HomeMy WebLinkAboutAGENDA REPORT 1998 0506 CC REG ITEM 11FAGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Deborah S. Traffenstedt, City Clerk
DATE: April 28, 1998 (CC Meeting of 5/6/98)
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CITY OF MOORPAIM CALIFORNIA
City Council Meeting
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ACTION:
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SUBJECT: CONSIDER AUTHORIZING MAYOR TO APPROVE MEMBERSHIP FOR THE
CITY OF LA PALMA IN THE CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (JPIA)
Background
The Executive Committee for the California JPIA recommended the
approval of the City of La Palma for membership at their regular
meeting of April 17, 1998, and as a JPIA voting member, the City of
Moorpark's approval has been requested. The attached letter from
the JPIA Assistant Executive Director and the City of La Palma's
membership application provide further background information.
Staff Recommendation
Authorize the Mayor, as the California JPIA Director for the City
of Moorpark, to approve membership for the City of La Palma.
Attachment: Letter and Membership Application
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CALIFORNIA
A
To: CALIFORNIA JPIA DIRECTOR
c/o City Clerk
From: Jonathan R. Shull, Assistant Executive Director
Date: April 20, 1998
Subject: Approval of Membership for the City of La Palma
RECEIVED
APR 2 2 1998
CITY OF MOORPARK
The Executive Committee at their regular meeting of April 17, 1998, recommended
the approval of the City of La Palma for membership in the CALIFORNIA JPIA, subject
to the initial general liability primary deposit established at $49,914 and workers'
compensation primary deposit established at $113,298.
Enclosed is a Membership Consent Form for the admission of the City of La Palma
along with the report of Physical Survey.
We are requesting that each City Clerk deliver the enclosed materials to the
CALIFORNIA JPIA Director appointed by their Council, and expedite returning the
form to this office as soon as possible. If the Director is unavailable, the duly
appointed Alternate may execute the Consent.
The CALIFORNIA JPIA Bylaws permit the independent judgment and action of your
Director (or Alternate) on this matter, so that admissions may be accomplished in a
timely manner. If your procedures require Council action on the matter, please
arrange for this item to be given special handling at your next council meeting.
Thank you in advance for your assistance in expediting the return of the consent
form by May 18, 1998. Please feel free to call me if you have any questions at (562)
467 -8717.
Enc.
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
4952 LA PALMA AVENUE. LA PALMA. CA 90623 TEL (562)467-8700 FAX (562)860 -4992 0001L,_;
CALIFORNIA JPIA
4952 La Palma Avenue, La Palma, California
c A i e o R N i A (800) 229 -2343 • Fax (562) 860 -4992
P [ • A
Voting Member: Moorpark
MEMBERSHIP CONSENT FORM
FOR THE CITY OF LA PALMA
The application of the City of La Palma for membership in the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, having been
duly considered and recommended by the Executive
Committee, is hereby:
( ) Approved
( ) Disapproved
Dated this 20th day of April, 1998.
Director
000,;
CALIFORNIA JPIA
MEMBERSHIP APPLICATION
000.000
REPORT OF PHYSICAL SURVEY
of
CITY OF LA PALMA
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L GENERAL INFORMATION
A. Date of Survey: March 18,1998
B. Participants in Survey:
1. For CALIFORNIA JPIA: Jon Shull, Assistant Executive Director
Patricia France, Senior Risk Manager
Marek Walaszczyk, Risk Manager
2. For City: Dan Keen, City Manager
Ron Kenny, Director of Rec. & Comm. Srvcs.
Robbeyn Bird, Finance Manager
Vince Giampa, Police Chief
Jeff Kirkpatrick, Police Captain
Ed Ethell, Police Lieutenant
Joan Hoesterey, Planner
Tami Piscotty, Sr. Management Asst.
C. Description of Applicant:
Located in northwest Orange County, the City of La Palma is known for
its high quality of services and excellent living conditions. Located on
the Artesia Freeway (State Route 91), just east of Interstate 605, the City
of La Palma's 1.5 square miles are comprised of a balanced mixture of
residential, retail, and business uses.
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The City of La Palma was incorporated on October 26, 1955, as a general
law city using the Council- Manager form of government. The Council
is made_ up of five members elected at -large to four -year, over - lapping
terms. The Mayor is selected annually by and among the Council
Members.
The city's current permanent population is approximately 16,000.
The city's 1997 -98 operating budget is $15,163,100 with a current
employment of 56 full -time employees, and 1997 -98 payroll of
$3,827,111. The city has its own police department. Fire Services are
provided by the Orange County Fire Authority. Programming for the
city's parks is handled by the city's recreation department.
La Palma's General Fund's five largest revenue sources are: Sales Tax
24 %, Property Tax 16 %, Utility Users Tax 16 %, Interfund Transfers 14 %,
and Vehicle License Fees 9 %. The General Fund's five largest
expenditure uses are: Police 55 %, Recreation 16 %, Administration
13 %, Public Works 4 %, and Finance 4 %.
During the survey, city staff displayed knowledge and concern about
risk management issues. This attitude was reflected in the physical
plant of the city which generally appeared to be well maintained and in
good working order.
IL CURRENT INSURANCE PROGRAM
The city is currently a member of the Orange County Cities Risk Management
Authority ( OCCRMA). The self- insured general liability and automobile
liability program has an occurrence limit of $2,000,000, at a retention level of
$150,000. An excess insurance policy purchased by OCCRMA provides
coverage from $2,000,000 to $32,000,000. Carl Warren & Co. provides claims
administration services for the city's liability claims. The estimated premium
for 1997 -1998 for claims in excess of the city's self - insured retention is $41,525.
The city self - insures for workers' compensation losses for the first $275,000 of
each loss. Coverage to $2,000,000 is provided with a purchased excess
insurance policy through OCCRMA. Colen and Lee provides claims
administration services for the city's workers' compensation claims. The
estimated premium for 1997 -1998 for claims in excess of the city's self - insured
retention is $5,123.
The city's property coverage is coordinated through Robert F. Driver, with
total insured values in the amount of $33,000,000. The premium for
1997 -1998 was $23,000.
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IIL EXPERIENCE AND LOSS DATA
General and Automobile Liability
The city has had very few liability losses over the past five years, averaging
seven per year. The cost of the city's losses over this same period has been an
average of $8,780 annually. This is notably low considering the city has its
own police department.
Workers' Compensation
The city's workers' compensation losses over the past five years have been
about average for a city which includes public safety within its scope of
services. The city has averaged sixteen claims per year with an average cost of
$68,502 per year.
IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS
A. Application Fee:
The City of La Palma has paid an application fee of $1,500.
B. General Liability Deposit:
The initial primary deposit covering the period July 1, 1998 through
June 30, 1999 was established at $49,914. The deposit was established
based upon a pro forma analysis of the City's claims history covering
the period July 1, 1989 to June 30, 1996.
C. Workers' Compensation Deposit:
The initial deposit for the July 1, 1998 through June 30, 1999 coverage
period was established at $113,298 at the $50,000 retention level. The
deposit was established based upon a pro forma analysis of the City's
claims history covering the period July 1, 1989 to June 30, 1996.
V. PHYSICAL INSPECTION AND COMMENTS
A. CIVIC CENTER COMPLEX
The Civic Center Complex was constructed in 1969. The building is
well maintained, includes a sufficient number of exits and is accessible
to the disabled. The parking lot is sufficiently lighted and maintained.
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B. CORPORATION YARD
The public works facility houses the city's maintenance and water
divisions. One of the city's two water wells is located at this facility, as
is the 2.5 million gallon reservoir. The second well and a 2 million
gallon reservoir is located at another location in the city. The
maintenance division is responsible for facilities and parks
maintenance, as well as minor street and sidewalk repair. Major
infrastructure projects are performed by contractors. The public works
facility demonstrated a commitment to good housekeeping.
C. PARKS AND PLAYGROUNDS
The City owns one park and leases another park facility located on
right -of -way owned by the Southern California Edison Company.
The Police Department routinely patrols both parks while they are
open to the public as well as after the facilities are closed.
Central Park
This facility has one softball field, two tennis courts, four basketball
courts, and two new playground areas. Play facilities are well
maintained and are regularly inspected for wear and damage by
recreation and public works employees.
El Rancho Verde Park
The city leases and maintains 22 acres of right -of -way from Southern
California Edison. Most of this area is used as passive park area,
however approximately one acre is dedicated to El Rancho Verde Park.
This facility is currently being reconstructed. Two new play areas are
being built which will include new equipment. The play areas will be
in compliance with the Americans with Disabilities Act.
D. STREETS AND SIDEWALKS
Streets appeared to be well maintained as well as having adequate
signs, pavement marking, and warning notices where appropriate.
During the course of the survey, no indications of roadway
undermining caused by surface drainage or dangerous conditions were
noted. All of the streets are incorporated into the city's seven -year
pavement management program.
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All road striping and pavement markings are repainted every two
years. Markings near schools are repainted annually. All city
employees including those in public works and the police department
are encouraged to immediately report dangerous conditions noted
while driving in the city.
A citizen complaint log is maintained indefinitely by the public works
department. Action taken to rectify the complaints are documented.
The sidewalks, footpaths, curbs and gutters on the streets as well as in
the parks observed during the survey had no noticeable uplift or other
dangerous conditions. Seam and crack sealing and pothole repair are
performed by city maintenance crews. Major repair, maintenance or
modifications are contracted on a bid basis to firms that have the
requisite expertise. State traffic control standards are utilized where
appropriate.
VI. WATER AND OTHER UTILITIES
The public works department manages a water production and distribution
system. Two water wells and two reservoirs are the major components of the
system. The water production and distribution facilities appear to be
relatively new and in good condition.
Sanitary sewer service is provided by the Orange County Sanitation District.
Electrical power is provided by Southern California Edison Company.
Natural gas is provided by Southern California Gas Company.
Park Disposal has responsibility for refuse collection and recycling services.
VII. FIRE DEPARTMENT
Fire protection and medical -aid services are provided by the Orange County
Fire Authority. One fire station is located in the city; directly adjacent to the
Civic Center Complex.
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VIII. POLICE DEPARTMENT
The City of La Palma has its own police department with total of 25 full -time
sworn officers and seven reserve officers.
The police department maintains a holding facility with a capacity for two
people. Inmates are kept there for no longer than six hours before they are
sent to Buena Park or County jail for further processing.
The police department also maintains one K -9 unit, which according to
department staff has caused no liability claims.
Policies have been developed and training has been implemented for "high
speed pursuit," "use of force," and various other high risk, low frequency
police activities.
IX SUMMARY AND EVALUATION
The city leadership understands and is committed to the concept of risk
management and is aware that hazardous conditions need to be evaluated
and addressed to reduce the city's exposure to risk /loss.
It is the CALIFORNIA JPIA staff's conclusion that the loss experience, physical
inspection, and interest expressed qualify the City of La Palma for
consideration for membership in the CALIFORNIA JPIA.
We also find that membership will benefit the city by providing reliable and
economical coverage, and it will be advantageous to the CALIFORNIA JPIA by
expanding its ability to spread pooled losses and costs.
X. RECOMMENDATION
It is recommended that the City of La Palma's application for membership in
the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY be approved with an initial
General Liability Program primary deposit of $49,914 and an initial Workers'
Compensation Program deposit of $113,298 for participation in the $50,000
retention pool.
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