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ORDINANCE NO. ,2 /84
AN ORDINANCE of the City of Port Angeles
establishing a fund for self- insurance
of health and welfare obligations, and
providing for the administration thereof.
WHEREAS, the City of Port Angeles has determined that it
is cost effective to self - insure its employee health and welfare
benefit programs;
NOW, THEREFORE, be it ordained by the City Council of
the City of Port Angeles as follows:
Section 1: Self- Insurance Fund
There is hereby created a special municipal fund in the
City Treasury which shall be called Health and Welfare 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 establish-
ing reserves for eligible but unpaid claims.
2. Payment of expenses for loss control or risk control
programs designed to reduce exposure to loss or
liability.
3. Payment of expenses for professional services for
claims administration and loss control; including
employment of a municipal staff position to provide
risk management when and if the employment of such
a position is deemed feasible and necessary by the
Port Angeles City Council.
4. Payment of premium expenses for surplus or excess
insurance coverage which may be associated with the
self- insurance programs.
5. Payment of expenses associated with employee partici-
pation in the City of Port Angeles Health Incentive
Program.
Section 2: Transfer of Funds Otherwise Budgeted for
Insurance Premiums
The City Council may, at its discretion, transfer funds
which are budgeted for health and welfare insurance premiums to
the Self - Insurance Fund established in Section 1 above, to pro-
vide monies for the administration of self- insurance programs;
or make supplemental appropriations from other sources to the
Self- Insurance Fund as deemed necessary.
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Section 3: Interest Earnings and Gains on Sale of
Investments
Interest earnings or gains on sales of investments shall
accrue to the Self - Insurance Fund to support claims and adminis-
trative costs.
Section 4: Termination of Self- Insurance
In the event that self - insurance programs for the City's
health and welfare obligations is determined to be no longer
cost effective, any monies accrued to the benefit of the Self -
Insurance Fund established by this ordinance shall, after payment
of all outstanding liabilities, be made available for the acqui-
sition of private medical insurance contracts, or other feasible
substitute programs for the City's self- insurance plans.
Any monies accruing to the Self - Insurance Fund created
by this ordinance which are specifically designated for payment
of employee benefits under the City's health incentive program
shall be frozen and preserved to discharge those obligations
when they become due.
Section 5: Fiscal Responsibility
The Director of Finance and Administrative Services
shall administer the City's self- insurance programs for health
and welfare benefits, and operation of the Self- Insurance Fund.
PASSED by the City Council of the City of Port Angeles
at a regular meeting of the City Council held on this /S
day of , 1981.
ATTEST:
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Marian C. Parrish, City Clerk
APPROVED AS TO FORM:
Crai• Miller, City Attorney
BLISHED: AddiemedAre2.411P
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