A. Availability Of Budgeted Funds:
1. No settlement offer capable of acceptance shall be made and no settlement agreement shall be entered into unless funds are available under a City budget. See section 3.25.010B3 of the City Code.
2. For settlements that would be paid from the City's Government Immunity Fund, the Risk Manager or the Risk Manager's designee shall confirm that budgeted funds are available in the Government Immunity Fund. For settlements that would be paid from any other City budget, the head of the City department concerned (or the designee of the head of the City department concerned) shall confirm that budgeted funds are available and shall specify the particular budget.
3. In certain circumstances, it may be beneficial for the City to pursue settlement even though budgeted funds are not available. In such instances, it must be made clear to the offeree that the offer is contingent on funds becoming available. Such a contingent offer must be approved in accordance with subsection A1 of this section and shall not be made unless there is a good faith belief that funding will in fact be approved.
B. Authority To Settle Monetary Claims Against City:
1. Most monetary claims against the City are initiated by filing a "Notice of Claim" and can be effectively resolved by Risk Management without litigation. The following procedures are intended to achieve that benefit.
2. Authority for Risk Management to settle monetary claims against the City for which a notice of claim has been filed, but a lawsuit has not yet been filed, shall be as follows (subject to availability of funds under subsection A of this section):
a. Settlement of all monetary claims involving civil rights, must be approved by a litigation Senior Attorney (or the City Attorney or Deputy City Attorney).
(1) Settlement of no fault claims within the amount specified by City ordinance need not be approved by an attorney unless: a) there are multiple claims arising from the same event; or b) the Risk Manager believes the settlement has implications for the City beyond the claims.
(2) Settlement of all monetary claims where the claimant is represented by an attorney shall be approved by a litigation Senior Attorney (or the City Attorney or Deputy City Attorney).
(3) Subject to the foregoing, settlements of five thousand dollars ($5,000.00) or less need not be approved by an attorney, and may be approved by the Risk Manager with the approval of the City department concerned.
b. Authority for the attorneys to settle monetary claims against the City shall be as follows (subject to availability of funds under subsection A of this section):
(1) For amounts of fifty thousand dollars ($50,000.00) or less, including bodily injury or civil rights claims, settlements of claims may be approved by the Chief Counsel for the department involved, or if in litigation by the attorney primarily responsible for the matter. In either case, the agreement of the head of the department involved (or the designee of the department head) is required.
(2) For all personnel related matters (other than workers' compensation), the head of the Human Resources Division shall be consulted, as well as the department head.
c. For amounts in excess of fifty thousand dollars ($50,000.00), but not more than one hundred thousand dollars ($100,000.00), the head of the department involved and the City Attorney may approve the settlement (subject to availability of funds under subsection A of this section).
d. For amounts above one hundred thousand dollars ($100,000.00), approval of the Mayor is required (subject to availability of funds under subsection A of this section).
C. Authority To Settle Nonmonetary Claims Against City (Other Than Employment Related Claims): Any agreement by the City to equitable or other nonmonetary relief requires the approval of the head(s) of the department(s) involved and the Chief Counsel(s) for the department(s). Settlement of a class action for which a class has been certified requires the approval of the Mayor.
D. Authority To Settle Employment Related Nonmonetary Claims Against City: Prior to filing of a lawsuit in Federal or State court, employment related nonmonetary claims may be settled by the City Attorney's Office and the appropriate level supervisor in the department concerned. After a lawsuit has been filed, the claim may be settled on the recommendation of the City Attorney's Office and the head of the department concerned. Settlement of a class action for which a class has been certified requires the approval of the Mayor.
E. Authority To Settle Workers' Compensation Claims Against City:
1. The foregoing provisions of subsections A through C of this section apply to workers' compensation claims subject to the additional provisions provided in this subsection E.
2. Workers' compensation claims against the City initially involve a determination of compensability under the workers' compensation statute, i.e., that the injury occurred in the course and scope of employment.
3. Determinations of compensability are made by the City's Third Party Administrator. For any claim for which the Third Party Administrator would establish a reserve in excess of ten thousand dollars ($10,000.00), the Third Party Administrator shall notify the City's Risk Manager before making a determination of compensability.
4. The City shall not approve or agree to a determination of compensability without complying with the requirements of subsections A through C of this section.
5. Once a determination that an injury is compensable has been made, the City's Third Party Administrator shall pay indemnity (primarily lost wages) and medical expenses pursuant to the workers' compensation statute. The Third Party Administrator shall consult with the City's Risk Manager with respect to appropriate service providers to the extent permitted by law.
6. For purposes of determining the amount involved, the City's Third Party Administrator shall make a good faith estimate in writing of the upper bound of the City's total exposure over time and shall state that in writing if in excess of ten thousand dollars ($10,000.00). (2019 Compilation)