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HomeMy WebLinkAbout3994 ORDINANCE AN ORDINANCE establishing the Office of Risk Manage- ment and Safety within the Department of Administrative services; defining the functions of this office and delineating the responsibility of this Office and the City Attorney for the handling of claims and lawsuits against the City and the recovery of losses suffered by the City; and establishing an Insurance Fund for the payment of losses and related costs. WHEREAS, through its diverse and extensive public endeavors, the City of Bremerton is unavoidably exposed to various risks of accidental loss; and, WHEREAS, prudent financial management practices require the protection of City assets from the impacts of significant loss; and, WHEREAS, an integrated and comprehensive effort to prevent, assess, and manage the risks attendant to the City's many exposures is vital to protecting the financial resources of the City from avoidable harm, NOW, THEREFORE, the CITY COUNCIL OF THE CITY OF BREMERTON, THE MAYOR CONCURRING, DOES ORDAIN: SECTION I: CREATION OF OFFICE OF RISK MANAGEMENT AND SAFETY 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 City Clerk. SECTION II. FUNCTIONS OF THE OFFICE OF RISK MANAGEMENT AND SAFETY The Office of Risk Management and Safety shall be responsi- ble for (1) Loss reduction or.prevention where such reduction or prevention is cost effective; (2) Transfer of risks to other par- ties where feasible through the purchase of insurance,and/or risk retention through a system of self-insurance, in whatever combi- nation is most responsible and cost effective; and (3) Coordina- tion and handling of all claims, including workers' compensation claims. SECTION III. LOSS REDUCTION/PREVENTION The Risk Manager or designee, shall be responsible for risk identification, analysis and control: A. Risk Manager shall develop and administer the City Safe- - 1- ty Program and periodically evaluate compliance with the Program by inspecting City facilities and making frequent checks of field and shop areas to ensure worker compliance with WISHA and City work rules. RISK MANAGER HAS FULL AUTHORITY TO IMMEDIATELY STOP HAZARDOUS SOBS WHEN PRESCRIBED SAFETY PRECAUTIONS ARE NOT BEING ENFORCED. B. Risk Manager shall make written recommendations regard- ing employee safety and the safety of the public using City fac- ilities or services to the responsible Department Head. If the Department Head disagrees with the recommendation or refuses to comply (s)he shall respond to the Risk Manager in writing stating reasons therefore. Risk Manager may then submit the recommendation to the City Clerk for evaluation with Department Head's written response. If the City Clerk approves the recommendation, Risk Manager shall forward the recommendation with Department Head and City Clerk's comments to the Mayor. If the Mayor concurs with such recommendation, the Risk Manager shall prepare a directive for the Mayor's signature requiring the affected department(s) to implement the recommendation. C. Risk Manager shall monitor the Safety Committee to ensure compliance with WISHA directives, provide input and offer advice and assistance in the achievement of its goals, and main- tain on file the minutes of the Safety Committee meetings. D. Risk Manager shall advise and recommend to all City Departments, appropriate contractual clauses providing for in- demnity, 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 harm- less provisions adequately protect the City. E. Risk Manager shall write Inter-Departmental rules de- tailing the procedure to be followed by the office and other departments to ensure accomplishment of the Loss Reduction/- Prevention Functions. SECTION IV. INSURANCE/SELF-INSURANCE The Risk Manager is responsible for the design, negotiation, -2 - procurement and administration of all insured and/or self-insured programs: A. Risk Manager shall determine and recommend the appropri- ate retention levels and amount of reserves to be established; B. Risk Manager shall negotiate with insurance brokers for any type of insurance and may recommend that the City engage the services of such brokers; C. Risk Manager shall purchase, with the approval of the City Clerk and City Council, all insurance policies, funded self- insurance programs, and related services, and shall administer the same; D. 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; E. Risk Manager shall write Inter-Departmental Rules to ensure that City departments provide him/her with all informa- tion necessary to effectuate the Insurance/Self-Insurance func- tion. SECTION V. CLAIMS MANAGEMENT - SELF INSURED WORKER COMPENSATION CLAIMS Risk Manager, or designee, shall be responsible for the di- rection and monitoring of all self-insured workers' compensation claims to a fair and equitable conclusion. A. Every employee shall immediately complete the appropri- ate report form when work-related injury or illness occurs and prompt2y forward same to the designated supervisor, who is re- sponsible for the completion of Employer Section and immediate forwarding to Risk Manager. B. Risk Manager shall coordinate activity on the claim with the Claim's Administrator: (Said Claim Administrator shall be a certified Workers' Compensation claims administrator as requir- ed by law), including time-loss, medical verification, and instruction involving progress of the claim. C. Risk Manager shall coordinate with the City Attorney and the Director of Personnel for retaining such outside expertise as necessary for the resolution of claims. These may include, but -3- 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' Comp- ensation claims, or shall appoint outside Counsel when appro- priate, and coordinated with Risk Manager and Personnel Director. D. Risk Manager shall write Inter-Departmental Rules detailing procedures to be followed by this office and other departments to ensure equitable claims resolution and compliance with State laws. SECTION VI. CLAIMS MANAGEMENT - NON-LITIGATION CLAIMS Risk Manager or designee shall be responsible for the suc- cessful conclusion of all non-litigation claims by or against the City. A. The City Clerk shall forward to the Risk Manager ali non-litigation claims naming the City and/or its officers or em- ployees, which claim(s) allege that said officers or employees, acting within the scope of their duties, caused the claimant damages. B. 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. C. The Risk Manager shall transmit copies of the non-liti- gation claim or potential claim to the affected depar'tment and/or individual, and, where appropriate, to the insurance company or representative. D. Risk Manager shall initiate and/or coordinate the investigation of all non-litigation claims. Risk Manager may employ, sub3ect to Council approval, the services of claims spe- cialists. All investigation of non-litigation claims and poten- tial claims shall be conducted as the agent of the City Attorney, and protected by the attorney-client privilege and attorney wore product rule. E. Risk Manager shall have the authority to grant or deny all non-litigation claims of $2,500 or less, and/or negotiate the settlement of any claim to an amount not exceeding $2,500, sub- -4- 3ect to approval of the City Clerk. F. For ali non-litigation claims over $2,500, the Risk Manager shall provide the City Attorney with a written recommen- dation that the non-litigation claim be accepted or denied and the reasons therefore. Such written recommendation shall be accompanied by a copy of the investigative file. Upon request of the City Attorney, Risk Manager shall coordinate additional investigation of the claim. City Attorney shall have the authority to accept or deny the claim provided, however, that non-litigation claims settle- ments exceeding $10,000 must be approved by the Mayor. The City Attorney shall provide Risk Manager with a written copy of his/- her disposition of the non-litigation claim. G. R~sk Manager shall maintain complete histories of all non-litigation claims reported to the Office of Risk Management and Safety, and investigation thereof sufficient to document at least a five-year claims history. H. The Risk Manager shall write Inter-Departmental rules detailing the procedures to be followed by the office and other departments to ensure efficient accomplishment of the Non-Litiga- tion Claims Management function. SECTION VII. CLAIMS MANAGEMENT/LITIGATION CLAIMS A. Service of Process on the Mayor or designees shall con- stitute 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. In that event, such City official or employee shall immediately deliver a copy of such process to the City Clerk. B. The Mayor or designee, upon accepting service of the summons and/or complaint, shall deliver copies to the City Clerk for distribution to the Risk Manager and City Attorney. C. Risk Manager shall transmit copies of the lawsuit to the affected department and/or individual and, where appropriate, to the insurance company or representative. Risk Manager shall ad- vise the City Attorney's office, in writing, of the insured sta- tus of the lawsuit. -5- D. Risk Manager shall initiate and/or coordinate the in- vestigation of all lawsuits which may be insured against involv- ing the City and/or its officials/employees. Risk Manager may employ, sub3ect to Council approval, the services of claims spe- cialists. 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. E. Upon completion of the investigation, or at any time requested by the City Attorney, Risk Manager shall surrender the investigative file to the City Attorney. Upon request of the City Attorney, Risk Manager shall coordinate additional investigation of the lawsuit. F. City Attorney may authorize settlements up to $10,000 with the Mayor, acting on the advice of the City Attorney, authorizing settlements exceeding $10,000. G. City Attorney shall provide Risk Manager with a written copy of the final disposition of the lawsuit. H. City Attorney shall maintain complete histories of all lawsuits sufficient to document at least a five-year history of same. I. Except as specifically directed by Risk Manager 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: 1. Negotiate or otherwise effect the settlement of a claim or lawsuit involving the City. 2. Discuss with persons other than the Risk Manager, City Attorney, or persons authorized by the Risk Manager 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. 3. Risk Manager, on or before January 20th of the subse- quent 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 -6- preceding calendar year. SEGTION VIII. RECOVERY OF LOSSES A. Action for Recovery: The Risk Manager and City Attorney shall be responsible 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 on 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 part in a lawsuit involving recovery of loss to the City. City Attorney and Risk Risk Manager shall write Inter-Departmental Rules detailing the procedures to be followed by each in the execution of this func- tion. B. Allocation of Recoveries: Any monies recovered (ex- cluding 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 re- sult of the loss. Any monies in excess of those so expended shall be transferred to the Insurance Fund as set forth in SECTION X. of this ordinance. SECTION X. INSURANCE TRUST FUND A. Creation: There is hereby created an IntraGovernmental Service Fund to be known as the Insurance Trust Fund. B. Permissible Uses: Permissible uses of the Insurance Trust Fund shall be limited to the following: 1. Payment of claims and related costs: 2. Payment of negotiated settlements and related costs; 3. Payment of ~udgements and related costs: 4. Payment of the costs of litigation, includinG but not limited to, outside attorneys fees and costs of dis- covery and witnesses: G. There shall be a separate Budget Line Item for payment of insurance premiums and related costs. D. Review: The operation of the insurance fund shall be reported and reviewed quarterly with the Council Fiscal and Bud- Get Committee. The report shall include the amounts of all ex- -7- penditures made from the insurance fund; settlements by insur- ance carriers in behalf of the City; and all monies recovered by the Risk Manager or City Attorney for recovery of losses. Ex- penditures for claims, negotiated settlements, insurance settle- ments, judgements, litigations, and their related costs and costs of recovery, unrecovered losses, and recovered monies shall be individually identified. An annual accounting of this fund shall be included in the Risk Manager's annua2 report to Council. SECTION XI. SEVERABILITY Should any section, subsection, paragraph, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, such decision shall not effect the valid- ity of the ~emaining portions of this ordinance. APPROVED BY the City Council on the first reading this~f~// day of _~ ,~,,~-z.,z.-/~~ , 1985. PASSED BY the City Council of the City of Bremerton, signed by the Mayor and Attested to by the City ~lerk in authentication of such passage this /~day of~/~z~,~_~u~,~4.. , 1985. MORRI~ ~. DAWKINS, Mayor City of Bremerton ATTEST: -8-