REPORT TO THE CITY COUNCIL June 8, 2017 FROM: JEFFREY CARDELL, Director Personnel Services Department BY: MIKE PAYNE, Risk Manager Personnel Services Department ..Title ***RESOLUTION - 58th amendment to the Annual Appropriation Resolution (AAR) No. 2016-118 to appropriate a total of $4,366,000 in the General Fund for the payment of claims and refunds in the Workers' Compensation Fund and for partial replenishment of the self-insured retention (SIR) in the Liability Fund (Requires 5 affirmative votes) ..Body RECOMMENDATION Staff recommends Council approve the 58th amendment to AAR No. 2016-118 to appropriate an additional $2,000,000 to the Workers' Compensation Fund and an additional $2,366,000 to the Liability Self-Insurance Fund from the General Fund. EXECUTIVE SUMMARY Due to level of claim activity in both the Workers' Compensation and the general Liability Self-Insurance Funds, the City anticipates the expenditures in these funds will exceed the appropriated fund levels. There are resources available in the FY 2017 General Fund to replenish these funds. It is recommended that council approve the replenishment of the Workers' Compensation and general Liability Self-Insurance Funds via recognition of additional unanticipated revenues in the General Fund. BACKGROUND The Council approved a resolution on March 9, 2017 reallocating $3,000,000 from the Liability SIR to fund refunds and claims thereby creating a need to replenish the self-insured Retention. In addition, the Workers' Compensation Fund is projected to incur expenses greater than the current appropriations. There are sufficient resources in the FY 2017 budget to appropriate to these funds. The approval of this resolution will provide $2,366,000 for partial replenishment of the SIR in the Liability Fund and will provide an additional Workers' Compensation allocation in the amount of $2,000,000. ENVIRONMENTAL FINDINGS Not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Not implemented because this item does not include a bid or award of a construction or services contract. FISCAL IMPACT In order to fund these additional needs, $4,366,000 million of unanticipated Real Secured Property taxes has been recognized in the attached resolution. If the resolution is not approved, additional resources will be necessary in FY 2018 to replenish both funds. Attachments: RESOLUTION - 58TH Workers Comp Liability Addtnl Approp AGT