Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 1, 2013 <br />TITLE <br />INSURANCE RENEWALS <br />CIT "AGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 15t Reading <br />? Ordinance on 2nd 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 Excess Pool from <br />July 1, 2013 to July 1, 2014 at an estimated premium cost not to exceed $1,465,000. <br />2. Approve the City's continued participation in the Public Entity Property Insurance Program <br />from July 1, 2013 to July 1, 2014 at an estimated premium cost not to exceed $450,000. <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, 2013 to July 1, 2014 at an <br />estimated premium cost not to exceed $12,500. <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 and workers' compensation insurance policies will expire on July 1, <br />2013. The total BICEP insurance premium for the July 1, 2013 to July 1, 2014 period will not <br />exceed $1,465,000; an estimated $1,200,000 of which covers liability claims from $1,000,000 to <br />$50,000,000 per occurrence with a $1,000,000 self insured retention (SIR) which functions like a <br />deductible. An estimated $265,000 purchases statutory excess workers' compensation insurance <br />coverage with a $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 />29A-1