053-08 - Resolution - Contract with AWC for Retrospective Rating Program EnrollmentRESOLUTION NO. 053-08
A RESOLUTION OF THE CITY OF PORT ORCHARD,
WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A
CONTRACT WITH ASSOCIATION OF WASHINGTON CffiES
FOR 2009 RETROSPECTIVE RATING PROGRAM RE-
ENROLLMENT
WHEREAS, the City is requ ired to carry and provide workers' compensation insurance
for its employees; and
WHEREAS, Washington State WAC's requires that the City must re-enroll in its
Retrospective Program each year; and
WHEREAS, the City desires to re-enroll with Association of Washington Cities (AWC) for
the period of January 1, 2009 through December 31, 2009;
now, therefore;
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY
RESOLVES AS FOLLOWS:
THAT: Th e City Council hereby approves the Contract attached
hereto as Ex hibit A and by thi s reference incorporated herein .
THAT: The Mayor is authorized to execute, on behalf of the City,
the contract with Associatio n of Washington Cities (AWC) for Re -
enrollment in its 2009 Workers' Compensation Retrospective
Rating Program.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of suc h passage this 25th day of November 2008 .
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ASSOC IAT I ON
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FoiWard to a f riend
TO : Mayor: Lary Coppola
AWC Retro Primary Contact(s): Capri Corbett
FROM: Gayla Gjertsen, Assistant Director for Insurance Services
Linda Triplett, Associate Director/Finance Manager for Insurance Services
RE: 2005-2007 Retro Refund Update
2009 AWC Retrospective Rating Program Re-Enrollment
DATE: November 17, 2008
2005-2007 Retro Refund Update
We are pleased to report that the AWC Retro Program received a refund for the 2005 through
2007 years in the total amount of $363,974. The refund is a culmination of all of your efforts to
close claims timely and return employees to work as well as your efforts to provide a safe
working environment through effective loss control initiatives and training.
The refund amount of $363,974 has been added to member equity. With this deposit, the total
member equity is $1,003,422 plus interest earnings. A breakdown of the L&l refund retention
by year is detailed below:
2004 -$220,009
2005-$344,731
2006 -$208,180
2007-$230,502
As AWC Retro members, you have made it abundantly clear that while refunds are desired , of
greater importance is to not be faced with an L&l retro reassessment. With that in mind , the
refund distribution and retention policy adopted in 2007 is aimed at protecting members from
an abnormal year in which poo r claims experience resulted in an L&l reassessment. The
policy provides that should an L&l reassessment occur that it be paid directly from member
reserves freeing members of an unplanned financial burden .
Under the guidance of the refund distribution and retention policy , an analysis of the current
retention level will be completed in early 2009. At that time , a decision will be made as to how
much of the refund will be distributed to Retro members. You can be assured that we will
refund as much as possible while still building upon member reserves to cover the
consequence of an adverse claim year.
As a final comment with respect to the current 2008 policy year, the anticipated outcome
remains promising . Based upon the most current claims data, we would anticipate a positive
refund at this same time next year. Continued focus on the closure of open claims will
enhance the possibility of a positive financial outcome.
We look forward to another very good year in 2009 for your Retro program. As required
by state WAC, we encourage you to sign the re-enrollment form below and return to us
by December 12, 2008.
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2009 AWC Retrospective Rating Program Re -Enrollment
The AWC Workers' Compensation Retrospective Rating Program (Retro) will begin its sixth
year of operation beginning January, 2009.
State WAC requires that a business or entity must re~nroll in their Retro program each and
every year.
In order to facilitate Port Orchard's re-enrollment in the AWC Retro program for 2009, we
have attached your completed application that only requires your signature (or signature of
your designee).
Please sign the re-enrollment agreement below and return either via FAX or emailed
PDF no later than December 12,2008.
FAX Return: (360) 753-0148
PDF Return : Laural@awcnet.org
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We authorize our continued enrollment in the Association of Washington Cities Group
Retro Program for the 2009 Retro year:
Retro I D: 122 Plan : A2
MPR: 1.15 Plan Year: 1/1/09-12/31/09
Employer: L&l A ccount ID:
City of Port Orchard 002,975-00
Nam e: (print) Title:
D ate:
u wish to unsubscribe from this mailing, c l!cl<. h!1r!1
k patrick' Associa~on of Washington Ci ties
1076 Franklin Street SE, Olympia, WA 98501
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