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REQUEST FOR <br /> <br /> COUNCIL ACTION j <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> JUNE 21, 2010 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> INSURANCE RENEWALS ? As Amended <br /> ? Ordinance on 15t Reading <br /> ? Ordinance on 2"d Reading <br /> ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> ~ ~°~.Z,..Lr''~/ ~ ~~(°`•r°~--- FILE NUMBER <br /> Y <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> 1. Approve the City's continued membership in the Big Independent Cities Excess Pool from <br /> July 1, 2010 to July 1, 2011 at an estimated premium cost not to exceed $1,450,000. <br /> 2. Approve the City's continued participation in the Public Entity Property Insurance Program <br /> from July 1, 2010 to July 1, 2011 at an estimated premium cost not to exceed $370,000. <br /> DISCUSSION <br /> In September 1988, the Big Independent Cities Excess Pool (BICEP) Joint Powers Authority was <br /> formed with five cities. The current cities include Santa Ana, Huntington Beach, San Bernardino, <br /> Oxnard, and West Covina. The purpose of BICEP is to provide insurance coverage for its <br /> members, shielding them from financial debt due to large liability claims, judgments, and <br /> settlements. Additionally, participation in a pool provides rate stability and can offer broader <br /> coverage. <br /> The current excess liability and workers' compensation insurance policies will expire on July 1, <br /> 2010. The total BICEP insurance premium for the July 1, 2010 to July 1, 2011 period will not <br /> exceed $1,450,000; an estimated $950,000 of which covers liability claims from $1,000,000 to <br /> $75,000,000 per occurrence with a $1,000,000 self insured retention (SIR) which functions like a <br /> deductible. The balance of $500,000 purchases statutory excess workers' compensation <br /> insurance coverage with a $500,000 to $1,000,000 SIR. <br /> The Public Entity Property Insurance Program (PEPIP) was established in May 1993 with <br /> seventeen public agencies including the City of Santa Ana. The purpose of PEPIP is to provide <br /> public agencies with group purchasing strength. Since 1993, PEPIP has grown to include over <br /> 6,400 members in 45 states, which has allowed the group to purchase property insurance at <br /> affordable premiums. The estimated $370,000 premium will provide $1,000,000,000 of coverage <br /> for insured City properties. PEPIP will provide the City with $100,000,000 for boiler and machinery <br /> 29A-1 <br /> <br />