HomeMy WebLinkAbout300-67POLICY & PROCEDURE
Subject: CLAIMS SETTLEMENT AUTHORITY Index: HRRM
Number: 300‐67
Effective Date:
April 30, 2024
Supersedes:
10/24/2019
Page:
1 of 4
Staff Contact:
Kim Gilman
Approved By:
1.0 PURPOSE:
To provide for effective and expeditious settlement of liability claims and lawsuits
made against the City of Renton and other types of claims made by the City of
Renton in compliance with the requirements of Washington Statutes and the City of
Renton Codes, Ordinances, and Policies.
2.0 ORGANIZATIONS AFFECTED:
All departments/divisions
3.0 REFERENCES:
Policy & Procedure 250‐02 ‐ Procurement Requirements
Policy & Procedure 300‐65 ‐ Risk Management Program
Policy & Procedure 800‐12 ‐ Contracting Authority
4.0 POLICY:
It is the policy of the City of Renton to utilize city funds in as expeditious and cost‐
effective manner as possible when addressing liability claims against the City and
recovery claims made to responsible third parties. To help achieve this, the
responsibility for and the limits of authority to negotiate and settle these claims
must be established.
5.0 RISK MANAGEMENT COMMITTEE:
There is hereby established the Risk Management Committee. As further set forth
in this policy, the Risk Management Committee shall review and make decisions
and recommendations in the areas of liability claims management and settlement.
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The Risk Management Committee shall be composed of three voting members: the
Chief Administrative Officer, Finance Administrator, and the Human Resources and
Risk Management Administrator, with input from the Risk Manager. The respective
Administrator(s) whose department is the subject of the liability claim shall be given
ample opportunity to provide input to the committee.
The City Attorney shall serve in a legal advisory role to the Risk Management
Committee and in a negotiating capacity with claimants’ attorneys and with pro se
claimants.
If any member of the Risk Management Committee, the respective Administrator,
City Attorney or Mayor is involved, or is alleged to be involved, in the claim or
lawsuit, they shall recuse themselves from any and all decisions or decision‐related
input addressed in this policy.
6.0 PROCEDURES:
The Risk Management Committee is authorized to negotiate proposed settlements
of claims made against and by the City of Renton, for which they have assumed
responsibility to manage, subject to authorized limits of settlement authority and
other applicable directives, as set forth in sections 6.1 and 6.2.
6.1 Settlement Authority for Settlement of Liability Claims:
6.1.1 The Risk Manager is authorized for pre‐litigation liability claims
settlements up to and including fifty thousand dollars ($50,000).
6.1.2 The Risk Management Committee is authorized to settle claims
greater than fifty thousand dollars ($50,000) up to and including one
hundred twenty‐five thousand dollars ($125,000), or as requested by
the Risk Manager, subject to the additional provisions set forth in
6.1.3.
6.1.3 The Risk Management Committee shall consult the City of Renton
Mayor for concurrence of a settlement or an offer to settle a liability
claim when the amount is in excess of one hundred twenty‐five
thousand dollars ($125,000), when requested by the Risk
Management Committee, or in the event that there is not
unanimous consent amongst the Risk Management Committee.
6.1.4 Summary of Settlement Authority:
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Dollar Value
of Settlement: Settlement Authority:
$0‐$50,000…………………………. Risk Manager
$50,000.01 ‐ $125,000………… Risk Management Committee
$125,000.01 ‐ $250,000……… Mayor Concurrence
>$250,000*…………………………. Council Approval
6.1.5 *Settlements for which the Mayor does not have authorization
pursuant to Policy & Procedure 800‐12 require Council approval;
namely, when the settlement amount, less any contribution from a
city insurance policy, exceeds $250,000.
6.1.6 Subject to Policy & Procedure 300‐65, settlement of covered self‐
insured liability claims shall be made from the appropriate account in
the 502 Insurance Fund, or as otherwise directed by the Finance
Department.
6.1.7 This policy does not apply to claims or lawsuits for Workers’
Compensation. Authority to settle claims, lawsuits, or other
proceedings not addressed in this policy follows a separate process
and may be reserved for the Renton City Council and the City of
Renton Mayor.
6.1.8 Payments from the city’s 502 Insurance Fund for non‐settlement
related expenses are not subject to these settlement procedures.
These include, but are not limited to, lawfully mandated payments,
court ordered payments, and payments necessary to investigate,
prosecute, and defend claims.
6.2 Litigation: Prior to any mediation or trial, regardless of valuation amount of
the case, the Risk Manager should brief the Risk Committee and/or Mayor. If
appropriate, in some cases, the Risk Manager may ask the HRRM
Administrator or City Attorney to brief the appropriate party.
6.3 Settlement Authority for Settlement of Claims made by the City of Renton:
The Risk Manager or their designee is authorized to make recovery claims,
reach a settlement for such claims, and/or collect funds for reimbursement
of documented damages to City of Renton property and workers’
compensation costs for injuries to city employees against responsible
individuals, businesses, and/or their insurers. The Risk Manager has the
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authority to collect funds in a lesser amount than that owed up to $50,000
(discharge debt owed to the City). The Risk Manager shall consult the Risk
Management Committee for debt relief amounts greater than $50,000.
Collected funds shall be deposited in the respective account used to pay for
the loss or as directed by the Finance Department.