Adelanto takes steps to retain insurance coverage

March 06-- Mar. 6--ADELANTO -- With an upsurge in legal claims against the city threatening its insurance coverage, the City Council agreed on Tuesday to enter into a four-month plan designed to satisfy demands laid out by Adelanto's risk management agency.

The demands by Employment Risk Management Authority, which is comprised of a pool of public entities that provide employment liability insurance, include training for Council members and the city manager.

Training is to be given on the topics of retaliation, sexual harassment, discrimination, the "scope and limits of public official authority" and "management 101," according to a copy of the agreement.

ERMA also says the city must retain an outside attorney for "any/all personnel matters that have the potential" to lead to employee-related legal claims against the city, a staff report says.

The Council's action came during a special meeting called to discuss the city's insurance situation.

In November 2018, ERMA decided to terminate the city's participation in the pool, effective as of July 2019.

"The ERMA board made this decision because of significant concerns regarding the City's governance, risk management practices, concerns regarding the adequacy of training, claims history and employment practices," the agreement reads.

In February, the agency agreed to reconsider its decision if the city enters into a performance agreement with ERMA. The agreement says if the city successfully completes the conditions of the plan, ERMA "will reconsider its decision to terminate the city's participation in ERMA."

Tha agreement also included the following clause: "City shall withdraw and dismiss coverage appeals to ERMA Board of Directors regarding: Elliott, Gabriel v. City of Adelanto and Herrera, Cindy v. City of Adelanto."

Mayor Gabriel Reyes said he cannot comment on pending litigation and offered no clarification as to why the Elliot and Herrera cases were specifically mentioned in the agreement.

Jennifer Jobe, executive director of ERMA, told the Daily Press in an email she could not comment on anything "other than what is publicably available on ERMA's or the City of Adelanto's websites."

Former employees have filed several legal claims against the City of Adelanto.

On Feb. 25, the Daily Press reported the city's former IT supervisor Benjamin Pina filed a wrongful termination lawsuit alleging city officials conspired to outsource the city's IT Department for the purpose of obstructing an ongoing FBI probe into public corruption.

In January, Cindy Herrera, the longest serving employee in city history, sued the city after the city rejected her claim. After 31 years on the job, Herrera, the longtime city clerk who briefly served as city manager, was fired for what she alleged was due to her reluctance to cover up illegal activities.

Gabriel Elliott, a former Adelanto City Manager, sued the city, City Manager Jessie Flores and former Mayor Rich Kerr on Oct. 31 alleging his firing was retaliation for his cooperation with an FBI investigation into possible City Hall corruption.

His departure happened after he was placed on administrative due to sexual harassment claims lodged against him by city employees. Elliott denies the claims, he told the Daily Press.

"Should the city's membership in the insurance pool be cancelled, it may adversely affect the city's ability to participate in another insurance pool." the staff report reads. "The city could acquire insurance directly from insurance carriers, but the cost may be prohibitive with high deductibles."

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

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