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6.1.H. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> June 25, 2012 <br /> SUBJECT <br /> Workers' Compensation Excess Insurance Coverage <br /> RECOMMENDATION <br /> By motion, authorize the renewal of agreement with County Supervisors Association of <br /> California (CSAC) Excess Insurance Authority for $260,000 for fiscal year 2012-2013. <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 <br /> insured through its excess workers' compensation insurance policy for expenses up to a <br /> maximum of $150,000,000. <br /> The City has been a member of CSAC Excess Insurance Authority for the past seven <br /> years and is satisfied with its services. Staff is recommending renewing the agreement <br /> with CSAC Excess Insurance Authority effective July 1, 2012 through June 30, 2013 for <br /> $260,000. Staff will initiate a request for proposal process on excess Workers' <br /> Compensation Insurance for FY 13/14. <br /> ANALYSIS <br /> N/A <br /> ALTERNATIVES <br /> Council could instruct staff to look at other alternatives for purchasing excess insurance <br /> coverage. <br /> FISCAL IMPACT <br /> The CSAC Excess Insurance Authority premium is estimated not to exceed $260,000. <br /> Funds are included in the recommended fiscal year 2012-2013 Workers' Compensation <br /> budget. <br /> ENVIRONMENTAL REVIEW <br /> N/A <br />