Adelanto insurer denies request to cover contractor legal claim against city

May 29-- May 29--ADELANTO -- The risk management agency that covers lawsuits filed against the city by employees says it will not cover litigation lodged by independent contractors or subcontractors.

Employment Risk Management Authority, which is comprised of a pool of public entities that provide the city employment liability insurance, denied a recent request by Adelanto officials to cover a complaint filed by the city's short-time public information officer.

Michelle Van Der Linden, an independent contractor who held the role for about a month starting in January, filed a complaint in March alleging city officials breached her contract by firing her without 30 days notice. She also alleged she was retaliated against for whistleblowing.

City staff then forwarded the complaint to ERMA, which denied the request.

"Unfortunately, ERMA does not provide coverage for claims raised by independent or subcontractors, and further, does not provide coverage for any form of contractual liability assumed by the city," wrote Kathy Maylin, ERMA's litigation manager, in an email that was viewed by the Daily Press.

In Adelanto, many city staffers are independent contractors or employees working for firms contracted with the city.

Since assuming office last December, the newly-seated Council has approved most staff-related contracts brought before them. Some contracts included raises and amendments for additional funds.

City Manager Jessie Flores, along with members of both the current and prior City Council, often cite the cost savings contracted employees offer.

Contracted employees are not given benefits such as health insurance. Firing under-performing employees who are under contract is also less complicated.

"One of the great things about contracted services is that there is no liability to the city," Flores told the Council in January. "There's no benefits to the employee and, at the end of the day, if we decide to terminate, we don't have to go through the fiascos we have been going through."

In November 2018, ERMA decided to terminate the city's participation in the insurance pool, effective as of July 2019. In March, the Council agreed to enter into a four-month agreement with ERMA, which stipulated training for Council members and the city manager in exchange for ERMA reconsidering its decision to terminate insurance coverage.

The city is dealing with about 20 lawsuits and legal complaints filed mostly by former employees, along with a few by independent contractors like Van Der Linden.

She was let go abruptly in March behind closed doors. The details surrounding her hiring, and firing, are not included in the public record due to Flores' ability to approve contracts worth up to $30,000 without going before the Council.

Van Der Linden earned $95 an hour as a full-time public information officer. She replaced Michael Stevens, who told the Daily Press he earned roughly $41 an hour working on a part-time basis.

He also said it was the Daily Press who informed him he was out of the job just days after Flores brought on Van Der Linden, who was hired without a request for qualifications or a posted job advertisement.

Van Der Linden could not be reached for comment.

Starting in January, the Council voted to extend the contract of Louis Morales, a senior planner.

In February, the Council decided to retain Charles Rangel, also an independent contractor, as director of Development Services. Rangel was also given a $5 an hour raise.

Morales and Rangel work with many staff members at City Hall who are employed by JAS Pacific Inc., an Upland-based firm that staffs many of the city's land use-related positions under the umbrella of Development Services in the Planning Division and Building & Safety departments.

The Council decided not to amend JAS Pacific's contract in March. The company requested an increase, from $288,000 to $583,000, citing a need to hire more staff.

The discussion around JAS Pacific led to the Council directing staff to begin transitioning some city contractors into city staff. JAS Pacific's contract ends on June 30.

Mayor Gabriel Reyes said on Wednesday the proposed transition to city employees has been postponed until next year's fiscal year budget is closer to adoption. Fiscal Year 2019-20 begins July 1.

Reyes said certain positions, like a Human Resources director, should be city employees, "somebody who knows our municipal code and charter like the back of their hand."

He added the city's proposed Department of Cannabis, which Mayor Pro Tem Stevevonna Evans introduced publicly in April, is still in the works and would be staffed by city employees.

Not long after the JAS Pacific vote, the Council voted to amend a contract with MV Cheng & Associates in March, increasing the not-to-exceed amount by $300,000.

In December, Flores, without consulting the Council, brokered another amendment with Misty Cheng's firm, which increased the hourly wages of her employees. The first amendment also capped at $15 the amount Cheng could collect per hour for each consultant she provided.

Garrett Bergthold can be reached at GBergthold@VVDailyPress.com or at 760-955-5368. Follow him on Twitter at @DP_Garrett.

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