Board approves $3.12 million budget amendment to cover large liability settlement; insurer expected to reimburse

The Imperial County Board of Supervisors on March 18 approved a budget amendment for $3,120,000 to cover a liability settlement, Human Resources staff said at the meeting.

Brenda Olivas of Human Resources said the amount exceeds the department’s liability reserve budget and that the amendment was necessary to issue payment. She said the county expects full reimbursement from the insurer and that the county’s self-insured retention (SIR) for this matter was $200,000, which has been exceeded; all other reimbursable costs will be paid by the insurer, Olivas said.

Board members asked for clarification about the county’s multiple reserve budgets and whether this payment would affect the larger loss-reserve amounts. Olivas explained the county maintains several reserve budgets; the liability reserve used for this payment is smaller than other funds (such as health insurance or workers’ compensation reserves), and the settlement payment is expected to be covered by insurance within about 30 days.

The motion to approve the amendment (item 27, HR budget amendment resolution number 20425115) was moved by Supervisor Ryan Elliott Kelly and seconded by Supervisor Jesus Eduardo Escobar and carried on the board vote recorded at the meeting.

Ending: County staff will process the settlement payment and expects insurer reimbursement; the board approved the required budget amendment to allow payment to proceed.