Item 18 - ICRMA JPA Renewal / Broker Agreement / Associated Premiums and Costs

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ICRMA JPA Renewal / Broker Agreement / Associated Premiums and Costs August 1, 2023 Page 2 3 6 3 5 4. Authorize the City Manager to approve funding to cover FY 2023/24 City Special Events Insurance for events including but not limited to Fourth of July fireworks show, winter events, and other City-sponsored events as created and held, in an amount not to exceed $300,000. 5. Authorize the City Manager to approve the City’s obligation to pay the State of California DIR estimated assessment in the amount not to exceed $500,000. 6. Approval of the Appropriation Adjustment will recognize $1,300,000 in Liability and Property Insurance Revenue, Prior Year Carryforward revenue account (No. 08009002-50001) and appropriate the same amount into the Liability & Property insurance account (No. 08009051-64010). (Requires five affirmative votes) DISCUSSION Staff is recommending renewal with ICRMA, a joint powers authority formed in 1980 in accordance with California Government Code Section 6500. ICRMA’s purpose is to provide: 1) excess and re-insurance to protect members from extensive financial debt due to large claims, settlements, and judgments, 2) group insurance purchasing power that can offer broader coverage at a lower cost, 3) rate stability, and 4) protect individual member cities through pooling of losses and self-insurance. ICRMA also offers to its members actuarial services, appraisal services, loss control assessments and recommendations, safety trainings, claims audits, contract risk transfer consultation, and other services and resources. Currently comprised of 14 California cities, Santa Ana joined ICRMA in July 2019. For this renewal period: •The City’s Workers’ Compensation coverage experienced an increase of approximately thirteen percent (13%). •The City’s Liability and Property premiums increased approximately twenty-one percent (21%). •The City’s Cyber experienced a 10% decrease in premium along with enhanced coverages. Cost of insurance continues to increase primarily due to the following ongoing reasons: 1. An insurance market with continually decreasing excess carriers willing to quote municipal government entities in California, primarily those with Police departments; 2. A continuing rise in jury awards and settlement amounts; 3. A rising amount of ADA claims in both cyber and physical environments; 4. The continual rise in frequency of vehicle collisions and costs for repair and replacement of damaged vehicles, property, and equipment; 5. Aging City infrastructure including sidewalks, streets, and buildings; and 6. Increasing instances of sexual molestation and abuse.