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RESOLUTION NO. 2002-062 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA APPROVING AND AUTHORIZING THE BIG <br />INDEPENDENT CITIES EXCESS POOL TO PROVIDE <br />EXCESS WORKERS' COMPENSATION INSURANCE FOR <br />THE EMPLOYEES THROUGH MEMBERSHIP IN THE <br />CALIFORNIA PUBLIC ENTITY INSURANCE AUTHORITY. <br /> <br />JWF/7/19/02 <br /> <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br /> <br /> Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br /> <br />A. Since 1988 this City has been a member of the Big Independent Cities <br />Excess Pool ("BICEP"), a California Joint Powers Authority, consisting of the <br />cities of Huntington Beach, Oxnard, Pomona, San Bernardino, and Santa Ana; <br />formed to jointly develop and fund programs of excess liability, property, workers' <br />compensation, and other coverages. <br /> <br />B. BICEP's Board of Directors has concluded that due to a severe reduction <br />is commercially available excess workers' compensation insurance, that the most <br />cost effective excess workers' compensation insurance available to BICEP <br />members for the Fiscal Year 2002-03 and possibly beyond, is provided through <br />the California Public Entity Insurance Authority ("CPEIA"), a joint powers <br />authority consisting of a number of counties, cities and other joint powers <br />authorities. <br /> <br />C. The CPEIA Program includes a risk pooling feature which might require <br />BICEP, at a future time, to pay an assessment to cover its share of the pooled <br />liability, or entitle it to a dividend if the pooled costs are less than the premiums <br />collected. <br /> <br />D. If an assessment is levied in the future under the CPEIA Program, BICEP <br />would be obligated to pay that assessment by assesSir]g each of its members a <br />pro rata share of that assessment. Any divident would likewise be distributed <br />among BICEP members. <br /> <br /> Section 2. The City Council hereby approves of BICEP becoming a member of <br />or entering into an agreement with CPEIA to provide excess workers' compensation for <br />BICEP and its member cities, including Santa Ana, acknowledging and agreeing that <br />that under the BICEP agreement Santa Ana may be required to pay its pre rata share of <br />any future assessment, so long as it is properly credited for any future dividends. <br /> <br />Resolution No, 2002-062 <br /> Page 1 of 2 <br /> <br /> <br />