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<br />REPORT <br /> <br />6.10 <br />Pa e 1 of 5 <br /> <br />To the Honorable Mayor and City Council <br />From the Ci Mana er <br /> <br />June 23, 2008 <br /> <br />SUBJECT <br />Workers' Compensation excess insurance coverage. <br /> <br />RECOMMENDATION <br />Authorize by motion, renewal of agreement with County Supervisors Association of <br />California (CSAC) Excess Insurance Authority effective July 1, 2008 through June 30, <br />2009 (Fiscal year 2008/2009). <br /> <br />BACKGROUND <br />The City has been a self.insured employer for its Workers' Compensation program <br />since 1976. Whenever there is a workers' compensation injury, the City covers the <br />amount of claims cost up to the designated self-insurance retention (SIR) limit of <br />$350,000 per injury. When the costs of an injury exceed the SIR limit, the City is insured <br />through its excess workers' compensation insurance policy for expenses up to a <br />maximum of $150,000,000. <br /> <br />In previous years, the City's excess insurance premium has been budgeted for <br />$350,000. In the last fiscal year (2007/2008), the actual premium came in at $239,043. <br />This was dLie to a reduction in the City's workers compensation loss rate and improved <br />claims management. The City has been provided with an estimated premium for excess <br />insurance for $225,000 for fiscal year 2008/2009 (see attachment). This estimate came <br />in lower than the $300,000 budgeted for fiscal year 2008/2009. The remaining funds <br />should go back to the workers' compensation fund for the next fiscal year to improve <br />future unfunded liability. <br /> <br />The City has been a member of CSAC Excess Insurance Authority for the past three <br />years and is satisfied with its services. Staff is recommending renewing the agreement <br />with CSAC Excess Insurance Authority effective July 1, 2008, such that there is no <br />lapse in coverage and we maintain the current SIR of $350,000. <br /> <br />AL TERNA TlVES <br />Council could instruct staff to look at other alternatives for purchasing excess insurance <br />coverage. <br /> <br />FISCAL IMPACT <br />The CSAC Excess Insurance Authority premium is estimated not to exceed $230,000. <br />This amount has been budgeted in the FY 2008-2009 budget. <br />10 '/r ('! . . <br />L' CULoJ, . ... Cc~Uu...t- <br />Carolyn McLau In, Ma a ent :Analyst II <br /> <br /> <br /> <br />A TT ACHMENTS <br />1. 2008-2009 CSAC EIA Excess Workers' Compensation Premium Estimate <br />