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6.D. - Page 1 of 4 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: March 11, 2019 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Annual Self -Insured Assessment Fee for the City's Workers' Compensation Program <br />RECOMMENDATION <br />Adopt a Resolution authorizing the City Manager to pay to the State of California Department of Industrial <br />Relations the City's FY 2018-19 assessment for administering the State of California's Workers' <br />Compensation Program in an amount not to exceed $69,191. <br />STRATEGIC INITIATIVE <br />Government Operations <br />BACKGROUND <br />The State of California Department of Industrial Relations (DIR) regulates the workers' compensation <br />insurance industry. Under California Labor Code Sections 62.5 and 62.6, every year, each employer is <br />assessed a fee by the DIR to support the administration of the State's workers' compensation program. <br />Labor Code Sections 62.5 and 62.6 require allocation of the total assessment between insured and self- <br />insured employers. The Human Resources Division oversees the administration of the City's workers' <br />compensation program. The City is a self-insured employer for purposes of workers' compensation, and, <br />for the reasons discussed above, is required to pay an annual assessment fee to the DIR to maintain its <br />self-insured status. <br />ANALYSIS <br />Each fiscal year the City is responsible for paying an annual assessment to maintain its certificate of self- <br />insurance with the DIR. The assessment is calculated based upon an actuarially determined loss rate that <br />is applied to the City's projected payroll. The City's current loss rate is 1.0 percent according to the <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />147 <br />