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HomeMy WebLinkAboutResolution - 2020-R0301 - Workers Compensation CoverageResolution No. 2020-R0301 Item No. 7.19 September 8, 2020 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, workers' compensation coverage from the Texas Municipal League Intergovernmental Risk Pool, for a total amount not to exceed $1,572,363.75; and THAT the City Manager may execute any routine documents and forms associated with said coverage. Passed by the City Council this September 8, 2020 11 DANIEL M. POPE, MAYOR A EST:A )4� P I'VV, Reb cca Garza, City Se etary APPROVED AS TO CONTENT: 2:�L ' 1v� D. Blu Kostelich, Chief Financial Officer APPROVED AS TO FORM: Jef se , Deputy City Attorney RES.Risk MgmWunicipal League Risk Pool Sepiem6e, 2, 2020 Workers' Compensation Insurance Company: Texas Municipal League Intergovernmental Risk Pool Policy Term: 10/1/2020 to 10/1/2021 Coverage: Part One —Workers' Compensation agrees to paythe benefits required under the applicable State's Workers' Compensation Law, PartTwo Employers Liability for work -related injuries ordisease other than that which is imposed by a state Workers' Compensation Law. Part Three — Other States in which you have no exposure on the policy inception date, but in which you may have a temporary or future worksite or exposure in during the policy term. If listed, statutory benefits will apply as if the state were listed in Part One; with the exception of excluded states, North Dakota, Ohio, Washington and Wyoming. Coverage Description Employers Liability - Each Accident $1,000,000 Employers Liability - Disease (Policy Limit) $1,000,000 Employers Liability- Disease (Each Employee) $1,000,000 Experience Mod Statutory Limits Apply Deductible 0.48 Yes $25,000 Coverage is not automatic in all states. Please notify us immediately if you begin operations in another state. • Total Expected Cost$1,572,363.75 • Total Premium $807,514 • 2% Paid in Full Discount: ($16,150.25) • Premium Including Discount: $791,363.72 • Average Out of Pocket at $25,000 deductible is: $781,000 This requires $100,000 deposit in addition to the $807,514 premium. The deposit will be credited as deductible is applied. Total Due at Binding: $891,363.72 Workers' Compensation Schedule of Exposures — 2.5% Payroll Increase State: TX 7539 Electric Light Or Power Co Noc--all Employees & Drivers 8107 Contractors' Machinery Dealer & Drivers 8810 Clerical Office Employees NOC 0011 Farm: Noc & Drivers 8810 Counseling Service Inside 3064 Sign Mfg --metal 4299 Printing - Copying & Duplicating Service 4511 Analytical Chemist 4519 Exterminator & Drivers 5190 Traffic Signal Control Installation & Drivers 5506 Street Or Road Construction: Paving Or Repaving & Drivers 7423 Aircraft Or Helicopter Operation: All Other Employees & Drivers 7520 Waterworks Operations & Drivers 7580 Sewage Disposal Plant Operation & Drivers 7590 Garbage Works 7704 Firefighters & Drivers 7720 Police Officers & Drivers 8107 Heavy Equipment Maintenance 8601 Engineer Or Architect --consulting 8742 Tax Appraisers 8831 Animal Shelter & Drivers 8833 Hospital: Professional Employees & Clerical 8838 Public Library/museum: professional Employees & Clerical 9015 Buildings --operations By Owner Or Lessee 9101 Public Library Or Museum: All Other Employees 9102 Park NOC--all Employees & Drivers 9220 Cemetery Operation & Drivers 9402 Refuse, Ashes or garbage collection & Drivers I 9402 Street Cleaning & Drivers 9040 Hospital: All Otheremployees 7720 Police Officers & Drivers 7423 Aircraft Ground Support Equipment Repair & Driver 7539 Electric Light Or Power Co Noc--all Employees & Drivers Total Estimated Standard Premium $14,013,564 $51,302 $27,480,218 $616,242 If Any $2,031 $58,895 $1,301,215 $209,203 $1,362,749 $1,594,095 $1,685,773 $5,888,070 $2,625,844 $899,719 $33,748,454 $34,941,759 $681,118 $767,745 $35,748 $702,734 $1,242,136 $1,734,899 $2,509,377 $72,899 $2,188,567 $271,641 $2,231,574 $594,692 If Any If Any If Any If Any $5,228,497.00 Premium Adjustments Amount Experience Modifier (0.48) ($2,718,818.00) Fund Discount (20%) ($501,936.00) Paid In Full Discount (2%) Deductible Credit Audit Provisions ($16,150.25) ($1,200,229.00) $791,363.75 Description Deposit Audit based on Payroll $891,363.75 Premiums are calculated based on the insurance company's rules and rates. Premiums shown as advance or deposit premiums are subject to audit and adjustment at the close of each audit period. If the advance premium is less than the earned premium as determined by the audit, the insured pays the difference. If the advance premium is more than the earned premium as determined by the audit, the insurance company returns the difference to the insured. The Insured must keep records of the information needed for the audit and the premium calculations and send copies to the insurance company when it requests them. Excluded coverage or other coverages sought may be available: please discuss with US[ other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations, exclusions and sublimits that will govern in the event of a loss. USI