HomeMy WebLinkAbout2026-04-14; Municipal Water District; Resolution 1801Exhibit 2 RESOLUTION NO. 1801 .
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT ADJUSTING THE SETTLEMENT AUTHORITY
DELEGATED TO THE EXECUTIVE MANAGER AND THE CITY OF CARLSBAD’S
RISK MANAGER FOR LIABILITY CLAIMS AND LITIGATION BY AND AGAINST
THE DISTRICT AND SPECIFYING PROCEDURES FOR HANDLING WATER
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 Executive Manager for liability claims was set by the
Board of Directors in 1991 (CMWD Board Resolution No. 742) and has not been adjusted since; and
WHEREAS, delegating authority to settle claims and make emergency expenditures for water
overflows on private property will allow the district to expedite the clean-up and remediation of these
incidents; and
WHEREAS, increasing the settlement authority for the Executive Manager and delegating
settlement authority to the City of Carlsbad’s Risk Manager for liability claims and litigation will improve
efficiencies and expedite the resolution of claims and litigation for and against the district.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water
District 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 Executive Manager and the City of
Carlsbad’s Risk Manager is exempt from environmental review under California
Environmental Quality Act 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 Executive Manager with the concurrence of the General Counsel shall have the
authority to settle liability claims and litigation in which the district 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.
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4.That the Executive Manager with the concurrence of the General Counsel shall have the
authority to settle claims and litigation in which the district 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 Executive Manager in consultation
with the General Counsel determines that the subject matter involves issues that are
routine in nature and do not present sensitive issues of policy.
5.That the Executive Manager with the concurrence of the General Counsel shall have the
authority to initiate proceedings, including filing a complaint or cross-complaint, to
obtain indemnity or contribution.
6.That the Executive Manager with the concurrence of the General Counsel shall have the
authority to waive the recovery of fees and costs in any amount in exchange for the
dismissal of litigation against the district.
7.That the City of Carlsbad’s Risk Manager shall have the authority to settle or approve
emergency expenditures for liability claims related to water 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 water service,
the City of Carlsbad’s Risk Manager shall follow the procedures outlined in Attachment
A.
9.That the City of Carlsbad’s Risk Manager shall have the authority to reject, return, and
deny liability claims against the district, 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 Board of Directors.
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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, President
______________________________________
SHERRY FREISINGER, Secretary
(SEAL)
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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
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