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HomeMy WebLinkAbout2005-07-12 - AGENDA REPORTS - RISK MGMT INS SDRMA (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: 16 CITY OF SANTA CLARITA AGENDA REPORT Darren Heindndez City Manager Approval: Item to be presented by: July 12, 2005 RESOLUTION AUTHORIZING THE CITY TO JOIN SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) Administrative Services RECOMMENDED ACTION City Council approve the resolution authorizing the City Manager or designee to execute documents required to join Special District Risk Management Authority for General Liability and Workers' Compensation coverage. BACKGROUND Staff from Administrative Services and Human Resources have met and compiled information on JPA risk pools to assess the options available to the City relative to general liability and Workers' Compensation insurance coverage. As staff researched the various risk pools, it was of vital importance to find a risk pool with the right fit for The City. The City of Santa Clarita contracts for many of its services, such as police and fire, and thus would be better served by joining a risk pool of similar members. JPA Risk pools offer many advantages to insurance coverage and risk management that traditional insurance coverage does not offer, such as policy review, employee training, and facility & risk assessments. Risk pools help lower the risk of loss amongst its members by spreading the potential losses amongst its members. Adv Adopted: 0 A summary of the three JPA's considered and a summary of their coverage and cost proposals is as follows: California Joint Powers Insurance Authority (CJPIA) CJPIA is a risk pool consisting of 33 cities that offers liability, property and worker's compensation insurance. CJPIA has been in existence since the mid 1970's. CJPIA offers services such as inspections, claims management, and trainings, which help lower claims against the City. The CJPIA works with the members to reduce the frequency and severity of claims. Through risk analysis and continuous education, the CJPIA helps its members identify exposures and prevent losses. Each CJPIA member is assigned a professional Risk Manager to serve its specific needs and to help the agency determine its risk management strategy. Pros • Comprehensive risk management program • Training seminars and classes • Deductible decreases from $400,000.00 per claim to $30,000.00 per occurrence Cons Use CJPIA attorneys. Cannot use Burke, Williams & Sorensen Relatively small number of members CJPIA_ Total Estimated Cost $1,906,499 General Liability SIR $ 30,000 Workers' Comp. SIR $ 50,000 Independent Cities Risk Management Authority (ICRMA) ICRMA currently has 29 member cities and offers liability, property and workers' compensation coverage. ICRMA has been operating since 1980. ICRMA's liability program provides coverage on an occurrence basis above the members chosen SIR. Several SIR limits are available. ICRMA offers property coverage through a joint purchase for all of its members. ICRMA sets organizational goals and objectives annually, intended to help each member increase risk management awareness and explore new coverage options and reduce losses. Pros • Offer several SIR levels • Develops safety and risk control programs • Rates are not profit driven • Claims and litigation management • Can use Burke, Williams & Sorensen for liability cases Cons • Relatively small number of members • 19 of 29 cities have their own police and/or fire departments; City would share in their liability • Santa Clarita would be in a pool with a higher risk factor ICRMA #1 ICRMA #2 Total Estimated Cost $1,334,563 $837,433 General Liability SIR $ 100,000 $500,000 Workers ComD. SIR $ 350,000 $500,000 Special District Risk Management Agency (SDRMA) SDRMA was established in 1986 and currently has a total of 670 members, 372 in the Property and Liability program and 298 in the Workers' Compensation program. SDRMA's membership is made up mostly of districts throughout the State of California. SDRMA offers liability, property, and workers' compensation coverage. SDRMA is the only risk pool that offered the City first dollar coverage on all claims, which means the City's SIR would be reduced from $400,000 to $0. SDRMA offered the City a total premium of $1,764,491, which would save the City approximately $1.2 million. Pros • On-line training programs • No deductible on workers' comp or liability claims • Premium reduction through credit incentive program • Can use BWS attorneys • On-site risk management assessment and loss control visits • Large number of members, most of which are small agencies • Shared liability is well distributed, rather than concentrated Cons • Headquartered in Northern California SDRMA #1 SDRMA #2 Total Estimated Cost $1,373,924 $1,764,491 General Liability SIR $ 500,000 $0 Workers Comp. SIR $ 50,000 $0 Recommendation: Based on the information above, staff recommends that we pursue SDRMA option #2. The estimated premium for general liability and workers' compensation would save the City approximately $1.2 million dollars the first year alone. This option is also preferred over the others because it offers the City a $0 SIR deductible on both general liability and workers' compensation claims. Additionally, SDRMA offers online training courses, as well as online workers' compensation reports. Staff met and interviewed with representatives from SDRMA on June 20, 2005. At that time, the SDRMA reps also demonstrated to staff their online reporting and training programs available to the City. Special District, Risk Management Authority (SDRMA) is a risk pool that offers many programs that will help the City minimize its current loss exposure, such as training and inspection programs. Currently, the City purchases general liability through stand-alone policies purchased through a broker. The City also purchases Workers' Compensation insurance from State Fund. The City would benefit greatly by combining the purchase of General Liability and Workers' Compensation coverage from SDRMA. SDRMA offers programs and services that will allow the City to lower its risk exposure, as well as better manage current claims. ALTERNATIVE ACTIONS Other action as determined by City Council. FISCAL IMPACT By purchasing General Liability and Workers' Compensation coverage with SDRMA, the City will save approximately $1.2 million dollars in premiums and other costs. ATTACHMENTS Resolution SDRMA Member list Estimated Costs Pool Details SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY A Property, Liability ono W orkera' Companssllon Program for Public Agencies 2004-2005 WORKERS' COMPENSATION PROGRAM MEMBER LISTING 1 Alameda County Resource Conservation District 2 Alameda County Water District 3 Alamo -Lafayette Cemetery District 4 Almonte Sanitary District 5 Alpaugh Joint Powers Authority 6 Alpine Springs County Water District 7 Alta Irrigation District 8 Alta Public Cemetery District 9 Altaville Cemetery District 10 Altaville-Melones FPD 11 Antelope Valley Mosquito and Vector Control Distri 12 Aromas Water District 13 Arvin Community Services District 14 Arvin -Edison Water Storage District 15 Association of Monterey Bay Area Governments 16 Auburn Public Cemetery District 17 Avila Beach Community Services District 18 Bay Area Water Supply & Conservation Agency 19 Bear Valley Community Services District 20 Beaumont Library District 21 Bel Marin Keys Community Services District 22 Bethel Island Municipal Improvement District 23 Big Bear Airport District 24 Big Bear Area Regional Wastewater Agency 25 Big River Community Services District 26 Bighom-Desert View Water Agency 27 Blanchard/Santa Paula Public Library District 28 Boron Community Services District 29 Broadmoor Police Protection District 30 Buena Park Library District 31 Burney Water District 32 Butte County Air Quality Management District 33 California Pines Community Services District 34 California Valley CSD 35 Cambria Community Services District 36 Capistrano Bay Community Services District 37 Castroville Water District 38 Cemetery District of the Redwoods 39 Central CA Tristeza Eradication Agency 40 Central California Irrigation District 41 Chino Valley Independent Fire District 42 City of California City 43 City of Palmdale 44 Clear Creek Community Services District 45 Coachella Valley Public Cemetery District 46 Coachella Valley Resource Conservation District 47 Coast Life Support District 48 Colusa County Resource Conservation District 49 Contra Costa RCD 50 Contra Costa Water District 51 Costa Mesa Sanitary District 52 Covelo Community Services District 53 Crestline Village Water District 64 Cuyama Community Services District 55 Del Norte County Libary District 56 Delano Mosquito Abatement District 57 Delta Vector Control Mosquito Abatement District 58 Dinuba Memorial District #713 59 Dixon Resource Conservation District 60 Donner Summit Public Utility District 61 East Kern Airport District 62 East Kern Cemetery District 63 East Valley Resource Conservation District 64 Eastern Sierra Community Services District 65 Ebbetts Pass Fire District 66 EI Dorado County Transit Authority 67 EI Dorado Hills Community Services District 68 EI Dorado LAFCO 69 Elsinore Water District 70 Exeter District Ambulance 71 FIRST 5 Santa Clara County 72 Feather River Air Quality Management District 73 Fieldbrook CSD 74 Foresthill Public Utility District 75 Fort Jones Cemetery District 76 Fowler Cemetery District 77 Fresno Irrigation District 78 Fresno Westside Mosquito Abatement District 79 Friant Water Authority 80 Garden Farms Community Water District 81 Georgetown Divide Recreation District 82 Gerber -Las Flores Community Services District 83 Golden Hills Community Services District 84 Great Basin Unified Air Pollution Control District 85 Greenfield County Water District 86 Groveland Community Services District 87 Gualala Community Services District 88 Gustine Drainage District 89 Hanford Cemetery District 90 Happy Camp CSD 91 Happy Camp Sanitary District 92 Heber Public Utility District 93 Henry Miller Reclamation District #2131 94 Heritage Ranch Community Services District 95 Hi -Desert Water District 96 Hidden Valley Lake CSD 97 Hilton Creek CSD 98 Hopland FPD 99 Hopland Public Utility District 100 Humboldt Bay Harbor, Recreation & Conservation 101 Humboldt County RCD 102 Humboldt Waste Management Authority 103 Idyllwild Fire Protection District 104 In Home Supportive Services Public Authority of Am 105 Indian Valley CSD 106 Indian Wells Valley Water District 107 Inland Valley Development Agency 108 Inverness PUD 109 Inyokem CSD 110 Irish Beach Water District 111 Jackson Valley Irrigation District 112 Jacumba Community Service District 113 James Irrigation District 114 Jamestown Sanitary District 115 Julian CSD 116 Julian Cuyamaca FPD 117 June Lake Public Utility District 118 Kensington Police Protection and CSD 119 Kern County Cemetery District No. 1 120 Kern River Valley Cemetery District 121 Kettleman City CSD 122 Kings River Conservation District 123 Kingsburg Cemetery District 124 LAFCO of Los Angeles County 125 LAFCO of San Bernardino County 126 LAFCO of San Luis Obispo 127 La Puente Valley County Water District 128 Lake Don Pedro CSD 129 Lake Oroville Area Public Utility District 130 Lake Shastina CSD 131 Lancaster Cemetery District 132 Lassen County Waterworks District No. 1 133 Laton Community Services District 134 Lava Beds/Butte Valley RCD 135 Leavitt Lake CSD 136 Lemoore Cemetery District 137 Linda County Water District 138 Linden County Water District 139 Lindmore Irrigation District 140 Lompico County Water District 141 Los Osos CSD 142 Lower San Joaquin Levee District 143 Lower Tule River Irrigation District 144 Madera Irrigation District 145 Mammoth Lakes Mosquito Abatement District 146 Manila CSD 147 Marin City CSD 148 Marinwood CSD 149 Mariposa County Resource Conservation District 150 McCloud Community Services District 151 McKinleyville CSD 152 Mendocino City CSD 153 Mendocino County RCD 154 Mendocino County Waterworks District No. 2 155 Mendocino Solid Waste Mgmt. Auth. 156 Mendocino Transit Authority 157 Millview County Water District 158 Mineral County Water District 159 Minter Field Airport District 160 Miranda CSD 161 Mission Resource Conservation District 162 Mojave Desert AQMD 163 Mojave Desert RCD 164 Monte Vista Water District 165 Monterey Bay Unified Air Pollution Control Distric 166 Monterey Peninsula Airport Distict 167 Monterey Peninsula Water Management District 168 Monterey Reg.Waste Mgmt. Dist. 169 Morongo Valley CSD 170 Moss Landing Harbor District 171 Mountain Meadows CSD 172 Murphy Sanitary District 173 Murrieta County Water District 174 Nevada County Resource Conservation District 175 Nipomo CSD 176 North Central FPD 177 North Coast County Water District 178 North Coast Unified AQMD 179 North County Cemetery District 180 North County Recreation Park District 181 North Humboldt Rec. & Park Dist. 182 North Tahoe PUD 183 North West Kern Resource Conservation District 184 North of the River Municipal Water District 185 Northern Sierra Air Quality Management District 186 Northstar CSD 187 Oak Grove Cemetery District 188 Olivenhain Municipal Water District 189 Orange Cove Irrigation District 190 Orosi Memorial District 191 Palo Verde Valley District Library 192 Palos Verdes Library District 193 Pixley Irrigation District 194 Placentia Library District 195 Plumes County LAFCO 196 Pomeredo Cemetery District 197 Port San Luis Harbor District 198 Potter Valley Irrigation District 199 Quincy Community Services District 200 RCD of Greater San Diego County 201 RCD of the Santa Monica Mountains 202 Rainbow Municipal Water District 203 Rancho Murieta CSD 204 Redway CSD 205 Redwood Coast Energy Authority 206 Resort Improvement District #1 207 Richardson Bay Sanitary District 208 Rim of the World Recreation & Park District 209 Rio Vista -Montezuma Cemetery District 210 Riverdale Memorial District 211 Riverdale Public Utility District 212 Riverside County Citrus Pest Control District #2 213 Riverside -Corona RCD 214 Rockville Cemetery District 215 Rosamond CSD 216 Ruth Lake CSD 217 Sacramento Metropolitan AQMD 218 Saddle Creek Community Services District 219 Salton CSD 220 San Andreas Fire Protection District 221 San Francisquito Creek JPA 222 San Lorenzo Valley Water District 223 San Mateo County RCD 224 Sanger -Del Rey Cemetery District 225 Santa Clara County Open Space Authority 226 Santa Cruz Consolidated ECC 227 Santa Cruz Port District 228 Santa Maria Public Airport District 229 Santa Nella County Water District 230 Santa Rosa CSD 231 Santa Ynez Community Services District 232 Santa Ynez River Water Conservation District 233 Saratoga Cemetery District 234 Selma Cemetery District 235 Sewerage Commission - Oroville Region 236 Shasta CSD 237 Shasta Valley RCD 238 Silicon Valley Animal Control Authority 239 Siskiyou Resource Conservation District 240 Skyline County Water District 241 Solano County Mosquito Abatement District 242 Solano Resource Conservation District 243 Sotoyome RCD 244 Southern Sonoma County RCD 245 Special District Risk Management Authority 246 Spreckels Memorial District 247 Squaw Valley Public Service District 248 Stallion Springs CSD 249 Stratford PUD 250 Suisun Fairfield Cemetery District 251 Summerland Sanitary District 252 Summit Cemetery District 253 Susanville Library District 254 Sutter Community Services District 255 Sweetwater Springs Water District 256 Tahoe RCD 257 Talmont Resort Improvement District 258 Tamalpais CSD 259 Tehachapi Resource Conservation District 260 Tehama County RCD 261 Templeton CSD 262 Tennant Community Services District 263 Thunderbird County Water District 264 Tomales Village CSD 265 Town of Discovery Bay CSD 266 Tranquility Irrigation District 267 Transportation Agency of Monterey County 268 Trinity County Resource Conservation District 269 Trinity County Waterworks #1 270 Trinity PUD 271 Truckee Tahoe Airport District 272 Tulare Lake Drainage District 273 Tulare Mosquito Abatement District 274 Tuolumne Park & Recreation District 275 Twain Harte CSD 276 Twentynine Palms Water District 277 United Water Conservation District 278 Upper Salinas -Las Tablas RCD 279 Vacaville -Elmira Cemetery District 280 Valley Center Parks and Recreation District 281 Valley Springs PUD 282 Victor Valley Water District 283 Washington Colony Cemetery District 284 Weaverville D.C. Park & Recreation District 285 Weaverville Fire District 286 Weaverville Sanitary District 287 West Kern Water District 288 West Lake RCD 289 West Patton Village CSD 290 West Side Mosquito Vector Control District 291 West Stanislaus Irrigation District 292 West Valley County Water District 293 West Valley Water District 294 Western Shasta RCD 295 Westhaven CSD 296 White Mountain Fire Protection District 297 Whitehawk Ranch CSD 298 Willow County Water District 299 Willow Creek Community Services District 300 Woodlake Fire Protection District 301 Woodlake Public Cemetery District 302 Yolo County Resource Conservation District 303 Yuba County Resource Conservation District Cl) In1 ) CIL g § _co } 1 \- § - _ 4a _ 01, - _ i § e k | \ | | | | |CD |$ a | _ 6% 6%/ 40_ _ _ am \\ k « In1 ) CIL g § _co } 1 \- § - _ 4a _ 01, - _ i § e k co cm In1 ) CIL g § _co \ co _ _ _ 4a _ _ _ 7 i co I Ci co a _ 6% 6%/ 40_ _ _ _\ C J &_ - kK§ k \Q%_ Ik ® 2 » c » %| 1! re ! 2 . 2 c k :3.2 � ��k k ƒƒ d § k 2 !� !� © ■ 0 - J ! $ 2 Board of NA Elected from member Directors agencies S:\ Finance \ Krystal \ insurance \ Pool Comps. 2005. Doc Each member is allowed Elected from member to appoint a delegate agencies, consisting of 9 districts California Broker JPIA ICRMA SDRMA Claims Claims are handled by Claims are handled by External TPA handles Claims are processed, managed and adjusted Mngt. Program Carl Warren, TPA Carl Warren, TPA claims in-house Coverage Includes: Coverage Includes: Coverage Includes: Coverage Includes: Property * General / Auto * General / Auto * General / Auto * General / Auto * Errors & Omissions * Errors & Omissions * Errors & Omissions * Errors & Omissions, Liand Package * Elected Officials * Elected Officials ' Elected Officials * Elected Officials Programs * Employment Benefits * Employment Benefits * Employment Benefits * Employment Benefits * Occupational Safety & Health Programs, Workers Limited training through Extensive Training Training workshops held * Safety & Claims Policy Comp. state fund Catalog monthly Manuals * Comprehensive Safety Report and Analysis Online Workers NA NA N/A Web-based Comp. E-safety training Reports Length of Contract Year to Year Contract 3 years 3 years 3 years Brown, Winfield and Attorney BWS JPIA Canzoned Possibility of using BWS appointed Attorneys appointed Attorneys BWS * 92 cities * * Prop. & Liability 372 Members N/A 7 JPA's 29 Cities * * 4 Special Districts Worker's Comp. 298 Credit Incentive up to Credit NA Based on Claim history NA 17% of the property Incentive for previous years premium can be earned Board of NA Elected from member Directors agencies S:\ Finance \ Krystal \ insurance \ Pool Comps. 2005. Doc Each member is allowed Elected from member to appoint a delegate agencies, consisting of 9 districts