Quarterly Report on Workers Compensation
July 1, 2001 through September 30, 2001
Recommendation
Receive and File the Quarterly Report on Workers’
Compensation.
Background
This report on the City’s workers’ compensation
program is for the period of July 1, 2001 through September 30,
2001.
Analysis
Claims expense for the first quarter of the 01/02 fiscal
year was 9% lower than the previous quarter. Claims expenses
for the last fiscal year ending June 30, 2001 was also down
from the previous year as shown in the table below.
|
Period
|
Claims Expense
|
|
FY 93/94
|
$308,400
|
|
FY 94/95
|
$535,708
|
|
FY 95/96
|
$535,736
|
|
FY 96/97
|
$492,079
|
|
FY 97/98
|
$608,025
|
|
FY 98/99
|
$521,352
|
|
FY 99/00
|
$589,731
|
|
FY 00/01
|
$447,801
|
| |
|
|
FY 01/02 – First Quarter
|
$167,068
|
The table below shows the total workers’ comp. reserve
for future liability on existing claims. The reserves have
increased dramatically since the City changed third party
administrators (Hazelrigg Risk Management Services). The new
administrator has a different philosophy and method for setting
reserve amounts. Hazelrigg believes that the prior
administrator had significantly underestimated the future
liability on the City’s claims.
|
Date
|
Total Workers’ Comp. Reserve
|
|
June 1996
|
$1,130,925
|
|
June 1997
|
$1,266,861
|
|
June 1998
|
$833,161
|
|
June 1999
|
$770,263
|
|
June 2000
|
$617,124
|
|
June 2001
|
$945,431
|
| |
|
|
September 2001
|
$1,081,731
|
The number of claims reported during the fiscal year is
below the average of the prior five years. Over the last six
years an average of 37 claims were reported annually. To date,
11 claims have been reported through September 2001. This is
higher than the average reported during a quarter.
Cases Reported By Fiscal Year
95/96 54
96/97 36
97/98 30
98/99 47
99/00 26
00/01 31
2001/2001 11 to date
Attached is a table showing a summary of the current open
claims. The table shows the claims by department, the date of
injury, the nature and type of injury, those who are currently
employed by the City, and those who are currently off work due
to their injury. Clearly the majority of claims received
continues to be from the Police Department. This is consistent
with the nature of work, consistent with the benefits available
to public safety employees, and consistent with other
cities’ claims.
In previous reports staff had gathered data from other
cities to determine how the City of Hermosa Beach compares with
other cities’ workers’ compensation program costs.
In those reports we showed the cost of workers’
compensation per $100 of payroll and the incident rates which
show the number of claims reported per one million dollars of
payroll. In August, the City received a report from the
Independent Cities Risk Management Authority (ICRMA) comparing
29 member cities’ workers’ compensation loses for
the calendar year 1999. On average, the City of Hermosa Beach
ranks approximately 18
th
of the 29 ICRMA cities. The City’s loss rate is
approximately 16% higher than the ICRMA average. The average
cost per claim is 2% above the average and the number of claims
per 100 employees is 12% above the ICRMA average.
One of the greatest costs associated with providing workers
compensation benefits is in providing salary continuation to
sworn police and fire employees while they are temporarily
disabled from their work. These benefits are provided in the
Labor Code and are commonly referred to as "4850 time". Not
only must public agencies continue to pay the full salary for
police and fire employees while they are off, there are
significant overtime costs in covering those shifts for the
injured worker. Staff has recently drafted a modified duty
policy that has been distributed to the employee associations
for their input. The purpose of this policy is to provide
temporary modified work assignments to employees until they are
released to full duty. Cities with these policies have
typically found that employees are able to return to their
usual and customary duties sooner when they remain active and
involved in work. The City has on a limited basis been
providing modified duty assignments in some departments.
As previously reported, one cause for increasing
workers’ compensation claims costs has been due to
legislative increases in benefits provided to injured workers,
especially police and fire employees. Currently there are two
bills (SB 424 & SB 71) on the Governor’s desk
awaiting signature that will increase workers’
compensation benefits. SB 71 sponsored by Senator Burton would
allow an injured police officer to claim an injury to his/her
low back on a "presumptive" basis. For example, a police
officer could claim that injury to his low back was caused from
wearing his/her duty belt regardless of whether that injury may
have been caused or exacerbated by extra-curricular activities
off-duty. SB 71, also sponsored by Senator Burton, contains
general increases in workers’ compensation costs. The
League of California Cities reports that this legislation will
increase cities’ workers’ compensation costs by
nearly 25%.
|
Department
|
Classification
|
Date of Injury
|
Type of Injury
|
Activity
|
Off Work
|
|
|
|
|
|
|
|
|
CURRENT EMPLOYEES
|
|
|
|
|
|
|
|
|
|
|
|
|
Comm. Dev.
|
Planner
|
8/15/00
|
Internal
|
Job-related stress
|
N
|
|
Finance
|
Clerical
|
6/24/01
|
wrist strain
|
moving heavy
equipment
|
N
|
|
Fire
|
Fire Engineer
|
1/27/01
|
Shoulder Strain
|
Training Exercise
|
Y
|
|
Fire
|
Fire Engineer
|
8/14/01
|
Knee strain
|
Exiting Fire Engine
|
Y
|
|
Fire
|
Reserve Firefighter
|
1/14/01
|
Blood Exposure
|
Splashed with blood during
medical aid
|
N
|
|
Fire
|
Fire Engineer
|
5/31/00
|
Neck/back strain
|
getting out of chair
|
N
|
|
Fire
|
Fire Engineer
|
4/5/01
|
Hernia
|
physical fitness
testing
|
N
|
|
Fire
|
Fire Captain
|
4/1/01
|
Ankle Sprain
|
Running
|
N
|
|
Police
|
Comm. Serv. Officer
|
8/29/96
|
wrist/head
|
Automobile accident
|
N
|
|
Police
|
Police Officer
|
6/29/01
|
Back Strain
|
Exiting vehicle
|
Y
|
|
Police
|
Police Officer
|
7/17/01
|
Heart/Spine/Hearing
|
Normal job duties over
time
|
Y
|
|
Police
|
Police Officer
|
7/21/00
|
Right Hand trauma
|
Arresting suspect
|
Y
|
|
Police
|
Police Officer
|
12/25/00
|
Right Shoulder
|
Arresting suspect
|
Y
|
|
Police
|
Police Officer
|
8/1/01
|
Shoulder Strain
|
Lifting transient
|
Y
|
|
Police
|
Police Officer
|
9/2/01
|
Back/Arm/Elbow
Strain
|
Arresting suspect
|
N
|
|
Police
|
Police Officer
|
6/16/01
|
Psyche
|
Job-related stress
|
N
|
|
Police
|
Police Officer
|
1/5/01
|
Hepatitis Exposure
|
Suspect coughed in
officer's face
|
N
|
|
Police
|
Police Officer
|
9/9/97
|
Multiple orthopedic
|
Motorcycle accident
|
N
|
|
Police
|
Police Officer
|
1/5/99
|
Throat
|
Shouting at shhoting
range
|
N
|
|
Police
|
Police Officer
|
10/25/88
|
Back & Internal
|
Normal job duties over
time
|
N
|
|
Police
|
Police Officer
|
9/28/00
|
Hip/Neck/Spine/Head
|
Motorcycle accident
|
N
|
|
Police
|
Police Officer
|
7/13/01
|
Back Strain
|
Arresting suspect
|
N
|
|
Police
|
Police Officer
|
7/4/01
|
Hand & Finger
|
Arresting suspect
|
N
|
|
Police
|
Police Officer
|
5/8/01
|
Hernia
|
Normal job duties
|
N
|
|
Police
|
Police Officer
|
10/18/00
|
Shoulder Strain
|
Scaling fence
|
N
|
|
Police
|
Police Officer
|
7/25/01
|
Head
|
Bumped head on car
door
|
N
|
|
Police
|
Police Officer
|
7/3/91
|
Psyche
|
Job-related stress
|
N
|
|
Police
|
Police Officer
|
5/10/01
|
Hernia
|
Normal job duties
|
N
|
|
Police
|
Police Officer
|
11/9/99
|
Neck & Back
|
Motorcycle accident
|
N
|
|
Police
|
Police Officer
|
6/21/00
|
Knee strain
|
Running
|
N
|
|
Police
|
Police Officer
|
6/20/82
|
Hand/Knee/Lower
Extremities
|
Motorcycle accident
|
N
|
|
Public Works
|
Maintenance
|
12/18/00
|
Broken neck
|
Fall from truck
|
Y
|
|
Public Works
|
Crewleader
|
11/8/00
|
Back Strain
|
digging a trench with a
shovel
|
N
|
|
Public Works
|
Maintenance
|
8/31/98
|
Back & Soulder
|
Fall from stage
|
N
|
|
|
|
|
|
|
|
|
FORMER EMPLOYEES
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
|
Clerical
|
12/23/96
|
Back Strain
|
Lifting Boxes
|
n/a
|
|
Fire
|
Firefighter/Paramedic
|
3/9/80
|
Internal
|
Job-related stress
|
n/a
|
|
Police
|
Gen. Serv. Officer
|
4/9/93
|
Knee/Ankle/Foot
|
Employee hit by car
|
n/a
|
|
Police
|
Gen. Serv. Officer
|
11/13/91
|
Multiple orthopedic and
internal
|
Automobile accident
|
n/a
|
|
Personnel
|
Clerical
|
4/25/83
|
feet
|
standing/walking
|
n/a
|
|
Personnel
|
Clerical
|
7/22/93
|
wrists
|
repetitive motion
|
n/a
|
|
Police
|
Police Officer
|
9/12/00
|
Back/ankle/neck
|
Stepped off curb
|
n/a
|
|
Police
|
Police Officer
|
10/4/00
|
Hypertension/hearing
loss/skin cancer
|
Normal job duties over
time
|
n/a
|
|
Police
|
Police Officer
|
3/5/98
|
Back Strain
|
Twisted while backing
police car
|
n/a
|
|
Police
|
Police Officer
|
8/25/00
|
Knee/arm/back strain
|
tripped chasing
suspect
|
n/a
|
|
Police
|
Police Officer
|
9/12/00
|
Hearing &
Internal
|
Normal job duties over
time
|
n/a
|
|
Police
|
Police Officer
|
3/7/98
|
Back/Shoulder strain
|
Arresting suspect
|
n/a
|
|
Police
|
Police Officer
|
7/24/85
|
Hearing &
Internal
|
Normal job duties over
time
|
n/a
|
|
Police
|
Police Officer
|
1/26/94
|
Back Strain
|
Removing Suspect from
car
|
n/a
|
|
Police
|
Crossing Guard
|
10/13/87
|
Back
|
Fell in street
|
n/a
|
|
Police
|
Police Officer
|
4/7/99
|
Skin Cancer &
Diabetes
|
Normal job duties over
time
|
n/a
|
|
Police
|
Police Officer
|
11/4/83
|
Internal
|
Job-related stress
|
n/a
|
|
Police
|
Police Officer
|
3/14/85
|
Back & Neck
|
Automobile accident
|
n/a
|
|
Public Works
|
Maintenance
|
12/1/98
|
Back & Neck
|
Normal job duties
|
n/a
|
|
|
|
|
|
|
|
|
Comparison of ICRMA Member Cities'
Workers' Comp Losses and Loss Ratios for the
Calendar Year 1999
|
|
|
|
Prepared by John M. Nielsen, ARM, ICRMA
General Manager (8-4-01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Rate
|
|
|
Average
|
|
|
Claims
|
|
|
|
|
Per $100
|
ICRMA
|
|
Cost Per
|
ICRMA
|
|
Per 100
|
ICRMA
|
|
ICRMA City
|
|
Payroll
|
Rank
|
|
Claim
|
Rank
|
|
Employees
|
Rank
|
|
Glendora
|
|
$ 0.98
|
1
|
|
$ 3,902
|
4
|
|
9.51
|
2
|
|
Azusa
|
|
$ 1.01
|
2
|
|
$ 2,925
|
1
|
|
13.17
|
10
|
|
Hawthorne
|
|
$ 1.29
|
3
|
|
$ 3,179
|
2
|
|
17.83
|
19
|
|
Arcadia
|
|
$ 1.36
|
4
|
|
$ 4,695
|
6
|
|
11.77
|
6
|
|
Vernon
|
|
$ 1.44
|
5
|
|
$ 7,412
|
15
|
|
10.56
|
3
|
|
Fullerton
|
|
$ 1.53
|
6
|
|
$ 4,238
|
5
|
|
15.33
|
15
|
|
Upland
|
|
$ 2.01
|
7
|
|
$ 4,748
|
7
|
|
14.85
|
14
|
|
Colton
|
|
$ 2.63
|
8
|
|
$ 5,891
|
11
|
|
17.06
|
18
|
|
Whittier
|
|
$ 2.80
|
9
|
|
$ 5,909
|
12
|
|
14.55
|
13
|
|
Chino
|
|
$ 2.96
|
10
|
|
$ 9,596
|
20
|
|
11.51
|
4
|
|
West Covina
|
|
$ 3.22
|
11
|
|
$ 8,108
|
17
|
|
12.89
|
8
|
|
Manhattan Beach
|
|
$ 3.30
|
12
|
|
$ 7,162
|
14
|
|
14.10
|
11
|
|
El Segundo
|
|
$ 3.40
|
13
|
|
$ 11,131
|
25
|
|
12.81
|
7
|
|
Indio
|
|
$ 3.45
|
14
|
|
$ 3,200
|
3
|
|
36.65
|
29
|
|
Downey
|
|
$ 3.58
|
15
|
|
$ 9,640
|
21
|
|
12.96
|
9
|
|
El Monte
|
|
$ 4.02
|
16
|
|
$ 5,025
|
8
|
|
22.31
|
25
|
|
Hermosa Beach
|
|
$ 4.04
|
17
|
|
$ 7,709
|
16
|
|
19.06
|
20
|
|
San Fernando
|
|
$ 4.22
|
18
|
|
$ 13,990
|
29
|
|
9.43
|
1
|
|
Baldwin Park
|
|
$ 4.23
|
19
|
|
$ 5,219
|
9
|
|
21.04
|
24
|
|
Redondo Beach
|
|
$ 4.23
|
20
|
|
$ 8,652
|
19
|
|
11.73
|
5
|
|
Alhambra
|
|
$ 4.38
|
21
|
|
$ 11,594
|
26
|
|
14.38
|
12
|
|
Inglewood
|
|
$ 4.63
|
22
|
|
$ 6,793
|
13
|
|
27.33
|
28
|
|
Monrovia
|
|
$ 4.67
|
23
|
|
$ 5,669
|
10
|
|
23.88
|
27
|
|
Culver City
|
|
$ 4.71
|
24
|
|
$ 10,135
|
24
|
|
20.88
|
22
|
|
Lynwood
|
|
$ 4.74
|
25
|
|
$ 8,400
|
18
|
|
16.45
|
17
|
|
Palm Springs
|
|
$ 5.12
|
26
|
|
$ 9,813
|
22
|
|
23.17
|
26
|
|
Bell
|
|
$ 5.36
|
27
|
|
$ 12,607
|
27
|
|
16.10
|
16
|
|
Monterey Park
|
|
$ 5.37
|
28
|
|
$ 9,898
|
23
|
|
21.01
|
23
|
|
Huntington Park
|
|
$ 6.23
|
29
|
|
$ 12,976
|
28
|
|
20.43
|
21
|
|
ICRMA Mean
|
|
$ 3.48
|
|
|
$ 7,594
|
|
|
16.99
|
|
|
CA Mean
|
|
$ 3.40
|
|
|
$ 7,330
|
|
|
18.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ICRMA Median
|
|
$ 3.58
|
|
|
$ 7,412
|
|
|
15.33
|
|
|
CA Median
|
|
$ 2.79
|
|
|
$ 6,332
|
|
|
15.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 1999 Data Not Available from the
City of South Gate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: CIPRA/CAJPA database derived
from Annual Self-Insurer's Reports to the CA Dept. of
Industrial Relations
|
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