AgdaPkt 2017-12-18 Special Joint SA PFA

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City of Redwood City Notes to the Basic Financial Statements For the fiscal year ended June 30, 2017 NOTE 12 – INTERFUND TRANSFERS AND TRANSACTIONS (CONTINUED) C. Long‐Term Interfund Loans Fund Receiving Advance Fund Making Advance Amount of Advance $ Water Utility Fund Internal Service Funds 1,500,000 Total Long‐term Interfund Loans 1,500,000 During FY 2012‐13, the equipment services internal service fund advanced $3,000,000 to the water utility enterprise fund for the implementation of the Automated Meter Infrastructure Project to replace water meters. During FY 2013‐14 the water utility enterprise fund repaid $300,000 to the equipment services internal service fund. During FY 2016‐17 the water utility enterprise fund repaid $300,000 to the equipment services internal service Fund. As of June 30, 2017, $300,000 of this advance is considered current. NOTE 13 – RISK MANAGEMENT AND SELF‐INSURANCE FUND A. Workers’ Compensation and Property Insurance The City is self‐insured for workers’ compensation for the first $350,000 per occurrence and has a commercial insurance policy that covers the City’s exposure above the retained limits up to the statutory limits required by the State of California. The City paid $606,926 during FY 2016‐17 for the coverage. The City’s workers’ compensation policy includes coverage for the Port of Redwood City. The Port carries property and liability insurance policies with limits of $15,000,000 and $150,000,000, respectively. B. General Liability and Automobile The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is an insurance pool consisting of 19 San Francisco Bay Area government agencies, which the City uses for general liability and auto liability coverage. In FY 2016‐17 the City maintained a $350,000 self‐insured retention with coverage from $350,000 to $1,000,000 through the BCJPIA. The purpose of the pool is to provide certain levels of liability coverage, claims administration, and loss control support to member agencies. Annually, each agency pays an actuarially‐determined premium based upon a formula which takes into account loss experience, annual payroll, and population. This premium pays for administrative costs and funds liability reserves. The premium paid in FY 2016‐17 was $852,412. The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess liability pool comprised of the BCJPIA and four other local government insurance pools. CARMA provides coverage from $1,000,001 to $28,000,000. A layer from $1,000,001 to $4,000,000 is self‐ insured by CARMA, the layer from $4,000,001 to $28,000,000 is reinsured through agreements with commercial insurers. 79 6.1.E. - Page 102