BICEP BIG INDEPENDENT CITIES EXCESS POOL 3-2006

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 19, 2006 TITLE: AMENDMENTS TO BIG INDEPEND: CITIES EXCESS POOL (BICEP) AGREEMENTS AND NEW PROGRAM DOCUMENTS _ ___ CITY MANAGER RECOMMENDED ACTION Adopt a resolution which shall: CLERK OF COUNCIL USE ONLY: APPROVED Q~ As Recommended ^ As Amended ^ Ordinance on 1" Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER A-2006-337 1. Approve the Amended and Restated BICEP Joint Powers Agreement among the five city members of BICEP. 2. Approve the Amended Bylaws between BICEP and the member cities. 3. Approve the Revised Master Memorandum of Liability Coverage. 4. Approve the Liability Program document. 5. Approve the Workers' Compensation Program document. DISCUSSION BICEP was initially formed in 1988 in response to the extreme difficulty cities were having in obtaining liability insurance coverage. The cities of Huntington Beach, Santa Ana, San Bernardino, Oxnard and Pomona were the charter members which formed BICEP. Subsequently, the City of Pomona withdrew and the City of West Covina joined BICEP in October 2003. In order to provide adequate reserves for liability coverage, BICEP issued bonds in 1988 and as a further consequence entered into certain legal "operating" documents to provide the necessary and required protection for bondholders. More specifically, the Liability Risk Coverage Agreement and Trust Indenture were specifically crafted to ensure that the premiums paid in and the settlements paid out under the liability coverage program, were administratively handled to protect the interest of bondholders. In October 2003, BICEP determined to retire the bonds and with the ratification of the City Councils of each Member, undertook necessary actions to defease the bonds in March 2004. With the retirement of this 55A-1