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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/17/2015 - FIRST READING OF ORDINANCE NO. 019, 2015, AMENDINGAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY February 17, 2015 City Council STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 019, 2015, Amending Sections 8-106 and 8-108 of the Code of the City of Fort Collins Pertaining to Implementation and Administration of the City’s Risk Management Program. EXECUTIVE SUMMARY The purpose of this item is to modify City Code Sections 8-106 and 8-108 so that responsibilities related to the management and administration of the City’s risk management program are shifted from the City’s Purchasing Agent to the Financial Officer or his or her designee. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Risk Management currently includes insurance procurement, Department Of Transportation compliance, insurance claims management, including general liability and workers compensation, and City safety (excluding Utilities). In addition, several safety professionals and safety teams exist throughout the City and Utilities that report directly into various operating groups. Efforts to improve safety performance are decentralized and uncoordinated and not Citywide. A consultant was hired to assess the current City safety performance, organization, and assess the safety culture. The consultant interviewed dozens of individual City leaders and conducted over a dozen focus groups with a cross section of City staff. The consultant report included recommendations for the creation of a new position, Director of Safety, Security and Risk Management (DSSRM), adding an Occupational Health professional to support work related injury management and analysis, as well as required medical surveillance, and the reorganization of all safety professionals and efforts into a single organization. Both of the two new positions were funded within the 2015-16 Budget. In addition, the consultant recommended elevating the position of DSSRM within the organization, ideally reporting directly to the City Manager, with an alternative of reporting to a direct report of the City Manager. A direct report to the City Manager is difficult given the multiple demands on the City Manager’s time. Because the position has historically been a part of the Financial Services Organization, staff determined it would be best for the DSSRM to report to the Chief Financial Officer (CFO). Improving safety in the work place is largely a challenge of changing the City’s cultural value and focus on safety to where getting the job done safely is as important as getting the job done. The objective of the reorganization is to create focus and direction to all safety efforts across the City and improve the consistency, coordination and implementation of all safety and security programs. A reorganization proposal has been developed by staff and communicated to the organization. While the memo shows the longer term intent of having the DSSRM report directly to the City CFO, it is currently reporting to the Director of Purchasing, consistent with the current City Code. All of the current responsibilities Agenda Item 6 Item # 6 Page 2 within the current Risk Management organization are included under the new DSSRM, with the added responsibilities for safety and security across the entire City. CITY FINANCIAL IMPACTS The reorganization of safety, security and risk management will not have any direct added cost beyond the additional cost funded within the 2015/16 Budget. Longer term, a reduction in worker compensation claims will offset the added cost of the two new positions. ATTACHMENTS 1. Safety Reorganization Memo, December 9, 2014 (PDF) ATTACHMENT 1 - 1 - ORDINANCE NO. 019, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTIONS 8-106 AND 8-108 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO IMPLEMENTATION AND ADMINISTRATION OF THE CITY’S RISK MANAGEMENT PROGRAM WHEREAS, the City Code currently requires the City’s Purchasing Agent to be responsible for implementation and administration of the City’s risk management program; and WHEREAS, the City’s Financial Officer has analyzed the City’s safety and risk management programs and determined that reorganization of personnel and responsibilities is advisable and necessary in order to maximize efforts to improve performance; and WHEREAS, the City Council has determined that the recommended City Code amendments are in the best interests of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 8-106 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-106. Covered expenses. Except to the extent that the City has agreed otherwise in an intergovernmental agreement with any other participating entity concerning the participating entity's legal liability to third-party claimants, as authorized in § 8-105, the fund shall only be used to pay the City's uninsured portion of the following "covered expenses": (1) The City's indemnity and defense obligations to its employees under Division 6, Article VI of Chapter 2 of this Code. (2) The City's costs and attorneys' fees in defending the City and/or any of its employees against: a. Any claim arising under contract; b. An action under Rule 106 of the Colorado Rules of Civil Procedure; c. A declaratory judgment action; d. An action arising under a state or federal statute; and e. An inverse condemnation action. (3) Judgments entered against and settlements agreed to by the City in civil actions for damages arising under tort, state or federal statute, or Rule 106(a)(2) of the Colorado Rules of Civil Procedure; - 2 - (4) The City's costs and expenses incurred for the repair or replacement of City property, real or personal, which costs are sustained by reason of the theft of or the damage to said property, excluding normal wear and tear, provided that such theft or damage is customarily covered by a commercial property insurance policy; (5) The City's defense costs, attorneys' fees, medical expenses, disability benefits, indemnity benefits and other costs associated with workers' compensation claims filed against the City; (6) Insurance premiums, broker fees and taxes for liability, property and workers' compensation insurance policies; (7) Such costs of administering the program as are deemed reasonable and necessary by the City’s Director of Purchasing and Risk Management Financial Officer or such officer’s designee; and (8) Loss prevention costs for safety training, incentive programs, personal protective equipment for employees, industrial hygiene studies and other expenses that are deemed appropriate by the City's Director of Purchasing and Risk ManagementFinancial Officer or such officer’s designee. Section 2. That Section 8-108 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-108. Implementation and administration. (a) The City's Purchasing AgentFinancial Officer shall be responsible for implementation and administration of the program, including the settlement of claims. The Purchasing AgentFinancial Officer is authorized to promulgate rules for the proper daily management, operation and maintenance of the program, and is further authorized to enter into a professional services agreement pursuant to relevant provisions of this Code for the administration of claims. (b) The Purchasing AgentFinancial Officer or such officer’s designee shall authorize expenditures from the fund for covered expenses described in § 8-106 and shall maintain such accounting records pertaining to each such transaction as may be deemed necessary by the City's Financial Officer. Covered expenses shall be paid on an occurrence basis. (c) The total amount of the covered expenses paid out of the fund shall be allocated among the various departments of the City, and the departments charged therefor, according to the Purchasing Agent’san assessment of each department's exposure by the Financial Officer or such officer’s designee. Factors to be considered by the Purchasing AgentFinancial Officer or such officer’s designee shall include, without limitation, each department's payroll, revenue, value of property utilized, previous loss history, expected losses and reserves for workers' compensation claims that may be required by the Colorado Department of Labor and Employment. - 3 - Introduced, considered favorably on first reading, and ordered published this 17th day of February, A.D. 2015, and to be presented for final passage on the 3rd day of March, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 3rd day of March, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk