District. This agreement may be entered into prior to or during th~ pendency of any litigation filed by the District to collect the amount owed. 1 Section 3.2: Upon written request and establishment of good cause by ~n Industrial Waste Permittee, the Committee of the Director of Finance, Director of Technical Services, and General Counsel may negotiate and enter into a defe~ed 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 Di~trict's Wastewater Discharge Regulations Ordinance. : ! I Section 3.2.1 : The installment payment agreement shall be for a m~ximum 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 th'.e 25th day of the month preceding the earlier of: I (i) forbearance; or The date of execution of the contract to make the lo~n or I (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).) i I The agreement shall provide for payment of all costs of preparing and i administering the payment agreement, including legal and administrative costs.: I I 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 S . I erv1ces. , ! Section 3.3: If the delinquent obligation is greater than $50,000.00, any~ compromise settlement or any deferred payment agreement shall be submittedi to and approved by the Board of Directors, who shall prescribe the terms and conditiors. 200000026 49982_1 5 I I I I ARTICLE IV SETILEMENT OF CIVIL ADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1: In the event the District initiates or intends to initiate any civil or administrative enforcement actions based upon alleged violations of the District.'s Wastewater Discharge Regulations Ordinance, a Committee comprised of the ~irector of Finance, Director of Technical Services, and General Counsel are authorized to negotiate and enter into, on behalf of the District, a settlement agreement, which may include both payment to the District 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 bction. I Section 4.2: The Committee of the Director of Finance, Director of Technical I 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 agr~ement 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 I (b) Five (5%) percent per annum, plus the rate prevailing on tt1e 25th day of the month preceding the earlier of: · (i) forbearance; or I The date of execution of the contract to make the loan or I I (ii) The date of making the loan or forbearance. (Established by the Federal Reserve Bank of San Francisco on advances to m~mber banks under Sections 13 and 13(a) of the Federal Reserve Act (commonly referred to as the "discount" rate).) I I Section 4.3: If the proposed settlement involves the payment of an amo~nt greater than $50,000.00, the settlement shall be submitted for approval by the Board of Directors of the District. l 2000-00026 49982_1 6 r . ARTICLEV SETTLEMENT OF WORKER'S COMPENSATION CLAIMS MADE AGAINST THE DISTRICT 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 District. 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 reserv~ 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. I 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 claim~ made against the District 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. i Section 5.4: In addition to special legal counsel selected by the District's Worker's Compensation Administrator, the General Counsel is authorized to retain the services of special legal counsel for purposes of representing the District in the l defense of any worker's compensation claim, wherein he determines that specialized expertise is desirable or that the workload requires the utilization of outside counsel. i Section 5.5: A Committee comprised of the General Manager, or his de~ignee, Director of Finance and General Counsel are authorized to review and make full settlement of any worker's cqmpensation claim made against the District by payment of a sum not to exceed $25,000.00, in addition to the actual medical expenses anclt temporary disability payments per claimant. In the event a claim results in litigation, I which is being legally defended by other than the District's General Counsel, th's Committee shall review and provide the approval to the District's special legal eounsel within the same limits. : ' I Section 5.6: All claims resulting in a recommended settlement by negoti;ation or stipulation in an amount exceeding $25,000.00, in addition to the actual medi~I expenses and temporary disability payments per claimant, shall be submitted to and approved by the Board of Directors. ' 2000-00026 49982_1 7 Section 5. 7: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a Special Meeting held July 1, 1998. 2000-00026 49982_1 ~·~->2 Chair 8