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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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