Chapter 6.24


6.24.010    Established.

6.24.020    Insurance limitations.

6.24.030    Contract for administration.

6.24.040    Transfer of funds.

6.24.050    Expenditures.

6.24.060    Unexpended balance to be held as reserve.

6.24.010 Established.

There is established a special fund to be designated as the workers’ compensation fund, which shall be charged with the city’s liability to provide uninsured workers’ compensation benefits to its employees and related expenses, including but not limited to administration, investigation, medical examination, attorney’s fees, litigation fees, interest and penalties. [Ord. 1001 N.S. § 1, 1978].

6.24.020 Insurance limitations.

The city, effective as of March 1, 1978, shall not insure against workers’ compensation liability as prescribed in the California Labor Code, except for excess coverage above $100,000 per claim. [Ord. 1001 N.S. § 2, 1978].

6.24.030 Contract for administration.

The city is authorized to enter into an appropriate contract with an independent administrator for the administration of such program. [Ord. 1190 N.S. § 1(a), 1980; Ord. 1161 N.S. § 1(a), 1979; Ord. 1001 N.S. § 3, 1978].

6.24.040 Transfer of funds.

There shall be transferred into the fund as follows:

(a) The remaining unexpended balance of $83,000 of the workers’ compensation premium for the current fiscal year;

(b) Any premium refunds which may be received from the State Compensation Insurance Fund;

(c) Any refunds of benefits or expenses paid or to be paid on account of, or in anticipation of, workers’ compensation paid or to be paid by the city, whether in the form of disability insurance proceeds or subrogation rights against insurers or third party tortfeasors; and

(d) Sums additionally appropriated to such fund by the city council. [Ord. 1001 N.S. § 4, 1978].

6.24.050 Expenditures.

The following expenditures shall be paid from the fund as a continuing appropriation, upon approval of the city manager and without further authorization from the council:

(a) An annual administration fee of $3,000 per year to said independent administrator;

(b) Amounts to maintain the $8,000 trust fund administered by the independent administrator, as authorized in PGMC 6.24.030;

(c) Any additional premiums payable to the State Compensation Insurance Fund on account of coverage to March 1, 1978, but not to exceed $15,000;

(d) Attorney’s fees and expense reimbursement up to $1,000 per claimant for claims litigated with the workers’ compensation appeals board;

(e) Lump sum awards or settlements approved by the workers’ compensation appeals board which have become final;

(f) The premium for excess workers’ compensation coverage up to $20,000 per year; and

(g) Such other and additional workers’ compensation charges as may be approved by the council. [Ord. 1190 N.S. § 1(b), 1980; Ord. 1161 N.S. § 1(b), 1979; Ord. 1001 N.S. § 5, 1978].

6.24.060 Unexpended balance to be held as reserve.

The unexpended balance of the workers’ compensation fund shall be held in trust as a contingency reserve. It is the intent of the council to appropriate at least $75,000 per year to such fund for reserve purposes until a reserve of at least $500,000 shall have been attained. The city manager shall keep the council informed from time to time as to the status of the fund and of any additional funds which may be needed for claims above existing reserve levels. [Ord. 1001 N.S. § 6, 1978].