HomeMy WebLinkAboutOrdinance No. 19340ORDINANCE NO. 19340
AN ORDINANCE CONCERNING THE CITY'S SELF-INSURANCE PROGRAM;
AND AMENDING SECTION 2.585 OF THE EUGENE CODE, 197'1.
The City Council of the City of Eugene finds that;
The City is authorized under state law to establish a self-insurance
program, and an August 14, 1975 created a Risk Management Fund and provided
far its administration by Ordinance Na. 18329 gadding Section 2,555 to the
Eugene Cade, 1971} passed by the Council and approved by the Mayor an Febru-
ary 7, 1979.
Substantial monetary savings have accrued to the City under the exist-
ing program and additional savings would be realized by self-.insuring
employee benefits. Section 2.585 of the Eugene Code, 1971 should therefore
be amended to clarify that the City's self-insurance/risk management program
includes the self-insuring of employee benefits. Therefore,
THE .CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Based upon the above findings, which are adopted and incor-
porated herein, Section 2.555 of the Eugene Code, 1971, is amended to read
and provide: ;
2.555 Risk Mana ement Fund - Administration.
~1~ On August 14, 1915, in Ordinance No. 15241, a risk management
fund was created. It is the objective of the city to place, maintain, and
carry-aver from year to year in that fund, an amount sufficient to meet the
city's future l i obi 1 i ti es, including but not 1 i mi ted to, level aped cl ai m
costs, incurred but not reported lasses, larger than anticipated judgments,
employee benefit programs, and other contingencies. From time to time,
appropriations to the fund may be made i n accordance with the Local Budget
Law; in addition, all insurance premium refunds, rebates and dividends shall
shat l be placed i n the fund.
~2) The finance officer or designee shall invest such portion of
the risk management fund as is deemed prudent in such manner as will enable
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the city to meet its abligatians in a timely manner. All earnings of the
fund shall became a part of the fund. It is recognized that as the fund
reaches sufficient size it could become sustaining so that earnings will
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reduce the amount, if any, of other city revenues that must be placed in
the fund.
~3} The finance officer or designee is to endeavor to maintain in
the risk management fund a reserve amount for estimated losses, the esti-
mated costs of all insurance premiums, and an amount to defray administrative
costs.
~ 4} Disbursements or transfers from the risk management fund may
be made only by:
~a~ The finance officer or designee in payment of insurance
premiums and administrative expenses of the city`s risk management
program;
fib} The claims adjuster or adjusters contracted with or
employed by the city to administer its risk management program in
settlement of claims up to an amount as provided by contract;
~c} The finance officer or designee, in settlement of
claims of less the $53000 per claim;
~d} The finance officer or designee, in settlement of
claims of $5,D40.00 or more per claim, upon approval by the Court
of the settlement, or, if Court approval is not required by
statute, upon approval of the council.
~5~ The finance officer or designee shall maintain a complete
and accurate file of all claims and payments made and submit a quarterly
report to the city manager on the activities of the risk management fund.
Passed by the City Council this
26th day of June, 19$5
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A.Ss~ City Recorder
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Approved by the Mayor this