|
NOTE 13—RISK MANAGEMENT AND SELF-INSURANCE FUND
<br /> A. Workers'Compensatlon arld Property Insura�nce
<br /> The City is self-insured for workers' compensation for the first $3 50,000 per occurrence and has a
<br /> commercial insurance policy that covers the City's exposure above the retained limits up to $100,000,000
<br /> per incident. The City paid $293,806 during FY 2006/07 for the coverage.
<br /> The City's workers' compensation policy includes coverage for the Port of Redwood City. The Port
<br /> carries property and liability insurance policies with limits of $10,000,000 and $150,000,000,
<br /> respectively.
<br /> B. General Liablllty and Automoblle
<br /> The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is a liability
<br /> pool consisting of 17 San Francisco Bay Area government agencies, for general liability and auto liability
<br /> coverage. In FY 2006/07 the City maintained a $350,000 self-insured retention with coverage from
<br /> $350,000 to $1,000,000 through the BCJPIA. The purpose of the pool is to provide certain levels of
<br /> liability coverage, claims administration, and loss control support to member agencies. Annually, each
<br /> agency pays an actuarially-determined premium based upon a formula which takes into account the
<br /> prior three years' loss experience, annual payroll, and population. This premium pays for administrative
<br /> costs and funds liability reserves. The premium paid in FY 2006/07 was $3 83,3 62.
<br /> The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an
<br /> excess liability pool comprised of the BCJPIA and five other local government insurance pools.
<br /> CARMA provides coverage from $1,000,001 to $20,000,000. A layer from $1,000,001 to $5,000,000 is
<br /> self-insured by CARMA, the layer from $5,000,001 to $20,000,000 is reinsured through agreements with
<br /> commercial insurers.
<br /> The City also carries all risk coverage on buildings and their contents at current appraised value.
<br /> Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1020
<br /> 19th Street, Sacramento, California 95 814. The following is the BCJPIA condensed audited financial
<br /> results for the year ended June 3 0, 2007:
<br /> Assets $18,493,395
<br /> Reserves for Claims 9,128,456
<br /> Liabilities 1 4,215,069
<br /> Net Assets Unrestricted 5,149,870
<br /> Member Contributions 8,759,937
<br /> Other Income 785,241
<br /> Provisions for Claims and Claim Adjustment Expenses 3,467,589
<br /> Operating Expenses 2 4,641,989
<br /> Change in Net Assets 1,43 5,600
<br /> 1 Excluding claims liabilities
<br /> 2 Excluding provisions for claims
<br /> 57
<br />
|