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HomeMy WebLinkAboutAGENDA REPORT 1994 0216 CC REG ITEM 08JITEM- City of Moorpark Agenda Report IG� TO: The Honorable City Council — FROM: Richard Hare, Deputy City Manager DATE: February 4, 1994 (CC. Mtg. of $ 6/94) SUBJECT: CONSIDER MEMBERSHIP APPLICATION TO SCJPIA OF THE CITY OF Nest Hollywood BACKGROUND The by -laws of the Southern California Joint Powers Insurance Authority allows interested cities to apply for membership in the Authority. Membership applications are reviewed by the Authority staff and a physical survey is conducted. The Authority's staff develops a report analyzing the application and the applicant city's condition. The report is then reviewed by the various standing committees within the Authority including the Finance Officer Committee, City Manager Committee, and the Executive Committee. After review by all of the standing committees, the membership application is voted on by the delegates from each member city. The Authority staff recommended approval and all the standing committees voted to accept the application from the City of West Hollywood subject to all claims related to soil or slope movement being excluded. The Mayor serves as the City's delegate to the Authority and it is the Mayor's intention to vote "yes" on the West Hollywood application for membership. In the event any member of the City Council wishes to discuss the West Hollywood application or the Mayor's intended vote, this item should be pulled from the consent calendar. A complete copy of the physical survey and the West Hollywood application is available for your review at the City Council desk. RECOMMENDATION Receive and file the report. C: \1NPWIN60 \CC.REIWI :MBER.WI I _ RECEIVES ago 01oorpa�k 1 TO FROM DATE SUBJECT SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 4952 La Palma Avenue, La Palma, California 90623 (800) 229 -2343 FAX (310) 860 -4992 lkct 114* 0/41 SCJPIA DIRECTOR Of M C/O CITY CLERK, SCJPIA MEMBER CITY Oo,, THOMAS M. BUTCH, GENERAL MANAGE JANUARY 27, 1994 APPROVAL OF MEMBERSHIP FOR THE CITY OF WEST HOLLYWOOD The SCJPIA Executive Committee at their regular meeting on January 26, 1994 recommended the approval of the new City of West Hollywood for membership in the Authority, subject to the following: ( 1 ) That all claims related to soils or slope movement be excluded; and (2) The initial primary deposit has been established at $141,000. The development of the deposit was based on a pro -forma utilizing the city's claims history. The annual excess general liability deposit has been established at $72,000, based upon .97% of the imputed annual payroll. Primary Deposit $141,000 Excess Pool Deposit 72.000 Total Annual Liability Deposit $213,000 Enclosed is a Membership Consent Form for the admission of the City of West Hollywood along with the report of Physical Survey. We are requesting that each City Clerk deliver the enclosed materials to the SCJPIA 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 SCJPIA Bylaws permit the independent judgment and action of your City's Director (or Alternate) on this matter, so that Admissions may be accomplished in a timely manner. If your City's procedures require Council action on the matter, please arrange that this item 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 February 18, 1994. Please feel free to call this office if you have any questions. s0. SOUTHERN CALIFORNIA CAL. JA OINT POWERS INSURANCE AUTHORITY 4952 La Palma Avenue, La Palma, Caldomia 90623 O (800) 229 -2343 FAX (310) 860 -4992 MEMBERSHIP APPUCATION REPORT OF PHYSICAL SURVEY of CITY OF WEST HOLLYWOOD 1. GENERAL INFORMATION: A. Date of Survey: October 13,1993 B. Participants in Survey: 1. For SCJPIA: Thomas Butch, General Manager Patricia France, Risk Manager David Jones, Risk Manager Jeff Jones, Risk Manager 2. For City: Abbe Land, Mayor Pro Tern John Heilman, Councilmember Babette Lang, Councilmenber Paul Brotzman,City Manager Bob Edgerly, Assistant City Manager Paul Arevaio, Director of Finance Joan English, Director of Department of Transportation & Engineering Gay Forbes, Director of Community Services Mark Johnson, Director of Rent Stabilization Andy Haenfler, Risk Manager C. Description of Applicant: The City of West Hollywood is a " corridor" city located approximately 8 miles northwest of the Los Angeles Civic Center. The City extends for a maximum east -west distance of about 2.9 miles and is 1.25 miles at its widest from north to south. it Is surrounded on 3 sides by the City of Los Angeles; on the north by the Hollywood Hills, on the east by the community of Hollywood, and on the south by the Fairfax District. The City of Beverly Hills abuts the city to the west. The configuration of the city along major east -west highways effectively makes West Hollywood a conduit for travel across the Los Angeles metropokan area. Page -1- The City occupies approximately 12 square miles. Of this, 98.7% is developed with urban uses that Include residential, commercial, commercial- marwfacturfng, parks, public and Institutional uses, and streets and alleys. Multiple -unit apartments and condominiums dominate the residential areas of the city; most of these areas exceeding densities of 45 units per acre. Commercial uses, generally are located in narrow strips along the principal east -west streets; Santa Monica Blvd, Sunset Blvd, Melrose Ave, and Beverly Blvd. The areas are home to a number of major indusMes serving the Southern California region; i.e., design furnishings, entertainment, restaurants, hotels, and specialty commercial, as well as kcal- serving uses. The City incorporated on November 29. 1984 becoming the 84th city in Los Angeles County. West Hollywood is a general -law city with a council- manager form of govemment. Council members serve four year overlapping temis with one council member selected by the other council members to serve as mayor. The population is approximately 36,000. The City contracts with outside organizations to provide city services and has 141 full-time employees. The current budget is approximately $40 million with salaries totalling approximately $7.5 million. The City realizes the value of risk management in a municipality and employs a full -time risk manager. The primary function of the job Is loss prevention and loss control. As an example of risk management involvement,00ntrac is are reviewed to ensure appropriate indemnification language Is used. The risk manager is presently working on a computer system that would simplify contract assem*, incorporating uniform wording and indemnificatbNhold harmless agreements. The majority of claims arise from oontractors activities; the risk manager, together with the third party administrator, transfers them to the appropriate responsible agency, thus reducing Incurred loss cost. IL CURRENT INSURANCE PROGRAM A. General and Automobile Liability: The City currently purchases a commercial general liability policy which includes automobile coverage from The Insurance Company of the West. Premium for the primary policy, In the amount of $1,000,000, with $150,000 self- Insured retention, is $95,196.00. The premium for Excess coverage In the amount of $9,000,000 is also through The Insurance Company of the West and is $53,253 annually. The total for the primary policy and excess policy Is $148,449.00. B. Workers' Compensation: West Hollywood is insured through the State Compensation Insurance Fund. Coverage 'A" provides benefits required by The State of California. Coverage "B" provides Employer's Liability in the amount of $3,000,000. The retention level is $150,000. The present premium is $193,100. C. Property Insurance: West Hollywood presently purchases coverage from The Chubb Group. The total insured value is $10,120,000 at a premium of $20,000. III. EXPERIENCE AND LOSS DATA A. General and Automotible Liability: The City made available to the SCJPIA five years of loss history. -2- In the most recent year, May 1992 through May 1993, 22 claims were presented with an Incurred value of $94,440. No claims paid to date. The reserves on all claims are low, the majority being in the "slip and fair category. In claim year 1991 to 1992, the total incurred loss was $42,480. There were 21 claims presented; 17 have closed, 4 remain open. No paid claims to date. More than half of the Incurred $24,780 is either reserved or paid expense indicating the City's efforts and interest In reduced claims costs. in claim year 1990 -1991, the total Incurred loss was $46,880. There were 38 claims presented and 8 remain open. Claims paid to date are $4,500. Expenses, both reserved and paid, are $28,180. In claim year 1989 -1990, the total incurred loss was $137,380. There were 51 claims presented and 2 remain open. Claims paid to date are $10,250. Expenses, both reserved and paid are $121,113. In claim year 1988 -1989, the total incurred loss was $87,990. There were 36 claims presented and 2 remain open. Claims paid to date are $1,500. Expenses, both reserved and paid are $81,489. There was also a review of the City's claims which fall outside the City's present insurance coverage. It does not appear they would impact the SCJPIA Special Liability Protection Program. There would be no negative Impact to the SCJPIA's costs. B. Workers' Compensation: Incurred losses were reviewed for the same five year time period. The City, through It's Risk Manager, has established a safety committee to review workers' compensation claims, and Is closely monitoring prevention efforts with a view to substantially reduce workers' compensation claims costs for the future. C. Property: The City has suffered some minor property losses over the past five years, a total amount of $6,230. IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS A Application Fee: The City has paid an application fee of $1,500. B. General Liability Deposit: The initial Primary deposit was established at $141,000. The development of the deposit was based upon a pro -forma utilizing the City's claim history. The Excess General Liability annual deposit was established at $72,000 based upon .979'0 of the annual payroll. Both figures used for establishing initial deposits were approved and adopted by the SCJPIA Executive Committee. -3- C. Workers' Compensation Deposit: City participation in the SCJPIA Workers' Compensation program may be appropriate for consideration in the future, especially coupled with the City's strenuous prevention/mitigation efforts. D. Property: It would be advantageous for the City to consider the SCJPIA Property Program in the future. The present rate is approximately 4 cents per $100 of insured values. V. PHYSICAL INSPECTION AND COMMENTS A. Civic Center /City Hall Complex: West Hollywood currently utilizes rented office space. The City has purchased a building which will be retrofitted to house City Hall. The new City Hall will be located at 8300 Santa Monica Blvd. B. Corporation Yard: AN services are contracted for. C. Parks and Playgrounds: Plummer Park - The principal center of recreational, cultural activity for the east side of the community. It's meeting rooms, tennis and basketball courts, and open spaces are heavily used by individual residents and groups. Additional tennis courts and other improvements will be added in the near future. The lighting system at the park was recently upgraded as part of the City's capital improvement project. West Hollywood Paris - This facility serves the recreational and cultural needs of the west side of the city. The park contains a swimming pool, auditorium, tiny -tot program for children and activities for some of the city's older citizens. The City's cable TV station is housed at the park. Hart Park - The house and approximately one -third acre open space was donated to the City by the estate of the actor, William S. Hart. The outside of the house was recently renovated with further Improvements awaiting the necessary funds. All of the parks were found to be well maintained, lighted, attractive, and in good condition with no rioted hazards. D. Streets, Sidewalks and Trees: Streets appear to be well maintained and have adequate pavement markings and signs. During the course of the survey no evidence of roadway undermining, caused by surface drainage was observed. Crosswalks and lanes of travel are well marked with sufficient warning signs. The City contracts for road maintenance repair. Emergency repairs are made within 24 hours. Traffic signal maintenance Is performed under contract with the City of Los Angeles, Los Angeles County, or by CALTRANS. Claims occurring on state or county owned roads are immediately referred to the appropriate agency. Sidewalks observed during the inspection were in good condition and had minimal uplift damage. Pape -4- Capital Improvement projects scheduled for 1993/94 include street repair, sidewalk restoration, street lighting upgrades, sewer upgrades and traffic right of way. VI. WATER AND OTHER UTILITIES Water service is provided through contract with the Los Angeles Department of Water & Power and the City of Beverly Hills. Sanitary sewer services are provided by the Los Angeles County Sanitation and Flood Control District. Electrical power is provided by Southem California Edison. Natural gas is also available from Southern California Gas, and Pacific Bel provides telephone service to the City. Solid waste disposal is provided by contract with Waste Management Inc. VII. FIRE DEPARTMENT Fire protection and paramedic service is provided by the Los Angeles County Fire District. VIII. POLICE DEPARTMENT Police Protection is presently provided through contract with the Los Angeles County Sheriff's Department. There is an Initiative petition being circulated to replace the Los Angeles County Sheriff with a city police department. If successful, the city would have an operational police department by July 1996. IX. SUMMARY AND EVALUATION The City Council understands and Is committed to the concept of risk management and is very aware that hazardous conditions need to be evaluated and addressed to reduce the cky's exposure to risk/loss. The City's commitment to risk management is further evidenced by the City staffs knowledge and enthusiasm toward the overall risk management effort of the City. It is the SCJPIA staffs conclusion that the loss experience and interest expressed by the City Council and City staff quality the City for consideration for membership in the SCJPIA. We also find that membership will be of advantage to the City by providing economical coverage, and will be advantageous to the SCJPIA by expandng its ability to spread pooled losses and costs. XI. RECOMMENDATION it is recommended that the application of the City of West Hollywood for membership in the Southern California Joint Powers Insurance Authority, be approved, excluding coverage for soils or slope movement, with an initial annual general liability primary deposit of $141,000 and an excess lability deposit of $72,000 for a total annual liability deposit of $213,000. IQ111930— s) Pa -5-