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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 1, 2014 <br />TITLE: <br />INSURANCE RENEWALS <br />CITY MA ER <br />RECOMMENDED ACTION <br />CLERIC OF COUNCIL USE ONLY: <br />:••:• 01 <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl 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, 2014 to July 1, 2015 at an estimated premium cost not to exceed $1,510,000. <br />2. Approve the City's continued participation in the Public Entity Property Insurance Program <br />from July 1, 2014 to July 1, 2015 at an estimated premium cost not to exceed $400,000. <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, 2014 to July 1, 2015 at an <br />estimated premium cost not to exceed $12,000. <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 />2014. The total BICEP insurance premium for the July 1, 2014 to July 1, 2015 period will not <br />exceed $1,510,000; an estimated $1,250,000 of which covers liability claims from $1,000,000 to <br />$52,000,000 per occurrence with a $1,000,000 self insured retention (SIR) which functions like a <br />deductible. An estimated $260,000 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 <br />