Chapter 4.144
RISK MANAGEMENT

Sections:

4.144.010    Title.

4.144.020    Purposes.

4.144.030    Definitions.

4.144.040    Office of risk management.

4.144.050    Risk management committee.

4.144.060    Claims procedure.

4.144.070    Claims lawsuits.

4.144.080    Defense of county officers and employees.

4.144.090    Self-insurance funds.

4.144.100    Duties of county officers and employees.

4.144.010 Title.

This chapter shall be known as the “Kitsap County Risk Management Code.”

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 1, 1991)

4.144.020 Purposes.

(a)    Claims, Claims Lawsuits and Complaints to or Investigations by Professional Oversight Entities. This chapter is intended to establish a coordinated program for the processing, handling, and disposition of claims and claims lawsuits filed or brought against the county and/or its past and present officers and employees. This chapter is also intended to establish a procedure for the county to defend and indemnify its past and present professional employees who, as the result of their good faith performance of county business or activities, are the subject of complaints to or investigations by entities that oversee their regulated professions.

(b)    Risk Management Program. This chapter is intended to provide a coordinated means for dealing with the risks that face the county in the most economical manner.

(c)    Bases of Liability. This chapter shall not be construed to expand the bases of county liability for claims or claims lawsuits.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 2, 1991)

4.144.030 Definitions.

These terms mean the following:

(a)    “Claim” means a formal demand for monetary compensation as a result of injury or damages allegedly caused by the county, its officers or employees;

(b)    “Claims lawsuit” means a lawsuit alleging that the county and/or its officers or employees, while acting within the scope of their official duties, have caused injury or damages to the plaintiff; and seeking redress;

(c)    “County” means Kitsap County;

(d)    “Professional oversight entities” means bodies, including but not limited to the Washington State Bar Association, the Washington State Commission on Judicial Conduct and the Washington State Board of Registration for Professional Engineers and Land Surveyors, that have the power to investigate, discipline, or sanction, or make recommendations as to discipline or sanctions regarding the members of a profession.

(e)    “Regulatory agencies” means bodies, including but not limited to, Washington Department of Ecology, Environmental Protection Agency, OSHA, and Labor and Industries, that regulate safety and health.

(f)    “Risk management” means a county division that is part of the administrative services department. This division manages a continuous program for the identification, control, and financing of risk and exposure to loss.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 3, 1991)

4.144.040 Risk management division.

(a)    Existence. The risk management division shall be headed by an individual to be known as the risk manager.

(b)    General Duties. The risk management division shall minimize the county’ s financial loss through the identification, mitigation and/or transfer of risks.

(c)    Identification, Mitigation and Transfer of Risks. The risk management division shall identify, mitigate and transfer risks that face the county and shall make periodic recommendations to the committee established by Section 4.144.050 concerning insurance coverage, self-insurance, deductibles, loss prevention, and other techniques for the sound management of risk.

(d)    Loss Prevention Program. The risk management division shall develop and implement programs for the reduction of risk and exposure to loss.

(e)    Insurance Information. The risk management division shall be the repository of all insurance policies in which the county is a named insured. Such policies shall be maintained in a current fashion including all riders and endorsements. The risk manager shall prepare and maintain a synopsis of all insurance policies, that shall include: the type of insurance, the name of the insuring company, policy term, coverage limit, deductible, premium, and the carrier’s agent.

(f)    Records. The risk manager shall maintain complete and accurate records regarding insurance, claims and claims lawsuits filed against the county, including their disposition, complaints to or investigations of county employees by professional oversight entities and regulatory agencies, financial losses, all accidents or incidents that may result in possible county liability, and an inventory of all property in which the county has an insurable interest. Such records shall be maintained in a manner that allows statistical analysis of losses. The risk manager shall reconstruct the county’s loss history for as many years as possible.

(g)    Claims, Claims Lawsuits and Complaints or Investigations. The risk manager shall have those duties and responsibilities with respect to claims, claims lawsuits and complaints to or investigations by professional oversight entities or regulatory agencies as are specified in Sections 4.144.060, 4.144.070 and 4.144.080.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 4, 1991)

4.144.050 Risk management committee

(a)    Membership. A risk management committee shall be composed of three members as follows:

(1)    The director of administrative services, who shall chair the committee;

(2)    The risk manager, who shall be the ex officio secretary of the committee; and

(3)    The chief civil deputy prosecuting attorney.

(b)    Meetings. The committee shall meet at a regularly scheduled monthly meeting. The secretary will establish the meeting time. In the event that there is no business to transact, a meeting may be canceled by the secretary by giving notice to the remaining members. Any member of the committee may call a special meeting by giving twenty-four hours advance written notice to the remaining members. Such notice shall specify the time, place, and purpose of the special meeting. The business of the committee shall be transacted by majority vote.

(c)    Duties. The committee shall be the primary mechanism by which the county’s financial and legal managers coordinate the county’s handling and disposition of claims and claims lawsuits and the defense of complaints to or investigations by professional oversight entities and regulatory agencies as specified in Sections 4.144.060, 4.144.070 and 4.144.080. The committee shall decide whether a specific claim, claims lawsuit or complaint to or investigation by a professional oversight entity or regulatory agency is to be defended by a deputy prosecuting attorney or outside counsel.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 5, 1991)

4.144.060 Claims procedure.

(a)    Filing Claims. Claims must be filed with the clerk of the board of county commissioners.

(b)    Transmittal of Claim. Immediately upon receipt of a claim the clerk shall transmit it to the risk manager.

(c)    Duties of Risk Manager.

(1)    Upon receipt of a claim, the risk manager shall create a file and forward a copy to the chief civil deputy prosecuting attorney. Under the direction of the chief civil deputy prosecuting attorney or his designee, and in anticipation of litigation, the risk manager shall conduct an investigation into the merits of the claim or assign the investigation to an outside person or entity. All investigations, whether internal or by an outside person or entity, shall be conducted in anticipation of litigation and treated as attorney work product and a privileged attorney-client communication.

(2)    Upon receipt of a claim, the risk manager shall immediately notify any insurance carrier whose policy may provide coverage.

(d)    Settlement Authority and Disposition of Claims.

(1)    The risk manager may settle claims of less than twenty-five thousand dollars.

(2)    The risk management committee may settle any claim of less than fifty thousand dollars.

(3)    The risk management committee shall refer all claims the committee wishes to settle in excess of fifty thousand dollars to the county commissioners and will also recommend the appropriate disposition of the claim.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 6, 1991)

4.144.070 Claims lawsuits.

(a)    Service of Process. Service of process for claims lawsuits shall be upon the county auditor pursuant to RCW 4.28.080.

(b)    Transmittal by Auditor. Immediately upon receipt of a claims lawsuit the auditor shall transmit a copy to clerk of the board of county commissioners.

(c)    Distribution by Clerk of the Board of County Commissioners. Immediately upon receipt of a claims lawsuit from the auditor, the clerk shall distribute copies of all papers involving the claims lawsuit to the risk manager and prosecuting attorney. Along with the copies distributed, the clerk shall attach a transmittal note indicating who was originally served with the claims lawsuit, and the date and time of such service.

(d)    Duties of Risk Manager.

(1)    Upon receipt of a claims lawsuit the risk manager shall create a file. In anticipation of trial, the risk manager shall assist the assigned deputy prosecuting attorney or outside counsel to investigate and prepare for trial.

(2)    Upon receipt of a claims lawsuit, the risk manager shall tender defense of the suit to any insurance carrier whose insurance policy may provide coverage.

(e)    Duties of Prosecuting Attorney.

(1)    Upon receipt of a claims lawsuit, the prosecuting attorney shall create a file and shall file a notice of appearance.

(2)    The prosecuting attorney shall have primary responsibility for the claims lawsuits assigned by the risk management committee.

(3)    The prosecuting attorney, or outside counsel if assigned, shall produce an initial written claims analysis and status reports at least quarterly thereafter or as requested.

(4)    If the county has insurance coverage for this potential loss, the prosecuting attorney shall work cooperatively with the insurance carrier’s agent or attorney during trial preparation and at the trial.

(f)    Duties of Risk Management Committee. At its next meeting following receipt of a claims lawsuit, the risk management committee shall review the lawsuit. The committee may establish initial reserves for each suit and take whatever other action it deems proper. The committee shall assign the defense of claims lawsuits to the prosecuting attorney or outside counsel and may transfer the defense at any time thereafter.

(g)    Reporting Responsibilities on Pending Cases. The attorneys defending a claims lawsuit shall report the progress and significant developments to the risk management committee as the committee may from time to time require.

(h)    Settlement Authority and Disposition of Claims Lawsuits.

(1)    Claims lawsuits for which the county has insurance coverage shall be disposed of pursuant to the terms of the contract of insurance.

(2)    The risk management committee may settle a claims lawsuit if settlement can he achieved for less than fifty thousand dollars.

(3)    If the risk management committee cannot settle a claims lawsuit for less than fifty thousand dollars, they may at their discretion refer the lawsuit to the county commissioners. When the committee makes such a referral, it shall provide its recommendations.

(4)    If exigent circumstances prevent consideration of a settlement proposal as is contemplated by the foregoing subsections of this section, the attorneys responsible for the defense of the case may settle it but shall first seek the advice and/or authorization of the risk management committee and/or county commissioners as the circumstances will reasonably permit.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 7, 1991)

4.144.080 Defense of county officers and employees.

(a)    Purpose. It is the purpose of this section to provide protection to past and present county officers and employees in order that they may act in good faith within the course of employment on the county’s behalf without fear of personal liability.

(b)    Alternative Protection. Portions of this section provide a means of protection for county officers and employees alternative to that contained in RCW 36.16.138.

(c)    Policy. The county will defend and pay all settlements, judgments, and associated costs for its past and present officers and employees, and their marital communities, who are named as defendants in lawsuits as a result of acts or omissions made in the good-faith performance of the county’s lawful business while in the county’s employ. The county will also provide defense for its past and present professional employees who, as a result of their good faith performance of county business or activities, are made the subjects of complaints to or investigations by professional oversight entities and will pay any resulting monetary sanctions imposed. Provision of defense by the county is also contingent upon full cooperation of the employee or officer in his defense.

(d)    Application for Defense. After receipt of summons and complaint or notice of a complaint or investigation by an entity overseeing regulated professions, a past or present county officer or employee who desires that the county provide defense, shall immediately make an application for defense to the risk management committee.

(e)    Duties of Risk Management Committee. Upon receipt of an application for defense, the committee shall review the application at its earliest meeting. The committee shall establish initial reserves for each defense, investigate and take whatever other action it deems proper. If the committee determines that a lawsuit, complaint, or regulatory investigation was the result of the employee’ s good faith performance of the county’s lawful business, then the county shall provide a defense. If the committee approves a defense, the committee will assign a deputy prosecuting attorney or outside counsel in accordance with applicable laws. The committee may transfer the defense at any time based on the best interests of the county.

(f)    Duties of Risk Manager. Upon the risk management committee’s receipt of an application for defense from a past or present county employee, the risk manager shall immediately notify any insurance carrier or pool whose insurance policy may provide coverage.

(g)    Duties of Prosecuting Attorney.

(1)    The prosecuting attorney shall have primary responsibility for the defense of county employees for whom the county has accepted defense.

(2)    If there is insurance coverage for the potential loss, the prosecuting attorney shall work with the insurance carrier’s agent and counsel retained by the insurance carrier, if any.

(h)    Establishment of Good Faith. If the risk management committee cannot determine if the suit, complaint or investigation relates to the employee’s good faith performance of the county’s lawful business, the county may provide a defense and/or pay a judgment, sanction or settlement provisionally. A determination by a court that the employee was not acting in good faith within the scope of the county’s lawful business will result in withdrawal of any defense and indemnification that was provided to the employee by the county.

(i)    Reporting Responsibilities on Pending Cases. The attorneys defending a county employee under this section shall report the progress and significant developments in such defense to the risk management committee as the committee may from time to time require.

(j)    Disposition of Claims Lawsuits, Complaints and Investigations.

(1)    Claims lawsuits, complaints and investigations for which the county has insurance coverage and is providing defense shall be disposed of pursuant to the terms of the contract of insurance.

(2)    The risk management committee may settle a claims lawsuit against a county employee if settlement can be achieved for less than fifty thousand dollars.

(3)    If the risk management committee cannot settle a claims lawsuit against a county employee for less than fifty thousand dollars, they may at their discretion refer the lawsuit to the county commissioners. When the committee makes such a referral, it shall provide its recommendations.

(4)    Complaints against and investigations by professional oversight entities of employees defended by the county shall be referred to the county commissioners. The risk management committee shall make a recommendation based on its findings. The employee being defended by county and his counsel may also provide a recommendation to the county commissioners. The county commissioners shall have sole authority to dispose of and/or settle a complaint against or investigation of a county employee being defended under this section.

(5)    If exigent circumstances prevent consideration of a settlement proposal as is contemplated by the foregoing subsections, the attorneys responsible for the defense of the case may settle it but shall first seek the advice and/or authorization of the risk management committee and/or county commissioners, as the circumstances will reasonably permit.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 8, 1991)

4.144.090 Self-insurance funds.

The county shall from time to time establish various funds to implement this chapter. Such funds may be dedicated to and used for only those purposes set forth in the resolutions establishing them and in this ordinance.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 9, 1991)

4.144.100 Duties of county officers and employees.

(a)    Cooperation. All county officers and employees shall cooperate with the risk manager, risk management committee, prosecuting attorney, and assigned outside counsel in defending claims lawsuits against the county and investigations by professional oversight entities or regulatory agencies by:

(1)    Providing information, testimony, exhibits, and documents in a timely manner in preparation for the county’s defense in litigation or investigations by outside agencies;

(2)    Providing information that will assist in the implementation and/or operation of risk management programs;

(3)    Issuing directives to subordinate officers or employees necessary to implement risk management programs; and

(4)    In response to notification by the prosecuting attorney, designating a department representative to assist the prosecuting attorney during discovery and, preparations for trial in claims lawsuits.

(b)    Reporting Accidents and Incidents. County officers and employees shall immediately report to risk management any accident or incident which may result in the filing of a claim or claims lawsuit, or the initiation of an inquiry or investigation by a professional oversight entity or regulatory agency.

(c)    Prohibited acts. No officer or employee shall do any of the following without the prior authorization of the risk manager, prosecuting attorney or assigned outside legal counsel:

(1)    Encourage the filing of a claim or claims lawsuit against the county;

(2)    Attempt to settle a claim, claims lawsuit or an investigation by a professional oversight or regulatory entity of an employee who is being defended by the county;

(3)    Make an admission of liability involving a claim, a claims lawsuit or a complaint to or investigation by a professional oversight entity or a regulatory agency; or

(4)    Discuss with persons who are not employed by the county incidents that have led to or could lead to claims, lawsuits or complaints to or investigations by a professional oversight entity or regulatory agency.

(Ord. 116-B (2000) § 1 (part), 2000: Ord. 116-A (1991) § 10, 1991)