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A. There is hereby created a fund to be known as the Claims Reserve Fund, which will consist of all monies appropriated to the fund by the City Council or which may be otherwise made available to it by the City Council. The monies "otherwise made available" shall be deemed to include transfers of monies to the fund authorized in any given Annual Budget Ordinance. All interest earned from the investment of monies in the Claims Reserve Fund shall be credited to that fund and become a part of the fund. The monies in the fund are hereby continuously appropriated for purposes of this article. The Chief Financial Officer shall account for all independent fund categories within the Claims Reserve Fund including Utilities and Enterprise Funds if any are appropriated. Accounting of these funds shall be in a manner consistent with the applicable governmental accounting standards. At the end of any fiscal year, all unexpended and unencumbered monies in the Claims Reserve Fund shall remain in the fund and shall not be credited or transferred to any other funds.
B. The Claims Reserve Fund shall maintain reserves for incurred but unpaid liability claims for injuries which lie in or could lie in tort regardless of whether that may be the type of action chosen by the claimant, and for claims arising out of Federal law. The Claims Reserve Fund shall maintain reserves to provide for the contingency that in any year the contribution to the Claims Reserve Fund from other funds is not adequate to cover the actual expenses realized in that year. The Risk Manager, after consultation with the Chief Financial Officer and the City Attorney, shall recommend the amount of money that is required to maintain adequate reserves. Adequate reserves shall be maintained in the Claims Reserve Fund subject to available appropriations made by the City Council at its discretion.
C. Expenditures made out of the Claims Reserve Fund in accord with this subsection shall be made only for the following purposes:
1. To pay general liability claims and automobile liability claims and related expenses brought against the City, its employees or officials pursuant to the Colorado Governmental Immunity Act, and claims against the City and its officials or employees arising under Federal law, which the City is legally obligated to pay and which are compromised or settled pursuant to this article or in which a final money judgment against the City has been entered;
2. To pay the costs of defense, including expert witness fees, outside counsel legal fees, investigation and other related defense costs in connection with claims brought pursuant to the requirements of subsection C1 of this section.
D. Monies in the Claims Reserve Fund shall not be used to pay any of the following:
1. Claims for liabilities or losses which are covered under commercial insurance policies purchased by the City;
2. All claims other than those which arise under Federal law or which lie or could lie in tort regardless of whether that may be the type of action chosen by the claimant;
3. Any other claim or expense not set forth in subsection C of this section.
E. The Chief Financial Officer shall be responsible for the management and investment of the Claims Reserve Fund.
F. The setting aside of reserves for self-insurance purposes in the Claims Reserve Fund shall not be construed to be creating an insurance company nor shall the Claims Reserve Fund otherwise be subject to the provisions of the laws of the State of Colorado regarding insurance or insurance companies. The requirements of Colorado Revised Statutes concerning self-insurance under the Colorado Auto Accident Reparations Act are not applicable to this article.
G. Disbursements made from the Claims Reserve Fund for eligible expenditures shall be initiated by the preparation of a payment request or other appropriate electronic request as approved by the Chief Financial Officer or Utilities Controller from claims management in accord with the authority set forth in sections 1.5.503 and 1.5.506 of this part. All requests for disbursements from the Claims Reserve Fund shall be given the highest priority by the Chief Financial Officer with respect to the processing and preparation of a payment request in connection with the compromise or settlement of claims or the payments of judgments.
H. The City Auditor or any person authorized by the City Auditor shall conduct an examination as frequently as required in the judgment of the City Auditor, and in accordance with applicable laws and auditing standards, but not less frequently than once every four (4) years to determine that proper underwriting techniques, sound funding procedures, loss reserves, claims procedures and accounting practices are being followed in the management and operation of the Claims Reserve Fund or any other funds being used to cover deductible amounts when there is insurance coverage. The City Auditor shall present a report of findings to the City Council.
I. In the City's comprehensive annual financial report, the Chief Financial Officer shall report regarding the financial activities of the Claims Reserve Fund. (Ord. 11-18; Ord. 14-29)
A. Requirements: It shall be the responsibility of claims management to investigate and to deny, compromise or settle all claims filed against the City or its employees pursuant to the requirements of:
1. The Colorado Governmental Immunity Act or actions arising under Federal law in accord with this article. Prior to settling a claim of fifteen thousand dollars ($15,000.00) or more, the person authorized to settle the claim shall consult with the Manager of the affected group or department to determine the appropriateness of the compromise or settlement amount. The ultimate decision shall rest with the person having the responsibility pursuant to this section to settle or compromise the claim. Nothing shall preclude the person authorized to settle or compromise the claim to refer the claim to a person with higher settlement authority, the Claims Review Board or City Council, as appropriate.
2. The Colorado Auto Accident Reparations Act as set forth in Colorado Revised Statutes.
B. Authorization: The following parties are authorized to make compromises or settlements on behalf of the City in the following amounts:
1. The Risk Manager is authorized to settle claims:
a. Pursuant to the Governmental Immunity Act or actions arising under Federal law for an amount not to exceed fifty thousand dollars ($50,000.00);
b. Pursuant to the provisions of the Colorado Auto Accident Reparations Act as set forth in Colorado Revised Statutes;
2. The City Attorney is authorized to settle matters or claims for an amount not to exceed fifty thousand dollars ($50,000.00);
3. The Claims Review Board is authorized to settle matters or claims for an amount not to exceed one hundred thousand dollars ($100,000.00);
4. The City Council is authorized to settle matters or claims for an amount not to exceed the maximum liability limits under the Colorado Governmental Immunity Act for claims which lie or could lie in tort regardless of the nature of the action which is brought by the claimant, and for any other amounts which the City Council deems appropriate with respect to claims arising under Federal law.
C. Report: No matters or claims shall be settled unless supported by a claims settlement report, which will give a concise statement of the nature of the matter or claim, the history of the proceedings and a recommendation from the person assigned the matter or claim on behalf of the City.
D. Cooperation And Assistance: In investigating claims brought against the City and its officials or employees, the Risk Manager shall have authority to seek the advice and cooperation of all departments, offices or agencies of the City with respect to establishment of facts, determination of liability and assistance in utilization of the professional expertise of various employees within the City in connection with those claims. Advice and assistance shall be provided on a timely basis.
E. Examination Of Procedures; Report Of Findings: As frequently as required in the judgment of the City Auditor, and in accordance with applicable laws and auditing standards, but not less frequently than once every four (4) years, the City Auditor or any person authorized by the City Auditor shall conduct an examination of the claims procedures, use of settlement authority and management and operation of claims management to determine that the use and operation of the Claims Reserve Fund is being accomplished in a prudent and reasonable manner. The City Auditor shall present a report of findings to the City Council.
F. CSU And Enterprise Insurance:
1. The Utilities and some Enterprise Fund activities have not canceled their general liability or automobile liability insurance policies. However, these insurance policies may contain self-insurance retention amounts which are the responsibility of the City. This Code enables transfers of monies set aside to cover self-insurance retention amounts of the Claims Reserve Fund if done by the City Council. If not done by the City Council, then the accounts within the respective Enterprise Funds and the Utilities Department's budgets for coverage of self-insurance retention amounts are recognized as monies that can be used in accord with Colorado Revised Statutes section 24-10-113 to pay any costs of defense, including expert witness fees, outside counsel legal fees, investigation and other related defense costs in connection with claims brought pursuant to this article and to pay any compromise, settlement or final judgment.
2. The Utilities and other Enterprise Fund activities which have general liability and automobile liability insurance coverage with self-insurance retention amounts shall cause claims made against the Utilities or other Enterprise Fund activities to be handled up to the self-insurance retention amounts or in the case of claims under the Colorado Governmental Immunity Act, up to the damage limitations set forth in Colorado Revised Statutes section 24-10-114 in accord with this article.
G. Disbursements: Disbursements from the Claims Reserve Fund or any other accounts established for the purpose of covering self- insurance retention amounts where there is general liability and automobile liability insurance coverage for claims compromised or settled shall be paid by the City or Utilities Chief Financial Officer on behalf of the Utilities upon payment requests drawn in accord with the law and this article. All disbursements made by the City or Utilities Chief Financial Officer shall be duly reported in the City or Utilities Chief Financial Officer's annual financial report. (Ord. 11-18; Ord. 14-29; Ord. 19-6)
A. There is hereby created a Claims Review Board which shall consist of the Mayor, for claims against the City, or the Utilities Chief Executive Officer, for claims against the Utilities, the City Attorney, the City's or Utility's Chief Financial Officer, and the affected department, division, office or agency Director or Manager. The Claims Review Board shall meet only when required to determine whether or not to compromise or settle a claim within the authorities provided in this chapter. Three (3) members present shall constitute a quorum of the Board.
B. The Risk Manager shall act as the Secretary of the Board and shall be responsible for preparing its agendas and providing the Board with all applicable reports and documentation necessary to properly assess claims brought before it.
C. It shall be the responsibility of the Risk Manager and the City Attorney to prepare a claims assessment in connection with each claim brought before the Board. The claims assessment shall meet all of the requirements, as a minimum, of the claims settlement report described in this chapter.
D. The Board shall have the following powers and duties:
1. To compromise or settle claims on behalf of the City and its officials and employees in amounts authorized in section 1.5.503 of this part.
2. To adopt rules governing its own organization and proceedings.
3. To advise in the management of the Claims Reserve Fund created pursuant to this part and activities arising in connection with the settlement or compromise of claims brought against the City, its officials and employees. (Ord. 11-18; Ord. 18-41)
A. Pursuant to the requirements of City Charter and this chapter, the City Attorney shall have the responsibility to represent the City, its boards and commissions, officers and employees, as applicable, in connection with all litigation arising under claims brought pursuant to this article.
B. The City Attorney shall have the authority to settle litigation up to fifty thousand dollars ($50,000.00), with settlements up to one hundred thousand dollars ($100,000.00) having the prior approval of the Claims Review Board, and settlements over one hundred thousand dollars ($100,000.00) with the prior approval of City Council. Nothing herein precludes the City Attorney from exercising discretion in presenting any settlement, regardless of amount, to the City Council for prior approval.
C. The City Attorney shall have the power to authorize requests to the Risk Manager for disbursements from the Claims Reserve Fund or any other appropriate account in connection with litigation expenses, including, but not limited to, outside counsel fees, defense costs, expert witness fees and preparation of demonstrative evidence which is necessary to properly and reasonably defend the City, its officers and employees in connection with the litigation.
D. The City Attorney shall have the authority to contract for outside counsel in connection with litigation arising out of claims brought pursuant to this article, and may request disbursements from the Claims Reserve Fund or another appropriate fund.
E. In addition to the monthly litigation report, the City Attorney shall be responsible for providing a litigation settlement report to the City Council, Mayor, Risk Manager, and to the Utilities Chief Executive Officer for litigation cases pertaining to Utilities for all cases which have been settled without the prior knowledge of City Council pursuant to the requirements of this chapter. (Ord. 11-18; Ord. 18-41)
The City Council hereby recognizes that the City is required to provide workers' compensation coverage for the City due to personal injuries or death sustained by any employee, pursuant to Colorado Revised Statutes title 8, articles 40 to 47 and 55. For purposes of this article, reference to the "City" shall be deemed to include the general fund, to also include all enterprise and internal service fund activities, Utilities, MHS Enterprise, regional building, housing authority, joint ventures, authorities, and others. In the interest of clarity, "MHS Enterprise" does not refer to any current or future operator of leased facilities under the Memorial Health System Affiliation or encompass such operator's employees.
The City Council recognizes the need to respond to meritorious claims of employees in a timely fashion. An appropriate remedy is to create reserve funds for the purpose of self-insurance to the extent that insurance coverage has not been obtained. The City Council declares that the purpose of this article is to create claim reserve funds, provide a mechanism for claims adjustment, investigation, and defense, and to authorize the settlement and payment of claims due to personal injuries or death sustained by any employee pursuant to Colorado Revised Statutes title 8, articles 40 to 47 and 55. (Ord. 11-18; Ord. 15-62)
A. There are hereby created funds to be known as the workers' compensation claim reserve fund, which will consist of all monies which may be appropriated to the fund by the City Council or which may be otherwise made available to it by the City Council. This fund is created for the purpose of enabling the City to meet its statutory workers' compensation obligations to its employees and Executive Director of the Department of Labor and Employment under rules governing the issuance of self-insurance permits, Code of Colorado Regulations 1101.4.
The terms and conditions of the employer's coverages and benefits are particularly described in Colorado Revised Statutes title 8, articles 40 to 47 and 55 and the City's excess insurance policy. The monies "otherwise made available" shall be deemed to include transfers of monies to the funds authorized in any given annual budget ordinance. All interest earned from the investment of monies in the workers' compensation claim reserve fund shall be credited to those funds and become a part. The monies in the funds are hereby continuously appropriated for purposes of this article. The City's Chief Financial Officer shall account for all independent fund categories within the workers' compensation claim reserve fund including Utilities, MHS Enterprise (in the interest of clarity, "MHS Enterprise" does not refer to any current or future operator of leased facilities under the Memorial Health System Affiliation or encompass such operator's employees), authorities, ventures and enterprise funds if any are so appropriated. The accounting of these funds shall be in a manner consistent with the applicable governmental accounting standards. At the end of any fiscal year, all unexpended and unencumbered monies in the workers' compensation claim reserve funds shall remain in the fund, shall not be credited or transferred to any other fund, and shall not be construed to be an asset of the City.
B. The workers' compensation claim reserve funds shall maintain reserves to provide for contingency so that in any year the contribution of the workers' compensation claim reserve funds from other funds is adequate to cover the actual expenses realized in that year. The Risk Manager, after consultation with the Chief Financial Officer and the City Attorney, shall recommend the amount of money that is required to maintain adequate reserves. Adequate reserves shall be maintained in the workers' compensation claim reserve funds subject to available appropriations made by the City Council at its discretion in an amount coordinated with the Executive Director of the Department of Labor and Employment. Each fund balance shall include sufficient funds to cover and discharge all known and potential workers' compensation liability and allow for administrative costs in discharging the liability.
C. The purpose of the workers' compensation claim reserve fund shall be to:
1. Pay workers' compensation claims and related expenses brought by its employees pursuant to Colorado Revised Statutes title 8, articles 40 to 47 and 55, which the City is legally obligated to pay.
2. Pay the costs of defense, investigation, outside counsel legal fees and other related costs in connection with claims brought pursuant to the requirements of this chapter.
D. Monies in the workers' compensation claim reserve fund shall not be used to pay any claim except those pursuant to subsection C of this section.
E. The Chief Financial Officer shall be responsible for the management and investment of the workers' compensation claim reserve fund. All earnings collected from the fund will be credited to the fund.
F. The minimum workers' compensation claim reserve fund balance shall be an amount approved by the Executive Director of the Department of Labor and Employment.
G. The setting aside of reserves for self-insurance purposes in the workers' compensation claim reserve funds created in this part shall not be construed to be creating an insurance company nor shall the workers' compensation claim reserve fund otherwise be subject to the provisions of the laws of the State of Colorado regarding insurance or insurance companies.
H. Disbursements made from the workers' compensation claim reserve fund for eligible expenditures shall be initiated by the preparation of a payment request or other appropriate electronic request as approved by the Chief Financial Officer. All requests for disbursements from the workers' compensation claims reserve funds shall be given the highest priority with respect to the processing and preparation of payments in connection with the compromise or settlement of claims or the payments of judgments.
I. The City Auditor or any person authorized by the City Auditor shall conduct an examination as frequently as required in the judgment of the City Auditor, and in accordance with applicable laws and auditing standards, but not less frequently than once every four (4) years, to determine that proper underwriting techniques, sound funding procedures, loss reserves, claims procedures and accounting practices are being followed in the management and operation of the workers' compensation claim reserve fund. The City Auditor shall present a report of findings to the City Council. (Ord. 11-18; Ord. 14-29; Ord. 15-62)
A. It shall be the responsibility of claims management to investigate and to admit, deny, compromise or settle all claims filed against the City by its employees pursuant to the requirements of the workers' compensation law as described in Colorado Revised Statutes, title 8, articles 40 to 47 and 55, and the employer's excess insurance policy.
B. In investigating claims brought against the City and its officials or employees, claims management shall have authority to seek the advice and cooperation of all departments of the City with respect to establishment of facts, determination of liability and utilization of the professional expertise of various employees within the City in connection with those claims. Advice and assistance shall be provided on a timely basis. (Ord. 11-18)
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