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MEETING ACTION MINUTES
FINANCE COMMITTEE
CANYON'S CONFERENCE ROOM
41000 MAIN STREET
TEMECULA, CALIFORNIA
TUESDAY, May 13, 2014
4:00 PM
CALL TO ORDER: 4:05 P.M.
ROLL CALL: Council Member Mike Naggar, Council Member Chuck Washington
• Greg Butler, Assistant City Manager
• Roberto Cardenas, Fiscal Services Manager
• Mike Bush, Brown & Brown Insurance Services of California, Inc.
• Aaron Claverie, The Press Enterprise
• Shirley Robinson, Administrative Assistant
PUBLIC COMMENTS
None
COMMITTEE BUSINESS
Incorporating a Self- Insured Retention (SIR) into the City's Workers Compensation
Insurance Policy.
• A discussion was held regarding the incorporation of a $500,000 Self- Insured
Retention (SIR) into the City's Workers' Compensation (WC) insurance
policy, rather than the current first dollar of loss approach. More specifically,
rather than the City's insurance carrier covering the costs of employee related
work injuries, the City would cover the expenses (self- insured) for the first
$500,000 of each occurrence, with the insurance policy covering costs in
excess of $500,000 resulting in potential savings of $222,896 per fiscal year.
The following was unanimously agreed upon and approved for implementation:
1. Approval of the implementation of an SIR
2. Contracting with a Third Party Administrator (TPA) to manage the City's
Workers' Compensation claims under an SIR policy
3. Setting a reserve target equal to the SIR amount of $500,000 to be
achieved through the cost savings realized by the implementation of the
self- insured policy
4. Approval of a City Council resolution authorizing application to the
Director of Industrial Relations, State of California, for a Certificate of
Consent to Self Insure Workers' Compensation Liabilities
ADJOURNMENT: The meeting was officially adjourned at 4:27 p.m.
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Date Jennife nnessy
Finance Director