Report No: Meeting Date:
17-199a
December 13, 2017
Alameda-ContraCostaTransit District
STAFF TO: FROM: SUBJECT
RE PO RT
ACTransit Board of Directors Denise Standridge, GeneralCounsel ExcessWorkers' Compensation Insurance Premium
ACTIONITEM BE£QMMENDED ACTION(S)
Authorize the General Manager to pay the balance of the ExcessWorkers' Compensation InsurancePolicypremium for fiscalyear 2017-18. BACKGROUND/RATIONALE
On June 28, 2017, the District renewed its ExcessWorkers Compensation policy via SR 17-199. Everyyear the District pays the deposit premium for Workers Compensation Insurance at the time of renewal. The deposit premium is based on projected fiscalyear payrollfigures. At the end of each fiscalyear, the District provides the Excess Workers' Compensation(EWC) insurer
with the final payrollfor the fiscalyear. At that time, the insurerdoesan audit to verify whether the District paid the correct amount for coverage. Once the audit is completed, the Districteither paysthe differenceof the premium or receivesa refund for overpaymentof the premium. Pleasesee the historicalaudit figures and payments provided as attachment I. This year the District has received an invoice in the amount of $69,059, an 18.29% increase, to complete payment of the premium. Becausethe increase was over the 15% threshold, staff had to bringthis item back to the Board. This increase is based on the increase in the fiscalyear
payroll,which was a result of the addition of between 130 and 150 new employeesand employeewage increasesaveraging3.25%. The payroll estimate provided was the same amount provided the previous year, which resulted in a lower deposit premium. Corrective action has been taken to ensure that more accurate payroll estimates are provided. Overall, the District would have paid the same amount, but the initial deposit premium would have been higher. BUDGETARY/FISCAL IMPACT $69,059.00 ADVANTAGES/DISADVANTAGES
The advantage is that paying the difference in premium will ensure that the District will continue to maintain ExcessWorkers' Compensation insurance. Thereare no disadvantagesto payingthe remaining premium
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Report No. 17-199a Page2 of 2 ALTERNATIVES ANALYSIS:
None ATTACHMENTS:
1. Historical ExcessWorkers Compensation Premiums PRIOR RELEVANT BOARD ACTION/POLICIES
SR].7-199 - District Insurance Renewals Approved by:
Michael A. Hursh, General Manager
Reviewed by:
Denise Standridge, General Counsel ClaudiaAllen, ChiefFinancialOfficer Jean-Paul Popoff, Liability and Claims Administrator
Prepared by:
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Att. I to SR17-199a
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