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HomeMy WebLinkAbout55B - BICEP AGMTS TO ADD 2 MEMBERS CITY COUNCIL MEETING DATE: ~ ~ REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: JUNE 20, 2005 TITLE: AMENDMENTS TO CITIES EXCESS AGREEMENTS TO MEMBER: . ~/ t'z;a~//7:2<~. CITY MANAGER BIG INDEPENDENT POOL (BICEP) ADD TWO NEW APPROVED D As Recommended D As Amended D Ordinance on 151 Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For CONTINUED TO tf FILE NUMBER RECOMMENDED ACTION Adopt a resolution which shall: 1. Approve the Second Amendment to the BICEP Joint Powers Agreement among the five city members of BICEP. 2. Approve the Fourth Amendment to the Liability Risk Coverage Agreement between BICEP and the member cities. 3. Authorize the City Manager to approve any additional amendments or agreements necessary to admit the City of Riverside and the Community Development Commission of the County of Los Angeles as members of Big Independent Cities Excess Pool (BICEP). DISCUSSION In the interest of strengthening BICEP and minimizing Santa Ana's share of risk in the pool, BICEP periodically considers new pool members. The City of Riverside and the Community Development Commission of the County of Los Angeles (CDCCLA) are seeking to join BICEP. BICEP's actuary reviewed the history and claims data of these two agencies and recommended their membership in BICEP. Among other things, the addition of these agencies in BICEP would give BICEP greater negotiating power in this difficult insurance market. The proposed amendments make technical amendments to the operative BICEP agreements necessary to facilitate CDCCLA membership as a non-city. The Second Amendment to the JPA would also widen the definition of permissible public agency members of BICEP to include non-California cities and public agencies. 55B-1 Amendments to BICEP Agreements June 20, 2005 Page 2 It is anticipated the BICEP Board of Directors will formally recommend these two entities for membership effective July 1, 2005 at BICEP's June Board of Directors meeting, subject to member city ratification. Due to very short time period before the start of the fiscal year, staff is proposing that the City Manager, upon the concurrence of the City Attorney, to be authorized to execute any further amendments the operative BICEP documents to formally admi t Riverside and CDCCLA as members of BICEP. FISCAL IMPACT Depending on whether both agencies join BICEP, the City's premium is anticipated to be reduced. 55B-2 (JWF 6/9/05) RESOLUTION NO. 2005-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING THE LIABILITY RISK COVERAGE AGREEMENT AND THE JOINT POWERS AGREEMENT CREATING THE BIG INDEPENDENT CITIES EXCESS POOL JOINT POWERS AUTHORITY, AUTHORIZING, RATIFYING, AND APPROVING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH, AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS NECESSARY TO ADMIT TWO ADDITIONAL MEMBERS TO BICEP. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana is a charter city and municipal corporation organized and existing under and by virtue of the constitution and laws of the State of California (the "City"); and B. The Cities of Huntington Beach, Oxnard, West Covina, San Bernardino, and Santa Ana are the current Members of the Big Independent Cities Excess Pool Joint Powers Authority (BICEP), a joint exercise of powers entity organized and existing under the laws of the State of California (the "Authority"); and C. Each Member of the Authority entered into that certain JOINT POWERS AGREEMENT CREATING THE BIG INDEPENDENT CITIES EXCESS POOL JOINT POWERS AUTHORITY, executed and delivered in September 1988, as amended by that certain FIRST AMENDMENT TO THE JOINT POWERS AGREEMENT, dated November 1, 2003 (altogether the "JPA Agreement") D. The Authority and each Member entered into that certain LIABILITY RISK COVERAGE AGREEMENT dated as of October 1, 1988 (the "Original Agreement"), as amended by the FIRST AMENDMENT TO LIABILITY RISK COVERAGE AGREEMENT dated as of December 1, 1988 (the "First Amendment"), and the SECOND AMENDMENT TO LIABILITY RISK COVERAGE AGREEMENT dated June 19, 1995 (the "Second Amendment"), and the THIRD AMENDMENT TO LIABILITY RISK 55B-3 Resolution No. 2005-058 Page 1 of 3 COVERAGE AGREEMENT, dated November 1, 2003 (the "Third Amendment") (the Original Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, is referred to herein as the "Agreement"); and E. The Members desire to expand the eligibility for participation in BICEP to allow any public agency, as that term is defined in Section 6500 of the Joint Powers Law, to join the Authority; and, in connection therewith certain provisions of the JPA Agreement and the Agreement, respectively, are required to be amended, supplemented, or waived, as applicable; and F. In furtherance thereof, the City proposes to enter into the Second Amendment to the JPA Agreement (the "Second Amendment to JPA") to provide for the expansion of eligibility for membership in the Authority; and G. The City proposes to enter into a Fourth Amendment to Liability Risk Coverage Agreement (the "Fourth Amendment") to provide for the expansion of eligibility for participation in the Authority; and, H. The City of Riverside, California and the Community Development Commission of the County of Los Angeles (jointly or individually, the "New Members") have expressed interest in becoming members of BICEP, and BICEP has determined that both agencies are potentially acceptable members. I. The City Council is willing to grant consent to the membership of these agencies upon final determination by the BICEP Board and subject to confirmation by the City Manager, Risk Manager and City Attorney. Section 2. The Second Amendment to the JPA Amendment is approved. Section 3. The Fourth Amendment to the Liability Risk Coverage Agreement is approved. Section 4. The City Manager is hereby authorized and directed, for and in the name of the City, to execute and deliver foregoing documents and such approval to be conclusively evidenced by the execution and delivery thereof. Section 5. The City Manager, is also hereby authorized, in consultation with the Risk Manager and the City Attorney, to approve and execute any other document necessary to carry out the intent of this Resolution including further amendments to the JPA or the Liability Risk Coverage Agreement necessary or desirable to facilitate the admission of the New Members. Resolution No. 2004-058 Page 2 of 3 55B-4 Section 6. All actions previously taken by this City Council and by the officers and staff of the City with respect to the matters addressed by this Resolution are hereby approved, ratified, and confirmed in all respects. Section 7. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of ,2005. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-058 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55B-5 Resolution No. 2005-058 Page 3 of 3 55B-6