HomeMy WebLinkAboutMinutes - Minutes - Risk Management and Worker's Compensation Trust Board - Meeting Date: 5/15/2019 (3)MINUTES
WORKERS' COMPENSATION TRUST FUND BOARD
CITY HALL
HUMAN RESOURCES TRAINING ROOM
5850 W. GLENDALE AVE.
GLENDALE, ARIZONA 85301
MAY 15, 2019
11:17 A.M.
1. CALL TO ORDER
Chair Gary Deardorff called the meeting to order at 11:17 AM.
2. ROLL CALL
Present: Gary Deadorff, Chair
Yvonne Knaack, Vice Chair
Ray Malnar, Councilmember
Raymond Johnson, Board Member
3. CITIZEN COMMENTS
No citizens were present.
4. APPROVAL OF THE MINUTES
a. Workers' Compensation Trust Fund Board Minutes of April 10, 2019.
Motioned by Councilmember Ray Malnar, seconded by Vice Chair Yvonne Knaack to
approve the April 10, 2019 minutes as written.
AYE: Chair Gary Deadorff
Vice Chair Yvonne Knaack
Councilmember Ray Malnar
Board Member Raymond Johnson
Passed
5. AUTHORIZATION TO RENEW FISCAL YEAR 2019/2020 WORKERS' COMPENSATION
INSURANCE/EXCESS INSURANCE PROGRAM
City of Glendale Ordinance, Chapter 2, Administration, Article 5. Financial Affairs, Division 6.
Workers' Compensation Trust Fund, Section 2-219 Insurance provides that "The city risk
manager, acting for the city manager, is authorized to enter into, on behalf of the city, any
appropriate commercial insurance, or alternative risk financing to be in the best interests of the
city".
We have been working with our broker, Alliant Insurance Services on the renewal of the excess
workers' compensation program. Alliant has been placing insurance for cities for over 26 years.
Their insurance placements include all lines of coverage placed through a proprietary group
purchase program for public entities across the United States. Placement is underwritten and
priced on a group basis without sharing the risks of the entire group.
Alliant obtained a quote from the incumbent carrier, Safety National for statutory excess workers'
compensation coverage with an $800,000 self-insured retention and employer's liability with
limits up to $2,000,000. Payroll is estimated at $139,675,486, a 2.5% increase from expiring.
Safety National is asking us to consider increasing our self-insured retention to $1,000,000 as
they can't continue to insurance this program at an $800,000 SIR. We are waiting to see what
the premium savings are for increasing the SIR. Safety National will continue for this FY with a
$800,000 self-insured retention but advising that they won't be able to do so next year. Safety
National is including $10,000 to be used for loss control services. Total not to exceed premium
with the $800,000 SIR is $298,906 versus $261,367 from last FY. Once we receive the quote
with the $1,000,000 SIR we will do a cost benefit analysis to determine which proposal is in the
best interest of the City.
Alliant went out to the market to six carriers. Four declined to quote, US Specialty provided a
quote that is greater cost than our current premium with annually increasing SIRs. A quote from
CSAC-EIA is pending. Please see the attached WC Marketing Report. Staff is recommending
approval of Safety National's not to exceed premium for $298,906 with a $800,000 SIR.
The premiums are paid from the Workers' Compensation Trust Fund. The amount being
recommended is included in the budget that was proposed to City Council on April 30, 2019.
Motioned by Councilmember Ray Malnar, seconded by Board Member Raymond Johnson to
recommend City Council approve Fiscal Year 2019/2020 Workers' Compensation Premium
not to exceed $298,906.
AYE: Chair Gary Deadorff
Vice Chair Yvonne Knaack
Councilmember Ray Malnar
Board Member Raymond Johnson
Passed
6. NEXT MEETING
The next regular meeting of the Workers' Compensation Trust Fund Board will be held Mid to
End September, 2019, in the Human Resources Training Room of City Hall, located at 5850 W.
Glendale Ave, Glendale, Arizona, 85301.
7. ADJOURNMENT
Motioned by Councilmember Ray Malnar, seconded by Board Member Raymond Johnson to
adjourn the meeting at 11:28 am.
AYE: Chair Gary Deadorff
Vice Chair Yvonne Knaack
Councilmember Ray Malnar
Board Member Raymond Johnson
Passed
The Workers' Compensation Trust Fund Board meeting minutes of May 15, 2019 were submitted and
approved this 13 day of November, 2019.
/s/Dianne Shoemake
Dianne Shoemake
Recording Secretary