To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Joana De Sousa, Risk Analyst and Erika Leahy, Risk Manager
TITLE:
Title
Government Tort Claims and Worker’s Compensation
LABEL
RECOMMENDED ACTION:
Recommendation
Approve first reading and introduction of an ordinance rescinding R2008-80 and R2019-076, and amending Napa Municipal Code Chapter 2.104, Modifying the Current Delegation of Authority to Settle Government Tort Claims and Workers’ Compensation Claims, and Delegating the Submittal of Employer Generated Industrial Disability Applications.
Body
DISCUSSION:
Government Law
California law provides a comprehensive framework for city governments to manage tort claims, workers' compensation, and public employee retirement. The California Tort Claims Act allows cities to adopt local procedures and authorizes City Councils to delegate claims administration and settlement authority.
The Workers' Compensation laws establish strict criteria for claim acceptance and benefit provision, emphasizing liberal interpretation to favor employee recovery. Claims can be resolved through "Stipulations with Request for Award," "Findings and Award," or "Compromise and Release," each with distinct implications for ongoing liability.
The Public Employees' Retirement Law mandates City Council involvement in disability retirement applications to CalPERS, though this responsibility can be delegated to the City Manager. City Councils are also empowered to delegate authority for settling various actions against the city, including lawsuits and workers' compensation claims. This legal structure, which includes provisions from CalPERS and the California Government Code, enables cities to efficiently manage claims, settlements, and retirement processes through strategic delegation of authority.
City of Napa
Government Code Section 949 allows the City Council to delegate authority for settling various actions against the city, including claims. Additionally, CalPERS and the California Government Code establish obligations, rights, and benefits for PERS members. In the specific case of Napa, the City's Municipal Code regarding claims has remained unchanged since 1954. However, the City has taken steps to modernize its approach through Resolution No. R2008-80, which delegated administrative functions and claim settlement authority up to $50,000 to the City Manager, with the option for further delegation. Furthermore, Administrative Regulation 6.01.101 extended settlement authority for Workers' Compensation and Government Tort Claims to the City Manager, Assistant City Manager, Risk Manager, and Human Resources Director.
These measures demonstrate Napa's efforts to streamline its claim management processes within the framework provided by state law.
Recommendation
To approve the first reading and introduction of an ordinance rescinding R2008-80 and R2019-076, and amending Napa Municipal Code Chapter 2.104, Modifying the Current Delegation of Authority to Settle Government Tort Claims and Workers’ Compensation Claims, and Delegating the Submittal of Employer Generated Industrial Disability Applications
FINANCIAL IMPACTS:
None
CEQA:
The City Manager has determined that the Recommendation Action described in this staff report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060 (c).
DOCUMENTS ATTACHED:
ATCH 1 - Ordinance
EX A - Resolution R2008-80
EX B - Resolution R2019-076
NOTIFICATION:
None