HomeMy WebLinkAboutMINUTES - 07151986 - 1.59 TO: BOARD OF SUPERVISORS
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FROM: Donald L. Bouchet, Auditor-Controllerar.�,`,�. .
Costa
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DATE: JUH Z3 PJ 3G I � SOU Cout'l y
SUBJECT: Increase Workers Compensation Revolving Trust Fund
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION
Determine that $250,000 is. sufficient to provide for Workers Compensation
claims for a 30-day period pursuant to Government Code Section 31000.8.
Authorize increasing the amount of the Workers Compensation Revolving Trust
established by Resolution 77/490 not to exceed $250,000.
FINANCIAL IMPACT
Funds will be moved to an interest bearing checking account from the Workers
Compensation Self Insurance Trust Fund, reducing the amount available there for direct
investment. The net ,effect should not be significant.
REASON FOR RECOMMENDATIONS
The figure of $50,000 was established in 1977 and all costs have risen in
the interim. The Personnel Department has calculated the average monthly expenditure
is now running $249,000.
Increasing the revolving fund balance will permit immediate release of checks
when written rather than waiting until the fund has been replenished as happens now with
the $50,000 limit.
BACKGROUND
The Workers Compensation Self ,Insurance program was established by Resolution
77/490 passed June 14, 1977. A revolving fund, as permitted under Government Code
Section 31000.8, was established not to exceed $50,000 for the payment of Workers
Compensation claims. An administering firm pays the claims from the revolving fund
and submits documentation to the County for reimbursement of amounts paid. There have
been times when payments are delayed because the. fund is waiting .for reimbursement.
The increase in the amount of the fund will alleviate this problem.
CONSEQUENCES OF NEGATIVE ACTION
Payments to claimants will be delayed if the revolving fund balance is inadequate.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON u y , APPROVED AS RECOMMENDED _X OTHER
VOTE OF SUPERVISORS
X IV
UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED July 15,. 1986
Auditor-Controller r— = -- -- - — --.-- _
Personnel I PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 BY DEPUTY