Section 2 Legal Services
Policy 2-7 AUTHORITY TO SIGN RELEASES AND CHECKS FOR PAYMENT IN SETTLEMENT OF CLAIMS
DISTRIBUTION: Mayor and City Council
SUBJECT: Authority to sign releases and checks for payment in settlement
PURPOSE: To establish a policy in which the City Manager or the City Attorney
releases from future liability in instances where the City receives payment for damages to City
property or in instances where the City is a co-payee of insurance payments.
BACKGROUND: In some instances, the City receives payment by check from
or an individuals insurance company to reimburse the City for damages to City property which
require execution of a release. In other instances, the City may be a co-payee on an insurance
payment for payments made by the City to or on behalf of a City employee, such as payment of
medical insurance coverage for the employee which requires Citys endorsement on the check
and signing a release. In most of these cases, time is of the essence. It would be in the
interest of the City if the City Manager or the City Attorney had limited authority to endorse
PROCEDURES: The City Council hereby delegates authority to the City Manager
City Attorney to endorse checks and releases under the following conditions:
1. On full payments made for reimbursement to damages to City property based
made by the City Attorney to the person(s) or to the insurance carrier of the person(s) who
damaged City property.
2. On disputed claims for damage to City property where the payment made to the
City is at
least 75% of the amount claimed by the City.
3. On full payment to the City for reimbursement made by the City through any
of its funded
activities (health insurance benefits, workers compensation benefits, etc) expended on behalf
a City employee.
4. On claims filed by the City Attorney or the Citys activity-fund administrator
$10,000, where the payment made to the City is at least 75% of the amount claimed and the the
amount of claim is disputed.
RESCISSION: February 25, 1998
DEPARTMENT: City Attorney
JOHN T. MARLEY
February 25, 1998
(CP 2-7, Added, 02/25/1998)