HomeMy WebLinkAboutHR Increase Settlement Authority^Agenda Item No: 3Meeting Date: January 3, 2011
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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
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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
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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