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<br />CITY COUNCIL MEETING DATE: <br /> <br />~ <br />~ <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />JUNE 20, 2005 <br />TITLE: <br /> <br />INSURANCE RENEWALS <br /> <br />APPROVED <br /> <br />o As Recommended <br />o As Amended <br />o Ordinance on 1 sl Reading <br />o Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Public Hearing For <br /> <br />t>' <br /> <br />,.. . /'/ <br />,/ /~ <br />Uc-e.-- (//, _~c- <br />CITY MANA R <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />1. Approve the City's continued membership in the Big Independent Cities <br />Excess Pool for an additional three years beginning July I, 2005 at <br />an annual premium cost not to exceed $1,765,000 for the first year. <br /> <br />2. Approve the City's continued participation in the Public Entity <br />Property Insurance Program from July I, 2005 to July I, 2006 at a <br />premium cost of $333,803. <br /> <br />DISCUSSION <br /> <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 /> <br />BICEP provides insurance stability through its annual requirement of each <br />city to enroll for a succeeding three-year commitment. Each member city <br />has a $1 million self-insured liability retention that is similar to a <br />deductible. The current excess insurance policies will expire on July I, <br />2005. The total BICEP insurance premium will not exceed $1,765,000; an <br />estimated $1,265,000 of which covers liability claims from $1 to $25 <br />million per occurrence. The balance of $500,000 purchases $100 million of <br />excess workers' compensation insurance coverage per occurrence with a <br />self-insured retention between $500,000 and $1 million. The City Manager <br />will review the quotations and make the final approval and coverage will <br />be bound. <br /> <br />The Public Entity Property Insurance Program (PEPIP) was established on <br />May 15, 1993 with seventeen public agencies that included the City of <br />Santa Ana. The purpose of PEPIP is to provide public agencies with group <br /> <br />29B-1 <br /> <br />- <br />