HomeMy WebLinkAbout08-15-2017 Item 13 - Claim Settlement Delegation to California Joint Powers Insurance Authority (CJPIA) For Workers' Compensation Claims Incurred Prior to Membership Meeting Date: 8/15/2017
FROM: Monica Irons, Director of Human Resources
Prepared By: Greg Zocher, Human Resources Manager
SUBJECT: CLAIM SETTLEMENT DELEGATION TO CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY (CJPIA) FOR WORKERS’ COMPENSATION
CLAIMS INCURRED PRIOR TO MEMBERSHIP
RECOMMENDATION
Adopt a resolution delegating claim settlement authority to CJPIA for workers’ compensation
claims incurred prior to membership (Attachment A).
DISCUSSION
The City of San Luis Obispo became a member of the CJPIA in 2004 for participation in the
workers’ compensation program. Prior to joining the CJPIA, the City had been a member of the
Central Coast Cities Self Insurance Fund (CCCSIF). CJPIA agreed to assume administration of
the City’s workers’ compensation claims that occurred during the time the City was a member of
CCCSIF; however, the City never delegated claim settlement authority to CJPIA for these older
workers’ compensation “tail” claims. Prior to becoming a member in CJPIA, City staff had
claim settlement authority for claims under $20,000. Any claim over this amount required City
Council approval. There are currently 17 open claims that occurred prior to the City becoming a
member of CJPIA.
The City has delegated authority to administratively process claims and through our existing
Memorandum of Coverage have delegated settlement authority to CJPIA. This delegation has
reduced staff time, and eliminated redundancies. For the past eleven years, staff has found the
delegation of claim settlement to work very well – CJPIA communicates regularly regarding
claim status, solicits input and is respectful of the City’s input on claims. Staff recommends
Council adopt a resolution (Attachment A) to delegate claims settlement authority to CJPIA for
the workers’ compensation claims incurred prior becoming a member of CJPIA.
FISCAL IMPACT
There is no additional cost associated with delegating settlement authority to CJPIA.
ALTERNATIVE
The City Council could decide to not adopt the attached resolution. This alternative is not
recommended, since CJPIA has claim settlement authority for all other claims in the workers’
compensation and liability programs.
Attachments:
a - Resolution to Delegate Claim Settlement to CJPIA
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R ______
RESOLUTION NO. (2017 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DELEGATING CLAIM SETTLEMENT
AUTHORITY TO THE CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY FOR WORKERS’ COMPENSATION CLAIMS INCURRED
PRIOR TO MEMBERSHIP
WHEREAS, the City of San Luis Obispo became a member of the California Joint Powers
Insurance Authority (CJPIA) in 2004 for participation in the workers’ compensation primary
insurance program; and
WHEREAS, the City of San Luis Obispo’s current Memorandum of Coverage delegates
claim settlement authority to CJPIA for all claims incurred after the City of San Luis Obispo
became a member; and
WHEREAS, the CJPIA has agreed to assume the responsibility of claim settlement
authority for claims incurred prior to the City of San Luis Obispo’s membership;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council authorizes delegation of claim settlement authority to the
CJPIA for workers’ compensation claims incurred prior to membership.
SECTION 2. This Resolution shall become effective immediately upon its adoption.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
Upon motion of ______________________, seconded by ________________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 15th day of August, 2017.
___________________________________
Mayor Heidi Harmon
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Resolution No. _____ (2017 Series) Page 2
R ______
ATTEST:
__________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
__________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Carrie Gallagher
City Clerk
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