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6.1.D. - Page 104
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<br />NOTE 13 — RISK MANAGEMENT AND SELF-INSURANCE FUND
<br />A. Workers' Compensation and Property Insurance
<br />The City is self-insured for workers' compensation for the first $350,000 per occurrence and has a
<br />commercial insurance policy that covers the City's exposure above the retained limits up to the statutory
<br />limits required by the State of California. The City paid $527,346 during FY 2015-16 for the coverage.
<br />The City's workers' compensation policy includes coverage for the Port of Redwood City. The Port carries
<br />property and liability insurance policies with limits of $15,000,000 and $150,000,000, respectively.
<br />B. General Liability and Automobile
<br />The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is an insurance
<br />pool consisting of 19 San Francisco Bay Area government agencies, which the City uses for general liability
<br />and auto liability coverage. In FY 2015-16 the City maintained a $350,000 self-insured retention with
<br />coverage from $350,000 to $1,000,000 through the BCJPIA. The purpose of the pool is to provide certain
<br />levels of liability coverage, claims administration, and loss control support to member agencies. Annually,
<br />each agency pays an actuarially -determined premium based upon a formula which takes into account loss
<br />experience, annual payroll, and population. This premium pays for administrative costs and funds liability
<br />reserves. The premium paid in FY 2015-16 was $758,962.
<br />The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br />liability pool comprised of the BCJPIA and four other local government insurance pools. CARMA provides
<br />coverage from $1,000,001 to $28,000,000. A layer from $1,000,001 to $4,000,000 is self- insured by
<br />CARMA, the layer from $4,000,001 to $28,000,000 is reinsured through agreements with commercial
<br />insurers.
<br />The City also carries all risk coverage on buildings and their contents at replacement cost value.
<br />Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1750
<br />Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. The following is the BCJPIA condensed audited
<br />financial results for the year ended June 30, 2016:
<br />Assets
<br />$ 33,545,914
<br />Reserves for Claims
<br />19,224,927
<br />Liabilities(1)
<br />3,553,419
<br />Net Position Unrestricted
<br />10,767,568
<br />Member Contributions
<br />12,334,380
<br />Other Income
<br />556,289
<br />Claims and Claim Adjustment Expenses (2)
<br />3,806,788
<br />Operating Expenses(3)
<br />6,224,159
<br />Change in Net Position
<br />2,859,722
<br />(1)Excluding claims liabilities
<br />(2)lncluding change in unpaid claims
<br />(3)Excluding claims and claim adjustment expenses
<br />77
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