HomeMy WebLinkAbout17 Contract for Workers' Compensation Revisedenda Item #
ACTION
17
To: Board of Directors
From: Kim Harris
Date: May 04, 2016
Subject: Consideration of the Award of a Contract for Property, Liability and
Workers' Compensation Insurance
1. WHY THIS MATTER IS BEFORE THE BOARD
The District's annual property, liability and workers' compensation insurance coverage
ends June 1, 2016 and must be renewed.
2. HISTORY
In February, 2015, the District Board of Directors awarded the contract for insurance
brokerage services for annual property, liability and workers' compensation to
InterWest Insurance Services for up to a three-year term.
3. NEW INFORMATION
The District worked with Matt Bauer and Tony Pozas with InterWest to complete the
necessary letters and applications to obtain competitive bids for the insurance
package.
InterWest solicited quotes from various insurance companies and then selected the
carriers based on price and rating of the company. The quotes received are
summarized below. -
Coverage
Company
2015/16
2016/17
Notes
General Liability
One Beacon
$155,007
$155,149
Excess Liability
AWAC
$25,500
$27,000
(estimated)
Workers' Comp
SDRMA
$279,177
$184,554
New Carrier
Earthquake
Landmark/Essex
$80,419
$80,665
Crime
Chubb
$4,543
$4,543
Pollution
Steadfast
$6,289
$6,289
3-year - 2017
Cyber
Travelers
N/A
$14,165
New
Coverage
Total
$550,935
$472,365
The proposed property, general liability, and workers' compensation premium cost is
$472,365, which is an approximately 14% decrease from the prior year's cost. It is
also below the budgeted insurance expense for the remainder of FY16 Budget and
will be taken into consideration when planning the FY17 Budget.
The workers' compensation premium decrease (34%) is due to switching carriers to
the Special District Risk Management Authority (SDRMA) and becoming a member of
the Authority through a Joint Powers Agreement. This is a three-year commitment for
the District. The District experienced an increase in the X-Mod factor from 1.3 to 1.84
that is determined by the previous three-year loss runs. Joining the SDRMA places us
in a pool with other Special Districts to minimize the impact of a large increase in X-
Mod and allows us to earn premium discounts through improving our risk
management education and implementation of programs "designed to control losses
and positively impact the overall cost of workers' compensation coverage."
There is an additional Cyber coverage added to protect the District from expenses that
could potentially arise from Network and Information Security, Communications and
Media Liability, and Regulatory Defense Expenses. The coverage also includes Crisis
Management Event Expenses, Computer Fraud, Funds Transfer Fraud, and other
factors that may affect the District. This is a new coverage for FY16/17.
The proposed property, general liability, and workers' compensation premium cost is
$472,365, which is approximately 149/o decrease from the prior year's cost. It is in -line
with the budgeted insurance expense for the remainder of FY16 Budget and will be
taken into consideration when planning the FY17 Budget.
5. RECOMMENDATION
1) Award contracts presented in the InterWest Renewal Proposal for the property,
liability, and workers' compensation insurance for the period beginning June 1, 2016
and ending June 1, 2017.
2) Authorize the General Manager to execute contracts associated with the contracts
3) Adopt Resolution 2016-14 Approving the Form of and Authorizing the Execution of
a Sixth Amended and Restated Joint Powers Agreement and Authorizing Participation
in the Special District Risk Management Authority Workers' Compensation Program.
4) Adopt Resolution 2016-15 Authorizing Application to the Director of Industrial
Relations, State of California for a Certificate of Consent to Self -Insure Workers'
Compensation Liabilities.
qcz:� 4
Kim Harris Michael D. Holley
Human Resource /Risk Manager General Manager
Resolution No. 2016 = 15
A RESOLUTION AUTHORIZING APPLICATION TO THE DIRECTOR OF
INDUSTRIAL RELATIONS, STATE
CERTIFICATE OF CONSENT TO
COMPENSATION LIABILITIES
OF CALIFORNIA FOR A
SELF INSURE WORKERS'
WHEREAS, at a meeting of the Board of Directors of the Truckee Donner Public Utility District, a
Public Utility District organized and existing under the laws of the State of California, held on the
Fourth day of May, 2016, the following resolution was adopted.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TRUCKEE
DONNER PUBLIC UTILITY DISTRICT AS FOLLOWS:
That the President of the Board of Directors be and they hereby severally authorized and
empowered to make application to the Director of Industrial relations, State of California, for a
Certificate of Consent to Self -Insure workers' compensation liabilities on behalf of the Truckee
Donner Public Utility District and to execute any and all documents required for such application.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at
a meeting held within the District on May 4, 2016 by the following roll call vote:
AYES:
NOES:
ABSENT:
Directors:
None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Joseph Aguera, President
ATTEST:
Michael D. Holley, District Clerk
I, Michael Holley, the undersigned District Clerk and General Manager of the said Truckee
Donner Public Utility District a public utility district, hereby certify that I am the District Clerk and
General Manager of said public utility district, that the foregoing is a full, true and correct copy of
the resolution duly passed by the Board at the meeting of said Board held on the day and at the
place therein specified and that said resolution has never been revoked, rescinded, or set aside
and is now in full force and effect.
IN WITNESS WHEREOF: I HAVE SIGNED MY NAME AND AFFIXED THE SEAL OF THE
Truckee Donner Public Utility District THIS FOURTH DAY OF MAY, 2016.
Michael D. Holley, District Clerk/General Manager
Resolution No. 2016 = 14
A RESOLUTION OF THE BOARD OF DIRECTORS OF
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
APPROVING THE FORM OF AND AUTHORIZING THE
EXECUTION OF A SIXTH AMENDED AND RESTATED
JOINT POWERS AGREEMENT AND AUTHORIZING
PARTICIPATION IN THE SPECIAL DISTRICT RISK
MANAGEMENT AUTHORITY WORKERS' COMPENSATION
PROGRAM
WHEREAS, Truckee Donner Public Utility District, a special district duly organized and existing under and by
virtue of the laws of the State of California (the "Agency"), has determined that it is in the best interest and to
the advantage of the Agency to participate for at least three full years in the workers' compensation program
offered by the Special District Risk Management Authority (the "Authority"); and
WHEREAS, California Government Code Section 6500 et seq., provides that two or more public agencies
I ay by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, Special District Risk Management Authority was formed in 1986 in accordance with the
provisions of California Government Code 6500 et seq., for the purpose of providing its members with risk
financing and risk management programs; and
WHEREAS, California Government Code Section 990.4 provides that a local public entity may self -insure,
purchase insurance through an authorized carrier, or purchase insurance through a surplus lines broker, or
any combination of these; and
WHEREAS, participation in Special District Risk Management Authority programs requires the Agency to
execute and enter into a Sixth Amended and Restated Joint Powers Agreement (the "Amended and Restated
JPA Agreement"); which states the purpose and powers of the Authority; and
WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have
happened and to have been performed precedent to and in connection with the consummation of the
transactions authorized hereby do exist, have happened and have been performed in regular and due time,
form and manner as required by law, and the Agency is now duly authorized and empowered, pursuant to
each and every requirement of law, to consummate such transactions for the purpose, in the manner and
upon the terms herein provided.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER
PUBLIC UTILITY DISTRICT AS FOLLOWS:
Section 1. Findings, The District's Board of Directors hereby specifically finds and determines that the
actions authorized hereby relate to the public affairs of the District.
Section 2. Sixth Amended and Restated JPA Agreement, The Amended and Restated JPA Agreement,
proposed to be executed and entered into by and between the Agency and members of the Special District
Risk Management Authority, in the form presented at this meeting and on file with the District's Secretary, is
hereby approved. The Agency Board and/or Authorized Officers ("The Authorized Officers") are hereby
authorized and directed, for and in the name and on behalf of the District, to execute and deliver to the
Authority the Amended and Restated JPA Agreement in substantially said form, with such changes therein as
such officers may require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
Section 3. Program Participation. The District's Board of Directors approves participating for three full
program years in Special District Risk Management Authority Workers' Compensation Program.
Section 4. Other Actions. The Authorized Officers of the District are each hereby authorized and directed to
execute and deliver any and all documents which is necessary in order to consummate the transactions
authorized hereby and all such actions heretofore taken by such officers are hereby ratified, confirmed and
approved.
Section 5. Effective Date. This resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting
held within the District on May 4, 2016 by the following roll call vote:
AYES: Directors:
NOES: None
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Joseph Aguera, President
ATTEST:
Michael D. Holley, District Clerk