HomeMy WebLinkAbout4556 OP. mN CE
AN ORDINANCE establishing the Office of Risk Management and
Safety within the Department of Administrative Services and
amending Chapter 2.92 of the Bremerton Municipal Code.
Section 1. Amendment. Section 2.92.010 is hereby amended to read as follows:
2.92.010 CREATED. There is hereby created an Office of Risk Management and Safety
within the Department of Administrative Services. The Supervisor of said Office shall be the Risk
Manager, who shall report directly to the C:'~' Clerk Director of Administrative Services.
Section 2. Amendment. Section 2.92.020 is hereby amended to read as follows:
2.92.020 FUNCTIONS. The Office of Risk Management and Safety shall be responsible
for:
(1) Loss reduction or prevention where such reduction or prevention is cost effective;
(2) Transfer of risks to other parties where feasible through the purchase of insurance,
and/or risk retention through a system of self-insurance, in whatever combination is most
responsible and cost effective;
(3) Coordination and handling of all claims, including workers' compensation claims; and
(4) The maintenance of an effective employee safety program within the City.
Section 3. Amendment. Section 2.92.030 is hereby amended to read as follows:
2.92.030 RESPONSIBILITY - SAFETY, LOSS REDUCTION, PREVENTION.
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(1) The Risk Manager shall be responsible for risk identification, analysis and control.
Under the direction of the Risk Manager, the Safe _ty Officer shall develop and administer the City's
Safety Program and ensure compliance with the pro.am by making periodic inspections of City
facilities, work sites, and office spaces in regards to employee safety. The Risk Manager and the
Safety Officer have full authority to immediately stop any ongoing work when prescribed safety
precautions are not being adhered to, or if there are serious concerns for safety until the matter is
satisfactorily resolved.
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(.2) The Safety officer is not required to be assigned to the Department of Administrative
Services. He or she may be assigned to any other department within the City, but when functioning
in that capacity, the Safety officer will serve under the direction of the Risk Manager.
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(3) The Safety Officer, through the Risk Manager, will make written recommendations
regarding employee safety to the appropriate Department Head. Should the Department Head
disagree with the Safety Officer, a written response shall be made to the Director of Administrative
Services stating the reasons for the disagreement. The Mayor shall make the final decision
regarding implementation of any disputed recommendation.
(4) The Safety Officer is responsible for ensuring proper safety training is provided to all
City employees and for ensuring that required certifications for employees are kept current. He
or she shall also become actively involved in the on-going training programs provided by Human
Resources and other departments and ensure that a portion of that training is on Safety Awareness
and Loss Prevention.
(5) The Risk Manager and Safety Officer are permanent members of the City's Safety and
Health Committee and shall monitor the Committee to ensure compliance with all applicable
WISHA directives, provide input, and offer advice and assistance in helping the Committee to
achieve its stated goals. The Safety Officer shall maintain the file of minutes of each Committee
meeting.
(6) Risk Manager shall advise and recommend to all City Departments, appropriate
contractual clauses providing for indemnity, hold harmless and insurance provisions, and shall review
all proposed City contracts, permits and leases to ensure that all contractual provisions relating to
indemnity and hold harmless provisions adequately protect the City.
(7) Risk Manager shall write interdepartmental rules detailing the procedure to be followed
by the office and other departments to ensure accomplishment of the Loss Reduction/Prevention
Functions. The Safety Officer is responsible for ensuring compliance with these directives by means
of periodic inspections of office spaces, City work sites and review of departmental policies on
safety and loss prevention.
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Section 4. Amendment. Section 2.92.040 is hereby amended to read as follows:
2.92.040 INSURANCE/SELF-INSURANCE PROGRAMS. The Risk Manager is
responsible for the design, negotiation, procurement and administration of all insured and/or self-
insured programs:
(1) The Risk Manager shall determine and recommend the appropriate retention levels and
amount of reserves to be established;
(2) The Risk Manager shall negotiate with insurance brokers for any type of insurance and
may recommend that the City engage the services of such brokers;
(3) The Risk Manager shall purchase, with the approval of the ~ Director of
Administrative Services and City Council, all insurance policies, funded self-insurance programs, and
related services, and shall administer the same;
(4) The Risk Manager shall make an annual report to the City Council regarding insurance
coverage and the level of retained risk, and such other reports as are required by Council;
(5) The Risk Manager shall write interdepartmental rules to ensure that city departments
provide him/her with all information necessary to effectuate the insurance/self-insurance function.
Section 5. Amendment. Section 2.92.050 is hereby amended to read as follows:
2.92.050 CLAIMS MANAGEMENT - SELF-INSURED WORKERS' COMPENSATION
CLAIMS. The Risk Manager, or designee, shall be responsible for the direction and monitoring
of all self-insured workers' compensation claims to a fair and equitable conclusion.
(1) Every employee shall immediately complete the appropriate report form when work-
related injury or illness occurs and promptly forward same to the designated supervisor, who is
~' ly ding
responsible for ~' ..... ~,:~ ^c ~_~ ........... ~ immediate forwar to the Risk
Manager with any pertinent comments. The Risk Manager shall complete the employer section.
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(2) The Risk Manager shall coordinate activity on the claim with the claim's administrator,
r.a'.'~ z!a:~'v, a~m:~'.'v, tratc, r who shall be a certified workers' compensation claims administrator as
required by law, including time-loss, medical verification, and instruction involving progress of the
claim.
(3) The Risk Manager shall coordinate with the City Attorney and the Human Resources
Manager for retaining such outside expertise as necessary for the resolution of claims. These may
include, but are not limited to, doctors, rehabilitation specialists, and investigators. The City
Attorney's Office may elect to represent the City in all hearings and/or trials involving workers'
compensation claims, or shall appoint outside counsel when appropriate, and coordinated with the
Risk Manager.
(4) The Human Resources Manager shall develop appropriate return-to-work opportunities
for injured employees and, when feasible, will coordinate the implementation of specific return-to-
work plans with the department heads involved.
(5) The Risk Manager shall write interdepartmental rules detailing procedures to be
followed by this office and other departments to ensure equitable claims resolution and compliance
with State laws.
Section 6. New Section. New Section 2.92.055 is hereby added as follows:
2.92.055 CLAIMS MANAGEMENT COMMITFEE. To assist the Mayor a Claims
Management Committee shall be formed comprised of the Mayor, City Attorney, Director of
Administrative Services, Risk Manager, appropriate department heads, and the City's contracted
claims adjuster. This committee will review large, litigated, or controversial liability and workers'
compensation claims against the City on a not-less-than quarterly basis. The committee's reviee:
shall include:
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(a) The possibilities for early settlement.
(b) Identification of defense and settlement strategies.
(c) Identification of defense counsel.
(d) Estimation of reserve level necessary_ for claims resolution.
(e) Discussion and clarification of loss control responsibilities and policies.
Section 7. Amendment. Section 2.92.060 is hereby amended to read as follows:
2.92.060 CLAIMS MANAGEMENT - NON-LITIGATION CLAIMS. The Risk Manager
or designee shall be responsible for the successful conclusion of aH nonlitigation claims by or against
the City.
(1) The Director of Administrative Services shah be designated by the City Council to
receive aH claims. He/she shall forward to the Risk Manager all nonlitigation claims naming the
City and/or its officers or employees, which claim(s) allege that said officers or employees, acting
within the scope of their duties, caused the claimant damages.
(2) All city departments, divisions and other city agencies shall report immediately to the
Risk Manager the occurrence of any accident or incident which may give rise to a claim by or
against the city to ensure prompt investigation of the incident.
(3) The Risk Manager shall initiate and/or coordinate the investigation of all nonlitigation
claims. The Risk Manager may employ, subject to Ce.'.:nc:2 the Mayor's approval, the services of
claims specialists. All investigation of nonlitigation claims and potential claims shall be conducted
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as the agent of the City Attorney, and protected by the attorney-client privilege and attorney work
product rule.
(4) The Risk Manager shah have the authority to gr~m~-ef deny ~"
~-. or
negotiate the settlement of any claim to an amount not to exceed $14,999 subject to the approval
of the Director of Administrative Services.
(5) For all nonlitigation claims....,~ .......... .-........o~...~u ...... ,4 ~'e, ~.........,..u--a'~'4 ..,....,...,.,'4~"~'"'~ of $15,000 or more,
the Risk Manager shah provide the r-,:.,~.~ Attorney Claims Management Committee with a written
recommendation that the nonlitigation claim be accepted or denied and the reasons therefor. Such
written recommendation shah be accompanied by a copy of the investigative file.
Upon request of the C';~' Attzrne¥ Claims Management Committee, the Risk Manager shall
coordinate additional investigation of the claim. The C~' Att~rn%' Mayor shah have the authority
to accept or deny the claim, provided, however, that -~-m:~:~_ ~: ....
~,s ......... :,u .... :** ........ ~: u:~ ;~.~..~: .... :*:~ ~: *~' .... ~:*:-"*:"" '~":~ claim payments in
excess of $49,999 shah be subject to approval by the City Council.
(6) The Risk Manager shall maintain complete histories of aH nonlitigation claims reported
to the Office of Risk Management and Safety, and investigation thereof Sufficient to document at
least a five-year claims history.
(7) The Risk Manager shall write interdepartmental rules detailing the procedures to be
followed by the office and other departments to ensure efficient accomplishment of the nonlitigation
claims management function.
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Section 8. Amendment. Section 2.92.070 is hereby amended to read as follows:
2.92.070 CLAIMS MANAGEMENT - LITIGATION CLAIMS.
(1) Service of process on the Mayor, Mayor's designee or City Clerk shall constitute service
on the City. No other city official or employee may accept service of a summons and/or complaint
unless such official or employee is specifically named in the lawsuit.
(2) The Mayor, Mayor's designee or City Clerk or defendant employee, upon accepting
service of the summons and/or complaint, shall deliver copies to the ~ Director of
Administrative Services for distribution to the Risk Manager and City Attorney.
(3) The Risk Manager shall transmit copies of the lawsuit to the affected department and/or
individual and, where appropriate, to the insurance company or representative. The Risk Manager
shall advise the city attorney's office, in writing of the insured status of the lawsuit.
(4) The Risk Manager shall initiate and/or coordinate the investigation of all lawsuits which
may be insured against involving the City and/or its officials/employees. The Risk Manager may
employ, subject to Cc-.'.nc:2 Mayor's approval, the services of claims specialists. All investigation of
lawsuits shall be conducted as the agent of the City Attorney, and protected by the attorney-client
privilege and attorney work product rule.
(5) Upon completion of the investigation, or at any time requested by the City Attorney, the
Risk Manager shall surrender the investigative file to the City Attorney. Upon request of the City
Attorney, the Risk Manager shall coordinate additional investigation of the lawsuit.
The City Attorney shall have the authority to authorize settlements up to $14,999.
(7) For all litigated claims of $15,000 or more, the City Attorney shall provide the Claims
Management Committee with a written recommendation that the litigated claim be accepted or
denied and the reasons therefor. Such written recommendation shall be accompanied by a copy of
the investigative file.
Upon request of the Claims Management Committee, the risk manager shall coordinate
additional investigation of the claim. The Mayor shall have the authority to accept or deny the
claim, provided however that settlement payments in excess of $49,999 shall be subject to approval
by the City Council.
(8) The City Attorney shall maintain complete histories of all lawsuits sufficient to document
at least a five-year history of same.
Section 9. New Section. New Section 2.92.075 is added as follows:
2.92.075 CLAIMS NEGOTIATION, DISCUSSION, AND REPORTING.
(1) Except as specifically directed by the Risk Manager, Mayor or City Attorney, no city
department, division, or other city agency, and no city official or employee, acting individually or
collectively, may engage in the following acts:
(a) Negotiate or otherwise effect the settlement of a claim or lawsuit involving the
city;
(b) Discuss with persons other than the Risk Manager, Mayor, City Attorney, or
persons authorized by the Risk Manager, Mayor or City Attorney, incidents which could reasonably
lead to a claim or lawsuit against the city; provided, however, that the employee may discuss the
incident with his/her supervisor.
(2) Prior to any formal settlement offer, the Risk Manager shall be advised, in writing, of
all proposed settlements of claims and lawsuits against the City. The Risk Manager shall seek
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approval of its excess insurers, in conformance with the provisions of any insurance policies
applicable to the claim or lawsuit. In the event the insurer does not provide necessary settlement
approval, no settlement shall be made without the Mayor's written approval and acknowledgment
that the City's insurers have withheld approval.
The City Attorney shall provide the Risk Manager with a written copy of the final
disposition of the lawsuit.
(3) The Risk Manager, on or before January 20th of the subsequent year, shall report to
the council the total number and amount of all claims filed against the city and the number and
amounts of all claims or lawsuits paid by the city during the preceding calendar year.
Section 10. Amendment. Section 2.92.080 is hereby amended to read as follows:
2.92.080 RECOVERY OF LOSSES.
(1) Action for Recovery. The Risk Manager and City Attorney shall be respons~le for
bringing all actions, including claims and lawsuits, for recovery of losses to the City arising out of
the acts of others. Such losses may include property damage or losses which impact the City as a
result of personal injuries to city officers or employees. In addition, the City Attorney may join the
City as a party with any third party; in a lawsuit involving recovery of loss to the City. The City
Attorney and Risk Manager shall write interdepartmental rules detailing the procedures to be
followed by each in the execution of this function.
(2) Allocation of Recoveries. Any moneys recovered (excluding costs of recovery) by the
Risk Manager or City Attorney on account of losses to the City shall be paid to the budget unit or
department which has expended funds and/or materials as a result of the loss. Any moneys in
excess of those so expended shall be transferred to the insur-a~m risk management fund as set forth
in Section 2.92.090 of this chapter.
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Section 11. Amendment. Section 2.92.090 is hereby repealed and recodified as Section 3.30
Risk Management Fund:
3.30...,..~ ~.- -. ~.-~TTxT(2T TI) A 3%Tt~I~ 'T'DT.,. *.-,...,.,- *T(2"I~ RISK MANAGEMENT FUND.
3.30.010 Established. There is created an intragovernmental service fund to be known as
the:
........... rut.. risk management fund.
3.30.020 Permissible Uses. Permissible uses of the k'.:ura.~ce trust risk management fund
shall be limited to the following:
(a) Payment of claims and related costs;
(b) Payment of negotiated settlements and related costs;
(c) Payment of judgements and related costs;
(d) Payment of the costs of litigation, including, but not limited to, outside attorneys
fees and costs of discovery and witnesses;
(e) Payment of insurance premiums and related costs; and
(fi Payment of administrative costs related to Office of Risk Management operations.
3.30.030 Review. The operation of the i~mur-a-n~ risk management fund shall be reported
and reviewed quarterly with the council fiscal and budget committee. The report shall include the
amounts of all expenditures made from the i~tsur-am~ fund; t.ett!¢mentc, by Lnt.uranc. e o~arrlc:'~ on
u~ -~-~,~ ......... ~r~--~----a:* ..... ~ for claims, negotiated settlements, insurance settlements, judgements,
litig
ations, and their related costs ........................ ,_a ...... '~ rccevco', ........ , ........ moneya
shaU 5e :-n~b:!~ua!!y Zdent:f~e~. An annual accounting of this fund shall be included in the Risk
Manager's annual report to the Council.
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Section 12. Effective Date. This ordinance shall become effective ten (10) days from
passage and publication.
APPROVED by the City Council of the City of Bremerton this,,~a~ day of
1996.
PASSED by the City Council of the City of Bremerton this.z?~day of ~, 1996.
ATTEST:
KATHLEEN MCCLUSKEY, City Clerk
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Section 12. Effective Date. This ordinance shall become effective ten (10) days from
passage and publication.
APPROVED by the City Council of the City of Bremerton this~ day of
1996.
Council of the City of Bremerton this~2q~/day of ~'/~ , 1996.
PASSED
by
the
City
APPROVED tNis ?'~ayof ~ ,1996.
ATFEST:
KATHLEEN MCCLUSKEY, City Clerk
EFFECTIVE DATE
p~,~ m,~TU~ DATE
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