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<br />6.1A <br />Pa e 1 <br /> <br />REPORT <br /> <br />June 21,2010 <br /> <br />To the Honorable Mayor and City Council <br />From the Ci Mana er <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 for $243,000 for fiscal year 2010/2011 <br />and $247,000 for fiscal year 2011/2012. <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 />,Historically, the City's excess insurance premium has been budgeted for $350,000. The <br />Council authorized the City to enter into an agreement with CSAC Excess Insurance <br />Authority in 2005 and subsequent premiums have not exceeded $250,000 annually. <br />This is due to a reduction in the City's workers' compensation loss rate and improved <br />claims management. Alliant Insurance Services is the City's insurance broker and they <br />have provided the City with an estimated premium for excess insurance at $243,000 for <br />fiscal year 2010/2011 and $247,000 for fiscal year 2011/2012. <br /> <br />The City has been a member of CSAC Excess Insurance Authority for the past five <br />years and is satisfied with its services. Staff is recommending renewing the agreement <br />with CSAC Excess Insurance Authority effective July 1, 2010 through June 30, 2011 for <br />$243,000 and effective July 1, 2011 through June 30, 2012 for $247,000, such that <br />there is no lapse in coverage and we maintain the current SIR of $350,000 for both <br />fiscal years. <br /> <br />AL TERNA TIVES <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 $250,000. <br />This amount has been budgeted in the FY 2010/2011 and 2011/2012 budgets. <br /> <br />VI ~ ?[ A:.)) ~ .It ~ <br />Robert Bell, Human Resources Brtector <br /> <br /> <br />Peter Ingram, City Manager \ <br />