CITY OF CENTRAL FALLS
FINANCE COMMITTEE MEETING
MONDAY, DECEMBER 1, 1997
A MEETING OF THE CITY COUNCIL FINANCE COMMITTEE WAS HELD ON THE ABOVE DATE IN THE CITY HALL COUNCIL CHAMBERS AT 9:32 A.M.
MEMBERS PRESENT:
COUNCILMAN NOURY
COUNCILMAN WEBER
COUNCILMAN WEBER CHAIRED THE MEETING.
ALSO PRESENT WERE
JOHN KUZMISKI, FINANCE DIRECTOR
ELIZABETH CROWLEY, ACTING CITY CLERK
MATTHEW OLIVERIO, ASSISTANT CITY SOLICITOR
DISCUSSION ON ORDINANCE ESTABLISHING AN INTERNAL SERVICE FUND IN THE CITY OF CENTRAL FALLS FOR WORKERS COMPENSATION COSTS.
COUNCILMAN WEBER ASKED FOR A BRIEF OVERVIEW OF THE WORKERS COMPENSATION ACT.
JOHN KUZMISKI RESPONDED. HE STATED THAT THE KEY ELEMENT WAS EXCLUSIVE REMEDY PRINCIPAL, THE EMPLOYEE FORGOES THE RIGHT TO SUE THE CITY FOR PAIN AND SUFFERING ETC. AND IN EXCHANGE THE EMPLOYER WILL PROVIDE MANDATED LIST OF BENEFITS. THE ADVANTAGE TO THIS IS IT ELIMINATES THE POTENTIAL FOR LARGE LAW SUITS. THE CITY IS ONLY LIABLE FOR 75% OF THE SPENDABLE BASE WAGES. HE THEN GAVE EXAMPLES OF SPENDABLE BASE WAGES BEFORE THE INJURY, AFTER THE INJURY USING 67% OF GROSS WAGE AND AFTER THE INJURY USING 75% IF SPENDABLE BASE WAGES.
MATTHEW OLIVERIO EXPLAINED THAT ANOTHER BENEFIT OF WORKERS COMPENSATION IS THE ABILITY OF THE CITY TO UTILIZE THE WORKERS COMPENSATION COURT TO INVALIDATE EXTENT OF EMPLOYEES DISABILITY ON A REGULAR BASIS TO CONTINUE COMPENSATION. HE STATED THAT THE LAW REQUIRES 26, 39, & 52 WEEK PHYSICAL EXAMS TO EVALUATE THE DISABILITY. HE ALSO STATED THAT THIS ALLOWS THE CITY TO KEEP UP WITH THE LATEST WORKERS COMPENSATION ACT CHANGES WHICH WOULD RESULT IN SAVINGS IN BX ETC. HE ALSO STATED THAT THE STATE ESTABLISHED A FRAUD UNIT WHICH CAN ALSO BE USEFUL.
MATTHEW OLIVERIO EXPLAINED THAT THIS IS A WAY OF MAINTAINING A COLLAR ON LIABILITY TO THE CITY, THE EMPLOYEE CANNOT RECEIVE PAIN AND SUFFERING, MEDICAL BENEFITS OR LOST WAGES. HE ALSO BRIEFED THE COMMITTEE ON WRONGFUL DEATH SUITS.
COUNCILMAN NOURY QUESTIONED THE LIMITATIONS OF LIABILITY TO THE CITY.
JOHN KUZMISKI REPEATED THAT THE MOST IMPORTANT ASPECT WAS THE EXCLUSIVE REMEDY PRINCIPAL. THE EMPLOYEE FORGES THE RIGHT TO SUE THE CITY AS WELL AS ALL OTHER RIGHTS AND REMEDIES.
MATTHEW OLIVERIO EXPLAINED GENERAL LIABILITY LAW AND STATED THAT UNDER WORKERS COMPENSATION IT DOESN'T MATTER WHOSE AT FAULT.
COUNCILMAN WEBER QUESTIONED THE WORKERS COMPENSATION COURT AND FRAUD UNIT. HE ALSO ASKED HOW MUCH THE PREMIUM VS SELF INSURANCE.
JOHN KUZMISKI ESTIMATED $80,000 OR MORE FOR PREMIUM WITH A COMPANY. HE COMMENTED ON THE $50,000 SET ASIDE IN THE BUDGET.
DISCUSSION ENSUED.
JOHN KUZMISKI EXPLAINED STOP LOSS RESERVES. THIS IS AN INSURANCE AGAINST A MAJOR DISASTER WHICH SETS EXPOSURE LIMITS.
COUNCILMAN WEBER WHAT THE PAST COST RELATIVE TO WORKERS COMPENSATION HAVE BEEN,
JOHN KUZMISKI STATED THAT OVER THE PAST THREE YEARS THE DIRECT COST WAS APPROXIMATED AT $64,000 WITH THE INDIRECT COST ABOUT $250,00O TO 300,000.
COUNCILMAN NOURY QUESTIONED THE GUIDELINES FROM THE DEPARTMENT OF LABOR AND TRAINING.
MATTHEW OLIVERIO RESPONDED.
COUNCILMAN NOURY QUESTIONED THE 1/3 OF SICK TIME.
JOHN KUZMISKI EXPLAINED.
DISCUSSION ENSUED.
CHAIRMAN WEBER SET THE NEXT MEETING FOR MONDAY, DECEMBER 8, 1997 AT 9:30 P.M.
MEETING ADJOURNED AT 10:25 A.M.
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ELIZABETH A. CROWLEY, CMC
ACTING CITY CLERK
INTERPRETERS FOR THE HEARING IMPAIRED AVAILABLE UPON 72 HOUR NOTICE MADE AT THE OFFICE OF THE CITY CLERK