Title
Consider recommending that the County Code be amended to provide that the County Risk Manager have the discretion to approve deviations from or modifications to the County standard provisions regarding insurance and indemnification in appropriate circumstances exercising the Risk Manager’s professional judgment.
Report
RECOMMENDATION:
It is recommended that the Budget Committee recommend to the Board of Supervisors that the County Code be amended to provide that the County Risk Manager have the discretion to approve deviations from or modifications to the County standard provisions regarding insurance and indemnification in appropriate circumstances exercising the Risk Manager’s professional judgment.
SUMMARY/DISCUSSION:
The County has standard contract provisions including insurance and indemnification requirements, and any deviation from those requirements requires approval by the Board of Supervisors even if the contract amount is within the authority of the County Administrative Officer, Contracts/Purchasing Officer or department head.
Not all vendors either can or need comply with the County’s standard provisions, for example: a sole proprietor with no employees need not have worker’s compensation insurance; a vendor providing information technology services from a location in another state and who will not be travelling in California need not have automobile insurance; and a sole proprietor providing educational or entertainment services at County libraries during the summer months need not have $1 million of commercial general liability insurance.
In such cases, the County’s Risk Manager should have the discretion to approve deviations from or modifications to the County standard provisions so such contracts need not require Board approval unless otherwise required due to the fiscal provisions of the contract. Such discretion should be exercised if, in the Risk Manager’s opinion, the deviations or modifications are in the best interests of the County, are consistent with standard industry practice, are appropriate for the particular contract, and do not expose the County to any undue or inordinate risk of liability. A draft ordinance is attached along with an underline/strikeout showing the changes.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office and Contracts/Purchasing Officer support the recommendation.
FINANCING:
There is no fiscal impact per se with this item; however, it will result in more contracts being approved by Contracts/Purchasing or department heads, and fewer contracts being presented to the Board of Supervisors for approval, thus Budget Committee support is being requested.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This action provides for more efficient processing of certain County contracts.
__Economic Development
X Administration
__Health & Human Services
__Infrastructure
__Public Safety
Prepared and Approved by:
______________________________________
Leslie J. Girard, County Counsel Ext. 5365
Attachments:
Draft ordinance
Underline/strikeout