Staff requests Council approve Budget Modification No. 47 to appropriate $198,000 to the Workers’ Compensation, Occupational Safety and Employee Wellness Program to account for the light duty/return to work program.

Beginning in FY 2000/01, the City began a light duty program as an attempt to control workers’ compensation lost time cases. This program was designed to meet the needs of the Department of Public Safety. When a Public Safety Officer is not able to work full duty, an officer must be called in on overtime to fill the position. To enhance the return to work program, Human Resources, through the Workers’ Compensation, Occupational Safety and Employee Wellness Program (785) agreed to pay for the hours that officers worked on light duty.

Candidates for light duty are identified through careful case management and communication between Risk and Insurance, Third Party Administrators, Medical Providers, and Public Safety. Officers on light duty provide professional-level services to the Department of Public Safety in the form of background investigations, evidence inventory, and other specialty assignments that do not require a full-duty officer. This program has returned over 12,000 hours of productivity to the Department of Public Safety in the last three fiscal years.

Below is a summary of the light duty hours usage since FY 1999/2000:

As of Period 11

Return to limited duty and light duty assignments appear in Administrative Policy, Chapter III, Article IV, Section 16, Subdivision 4 (Workers’ Compensation Leave), Sections E and F.

The Workers’ Compensation Program is in the Employee Benefits Fund, which operates on a cost reimbursement basis. All of the costs of the Fund are charged back to user activities on an additive rate basis. The current workers’ compensation additive rate was calculated to cover the cost of the light duty program, but was not included in the final budget. Although an appropriation is not necessary since the fund is controlled by available revenue, to provide proper accounting for management of the Workers’ Compensation Program, staff recommends appropriating a budget for light duty costs. Based on prior year history and current year usage, an appropriation of $198,000 in FY 2002/2003 would be necessary. The recommended budget for FY 2003/2004 includes an appropriation for light duty.

Through Period 11, year-to-date program expenditures of $3,359,154 are 72% of the $4,687,748 in total revenues collected, which include additive rates, recoveries and interest on investments. Therefore, the current revenue vs. expenditure levels of the Employee Benefits Fund – Workers’ Compensation Sub-Fund provides sufficient monies to support this budget modification request.

Program 785 Worker’s Compensation

Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.

1. Approve Budget Modification No. 47.
2. Do not approve this budget modification request.

It is recommended that the Council approve alternative 1.