OCII delegates settlement authority for claims up to $50,000 to its executive director

The OCII Commission approved a resolution delegating to the executive director authority to settle claims and resolve litigation involving amounts not greater than $50,000 (item 5E). General counsel said the delegation is consistent with city practice for departments and is intended to improve administrative efficiency by avoiding routine commission, Oversight Board and Department of Finance approvals for small settlements.

Jim Morales, OCII general counsel, explained the practical purpose: OCII has been involved in litigation (including matters related to bond proceeds and related nationwide antitrust settlements) that can involve multiple small settlements with various defendants. The resolution would allow the executive director to enter into such small settlements provided staff makes a written finding that the settlement is connected to an OCII enforceable obligation or lawful obligation as required under dissolution law; the resolution will be transmitted to the Oversight Board and Department of Finance for their review and approval.

Commissioner Bustos moved and Commissioner Singh seconded the motion. The roll-call vote was 4'1: Pimentel Yes; Mondejar absent; Singh Yes; Bustos Yes; Chair Rosales Yes. The Commission directed staff to forward the adopted resolution to the Oversight Board and DOF for further approvals as required under state dissolution law.

Source: OCII general counsel and staff presentation at the January 19, 2016 OCII Commission meeting (item 5E).