HomeMy WebLinkAboutAGENDA REPORT 1994 0601 CC REG ITEM 08ZTO:
FROM:
DATE:
RE:
CITY OF MOORPARK
AGENDA REPORT
Honorable City Council
{
Richard Hare, Deputy City Man It-
May 24, 1994 (CC Mtg. 6/,1/94)
Background
ITT
A
Consider Appropriation for Retrospective
Deposit for General and Auto Liability Program
Since October 1989, the City of Moorpark has participated with
other cities in the Southern California Joint Powers Insurance
Authority (Authority) general liability and auto liability self -
insurance pool. As a member of the pool the City places deposits
in a self- insurance fund with the Authority. As claims are
administered and closed, the costs are paid from the self - insurance
fund.
The amount to be placed in the fund is determined each year by the
Executive Committee after review of loss information, consultation
with actuaries, and comment by the standing committees of City
Managers and Finance Directors. The City is then required to pay
Primary Pool and Excess Pool Deposits. These deposits for FY
1993/94 were $102,498. If at the end of the year the experience of
the member city is greater than what was originally estimated, then
a Retro (retrospective) Deposit: is requested, and is due June 30.
In the City of Moorpark's case a retrospective deposit of $177,889
is requested. This deposit will be held in our account to pay
costs for administration or closing of claims. Funds not expended
will be returned to the City in the form of a refund. Since 1989,
the City has received one refund (,f $10,_177.
The original contributions of the City to the general and auto
liability fund were much less than they are today (see exhibit
"A"). The Authority has expanded the excess coverage to member
cities from 10 to 20 million dollars, and is moving in the
direction of fully funding the pool. This has caused the increase
in requested deposits. Primary Pool and Excess Pool Deposits
totalling $168,630 will be due for the FV 1994/95 in July.
The number of claims against the City have also risen since we
joined the Authority. The annual average was 8.6 claims per year
as compared to our current annual average of 11.1 claims per year.
This is based on a total of 28 filed claims when we were under
commercial carriers and 64 claims filed since we have been a member
of the Authority. Our annual premium ,pit }a commercial coverage was
$85,000 per year. This was a premium and once paid was lost. Our
average deposits with the Authority have been $125,000 per year.
As a deposit, that portion which is not paid out for expenses will
be reserved for future years' losses or will be returned as
refunds. Staff is requesting the transfer of $151,000 from
undesignated and available fund balance of the noted funds per
Exhibit "B" to add to the current appropriation of $26,889 to equal
the required retrospective deposits of $377,889.
Recommendation: (Roll Call Vote Required)
Staff recommends the transfer of $151,000 from reserves of the
various funds per Exhibit "B"; and the appropriation for the FY
1993/94 general and auto liability retrospective deposits of
$177,889.
Attachments
C:AWPWIN60 \CC.REPARETRO.WPD
Exhibit "A"
FY
SCJPIA
$168,630
Primary and excess for 7/1/94 - 6/30/95 ($155,367 and
94 -95
$13,263 respectively, due 7/1/94)
FY
SCJPIA
$177,889
General Liabilitv retrospective deposit adjust (Due 6/30/94)
93 -94
FY
SCJPIA
$102,498
Primary pool deposit for 7/1/93 - 6/30/94 (W- 20706; 7/7/93;
93 -94
excess pool suspended this year)
FY
SCJPIA
($10,177)
Refund check # 1265 '; 6/11/93
93 -94
FY
SCJPIA
$33,029
Primary and excess pool deposits $27,900 and $5,129
92 -93
respectively; (W-178851-711/92)
FY
SCJPIA
$93,034
General Liabilitv retrospective deposit (W- 17779; 6/24/92)
91 -92
Primary and excess pool deposits for 7/1/91 - 6/30/92
FY
SCJPIA
$35,913
91 -92
($27,900 and $8,013 respectively; W- 15592; 7/1/91)
FY
SCJPIA
$57,501
General liability, retrospective deposit adjustment (W- 15312;
90 -91
5/15/91)
FY
SCJPIA
$36,208
Primary and excess pool deposits ($27,900 and $8,308
90 -91
respectively)
FY
SCJPIA
$27,081
Primary and excess pool deposits ($20,868 and $6,213
89 -90
respectively)
Total
721,606
CITY OF MOORPARK EXHIBIT E
ALLOCATION OF SCJPIA GENERAL LIABILITY
RESTROSPECTIVE DEPOSIT ADJUSTMENT
COVERAGE PERIOD 7/1/93 TO 6/30/94
PER ORIGINAL ADOPTED BUDGET ALLOCATION OF TRANSFER
EXCLUDING FUND 25 RETRO PREMIUM AMOUNT
FUND DEPT.
1 117
26,683
25,000
148
35,573
33,000
170
35,578
19,500
3 142
44,473
40,500
41 131
35,578
33,000
177,889
151,300
177,889
C: \123 \REPORT94 \INSALLOC.WK1