HomeMy WebLinkAboutOC SAN 21-05
OC SAN 21-05-1
RESO LUTION NO. OC SAN 21-05
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT ADOPTING PROCEDURES
FOR SETTLEMENT OF CLAIMS MADE AGAINST THE
ORANGE COUNTY SANITATION DISTRICT SETTLEMENT
OF CLA IMS MADE BY T HE ORANGE COUNTY SANITAT ION
DISTRICT; COLLECT ION OF DELINQUENT ACCOUNTS
OWING TO THE ORANGE COUNTY SANITATION DISTRICT:
SETTLEMENT O F CIVIL OR ADMI NISTRATIVE
ENFORCEMENT ACTIONS; AND SETTLEMENT OF
WORKERS' COMPENSATION ACTIONS, AND REPEALING
RESOLUTION NO. OCSD 11-04
WHEREAS claims for damages alleging personal injuries, bodily injuries,
including death , and damages to real and personal property , are periodically made
aga inst Orange County Sanitation District (OC San); and ,
WHEREAS OC San presently has liabi lity insurance in force with a significant
self-insured retention, having previously been self-insured ; and,
WHEREAS OC San has the need fo r the retent ion of claims adm inistration
services and legal counsel who shall be vested with certain limited author ity to
accomplish a favo rable disposition of claims made against OC San; and,
WHEREAS claims for workers' compensation damages alleging personal
injuries, including death , are periodically made against OC San; and ,
WHEREAS OC San presently has major stop loss workers ' compensation
insurance in force ; and ,
WHEREAS OC San has retained a claims administration se rvice firm and special
legal counsel who shall be vested with certain limited autho rity to accomplish a
favorable disposition of workers ' compensation claims made against OC San as
provided herein; and
WHEREAS cost efficiency relating to resolution of workers' compensation claims
can be greatl y improved by the adopt ion of certain policies relating to the resolution of
said claims; and
W HEREAS Government Code Section 935.4 authorizes the Board of Directors
to delegate by resolution the authority to an employee to settle pre-litigation claims
OC SAN 21-05-2
aga inst OC San up to $50 ,000 ; and
W HEREAS Gov ernme nt Code section 935.2 autho rizes the Board of Directors
to delegate by resolution the author ity to a committee of at least th ree members to
settle pre-litigation claims ; and
W HEREAS Government Code Section 949 authorizes the Board of Directors to
delegate authority to an employee or its attorney to settle lawsuits ; and
W HEREAS OC San has occasion to seek recovery against persons or entities
w ho have caused loss or damage to OC San, w ho have been assessed fines ,
charges , or spec ial fees relating to thei r use of OC San facilities, or who have been
the subject of civil or administrative enforcement proceedings for violation of OC
San's Wastewater Discharge Regulations Ordinance; and
W HEREAS in the course of conducting the business affairs of OC San, certa in
accounts receivable or other obligat ions ow ing to OC San become delinquent, and in
fact, uncollectible; and
W HEREAS cost efficiency relating to collect ion of delinquent accounts can be
greatly improved by the adoption of certain policies relating to the collection of said
accounts; and
W HEREAS the Board of Directors desires to update, amend, and
reestab lish procedures for the administration of claims against and by OC San.
NOW , THEREFORE, the Board of Directors of Orange County Sanitation
District, DOES HEREBY DETERMI NE , RESOLV E AND ORDER:
OC SAN 21-05-3
ARTICLE I
SETTLEMENT OF LIABILITY CLAI MSMADE
AGAINST THE
ORANGE COUNTY SANITATION DISTRICT
Section 1.1: A liability reserve has been establ ished for the payment of claims
made against OC San. 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 add ition to the reserve
establ ished by Sect ion 1.1, for the necessary funds to provide a sufficient balance to
meet proj ected 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 OC San in an amount not to exceed $5 ,000.00 per cla imant. Said firm
shall be reta ined in accordance with the terms and conditions set forth in an
agreement approved by the General Counsel.
Section 1.4: A Committee compr ised of the General Manager or his designee
and Director of Finance and Administrative Services are authorized to review and
make full settlement of any claims made against OC San 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 OC San's Genera l Counsel , this Committee shall
review and provide the approval to OC San'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 Directo rs of OC San prior to settlement
payments being made.
Section 1.6: The General Counsel, with concurrence of the General Manager,
is authorized to retain the services of special legal counsel fo r purposes of
representing OC San in the defense of any claim or matter of litigation, w henever it
is dete rmined that specia lized expertise or experience is desirable, a conflict of
interest exists or could arise w ith the Office of General Counsel , or that the workload
of the Office of General Counse l requires the utilization of specia l counsel.
OC SAN 21-05-4
ARTICLE II
COLLECTION OF DELINQUENT OBLIGATIONS OWING TO
THE ORANGE COUNTY SANITATION DISTRICT
Section 2 . 1: The Director of Finance and Administrati ve Services is authorized
to write off as an uncollectible debt any delinquent obl igat ion owing to OC San in
excess of 90 days and not exceed ing the sum of $25,000.00 .
Section 2.2: The Director of Finance and Administrati ve Services , in his
discretion , is author ized to assign for collection to a person or firm of his choosing ,
any delinquent obl igation owing to OC San in ex cess of 45 day s and not exceeding
the sum of $100,000 .00 . Ninety (90) da ys after assigni ng the obl igation for collect ion ,
the Director of Finance and Admi nistrative Services is authorized to write off as an
uncollect ible debt any portion of the obligat ion w hich is still outstandi ng.
Section 2.3: The Director of Finance and Administrat ive Services shall fo rward
any delinquent obligation in excess of $100,000 .00 to the General Counsel for OC
San, who shall subm it his recommendation to the Board of Directors as to the method
of collect ion or disposition of said account.
Section 2.4: The Director of Finance and Administrat ive Services, in his
discretion , is author ized to file the necessary proceedings in the small claims court of
the appropr iate judicial district of the County of Orange , in order to collect any
delinquent obligation owing to OC San in excess of 45 day s and not exceeding the
sum of $5,000.00. Upon obtaining a judgment in favor of OC San, the Director of
Finance and Administrat ive Services and General Counsel shall take all legal
measures necessary to enforce the terms of the judgment. Ninety (90) days after
receiving a fina l judgment in fa vor of OC San, the Director of Finance and
Administrative Services, with the concurrence of the General Counsel, is author ized
to write off as an uncollectible debt , any portion of the obligation w hich is still
outstanding.
Section 2.5: Notwithstanding the authority provided in Sections 2.2 and 2.3
above, any obligation owing to OC San, not exceeding the sum of $100,000.00, 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 Comm ittee comprised of the General Manager, or his designee , and the Director
of Finance and Admi nistrat ive Serv ices.
Section 2.6: In add ition to the above authorization, the Directo r of Finance
and Administrative Services is directed to exercise all available lawful methods to
ensure prompt and full recovery of all obligations owing to OC San.
OC SAN 21-05-5
Section 2.7: The Director of Finance and Administrative Services is authorized
to offset against any sums held on deposit by OC San on behalf of any person or
entity who owes a delinquent obligation to OC San.
Section 2.8: The Director of Finance and Administrat ive Services is authorized
to withho ld the approval of any such permits otherwise to be issued by OC San to
any person or entity who has an outstanding debt obligation owing to OC San until
such time as said debt obligation is paid in full.
Section 2.9: Delinquent obl igations, as used in this Resolution, shall include
any invoice submitted by OC San for services rendered or for reimbursement of
damages caused to OC San property or personnel , which has not been paid within:
(a) The time prescribed by OC San Ordinance or Resolution;
(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
Section 3.1: In the event any fees or charges, up to the amount of $100 ,000.00,
are owed by an Industrial Waste Permittee and are delinquent or in dispute between
the Permittee and OC San, a Committee com prised of the Director of Finance and
Admi nistrative Services, and Director of Environmental Services are author ized to
negotiate and enter into , on behalf of OC San, a settlement agreement relating to the
financ ial obligation owing to OC San. This Section shall not apply to enforcement
actions which are specifically provided for in Article IV below. Said agreement shall
be based upon a showing of good cause and a reasonable dispute between OC San
and the Permittee and can provide for acceptance of a sum less than the full amount
claimed as due by OC San. This agreement may be entered into prior to or during the
pendency of any litigation filed by OC San to collect the amount owed.
Section 3.2: Upon wr itten request and establishment of good cause by an
Industrial Waste Permittee, the Committee of the General Manager, or his designee,
the Director of Finance and Administrative Services, and Director of Environmental
Services, may negotiate and enter into a deferred payment agreement with the
Permittee in accordance with the guidelines established herein. Said agreement may
OC SAN 21-05-6
be incorporated as part of , or separate and in addit ion to , any enforcement
compl iance agreements author ized by the provisions of OC San's 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 ear lier 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. (Establ ished 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
adm inistering the payment agreement , including legal and admin istrat ive 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
revocat ion , as recommended by the General Counse l and the Director of
Environmental Services.
Section 3.3: If the del inquent obligation is greate r than $100,000.00, any
compromise settlement or any deferred payment agreement shall be submitted to and
app roved by the Board of Directors, who shall prescribe the terms and conditions.
OC SAN 21-05-7
ARTICLE IV
SETTLEMENT OF CIVIL ADMINISTRATIVE
ENFORCEMENT ACTIONS
Section 4.1: In the event OC San initiates or intends to initiate any civil or
administrative enforcement actions based upon alleged violations of OC San's
Wastewater Discharge Regulations Ordinance, a Committee comprised of the
General Manager, or his designee, the Director of Finance and Admi nistrative
Services , and Director of Environmental Services are author ized to negotiate and
enter into , on behalf of OC San, a settlement agreement , which may include both
payment to OC San in an amount up to $100 ,000.00, and enforcement compliance
orders deemed appropriate to ensure compl iance 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 Comm ittee of the Genera l Manager , Director of Finance and
Admi nistrative Services , and Director of Environmental Services 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 wh ich 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 ear lier 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).)
Section 4.3: If the proposed settlement involves the payment of an amount
greater than $100 ,000.00, the settlement shall be submitted for approval by the
Board of Directors of OC San.
OC SAN 21-05-8
ARTICLE V
SETTLEMENT OF WORKERS' COMPENSATION
CLAIMS MADE AGAI NST THE
ORANGE COUNTY SANITATION DISTRICT
Section 5. 1: A workers’ compensation liability reserve has been established
for the payment of workers’ compensation claims made against OC San. Said reserve
shall continue to be provided in each annual budget to ensure that sufficient funds are
available to provide for payment of the amounts incurred as a workers’ compensation
liability loss or expense.
Section 5. 2: Each annual budget shall prov ide, in add ition to the reserve
establ ished by Sect ion 5.1 , for the sufficient funds to prov ide a sufficient balance to
meet proj ected expenses for payment of claims during the ensuing fiscal year.
Section 5.3: A designated claims administrator is authorized to be retained
and said administrator is hereby granted authorization to make payments and
settlements of workers’ compensation claims made against OC San in an amount
not to exceed $5 ,000 .00 per cla im. Said administrator shall be retained in
accordance with the terms and conditions set forth in an agreement approved by
the General Counsel.
Section 5.4: The Director of Human Resources or designee is authorized to
review and make full settlement of any workers’ compensation claims made against
OC San by payment of an amount not to exceed $25,000.00 per claim.
Section 5.5: A Committee comprised of the General Manager or designee,
Assistant General Manager (Director of Finance & Administrative Services) or
designee, and Director of Human Resources or designee are authorized to review
and make full settlement of any workers' compensation claim made against OC
San resulting in a recommended settlement by negotiation by payment of a sum not
to ex ceed $50 ,000.00 per claim, in add ition to the medical expenses and
associated costs to include but not limited to medical and psychological treatment,
review, devices, medication, physical therapy,, temporary disab ility payments, and
permanent disability payments per claim. In the ev ent a claim results in litigation ,
which is being legally defended by specialized counsel other than OC San's
Genera l Counsel , this Committee shall review and provide the approval to OC
San's special legal counsel within the same limits .
Section 5. 6: All workers’ compensation claims resulting in a recommended
settlement by negotiation in an amount exceed ing $50,000.00 , in addition to the
med ical ex penses and associated costs to include but not limited to medical and
psychological treatment, review, devices, medication, physical therapy, temporary
disability payments, and permanent disability payments per claim, shall be submitted
to and approv ed by the Board of Directors of OC San prior to settlement payments
OC SAN 21-05-9
being made.
Section 5.7: In addition to specialized legal counsel selected by OC San, the
General Manager is authorized to retain the services of specialized legal counsel for
purposes of representing OC San in the defense of any workers’ compensation claim,
wherein the General Manager determines that specialized expertise is desirable, and
the utilization of outside counsel is required.
Section 6 .1: This Resolution supersedes Resolution No. OCSD 11-04,
w hich shall be repealed in its entirety as of the date this Resolution becomes
effective. In the event this Resolution does not become effective, Resolution No.
OCSD 11-04 shall remain in full force and effect.
Section 6.2: This Resolution is effective immediately upon adoption.
PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange
County Sanitation District held March 24, 2021.
David John Shawver
Chairman of the Board of Directors
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
David John Shawver (Mar 25, 2021 11:24 PDT)
David John Shawver
Kelly Lore (Mar 29, 2021 08:05 PDT)
Kelly Lore
OC SAN 21-05-10
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District,
do hereby certify that the foregoing Resolution No. OC SAN 21-05 was passed and
adopted at a regular meeting of said Board on the 24th day of March 2021, by the
following vote, to wit:
AYES: Brad Avery, Stacy Berry, Art Brown, Kim Carr, Doug Chaffee,
Mark Chirco, Stephen Faessel, Ryan Gallagher, Marshall
Goodman, Patrick Harper, Brooke Jones, Steve Jones,
Anthony Kuo, Andrew Nguyen, Robert Ooten, Glenn Parker,
David Shawver, Jesus Silva, Chad Wanke, John Withers,
Chad Zimmerman and Schelly Sustarsic (Alternate).
NOES: None.
ABSTENTIONS: Rose Espinoza
ABSENT: Johnathan Ryan Hernandez and Kim Nichols
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 24th day of March 2021.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
Kelly Lore (Mar 29, 2021 08:05 PDT)
Kelly Lore
Resolution OC SAN 21-05
Final Audit Report 2021-03-29
Created:2021-03-25
By:Kelly Lore (klore@ocsd.com)
Status:Signed
Transaction ID:CBJCHBCAABAAoBxP6258IcP2KFuQ2xzmAQQKQFPhno9w
"Resolution OC SAN 21-05" History
Document created by Kelly Lore (klore@ocsd.com)
2021-03-25 - 2:54:16 PM GMT- IP address: 47.176.92.30
Document emailed to David John Shawver (dshawver1@att.net) for signature
2021-03-25 - 2:55:06 PM GMT
Email viewed by David John Shawver (dshawver1@att.net)
2021-03-25 - 6:23:53 PM GMT- IP address: 69.147.89.254
Document e-signed by David John Shawver (dshawver1@att.net)
Signature Date: 2021-03-25 - 6:24:31 PM GMT - Time Source: server- IP address: 98.149.71.112
Document emailed to Kelly Lore (klore@ocsd.com) for signature
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Email viewed by Kelly Lore (klore@ocsd.com)
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Document e-signed by Kelly Lore (klore@ocsd.com)
Signature Date: 2021-03-29 - 3:05:45 PM GMT - Time Source: server- IP address: 47.176.92.30
Agreement completed.
2021-03-29 - 3:05:45 PM GMT