COMMERCE >> Central Basin Municipal Water District would lose a portion of its insurance coverage coverage for up to a yr below a proposal from its insurance carrier obtained Friday by this information organization.
The Association of California Water Agencies’ Joint Powers Insurance Authority’s proposal also would call for the district’s board to renegotiate its contract with Tony Perez, its standard manager, so that it would consider a 4-one vote to terminate his contract.
The proposal from the JPIA would call for the suspension of the district’s employment practice liability insurance for 6 months and withdrawal from the staff compensation insurance coverage system for a yr. The district then would have to apply for reinstatement of the 2 coverages.
The district even now would have coverage for areas such as contract, premises and product liability or for a predicament in which an worker triggers an accident, Perez explained.
The JPIA proposal will be considered by the Central Basin board at its 10 a.m. Thursday meeting.
Perez explained he’s encouraged by the proposal but still requirements to figure out its financial effect.
He called the provision about his contract “gratifying.”
“It’s a honest demonstration that JPIA feels the district is moving in the appropriate course and they want to have secure management and leadership to carry on moving in that course,” Perez stated.
Nonetheless, Director Robert Apodaca doesn’t like the provision on Perez’s contract.
“That’s out of the question,” Apodaca stated “They really do not tell the board what to do. We have other choices. We’ll see exactly where we go.”
Director Leticia Vasquez mentioned she’s unhappy about the loss of coverage for even 6 months.
“We’re still in essence in the exact same position,” Vasquez explained. “It’s critical for us to see what plan our manager is proposing. We have to operate out a plan that will be beneficial for all.”
JPIA Executive Director Walter Sells, in a letter to Perez, wrote that requiring a 4-1 vote to terminate the common manager “should assist in delivering prolonged-term stability to the management of the district. Retaining your property and most of your liability coverages will enable the 2 sides to carry on, and hopefully improve our operating romantic relationship.”
The clause producing it tougher to fire the standard manager is unusual, mentioned Whittier Mayor Bob Henderson, proprietor of a Whittier insurance brokerage given that 1961.
“I’ve never ever heard of it occurring,” Henderson mentioned. “I don’t recognize where an insurance coverage organization would have the capacity to give them orders about the employing or firing of a manager.”
However, Gil Aguirre a San Gabriel Valley open-government activist, stated he understands why the JPIA included the clause about Perez.
“The (JPIA) feels Perez is a competent administrator and doesn’t want a scenario exactly where he’s thrown out on his ear,” Aguirre mentioned. “They’re hunting for some element of stability.”
The JPIA supply to Central Basin comes following its Executive Committee voted to cancel Central Basin’s insurance coverage due to the fact of issues the insurance carrier was paying out a lot more in liability claims than it was obtaining from the district.
JPIA has paid out about $ 384,114 in workers compensation claims and $ 331,699 in liability claims for the duration of the past 5 many years on behalf of Central Basin.
The insurance authority throughout the very same period acquired $ 303,249 in liability premiums and $ 84,759 for employees compensation from the district.