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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 5, 2017 <br />TITLE: <br />INSURANCE RENEWALS WITH BIG <br />INDEPENDENT CITIES EXCESS POOL, <br />PUBLIC ENTITY PROPERTY INSURANCE <br />PROGRAM AND CALIFORNIA STATE <br />ASSOCIATION OF COUNTIES <br />{STRATEGIC PLAN NO. 4, 1} <br />r <br />/7 cr <br />CITY MAIAGER <br />i l • <br />CLERK OF COUNCIL USE ONLY: <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 <br />Liability Program from July 1, 2017 to July 1, 2018 at an estimated premium cost not to <br />exceed $3,300,000. <br />2. Approve the City's continued membership in the Big Independent Cities Excess Pool <br />Workers' Compensation Program from July 1, 2017 to July 1, 2018 at an estimated <br />premium cost not to exceed $404,000. <br />3. Approve the City's continued participation in the Public Entity Property Insurance Program <br />from July 1, 2017 to July 1, 2018 at an estimated premium cost not to exceed $650,000. <br />4. Approve the City's continued participation in the California State Association of Counties — <br />Excess Insurance Authority's Crime Bond Program from July 1, 2017 to July 1, 2018 at an <br />estimated premium cost not to exceed $12,000. <br />DISCUSSION <br />The City is a member of Big Independent Cities Excess Pool (BICEP) Joint Powers Authority <br />which was formed in September 1988. The current member cities include Santa Ana, Huntington <br />Beach, San Bernardino, Oxnard, West Covina, and Ventura. The purpose of BICEP is to provide <br />insurance coverage for its members, shielding them from financial debt due to large liability <br />claims, judgments, and settlements. Additionally, participation in a pool provides rate stability and <br />can offer broader coverage. <br />The BICEP excess liability insurance premium for the July 1, 2017 to July 1, 2018 period will not <br />exceed $3,300,000, an increase over last year's premium of $1,516,256. This increase is due to <br />the hardening of the Police Liability market. The excess liability program covers liability claims <br />from $1,000,000 to $27,000,000 per occurrence with a $1,000,000 self-insured retention (SIR) <br />which functions like a deductible. <br />29A-1 <br />