HomeMy WebLinkAboutAGENDA REPORT 1991 0515 CC REG ITEM 08CITEM Be C
DORiARKr'Meefi OORPARK
City Co II Meetf
AclI oor)a_ rk Avenue Moorpark, California 93021 (805) 529-6864
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M E M O R A N D U M
TO: Honorable City Council
FROM: Richard Hare, Deputy City Mana J
DATE: May 9, 1991
SUBJECT: Insurance Services - Budget Amendment
Background
Due to the unanticipated retroactive deposit required to
maintain our self-insurance reserve at the Southern
California Joint Powers Insurance Authority, it is necessary
to amend the budget for insurance services in order to pay
the retroactive deposit prior to June 1st. The original
budget of $77,000 would need to be amended to $107,639.
Over the year, $3,805 has been expended for property
coverages, $2,519 for public official bonds, $5,706 for
legal services related to liability claims, and at the
beginning of the year the city paid $36, 208 to the Authority
for our self-insurance program. The total paid to the
Authority for this year including the retroactive deposit
would be $93,709, if this budget amendment is approved.
The deposits paid to the Authority are credited, minus the
shared operational and pooled loss costs, to the City's
self-insurance reserve for claims less than $20,000. Each
year the Authority calculates the needed amounts of reserves
to cover open claims.
In the event, the current reserve is not adequate a
retroactive deposit is required. Thirty-five percent of the
retroactive deposit is attributed to one claim. An accident
occurred outside of the city limits, however, the City was
named in the family's claim. The City's claims
administrator will attempt to tender the claim to another
party with jurisdiction but the City will be required to
maintain a reserve of $20,000 for the claim until the City
is released from it. This year's retroactive deposit which
is due June 1st is $57,501.
PAUL W. LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK
Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
Additional charges anticipated before the end of the year
include $1, 500 for legal services related to claims and $400
related to special event insurance. Therefore, the line
item would have to be increased $30,639.
Recommendation (Roll Call Vote Required)
Staff recommends appropriation of an additional $30,639 from
general fund reserve to the general fund administrative
services budget line item for insurance services. This
additional appropriation would make the revised approved
budget for this line item $107,639.