ADMINISTRATIVE REPORT

Date: December 21, 1998
Author/Local: PLMarfleet/7701
RTS No. 336

CC File No. 1373

TO:	Vancouver City Council
FROM:	Director of Risk & Emergency Management in consultation with the General Manager of Engineering Services
SUBJECT:	Half-time Investigator Position

RECOMMENDATION

THAT Council approve the creation of a half-time investigator position in Risk & Emergency Management at a cost of approximately $20,000 plus benefits, source of funds to be self-insurance reserve.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

There is no policy directly related.

DISCUSSION

All liability claims against the City are processed through the Risk Management Office, with the exception of claims by and against utility companies which have historically been handled by Engineering staff. The Engineering Department and Risk Management Office recommend that these utility claims now be processed through the Risk Management Office for a number of reasons. The utility companies are now using professional adjusters for these claims and it makes sense that the City should as well. Risk Management employs professional claims investigators and adjusters who are knowledgable and experienced in the legal and administrative aspects of claims handling. Risk Management maintains a record-keeping system for claims which tracks numbers and payments. It would be beneficial to
include utility claims in this system. It would also be beneficial to include utility claims in the financial controls which govern other claims (claims over $10,000 and up to $30, 000 are subject to City Manager approval. Claims over $30,000 are subject to Council approval). Currently all claims, except utility claims, are paid from the City’s self-insurance reserve and it would be consistent to have utility claims paid from the same source. Engineering currently runs the risk of a very large utility claim which would be difficult for them to absorb through their capital budget.

Based on the experience with utility claims it is estimated that this work can be done by a half-time position in Risk Management, estimated to cost approximately $20,000 plus 15% annually. The position would be funded from the self-insurance reserve.

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(c) 1998 City of Vancouver