HomeMy WebLinkAboutAGENDA REPORT 1992 0617 CC REG ITEM 08HITEMPe.L•
MOORPARK
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
TO: HONORABLE CITY COUNCIL J_ -, -<? ARK, ARIL, CA , Ir. C2N.A
y Council Meefng
FROM: RICHARD HARE, DEPUTY CITY MAMA R cf 1992.
DATE: JUNE 12, 1992 ACTION:
44��4�
SUBJECT: MEMBERSHIP APPLICATION TO SCJPIA
BULLETON By ��
Background
The by -laws of the Southern California Joint Powers Insurance
Authority allow 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 Risk
Manager Committee, Finance officer Committee, City Manager
Committee, and the Executive Committee. After review by all of
the standing committees, the membership is voted on by the voting
delegates from each member city.
The City of Bulleton is located in the Santa Inez Valley in Santa
Barbara County, 35 miles north of Santa Barbara. The city has 12
employees with a payroll of $413,000. The city was incorporated
February 1, 1992 an therefore does not have an individual loss
history, however, county records indicate only 2 claims over the
last 4 years.
The Authority staff recommended approval and all of the standing
committees voted to accept the application from Bulleton with a
total of $49,200 in deposits for general and auto liability
claims.
The Mayor serves as the City's delegate to the Authority and
would cast the City's vote. Mayor Lawrason has indicated that he
will support the membership of Bulleton. In the event any member
of the City Council wishes to discuss the Bulleton 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
Bulleton application are available for your review at the City
Council desk.
RECOMMENDATION
Receive and file.
June 12, 1992 C: \WP51 \REP0RTS \BULLET0N
SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
TO SCJPIA DIRECTOR
C/O CITY CLERK, SCJPIA MEMBER CITY
FROM THOMAS M. BUTCH, GENERAL MANAGER'
DATE MAY 28, 1992
SUBJECT APPROVAL OF MEMBERSHIP OF THE CITY OF BUELLTON
The SCJPIA Executive Committee at their Regular Meeting of May 27, 1992 recommended the
approval of the new city of Buellton as member of the Authority, subject to the following:
( 1 ) That all claims related to land movement be excluded.
(2) The initial primary deposit was established at $45,200. The development of the
deposit was based upon 80% of the projected annualized premium deposit for
primary, excess and catastrophic loss with CMIA, and .97% of annual payroll
figures for establishing initial deposits as approved and adopted by the SCJPIA
Executive Committee.
BUELLTON
Primary Deposit $ 45200
Excess Pool Deposit 4.000
Total Annual Liability $ 49,200
Deposit
Enclosed is a Membership Consent Form for the admission of the City of Buellton along with the
report of Physical Survey.
We are requesting that each City Clerk deliver the enclosed material 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
June 19, 1992. Please feel free to call this office if you have any questions.
Enclosures
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-- RECEIVED -
MAY 2 9 1992
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SOUTHERN CALIFORNIA
'
O JOINT POWERS INSURANCE AUTHORITY
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4952 La Palma Avenue, La Palma, Cardomia 90623
(310) 402 -6372 (714) 827 -3361 FAX (310) 860 -4992
•
MEMBERSHIP CONSENT FORM
FOR THE
•
.CITY OF BUELLTON
THE APPLICATION OF THE CITY OF BUELLTON
for membership - in Southern. California Joint Powers
•
Insurance Authority, having been duly considered and
recommended by the Executive Committee, is hereby:
Approved
Disapproved
Dated this day of 1992,
•
Delegate /Alternate
City
•
PLEASE RETURN BY JUNE 199 1992
•
MAIL BALLOT CONSENT DOC.
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REV: 5!7192
•
•
•
SO. SOUTHERN CALIFORNIA
CAL. O JOINT POWERS INSURANCE AUTHORITY
4952 La Palma Avenue, La Palma, California 90623
(310) 402 -6372 (714) 827 -3361 FAX (310) 860 -4992
MEMBERSHIP APPLICATION
REPORT OF PHYSICAL SURVEY
I. GENERAL INFORMATION
A. Date of Survey:
B. Participants in Survey:
of
CITY OF BUELLTON
April 21,1992
1. For SCJPIA: Thomas Butch, General Manager
Joanne Rennie, Senior Risk Manager
Patricia France, Risk Manager
David Jones, Risk Manager
2. For City: Robert Grogan, Interim City Manager
Howard Hanson, CSD General Manager
Chdsta Marks, Administrative Assistant
Helen Travis, Administrative Assistant/Deputy Treasurer
Bill Taylor, Mayor
Bill Olvera, Councilmember
Victoria Pointer, Councilmember
C. Description of Applicant:
The City of Buelfton is located in the Santa Inez Valley in Santa Barbara County, 35 miles
north of the City of Santa Barbara. Highway 101 bisects the City north to south, and
Highway 246 east to west.
The area was settled by Rufus Thomas Buell, bom in Vermont of English heritage. He and
his brother bought over 26,000 acres in the 1860's, establishing a fine working ranch, growing
grain and keeping horses and cattle. After the turn of the century, more settlers arrived and
the area grew. The community was named Buelfton - Buell's town. There was a proposal to
call it Buell; however, there already was a town of that name in Oregon, thus Buelfton.
At about the same time Anton Anderson and his wife arrived and opened a restaurant. Mrs.
Anderson served pea soup, a recipe she brought with her from her native France.
Eventually, the little business became Anderson's Pea Soup Restaurant, drawing over a
million customers a year.
Pena -1
The area is still rural, with many local businesses catering to visiting tourists. The City was
incorporated on February 1, 1992. It is a general law city, with a council- manager form of
govemment. Buellton, a city of 1.6 square miles, is primarily residential, with a population of
3,700 comprised mainly of single family residences. The main source of revenue is the
tourist trade, as the City is located on a main highway between Northern and Southern
California.
The City currently has 10 employees with a payroll of $362,043. The projected number of
employees for 1992/1993 will be 12, increasing the payroll to $413,315.
The City is in the process of developing a General Plan, which will be based on the existing
Community Plan. There is a possibility of downtown commercial development, with a
"contemporary Spanish" theme, allowing more area for vehicle parking and making access
saferforthe pedestrian. There are considerable areas still undeveloped; however, the
Council are proud of their fine community and will approach any expansion with caution.
11. CURRENT INSURANCE PROGRAM
The City is currently covered under the California Municipal Insurance Authority's (CMIA) risk sharing
and insured programs, for general and automobile liability, and public officials errors and omissions.
CMIA's coverage pools the first million and insures $4 million in excess of the pooled retention. The
City has $23,000 for the coverage which extends from February 1, 1991 through June 30, 1992. The
annualized premium deposit for primary, excess and catastrophic loss fund contribution would be
$56,449. The City does not have Workers' Compensation or property coverage.
The Commurdy Services District has continuing GVAL coverage through October 1, 1992 via the
Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA). The
deposit premium for the current period is $15,599. The District's property coverage is also with the
ACWA/JPIA for coverage period April 1, 1992 through April 1, 1993. The deposit premium is $1,953
on insured values of $1,389,251. The District provides for its workers' compensation coverage
through the California Special Districts Association, and has paid a premium deposit of $10,356.
Ill. EXPERIENCE AND LOSS DATA
A. General and Automotible Liability:
There is limited loss data available for the Community Service District. County records
indicate two claims over the past 4 years. The first claim involves a pedestrian struck in a
crosswalk at the intersection of State Hwy #246 and Avenue of the Flags, a County owned
and operated roadway. The county exercises no authority over the State controlled
intersection and as such, denied the claim. The County received a dismissal from the case.
The second claim (DOL 3/26/91) involves a traffic collision occurring in the median of Avenue
of the Flags. It is alleged that vehicular parking along the median obscures the line of sight.
The claim was denied. Case has a $25,000 loss reserve and $11,500 reserve for expenses.
A CHP report prior to the accident indicates that parking along the median area should not
be permitted. The County informs that subsequent to the accidentCounty engineering
prohibited parking along the median. The survey team observed parking along the median.
B. Workers' Compensation:
A review of Keenan Associates claims administration reports for the past 5 years show 4
claims with a cumulative value for all claims of $3,291.26. The majority of the claims are for
Page -2-
medical, with an average cost of $823 per claim. The city will consider SCJPIA participation
with its overall composite desposit rate of approximately $2.50 per $100 of payroll.
C. Property:
There was one loss in the CSD history filed in 1985 -86 for the loss of the roof on Reservoir #3.
The claim for $36,126.50 was filed against the contract engineering firm's coverage. No district
coverage was involved.
IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS
A. Application Fee:
The City has paid an application fee of $2,500.
B. General Liability Deposit:
The initial primary deposit was established at $45,200. The development of the deposit was
based upon 80% of the projected annualized premium deposit for primary, excess and
catastrophic loss with CMIA.
The excess general liability annual deposit was established at $4,000 based upon .97% of
the annual payroll.
Both percentage figures of annual payroll used for establishing initial deposits were approved
and adopted by the SCJPIA Executive Committee.
C. Workers' Compensation Deposit:
City participation in the Workers' Compensation Program was an expressed priority of the
Council. Staff has estimated a deposit calculation of $10,333 based on the accepted formula for
new cities; and find it compares favorably with the District's current premium deposit and excellent
loss history.
V. PHYSICAL INSPECTION AND COMMENTS
A. Civic Center/City Hall Complex:
The City Hall is owned and maintained by the City located at 107 West Highway 246. The
building previously housed the offices of the Community Services District prior to City incor-
poration. The housekeeping and general condition of City Halt was observed to be excellent.
No hazardous conditions or activities were observed.
B. Corporation Yard:
The City corporation yard, currently the Community Services District yard, was well main-
tained and enclosed by fencing. Vehicles and equipment were noted to be in good condition
and housekeeping was good. No hazards or deficiencies were observed.
C. Parks and Playgrounds:
None: The City does not own or maintain any parks or playgrounds. The Community
Services District has responsibility for maintaining a three -acre landscaped median on
Avenue of the Flags.
Panc% -'4-
D. Streets and Sidewalks:
I . Streets appear to be well maintained with adequate pavement markings and signs.
Curb and gutters appear throughout the main portion of the city. Some residential
areas have foregone curbs and gutters in pursuit of a rural atmosphere.
During the course of our investigation no evidence of roadway undermining caused
by surface drainage was observed. Some roads in the community have varying
grades. Crosswalks and lanes of travel are well marked with sufficient warning signs.
The city has 14.76 miles of streets within its 1.6 square miles. Approximately 2 miles
of state controlled highway pass through the city. Finally, 3 fully automatic traffic
signals, maintained by contract, operate within the city.
2. Sidewalks are adjacent to curbs, leaving walkways clear and offering additional fine
of sight for motorists and pedestrians at intersections. Sidewalks throughout the city
were observed to be in good condition.
VI. WATER AND OTHER UTILITIES
Water service is provided by the City Buellton through ground water wells. The City maintains 3
water reservoirs, ground types.
Sanitary sewer service is provided by the City of Buelfton providing collection and treatment for the
1.6 square miles of the City. The City's wastewater treatment plant capacity is .65 MGD of which the
City currently uses approximately .32 MGD.
Both the water and sanitary sewer services were provided by the Community Services District prior to
the City's incorporation and will continue to be provided by the City when the Community Services
District is merged with the City in July of this year.
Electrical power is provided by Pacific Gas & Electric. Natural gas is also available from Pacific Gas
& Electric, and GTE provides telephone service to the City. Solid waste disposal is provided by
Health Sanitation Service.
VII. FIRE DEPARTMENT
Fire protection and paramedic service is provided through contract with the Santa Barbara County
Fire District. The Fire District substation Is located within the City limits, across the street from City
Hall and adjacent to the City yard, which is approximately the center of the City.
Vill. POLICE DEPARTMENT
Police protection is.provided through a contract with the Santa Barbara County Sheriff's Department.
One 24 hour per day Patrol Unit is assigned specifically to the City of Buellton to serve the City's 1.6
square miles. The area is served from the Santa Ynez Valley substation located in Solvang,
approximately three miles east of Buelfton.
IX. PUBLIC AND STAFF ATTITUDES
A. Public:
The City of Buellton captures the essence of accessibility and service to its residents.
Incorporation was pursued to improve local control of services and promote growth and
development in the community. Citizens appear to be well satisified with the activities and
services provided/planned by the new city.
B. Staff:
The inspection team met with three members of the Council, District and City staff, and were
favorably impressed with the knowledge, courtesy and enthusiasm of personnel. They were
fully and completely responsive to our many questions and requests for information. Three of
the Councilmembers served on the Community Services District Board since its inception and
offer a great deal of insight and experience to the new City. The Council has placed
professional management and service at the top of their priority list.
X. SUMMARY AND EVALUATION
The city leadership 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 city's
exposure to risk/loss.
It is the SCJPIA staff's conclusion that the loss experience and interest expressed by the City
Council and City staff qualify the City of Bueltton 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 expandbng its ability to spread pooled losses and
costs.
Xl. RECOMMENDATION
It is recommended that the application of the City ofBuellton, for membership in the Southem
Caflfomia Joint Powers Insurance Authority. be approved, excluding coverage for soils or slope
movement, with an initial annual general liability primary deposit of $45,200 and an excess liability
deposit of $4,000 for a total annual liability deposit of $49,200.
tp/survey- bueltton
F-1
0
CALENDAR YEAR PAYROLL REPORT
CITY OF BUELLTON
CLASSIFICATION
NUMBER OF
FULL TIME EMPLOYEES
I. Clerical Office (8810) 4
2. Municipal Non - Manual (9410)
PAYROLL FIGURES
ACTUAL 19 9V ESTIMATED 1992/93
$ 155,296.47$22n ,n
3.
All Other Municipal
(9420) 6
176,433.95 185,254.95
4.
Firemen
(7706)
5.
Policemen
(7720)
6.
Zus Operators
(7382)
11.
*Construction worker
1
30,312.50
7:
Other (Designate Class)
( )
6438 , 1 14.34
12.
Constr. worker - On
special project
Temp empl. Deferred
Comp exempt.
TOTAL NUMBER OF FULL TIME EMPLOYEES 11
42
S.
TOTAL PAYROLL
WORKERS COMPENSATION PAYROLL
* ** $ 362,042.92$ 413,315.42
* ** - COPY OF 1990
IRS FORM W- I OR FORM
6560 MOST BE ATTA ® -
14.
IF W -3 or FORK! 6560 DOES NOT AGREE WITH TOTAL PAYROLL (8), INCLADE EXPLANATION
9.
Total amount withheld under employee Deferred
for all sworn Police Officers plus any deferred
Compensation' Plan.
$_ 24 671-72$ P4 , 798 92
10.
Compensation included in Item 8 paid to employees
assigned exclusively to operations excluded from
SCJPIA general liability coverage (i.e. hospital,
airports, etc.)
11.
GENERAL LIABILITY PAYROLL
386,714.64
(Items 8 + 9 - 10)
6438 , 1 14.34
12.
Imputed payroll for Volunteer Workers Covered for
Workers Compensation by Resolution of Council
N/A
No. 0 X $5.000 each.
$
$
13.
WORKERS COMPENSATION PAYROLL
(Item 8 + 12)
$ 362,042.92s 413,315.42
14.
POLICE PAYROLL (Compensation included in Item 8
for all sworn Police Officers plus any deferred
compensation included in Item 9.)
S
$
Completed by Helen Travis Title Deputy Treas•Tel.(805) 686 -0137
payrrept /dsk5 /rvsdl /90
June 1, 1992
CITY OF BUELLTON
Paul Laurason, Jr.
City of Moorpark
799 Moorpark Ave.
Moorpark, CA 93021
107 W. High%;ay - -6
P.O. Box 1819
Buellton, CA 934:--
805/686 -0137
FAX: 805/686 -008.6
The City of Buellton has requested membership in the Southern California Joint Powers Insurance
Authority. The Executive Committee Members have recommended our approval, which will be
submitted to you for your vote.
We respectfully request your approval for inclusion in the membership of the Liability Insurance
Pool.
Buellton is a newly incorporated City (February 1, 1992.) On July 1, 1992, we will merge with the
Buellton Community Services District to become a staff of thirteen, providing many necessary City
services.
We have a population of approximately 4,000 and an expected City Budget of $2,917,902
Although the City has no prior history of claims against it because it is new, we can report that
the Community Services District has been free of claims for a minimum of five years.
We look forward to the possibility of becoming a member City. If you have any questions, you
may contact our City Manager, Bob Grogan, who will be able to assist you by providing any
information you seek.
Thank you for your consideration.
Sincerely,
mof
ill raylor
Mayor, City of B ton
BT /cvm
RECEIVED -
JUN 0 5 1992