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HomeMy WebLinkAboutHR Increase Settlement Authority^Agenda Item No: 3Meeting Date: January 3, 2011 � SAN RAFAELCITY COUNCIL AGENDA REPORT Department: MANAGEMENT SERVICES Prepared by: Leslie Loomis, HR Director City Manager Approval SUBJECT: RESOLUTION TOINCREASE THE SETTLEMENT AUTHORITY C}FTHE CITY MANAGER FOR WORKERS' COMPENSATION CLAIMS RECOMMENDATION: Adopt Resolution BACKGROUND: The City of San Rafae|\s VVodkee/ Compensation program is self-insured for claims up to $750'000. The City has an excess coverage policy to cover claims that exceed the $750.008 limit. The City contracts with the Redwood Empire Municipal Insurance Fund (REK4|F) to administer the claims program and the HR Director is responsible for the internal administration. An effective Workers' Compensation program promotes safe work pnactioes, employee accountability for complying with safety policies and procedures, embraces safety training and awareness, and supports light duty assignments. The City's program promotes and supports all of the above. Last year the program was able to move $700'000 from the Workers' Compensation fund bank into the General Fund as result ofproactive claims management and effective safety protection and awareness programs and policies. ANALYSIS: |nOctober 1&A2.the Council approved resolution kzestablish a Risk Management Policy that documented the City's commitment to on effective and comprehensive Risk Management Program. This resolution outlined the provisions of the program and established a settlement authority for Workers' Compensation claims. Workers' Compensation settlement procedures involve claims administration and negotiation of proposed settlements by REK8|F, and approval of the recommended settlements by the HR Director and the City Manager up to $28.008 or approval of the City Council for claims in excess of $20,000. Staff recommends that the Council increase the settlement authority for the City Manager to include settlement of individual claims uptn$5O.00Oper claim. Staff and REM|Fbelieve that the increased authority level for Workers' Compensation claims will not only streamline the claims process but is more in line with the settlement authority for other cities/agencies including Santo Rosa, Peta|uma, Amata, Cloverdale, Euveko, Cotati, Hea|dsburQ, Sebastopol, Windsor, Sonoma, Ukiah, Willits, Fortuna, St. He|ena, RnhnertPark. Ft. Bragg and Lakeport. The attached resolution includes the recommended internal settlement authority increase to $50.000 for Workers' Compensation claims. FISCAL IMPACT: Nona ,pj:ad�0� Adopt Resolution to increase the settlement authority of the City Manager for Workers' Compensation to $50'00 Direct staff to continue to seek approval from the City Council for claims of $20,000 or more ACTION REQUIRED: Adopt Resolution aspresented. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: ~ 104;011011 Lei Z E 00 KIME RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL INCREASING THE SETTLEMENT AUTHORITY OF THE CITY MANAGER FOR WORKERS' COMPENSATION CLAIMS WHEREAS, the City of San Rafael is responsible for the safety of employees during employment hours and is exposed to risk of damage and injury to employees or others, dishonesty and unforeseen liabilities imposed by law or assumed by contract; and WHEREAS, the City is self-funded for Workers' Compensation administration and has contracts with the Redwood Empire Municipal Insurance Fund (REMIF) to administer its claims program-, and WHEREAS, the City Manager currently has a settlement authority of $20,000 and the City Council recognizes the need to increase the City Manager's settlement authority to $50,000 per case in order to streamline the settlement process and to align with the settlement authority of neighboring entities. NOW, THEREFORE BE IT RESOLVED THAT the City Council of the City of San Rafael hereby authorizes the City Manager to have settlement authority for Workers' Compensation claims up to $50,000. 1, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 3rd day of January, 2011, by the following vote, to wit: AYES: Councilmembers: Brockbank, Connolly, Heller, Levine & Mayor Baro NOES: Councilmembers: None ABSENT- Councilmembers: None Esther C. Beirne, City Clerk CITY OF SAN RAFAEL I[ , t �6�k ��1111T lkili 117 I w111 0 INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. S DATE OF MEETING: January 3, 2011 FROM: Leslie Loomis DEPARTMENT: Human Resources / Management Services DATE: December 28, 2010 TITLE OF DOCUMENT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL INCREASING THE SETTLEMENT AUTHORITY OF THE CITY MANAGER FOR WORKERS' COMPENSATION CLAIMS t 4 r III Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) REMARKS: APPROVED AS TO FORM: 2",11 City Attorney (signature) ( I