The URL can be used to link to this page

Home My WebLink About1993-04-12 93-227 ORDERCOUNCIL ACTION Item No. 93-227 Date April 12, 1993 Item/Subject: Adoption of Workers' Compensation Policy Responsible Department: Finance This action will adopt another section of the Financial Procedures Manual, and will articulate the City's General Policy concerning Workers' Compensation. The Finance Committee reviewed this item 4-0-93 and recommended approval 3:0. City Manager Associated InfOrmationv Budget Approval: /Finance DITector City Solicitor Inted For - First Fist Reatling Referral Page of �_ ent Read Nanager's Commence: City Manager Associated InfOrmationv Budget Approval: /Finance DITector City Solicitor Inted For - First Fist Reatling Referral Page of �_ 93—,ri Alsip cdto Counulur Sux1, Apri 1?, 1993 CITY OF BANGOR A�fion of 4Arkeis' Nipeneatlat iblicy trine. (®rDer,___ By aly Cftl a of1IR OiW of an -- ORDERED. TWT °Soucy SYataiart. w 4of Caryensatiml• Catal Much 33, 1993 is Ipieby erbpfai ab matle iaxt of t.M1e Financial �.�• Manual. 93-22) O R D I R IN CITY COUNCIL Title, April 12, 1993 Pas d ..MpWPk Pf. woftSyp:. FPPPPP6321PU. Yvliry y / CITY GLZRK .......... ..........//.nnryry........ ... . �W ....... Aerigaed to Coweflman City of Bangor 93-227 0) Policy Statemnt on 0.bxkei's crngensation Purple: T purpose of t s policy stavmant IS to provide dixsction on the city's admirdstmtion of its self-fuale3 wor3w 's crngpnsation Pto9ra ai and to ensure clarity regarding fu;diag, for the Pm , lassificat of costs, xawery of a�vdatmuve costs, eatablvsh t of appropriate claims reserves a finam:a; mazagarst of the pragmn. it is the intention of the city to main self-fns¢ed for wrlw oarepne on loses and to 000t self-adnv:istration of the program until suffici fln sal reswrces am built UP to fund Ltie acnwY 1 estimata3 wets of existing clam. Wim those mac s are available the city will reevaluate forward fmdiw its pmsp=st cis a� exposures and/or jos^:*g a risk pool. The City of Bangor has been self-lnsured for cagensat m s� 1981. F 1981 until 1985 the prayata was ^*"` ^""'_" by a third Party contxaotor. In 1985, i Progxm bacane for vedical only claire and ilurd party for lost ti» claims. T9w- city cptal fox Self of of all chins in 1987. 9 city diacontim:ed amass in, a coverage in 1989, thexehy acceptV all fin "' wets aM losses associated with claims Z that date forward (c it Order 89-173, Apprvuad April 10, 1989). n was fnstltuted on .hily 1, 1992. The pymn is houses in the Finance D P e —urians' Ca�@ensati°n Division under the dirsYion of ilio Fiume Dire. ' The Yiarkera' ca�tion c Visico claims for tFe m=olpal and scbCOl depaxdrents and the ent fse foals. Cw:ra;tly Uw_ pxogran is refo t i in the Cereral and. It Is t inion of t]yls policy statarent that the Works' co sation Pro9ran eventually be wood f= the Geuumal ivavl and structural as m into aervfca fluid with eron-laps xe Erma. lnu'Cber, when sufficient resources are available for existing claims, tl�e city will Iea eluate ^+'^g fiuulin4 its pxential claims and/or joining a risk pool such as Mair lbmcipal Asswla - Bach Ewd is xeaporsible for fundi its actual vests imlaiing its pxoratad share of �tfon 88 v u as the .aT;.rry estimates exp s ue. if xevawes exreed iSe Cos= for a pa� fu M, t ace..s xevexmea will Fz rebmsd to tttat fuM. 'fie excess costs of ore fermi will to amongst opsratina q oxiviafons on a risk assessoant taxis, mcMr thv: a direct cost basis. 'fie x c£Fal. >f•a ^i imlviiog enterprise fwde, will ba assesses a p�m to la paid quarterly t seri upon their budgeted payroll for the S60 93-221 variws PcaitroNrisk classifications. T1e AHire mv:icip 1 ?�aeociacion's aiazRtal rates; structure will be aced as tte the city's clout t co Tile preniwm moss wolf he Prenatal to Prelate revenues anf£icf to cover the budgetsi costs of the Program. BhRvld tie actual costs of the ciog em sues the budgeted noon es, pr tion will be athero i by tM1e close of the fiscal year to reflect the aactual ico is for regnir® fa of toe p aye,. ile re in �s of actual costs £or ®,rzrpri ,e £urcla wiu Le renrmnd to the xesPative fuxitla. TT sc1Rol departReM u^ r m de[ nlrl its inteanl generation of xevan� for its casts. 0 school depetlaent will be resPmuafbls for its actual Claim casts Plus its P atol share of adeandstratdon. The school departaent u l not to respasible for generating reuPwes which shift sures ccets for nwudcipal dep^`^"'^t` or ocher funds to the school budget. 8eserrea for w'orker's Cmpensation: Co a Order 85-219 approved S 24, 1985, establistVsd Gs ml 1 reserves £ot worker' cmPaosatton. There axe separate accounts one for amicipal departments azul ore for the sctaol department. The account far nmrdcipal liabilities is capped at $500,000, and the amount for the equal Portion is capped at $250,000. Sue balances fn these account Rey ba built up through transfers Of suss ePprq riatious at year erci, budgetary appropriaricns or a coin ttan of the two or such ocFer funding as maybe approved by the City Con a. the increases in these account balanes maybe built up ow_r tore modem Han as a one tine addltiOO. At the tine an £Memel service fund ie seated the reserves will is trans£easi from the Gerexal Pool to the internal service fund. 8'ne rsserva, p� by a budgetary unit will retain their fdsRffiostion until erhaustsi through pwyent of thous m behalf of the budgat r unit or'^of the fntamual rendre fund by the payoat of tail chns i. 8hmvld�+^_+:^^ the City join a risk pOl in toe £afore, available nerves will bs re' aned ani adiustei by acbmrfal calculations until tail claims are closel. £]goirlttures: Costs of claims wiil to reporisi as an expenditure against the xbxlers' Crngxuusatic n budgetary lir itss sod tbO casts of claims for arch depa=nent and division will be track Ol- At the ercd of the fiscal year the revenues arca for this dt inion will be closed to the rseerve for woel z's caop oration. Sufficient miaow oc LeVsfiud transfers will to generatsl frau the ente p ise funk to offset ibi. actual cost of claims Plus adm< ay=+-.ation. the sclnol depsrnrant's coats wlll Oe offset by sufficient transfers to the v»rla+t's Compensation d£vision. n, stra.:ve Costs: All administ,+.sve costs will be aPPOztiOOsd to each fund co the basis of 93-22] �- an..=i class evpMfi . Claim expmdit will ihClude fiNamd.ty pith to clanianta, medical and zehabilitatvon paysents, legal vests for the aip1c a a4+1olma and all other mlated costs. PdmLdstrative costs will include petsonnel and fringe Costs fox the aANNatration of the progrei plus such other contract d services, supplies cool S=ky Costs which ace associates with tha �tration of the �mn. P inistxatiw costs will be app :^^^+ within the y of their s by forn at year end. r�1 Tne corkers' Ccm¢ atiat Division will service avert' claim within the sta ne..a` of all applicable laws and withavt rafexenoe to factors odh r than the merit of the claim. rhe City will make etery xaasaable atte@t to achieve full hack to work status, light Arty status ad/ar a xehabfittation program W:ich will allw the eployee to change occupath= w hhout a loss of iivrnn or ael£ 4i. 11w_ VArla;vs' ca x sation division wtll coke every effort to locate suitable light duty work for a claimmrc within tlair work ability. ' svploying ep nt wi l be Provide first option for light Arty within medical 13mitstlaisr but if such xork is not available the claimant may to placed for light Arty in any other available work site within the City. During an aiployee's extaded Pe of fnlufy, the avloyee's will le housed for payroll puxpcses in the waksr's Cepensation Divpsfon. The egrloying dspsxbrent i r with aPpxoval of the City Manager, may hife a tegsraxy feplacarent �leyee until it ie determined that the injures a ilcyee will or will not be returning to work. Tnjura egzloyeas will be provided ever'I fessadOle Opportunity to xeWXh to their ponitpon. mmess IIauimre: E£fectiva July 1, 1992r the City reinstated asses insurvice or roi:u^ism�c coverage. T purpsse of such covarage is to limit the potential eagvsue the city bas in m Policy year. lbs cast of such hnauxace will be asaessap to each =t as an mlmLtistxative costr m bs as rued with otter admfxtiatratfve casts for tfe prion yasr. tfarch 31, 1993 -