HomeMy WebLinkAboutAgenda Statement 1978/03/28 Item 12CITY OF CHULA VISTA
- -- COUNCIL AGENDA STATEMENT , • ,Item No. ~2
For meeting of 3/28/78
ITEM TITLE Resolution 90.~1°:Accepting Bids and awarding Contract for Worker's
Compensation Excess Insurance
SUBMITTED B~ Director of Finance
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO )
The following bids were received on March 10, 1978 for renewal of our excess Worker's
Compensation coverage due April 1, 1978. At the present time, we have $1,000,000
excess coverage with a $200,000 self-insured retention.
Com an
1. Employers Reinsurance Corporation
$1,000,000 excess of $200,000 S.I,R.
Rate .2466 per $100 of payroll
Deposit Bid
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COUNCTL ACTION
2. National Union Insurance Company (Present Carrier)
$1,000,000 excess of $250,000 S.I.R.
Rate .186 per $100 of payroll
Minimum and Deposit Bid
3. Employers Reinsurance Corporation
$1,000,000 excess of $250,000 S.I.R.
Rate .185 per $100 of payroll
Deposit Bid
1-\/ I f T T T T A
Bids
$20,000
$15,000
$15,000
t~h I IS I ~ J
Agreement Resolution Ordinance Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
There would be no financial impact in approving options 1 or 3. Option 2 would
require an appropriation of $7,900 from the General Fund Reserve.
STAFF RECOMMENDATION
Accept bids and award contract for Option No. 2.
BOARD/COMMISSION RECOMMENDATION
N/A
~IPPROVED
by the
Ciiiy Crivttz:~'.1
G't
Chula titlStc".:, (.,~:___:.Y J.~'fil~.
Dated ~- - GG
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AGENDA ITEM # 12
SUPPLEMENTAL AGUE 2-
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Com an
4. Employers Reinsurance Corporation
$2,000,000 excess of $250,000 S.I.R.
Rate .2158 per $100 of payroll
Deposit Bid
5. Employers Reinsurance Corporation
$2,000,000 excess of $200,000 S.I,R.
Rate .2836 per $100 of payroll
Deposit Bid
Bid
$17,500
$23,000
All the bids received were based on an estimated payroll of $8,055,300 for
calendar year 1978. As the above schedule indicates, the bids range from $15,000
to $23,000 in annual premiums depending upon the amount of self-insured retention
and the level of excess coverage.
Based on the bids submitted, we have 3 possible options.
Option No. 1
We can remain with our present carrier at no change in price from last year if
we are willing to assume an additional $50,000 risk over our present $200,000
self-insured retention. We would still maintain the present $1,000,000
excess coverage.
Option No. 2
We can select the bid of Employers Reinsurance Corporation increasing our
coverage from $1,000,000 excess coverage to $2,000,000 and maintain the present
$200,000 self-insured retention. This will cost $23,000, or $7,900 over the
$15,100 budgeted for this insurance.
Option No. 3
We can eliminate any excess coverage for Worker's Compensation Insurance
and become 100% self-insured.
In reviewing the bids with R. L. Kautz and Company, our claims administrators,
they have recommended that we accept Option No. 2. They feel that it is not only
our best buy, but we could pick up an additional $1,000,000 in excess coverage
and maintain our present retention level of $200,000. It would also be my
recommendation that the City Council select Option No. 2. This would require a
special appropriation of $7,900 from the General Fund Reserve.
My second choice would be to select Option No. 1, maintaining our present price
and assuming an additional $50,000 retention. I would not recommend Option No. 3
whereby the City would become 100% self-insured.
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INSURANCEp~~Ce
400 THIRD AVENUE • BOX 1355 • CHULA VISTA, CA 92012 • TELEPHONE (714) 420-1070
March 10, 1978
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 92010
Attn: Gordon Grant, Finance Director
Re: Excess Workers' Compensation
I am pleased to present proposals for renewal of your Excess Workers'
Compensation coverage, as below:
(1) National Union Insurance Co. (Present Carrier)
$1,000,000 excess of $250,000 S.I.R.
Rate, .186 per $100 pay roll
Minimum and Deposit Premium, $15,000
(2) Employers' Reinsurance Corporation
$1,000,000 excess of $250,000 S.I.R.
Rate, .185 per $100 pay roll
Deposit, $15,000
(3) Employers' Reinsurance Corporation
$2,000,000 excess of $250,000 S.I.R.
Rate, .2158 per $100 pay roll
Deposit, $17,500
' (4) Employers' Reinsurance Corporation
$1,000,000 excess of $200,000 S.I.R.
Rate, .2466 per $100
Deposit, $20,000
(5) Employers' Reinsurance Corporation
$2,000,000 excess of $200,000 S.I.R.
Rate, .2836 per $100
Deposit, $23,000
National Union quote is based on estimated pay roll of $8,055,300.
Employers' Reinsurance Corporation has included a minimum pay roll of
$5,000 each for special officers in traffic control.
I have given the above figures to Pat Kelly at R. L. Kautz & Co., and
will pass on his remarks as soon as I hear from him.
Sincerely yours,
CR~'ASER, PRICE INSURANCE AGENCY, INC.
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Ch~r~es S. Shippey
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Form No. F-229
12/73
CERTIFICATE OF CITY/DIRECTOR OF FINANCE
Certification of Una~ropriated 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 $ 7,900.00 Fund General Fund
Purpose Worker's Compensation Excess Insurance
Bidder National Union Insurance Company
100 0700 5236 C~'<y~ _
Director of Finance
The City of Chula Vista
Date 3/27/78 By
Certification of Unencumbered Balance
~•
i.
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
Date
Fund
Purpose
Bidder
By
Dept./Activity
Certificate No.
O
~~ INSURANCE MANAGERS
P.O. Box 1657 ^ P.O. Box 4648 ^ 2595 Bayshore Blvd.
Stockton, CA 95201 Portland, OR 97208 Palo Alto, CA 94303
(209)948-0555 (503)641-1976 (415)329-8020
DATE ~ March 29, 1978
INSURED: City of Chula Vista
f i -- l~:J~~,yv
COVER NOTE I~T~ 69149
^ 5151 North Palm ^ 2150 N. 107th St. tKK] 2515 Camino del Rio South ^ 16633 Ventura Blvd.
Fresno, CA 93704 Seattle. WA 98133 San Diego, CA 92108 Encino. CA 91316
(209) 226-8042 (206) 363-1303 (714) 297-7570 (213) 990-8400
ADDRESS: Civic Center
Chula Vista, California 92010
Effective from 12:01 A.M. 4-1-78 to 11:59 PM on 4-29-78
time date date
This is to certify that in accordance with your instructions (WEST Insurance Managers has effected insur-
ance with:
COMPANY COVERAGE LIMITS TERMS
Employers Excess Worker's $2,000,000. $23,000.00 Deposit
Reinsurance Compensation $17,250.00 Minimum
Corporation $200,000. SIR
.2836 Rate per $100.
C-21683 Voluntary Payroll Payroll based on
Endorsement
$8,109,300.
CONDITIONS: The above coverage will remain in effect for the term indicated above unless cancelled
by the INSURED or (WEST Insurance Managers via written notice.
This Cover Note is subject to all the terms and conditions (not inconsistent with the pro-
visions hereof) of the standard policy form issued by the insurers as to liability for any
and all claims.
This Cover Note is subject to all the terms and conditions of the policy or certificate to be
issued. Furthermore, this Cover Note shall be terminated and voided by delivery of a
policy or certificate to either the Insured, his agent or representative.
In the event of cancellation or expiration of this Cover Note without a policy or certificate
being issued, we are required by the insurers to hold the Insured, his agent or broker
responsible for earned premiums. This shall be determined by the short rate factor of
the annual premium and/or rate.
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i'1~ FLAT C~NCtLLt;TiOfvIS ~1LL0~~'~~i~D
BROKER Creaser, Price Insurance
ADDRESS P• 0. Box 1355 ~/y~~
Chula Vista, California 92102 /~
BY:
Authorized Representative
EST INSURANCE MANAGERS