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THE CITY OF 2 pL EAS$ TON® CITY COUNCIL AGENDA REPORT July 20, 2010 Administrative Services TITLE: ADOPT RESOLUTION TO AUTHORIZE THE CITY TO PARTICIPATE IN THE LOCAL AGENCY WORKERS COMPENSATION EXCESS JOINT POWERS AUTHORITY TO PROVIDE EXCESS WORKERS COMPENSATION COVERAGE SUMMARY Pleasanton, along with 16 other public entities in the Bay Area, are members of a joint powers authority called the Bay Cities Joint Powers Insurance Authority (Bay Cities). Bay Cities provides a variety of "pooled" programs to cover claims and losses (above a member entity's self retained limit) and the City participates in most of them, such as liability, employment practices and property damage. Bay Cities also offers a workers compensation program and members of that program "pool" their claims above each member's self retained limit. Above that amount, claims are paid by a separate joint powers authority called the Local Agency Workers Compensation Excess Joint Powers Authority (LAWCX). The City has participated in the Bay Cities workers compensation program so that it could obtain excess workers compensation coverage through LAWCX but has not utilized administrative and other services Bay Cities provides, even though the City is charged for such services. To participate more fully in the Bay Cities workers compensation program would duplicate programs the City already provides. Also, there will be a substantial cost savings for the City to participate in LAWCX directly as a member of LAWCX, rather than continuing to participate in LAWCX through Bay Cities. Staff recommends adopting a resolution authorizing the City to participate in LAWCX as a regular member and authorizing the City Manager to sign various agreements to implement the City's participation. RECOMMENDATION Adopt resolution authorizing participation in the Local Agency Workers' Compensation Excess Joint Powers Authority. FINANCIAL STATEMENT The LAWCX premium for FY 10/11 is estimated at $113,524; of that amount $41,785 is attributable to the fire department for which the City of Livermore will pay roughly half. In FY 09/10, the premium was $203,500; of that amount, $59,125 was attributable to fire.