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Description
San Bruno City Council Meeting May 14, 2013
10a. San Bruno to Join CSAC Excess Insurance Authority
B
Good
evening,
honorable
mayor
members
of
the
City
Council,
the
city
is
self-insured
for
workers,
compensation
claims
or
claims
arising
from
injuries
incurred
on
the
job
up
to
the
initial
750
thousand
dollars,
which
covers
medical
disability,
salary,
continuation
and
legal
costs.
This
means
that
the
city
directly
pays
for
all
claims
below
that
750
thousand
dollar
self-insured
retention
level
for
any
claim.
Above
this
amount,
the
city
maintains
a
commercial
excess
workers,
compensation
policy
up
to
the
statutory
maximum.
B
The
city's
current
exes
workers
compensation
policy
through
our
insurance
expires
on
jun
30
2013,
as
part
of
the
renewal
process
quotes
for
coverage,
were
requested
from
several
different
commercial
insurance
groups
and
evaluated,
along
with
other
options
for
insurance
coverage,
which
includes
risk
pools.
As
you
may
be
aware,
the
city
currently
participates
in
at-risk
pull
the
a
bag
risk
pool
for
coverage
for
the
liability
and
property
programs.
B
The
benefit
of
a
risk
pool
is
that
they
are
typically
able
to
secure
more
competitive
pricing
for
insurance
coverage
due
to
their
significant
membership
volume,
and
they
have
the
ability
to
smooth
out
the
market
volatility
from
year
to
year,
so
that
results
in
more
consistent
pricing.
Typically,
in
evaluating
these
options,
city
staff
found
that
many
neighboring
agencies
are
currently
participating
and
obtaining
excess
workers.
Compensation
insurance
through
the
California
State
Association
of
counties
also
referred
to
as
SESAC
excess
insurance
authority,
including
south
san
francisco,
belmont
and
redwood
city.
B
The
CSEC
exes
workers
compensation
program
provides
special
coverage,
features
that
are
now
available
at
many
other
commercial
insurance
programs,
which
includes
coverage
for
volunteers,
and
they
also
do
not
have
a
terrorism
exclusion,
which
is
something
that
is
difficult
to
find
in
the
commercial
marketplace.
In
addition,
the
city
has
the
ability
to
lower
its
self-insured
retention
level
to
as
low
as
125
thousand
dollars.
Participation
in
this
program
in
the
current
at
commercial
market
is
difficult,
almost
impossible
to
look,
go
below
the
750,000
dollar
amount
without
very
much
significantly
increasing
the
premium.
B
The
city's
cost
to
participate
in
the
sea
sack
excess
workers.
Compensation
program
is
estimated
to
be
about
eighty-five
thousand
dollars
to
maintain
a
750
thousand
dollar
SAR.
That's
about
sixty
thousand
dollars
less
than
what
we
paid
this
year
for
our
commercial
insurance
coverage.
In
addition,
staff
is
evaluating
potentially
dropping
the
self-insured
retention
amount
to
five
hundred
thousand
dollars,
which
would
still
be
below
the
current
year
premium.
That
is
paid,
however,
in
the
last
eight
years
for
your
frame
of
reference
no
claim
has
actually
exceeded.
The
750
thousand
dollar.
B
Si
are
so
to
participate
in
the
sea,
sac
EIA,
the
city.
We
need
to
adopt
the
attached
resolution
authorizing
the
city
to
become
a
member
of
the
joint
powers
authority,
and
this
resolution
would
authorize
the
city
manager
to
execute
the
necessary
documents
authorizing
the
city's
participation
in
the
workers,
call
excess
workers
compensation
program
and
once
the
city
joins
the
pool
that
we
would
have
to
remain
in
the
pool
for
one
year
and
then
could
leave
at
any
time.