While performing official duties, NLRED employees may injure persons, damage property, or cause other financial loss. Any person incurring such loss may submit a claim for payment. Each claim will be received, investigated, and adjudicated in a fair and timely manner in accordance with state law. Even though NLRED is often immune from liability, proper processing of claims will equip leaders to identify and resolve systemic problems and maintain discipline within the workforce.
AUTHORITY. The NLRED General Manager is the Mayor’s representative to approve or disapprove claims for payment made against NLRED, within the limits described below, consistent with Ark. Code Ann. 14-58-305.
a. Extrajudicial Claims. Through the procedures in this ordinance, the NLRED General Manager is hereby authorized to pay a claim in an amount that is equal to or less than $20,000. Claims exceeding $20,000 require confirmation by City Council before payment may be made.
b. Litigation Settlement. The Mayor is hereby authorized to pay a claim against NLRED in an amount that is equal to or less than $50,000 in order to settle a lawsuit when the NLRED General Manager, Finance Director and City Attorney agree that the amount of settlement is proper. Settlement agreements exceeding $50,000 require confirmation by City Council before payment may be made.
c. Billing Errors. Claims based upon known billing errors may be resolved according to the amount of the error without submission to this claim management process, subject to other restrictions in these Rules.
d. Appropriations. Claims may be paid from funds budgeted for NLRED according to the purpose most closely related to the claim. If insufficient funds are available, an additional appropriation must be obtained before payment is made.
SUBMISSION OF CLAIM.
a. Time. Any person may present a claim against NLRED within one year of the event that formed the basis of the claim.
b. Form. Claims may only be submitted on standardized forms that contain, as a minimum, the following information:
Name and contact information of the claimant;
The factual basis for the claim;
The amount of compensation claimed;
The signature of the claimant or guardian of the claimant; and
Such other information as may be useful to the claimant.
c. Delivery. Claims may be submitted using any lawful delivery method that results in actual receipt of the claim, including email and web-based portals. Upon receipt, all claims will be delivered to the NLRED General Manager as soon as possible.
INVESTIGATION. Every claim will be investigated.
a. Investigator. The NLRED General Manager will assign a senior impartial employee to investigate the facts that form the basis of the claim. The investigation will take precedence over all other duties of the person so appointed.
b. Report. As soon as reasonably practicable, the investigator will submit a report to the NLRED General Manager on standardized forms containing the following information:
The identity of persons interviewed;
The chronology of events related to the claim; and
A description of any policies, procedures, rules, or guidelines related to the claim.
LEGAL REVIEW. The Investigator will forward the claim and investigation report to the City Attorney for advice regarding legal liability. There is no requirement to tender legal advice in written form.
DETERMINATION. Based upon the claim, the investigative report, and the advice of legal counsel, the NLRED General Manager, may approve, partially approve, or deny a claim. No payment shall be made on any claim unless and until the claimant has executed appropriate documents releasing the City from further liability.
TIMELINESS. Claims should be processed within ninety (90) days from the day received.
RECORD KEEPING. NLRED will maintain records of claims for a period of four (4) years and report summarized information to City Council as requested.
