HomeMy WebLinkAboutAgenda Statement 1988/06/07 Item 14COUNCIL AGENDA STATEMENT
Item 14
• Meeting Date 6/7/88
ITEM TITLE: RESOLUTION ~.3~ ~ ~ Approving the transfer of funds in the
Insurance Budget and authorizing expenditure of these funds
to purchase capital equipment for the Risk Management
Division of Personnel.
SUBMITTED BY: DIRECTOR OF PERSONNEL~~~
REVIEWED BY: CITY MANAGER J G 4 (4/5ths Vote: Yes X No_)
Last month staff learned that the Public Liability Insurance premium for
FY 1987-88 is $127,700 less than what was budgeted. The reduction in
premium is a result of our participation in SANDPIPA (San Diego Pooled
Insurance Program Authority) with ten other San Diego County cities,
wherein the Authority has achieved funding stability through the adoption
of a funding model which provides short and long term protection for
participating members. The immediate net effect of adopting the funding
model was a reduction in premium amounts.
This statement outlines a proposal of how a portion of these surplus funds
can be used to purchase two needed capital items for the Risk Management
Division of Personnel. The items are (1) a stand-alone personal computer,
rinter, workstation, General Liability claims tracking software system
d (2) a typewriter. Their total cost is $9,886. As discussed at the
ne 1, 1988 Council budget review session, these items are recommended
for purchase now rather than being included in the FY 1988-89 budget.
RECOMMENDATION: Adopt resolution approving transfer and expenditure of
funds.
DISCUSSION: Currently, the City maintains a liability claims loss run
report system that is outdated, inadequate and subject to error. For each
transaction that occurs in a liability claim, a transmittal sheet is
prepared and sent to data processing where input is made. This extra
handling step increases the chance of error. Once errors are detected,
they can only be corrected the following month when the next batch of
transmittals are being input. The system does not allow sorting by
claimant name, accident location or reserves. Therefore, we are unable to
trend claims or identify problem areas in the City. Although the existing
mainframe program could be rewritten, this type of new system is much more
cost-effective to develop and operate on a microcomputer than on a
mainframe.
An alternative to the existing system is to contract with our third party
administrators, Carl Warren & Co., for their computer services. While
their system is marginally better than ours, the costs are high-
approximately $10,000 to start up. The other disadvantage is that special
reports, sorted as described above, cost between X100 and 150 each and
~ake two weeks to generate.
the City F' _,,,.-~,~i! of
Chula Vist•~, :rnia
Dated
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14
Page 2, Item
Meeting Date 6f 7/88
microcomputer, printer and database software system will allow staff to
0 on-line in tracking liability claims. Appropriate data fields can be
established, information can be input by the Risk Analyst and meaningful
reports can be generated. The chance of input error is reduced, the Data
Processing staff workload is reduced, and most importantly, the Risk
Analysts' annual workload would be reduced by approximately 324 hours.
Liability claims could be tracked, trended and managed better with an on-
line system. Management information could be generated to evaluate new
loss control programs.
This type of system is the first step on a path to a more sophisticated
claims administration system that would give the City flexibility in the
future when we self administer our liability claims.
The software program we are interested in purchasing also contains a word
processing program which would save the Risk Analyst even more time as she
does all her own typing now.
The costs are as follows:
PTS-GL Fast Track General Liability $2,194.00
Software System and installation
(includes 2 days training and 90 days
software support)
~ST Premium 286 P.C. with Monitor $2,949.00
Laserjet II Printer $1,605.00
Work station and printer table $ 420.00
$7,168.00
6.5% tax ~ 466.00
Subtotal $7,634.00
Installation $ 850.00
Contingency (5% of estimated purchase cost) $ 358.00
Subtotal $8,842.00
12 months of software support services $ 264.00
TOTAL $9,106.00
Effective April 1, 1988, the reporting form for all occupational injuries
or illnesses has been changed. Because the State Division of Industrial
Accidents will be using an optical scanner, the new forms must be typed.
Judy Sisson, who is currently responsible for the processing of these
forms does not have a typewriter. The cost is as follows:
IBM Wheelwriter
Maintenance
~ISCAL IMPACT•
5233.
TOTAL
Funds are available in Insurance
$ 750.00
$ 30.00
$ 780.00
Budget account 100-0700-
058.DL