HomeMy WebLinkAbout1981-06-16; City Council; 6638; Worker's compensation self-insuarnceCITY OF CARLSBAD
AGENDA BILL NO. (p & 3IT Initial:-^
Dept.Hd./^^X-
DATE: JUNE ^£6 ,19 81 c> Atty>
DEPARTMENT. CITY MANAGER " C. Mgr.
Sub36Ct: ESTABLISHMENT OF A WORKERS' COMPENSATION SELF-INSURANCE
REVOLVING FUND AND APPROPRIATING FUNDS
Statement of the Matter
In September 1978, the City of Carlsbad became self-insured for Workers'
Compensation. Although funds were appropriated at that time to cover
expenses of the program, a revolving fund was not formally established.
It is recommended that a fund be established to provide an independent
fiscal and accounting entity for the operation of the city's workers'
compensation program. This should be a revolving fund and not subject
to re-appropriation each year.
Ultimately, as a result of future appropriations, the fund should be
maintained at a level of $500,000. All monies in the fund should be
used exclusively for (a) payment of workers' compensation within the
city's self-insured retention, (b) outside workers' compensation claims
adjustment and legal costs, and (c) excess workers' dompensation
insurance premium costs. Interest earned should be credited to the
fund.
At this time it is recommended that the sum^ of $J200,000~
be transferred into this fund.
Fiscal Impact
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is available in a trust fund and $ 50ly_00_0
available from the insurance account for appropriation to the workers'
compensation revolving fund.
Exhibits
Resolution No. (4 & Q &
Recommendation
Adopt Resolution No. (& ^ f & establishing a workers' com-
pensation revolving fund and appropriating money to that fund.
AEEROVED
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RESOLUTION NO. 6585
A RESOLUTION•OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA ESTABLISHING A WORKER'S
COMPENSATION SELF-INSURANCE REVOLVING FUND AND
APPROPRIATING FUNDS.
: WHEREAS, the City Council of the City of Carlsbad has estab-
lished a program'of worker's compensation self-insurance; and
WHEREAS, the City Council desires- to establish a fund from
which to pay various expenses involved in worker's compensation
self-insurance program; and • .
WHEREAS, the City Council desires to establish certain
controls on" expenditures from the worker's compensation self-
insurance program. ' . .' ,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad as follows:
1. 'That the above recitations are true and correct.
2. That there is hereby established a fund to.be known
as the Worker's Compensation Self-Insurance Revolving
Fund. - ' •
3. That appropriations should be made annually during
;•• - succeeding fiscal" years in order to establish and
maintain a minimum balance of five hundred thousand
*
dollars ($500,000) in fund.
4. That interest earnings on the balance in said fund
shall be deposited into said fund.
5.. That expenditures from said fund shall be limited to
the following purposes: •
A. To pay premiums on excess worker's compensation
insurance policies. • ,
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B. To pay worker's compensation claims within the city's
self-insured retention. . .
C. To pay worker's compensation administration, adjust-
ment and legal expenses. ' ' •
f. 6.That the sum of fifty thousand dollars ($50,000) is hereby
transferred from the insurance account (1-103-2870) to the
Worker's Compensation Self-insurance Revolving Fund.
7. That the sum of one hundred fifty thousand dollars
($150,000) is hereby transferred from trust fund (65-515-05-19)
to the Worker's Compensation Self-insurance Revolving Fund.
PASSED, APPROVED AND ADOPTED at a regular meeting of the,
City Council on the 16th day of June ' 1981
by the following vote, to wit:
AYES: Council Markers Packard, Casler, Anear, Lewis and Kulchin
NOES: , None . ,
ABSENT: None •
RONALD C. PACKARD, Mayor
ALETHA L. HASTENKRANZ, City Clerk
KAR&N R. STEVENS, Deputy City Clerk