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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 1, 2009 <br />TITLE: <br />INSURANCE RENEWALS <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1s1 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, 2009 to July 1, 2010 at an estimated premium <br />cost not to exceed $1,730,000. <br />2. Approve the City's continued participation in the Public Entity <br />Property Insurance Program from July 1, 2009 to July 1, 2010 at an <br />estimated premium cost not to exceed $425,000. <br />DISCUSSION <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 />The current environmental (pollution) liability, excess liability and <br />workers' compensation insurance policies will expire on July 1, 2009. The <br />total BICEP insurance premium for the July 1, 2009 to July 1, 2010 period <br />will not exceed $1,730,000; an estimated $975,000 of which covers <br />liability claims from $1,000,000 to $101,000,000 per occurrence with a <br />$1,000,000 self insured retention (SIR) that is like a deductible. An <br />estimated $55,000 covers environmental liability claims for three years <br />with a $10,000,000 limit with a $100,000 SIR. The balance of $700,000 <br />purchases statutory excess workers' compensation insurance coverage with a <br />$500,000 to $1,000,000 SIR and payment of the 2007-08 insurance payroll <br />audit. <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 />29A-1 <br />