WORKERS' COMPENSATION

Colorado Springs City Code ch. 1, art. 5, pt. 6

in effect

Colorado Springs City Code § 1.5.601 PURPOSE AND INTENT

1.5.601: PURPOSE AND INTENT: The City Council hereby recognizes that the City and Utilities are required to provide workers' compensation coverage for the City due to personal injuries or deaths sustained by any City or Utilities employee, pursuant to C.R.S. title 8, articles 40 to 47 and 55; C.C.R. title 7; and other applicable state, federal, and local laws, referred to as the “Colorado Workers’ Compensation Law” for purposes of this article. For purposes of this part, reference to the "City" shall include the general fund, all enterprise internal service fund activities, regional building, the housing authority, and any joint ventures and authorities. The City Council recognizes the need to respond to meritorious claims of employees in a timely fashion by creating reserve funds for self-insurance purposes to the extent that insurance coverage has not been obtained. The City Council declares that the purpose of this part is to: create separate claim reserve funds for the City and Utilities; provide a mechanism for claims adjustment, investigation, and defense; and to authorize the settlement and payment of claims due to personal injuries or deaths sustained by any City or Utilities employee pursuant to the Colorado Workers’ Compensation Law. As used in this article: "Utilities Chief Financial Officer" means the person designated by, and reporting directly to, the Chief Executive Officer, who is responsible for supervising the financial affairs of Utilities, subject to the Chief Executive Officer's ultimate responsibility for the proper and effective administration of Utilities in accord with Article VI of the City Charter; "City Risk Manager" means the person designated by the Chief Human Resources and Risk Officer to oversee the operation of the City Workers' Compensation Claim Reserve Fund described in this article; and "Utilities Risk Manager" means the person designated by the Chief Executive Officer to oversee the operation of the Utilities Workers' Compensation Claim Reserve Fund described in this article. Furthermore, in the interest of clarity, "MHS Enterprise" does not encompass such operator's employees. (Ord. 11-18; Ord. 15-62; Ord. 26-47)

Colorado Springs City Code § 1.5.602 CITY WORKERS' COMPENSATION CLAIM RESERVE FUND; UTILITIES WORKERS’ COMPENSATION CLAIM RESERVE FUND

1.5.602: CITY WORKERS' COMPENSATION CLAIM RESERVE FUND; UTILITIES WORKERS’ COMPENSATION CLAIM RESERVE FUND: A. There are hereby created two (2) funds to be known as the ”City Workers’ Compensation Claim Reserve Fund” and the “Utilities Workers’ Compensation Claim Reserve Fund” (for the purposes of this part, each a “Fund” or collectively the “Funds”). The City Workers’ Compensation Claim Reserved Fund will consist of all monies which may be appropriated to the Fund by the City Council or which may be otherwise made available to it by the City Council. The Utilities Workers’ Compensation Claim Reserve Fund will consist of all monies which may be allocated to the Fund by Utilities or which may be otherwise made available to it by Utilities or the City Council. Each Fund is created for the purpose of enabling the City and Utilities to meet their statutory workers' compensation obligations to their respective employees, and to comply with 7 CCR 1101-4 or its successor regulation. Nothing in this article shall preclude the City or Utilities from hiring a third party to administer accounts funded by each Fund, respectively, in whole or in part. The terms and conditions of employers’ coverages and benefits are particularly described in the Colorado Workers’ Compensation Law and the City's and Utilities’ individual excess insurance policies. The monies "otherwise made available" shall be deemed to include transfers of monies to each Fund authorized in any given annual budget or appropriation ordinance. All interest earned from the investment of monies in each Fund shall be independently credited to, and shall become a part of, the Fund earning the interest. The monies in each Fund are hereby continuously appropriated for purposes of this part. The Chief Financial Officer and Utilities’ Chief Financial Officer shall account for all independent fund categories within the City’s Workers’ Compensation Claim Reserve Fund and the Utilities Workers’ Compensation Claim Reserve Fund, respectively. The City Workers’ Compensation Claim Reserve Fund shall include: the Enterprises except for the MHS Enterprise and Utilities; and any authorities, ventures, and enterprise funds if any are so appropriated. The Utilities Workers’ Compensation Claim Reserve Fund shall include all Utilities authorities and ventures if any are so appropriated. The City and Utilities shall account for the Funds in a manner consistent with the applicable governmental accounting standards. At the end of any fiscal year, all unexpended and unencumbered monies in each Fund shall remain in each Fund; such monies shall not be: credited or transferred to any other fund, or construed to be assets of the City or Utilities. B. Each Fund shall maintain reserves to provide for contingency so each Fund may adequately cover the actual expenses realized by each Fund in that year. The City Risk Manager, after consultation with the Chief Human Resources and Risk Officer, Chief Financial Officer and the City Attorney, shall recommend the amount of money that is required to maintain adequate reserves within the City Workers’ Compensation Claim Reserve Fund, in an amount compliant with the Colorado Department of Labor and Employment. The Utilities Risk Manager, after consultation with the Utilities Chief Financial Officer and the City Attorney, shall recommend the amount of money that is required to maintain adequate reserves within the Utilities Workers’ Compensation Claim Reserve Fund, in an amount compliant with the Colorado Department of Labor and Employment. Adequate reserves shall be maintained in each Fund subject to available appropriations made by the City Council. The City Workers’ Compensation Claim Reserve Fund balance shall include sufficient monies to cover and discharge all known and potential workers' compensation liability and shall allow for administrative costs in discharging the City’s liability. The Utilities Workers’ Compensation Claim Reserve Fund balance shall include sufficient monies to cover and discharge all known and potential workers’ compensation liability and shall allow for administrative costs in discharging Utilities’ liability. C. Each Fund shall: 1. Pay workers' compensation claims and related expenses brought by its employees pursuant to the Colorado Workers’ Compensation Law, which it is legally obligated to pay. 2. Pay the costs of defense, investigation, outside counsel legal fees and other related costs in connection with claims brought pursuant to the requirements of this article. D. Each Fund shall not be used to pay any claim except those pursuant to subsection C of this section. Neither the City nor Utilities shall commingle the monies in each Fund. E. The Chief Financial Officer shall have exclusive control over, and shall be responsible for the management and investment of, the City Workers’ Compensation Claim Reserve Fund. The Utilities Chief Financial Officer shall have exclusive control over, and shall be responsible for the management and investment of, the Utilities Workers’ Compensation Claim Reserve Fund. All earnings collected from each Fund shall be credited to the Fund in accordance with subsection A of this section. F. Each Fund’s balance shall be an amount compliant with the Colorado Department of Labor and Employment Rules. G. The setting aside of reserves for self- insurance purposes in each Fund shall not be construed to create an insurance company, nor shall each Fund otherwise be subject to the provisions of the laws of the State of Colorado regarding insurance or insurance companies. H. In accord with sections 1.5.503 and 1.5.506 of this Code, the Chief Financial Officer shall approve payment requests for the City Claims Reserve Fund and the Utilities Chief Financial Officer shall approve payment requests for the Utilities Claims Reserve Fund, respectively. All requests for disbursements from each Fund shall be given the highest priority by the City and Utilities with respect to the processing and preparation of payments in connection with the compromise or settlement of claims or the payments of judgments. I. The City Auditor or any person authorized by the City Auditor shall conduct an examination as frequently as required in the judgment of the City Auditor, and in accordance with applicable laws and auditing standards, but not less frequently than once every four (4) years, to determine that proper underwriting techniques, sound funding procedures, loss reserves, claims procedures and accounting practices are being followed in the management and operation of the Funds. The City Auditor shall present a report of findings to the City Council. (Ord. 11-18; Ord. 14-29; Ord. 15-62; Ord. 26-47)

Colorado Springs City Code § 1.5.603 COMPROMISE OR SETTLEMENT OF CLAIMS

1.5.603: COMPROMISE OR SETTLEMENT OF CLAIMS: A. The City and Utilities shall investigate, admit, deny, compromise, or settle all claims filed against the city or Utilities by their respective employees pursuant to the requirements of the Colorado Workers’ Compensation Law, and the City’s and Utilities’ respective excess insurance policies. B. In investigating claims brought against the City and Utilities and their respective officials or employees, the City and Utilities shall have authority to seek the advice and cooperation of all applicable City and Utilities departments, offices, or agencies with respect to establishment of facts, determination of liability and utilization of the professional expertise of various employees within the City and Utilities in connection with those claims. The applicable City and Utilities department shall timely provide such advice and assistance. (Ord. 11-18; Ord. 26-47)

Colorado Springs City Code § 1.5.604 RULES AND REGULATIONS

1.5.604: RULES AND REGULATIONS: The City and Utilities may promulgate reasonable and necessary rules and regulations to administer the Funds in accordance with this Code, the City Charter, and the Colorado Workers’ Compensation Law. (Ord. 11-18; Ord. 26-47)

Colorado Springs City Code § 1.5.605 LITIGATION

1.5.605: LITIGATION: A. Pursuant to the requirements of the City Charter and this Code, the City Attorney represent the City and Utilities and their respective officers and employees in connection with all litigation arising under claims brought pursuant to this article. The City Attorney shall have the authority to contract for outside counsel in connection with litigation arising out of claims brought pursuant to this part. B. To cover litigation expenses which are necessary to properly and reasonably defend the City or Utilities and their respective officers in connection with litigation, the City Attorney may request that the City Risk Manager or the Utilities Risk Manager disburse monies from the City Workers’ Compensation Claim Reserve Fund, or the Utilities Workers’ Compensation Claim Reserve Fund, respectively, or from other appropriate accounts. Such expenses shall include, but are not limited to: outside counsel fees, defense costs, expert witness fees, and preparation of demonstrative evidence. (Ord. 11-18; Ord. 26-47)

Source: City of Colorado Springs, Colorado, City Code and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/coloradospringsco/latest/coloradosprings_co/0-0-0-1246Fetched: 11/1/2026