FULL PACKET_2011-07-18 - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 18, 2011 TITLE INSURANCE RENEWALS CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1St Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the City's continued membership in the Big Independent Cities Excess Pool from July 1, 2011 to July 1, 2012 at an estimated premium cost not to exceed $1,250,000. 2. Approve the City's continued participation in the Public Entity Property Insurance Program from July 1, 2011 to July 1, 2012 at an estimated premium cost not to exceed $360,500. 3. Approve the City's continued participation in the California State Association of Counties — Excess Insurance Authority's Crime Bond Program from July 1, 2011 to July 1, 2013 for an estimated two year pre -paid premium not to exceed $17,500. DISCUSSION In September 1988, the Big Independent Cities Excess Pool ( BICEP) Joint Powers Authority was formed with five cities. The current cities include Santa Ana, Huntington Beach, San Bernardino, Oxnard, and West Covina. The purpose of BICEP is to provide insurance coverage for its members, shielding them from financial debt due to large liability claims, judgments, and settlements. Additionally, participation in a pool provides rate stability and can offer broader coverage. The current excess liability and workers' compensation insurance policies will expire on July 1, 2011. The total BICEP insurance premium for the July 1, 2011 to July 1, 2012 period will not exceed $1,250,000; an estimated $1,015,000 of which covers liability claims from $1,000,000 to $50,000,000 per occurrence with a $1,000,000 self insured retention (SIR) which functions like a deductible. The balance of $235,000 purchases statutory excess workers' compensation insurance coverage with a $1,000,000 SIR. 29A -1