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Approve an Appropriation Transfer Request totaling $1,250,000 with $1,150,000 from General Fund Contingency and $100,000 from the Risk Management Liability Reserve to Risk Management for Non-Covered Liabilities to cover unanticipated litigation expenses (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Human Resources recommends that the Board of Supervisors approve an Appropriation Transfer Request (ATR) totaling $1,250,000 with $1,150,000 from General Fund Contingency and $100,000 from the Risk Management Liability Reserve to Risk Management for Non-Covered Liabilities to cover unanticipated litigation exposures during the current fiscal year.
SUMMARY:
The Board of Supervisors has previously provided County Counsel with direction and authority to litigate and/or settle litigation matters, some of which are excluded from the County's property, liability, or other insurance programs. During the current fiscal year the anticipated expenses of these non-covered liabilities exceed the available funds.
FINANCIAL IMPACT:
The Risk Management Non-Covered Liabilities working budget is $1,760,981 and anticipated fiscal year expenses are $3,010,981, resulting in a budget shortfall of $1,250,000. The Risk Management Liability Reserve is $124,772 and is insufficient to cover the anticipated budget shortfall. As the non-covered liabilities total expenditures were unforeseen during the development of the current fiscal year budget, the use remaining funding of $1,150,000 would be through the General Fund Contingencies.
DISCUSSION:
Non-covered liabilities are administered by County Counsel or his designee. The Board has previously provided direction and authority to County Counsel to litigate and/or settle specific litigation matters not covered under any County property, liability, workers' compensation or other insurance programs.
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