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Home My WebLink AboutMINUTES - 06071988 - IO.3 To BOARD OF SUPERVISORS 1. 0. 3 FROM: INTERNAL OPERATIONS COMMITTEE Contra May 23 , 1988 Costa DATE; ( ;(yy / SUBJECT: Mandatory Arbitration of Claims vv 'M, „J SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND :JUSTIFICATION RECOMMENDATIONS: 1 . Approve the Risk Manager ' s program of cooperation and mediation in settling tort liability claims involving more than one public agency defendant as .outlined in the attached report from the Risk Manager dated May 23 , 1988. 2 . Authorize the County's Risk Manager and County Counsel to continue working on deletion of the arbitration provisions in contracts entered into by the Contra Costa Health Plan., 3 . Request the Risk Manager and County Counsel to make a further report to the Board of Supervisors on this subject in one year. 4 . Withdraw this item as a referral to our Committee. BACKGROUND: On May 20, 1986, the Board referred to the Internal Operations Committee a report from Joseph Tonda, Risk Manager, and Arthur Walenta, Assistant County Counsel. The Committee met with Joseph Tonda and Arthur Walenta on June 9, 1986 to review the report in detail. The Internal Operations Committee requested that the Board direct the Risk Manager and County Counsel to report additional information to the Committee. They reported to the Committee on October 27, 1986 providing the requested information. On October 28, 1986, the Board authorized the County' s Risk Manager to undertake discussions with other public agencies directed at establishing a process whereby public agencies could make use of negotiation and possible arbitration in settling among themselves tort liability cases involving more than one public agency defendant. The Board also authorized the County' s Risk Manager to review with the Health Services Director the existing provisions for arbitration in contracts entered into by the Contra Costa Health CONTINUED ON. ATTACHMENT: X YES SIGNATURE; _ RECOMMENDATION OF COUNTY ADMINISTRATOR X_ RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE s : Sunne W. McPeak Tom Torlakson ACTION OF BOARD ON Une APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT II ? AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC!: County Administrator ATTESTED '7 ? County Counsel - --------- --- Risk Manager PHI BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M BY (O _—,DEPUTY 382/7-83 Page 2 Plan. The Risk Manager was to report his findings and recommendations to the Internal Operations Committee. Mr. Tonda and Assistant' County Counsel Arthur Walenta met with our Committee May 23 and reviewed the attached report with us. As the report points out, Mr. Tonda has developed a program with the cities, Central Sanitary District and the East Bay Municipal Utility District for cooperation in gathering materials, sharing information, and agreeing on a mutual defense strategy. The program has already saved the County about $100 ,000 in the first year of operation. . We believe that the program is working well and requires no further oversight from our Committee, although we are asking that Mr. Tonda provide an. updated report to the full Board in one year. OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California Sunne Wright McPeak To: Tom Torlakson Date: May 23, 1988 Internal Operations Committee From: Joseph J. Tonda, Mandatory Arbitration Risk Manager n Subject: of Claims Toti•c�.o� RECOMMENDATIONS: 1. Request the Board of Supervisors approve the Risk Manager' s program of cooperation and mediation in settling tort liability claims involving more than one public agency defendant. And have the Risk Manager provide an updated status report to the Internal Operations Committee in one year. 2. Authorize the County' s Risk Manager and County Counsel to continue working on deletion of the arbitration provisions in contracts entered into by the Contra Costa Health Plan. BACKGROUND- On May 20, 1986, the Board referred to the Internal Operations Committee a report from Joseph Tonda, Risk Manager, and Arthur Walenta, Assistant County Counsel. The Committee met with Joseph Tonda and Arthur Walenta on June 9, 1986 to review the report in detail. The Internal Operations Committee requested that the Board direct the Risk Manager and County Counsel to report additional information to the Committee. They reported to the Committee on October 27, 1986 providing the requested information. On October 28, 1986, the Board authorized the County' s Risk Manager to undertake discussions with other public agencies directed at establishing a process whereby public agencies could make use of negotiation and possible arbitration in settling among themselves tort liability cases involving more than one public agency defendant. The Board also authorized the County' s Risk Manager to review with the Health Services Director the existing provisions for arbitration in contracts entered into by the Contra Costa Health Plan. The Risk Manager was to report his findings and recommendations to the Internal Operations Committee. The Risk Manager reports the following findings: A. Inter-Public Agency Claims Mediation Program The Risk Manager has instituted a program with the Contra Costa County Cities Municipal Risk Management and Insurance Authority, the Central Contra Costa Sanitary District, and the East Bay Municipal Utility District, for handling tort claims which are filed against the County and one or more of these public agencies. A bi-product of this program is establishment of a network between these public entities that is conducive to early detection and notice of potential claims which are filed by third parties against one of the entities. This cooperative effort in the identification of each other' s liability exposures enhances the chance of successfully resolving disputes before claims are filed. The public entities have developed a procedure for achieving a common defense when a claim is filed which potentially may result in losses to two or more of these agencies. The procedure is: 1. When a third party tort claim is made against one of the public entities or an incident is disclosed which may lead to a claim, the initially involved entity determines if other entities may eventually be included in a resulting legal action. Notices and the results of investigations are shared with the other entities. 2. After the initial investigations are concluded and the information shared between entities, the involved entities informally attempt to reach a consensus on the liability issues. This includes an assessment of the overall extent of public entity liability and the relative degree of individual entity responsibility, if any. 3 . If consensus is reached, the entities decide on a joint defense strategy, a cost-sharing arrangement for defense costs, and apportionment of losses if awarded. 4. In the event consensus cannot be reached, the entities consider utilization of a third party mediation procedure in an effort to resolve disputed issues. 5. The entities will not file cross-complaints against each other until after the mediation procedure has been considered and/or utilized. Examples of the types of the claims and lawsuits which have been handled under this program include: { i . Lawsuits on which a city and the County have been named as defendants and have agreed to share the defense and legal costs on a 50/50 basis. 2. Cases where the accident scene is entirely within the city limits, and the city has agreed to accept the County' s tender of defense and assume all legal defense costs. This removes the County from any exposure on the action. The County has also accepted the tender and defense costs on cases where the accident site was located within the County and not the city, thereby removing the city from the exposure and costs. This mediation program was instituted about one year ago. It is estimated savings to the County are approximately $110,000 and savings to the other public entities (primarily cities) are approximately $45,000. This program will continue to be evaluated, monitored and refined as needed, and the Risk Manager plans to provide an update to the Internal Operations Committee in one year. Under the County's leadership, this program of mediation on tort claims filed against more than one public entity defendant has become operational. This program has opened a spirit of cooperation between local public entities; provided a united, coordinated and more effective defense on claims and lawsuits; and resulted in dollar savings to involved public entities and the citizens of Contra Costa County. This public agency mediation program might serve as a model for use by other public entities in the State. B. Health Plan Contracts with Arbitration Provisions The Risk Manager, County Counsel, and the Health Services Director have all agreed that the arbitration provisions in the Contra Costa Health Plan contracts should be deleted. As existing contracts expire, new agreements will be executed in their place without the arbitration provisions. JJT:py cc: Victor J. Westman, County Counsel Attn: Arthur Walenta, Assistant County Counsel