HomeMy WebLinkAboutAgenda Report - June 17, 1987 (69)C`.LCII. C0 i1 ii itiICAIQ"
TO: THE CITY CCt,4C.0 t t CiAA i.: -;IMTF
�Q
Vii: THE CITY J'AAA AGE4'S OFFICE tt^E :!,
SU6iECT_
APPROVE PURCHASE OF EXCESS WORKERS' COMPENSATION INSURANCE AND PROPERTY
INSURANCE THROUGH CALIFORNIA JOINT POWER INSURANCE AUTHORITY (CJPIA1
PREPARED BY: Assistant. City Manager
RECOMMENDED ACTION: The City Council authorize the City Manager to
place workers' compensation excess coverage and the
City's property insurance through the California
Joint Power Insurance (CJPIA).
BACKGROUND INFORMATION:
Wn"KERS' COMPENSATION INSURANCE
The CJPIA has put together a pooling arrangement
for placement of excess workers' compensation
insurance.
Our present coverage is $150,000 self insured retention (SIR) with $5,000,000
limit at a rate of $.3118 per one hundred dollars of payroll. We have not
received a quotation for renewal. However, those cities who have renewed in
1987 have hal their SIR increased to $200,000 and have had premium increases
from 15 to 35 percent, depending upon their SIRS. We should, therefore, expect
a 15 to 20 percent increase in premium.
By purchasing our insurance through CJPIA, our premium will be reduced to
$.2962, a 5% reduction. Our SiR will increase to $200,000 and our limit to
$10,000,000.
The policy purchased by CJPIA will be a $250,000 SIR. The quoted premiums will
enerate sufficient revenue to produce a pool of $235,000 to pay claims above
200,000. In subsequent years we can increase the SIR on the policy and
further reduce premiums.
The trend in the market 4 -lace is for premiums to increase rather than
decrease. With this co-operative we can expect to see no premium increases and
quite possibly reductions in the future.
Cc!.�:�cil Cc1-�;�t,:^iation
`, „g?
� j u r 7 1 i J
n c. e L
PROPERTY INSURANCE
The CJPIA is placing a broad form property
insurance policy for its members. This policy is
for near one billion dollars at a cost of S.07 per
hundred dollars of coverage.
Our present policy is a broad form policy with extended coverage. The proposed
policy has all the same coverages plus the following:
non-moving autos and vehicles
. business interruptions and associated extra expenses
l o s of _rent,.
all new construction up to $2,500,000 during the policy
year
no exclusion on vacant buildings.
0y purchasing our coverage through CJPIA our premiums will be reduced 42%. Our
SIR will increase from $1,000 to $5,000 per occurrence.
in reviewing our present policies, I discovered we have not insured ourselves
for perils at any of our electric substations. Nor do we have any coverage on
equipment at the wastewater treatment plant if equipment Failure starts a
fire. With the savings in premiums the City should then purchase a machinery
and boiler policy to cover the White Slough Facility and our electric system.
Respectfully sub,'niteed,
rry L. Glenn
Assistant City Manager
JLG:br
TXTA.07A COUNC203
AMENDED
RESOLUTION NO. 87-68
RESOLUTION APPROVING PURCHASE OF EXCESS PROPERTY INSURANCE
THROUGH THE CALIFORNIA JOINT POWER ASSOCIATION
RESOLVED, that the City Council of the City of Lodi does hereby
approve the purchase of Excess Property insurance through the
California Joint Power Association.
BE IT FURTHER RESOLVED that the City Manager and City Clerk are
hereby authorized to execute on behalf of the City of Lodi all
necessary documentation required to place this coverage.
D,a_ted: _ ,,iune 17, 1987 _ _
1 hereby certify that Resolution No. 87-68 was passed and
adopted by the City Council of the City of Lodi in a
regular meeting held June 17, 1987 by the following vote:
Ayes: Council Members - Hinchman, Reid, and Olson (Mayor)
Noes: Council Members - Pinkerton and Snider
Absent: Council Members - None
iw
Alice M. Reimche
City Clerk
87-68
RESOLUTION NO. 87-69
RESOLUTION APPROVING PURCHASE
OF EXCESS WORKERS COMPENSATION INSURANCE
THROUGH THE CALIFORNIt, JOINT POWER ASSOCIATION
RESOLVED, that the City Council of the City of Lodi does hereby
approve the purchase of Excess Workers Compensation Insurance through
the California Joint Power Association.
BE IT FURTHER RESOLVED that the City Manager and City Clerk are
hereby authorized to execute on behalf of the City of Lodi all
necessary documentation required to place this coverage.
Dated: June 17, 1987
I hereby certify that Resolution No. 87-69 was passed and
adopted by the City Council of the City of Lodi in a
regular meeting held June 17, 1987 by the following vote:
Ayes: Council Members - Hinchman, Pinkerton, Reid,
Snider and Olson (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Alice M. Rei mche
City Clerk
87-63