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HomeMy WebLinkAboutAgenda Statement 1979/08/07 Item 20CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No: 20 For meeting of 8/7/79 ITEM TITLE RESOLUTION: 97~ ~ Repealing Resolution No. 9392 which placed volunteers under Worker's Compensation, authorizing a separate insurance program for volunteers, and appropria ing funds therefore SUBMITTED BY Director of Person e ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES x NO ) Currently, the City's volunteers are covered under regular City insurance programs. In the case of on-the-job injury, a volunteer would be covered under Worker's Compensation. This would mean full medical costs, possible temporary disability pay- ments, and/or a possible $50,000 death benefit. For auto accidents and/or damages to others allegedly arising out of volunteer service, the volunteers would be covered under the City's Self-Insured Public Liability Program. These coverages are the same as those that would be awarded to regular full-time employees. Especially in the case of Worker's Compensation, the benefits are extremely liberal and costly. Volunteers are big business in the United States. Many agencies such as Red Cross; United Way, Lung, Heart and Cancer Associations are run primarily by volunteers. The insurance "problem"for volunteers has always been a major one. Insurance companies do not like to insure volunteers, and therefore, securing insurance coverage for vol- unteers has been a major obstacle for non-profit agencies. To meet the need that was created out of this situation, a new non-profit organization was developed, the Con- sortium for Human Services, Inc. The Consortium provides low cost, low limit excess coverages for volunteers in the areas of auto. insurance, public liability, and medical/ accidental death. The coverages provided by the Consortium for Human Services, Inc. through the Insurance Company of ~dorth America and the Life Insurance Company of North America are now avail- able to us. The plans have been analyzed by our insurance broker at Creaser Price, and the Claims Manager at R.L. Kautz, where our Worker's Compensation is administered. It is the opinion of both of these people, and the Risk Manager, that the insurance coverage provided through the Consortium would be more appropriate than .our current coverages. (CONTINUED ON SUPPLEMENTAL PAGE) rvi i rn rTn ~nnt~ii~ Agreement Resolution X Ordinance Plat Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT An appropriation of $548.00 from the General Fund unappropriated balance would be necessary to purchase insurance.. STAFF RECOMMENDATION Adopt resolution removing volunteers from Worker's Compensation coverage, adopt separate insurance coverages for volunteers, and transfer $548.00 from the General Fund to Account Number +0700-5233 to purchase the volunteer insurance. BOARD/COMMISSION RECOMMENDATION COUNCIL ACTION ~~1~ ,,,I ~# Item No. 20 Supplemental Page 2 This is based on the recognition that volunteer coverages need not be as great as coverage for full-time employees, and that the possible losses under Worker's Compensation are too great in relation to the amount of service provided by vol- unteers. Therefore, it is proposed that the City remove volunteers from the insurance programs enjoyed by our full-time employees and place them exclusively under the coverages provided by the Consortium for Human Services, Inc. In order to accomplish this volunteers must be removed from the Worker's Compensation plan. They were placed under the plan by Resolution 9392 on December 5, 1978. Anew resolution has been prepared which will remove them from this coverage upon the effective date of coverage with the Consortium for Human Services, Inc. The cost for the special volunteer insurance is very reasonable. It is $4.00 per year per volunteer for excess auto insurance. This is a $500,000 each accident policy which is secondary to the volunteers own insurance, i.e., it would go into effect after the limits of the volunteers' policy were reached. The cost for medical/ accidental death is 85¢ per volunteer per year. This is also in excess of any other insurance the volunteer may have and has a limit of $10,000 medical and $2,500 life. It is not recommended that the City purchase the Consortium's Public Liability Insurance Plan as the City's Self-Insured Program is appropriate for this coverage. The annual cost for these coverages would be as follows: Membership in the Consortium: $50 per year = $ 50.00 h1edical/Accidental Death: $0.85 x 350 293.00 Excess Auto: $4.00 x 50 = 200.00 548.00 These policies are based on named insureds. For that reason the premium is based on each volunteer entering the program. Since we anticipate turnover, the number of volunteers has been set high to accommodate the turnover. If at the end of the year we have not enrolled the total number of volunteers, the City will receive a rebate. If we exceed the number of volunteers listed, there will be an additional premium amount. A supplemental budget appropriation of $548.00 is necessary to purchase these coverages. ~ ~~iY Form No. F-229 12/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount S 548.00 Fund General Purpose Volunteer Tnsurance Coverage 100 0700 5233 Bidder PI/A Date 8/6/79 By 1 Director of Finance The City of Chula Vista Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista c~~15 Date Fund Purpose Bidder Certificate No. q ~P- s~r9 By Dept./Activity