Town Code 4-2-1 Town Manager Settlement Authority

Section 4-2-1 Town Manager
H. Powers and Duties. The Town Manager shall be the Chief Administrative Officer of
the Town government and shall be responsible to the Council for the proper
administration of all affairs of the Town under the specific direction and control of the
Council. In addition to the general powers as the Chief Executive Officer and the
head of the administrative branch of the Town government, and not as a limitation
thereon, it shall be the Manager’s responsibility and duty and the Manager shall
have the power:
17.Authority to Settle Claims. (Ord. 1193/02-19) (Ord. 1241/09-24)
a. When a claim is covered by insurance and is more than the town's deductible:
1) The Town Risk Manager shall submit the claim to the town's insurance
carrier and cooperate in the investigation and defense of the claim.
2) The insurance carrier may resolve and/or settle the claim if the settlement
amount falls within the monetary parameters of the town's insurance policy
or is otherwise within settlement authority of the carrier pursuant to
applicable policy.
3) If the proposed settlement amount exceeds the policy's monetary
parameters or involves non-monetary relief:
a) The Town Attorney shall review the claim, proposed settlement and
release, and make a recommendation to the Town Manager regarding
settlement; and
b) The Town Manager may approve settlement with payment up to twenty
-five thousand dollars ($25,000.00) in excess of any policy limits. Any
liability exceeding twenty-five thousand dollars ($25,000.00) shall
require Town Council approval.
4) The Town Manager shall review and monitor all claims and provide the
Council with quarterly reports detailing all claims submitted to the
insurance carrier pursuant to this section.
b. When a claim is not covered by insurance or is less than the town's
deductible:
1) The Town Manager is authorized to negotiate and settle uncovered claims
on behalf of the town, including claims against its officers, appointees, and
employees, subject to the following conditions:

a) The Town Manager has investigated questions of liability and damages
and determined a reasonable dollar value of the claim.
b) The claim and any proposed settlement has been reviewed and
approved by the Town Attorney (and the Town Engineer for easement
and property acquisitions or condemnation actions initiated by the town
only).
c) The settlement is conditioned upon an appropriate written release by
the claimant.
d) The total settlement amount does not exceed twenty-five thousand
dollars ($25,000.00)
e) Any settlement in excess of twenty-five thousand dollars ($25,000.00)
shall require Town Council approval.
2) The Town Manager shall provide the Council with quarterly reports
detailing all claims settled pursuant to this section.