HomeMy WebLinkAbout7 Workers' Compensation Insurancer,
CONSENT
To: Board of Directors
From: Kim Harris
Date: June 07, 2017
Subject: Consideration of a Contract for Workers' Compensation Insurance
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for procurements in excess of $15,000.
2. HISTORY
The District moved its workers' compensation insurance coverage to Special Districts
Risk Management Authority (SDRMA) in June 2016. The annual contract runs on a
July 1 renewal schedule and the District committed to a three-year contract.
3. NEW INFORMATION
FY17-FY18 will be year two of the three-year commitment with SDRMA. The District
has participated in the safety programs and education offered by the CA Special
Districts Association (CSDA). Membership
'
the workerscompensation program.
in this group is required for participation in
The District received a 15% discount ($35,615) on the cost of the 2017-18 plan year
insurance cost for employee attendance at SDRMA/CSDA sponsored trainings and
conferences. The trainings are timely, relevant and provide a great opportunity to
learn about topics specific to special districts such as safety, labor laws and
governmental policies.
Since the District's participation in the SDRMA program, the X-Mod factor is no longer
applicable to the workers' compensation insurance premium, but it is a good indication
of how the District is doing with its on-the-job injuries and costs associated with them.
Based on the analysis provided by IntraWest Insurance Services, the District
experienced a decrease in the X-Mod factor from 1.84 to 1.76 that is determined by
the previous three-year loss runs. We continue to address employee work safety to
address a high X-Mod factor we have experienced.
SDRMA's workers' compensation base rates did not change from last year's renewal.
The total cost of insurance is based on the amount of payroll paid during the plan
period.
FY17-FY18 SDRMA Workers' Compensation Insurance renewal quote based on
reported payroll is $201,743.
4. FISCAL IMPACT
The proposed workers' compensation premium cost is $201,743,
payroll without a change in prior year's base rates. It is in -line
insurance expense for the remainder of FY17. Budget and
consideration when planning the FY18 & FY19 budget(s),
which
is based on
with the budgeted
will be taken into
5. RECOMMENDATION
Authorize the General Manager to approve the workers' compensation insurance for
July 2017 through June 2018.
Kim Harris Michael D. Holley
Human Resource / Risk Manager General Manager