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Home My WebLink AboutAGENDA REPORT 1990 0606 CC REG ITEM 11UBERNARDO M. PER Mayor SCOTT MONTGOME Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph Councilmember PAUL W. LAWRASOI Councilmember LILLIAN KELLERM City Clerk TO: FROM: MOORPARK HONORABLE CITY COUNCIL' Xi RICHARD HAREp DEPUTY CITY 1140(40 STEVEN KUENY City Manager CHERYL J.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer REGARDING: WORKERS COMPENSATION PROGRAM DATE: JUNE 5, 1990 BACKGROUND: Since incorporation the City of Moorpark has used the State Compensation Insurance Fund (SCIF) is for employee worker's compensation coverage. This program is a premium based program which limits the City's costs to the premium paid for the year. The premium is calculated based upon a risk factor for each position which is multiplied by payroll expenditures. If our loss history exceeds what is considered normal by SCIF standards a modifier is also factored in which raises the premium. Last year the City received a rate impacted by a 186 % modifier. This year SCIF has applied to our normal premium a 250 % modifier. This will result in a premium in excess of $120,000. This increase would significantly impact the City's personnel costs. Staff has contacted the Southern California Joint Powers Insurance Authority about participation in the workers compensation self - insured loss pooling program which the Authority has operated since 1980. Participation in the program is possible if the City of Moorpark receives a certificate of consent from the Industrial Relations Board and remits a deposit of $65,000 for claims to the Authority. The Authority program is a self - insured pool program which is significantly different than our previous coverage. SCIF was responsible for any costs over the City of Moorpark's premium. Under a self - insurance and loss pooling program all of the member cities share in portions of the costs. 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 The Authority plan would have the City of Moorpark responsible for the first $25,000 of costs for every claim filed by a Moorpark employee. The City of Moorpark would then share, on a pro rata basis with the other thirty seven cities, all Members' losses exceeding the retention levels to $100,000, based on a percentage of the City of Moorpark's retained losses to the total of all Members' retained losses. Then the City of Moorpark would pay a pro -rata share of all administrative expenses plus losses from $100,000 to $500,000 , based on the City of Moorpark's payroll as a percentage of total payrolls. The attached Summary of Workers Compensation Coverage Program which was published by the Authority outlines the program. Over the last four years an average of $23,000 has been paid out by SCIF on claims filed by Moorpark employees. The costs include direct compensation to the injured worker, as well as, administrative, legal and medical expenses. The attached schedule details the costs paid and incurred on claims since 1987. The Authority has indicated that if the City had been a member of their program over the last several years the City would have saved approximately $36,500 in premium expenses. The current required deposit for FY 90/91 is one half of the premium required for continued coverage with SCIF. It is very unlikely that the City's paid losses will exceed this deposit therefore participation in the authority program is recommended. In order for the City to participate in the Authority program the City of Moorpark must apply to the Industrial Relations Board for a certificate of consent to self- insure worker's compensation liabilities and the City must remit the required deposit to the Authority. RECOMMENDATION: (Roll Call Vote Required) Staff recommends the City Council authorize participation in the SCJPIA program by approving the following actions: 1. Approve Resolution No. 90 - authorizing application to the director of industrial relations for a certificate of consent to self insure worker's compensation liabilities. 2. Approve Resolution 90 - authorizing and approving self - insurance of worker's compensation for Moorpark employees through the self- insurance and loss pooling program of the Southern California Joint Powers Insurance Authority. 3. Appropriate $65,000 from the general fund reserve to administrative services, insurance services 01.4.117.658 for payment of the required membership deposit, per the Authority Executive Committee. Attachments: SCIF Rate Increase Letter SCJPIA Deposit Letter Modifier Calculation Schedule Paid Loss Schedule Application to Industrial Relations Board Resolution 90- IRB Summary of Workers Compensation Program Resolution 90- SCJPIA STATE PUND ,yl,r ,14Y(; IN REPLY AFFFQ T(1- April 7-7, 199;- 049047 -SS City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Dear Policyholder An underwriting review of your account indicates that an Agreed Modification of 2SO% will be applied to your workers' compensation insurance policy as it renews, effective July 1, 1990 for the period 7 -1 -90 to 7 -1 -91. This will include any Experience Modification assigned by the Workers' Compensation Insurance Rating Bureau. Therefore, you will be paying 2.5 times the basic manual rates. This increase in premium is due to an adverse loss record. A summary of your policy history is shown below: This increase in premium will necessitate an additional deposit in order to comply with Workers' Compensation Insurance Rating Bureau guidelines. Very soon you will receive an additional deposit premium bill in the amount of $3,300. Your policy will be reviewed annually. This review will determine whether this special rate will be changed or totally eliminated on renewal. We recommend that you initiate a formal training program for your employees, outlining specific safety measures that will assist in controlling accidents and injuries on the job. RECE'VED 0 -1 1990 669 County Square Drive • Ventura. CA 93003.5401 ,�4 of V4)1•1,1: (895) 644 -4-J00 � 1— P n Rn■ S • Ventura CA 93002 -2268 STANDARD INCURRED NUMBER OF YEAR PREMIUM LOSSES INJURIES 89 $42,400 $61,2SS 4 88 $28,029 $51,573 1 87 $17,942 $59,642 6 86 $13,250 $ 0 0 85 $10,977 $28,118 2 This increase in premium will necessitate an additional deposit in order to comply with Workers' Compensation Insurance Rating Bureau guidelines. Very soon you will receive an additional deposit premium bill in the amount of $3,300. Your policy will be reviewed annually. This review will determine whether this special rate will be changed or totally eliminated on renewal. We recommend that you initiate a formal training program for your employees, outlining specific safety measures that will assist in controlling accidents and injuries on the job. RECE'VED 0 -1 1990 669 County Square Drive • Ventura. CA 93003.5401 ,�4 of V4)1•1,1: (895) 644 -4-J00 � 1— P n Rn■ S • Ventura CA 93002 -2268 Page 1. City of Moorpark 649047 -89 Our safety staff can be an excellent resource in the implementation of this safety program. If we can be of assistance, please feel free to contact our Safety Manager, Robert Kean. If you have any questions, or wish to respond to this letter to discuss this special rate, please feel free to contact me at (805) 658 -5365. Otherwise, the special rate will go into effect as outlined above. Sincerely Richard Miller District Underwriter tic so. u CAL. SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY EXECUTIVE COMMITTEE PRESIDENT May 30, 1990 FRANK M. PALACIO La Puente VICE PRESIDENT KEN GILLANDERS Temple City Richard Hare SECRETARY Risk Manager LARRY VAN NOSTRAN City of Moorpark Lakewood 799 Moorpark Avenue Moorpark, CA 93021 MEMBERS Re: Request for Workers Compensation Pro Forma $10K SIR Deposit Computation GENE W. BECKMAN La Habra Heights Dear Richard: CHARLES BELBA Lomita Attached are copies of the pro forma computation used to formulate your Worker's Compensation deposit. The estimated CURTIS MORRIS minimum deposit with a $25K self - insured retention is $65K. The San Dimas proforma reflects your city's experience as it would have performed in the retrospective deposit adjustment computation for ALBERT G. PEREZ each coverage period. South El Monte THOMAS THURMAN Also let me remind you that the above figure is a deposit not a Cudahy premium. If you continue to apply effective o-T ss control techniques, your City would probably be entitled to a refund BETTY WILSON (deposit plus interest less expenses and losses). Should your Sante Fe Springs city experience be negative, your City would owe additional funds to the SCJPIA Worker's Compensation Pool. EX OFFICIO If your city had participated in the SCJPIA Worker's Compensation Rivera program for -the previous five years ( 1985 to present), your Pico Rivera JAMES M. ITE city could have realized a savings of $36,536. ADMINISTRATIVE OFFICE 4952 La Palma Avenue La Palma. CA 90623 11 (2) 13) 402 -6372 The current estimated State Fund premium of $90 -120K versus the SCJPIA Deposit of $65K would yield a return of $25 -55K plus interest- earnings. RECEIVED jU�I - 1 1 ;:3. Wt1 i1 ,Ii�ilf ?i May 30, 1990 City of Moorpark SIR 1OK Deposit Computation Page 2 Should your City decide to enroll, there are several items that need to be handled ASAP in order for your City to qualify for the SCJPIA Program. (1) Secure a Certificate to self - insure from State Depart- ment of Industrial Relations. (The certificate appli- cation and a standardized resolution (see No. 2) is attached for your convenience). Please complete and send to Mark B. Ashcraft, Self- Insurance Plans, 2848 Arden Way,Suite. 105, Sacramento, CA 95825, (916) 924 -4866. The above process is tedious, time consuming, and must be completed as soon as possible. Attached is a sample certificate you may wish to utilize. (2) The City of Moorpark's City Council must adopt a resolution declaring the City is self- insuring and participating in the SCJPIA Workers' Comp. Program. (3) It is suggested that the City of Moorpark Council adopt a resolution including city volunteers in the Workers' Comp. Program. This would make Workers' Comp. an exclusive remedy and should protect the City from the potential for further civil action taken by volunteers. Note: Should you desire, the SCJPIA Staff will help you ex- pedite the above tasks. If you have any questions or need further assistance concerning the above matter, please let me know. Sincerely, ;`Joanne Rennie ;Risk Manager JR:rc Enclosure MODIFIER 1.86 THE TABLE BELOW REFLECTS THE CURRENT PREMIUMS PAID FOR WORKERS COMPENSATION COVERAGE THROUGH THE STATE COMPFNSATION INSURANCE FUN 3,810.58 EXPERIENCE MODIFIER 1.86 TOTAL PREMIUM OWED 7,087.68 NEW MODIFIER 2.5" THE TABLE BELOW REFLECTS THE COMPARISON PREMIUMS PAID FOR WORKERS COMPENSATION COVERAGE THROUGH THE STATE COMPENSATION INSURANCE FUN 3/1/90 - 4/1/90 CODE # DESCRIPTION PAYROLL BASF RATE PREMIUM 8810 CLERICAL 78,475.33 0.83 651.35 9410 MUNI - NON MANUAL 13,119.49 4.20 551.02 9420 MUNI - MANUAL 23,287.64 11.20 2,608.22 3,810.58 EXPERIENCE MODIFIER 1.86 TOTAL PREMIUM OWED 7,087.68 NEW MODIFIER 2.5" THE TABLE BELOW REFLECTS THE COMPARISON PREMIUMS PAID FOR WORKERS COMPENSATION COVERAGE THROUGH THE STATE COMPENSATION INSURANCE FUN 3,810.58 EXPERIENCE MODIFIER 2.50 TOTAL PREMIUM OWED 9,526.45 DIFFERENCE 2,438.77 PERCENT INCREASE 34.41 3/1/90 - 4/1/90 CODE # DESCRIPTION PAYROLL BASF RATE PREMIUM 8810 CLERICAL 78,475.33 0.83 651.35 9410 MUNI - NON MANUAL 13,119.49 4.20 551.02 9420 MUNI - MANUAL 23,287.64 11.20 2,608.22 3,810.58 EXPERIENCE MODIFIER 2.50 TOTAL PREMIUM OWED 9,526.45 DIFFERENCE 2,438.77 PERCENT INCREASE 34.41 CITY OF MOORPARK PAID LOSS AND INCURRED LOSS SCHEDULE PRINT DATE: 06/06/90 YR COMP MED LEGAL COMP est 90 0 0 0 12,200 90 896 3,259 0 896 90 2,080 3,107 0 15,600 90 240 0 2 15,600 89 17,305 3,988 0 32,867 88 20,924 24,077 0 20,924 88 1,024 687 0 1,024 88 60 296 0 60 88 2,580 8,756 1,237 2,580 87 0 0 0 0 MED est LEGAL e 10,400 0 3,259 0 13,400 0 13,400 0 18,706 0 24,077 0 687 0 296 0 8,756 1,237 0 0 TOTAL PAID 0 4,155 5,187 242 21,293 45,001 1,711 356 12,574 0 TOTAL INCURRED 22,600 4,155 29,000 29,000 51,573 45,001 1,711 356 12,574 0 TOTAL 45,109 44,171 1,239 101,751 92,982 1,237 90,519 195,970 FOUR YEAR AVERAGE 87 - 90 22,630 48,992 STATE OF CALIFORNIA Page 1 DEPARTMENT OF INDUSTRIAL RELATIONS SELF-INSURANCE PLANS Our File: P- 2848 Arden Way, Suite 105 Sacramento, CA 95825 APPLICATION FOR A PUBLIC ENTITY CERTIFICATE OF CONSENT TO SELF INSURE NOTE: All questions must be answered. tf not applicable, use symbol 'NIA'. Workers' compensation insurance must be maintained until certificate is effective. for ICANT INFORMATION City of Moorpark Legal Name of Applicant (Show exactly as on Charter or other oN;ci I documents): 799 Moorpark Avenue Street Address of Main Headquariers: Federal Tax ID No: Mailing Address (if different from above): Moorpark CA 93021 95- 3860962 City, State Zip + 4 Type of Public Entity (Check one): U City and/or County LJ School District { J Poke and/or Fire District U Hospital District IXI Other. (Describe) Mun 1 C 1 pa 11 tY - Type Application (Check One): I X I New Application LI Reapplication due to Merger or Unification LI Reapplication due to Name Change Only I_j Other (Specify): Current Program for Workers' Compensation Llabllltles LXJ Currently Insured with Slate Compensation Insurance Fund, Policy Number. 649047 Policy Expiration Date: 30 days notice Yearly Premium: s 120, 000 Current Yearly Incurred (Paid 6 Unpaid) Losses: $'84, 754 CY (FY or CY) " Currently Self- Insured: Certificate Number : Name of Current Certificate Holder. L_1 Other (Describe): Page 3 AGENCY EMPLOYMENT Current Number of Agency Employees: 47 Number of Public Safety Officers (law enforcement, police or fire): N/A If a school district, number of certificated employees: Will all agency employees be included in this self insurance program? U Yes U No If answer is 'No', explain who is not included and how workers' compensation coverage is to be provided to the excluded agency employees: SAFETY AND ACCIDENT PREVENTION Does the agency have a written Safety and Accident Prevention Program? LJ Yes " No Name of Individual responsible for agency Safety and Accident Prevention Program: Name and Tide: Steven Kueny, City Manager City of Moorpark Company or Agency's Name: 799 Moorpark Avenue Mailing Address: Moorpark CA 93021 City. Telephone No.: 522-Q864 SUPPLEMENTAL INSURANCE Stale: Zip + 4: Will your self insurance program be supplemented by any insurance coverage under a standard workers' compensation insurance policy? LJ Yes M No (If yes, then complete the following): Name of Carrier: Policy Number: Policy Issue Date: RESOLUTION NO. 90- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA AUTHORIZING APPLICATION TO THE DIRECTOR OF INDUSTRIAL RELATIONS, STATE OF CALIFORNIA, FOR A CERTIFICATE OF CONSENT TO SELF INSURE WORKER'S COMPENSATION LIABILITIES The City Council of the City of Moorpark does hereby resolve the following: The City Manager is hereby authorized and empowered to make application to the Director of Industrial Relations, State of California, a Certificate of Consent to Self Insure worker's compensation liabilities on behalf of the City of Moorpark, and to execute any and all documents required for such application. PASSED AND ADOPTED by the City Council of the City of Moorpark at a regular meeting of the City Council held on the 6th day of June, 1990. Bernardo M. Perez, Mayor Attest: Lillian Kellerman, City Clerk 651.res 50.� ❑ CAL 0 DATE: SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY JULY It 1988 —I SUBJECT: SUMMARY OF WORKERS COMPENSATION NO& s COVERAGE PROGRAM (Replaces No, 1E PROGLU t: -insurance, including pooling of retaineo lcsse�.'by sCjP1A members in �..,Sjjf Workers Compensation Program. plus Excess insurance. INSURED:_. SCJPlA members (including Authoriti es, Agencies. etc.. wholly owned &no orkers Compensation controlled by a member). which have entered the Mockers Program by Resolution of Council. COVERS: (A) Stat utory liability under California Workers Compensation Law. and (B) Any liability under law•for damages arising from employment. - - . LIMITS:', Under (A) Scheduled Statutory bene fits, and under k5y$5,000.000 per Occurrence . ..... DEPOSITS �,(A). -:Annual Deposit _as determined by the Executive Committee. tation of.Deposit,.each Member charged 7777777��;-(B) Annual Retrospective Recompu with -the sum of the following: retention level.: Member's 'own' incurred t 0 e.assigned re losses ($10 .$25i or,.$50,000 depending ;.on Member's payroll and tinancial "�', he retention -,Ievel'for c laiffs Anolvinq Police or i ty T 'for rsonnel.is'.;$50,000, &I I - Members k- p!, e re- Department -.pe rati'share of all,Mimbers osses exceed levels 0' etained losses ..to too .1-based-,6n percentage �-. Member'i-'--r f?,al 1. Members.!4', retained . i' -pj-f eral.�"and'',"'admi i I .4!�,rt e peniisopituv losses ati,i6re!,of 4'" - nistrativ 'ei ed"' percentage - -Opp10 ,on, 00", , as _. a lUo', OW�j) ed_ <the-dllference D eTW 6ftr unt.1 'a I '?jkiwq -, 3 TIP" - "jjjjfi.'SCjP1A: Member's 1quity,-1:-.- ItUUND,.OF�,�IWESTMEI(T,-tUNINGS.��,AlI ,deposits qare��credittdl.to-.,l cco h, nsis.-:-,?AccumuI &tea 7U7-iquglj,Cjs pe un prdAreduced,�,Cnjy, t ices4relire unded.3nnUa11y,,,-.�,- 11iA1W11*1i41 4.NIIN' V4. "comrage has !�I�j f.4'w ork er s ,64efis a t I on -Val unteervcoyer,ed RI AL4EXCLUSIONSi 1 uti on 0, f 'th� -Z ly?i ouni 1 1'�" een,,extended to t 4 �h P1 ove ,rn, Licess, r Rit ntion Le e :' ttained by Me e r -�JFE ABOYF S A SuKtuy ONLY - FOR FULL COVERAGE 6E' TAILS SEE COPT•OF EXCESS IxSukANCE POLICY OX FILE AT T�E AUT WRITY OFFICE OLD REPUBLIC POLICY NO. WEIS-MA RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, VENTURA COUNTY, CALIFORNIA, TO AUTHORIZE AND APPROVE SELF - INSURANCE OF WORKER'S COMPENSATION FOR ITS EMPLOYEES THROUGH THE SELF - INSURANCE AND LOSS POOLING PROGRAM OF SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY The City Council of the City of Moorpark does hereby resolve as follows: WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Section 990.4 and 990.8 of the California Government Code, the Southern California Joint Powers Insurance Authority was created in 1977; and WHEREAS, the City of Moorpark has become a member of Southern California Joint Powers Insurance Authority, and also of its General Liability Program; and WHEREAS, Southern California Joint Powers Insurance Authority has established and administered a successful Worker's Compensation Self- Insurance and Loss Pooling Program for its members since January 1, 1980; and WHEREAS, there are significant financial and administrative advantages for the City of Moorpark to provide Worker's Compensation coverage for its employees through the said Self- Insurance and Loss Pooling Program of Southern California Joint Powers Insurance Authority. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING: SECTION 1: Worker's Compensation coverage for employees of the City of Moorpark through the Worker's Compensation Self- Insurance and Loss Pooling Program of Southern California Joint Powers Insurance Authority is hereby authorized and directed, effective July 1, 1990. SECTION 2: The City Manager of the City of Moorpark is authorized and directed to apply to the Department of Industrial Relations for a Certificate of Consent to Self - Insure, and to take such other actions as necessary to effectuate self- insurance of Worker's Compensation for City employees. SECTION 3: That an Initial Annual Worker's Compensation Deposit of $65,000, or such pro -rata part thereof as the Authority might determine for coverage of less Resolution No. June 6, 1990 Page 2 than a fiscal period, is approved and the appropriate officers of the City are authorized to pay the same to the Authority. SECTION 4: That a Loss Retention Level of $25,000 per occurrence is approved for all employees. SECTION 5: That the Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution, and thereupon the same shall take effect and be in force. SECTION 6: That the City Clerk is directed to forward a certified copy of this Resolution to Southern California Joint Powers Insurance Authority, 4952 La Palma Avenue, La Palma, California 90623. PASSED AND ADOPTED by the City Council of the City of Moorpark at a regular adjourned meeting of the City Council held on the 6th day of June, 1990. ATTEST: Lillian Kellerman, City Clerk 653.res Bernardo M. Perez, Mayor