TO: AC Transit Board of Directors
FROM: Aimee L. Steele, General Counsel/Chief Legal Officer
SUBJECT: Board Policy 605 - Claims and Lawsuits: Settlement Authorizations
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution No. 25-032 approving amendments to Board Policy 605: Claims and Lawsuits: Settlement Authorizations and repealing Resolution No. 20-034.
Staff Contact:
Aimee L. Steele, General Counsel/Chief Legal Officer
Body
STRATEGIC IMPORTANCE:
Goal - High-Performing Workforce
Amending this Policy allows for the streamlining of settling claims and lawsuits against the District and allows for improved efficiencies within District operations.
BUDGETARY/FISCAL IMPACT:
There is no budgetary of fiscal impact associated with this report.
BACKGROUND/RATIONALE:
Board Policy 605 was adopted in May 1979 and most recently amended July 2020. Staff recommends changes to the Policy to align with the Public Utilities Code (Transit District law) and the Government Code, while also establishing delegated settlement authority levels that are consistent between workers' compensation and non-workers' compensation claims and lawsuits.
Establishment of Claims Board
To be consistent with Transit District law, staff recommends the creation of a "claims board" that will be authorized to review and approve settlements between $50,000 and $100,000. Public Utilities Code (PUC) section 25951 states that all claims for money or damages against the District are governed by certain sections of the Government Code unless otherwise addressed within the District's enabling legislation. Government Code (Govt Code) section 935.4 authorizes a local public entity such as the District to pass a resolution to delegate authority to an employee to settle claims up to $50,000. This limitation does not apply to the settlement of lawsuits (See Govt Code section 949). Any delegated authority exceeding $50,000 to settle claims...
Click here for full text