HomeMy WebLinkAbout2087P
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
U v G �N.30
ORDINANCE NO. 4tcr7
AN ORDINANCE of the City of Port Angeles
establishing a fund for Self - Insurance of
Workmen's Compensation Obligations, Other
Self - Insurance Programs and Safety Programs;
and providing for the Administration thereof.
WHEREAS, the City of Port Angeles has determined that it is
cost effective to self- insure portions of its risk and exposure to
liability;
AND WHEREAS, the Washington State Department of Labor and
Industries has approved the City's Application for Self- Insurance
of its Workmen's Compensation liabilities;
NOW, THEREFORE, be it ordained by the City Council of the City
of Port Angeles as follows:
SECTION I: SELF - INSURANCE FUND:
There is hereby created a special Municipal Fund in the City
Treasury which shall be called "Self- Insurance Fund ". Said fund
is established for the following purposes:
(1.) Accounting for revenues accumulated for the payment of
eligible claims against the City, or establishing reserves for
eligible but unpaid claims.
(2.) Payment of expenses for safety programs, accident
prevention activities, and other measures designed to prevent
and reduce industrial accidents or otherwise reduce exposure to
loss or liability.
(3.) Payment of expenses for professional services for
claims administration and loss control.
(4.) Payment of premium expense for surplus or excess
insurance coverage or surety bonds which may be associated with
self- insurance programs.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
• 25
26
27
28
29
30
31
32
SECTION II: TRANSFER OF FUNDS OTHERWISE. BUDGETED FOR
INSURANCE PREMIUMS.
The City Council may, at its discretion, transfer funds
which are budgeted for insurance premiums to the Self - Insurance
Fund established in Section I, above, to provide monies for the
administration of self - insurance programs; or make supplemental
appropriations from other sources to the Self- Insurance Fund as
deemed necessary.
SECTION III: SELF - INSURANCE FOR WORKMEN'S COMPENSATION
LIABILITIES
The provisions of this Section shall apply only to the
administration of the Municipal Self- Insurance programs for
Workmen's Compensation (Industrial Insurance) liabilities
stipulated in Revised Code of Washington (RCW) Title 51.
It is the specific intention of this Section to establish
procedures which comply with the requirements for self - insurers
specified in RCW 51.14 and Washington Administrative Code (WAC)
296 -15 with respect to self- insurance regulations of the
Washington State Department of Labor and Industries.
A. Reserve Account
(1.) The sum of one hundred thousand dollars
($100,000.00) is hereby appropriated from the
Municipal General Fund for transfer to the Self -
Insurance Fund created by this ordinance. This
sum shall be maintained as a reserve for large
claims or losses.
(2.) A special reserve account in the Self - Insurance
Fund shall be established to account for this reserve.
(3.) The Reserve Account shall not be decreased with-
out prior written approval of the Department of Labor
and Industries.
(4.) The Reserve Account shall be increased to the
extent that future incurred claim liabilities exceed
$100,000.
(5.) If reduced by a large claim or loss, the full
amount of the reserve shall be restored from assets of
Self- Insurance Fund or supplemental appropriations of
monies from other Municipal funds as determined by the
City Council.
-2-
1
2
3
• 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
•25
26
27
28
29
30
31
32
B. Surety Bond
(1.) The City shall secure and maintain a surety
bond in the amount of $150,000 against the City's
successful performance of its self- insurance obli-
gations.
(2.) The amount and form of the bond shall be as
prescribed by the Department of Labor and Industries.
(3.) The bond shall be secured from an agent or
company authorized to engage in such business in
the State of Washington and certified to do so by
the Washington State Insurance Commissioner.
C. Transfer of Funds and Future Appropriations
For purposes of providing ongoing funds in support of
the administration of Workmen's Compensation obligations, the
following measures shall be implemented:
(1.) All funds provided for Worker's Compensation
Insurance in the 1980 budget shall be transferred to
the Self- Insurance Fund created by this ordinance.
(2.) Commencing with the City's fiscal year 1981,
annual appropriations shall be made to the Self -
Insurance Fund - for Workmen's Compensation obli-
gationsonly.
Such appropriations shall be computed by multiplying
the estimated annual working hours for each class of covered
employee times the following premium rates:
Class
Electrical Workers
Police and Fire Employees
(Eligible Employees)
All Field Workers
All Administrative,Office,
and Clerical Workers
Rate
$ .22 per hour
.40 per hour
.25 per hour
.04 per hour
Premium rates for future years may be based upon
equivalent premium rates for State Fund coverage published
in the "Rate of Notice" by the Department of Labor and
Industries; or alternate rate calculations as deemed
appropriate.
Annual working hours, for purposes of this calculation,
shall be based upon 1850 hours for each covered employee.
The following formula shall be used to compute the annual
appropriation:
-3-
1
2
3
• 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
hour.
Number of employees in each class x 1850 x class rate per
(3.) Each Municipal Fund or department with covered
employees shall annually budget funds for contributions
to the Self- Insurance Fund based upon the procedure in
Section III(C)2.
(4.) Contributions prescribed in this paragraph shall be
made annually until the Self- Insurance Fund for Workmen's
Compensation obligations is determined to be self- sufficient;
provided, however, that appropriations shall continue for
a period of at least three years beginning in 1981.
(5.) Contributions made to the Self- Insurance Fund in
this Section may be used for all purposes specified in
Section (I), above, or to restore balances in the Self -
Insurance Reserve Account created by Section IIIA above.
D. Interest Earnings or Gains on Sales of Investments
shall accrue to the Self- Insurance Fund to support Workmen's
Compensation claims and Administive Costs.
E. Audit Recourse by the Department of Labor & Industries.
The Washington State Department of Labor & Industries, by
this ordinance, shall be permitted to audit the operation of
the Reserve Account established in Section IIIA, above, at any
time, and shall be permitted access to any and all records
of the City or its depositary necessary to complete such audits.
SECTION IV. OTHER SELF- INSURANCE PROGRAMS
The Self - Insurance Fund created by this ordinance may be
used to account for and administer funds of other Municipal
Self- Insurance programs;provided, that procedures for such
programs shall not impinge upon funds or reserve accounts
established in Section III, above. Separate accounting pro-
cedures will be implemented for all such programs.
-4-
•
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
SECTION V. FISCAL RESPONSIBILITY
The Director of Finance and Administrative Services shall
administer the City's Self- Insurance programs, and operation of
the Self - Insurance Fund.
SECTION VI. EMERGENCY ADOPTION
The City Council hereby finds and declares the existence of
a public emergency and that the foregoing ordinance is necessary
for the protection of public health, safety, and welfare; there-
fore, said ordinance shall become effective July 1, 1980.
PASSED by the City Council of the City of Port Angeles at a
regular meeting of the City Council held on this 5 day of
, 19 80 .
ATTEST:
,121411-1)
Marian C. Parris, City Clerk
APPROVED :S TO FORM:
Craig
PU
er, City Attorney
SHED: