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Home My WebLink About1997-10-07 - AGENDA REPORTS - RISK MGMT LIABILITY (2)CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: Mayor Smyth and City FROM: George Caravalho, City Manager DATE: October 7,-1997 SUBJECT: RISK:MANAGEMENT/LIABILITY BACKGROUND "An ounce of prevention is worth a pound of cure." This old proverb proves quite true when discussing risk management and liability. All local governments practice some form of risk management. It involves work in a wide variety of fields including injury prevention, loss control, litigation, claims management, contract management, occupational safety and health, insurance, risk financing and liability. In short, risk management includes any activity designed to ensure the fiscal stability and safe operation of the City of Santa Clarita. Risk management means ensuring that employees and citizens work and live in a safe environment and it means protecting the City's financial resources. An effective risk management program provides for devoting dollars to increase community services and benefits rather that paying lawsuits or claims. The cost of providing services to citizens is directly related to the City's ability to handle its risks. Every dollar spent on property damage, injury, and liability claims is a dollar not spent on services. No two cities have exactly the same risks, therefore risk changes as the jurisdiction and legal climate changes. Each year the City takes the opportunity to review its array of services, programs and assets (infrastructure, facilities etc.). This is done primarily to avoid injury to any person and secondly to determine potential risk in order to adequately insure for any loss. In addition to this effort, professional staff as well as municipal risk and safety experts, retained as part of our insurance program, canvass the City to identify and analyze areas of concern, examine alternatives to address risks and minimize loss and implement programs to enhance the safety of the community. Examples of activities continually utilized include: t. Professional staff review of plans and specifications 2. Contractual risk transfer, monitoring and review r 3. Professional design, review and inspection of capital projects a. Special training, liability waivers and enhanced insurance for special events and recreational programming 5. Speed surveys on major roadways 6. Consistency in adherence to professional guidelines and adopted standards Examples include: Cal Trans standards, traffic warrants procedures, CEQA, building codes 7. Appropriate maintenance and documentation of activities on infrastructure and facilities (sign reflectivity program, pavement management, etc.) 8. Perfecting of design immunity in awarding and acceptance of all projects by the City Council 9. Safety training 10. Monitoring of area accident histories and loss trends Given all of the precautions taken and procedures in place, accidents will still occur. Every service that a public entity provides and every action it takes exposes it to losses, not only from claims but from defense costs. The scope of liability for municipalities and public officials has expanded dramatically in recent years as courts are increasingly holding local governments responsible for negligent and wrongful acts, personal injuries and property damage. Due to a high level of confidence in all of the activities stated above, the City has taken a formal posture to aggressively defend against all claims. Therefore, we often turn to legal counsel to advise and defend the City on significant matters. Once a formal summons or claim is filed, the City turns the matter over to legal counsel. In effect, many of the rules now change and the City is placed in a defensive posture, bound by specific rules. A representative from the City Attorney's office will review the process followed by the City when the faced with litigation on personal injury or property damage matters, and, in addition, discuss many of the defenses and immunities that we have as a general law city. He will also discuss specific areas that professional staff and public officials must be cognizant of in order to enhance opportunities for success when in litigation and avoidance of future exposure. RECOMMENDED ACTION City Council accept the report for informational purposes only. ,isk:tiabd do STUDY SESSION SANTA CLARITA CITY COUNCIL PRE -INCIDENT' CONSIDERATIONS AND POST -INCIDENT CONSIDERATIONS OCTOBER 7, 1997 PRESENTED BY ELIZABETH R. FEFFER and - BRIAN A. PIERIK of BURKE, WILLIAMS & SORENSEN 611 West Sixth Street, Suite 2500 Los Angeles, CA 90017 PRE -INCIDENT CONSIDERATIONS STUDY SESSION - OCTOBER 71 1997 1. Definition Of "Dangerous Condition" - Government Code Section 830(a) "Dangerous Condition" means a condition of property that creates a substantial (as distinguished from minor, trivial or insignificant) risk of injury when such property or adjacent property is used with due care in a manner in which is it reasonably foreseeable that it will be used." 2. Definition Of "Protect Against" - Government Code Section 830(b) "Protect Against" includes repairing, remedying or correcting a dangerous condition, provided safeguards against a dangerous condition, or warning of a dangerous -condition." 3. Dangerous Condition: Created By City Or City Has Notice A. Government Code Section 835(a) - Dangerous Condition Created By City Employee B. Government Code Section 835(b) - Notice (1) Actual Notice (2) Constructive Notice - City Should Have Known 4. Defense: Reasonable Conduct - Government Code Section 835.4 A. No Liability Per Government Code Section 835(a) If City Shows Act Or Omission Was Reasonable Balance: Probability And Gravity Of Potential Injury verses Cost Of Taking Alternative Action That Would Not Create The Risk Of Injury B. No Liability Per Government Code Section 835(b) If City Shows The Action/Inaction To Protect Against The risk Of Injury Was Reasonable "Reasonableness" is determined by taking into account the time and opportunity to take action and Balance: Probability And Gravity Of Potential Injury verses Practicability And Cost Of Protecting Against The Risk Of Such Injury SESSIONIS-C PRE -INCIDENT CONSIDERATIONS (continued) STUDY SESSION - OCTOBER 7,.1997 5. Defense: Design Immunity - Government Code Section 830.6 A. Design Must. Be Reasonable And Approved By City Or Authorized Representative B. Changed Conditions 6. "Defense" - No Dangerous Condition Due To Lack Of Traffic Control Signals, Etc. - Government Code Section 830.4 A. Traffic Control Signals B. Stop Signs C. Yield Right -Of -Way Signs D. Speed Restriction Signs E. Distinctive Roadway Markings 7. Defense: Immunity For Failure Of City To Provide Other Traffic Or Warning Signs - Government Code Section 830.8 No liability due to lack of other traffic or warning signals, signs, markings or devices unless necessary to warn of unanticipated dangerous condition (i.e., "concealed trap"). 8. "Defense": Minor, Trivial Or Insignificant Condition - Government Code Section 830.2 Usually a question of fact for Judge or jury, but sometimes a question of law. 9. Importance Of Adherence To Standards And Guidelines 10. Documentation Of City Action Or Inaction SESSIONIS-C -2- STUDY SESSION - OCTOBER 7, 1997 1. Incident - Personal Injury And/Or Property Damage 2. Claims Statute A. Purpose - Investigation And Settlement If Proper B. Requirements - 6 Months For Injury/Property Damage 3. Investigation Of Claim A. Carl Warren & Company B. City Staff 4. Complaint S. Causes Of Action A. Dangerous Condition - Traffic Accident, Slip And Fall, Other B. Negligence Of City Employees C. Other Causes Of Action 6. Response By City To Complaint A. Demurrer B. Motion To Strike C. Answer 7. Cross-complaint By City Against Others A. Examples - Other Drivers, Adjacent Property Owners, Others B. Purpose (1) Equitable/Contractual Indemnity (2) Recover Damages To City Property Or For Injuries to City Employees SMION.S-C POST -INCIDENT CONSIDERATIONS (continued) . STUDY SESSION - OCTOBER 7, 1997 S. Discovery A. Types (1) Written - Interrogatories, Request For Admissions, Request For Production Of Documents, Site Inspection (2) Oral - Depositions 9. Motion For Summary Judgment A. Grounds - No Triable Issues Of Material Fact B. Purpose - Avoid Needless Trials 10. Pre -Trial Filings - Witness List, Exhibit List, Trial Brief, Motions In Limine, Jury Instructions, Statement Of.The Case 11. Case Evaluation - Settlement Or Trial 12. Trial - Court Or Jury A. Procedure - Pre -Trial Motions, Jury Selection, Opening Statement, Plaintiff's Case, Defendant's Case, Closing Arguments, Jury Deliberations, Verdict B. Objections C. Sympathy Factor D. Jury Instructed On Law E. Judgment 13. Post -Trial Motions 14. Appeals 15. Affirmative Defenses - See Pre -Incident Outline SESSIONS -C -2-