Monterey County Municipal Code Ch. 5.16 Claims Against County

All claims against the County shall be in the format prescribed by state law and filed with the Clerk of the Board of Supervisors including those claims enumerated in California Government Code Section 905 et seq., except those claims exempted by federal or state law. The Clerk of the Board of Supervisors shall transmit copies of all such claims filed with the Clerk to the County Counsel and the County Administrative Officer (CAO), or their designee.

(Ord. 3659, § 5, 1993)

(Ord. No. 5197, § 1, 4-10-2012; Ord. No. 5298, § 4, 2-13-2018)

A. Consistent with state law duties to attend and oppose claims and litigation, the County Counsel or designee shall evaluate the sufficiency and form of all claims and lawsuits against the County and give notices relative to any deficiency of such claims to the claimant. The County Counsel or designee shall have the discretion to have all such claims and lawsuits investigated, and make a recommendation relative to each claim and lawsuit. The County Counsel or designee shall determine whether the claim has been timely filed, and if the County Counsel or designee determines that the claim was not timely filed, they shall notify the claimant of that determination. The County Counsel is authorized and directed to establish and maintain administrative procedures with respect to the processing and assessment of claims and lawsuits, including the confidential coordination of case facts and related information. The procedures shall entail reasonable use of the principle of privileged attorney-client communication and other legal bases for confidentiality in the defense or adjustment of all claims as provided by law. Such administrative procedures shall be followed by any third-party administrator retained by the County to assist in the handling and processing of claims and lawsuits.

B. As permitted by Government Code Section 935.4, the County Counsel or designee, upon approval of the CAO or designee, may approve for payment any liability claim or lawsuit settlement not exceeding fifty thousand dollars ($50,000.00), and may deny any claim not exceeding two hundred fifty thousand dollars ($250,000.00). The County Counsel or designee, upon approval of the Human Resources Director or designee, or upon approval of the CAO or designee, may approve for payment any workers' compensation claim from an employee of the County, or the settlement of any workers' compensation lawsuit against the County, not exceeding fifty thousand dollars ($50,000.00). The County Counsel may authorize third-party administrators to reject, settle or compromise claims and lawsuits not exceeding ten thousand dollars ($10,000.00). Claims against the County that by law need not be submitted to the Clerk of the Board may also be rejected, compromised and settled pursuant to this Section in the same manner as claims submitted to the Clerk. Such claims may include, but are not limited to, labor union memoranda of understanding (MOU) grievances, civil rights claims, and employment disputes. Annually, the County Counsel shall prepare and submit claims and lawsuit settlement activity reports to the CAO and Board of Supervisors, reflecting claims and lawsuit settlement activity. Any claim or lawsuit may be submitted to the Board of Supervisors for informational purposes, for investigation, or for settlement approval or denial. As required by Government Code Section 935.4, upon presentation of a written order from the County Counsel detailing the allowance, compromise or settlement of a claim or lawsuit pursuant to this Section, the Auditor-Controller shall promptly cause a warrant to be issued from the appropriate fund in the County treasury in the amount for which a claim or lawsuit has been allowed, compromised, or settled. Notwithstanding the foregoing, upon order of the Board of Supervisors, the County may advance funds to a contracted third-party administrator for the purpose of making payment on an allowance, compromise or settlement of a claim or lawsuit as directed by the County Counsel.

C. For all claims or lawsuits not disposed of pursuant to Subsections A or B of this Section, the County Counsel or designee shall prepare and submit, as soon as practicable, a report to the Board of Supervisors either in open session or in closed session, at the County Counsel's election, together with a recommendation that such claim or lawsuit be approved, compromised, further investigated, or denied. The Board shall take such action upon the claim or lawsuit as it deems appropriate.

D. The County Counsel or designee shall notify the claimant or litigant in writing, or in a manner that is otherwise appropriate, of any decision to reject or approve the settlement of any claim or lawsuit, or other direction from the Board of Supervisors.

E. As necessary or appropriate, the County Counsel or designee shall notify and send copies of all claims and lawsuits to the insurance carrier providing relevant coverage to the County, and the County Counsel or designee shall be the County's liaison with such carriers for the purpose of any claim or lawsuit assessment and processing. The County Counsel may authorize third-party administrators, if any, to notify insurance carriers.

F. Claims and lawsuits filed against the County shall be defended by the County Counsel or Assistant or Deputies County Counsel as designated by the County Counsel; private attorneys designated by the County Counsel or as otherwise directed by the Board of Supervisors; or independent counsel as coordinated by County Counsel with appropriate insurance providers. Defense costs associated with such claims or lawsuits shall be paid from one of the following sources:

1. The Risk Management General Liability Internal Service Fund;

2. The Risk Management Workers' Compensation Internal Service Fund;

3. Another Risk Management Enterprise Fund as established by the Board of Supervisors;

4. A departmental budget that is responsible for such costs and agreed to by the department or the County Administrative Officer; or

5. Such other source as may be directed by the Board of Supervisors.

G. The County Counsel or designee is authorized to bind and contract for all insurance and related coverage for the County and County related entities. Insurance and insurance related coverage includes participation in and agreements with insurance pools, risk pools and joint powers agency programs. Actions by the County Counsel are subject to ratification by the Board of Supervisors.

(Ord. 3659, § 6, 1993)

(Ord. No. 5197, § 2, 4-10-2012; Ord. No. 5298, § 5, 2-13-2018)

Claims of the County against other persons or entities shall be handled according to the procedures designated in this Section.

A. Procedures by the County Administrative Officer. The County Administrative Officer is authorized to pursue collection of any claims of the County against others. The County Administrative Officer may, in furtherance of such claims collection, accept a promissory note to repay the claim over a period of time, file a small claims court action to secure a judgment, when the amount of the claim does not exceed the small claims court jurisdictional limit, or assign the claim, promissory note, or judgment to a collection agency. When the County Administrative Officer determines it is in the best interest of the County to do so, considering the cost of collection and the merits of the claim, the County Administrative Officer may:

1. Accept a compromise settlement and write off the balance of the claim as uncollectible, where the amount of the write off does not exceed the small claims court jurisdictional limit;

2. File an action in small claims court and write off any amount in excess of such court's jurisdiction, where the amount of the write off does not exceed the small claims court jurisdictional limit; or

3. Write off the claim in full where the amount of the write off does not exceed the small claims court jurisdictional limit.

Any claim which cannot be collected in full or disposed of in accordance with this Subsection shall be sent to the County Counsel's Office for collection.

B. Procedure by County Counsel. The County Counsel shall pursue collection and may, in furtherance of such collection, accept a promissory note to repay the claim over a period of time, file an action in the appropriate court to secure a judgment, or assign the claim, promissory note, or judgment to a collection agency. When the County Counsel determines it is in the best interest of the County to do so, considering the cost of collection and the merits of the claim, the County Counsel may:

1. Authorize the County Administrative Officer to accept a compromise settlement and write off the balance of the claim as uncollectible where the amount of the write off does not exceed the municipal court jurisdictional limit; or

2. Authorize the County Administrative Officer to file an action in small claims court and write off any amount in excess of such court's jurisdiction, where the amount of the write off does not exceed the municipal court jurisdictional limit; or

3. Authorize the Controller to write off the claim in full where the amount of the write off does not exceed the municipal court jurisdictional limit.

When the County Counsel determines it is in the best interest of the County to accept a compromise settlement of the claim and write off the balance as uncollectible, or to write off the claim in full as uncollectible, the County Counsel shall submit the matter to the Board of Supervisors for approval where the amount of the write off exceeds the municipal court jurisdictional limit.

(Ord. 3659, § 6, 1993)