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HomeMy WebLinkAbout6/19/2002 - STAFF REPORTS (26) Date: June 19, 2002 To: City Council From: Director of Human Resources PURCHASE OF FIRST DOLLAR WORKERS' COMPENSATION INSURANCE FOR POLICE AND FIRE DEPARTMENT VOLUNTEERS RECOMMENDATION: It is recommended that City Council adopt a Resolution rescinding Resolution 17549; and declaring Police and Fire Reserves and Citizens of Patrol to be deemed employees of the City of Palm Springs for the limited purpose of providing them with Workers' Compensation coverage while performing volunteer services, training and participation in community events when requested by the City as a part of their reserve volunteer status; and approving the purchase of first dollar Workers' Compensation Insurance coverage through State Compensation Insurance Fund for Police and Fire Department volunteers effective July 1, 2002. SUMMARY: The Labor Code specifically defines certain work situations including Volunteer Police and Fire Reserves, and any person assisting a Police Officer, that are subject to the workers' compensation law; and any public agency may elect to cover these volunteers for workers' compensation benefits. The proposed quotation is for first dollar Workers' Compensation Insurance coverage for Police and Fire Department volunteers through State Compensation Insurance Fund at the cost of $418.23 per volunteer for an estimated cost of $14,435. Buying this policy eliminates a potential risk to the City of up to$500,000 per occurrence. BACKGROUND: As a general rule, volunteers are excluded from workers' compensation coverage as an employee; however,there are many exceptions. There are a number of situations whereby the activity is deemed to be "employment subject to workers' compensation law." These include Volunteer Police Reserves while on active duty; any person assisting a Police Officer, at the request of such an officer in active law enforcement (Citizens on Patrol); and Volunteer Fire Reserves. Per Labor Code Section 3363.5, Public Agency volunteers may now be covered under workers' compensation upon the adoption of a Resolution by the City Council. A number of cities and public entities have chosen to pass a Resolution as required by Labor Code Section 3363.5 covering all volunteers. Because of the increase in the City's self-insured retention limit to $500,000 per claim, we would recommend purchasing workers' compensation insurance coverage for these volunteers instead of self-insuring them under the Citys self-insured program. J?ITA We believe the premium of $418.23 per volunteer is a reasonable premium and would allow the City to provide statutory workers' compensation benefits to Us Police and Fire Department Volunteers, while at the same time attaching an actual cost to these volunteer programs. © r SUSAN E. MILLS Director of Human Resources APPROVED:-- City Manager ATTACHMENTS: 1. Quotation and Marketing Summary 2. Resolution REVIEWED BY DK OF FINANCE Funds are budgeted and available in account#540-5903-43880 Special Programs—WORKERS COMPENSATION. as�-Z State Compensation Fund Workers' Compensation and Employer's Liability $1,000,000 Bodily Injury by Accident (Each Accident) $1,000,000 Bodily Injury by Disease (Policy Limit) $1,000,000 Bodily Injury by Disease (Each Employee) Workers' Compensation Classifications: Code Description: Number Rate Premium 7722 Policemen Volunteers 40 $418.23 $16,729 $0 $0 $0 $0 $16,729 Experience Modification: 2001 .85116 $14,239 Modified Premium: 1.00 $14,239 Premium Discount 1.00 $14,239 Expense Constant 1.00 $14,239 Estimated Annual Premium $14,239 Calif WCA Surcharge 1.001389 $14,259 Calif Fraud Surcharge 1.0023 $14,292 CIGA Surcharge 1.01 $14,435 Broker Fee & Exp Constant 1 $14,435 Interim Billing 7722 Policemen Volunteers 40 $360.87 $14,434.72 0 0 0 $0.00 $0.00 0 0 0 $0.00 $0.00 0 0 0 $0.00 $0.00 Total Interim Premium $14,435 as#43 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESCINDING RESOLUTION 17549; AND DECLARING VOLUNTEERS IN THE POLICE RESERVES, CITIZENS ON PATROL, AND FIRE RESERVES TO BE EMPLOYEES OF THE CITY OF PALM SPRINGS FOR THE PURPOSES OF WORKERS COMPENSATION ONLY, AND APPROVES THE PURCHASE OF WORKERS' COMPENSATION COVERAGE THROUGH STATE COMPENSATION INSURANCE FUND, WHEREAS Resolution No. 17549, adopted on June 19"', 1991, provided that in the event volunteer reserve personnel of the City of Palm Springs are not covered for the purposes of Workers' Compensation Insurance under the California Emergency Services Act, said reserve shall be deemed to be employees of the City of Palm Springs for the limited purpose of providing them with Workers' Compensation coverage while performing disaster services, training and participation in community events, when requested by the City as a part of their reserve volunteer status, to provide such services. WHEREAS for the purposes of this Resolution, volunteer reserve personnel are those volunteers who have been officially accepted for membership and who are registered in the Reserve Police, Fire, Mounted Police and Aero Squadron groups of the City. WHEREAS the City Manager or his designated representative shall have the authority to determine and approve when it is in the best interest of the City to have reserve volunteers participate in community events. WHEREAS the City of Palm Springs contracted with Davis & Graeber Insurance Services, Inc., a California corporation, on October 1, 2001, to perform services as the City's Insurance Broker of Record to solicit insurance proposals from qualified carriers, and WHEREAS the City of Palm Springs received insurance quotations from Davis & Graeber on workers'compensation coverage for Police and Fire Reserves, and Citizens on Patrol. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Palm Springs, as follows: Section 1. That Resolution No. 17549 is hereby rescinded. Section 2. That for the purposes of this Resolution, volunteer reserve personnel are those volunteers who have been officially accepted for membership and who are registered in the Reserve Police, Fire, Mounted Police and Aero Squadron, Citizens on Patrol, and Fire Reserve groups of the City. Said volunteers shall be deemed to be employees of the City of Palm Springs for the limited purpose of providing them with Workers' Compensation coverage while performing volunteer services, training and participating in community events, when requested by the City as a part of their reserve volunteer status,to provide such services. Section 3. That the City Manager or his designated representative shall have the authority to determine and approve when it is in the best interest of the City to have reserve volunteers, as designated above, participate in community events. Section 4. That the City Council of the City of Palm Springs hereby approves the purchase of workers'compensation insurance coverage for these volunteers, as designated above, through State Compensation Insurance Fund effective July 1,2002. 0� ADOPTED this day of June,2002. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By CITY CLERK CITY MANAGER REVIEWED&APPROVED: 01.4"6 7.