City Council

Agenda Request

Agenda Of:

November 7, 2006

Agenda Request No:

III G

Initiated By:

Joe morris, city attorney

Responsible Department:

legal

Presented By:

joe morris

Department Head:

joe morris

city attorney

 

 

Additional Department. Head (s):

n/a

Subject / Proceeding:

establishing a process to address claims, lawsuits and administrative proceedings that are not covered by insurance.

Exhibits:

Resolution No. 06-48

Clearances

Approval

Legal:

n/a

Executive Director:

n/a

Purchasing:

n/a

Asst. City Manager:

 

Budget:

n/a

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

n/a

Amount Budgeted/Reallocation:  $

n/a

Additional Appropriation:  $

n/a

Recommended Action

Approve Resolution No. 06-48

Executive Summary

This policy establishes a process to address claims, lawsuits and administrative proceedings that are not covered by insurance. The policy will allow the City Manager to:

 

(i)                  Authorize the filing of an injunction to enjoin violation of an ordinance or activity that poses an imminent threat to City property or the public;

(ii)                Authorize a claim or lawsuit to be filed against a third person for damage to City property or other loss if the damage is less than $25,000;

(iii)               Settle claims, lawsuits and administrative proceedings filed against the City if the settlement is for $25,000 or less; and

(iv)              Settle claims and lawsuits filed by the City against third parties if the settlement amount is $25,000 or less.

 

In injunction proceedings the City Manager’s authority would be limited to approval of temporary restraining orders and temporary injunctions.  Permanent injunctions must be approved by the City Council. The proposed $25,000 settlement limit given to the City Manager mirrors the purchase authority limit that Council has granted to the City Manager.

 

This policy also authorizes the City Attorney to represent the City in all claims, lawsuits, and administrative proceedings brought by or against the City. By stating this authority in the policy, it will not be necessary to have Council authorize representation on each individual lawsuit, claim or administrative proceeding that is filed.

 

The Finance/Audit Committee discussed this policy; it was also discussed at the Council workshop on September 19.

 

Exhibits

           

 

                                                                                                                                                Adopted by Res. No.

                                                                                                                                                Date of adoption:

                                                                                                                                                Effective date:  

Draft 05-11-06

 

RESOLUTION NO. 06-48

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, ADOPTING A CITY COUNCIL POLICY ON THE AUTHORITY OF THE CITY MANAGER AND CITY ATTORNEY RELATING TO CLAIMS, LAWSUITS, AND ADMINISTRATIVE PROCEEDINGS; AND SETTING FORTH OTHER PROVISIONS RELATED THERETO.  

 

BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

 

Section l.  That the City Council adopts the following policy:

 

City Council Policy

 

CITY MANAGER AND CITY ATTORNEY AUTHORITY RELATING TO CLAIMS, LAWSUITS, AND ADMINISTRATIVE PROCEEDINGS.

 

 


PURPOSE

This policy authorizes the city manager to take certain actions relating to Claims, Lawsuits, and Administrative Proceedings in recognition that:

 

under Federal and State law, the City may be required to prove to a court that the legal action taken by the City was properly authorized; 

 

the City may need to take immediate legal action to protect the interests of the City before the city council could lawfully meet to authorize the action; and

 

the city manager should have administrative authority to handle certain Claims, Lawsuits, and Administrative Proceedings without prior Council action or approval.

 

DEFINITIONS: 

           

Administrative Proceeding means a civil proceeding commenced under the jurisdiction and rules or regulations of a state or federal agency, other than a Claim or Lawsuit.  

 

Claim means a demand for monetary compensation.  A Claim does not include (i) a Lawsuit, (ii) a current or former City employee’s claim under the City’s health insurance program, worker’s compensation program, or retirement program, (iii) a claim for unemployment compensation, (iv) a claim covered by Insurance; or (v) any other claim where the amount of the benefit is established by or determined under a program established by or under the authority of State law.

 

Injunction or Injunctive Relief means a court order directing a party to perform a certain act(s) or to refrain from an act(s).

 

Insurance means a City contract under which another party agrees to compensate the City for specific losses in exchange for payment of premiums.

 

Lawsuit means a civil cause of action filed in state or federal court seeking any legal remedy.

    

A.  Injunctive Relief.  The city manager may authorize the filing of a Lawsuit seeking to enjoin continuing violation of a City ordinance or activity that poses an imminent threat to City property or to the public.  The city manager will promptly notify the city council of the filing of the Lawsuit.  The city manager may agree to the terms of a temporary restraining order or a temporary injunction sought by or against the City to maintain the status quo, but only the city council may approve the terms of a permanent injunction.

 

            B.  Damage to City Property.  The city manager may authorize the filing and prosecution of a Claim or Lawsuit arising from damage to City property or other loss if the damage or loss is $25,000 or less and not covered by Insurance.

 

            C. Settlement Authority.  The city manager may settle a Claim, Administrative Proceeding, or Lawsuit filed against the City, to which Insurance does not apply, if the settlement is for $25,000 or less.  If the City files a Claim or Lawsuit to recover for damage or loss suffered by the City, the city manager may settle the Claim or Lawsuit for $25,000 or less.  The city manager may deny Claims within his authority under this policy.

 

             D.  Authority of City’s Attorney.   The city attorney or another attorney retained to represent the City under City contract authorized as provided by City policy or ordinance, has the authority to represent the City in all Claims and Lawsuits and Administrative proceedings brought by or against the City.

 

E. Officers or Employee Named as Defendant.  Any authority granted to the city manager or city attorney under this policy relating to action on behalf of the City includes the same authority to take action on behalf of a City officer or employee if the officer or employee was acting within the scope of his or her authority for the City or the City is required to defend or indemnify the officer under City policy, ordinance, or law.

 

            F.  Exceptions.  This policy does not authorize the city manager to settle a Claim or Lawsuit or take any other action that violates any provision of a City contract for Insurance or take any other action not specifically authorized under this Policy.

 

 

APPROVED on   _____________________________, 2006.

           

           

 

                                                                                                _________________________

                                                                                                David G. Wallace, Mayor

 

 

 

 

ATTEST:

 

 

 

_____________________________

Glenda Gundermann, City Secretary

 

Reviewed for Legal Compliance