HomeMy WebLinkAboutAgenda Statement 1975/01/28 Item 08J I
CHULA VISTA CITY COUNCIL MEETING Or: January 28, 1975
TTFAR TTTT T:
INITIATED BY:
BACKGROUND
AGENDA ITEM N0. [ 8 ]
Resolution - Approving Special Appropriation for Workmen's
Compensation Trust Fund
Director of Finance
At budget time last year we converted to a complete self-insurance program
administered by R.L. Kautz and Company. Part of the self-insurance program
for Workmen's Compensation Insurance involves the establishment of a
$50,000.00 trust fund to provide sound protection for the City. This r~com-
mendation was contained in the detail sheets of our 1974-75 budget. Thd
estimated cash savings of $75,000.00 in the first year of operation will
more than finance this trust fund.
We should plan on making an annual contribution of $50,000.00 and keep the
entire trust fund invested at all times. Hopefully, if and when necessalry,
the investment income will be used and the principal remain intact.
The importance of providing this reserve fund was underlined for citieslat
the Annual Insurance Risk Seminar sponsored by the League of California
Cities and the Independent Insurance Agents Association of California.
ATTACHED: Resolution [X] Ordinance [ ] Agreement [ ]
Financial Statement:
See EXHIBITS [X] 'No
The special appropriation should come from the unappropriated surplus of
the General Fund.
Commission-Board Recommendation:
N/A
Department Head Recommendation:
Department recommends approval of resolution and appropriation of funds.
City Manager Recommendation:
Concur
Plat [ ]
1-.2
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FUIJD
General
ANNUAL BUDGET
2JON•-PERSONAL EXPEIISE - DETAILED EXPL11NA7'ION
DE1'ARTidLN`i'
Insure nce
DIVISION OR' ACTIVITY AC'1'IVITY N
Insurance 1T00
P
~~~~~~ m
1.
T NUMBER: 5233 ACCOUNT TITLl; :_Public I,_i__ability &
_~ Property llamage
Gener_al liability insurance - P.cttial
cost 73-74:
Base Policy 30,609 plus 15g
Umbrella Policy 6,300 plus 15~
Estimated:
Audit Adjustment
Allowance for Deductibles
Total Request
NOTE: This policy expires September 13,
,1974. Competitive bids will determine
new cost.
$35,200.00
7,250.00
1,000.00
2,500.00
$45,950.00
'OUNT NUMBER: 5236 ACCOUNT TITLE :`^ FJorkmen'_s_ Compensation
This estimate is based upon the City con-
verting to a complete self-insurance program
by July 1, 1974. The estimated expenses
for the first year are as follows:
Annual Operating Expense
Reinsurance Premium $8,050.Oa
Administrative Fee 9,200.00
Subtotal $17,250.00
Estimated losses-40$ of premium or
$46,000.00. Actual amount of cash
paid for losses-30~ of $46,000. 13,800.00
Total Request $31,050.00
NOTE: The total cost•to the City for
1972-73 under the State Compensation
Insurance Fund was $106,666.31. There-
fore, the estimated cash savings to the City would be $75,616.61
in the first year of self-insurance: I would also recommend
that $50,000 of the indicated 1st year savings be placed. in a
reserved account with the City in full control and invested in
a Bank Time Certificate of Deposit.
CITY 'OF CIIULA VISTA, CALIFORNIA _
. //;~,
corm No. F-229
. ,12/?3
CER?'IFTCATE CF CITY/DIRECTOF: OF ;•'INFIdCE
Certification of linal~ rot~r~.ated Bala*:co
I FFFF2IJL'Y CBRTIFY that '.ra m~aney reguirec'. fc~ tFle
appropriation of fends for t'.le purpose set Earth in the attached
resolution is available in the Treasury, or is an'~icipated to
come into the Treasury, al.d is c!~h;~rwisa ur:approp:ci atefi.
Amount $ 50,000.00 Fund General Ftiind
Purpose Worlrnlen ~ s Compensation Trust Ftiind
Bidder N/A !,
G' '~
1700-5236 _ / ~~
_._..__. u~~ _~.
Dire; t.;r o:~ Financa
'ahe !'.zty cf G'h,.i1a Vista
Date January 27, 1975
B<
Certi`ics.tian ;,£ Jl:s~nci:?1?bered Balance
a HER~'BY CEF~TIrY tilai~ the in;iebterness :end ci:,?ica4ion !.
t0 be 1::^L?rre.^l~. .''.~`y' thE9 :,:L1:l~i:.'...^.~. O.' ."-.~JSE'.EiT:'i~='2':` ?S.I:.~1CT..'..?C~~ :.•~' ~~'iE'
attached resciutian can be _ currt~c :iii_:li:'-1°~ the Vio,_~r_iorl of any
Of the ~rCVi,~iionS Oi ::..ii '~'.`,ai ir~r ~~`_~ Y'itE_' ~'~..tj' o` p`hi' ~ v~ t r v
:F?° CJnsClt:itiCil Gr 'L~:= ~ c:.4.':: O'er __i~' ::t~'.tr OT '. = r. _ ; _ y~_ `
f y L..a:l,.....~('sal,:...-: v .'...'
Su ficiert I1UnieS hav ~i2 r' ul.iT' 7„ r" ?'.:.tit,, 1G~:: '"'~C '.,i:7_'~ oSt= Of Sald
contract '- „l_~ t - `Flo
that %uf iClE':.,.' .^_ :; I:~G~:. TFIE~ cz~llcaticns Ci ''
contract are actual' ~' :L::`I?~ i]'ea_-tx)^V r O`' c"3'"e cZnti•C:].iJc~ted t0 come
lnt0 the '~'reas~~rz ~.J ,~ e C_ FC.~. ~. ;~~ .}1C -~`i1~UU~ ~. ~`:.On ~:_C?~i W.`:1Ch
the Same are t0 Fr`e Q."iW;l, c.l~it3 ±.'i;i: t :J~3'.::('_'~.10r11CS :IrJT ct ~'i.L":dily ].n
the Treasury, togeth4r w~.th ;.rc nan ies zn~:icipatea :.o cvr.:e into
the Treasury, tc the cred'_ ~: ,.~ ;,~ u ;~ppi ~:.c.ri~_ tion ~,rt:~ otFle_wisE
unencumbered.
Amount Not to exceed $
_,
Date gY
Fund !^ :~ept. /Activit
Purpose
Bidder
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