MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jeff Sinz, Finance Director

Colette Thompson, Borough Attorney

Todd Syverson, Assistant Superintendent

Gary Lamb, Risk Manager

DATE: September 26, 2002

SUBJECT: Resolution 2002-127, establishing a workers' compensation manager position

As briefly discussed during the September 17, 2002, assembly Policies and Procedures Committee meeting, the decision has been made to switch from buying external workers' compensation insurance to self-insure for this coverage and use a third party administrator to process claims.

Discussions with our insurance advisors, Willis & Company, and general information in the industry reveals that workers' compensation costs can be significantly reduced and employee morale improved by actively managing workers' compensation claims. Currently, the safety manager is working with the borough and school district to implement safety and loss prevention programs. These are for compliance with OSHA rules and to otherwise prevent injuries. Once an injury has occurred, the workers' compensation manager would work under the general direction and supervision of the risk manager with the borough and school district and the safety manager to manage these claims. Additionally, this person will be the point of contact with the third party administrator, all of which is expected to significantly improve the time within which an injured employee will recover from the injury and return to work. The starting salary will be between $52,891and $71,402 per year. Attached is the proposed job description for this position.