29A - INS RENEWALS - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2007 TITLE: INSURANCE RENEWALS lt^~--- CI Y MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1 s' Reading ^ Ordinance on Intl 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, 2007 to July 1, 2008 at a premium cost not to exceed $1,500,000. 2. Approve the City's continued participation in the Public Entity Property Insurance Program from July 1, 2007 to July 1, 2008 at a $356,017 premium cost. 3. Approve joining the California State Association of Counties - Excess Insurance Authority's Environmental Insurance Program from July 1, 2007 to July 1, 2009 for an estimated premium not to exceed $40,000. DISCUSSION On September 23, 1988, the Big Independent Cities Excess Pool (BICEP) Joint Powers Authority was formed with five cities. The current cities are as follows: 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. The current excess liability and workers' compensation insurance policies will expire on July 1, 2007. For liability each member city has a $1,000,000 self-insured retention that is similar to a deductible. The total BICEP insurance premium for the July 1, 2007 to July 1, 2008 period will not exceed $1,500,000; an estimated $875,000 of which covers liability claims from $1,000,000 to $26,000,000 per occurrence. The balance of $625,000 purchases $300,000,000 of excess workers' compensation insurance coverage per occurrence with a $500,000 self-insured retention. The City Manager will review the quotations and make the final approval and coverage will be bound. 29A-1