Title
A Resolution Authorizing Regions Insurance, Inc. as the City's Advisor for Risk Management and Consulting Services on Workers Compensation.
Summary
Description of Topic: (who, what, where, when, why and how much)
The City's Workers Compensation Claims continue to increase with the experience modification rate moving from .93 in 2015 to 1.17 in 2016. Therefore, Human Resources desires to contract with Regions Insurance for strategic planning, access to an Advisor's client service team and the services of designing, analyzing and recommending effective risk management and insurance coverage solutions with regard to the City's worker's compensation, property and liability insurances. The annual cost of the advisor services is $25,000 which can be directly offset by the discount obtained through the Drug Free Premium Credit the City will receive in exchange for the drug free training the Advisor service will provide to City employees. Therefore, no additional budget funds are needed or being requested. Our goal will be to reduce worker's compensation claims by 25% over a two year period which could result in $323,117 less losses having the effect of lower premium results in future years. Regions will also negotiate premiums with the carriers for property and liability insurances as well.
Budgetary Impact:
Non-Capital Item:
__X__ Budgeted under account #01-6xx-1160 (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.
____ Not budgeted requiring increase to account #___________ in the amount of $____________.
Capital - Departmental
____ Budgeted under account #______________ for $___________ and described in budget as __________________________________.
Additional amount needed, if any: Increase in budget of $_____________ OR, transfer of $___________ from Account #____________ to Account #_______________
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, The City's Workers Compensation Claims continue to increase with the experience modification rate moving from .93 in 2015 to 1.17 in 2016, and
WHEREAS, In an effort to help control costs, Human Resources desires to contract with Regions Insurance, Inc. for strategic planning, access to an Advisor's client service team and the services of designing, analyzing and recommending effective risk management and insurance coverage solutions with regard to the City's worker's compensation, property and liability insurances, and
WHEREAS, The annual cost of the advisor services is $25,000 which can be directly offset by the carrier discount obtained through the Drug Free Premium Credit the City will receive in exchange for having received the drug free training the Advisor service will provide to City employees, and
WHEREAS, Our goal will be to reduce worker's compensation claims by 25% over a two year period which could result in $323,117 less losses resulting in lower Workers Comp premium costs in future years.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Authorizes Regions Insurance, Inc. as the City's Advisor for strategic planning, access to Advisor's client service team, and services as provided on the Advisor Agreement which is approved and becomes a part of this resolution upon adoption.
SECTION 2: This Resolution shall become effective immediately upon its adoption as required by law.