Legal staff proposes delegating insurance/indemnification approvals to county risk manager to speed contracts

John Amatio (legal counsel) told the Spokane County Board of County Commissioners on April 22 that state law requires architects and engineers to follow a specific selection process, but otherwise the state does not prescribe a uniform procedure for contracting for services. He reviewed the county's current three-step process for department heads and a different, simpler requirement that applies to elected officials.

Why it matters: Under current practice, department heads must notify the purchasing department, request purchasing's assistance if needed and supply a copy of the signed contract to purchasing. Elected officials, by contrast, only must supply a copy of an executed contract. Amatio said the wrinkle is insurance and indemnification language: any contract that includes those provisions must be approved by the Board of County Commissioners unless the board delegates that authority.

Amatio proposed delegating authority to the county risk manager — Mr. Gadd (risk manager) was named — to approve indemnification and insurance language so routine contracts would not clog the commissioners' agenda and so contractors could begin work without waiting for a board meeting. The legal staff said the county's current practice already routes indemnification language to the risk manager for review; the delegation would remove the final step that brings the contract to the board after risk review.

Commissioners asked for data on the volume and dollar-population of contracts that would be affected and discussed a $50,000 threshold. Several commissioners said they would prefer a reporting back mechanism (monthly or quarterly list) if the delegation is approved. Amatio said staff will compile contract-population figures and return with a template for an amendment to county code or policy; no formal delegation was adopted at the briefing.

What they discussed about risk: Dan (risk manager) explained the substance of most reviews centers on liability transfer and insurance limits; his office works to secure contractor liability coverage that protects the county. He said most vendors accept county-standard language but that some state or large contractors will insist the county take on liability; those exceptions are rare but require a board-level decision.

Next steps: Staff will compile the historical volume of contracts with indemnification clauses and return with recommended delegation language and a reporting schedule. No amendment to county code or formal delegation was approved in the briefing session.