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ADMINISTRATIVE COMMITTEE |
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5. |
CONSIDER ADOPTION OF
RESOLUTION NO. 2012-05 APPROVING MEMBERSHIP IN ASSOCIATION OF CALIFORNIA
WATER AGENCIES JOINT POWERS INSURANCE AUTHORITY |
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Meeting
Date: |
May 14,
2012 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, General Manager |
Program/ Line Item No.: |
N/A |
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Prepared
By: |
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Cost Estimate: |
None |
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General Counsel Review: N/A |
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Committee
Recommendation: The Administrative
Committee reviewed this item on May 14, 2012 and recommended
_____________________. |
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CEQA Compliance: N/A |
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SUMMARY: The District contracts with the Association of California Water Agencies Health Benefits Authority (HBA), to provide employee benefits for medical, dental, and vision coverage for the General Staff Bargaining Unit, which includes approximately seventy five percent of staff. The HBA is also the source of life insurance and an employee assistance plan for all District employees. HBA is a public agency formed in 1994 to provide health insurance coverage to Association of California Water Agency (ACWA) members. It was restructured in 2010 to be governed by a board representing agencies that directly participate in HBA programs. Currently, 282 ACWA member agencies are enrolled in HBA programs.
The HBA has initiated a process to transition its operations and health benefits programs into the Association of California Water Agencies Joint Powers Insurance Authority (JPIA). JPIA is a joint powers authority formed by ACWA in 1979 to provide cost-effective liability insurance for public water agencies. Offerings were later expanded to include property insurance and workers' compensation. There are currently 292 ACWA member agencies enrolled in JPIA programs. The proposed move would allow the two organizations to combine resources, reduce overall costs and improve operations. Potential cost savings would be passed on to all agencies that participate in programs offered by HBA and JPIA. The District contracts with the Special Districts Risk Management Authority for both property/liability and workers’ compensation insurance, after favorable cost/benefit analysis of other potential sources, including JPIA. Participation in the new JPIA’s liability and workers’ compensation programs will not be required after the transition. However the merger could positively affect the cost of the District’s HBA premiums. The benefits currently offered by HBA will not be affected by this merger.
The HBA Board of Directors voted March 28 to dissolve the ACWA Health Benefits Authority and transfer its health benefits programs to JPIA. In order to proceed with the transition, HBA must secure the concurrence of 75% of HBA members within the 90-day window specified in HBA's bylaws. That must be achieved by July 1, 2012. In order to ensure a seamless transition and to retain our HBA employee benefits, the District must adopt the attached resolution (Exhibit 5-A) ratifying the action by the HBA board to terminate the Health Benefits Authority Joint Powers Agreement and consenting to join the Employee Benefits Program of JPIA.
RECOMMENDATION: Adopt Resolution No. 2012-05 Approving Membership in Association of California Water Agencies Joint Powers Insurance Authority
IMPACTS TO STAFF/RESOURCES: There would be no cost to the District. However, there could be reductions to premiums in the future.
BACKGROUND: The District has covered employees in the General Staff Bargaining Unit for their medical, dental, and vision insurance through participation in Association of California Water Agencies Health Benefits group plans since 2006. HBA has been a separate entity from JPIA during this time.
EXHIBIT
5-A Resolution No. 2012-05
U:\staff\Board_Committees\Admin\2012\20120514\05\item5.docx