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<br />REPORT pa~;~ <br /> <br />t~tft~ Honorable UayQ;t,a,nd Oity CpUtittiil; <br />_.Froijjl tije City Ma~Age~ <br /> <br /> <br /> <br />May 22, 2006 <br /> <br />Subject <br /> <br />Renew agreement with the County Supervisors Association of California (CSAC) <br />Excess Insurance Authority (EIA) for the purchase of Workers' Compensation Excess <br />Insurance. <br /> <br />Recommendation <br /> <br />Approve, by resolution the Joint Powers Agreement creating the CSAC Excess <br />Insurance Authority and approve by motion, to renew the agreement with CSAC Excess <br />Insurance Authority (formerly California Public Entity Insurance Authority (CPEIA) for its <br />workers' compensation excess insurance coverage effective July 1, 2006 and ending <br />June 30,2007. <br /> <br />Background <br /> <br />The Council authorized the City to become a member of CPEIA in April 2005. The <br />CPEIA amended its joint powers authority agreement back in February 2006 and has <br />joined CSAC EIA. Beyond the new voting rights the new structure will have no impact <br />on other operational aspects of the programs offered to participating entities. <br /> <br />The City of Redwood City has been a self-insured employer for the Workers' <br />Compensation program since 1976. As a self-insured employer, whenever there is a <br />workers' compensation injury, the City covers the amount up to the designated self- <br />insurance retention cap. <br /> <br />When the costs of an injury exceed the self-insurance retention (SIR) cap, the City is <br />insured through its excess workers' compensation insurance policy for expenses up to a <br />maximum of $150,000,000. <br /> <br />Historically, the City has purchased excess insurance with a self-insurance retention <br />limit of $350,000 per injury. The City was provided a quote for excess insurance (see <br />Attachment A) of $.64 per $100 of payroll with a SIR of $350,000. We also received a <br />lower premium quote but the SIR limit was significantly higher at $1,000,000 per injury. <br />Based on the City's experience and a recommendation by the City's independent <br />workers' compensation actuarial, the $350,000 SIR is being pursued. <br /> <br />The City has been a member of CSAC Excess Insurance Authority for a 1 year period <br />and is satisfied with its services. The program provides two-layers of insurance; <br />$5,000,000 of coverage through the pooled program, and another insured level of <br />$145,000,000 for claims that exceed the $5,000,000 pool retention. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />",,,.,__,,,__,_",,",,___,,_,___'A~~""'____'"'''' <br />