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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 2, 2008 <br />TITLE: <br />INSURANCE RENEWALS <br />^Q~ <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />1. Approve the City's continued membership in the Big Independent Cities <br />Excess Pool from July 1, 2008 to July 1, 2009 at an estimated premium <br />cost not to exceed $1,750,000. <br />2. Approve the City's continued participation in the Public Entity <br />Property Insurance Program from July 1, 2008 to July 1, 2009 at an <br />estimated premium cost not to exceed $400,000. <br />3. Approve the City's continued participation in the California State <br />Association of Counties - Excess Insurance Authority's Crime Bond <br />Program from July 1, 2008 to July 1, 2011 for three years at an <br />estimated premium not to exceed $40,000. <br />DISCUSSION <br />On September 23, 1988, five cities formed the Big Independent Cities <br />Excess Pool Joint Powers Authority (BICEP). The current BICEP cities are <br />as follows: Santa Ana, Huntington Beach, San Bernardino, Oxnard, and West <br />Covina. The purpose of BICEP is to provide insurance coverage for its <br />members, shielding them from financial debt due to large liability <br />claims, judgments, and settlements. <br />The current excess Liability and Workers' Compensation insurance policies <br />will expire on July 1, 2008. The total BICEP insurance premiums for July <br />1, 2008 to July 1, 2009, will not exceed $1,750,000. Under BICEP's <br />liability insurance program, each member city is responsible for a self- <br />insured retention of $1,000,000. The excess liability insurance coverage <br />will cost an estimated $1,100,000 for all claims greater than our self- <br />insured retention that range from $1,000,000 to $101,000,000. Because of <br />reasonable market pricing, we are purchasing more excess insurance to <br />protect the City from large settlements and verdicts currently being <br />experienced by other public entities. The remaining $650,000 will <br />29A-1 <br />