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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 18, 2012 <br />TITLE: <br />INSURANCE RENEWALS <br />CITY MANAGER <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 />RECOMMENDED ACTION <br />1. Approve the City's continued membership in the Big Independent Cities Excess Pool from <br />July 1, 2012 to July 1, 2013 at an estimated premium cost not to exceed $1,460,000. <br />2. Approve the City's continued participation in the Public Entity Property Insurance Program <br />from July 1, 2012 to July 1, 2013 at an estimated premium cost not to exceed $415,000. <br />3. Approve the City's continued participation in the California State Association of Counties - <br />Excess Insurance Authority's Crime Bond Program from July 1, 2012 to July 1, 2013 at an <br />estimated premium cost not to exceed $11,500. <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, workers' compensation, and pollution and remediation liability <br />insurance policies will expire on July 1, 2012. The total BICEP insurance premium for the July 1, <br />2012 to July 1, 2013 period will not exceed $1,460,000; an estimated $1,200,000 of which covers <br />liability claims from $1,000,000 to $50,000,000 per occurrence with a $1,000,000 self insured <br />retention (SIR) which functions like a deductible. An estimated $225,000 purchases statutory <br />excess workers' compensation insurance coverage with a $1,000,000 SIR. The balance of <br />$35,000 covers pollution and remediation liability claims for three years with a $10,000,000 limit <br />and $100,000 SIR. The pollution and remediation liability insurance provides coverage for loss, <br />remediation expense and legal defense expense for sudden and gradual pollution conditions at or <br />from covered locations. <br />29A-1