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limits, further inquiry may be required to interpret the public works contract to determine <br />the proper classification of the item, and the corresponding pumhasing limits and <br />process to be followed in its acquisition. <br /> <br />Workers Compensation and General Liability Claims <br /> <br />Presently the City Council approves all workers compensation and all general liability <br />claims greater than $4,999. This dollar limit was established by resolution in July 1976. <br />Human Resources staff reviewed recent workers compensation settlements approved <br />by City Council and discovered that out of 29 cases, the average settlement was <br />$30,000, and of these cases, only 9 were greater than $30,000. Under the proposed <br />dollar limit of $30,000, only 9 claims would have required City Council review and <br />approval. <br /> <br />Upon review of the general liability claims for 2000-01, 61 claims were closed, with 3 <br />exceeding the current limit of $4,999, and requiring City Council approval. All three <br />claims were less than the proposed limit of $15,000. <br /> <br />As mentioned in the above section, the consumer price index has increased 94% since <br />1982. As the dollar limit for claims has not been changed since 1976, City Council is <br />approving claims worth far less in current dollars than in 1976. City Council approval <br />requires staff time to prepare staff reports, and Council time to review these reports for <br />action. To increase efficiency, staff is recommending that City Manager be authorized <br />to approve all workers compensation claims of $30,000 or less and all general liability <br />claims of $15,000 or less. <br /> <br />Alternative <br />City Council may leave purchasing limits and claims settlement limits at the current <br />levels. Staff will continue to prepare staff reports and resolutions or minute orders for all <br />purchasing items greater than $10,000, and staff reports for all workers compensation <br />and liability claims settlements greater than $4,999. <br /> <br />Fiscal Impact <br />If adopted, the new purchasing limits and insurance claim limits will provide savings in <br />paper and supplies cost due to the reduction in required staff reports to City Council. <br />Additionally, advertising costs will be reduced, as there will be fewer items requiring <br />formal noticing. Staff time will be made available for other uses. <br /> <br />Submitted by City Council Finance Committee: <br /> <br />Oe ~ Richard Claire ~ <br />Chair Nice Mayor Mayor <br /> <br />And City staff: <br /> <br /> Brian Ponty <br />City Attorney Director o¢ Finance and Financial Planning <br /> <br /> 3 <br /> <br /> <br />