Policy 2-7 AUTHORITY TO SIGN RELEASES AND CHECKS FOR PAYMENT IN SETTLEMENT OF CLAIMS

DISTRIBUTION:    Mayor and City Council
    All Departments

SUBJECT:    Authority to sign releases and checks for payment in settlement of claims.

PURPOSE:    To establish a policy in which the City Manager or the City Attorney may execute 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 an individual or an individual’s 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 City’s endorsement on the check and signing a release.  In most of these cases, time is of the essence.  It would be in the best interest of the City if the City Manager or the City Attorney had limited authority to endorse certain documents.

PROCEDURES:    The City Council hereby delegates authority to the City Manager and the City Attorney to endorse checks and releases under the following conditions:

1.    On full payments made for reimbursement to damages to City property based on claims 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, worker’s compensation benefits, etc) expended on behalf of a City employee.

4.    On claims filed by the City Attorney or the City’s activity-fund administrator not exceeding $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.

REFERENCES:    None

EFFECTIVE DATE/
RESCISSION:    February 25, 1998


RESPONSIBLE
DEPARTMENT:    City Attorney

_____________________
JOHN T. MARLEY
MAYOR
February 25, 1998


(CP 2-7, Added, 02/25/1998)