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Ordinance No. 1199ORDINANCE NO. 1199 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON ADDING SECTION 2.11-1 TO ARTICLE III OF CHAPTER 2 OF THE CODE OF THE CITY OF VERNON, CALIFORNIA, 1959, RELATING TO INVESTIGATION, DENIAL AND SETTLEMENT OF CLAIMS AND DEMANDS AGAINST THE CITY WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California and WHEREAS, by adoption of Ordinance No. 700 on May 7, 1957, l the City Council of the City enacted regulations regarding presenting, auditing and payment of demands against the City, which are codified .in Article III of Chapter 2 of the Vernon City Code; and WHEREAS, on March 5, 2007, the City Council of the City of Vernon adopted Ordinance No. 1129 amending Article III of Chapter 2 of the Vernon City Code, "Claims and Demands Against City" to revise Sections 2.10 through 2.16 of Article III of Chapter 2 of the Code; and WHEREAS, the City Council of the City of Vernon desires to amend Article III of Chapter 2 of the Vernon City Code to add Section 2.11-1 in order to allow administrative processing of all claims and administrative resolution of claims below a specific dollar threshold and in order to increase transparency by requiring public posting of all claims filed against the City. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:. SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: Section 2.11-1 is hereby added to Article III of Chapter 2 of the Vernon City Code and shall read as follows: Section 2.11-1. Delegation of claims functions. The Finance Director, or the Finance Director's designee, is authorized and directed to act on claims filed against the City, pursuant to Government Code Sections 900, et seq., by investigating such claims, sending out all appropriate notices, including late claim rejections and denial notices and to allow, compromise or settle claims in a sum not to exceed $2,500, per -claim. The City Administrator shall have authority to allow, compromise or settle claims in an amount not to exceed $25,000, per claim. The name of each claimant and the amount demanded in each claim shall be listed on the public agenda of a City Council meeting as soon after filing of the claim with the City as practical. SECTION 3: Any ordinance or parts of ordinances in conflict with this Ordinance are hereby superseded. SECTION 4: Severability. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof.The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. - 2 - SECTION 5: Book of Ordinances. The Interim City Clerk shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the Interim City Clerk's certification to be entered in the Book of Ordinances of the Council of this City. The Interim City Clerk shall cause this ordinance to be published or posted as required by law. SECTION 6: Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this 18th day of December, 2012. Name: Willij J. Davis ATTES Dana e`d, Interim City Clerk Title: Mayor / M7707--t'T7 7`7 - 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, DANA REED, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1199, was duly and regularly introduced at a meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, December 4, 2012, and thereafter adopted at a meeting of said City Council held on Tuesday, December 18, 2012, by the following vote: AYES: Councilmembers: Mayor Davis, Mayor Pro- Tem McCormick, Maisano, Martinez, Ybarra NOES: Councilmembers: None ABSENT: Councilmembers: None And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this �-- day of December, 2012, at Vernon, California. J Da a Reed Interim City Clerk (SEAL) -4- CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: December 19, 2012 TO: Rory Burnett, Finance Director/City Treasurer Mark Whitworth, City Administrator/Fire Chief FROM: Deborah Juarez, Records Management Assistant RE: Ordinance No. 1199 — An Ordinance of the City Council of the City of Vernon Adding Section 2.11-1 to Article III of Chapter 2 of the Code of the City of Vernon, California, 1959, Allowing the Administrative Review of Tort claims and Demands Against the City and Requiring the Listing of Claims Filed on the Public Meeting Agenda Transmitted herewith is a copy of Ordinance No. 1199 referenced above, which was approved by City Council on December 18, 2012. Thank you. Attachment c: Ana Barcia Kristen Enomoto City Council Ordinance No. 1199 RECEIVED NOV 2 7 2012 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION DATE: November 26, 2012 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator RE: ORDINANCE NO. 1199 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON ADDING SECTION 2.11-1 TO ARTICLE III OF CHAPTER 2 OF THE CODE OF THE CITY OF VERNON, CALIFORNIA, 1959, ALLOWING THE ADMINSTRATIVE REVIEW OF TORT CLAIMS AND DEMANDS AGAINST THE CITY AND REQUIRING THE LISTING OF CLAIMS FILED ON THE PUBLIC MEETING AGENDA Recommendation It is recommended that the City Council find that adoption of the Ordinance proposed in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment: It is recommended that the City Council adopt ORDINANCE NO. 1199 — An Ordinance Of The City Council Of The City Of Vernon Adding Section 2.11-1 to Chapter 2 Of The Code Of The City Of Vernon, California, 1959, Relating To Claims And Demands Against The City, which will allow the administrative review of tort claims and demands against the City and require the listing of claims filed on the City Council's public meeting agendas. Background In California; before a public entity can be sued, a person must file a claim meeting the requirements of the California Tort Claims Act, California Government Code, Sections 810, et seq. With few exceptions, no lawsuit for money damages may be brought against a government entity unless a written claim has been properly filed within the six month time limit set by the Government Code. Presently, all claims received the City of Vernon are reviewed and acted upon by City.Council. While the City Council should have the central role in all policy matters, receiving and acting upon claims is generally an administrative matter handled by professional staff. Staff has been advised by consultants and its present City Attorney that asking the City Council to handle this type of administrative matter is out of the norm and takes focus away from other, critical policy matters in which the City Council does play a central role. Allowing claims to be investigated and denied administratively, and providing limited settlement authority to staff will save resources of both staff and the City Council. The City Council will still retain authority in settlement of matters in excessof the amount delegated to the City Administrator. In addition, claims will be listed on the public agenda of City Council meetings to inform both the City Council and the public of claims that have been made. This is not presently required and will increase the transparency of the claims process. The City Council would, of course, retain its right to bring any specific claim before it, and the public would have the right to comment on any claim in public session. The proposed ordinance provides settlement authority up to $2,500 to the Finance Director and up to $25,000 to the City Administrator, per claim. Any settlement in excess of $25,000 would still require City Council approval.