HomeMy WebLinkAbout06-21-2016 Item 12, IronsCouncil Memorandum
DATE: June 20, 2016
TO: City Council
FROM: Monica Irons, Director of Human Resources
VIA: Katie Lichtig, City Manager
PREPARED BY: Greg Zocher, Human Resources Manager
SUBJECT: Correction to Consent Item 12 — CJPIA Excess Insurance Program
ENC: Attachment 1 — Revised Resolution
The purpose of this memorandum is to provide a revised Resolution that additionally authorizes
the City Manager to execute the agreement with Carl Warren & Company for third party
administration services for the City's liability program, any other documents necessary to
participate in the Excess Insurance Program, and for the City Manager to act as the City's
"Authorized Representative" for compliance with "Medicare, Medicaid, SCHIP Extension Act
2007" Section 111, entitled "Medicare Secondary Payer (MSP) Mandatory Reporting".
Medicare seeks reimbursement if a patient has any other form of payment available such as
health insurance, workers' compensation insurance or a liability settlement.
Under the primary insurance program, CJPIA acted as the "Authorized Representative" for all
members in the insurance pool with Carl Warren & Company managing the reporting
requirements of this program. Under the Excess Insurance Program Carl Warren & Company
will continue to manage the Medicare reporting requirements, however the City is required to act
as the responsible reporting entity and therefore name the City Manager as an "Authorized
Representative".
RESOLUTION NO. (2016 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING EXECUTION OF AGREEMENT
FOR PARTICIPATION IN THE CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY'S EXCESS INSURANCE PROGRAM
WHEREAS, the City of San Luis Obispo became a member of the California Joint Powers
Insurance Authority (CJPIA) in 2003 for participation in the liability primary insurance program;
and
WHEREAS, the CJPIA has developed a separate Excess Insurance Program (EIP) wherein
members may select a Self -Insured Retention (SIR) level which best fits claim experience; and
WHEREAS, the City of San Luis Obispo's claim experience for the past eleven years
indicates moving to the EIP with an SIR of $500,000 could potentially reduce insurance costs
when compared to remaining in the primary insurance program; and
WHEREAS, the City of San Luis Obispo's current Memorandum of Coverage delegates
claim settlement authority to CJPIA and the EIP allows an agency to continue to delegate claim
settlement and the City desires to do so;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo
as follows:
SECTION 1. The Council authorizes the City Manager to execute a Memorandum of
Coverage with CJPIA for participation in the liability EIP with an SIR of $500,000 and authorizes
continued delegation of claim settlement authority to the CJP1A. Authorize the City Maiiiw' r to
execute an agreemesit witli Carl Warren & Company in a forrn subject to the approval of the City
Attorney for third party administration services for liability insurance program, and take any
other related actions required for participation in the liability EIP, and for the City Manager to act
as the City's "Autliorized Representative" for compliance with "Medicare, Medicaid, SCHIP
Extension Act 2007" Section 111.
SECTION 2. The Director of Finance shall adjust the appropriate accounts to ensure claim
settlement amounts within the SIR are available.
Upon motion of
and on the following roll call vote:
AYES:
NOES:
ABSENT:
,,seconded by
The foregoing resolution was adopted this 21St day of June, 2016.
Mayor Jan Marx
ATTEST:
Lee Price, MMC
Interim 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
Lee Price, MMC
Interim City Clerk