REPORT TO THE CITY COUNCIL
August 20, 2020
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: MICHAEL PAYNE, Risk Manager
Personnel Services Department
SUBJECT
Title
Actions pertaining to FY 2021 Insurance Expenses:
1. ***RESOLUTION - Approving the reallocation of $480,000 in the Property Self-Insurance Fund to provide additional funding for FY 2021 insurance expenses (Subject to Mayor's Veto); (5 affirmative votes required).
2. ***RESOLUTION - Approving the reallocation of $295,000 in the Liability Self-Insurance Fund to provide additional funding for FY 2021 insurance expenses (Subject to Mayor's Veto); (5 affirmative votes required).
Body
RECOMMENDATION
It is recommended that Council approve the attached Resolutions which authorize the reallocation of $480,000 in the Property Self-Insurance Fund and $295,000 in the Liability Self-Insurance Fund to pay the FY 2021 insurance premiums.
EXECUTIVE SUMMARY
The continuing resolution appropriations in the property and liability funds utilized for insurance premium payments are insufficient to pay the current fiscal year premiums. Approval of this reallocation will redistribute existing appropriations to pay for current fiscal year insurance premiums.
BACKGROUND
The continuing resolution budget that was adopted for this fiscal year did not include any additional appropriations to account for increased insurance premiums. In addition, the adopted budget includes a ten percent contingency reducing the appropriations available to pay the insurance premiums for this year. To compensate for these reductions and the increase in premiums it is necessary to reallocate existing appropriations by adopting the attached resolutions. Pursuant to Council Resolution 2020-159 (the Annual Appropriations Resolution), Section 2(c), Council approval is required for this reallocation.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act ("CEQA") Guidelines Sect...
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