HomeMy WebLinkAboutAgenda Statement 1983/07/12 Item 14 COUNCIL AGENDA STATEMENT
Item 14
Meeting Date 7/12/83
ITEM TITLE: Resolution //3/d Approving Request to Transfer Workers
Compensation Insurance Coverage to the San
Diego County Cities Joint Powers Authority
SUBMITTED BY: Director of Finance (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager
We have received an offer to transfer our Workers Compensation Insurance to
the San Diego County Cities Joint Powers Authority.
RECOMMENDATION: Adopt resolution approving transfer of our Workers
Compensation Insurance to the San Diego County Cities Joint Powers Authority.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
At the time the San Diego County Joint Powers Authority submitted a bid for
the Cities Public Liability Insurance, they indicated that by July 1 , 1983
they would be offering Cities Workers Compensation Insurance.
We now have received their offer to provide this insurance with broader
coverage at less cost to the City than our present policy. Our self-insured
retention will be reduced from $200,000 per occurrence to $100,000 per
occurrence with the same overall limit of $2,000,000. The annual cost would
be $8,160 which is based on an estimated payroll of $11,759,000 at a rate of
.06940 per hundred of payroll .
Our present policy which was renewed on April 1, 1983 with Creaser & Price
Insurance Agency costs $12,000 annually, based on a rate of .1020 per hundred
dollars of payroll .
In my opinion, it is in the best interest of the City to cancel our existing
policy early in July and transfer coverage to the Joint Powers Authority. Our
refund upon cancellation should be approximately $8,700 which will be more
than enough to cover the cost of the new policy. By accepting this offer, the
City would benefit substantially from both a financial and coverage standpoint.
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