HomeMy WebLinkAbout10 Workers Comp InsuranceCONSENT
To:
From:
Date:
Subject:
Board of Directors
Kim Harris
June 06, 2018
Consideration to Approve Workers' Compensation Insurance
Renewal
1. WHY THIS MATTER IS BEFORE THE BOARD
District's workers' compensation insurance contract expires July 1, 2018 and Board
authorization 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 that will
end in July, 2019,
3. NEW INFORMATION
This renewal will be year three of the three-year commitment with SDRMA. The
District has participated in the safety programs and education offered by the California
Special Districts Association (CSDA). Membership in this group is required for
participation in the workers' compensation program.
The District received an 11 %discount ((ZOO ,476) on the cost of the 2018-19 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Since the District's participation in the SDRMA program, the X-Mod factor is no longer
applicable to the workers' compensation insurance premium, but it is a good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 continued to experience a decrease in the X-Mod factor. In 2016, 2017, and
2018 it progressively decreased from 1.81 to 1.76 to 1.69, respectively and is
determined by the previous three-year loss runs. This decrease is evidence of the
District's commitment to safety and staff continues to focus on employee work safety.
The total cost of insurance is based on the amount of payroll paid during the plan
period. The 2018-19 SDRMA Workers' Compensation Insurance renewal is $238,413.
4. FISCAL IMPACT
Sufficient funds exist in the Board approved FY18-19 budgets for the workers'
compensation premium expense.
5. RECOMMENDATION
Authorize the General Manager to approve the workers' compensation insurance
invoice to SDRMA for Program Year 2018-2019 for a total amount not to exceed
$23814130
Kim Harris Michael D. Holley
Human Resource / Risk Director General Manager