HomeMy WebLinkAboutAGENDA REPORT 2014 0507 CCSA REG ITEM 10CIm
DATE:
ITEM 10.C.
CITY OF MOORPARK, CALIFORNIA
City Council j A4
MOORPARK CITY COUNCIL of
AGENDA REPORT
Honorable City Council
Ron Ahlers, Finance Director6?�, ----
April 22, 2014 (City Council Meeting of May 7, 2014)
SUBJECT: Consider Resolution Authorizing the Payment to California Joint
Powers Insurance Authority (CJPIA) for the Liability Insurance Pool
and Workers Compensation Pool and Amending Fiscal Year
2013/2014 Budget
The City of Moorpark is a member of the California Joint Powers Insurance Authority
(CJPIA). CJPIA's membership is comprised of cities and special districts within the
State of California. CJPIA provides general liability insurance and workers
compensation insurance to the City of Moorpark. These two insurance plans use a
pooling concept whereby each member's annual premium is calculated based on their
individual experience claims affecting the insurance pool. If a member utilizes the
pool's money excessively they could "owe" an additional premium to CJPIA.
Conversely, if a member does not have many claims then CJPIA "owes" the member
(i.e. refund). The calculation of the amount of money owed is termed "aggregate
retrospective balance". Currently, all the members owe CJPIA $47.7 million: $11.5
million for the workers compensation pool and $36.2 million for the general liability pool.
Based upon the current calculations for the retrospective adjustment, the City of
Moorpark owes CJPIA $133,272 for general liability and $102,143 for workers
compensation.
DISCUSSION
The City of Moorpark owes CJPIA a retrospective deposit of $235,415 ($133,272
general liability and $102,143 workers compensation). This is above and beyond the
annual premium for these two insurance pools. Retrospective deposits are cost
allocation adjustments to prior coverage periods. Some claims take many years to
resolve and over time their estimated values change based on new information as it
Honorable City Council
May 7, 2014
Page 2
develops. Retrospective adjustments are calculated annually, and take into
consideration all the changes in claim values that occurred during the most recent fiscal
year, 2012-13.
The annual premium for next fiscal year, 2014-15, is $322,806 for general liability and
$143,067 for workers compensation.
FISCAL IMPACT
Staff recommends that the City Council appropriate $235,415 from the General Fund
Reserves for the payment to CJPIA.
STAFF RECOMMENDATION (Roll Call Vote)
Adopt Resolution No. 2014 -
ATTACHMENT
Attachment: Resolution No. 2014-
153
RESOLUTION NO. 2014 -
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MOORPARK, CALIFORNIA AUTHORIZING
USE OF THE GENERAL FUND (1000) TO PAY THE
CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (CJPIA) GENERAL LIABILITY AND
WORKERS COMPENSATION AGGREGATE
RETROSPECTIVE BALANCE
WHEREAS, on June 19, 2013 the City Council adopted the Operating and
Capital Improvement Budget for Fiscal Year 2013/14; and
WHEREAS, a staff report has been presented to the City Council summarizing
CJPIA's retrospective deposit adjustment of $133,272 for general liability and $102,143
for workers compensation insurance; and
WHEREAS, a budget appropriation increase of $235,415 in the General Fund
(1000) is requested for the payment of the aggregate retrospective deposit balance; and
WHEREAS, Exhibit "A" hereof describes said budget amendment and its
resultant impact to the budget line items.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That a Budget Amendment in the aggregate increase of $235,415, as
more particularly described in Exhibit "A", is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 7th day of May, 2014.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Attachment: Exhibit'A': Budget Appropriation
154
Resolution No. 2014 -
Page 2
Budget Amendment for
General Fund
For CJPIA for Liability Insurance
FY 2013/14
A. Fund Allocation
Exhibit A
Fund Description Account
Amount
General Fund 1000-5500
$ 235,415
$ 102,143
$ 115,492
Total
$ 235,415
B. Appropriation Allocation
Adopted
Budget Number Budget
Budget
Change
Revised
Budget
1000-5110-0000-9011 $ 13,349
$ 102,143
$ 115,492
1000-5110-0000-9233 $ 0
$ 133,272
$ 133,272
Total $ 13,349
$ 235,415
$ 248,764
Finance Approval:
155