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HomeMy WebLinkAboutCC Reso 2018-25 - Authorizing REMIF and 3rd Party to Accept-Reject Claims RESOLUTION NO. 2018-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE DELEGATION OF CLAIMS ADMINISTRATION AND AUTHORIZING REMIF AND THE THIRD PARTY ADMINISTRATOR ON BEHALF OF REMIF TO ACCEPT OR REJECT CLAIMS FILED AGAINST THE CITY OF UKIAH WHEREAS, the City of Ukiah is a member of the Redwood Empire Municipal Insurance Fund (hereinafter referred to as REMIF), a self-insured joint powers authority.. and WHEREAS, REMIF provides, among other things, the City's liability coverage for those matters covered by the Memorandum of Liability Coverage; and WHEREAS, REMIF has a Memorandum of Liability Coverage that outlines the liability coverage provided to the City of Ukiah and is bound by the By-Laws that, among other things, outline settlement authority; and WHEREAS. REMIF works with a third party administrator to administer the City's liability claims that fall under the Memorandum of Liability Coverage; and WHEREAS, Government Code 912.6 requires that the City of Ukiah act on a claim filed against the City in one of four ways: (1) If the Board finds the claim is not a proper charge against the public entity, it shall reject the claim; (2) If the Board finds the claim is a proper charge against the public entity and is for an amount justly due, it shall allow the claim; (3) If the Board finds the claim is a proper charge against the public entity but is for an amount greater than is justly due. it shall either reject the claim or allow it in the amount justly due and reject it as to the balance, or (4) If legal liability of the public entity or the amount justly due is disputed. the Board may reject the claim or may compromise the claim; and WHEREAS, the City of Ukiah shall delegate and authorize REMIF and the third party administrator on behalf of REMIF, which is common practice amongst other cities, to respond to covered claims filed against the City as outlined in Government Code section 912.6. The City of Ukiah will work closely with REMIF and the third party administer on behalf of REMIF to respond to covered claims. All decisions will be collaboratively discussed between the City and REMIF or the third party administrator on behalf of REMIF. Final authority is outlined in the Memorandum of Liability Coverage, the bylaws and the JPA agreement with REMIF; and WHEREAS, whenever it is necessary for the City to reject or provide another form of notice to a claimant for a covered claim. the City of Ukiah hereby delegates to REMIF or the third party administrator on behalf of REMIF that authority, in collaboration with the City of Ukiah; and WHEREAS, the City of Ukiah will immediately report every covered claim to REMIF and/or the third party administrator on behalf of REMIF (but in no case longer than 2 business days of claim filing); the City of Ukiah will provide REMIF and the third party administrator on behalf of REMIF any information/documentation that is needed immediately (but in no case longer than 10 days of claim filing) with information to determine the appropriate claim response. Page 1 of 2 NOW, THEREFORE, BE IT RESOLVED by the City of Ukiah that it does hereby delegate the authority of claims administration for covered claims and authorizes REMIF and the third party administrator on behalf of REMIF to respond to covered claims on behalf of the City of Ukiah. The foregoing Resolution was passed and adopted at a regular meeting of the City Council on the 3rd day of October 2018, by the following vote: AYES: Councilmembers Brown, Scalmanini, Crane, Mulheren, and Mayor Doble NOES: None ABSTAIN: None ABSENT: None K VIN OBLE, Mayor ATTEST: KRISTINE LAWLER, City Clerk Page 2 of 2