HomeMy WebLinkAbout2026-04-14; City Council; Resolution 2026-071Exhibit 1 RESOLUTION NO. 2026-071 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ADJUSTING THE SETTLEMENT AUTHORITY DELEGATED TO THE
CITY MANAGER AND RISK MANAGER FOR LIABILITY CLAIMS AND LITIGATION
BY AND AGAINST THE CITY AND SPECIFYING PROCEDURES FOR HANDLING
SEWER SERVICE RELATED LIABILITY CLAIMS AND EMERGENCY
EXPENDITURES
WHEREAS, the effective and expedient administration of the liability self-insurance program
requires that the authority to reject, return, deny and settle claims be clearly defined and established;
and
WHEREAS, the settlement authority of the City Manager and Risk Manager for liability claims
and litigation was last reviewed by the City Council in 2001 (City Council Resolution No. 2001-151); and
WHEREAS, increasing the settlement authority for the City Manager and Risk Manager for
liability claims and litigation will improve efficiencies and expedite the resolution of claims and litigation
for and against the city.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That an action to adjust the settlement and claims handling authority of, or delegate
settlement and claims handling authority to, the City Manager and Risk Manager is
exempt from environmental review under California Environmental Quality Act, or
CEQA, Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty
that there is no possibility the action may have a significant effect on the environment.
3.That the City Manager with the concurrence of the City Attorney shall have the authority
to settle liability claims and litigation in which the city is a defendant, respondent or
similarly situated party when the amount to be paid pursuant to the settlement does
not exceed $50,000 per individual party or claimant.
4.That the City Manager with the concurrence of the City Attorney shall have the authority
to settle claims and litigation in which the city is a claimant, plaintiff, petitioner or
similarly situated party when the amount to be paid pursuant to the settlement does
not exceed $50,000 and when the City Manager in consultation with the City Attorney
April 14, 2026 Item #3 Page 7 of 19
Docusign Envelope ID: A1731998-EBC8-4DBC-8654-E64B91CAF978
determines that the subject matter involves issues that are routine in nature and do not
present sensitive issues of policy.
5.That the City Manager with the concurrence of the City Attorney shall have the authority
to initiate proceedings, including filing a complaint or cross-complaint, to obtain
indemnity or contribution.
6.That the City Manager with the concurrence of the City Attorney shall have the authority
to waive the city’s recovery of fees and costs in any amount in exchange for the dismissal
of litigation against the city.
7.That the Risk Manager shall have the authority to settle or approve emergency
expenditures for liability claims related to sewer service when the amount of the
settlement or expenditure does not exceed $10,000.
8.That in settling claims or approving emergency expenditures related to sewer service,
the Risk Manager shall follow the procedures outlined in Attachment A.
9.That the Risk Manager shall have the authority to reject, return, and deny liability claims
against the city, including claims more than $50,000.
10.That all settlement authority for liability claims and litigation not expressly granted by
this resolution is reserved to the City Council.
April 14, 2026 Item #3 Page 8 of 19
Docusign Envelope ID: A1731998-EBC8-4DBC-8654-E64B91CAF978
PASSED, APPROVED AND ADOPTED at a Joint Meeting of the City Council of the City of Carlsbad,
the Board of Directors of Carlsbad Municipal Water District, the Board of Directors of the Carlsbad
Public Financing Authority, and the Community Development Commission on the 14th day of April,
2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
April 14, 2026 Item #3 Page 9 of 19
Docusign Envelope ID: A1731998-EBC8-4DBC-8654-E64B91CAF978
SEWER AND WATER OVERFLOW ON PRIVATE PROPERTY
Purpose: The city may need to act quickly in response to a sewer or water overflow on private
property to control costs and achieve a high level of customer service. Affected residents and
property owners need assurance that their property will be cleaned and restored and may need
immediate assistance with living arrangements and expenses if the residence is uninhabitable. The
city may be able to reduce costs by retaining control of clean-up and restoration work.
Procedure: When the city’s emergency response crew determines an overflow appears to be in a
portion of the line for which the city has accepted responsibility and where the emergency response
crew has not determined the cause of the overflow was due to the occupant/property owner’s
actions:
•The city will secure clean-up and restoration services, on an emergency basis, for the
occupant/property owner. This may include temporary housing if the Risk Manager
determines that the property is uninhabitable. If a resident needs assistance with living
expenses during clean-up and restoration, the Risk Manager is authorized to pay up to
$10,000 for these expenses.
•The Risk Manager will notify the City Attorney and Deputy City Manager, Administrative
Services of the incident within 24 hours and provide on-going status reports on remediation
progress and cost. The Risk Manager will coordinate with the City Attorney and Deputy City
Manager, Administrative Services to evaluate each case on an individual factual basis. In those
situations where it is ultimately determined that the property owner is responsible for the
blockage, the evaluation will include a determination as to whether the city should seek
reimbursement of any expenditures.
Attachment A
April 14, 2026 Item #3 Page 10 of 19
Docusign Envelope ID: A1731998-EBC8-4DBC-8654-E64B91CAF978