Consideration and Adoption of Resolution No. 2013-16: A Resolution to Cover Volunteers of the City of Flagstaff under the City’s Workers’ Compensation Insurance.

The City of Flagstaff enjoys the services of many citizen volunteers who help with City programs, activities and events and who help lower overall costs of governmental operations.  For many years now, the City has reported volunteers to its workers’ compensation insurer and paid premium for their coverage. This resolution formalizes the intent to cover all City volunteers with workers’ compensation insurance and sets the payroll basis for computing compensation benefits and premium payments in compliance with the current requirements of the Arizona Revised Statutes.

Using a Fiscal Year 2014 projected net rate of 1.175 per $100 of payroll, this resolution will result in premium charges of approximately $5 per month per volunteer including Citizens Police, with a higher charge of approximately $39 per month per volunteer for Reserve Police Officers in Fiscal Year 2014.  Note that workers’ compensation rates and the City of Flagstaff Experience Modifier  change  from year to year. In Fiscal Year 2013 a total of $12,665 was projected as insurance premium for coverage of all volunteer workers.Insurance amounts are paid from the Self Insurance Trust Fund under account 600-8901-590-2304

2. Fund existing and consider expanded recreational services
11. Effective governance

No.

1) Adopt Resolution No. 2013-16; 2) Do not adopt Resolution No. 2013-16.

Only counties, towns, municipalities, political subdivisions of the State, fire and police departments, and hospitals may elect to cover their volunteers for workers’ compensation insurance. 
 
 
Workers’ compensation is a no fault insurance that covers medical expenses for workers’ injured on the job as well as associated lost time and wages.  See A.R.S. § 23-901.06. Workers’ injured on the job who receive workers’ compensation coverage are barred from suing their employer for this cause. See A.R.S. § 23-906A.
 
To exercise this option, a resolution  or ordinance must be passed by the governing body to define the nature and type of volunteer work and workers to be covered by workers’ compensation and accept the basis set by this statute.  Rather than identifying each individual volunteer by name, the resolution identifies broad categories of volunteers who will be covered by workers’ compensation insurance. This is standard practice.
 
Arizona law provides that “the basis for computing compensation benefits and premium payments shall be four hundred dollars per month per volunteer.”    
 
However, A.R.S. § 23-901  (6)(d) provides that the monetary basis for computing compensation benefits and premium payments for volunteer police officers be set at the salary equal to the beginning salary of the same rank or grade in the full time service of the City.  The proposed resolution stipulates that this definition shall apply only to volunteer City of Flagstaff Reserve Police Officers who are armed and have arrest authority.  The resolution sets $3,298 per month as the basis for computing compensation benefits and premium payments in this specific subcategory of volunteers.
 
A.R.S. § 23-901 (6)(d) further provides that if there is no full time equivalent to a volunteer policemen’s work, then the salary equivalent shall be set by resolution of the governing body of the City of Flagstaff.  Therefore, this resolution provides that the volunteers of the Citizens Police Force and other police volunteers who are unarmed and who have no arrest authority will have the same assigned basis as our regular volunteers of $400 per month for computing compensation benefits and premium payments. 
 

Fiscal year 2012 projected figures for volunteers used the above described assigned basis which equate to approximately 6 reserve police officers and about 102 volunteers per month.  These figures may be for non reserve police volunteers.  New volunteer tracking procedures will improve accuracy.

This resolution formalizes the City practice which is to cover all volunteers for workers’ compensation insurance.  This practice helps protect the City from liability from the injury or death of a volunteer engaged in volunteer work for the City .  It also affords volunteers immediate medical coverage and statutory benefits for bodily injury or disease.

Involve
Collaborate
Passage of this resolution allows for the continued growth of volunteer programs in the City of Flagstaff that engage citizens, build a stronger community, and foster a greater understanding  among volunteer citizens of the work and dedication of our may departments. 

1) Approve this resolution and continue to pay for and provide workers compensation benefits to volunteers. Volunteers who do not reject this coverage in writing are not able to pursue liability recovery against the City for death or injury in the scope of their volunteer duties at the City.

2) Do not approve this resolution. Non-approval will have the effect of eliminating workers’ compensation insurance coverage for City volunteers. In this case the City will no longer pay insurance premium charges for volunteers. As a result, the City will be exposed to liability for medical expenses and other damages in the event that a volunteer is injured or harmed while performing volunteer duties for the City.

06/18/2013 - EAB - Adopted resolution