Title
An Ordinance to Amend Chapter 11 (Risk Fund) of Title I of the Code of the City of Ann Arbor (Ordinance No. ORD-19-21)
Memorandum
The City maintains a Risk Fund to fund liabilities such as worker's compensation claims, settlement of certain legal claims, and other items as outlined in Section 1:265. The Financial and Administrative Services Unit, along with the City Attorney's Office, recently conducted a review of certain code sections to ensure they conform with practice and are in-line with the City interests.
The attached changes to Chapter 11, Risk Fund, are proposed to: (1) codify the current practice of paying employee benefits (and related administrative costs) out of the risk fund; (2) update the appropriation requirement to ensure adequate funding; (3) allow investment of the funds in accordance City investment guidelines, without the necessity of the Board of Insurance Administration's approval; (4) increase the amount that the Board of Insurance is authorized to expend from the Risk Fund without City Council approval (from $5,000 to $10,000); (5) require budgeting be done by February 1, in accordance with the Charter; and (6) allow third party claims administrators to pay claims in accordance with their contract (and not subject to Board and City approval).
City staff recommends approval of these changes.
Staff
Prepared by: Tom Crawford, Financial Services Area Administrator and CFO
Review by: Betsy Blake, Senior Assistant City Attorney
Approved by: Howard S. Lazarus, City Administrator
Body
ORDINANCE NO. ORD-19-21
First Reading: June 17, 2019 Approved: July 1, 2019
Public Hearing: July 1, 2019 Published: July 8, 2019
Effective: July 18, 2019
RISK FUND
AN ORDINANCE TO AMEND CHAPTER 11 (RISK FUND) OF TITLE I OF THE CODE OF THE CITY OF ANN ARBOR.
The City of Ann Arbor Ordains:
Section 1. That Chapter 11 of Title I of the Code of the City of Ann Arbor be amended to read as follows:
1:261. - Risk fund.
The ri...
Click here for full text