DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Update Policy 2200 Liability Loss Reserve Policy And Amended Delegation Of Claims Approval Authority
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PURPOSE/ACTION REQUESTED
Authorize updates to Policy 2200 Liability Loss Reserve Policy and Amend Delegation of Claims Approval Authority.
SUMMARY
It is the policy of Dakota County to establish and implement guidance for the administration of the Dakota County liability loss reserve fund. The Dakota County liability loss reserve fund is established to provide funding for deductible expenses on certain lines of insurance coverages, to self-insure certain areas of liability where losses are predictable or non-insurable, and to pay for certain claims, for cause, financial savings, or other acceptable reasons.
The Dakota County liability loss reserve fund is managed by the Office of Risk Management in partnership with Finance. Reserve balances are managed with the assistance of an actuarial analysis completed every three years which provides confidence models for funding based on prior years claims paid, pending claim reserves, and incurred but not yet reported claim projections.
To ensure financial prudence and regulatory compliance, staff routinely conduct a review of our liability loss reserve policy. After careful analysis and consultation, staff propose changes to the delegation of claim authority levels which will enhance our ability to manage future liabilities more efficiently.
The proposed changes allow for greater efficiencies in exposure control and claim management. Amended delegation of claims approval authority recommendations are as follows:
• Claims not exceeding ten thousand dollars ($10,000) are jointly authorized by both the Risk Manager and the County Attorney’s Office Civil Director.
• Claims greater than ten thousand dollars ($10,000) and not exceeding one hundred thousand dollars ($100,000) are jointly authorized by both the County Manager and the County Attorney.
• Claims exceeding one hundred thousand dollars ($100,000) require authorization by the County Board of Commissioners.
RECOMMENDATION
recommendation
Staff recommends the Dakota County Board of Commissioners authorize the updates to Policy 2200 Liability Loss Reserve and amended delegation of claim approval authority.
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EXPLANATION OF FISCAL/FTE IMPACTS
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Minn. Stat. § 375.18 authorizes the County Board to delegate payment of certain claims; and
WHEREAS, certain claims are fixed by law pursuant to Minn. Stat.§ 471.38, subd. 2; and
WHEREAS, Minn. Stat. § 375A.01 provides for the appointment of the County Manager and outlines the powers and duties of such position; and
WHEREAS, the County Manager is the executive and administrative head of the County and is responsible for the execution of county policies and ordinances, and proper administration of the affairs of the County placed in the Manager's charge; and
WHEREAS, the powers and duties of the County Manager include providing for County purchases and conducting county business as directed by the County Board; and
WHEREAS, it is necessary to establish procedures for the payment of County obligations consistent with Minn. Stat. §§ 471.345 through 471.425; and
WHEREAS, authority is needed to allow payment of some types of obligations without waiting for the next meeting of the County Board; and
WHEREAS, staff recommends revisions to Policy 2200 Liability Loss Reserve to provide the following authority for payment of claims associated with self-insured losses:
• Claims not exceeding ten thousand dollars ($10,000) are jointly authorized by both the Risk Manager and the County Attorney’s Office Civil Director.
• Claims greater than ten thousand dollars ($10,000) and not exceeding one hundred thousand dollars ($100,000) are jointly authorized by both the County Manager and the County Attorney.
• Claims exceeding one hundred thousand dollars (100,000) require authorization by County Board of Commissioners.
; and
WHEREAS, by Resolution No. 25-052 (January 21, 2025), the Dakota County Board of Commissioners authorized the County Manager to make payments for property interests necessary for the County’s Capital Improvement Program in an amount up to $30,000 in excess of the County approved appraised value, upon determination that the payment is reasonable, prudent and in the public’s best interest, but not to exceed an award by the condemnation commissioners or court; and
WHEREAS, staff recommends increasing the acquisition settlement amount to $100,000 to match the general claims settlement delegation.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby rescinds Resolution No. 11-241 in its entirety and modifies the settlement authority Resolution No. 25-052 as stated herein; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby determines that the following types of payments do not need to be audited by the County Board and hereby delegates to the County Manager the authority to make:
• Payments for salaries, wages and benefits for County employees.
• Payments for fees of jurors pursuant to Minn. Stat. § 593.48 or witnesses pursuant to Minn. Stat. Ch. 357.
• Payments made consistent with the terms of an authorized contract and there is no dispute the services have been provided in a satisfactory manner or any other material dispute in the performance of the contract.
; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby delegates to the County Manager the authority to authorize payment of the following types of claims, so long as a) sufficient funds are within the department line-item budget; b) payment is consistent with County policy; and c) payment is in the best interest of the County:
• Petty Cash Reimbursement.
• Postage.
• Travel Advances.
• Necessary witness expenses for court or administrative proceedings.
• Flow-through grant program expenditures where the County is not directly the source or recipient of funds, but merely provides fiscal advice and assistance.
• Employee reimbursement for expenses incurred, e.g., mileage and per diem.
• Expenses related to the interviewing of applicants for a department of division head position, including, but not limited to, travel and testing.
• Payment of utility bills.
• Payment made consistent with the terms of a previously authorized contract when the vendor has submitted a claim and there is no dispute that services have been provided in a satisfactory manner or any other material dispute in performance of the contract.
• Court ordered judgments and reports or awards of condemnation commissioners filed with the court for which the County Attorney does not recommend appealing.
• Worker's compensation claims where payment is consistent with applicable law.
• Payments of other expenses not exceeding $5,000.
; and
BE IT FURTHER RESOLVED, That the County Manager and the County Attorney are hereby jointly delegated the authority to authorize payment or settlement of the following types of claims, so long as a) settlement is consistent with County policy; and b) settlement is reasonable, prudent and in the public’s best interest:
• Property interests necessary for the County’s Capital Improvement Program in an amount up to $100,000 in excess of the County approved appraised value, but not to exceed an award by the condemnation commissioners or court;.
• Settlement payment of up to of all other claims made by or against the County up to $100,000 and for insured property damage or other claims, up to the amount of the relevant deductible.
; and
BE IT FURTHER RESOLVED, That the County Board of Commissioners approves the revision of Policy 2200 Liability Reserve as presented; and
BE IT FURTHER RESOLVED, That the County Manager shall update any county policies and procedures concerning claims approval and settlement to reflect the delegations herein.
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PREVIOUS BOARD ACTION
11-241; 5/3/11
25-052; 1/21/25
ATTACHMENTS
Attachment: Policy 2022 - DRAFT
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Jenny Groskopf
Author: Jenny Groskopf