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6.J. - Page 1 of 3 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: May 6, 2019 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Excess Insurance Policy Renewal and Annual Premium Payment to the California State Association of <br />Counties for the City's Workers' Compensation Program <br />RECOMMENDATION <br />Adopt a Resolution authorizing the City Manager to renew an excess insurance agreement with the <br />California State Association of Counties (CSAC) Excess Insurance Authority, effective July 1, 2019 through <br />June 30, 2020, to cover losses that exceed $350,000, and approving the excess insurance premium <br />payment in an amount not to exceed $564,000. <br />STRATEGIC INITIATIVE <br />Government Operations <br />BACKGROUND <br />The City has been a self-insured employer for purposes of workers' compensation since 1976 and is <br />responsible for paying workers' compensation claim costs up to the designated self-insurance retention <br />(SIR) level of $350,000 per injury. The City has excess insurance coverage through CSAC in the event that <br />a workers' compensation claim exceeds the City's self-insured retention threshold of $350,000. <br />Additionally, the City pays an annual insurance policy premium to CSAC. Annually in March, CSAC provides <br />the City with an insurance renewal premium estimate. CSAC estimates the City's policy premium for FY <br />2019-20 to be $564,000. <br />ANALYSIS <br />The City is required to renew the excess insurance policy agreement on an annual basis. The City is insured <br />through CSAC and the current agreement will expire on June 30, 2019. Staff recommends renewal of the <br />annual agreement with CSAC effective July 1, 2019 through June 30, 2020, to avoid a lapse in coverage <br />and to ensure that the City maintains its current SIR level of $350,000 for FY 2019-20. <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />239 <br />