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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 19, 2006 <br />TITLE: <br />INSURANCE RENEWALS <br />c <br />C Y MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />1. Approve the City's continued membership in the Big Independent Cities <br />Excess Pool for an additional three years beginning July 1, 2006 at <br />an annual premium cost not to exceed $1,825,000 for the first year. <br />2. Approve the City's continued participation in the Public Entity <br />Property Insurance Program from July 1, 2006 to July 1, 2007 at a <br />premium cost of $387,188. <br />3. Approve the City's continued participation in the Crime Bond Program <br />at a premium cost not to exceed $11,500 from July 1, 2007 to July 1, <br />2008. <br />DISCUSSION <br />On September 23, 1988, the Big Independent Cities Excess Pool (BICEP) <br />Joint Powers Authority was formed with five cities. The current cities <br />are as follows: Santa Ana, Huntington Beach, San Bernardino, Oxnard, and <br />West Covina. The purpose of BICEP is to provide insurance coverage for <br />its members, shielding them from financial debt due to large liability <br />claims, judgments, and settlements. <br />BICEP operating documents require each city to enroll for a succeeding <br />three-year commitment. Each member city has a $1 million self-insured <br />liability retention that is similar to a deductible. The current excess <br />workers' compensation insurance policies will expire on July 1, 2006, and <br />the liability policies will expire on October 1, 2006. The total BICEP <br />insurance premium for the July 1, 2006 to July 1, 2007 period will not <br />exceed $1,825,000; an estimated $1,215,000 of which covers liability <br />claims from $1 to $25 million per occurrence. The balance of $610,000 <br />purchases $150 million of excess workers' compensation insurance coverage <br />per occurrence with a $500,000 self-insured retention. The City Manager <br />will review the quotations and make the final approval and coverage will <br />be bound. <br />29A-1 <br />