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HomeMy WebLinkAboutAGENDA REPORT 1991 1106 CC REG ITEM 08KMOORPARK STEM 8_K 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 TO: HONORABLE CITY COUNCIL - .' 'WA K, CAJ'O: <%A FROM: RICHARD HARE, DEPUTY CITY MANAGER V C,, Council Meefing DATE: OCTOBER 28, 1991 C ` 1991 SUBJECT: MEMBERSHIP APPROVAL FOR THE CITIES OF LAGUNA HILLS AND LAKE FOREST sy Background The by -laws of the Southern. Ctliz:ornia Joint Powers Insurance Authority allow interested citi +s to apply for membership in the Authority. Membership applications are reviewed by the Authority staff and a physical survey i:_� °onducted. The Authority's staff develops a report analyzing 1-_1<2 application and the applicant city's condition. The repot"* _s then reviewed by the various standing committees within the Authority including the Finance Officer Committee, City Man,cpr- vommittee, and the Executive Committee. After review by 1 of the standing committees the membership is voted on by th(� )t :ing �Ielegates from each member city. The Authority staff recommended approval and all of the standing committees voted to accept the applications from Laguna Hills and Lake Forest. Some reservation: were expressed concerning land movement in both cities and the two lakes in Lake Forest. Both land movement claims and claim- r-E� 1,Atod to the lakes have been excluded from coverage. The Mayor and City staff have rY� viewed the applications of both city's as well and do not concur with the assessments made by the Authority. The Authority previously had a policy of not allowing a city to join unless they had three years of operating history as an incorporated entity. In both :aces the cities applying will not officially incorporate until Decr. mber. It is felt by the Mayor and staff that the applications ;re premature and that a city government should be establishir:l and operating prior to their applications being accepted by t e {� *tl�rity. PAUL W LAWRASON JR Mayor BERNARDO M PEREZ SCOT ROY E. TAI LEY JR JOHN E. WOZNIAK Mayor Pro I em I li n,- m r CounnImember Councilmember Ported On F7ecyc�._-c: Paper The Honorable City Council October 28, 1991 Page Two The Mayor serves as the City's delegate to the Authority and casts the City's vote. Mayor Lawrason has indicated that he will not support the membership of either city. In the event any member of the City Council wishes to discuss the Laguna Hills or Lake Forest applications or the Mayor's intended votes, this item should be pulled from the consent calendar A complete copy of each city's application and their physical surveys are available for your review at the City Council desk Recommendation Receive and file. RH:LHLFAPP.MEM SOUTHERN -- CALIFORNIA JOINT POWERS INSURANCE AUTHORITY:_- s mss. y R MEMO - - P . AN D U M TO __ _ r SCJPIA' DIRECTOR, C/O CITY CLERK SCJPIA MEMBER "CtTY FROM THOMAS M_ BUTCH, GENERAL DATE - OCTOBER 24, 1991 SUBJECT MEMBERSHIP APPROVAL HILLS `AND LAKE F RE T (- MANAGER' . At their Regular , Meeting. on October 23, 1991, the SCJPIA Executive Committee recommended �; . the eapproval of the'nev gties o Laguna Hills and Lake Forest for membership in the "SCJPIA, s` - - -A subject to the folbt+iiing�` Y' 1 ? :That all claims related to land rno4 yment be excluded. 2) That all claims related to lakes in .ake Forest be excluded. 3) That their premium deposits reflect the 3% and .97% of annual payroll figures for;establishing initial deposits as approved and adopted by the SCJPIA Executive Committee Laguna H ils Lake Forest Primary Deposit $ 89,90C $ 114,000 Excess Pool Deposit ___2& o :;:Total'Annual 3, z ; Liability Deposit $ 118,13OC $ 151,000 Enclosed are Membership Consent forms for the admission of the cities of Laguna Hills and ke Forest along with the report of Physical Survey. La 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 By -Laws 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, 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 November 15, 1991. Please call this office if you have any questions. ATTACHMENT /w RECEIVED -- 0 C T 2 5 t991 City of Moorpark s0. SOUTHERN CALIFORNIA CAL O JOINT POWERS INSURANCE AUTHORITY 4952 La Palma Avenue, La Palma, California 90623 (213) 402 -6372 (714) 827 -3361 FAX (213) 860 -4992 MEMBERSHIP APPLICATION • i f f " t " REPORT OF PHYSICAL SURVEY of CITY OF LAGUNA HILLS I • GENERAL INFORMATION A. Date of Survey: October 1 1991 B. Participants in Survey: 1. For SCJPIA: Thomas Butch, General Manager Joanne Rennie, Senior Risk Manager Patricia France, Risk Manager David .ones, Risk Manager 2. For City: Melody Carnrth, Councilmember Joel Lautnschleger, Councilmember Craig Scott, Councilmember L. Allan Soundstad, Councilmember Randal J. Bressette, Councilmember Ron Bradley, Interim City Manager Bruce Channing, City Manager C. Description of Applicant: Date of Incorporation: December 20, 1991 The city of Laguna Hilts is situated in Southern Orange County along the Pack Ocean between the cities of Mission Viejo and Laguna Niguel. It occupies 5.2 square miles and Imes midway between Los Angeles and San Diego. The city of Laguna Hills has a rich heritage stemming from Indian and Spanish settlements in the area beginning in the mid - 1700's. Laguna Hills has developed sporadically over the past 30 years resulting in a pattern of smaller "planned communities "; each the product of a separate and distinctive planning effort. The city of Laguna Hills will officially incorporate on December 20, 1991. At that time the fire member city council elected in March 1991, will assume formal responsibility for the operation of the city government. It has a present population of 25,597, and has followed a well planned and controlled development program adopted by the County of Orange. The proposed city is now approximately 95 per cent developed. The city is predominantly residential in character with a mix of ommercial uses. The City COuncirS plan of action is to contract for the vast majority of necessary services n re emmeed a City Manager with many years of pubric service in California Municipal The incorporation election resulted in an 83 per cent vote in favor of incorporation. II. CURRENT INSURANCE PROGRAM A. General and Automobile liability Coverage: All current insurance programs are carried by the County of Orange. B. Workers' Compensation: None. Incorporation will take place on December 20, 1991. Adequate coverage for workers' compensation is available through the SCJPIA's Workers' Compensation program. O Property: Effective December 20, 1991, the city of Laguna Hills will not own any fatalities or equipment. In discussion with the city's interim City Manager, the city will initially contract for most services and lease facilities for offices and council chambers. Adequate coverage for personal property and automobile physical damage is available through the SCJPIA's All Risk Property Insurance Program. The city has expressed a desire to participate in this program. III. EXPERIENCE AND LOSS DATA Any prior loss experience is on file with the County of Orange. Specific data is not available for Laguna Hills and loss information cannot be broken out to accommodate this new city. In discussion with the County of Orange Risk Management Department, no claim with major impact could be recollected, or any claim frequency that would have any adverse effects. IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS A. Application Fee: The City has paid an application fee of $1,500. B. General Liability Deposits: The initial primary general liability deposit was established at $89,900. The development of the deposit was based upon 3% of annual city payroll as projected in the LAFCO incorporation study projecting the city's first three years of operation, $2,997,080. The excess general liability annual deposit was established at $28,900, utilizing the .97% of the projected payroll_ The 31Y* and .97% of annual payroll figures for establishing initial deposits were approved and adopted by the SCJPIA Executive Committee. C. Workers' Compensation Deposit City participapon In the SCJPIA Workers' Compensation program may be appropriate for consideration at some future point. The SCJPIA's overall composite "deposit rate" for workers' compensation is approximately $2.50 per $100 of payroll. V . PHYSICAL INSPECTION AND COMMENTS A. Civic Center/City Hall Complex: None. Currently the city plans to lease space in a commercial office building. B. Corporate Yard: None. According to discussions with the City Council, Interim City Manager and City Manager, the city will contract for public works services. C. Parks and Playgrounds: The city will take over nine developed park sites, 28.7 acres in total, from the County of Orange. The parks are generally small neighborhood parks, with an acreage size of 3.1 acres. The park sites visited appeared to be well cared for with no hazardous conditions or activities observed. D. Streets, Sidewalks and Trees. 1. Streets appear to be well maintained with adequate pavement markings and signs. Curbs and gutters appear throughout the main portion of the city. Some older residential areas have forgone 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 communfty have varying grades. Crosswalks and lanes of travel are well marked with sufficient warning signs. The city has 65.4 miles of streets within its 5.2 square miles. Approximately five miles of state controlled highway pass through the city. Finally, 44 fully automatic traffic signals, maintained by contract, operate within the city. 2. Sidewalks are adjacent to curbs, leaving walkways clear and offering additional line of sight for motorists and pedestrians at intersections. Sidewalks throughout the city were observed to be in very good condition and well maintained. 3 VI. WATER AND OTHER UTILITIES None- Government service which will not be a part of the city's responsibility. They will continue to be provided by other public agencies Water. El Toro and Moulton Niguel Water Districts. Electrical Power. Southern Calfomia Edison. Natural Gas: Southern California Gas Company. Telephone: Pacific Bell. Solid Waste Disposal: Deweys -Waste Management VII. FIRE DEPARTMENT Fire protection and paramedic service will be provided through contract with the Orange County Fire Department. Three fire department sub- stations are located adjacent to the city boundaries. VIII. POLICE DEPARTMENT Police services will be provided under contract with the Orange County Sheriff's Department. IX. PUBLIC AND STAFF ATTITUDES A. Public: As evidenced by voter turnout and support for incorporation, the citizens of Laguna Hills want responsive local government. One of the espoused goals for incorporation is development of community recreation facilities, such as baseball fields. The city is very clean and pleasant with no overt signs of graffiti or vandalism. Homes are well cared for and maintained. Pride of ownership is evident. B. Staff: The City of Laguna Hills will be administered by Bruce E. Channing, who has been with the City of Yorba Linda for the past 10 years, and is now Assistant City. H after a nationwide search. Mr. Channing has served as a Board Mem e was selected ber H the International City Management Association Foundation and on the E of the League of California Cities of Committee The Council elect is made up of professional people, all eager to develop city government responsive to the community's needs. X. SUMMARY AND EVALUATION The new city leadership understands the concept of risk management and is cognizant that certain potentially hazardous conditions, such as slopes and pubric roads need to be closely evaluated as to the parameters of acceptable risk. It is our conclusion that though certain exposures exist, the low loss experience, the well planned and developed nature of the community, and the interest expressed by City Council qualify the City of Laguna Hills for consideration for membership in the SCJPLk We also find that membership will be of advantage to the city by proving economical overage, and will be of advantage to the SCJPIA by expanding its ability to spread pooled losses. Xl. RECOMMENDATION It is recommended that the application of the City of Laguna Hills, for membership in the Southern California Joint Powers Insurance Authority be approved, subject to a coverage exclusion for land movement, with an initial annual general liability primary deposit of $89,900 and an excess deposit of $28,900 for a total annual liability deposit of $118,800. Labi lity Wsurvey- laguna hills s0. SOUTHERN CALIFORNIA CAL O JOINT POWERS INSURANCE AUTHORITY 4952 La Palma Avenue, La Palma, Caldomia 90623 (213) 402 -& 72 (714) 827 -3361 FAX (213) 860 -4992 MEMBERSHIP APPLICATION .. - -t. REPORT OF PHYSICAL SURVEY of CITY OF LAKE FOREST GENERAL INFORMATION A. Date of Survey: October 8, 1991 B. Participants in Survey: 1. For SCJPIA: Thomas Butch, General Manager Patricia France, Risk Manager David Jones, Risk Manager Joanne Rennie Sr. Risk Manager 2. For City: Helen Wilson, Councilmember Richard Dixon, Councilmember Tim Link, .;ouncilmember Ann Van Haun, Councilmember Marcia Rudolph, Councilmember Daniel Miller, Interim City Manager Craig Collings, Risk Management Consultant, ARM Tech. C. Description of Applicant: Date of Incorporation: December, 0, 1991 The city of Lake Forest is situated in Southern Orange County along the Pacific Ocean between the cities of Mission Viejo and Irvine It occupies 21 square miles and lies midway between Los Angeles and San Diego. The city of Lake Forest has a rich heritage stemming from Indian and Spanish settlements in the area beginning in the 1700's. Lake Forest has developed over the past 20 plus years in a pattern of small planned commu- nities, each the product of a separate and distinctive planning effort. There are more than 45 Homeowners' Associations with responsibility for maintaining the many private community streets, the landscaped slopes and medians as well as the two private man -made lakes and eucalyptus tree forest within the oaf s n - orporated boundaries. The city of Lake Forest will offi(,,e all, incorporate on December 20, 1991. At that time the five member city council elected in Mar :h 1991, will assume formal responsibility for the operation of the city government. It has a t)i. ;er t ;)ol)u {lion of 60,000, and has followed a planned and controlled development program adopted by the County of Orange. The proposed city is now approximately 85 per cent developed. The city is predominantly residential in character with a mix of commercial uses anc° light industrial- The City Council's plan of action is to contract for the majority of necessary services including planning and engineering services The City is currently recruiting for a permanent City Manager who they hope will be or, board by the first part of December. The incorporation election resuitee in a 85 pc: r cent vote in favor of incorporation. I1. CURRENT INSURANCE PROGRAM A. General and Automobile LiaNlity Coverage: All current insurance programs ar- carried by the County of Orange. B. Workers' Compensation: None. Incorporation will take place on December 20, 1991. Adequate coverage for workers' compensation is available through the SCJPIA's Workers' Compensation program. C. Property: Eff ective December 20, 1991, the city of Lake Forest will not own any facilities or equipment. In discussion with the city's interim City Manager, the city will initially contract for services and lease facilities for City Hall and council chambers. Adequate coverage for personal property and automobile physical damage is available through the SCJPIA's All Risk Property Insurance Program. The city has expressed a desire to participate in this program. III. EXPERIENCE AND LOSS DATA The County of Orange has reviewed their claim records and have found only one claim during the last five years that occurred within the limits of the new City of Lake Forest. The claim dated from 1988, a skateboarder was struck by two vehicles at the intersection of Trabucco Road and Ridge Route Drive. Liability was based on inadequate lighting at the intersection. The claim was settled recently for approximately $175,000. IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS A. Application Fee: The City has paid an application to e of $1,50(h_ B. General Liability Deposits: The initial primary general liability deposit was established at $114,000. The development of the deposit was based upon 3% of annual city payroll as projected in the LAFCO incorpora- tion study projecting the city's first Mhree years of operation, $3,820,000. The excess general liability arnu;i deposit was established at $37,000, utilizing the .97% of the projected payroll. The 3% and .97% of annual payre € figures fog establishing initial deposits were approved and adopted by the SCJPIA Executivt� ;a�n�7ittea C. Workers' Compensation Deposit: City participation in the SCJPIA Workers' Compensation program may be appropriate for consideration at some future point. The SCJPIA's overall composite "deposit rate" for workers' compensation is approximately $2.50 per $100 of payroll. V. PHYSICAL INSPECTION AND COMMENTS A. Civic Center /City Hall Complex None. Currently the city plans to IEAase space in a commercial building. B. Corporate Yard: None. According to discussions with the Interim City Manager the city will contract for public works services. C. Parks and Playgrounds: The city will take over thirteen developed park sites, 115 acres in total from the County of Orange. The parks are generally small neighborhood parks, with an acreage size of 8.8 acres, characterized as passive use parks. The park sites appeared to be well tared for with no hazardous conditions or activities observed. D. Streets, Sidewalks and Trees: Streets appear to be well maintained with adequate pavement markings and signs_ Curbs and gutters appear throughout the city. During the course of our investigation 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 has 95 miles of streets within its 21 square miles. Forty -three fully automatic traffic signals, maintained by contract, operate within the city. A distinctive characteristic of the city is the large number of privately owned and maintained streets in the various residential neighborhoods. Approximately one - fourth of the roads are privately maintained by the more than 40 Homeowners' Associations within the City This is a situation that will continue after the City's incorporation. 2. Sidewalks are adjacent to curbs, leaving walkways clear and offering additional line of sight for motorists and pedestrians at intersections. Sidewalks throughout the city were observed to be in very good condition and well maintained. There was no evidence of sidewalk lifting � ,r other hazardous conditions. E. Unusual Exposures: There are two man -made lakes within the City boundaries. The lakes are privately owned and operated by the respective Homeowners' Associations and are not open to the general public. Access to both lakes is only icroE s priv ite property and via private Association maintained streets. VI. WATER AND OTHER UTILITIES None. They will continue to be provided by other public agencies. Water: Los Alisos, Irvine Ranch, and El Toro Water Districts. Electrical Power. Southern California Edison. Natural Gas: Southem California Gas Cornpaf =y. Telephone: Pacific Bell, General Telephone Solid Waste Disposal: Deweys -Waste Mainagement. VII. FIRE DEPARTMENT Fire protection and paramedic service will be provided through contract with the Orange County Fire Department_ Four fire department sub - stations are located within the city boundaries. Vill. POLICE DEPARTMENT Police services will be provided under contract with the Orange County Sheriff's Department. IX. PUBLIC AND STAFF ATTITUDES A. Public: As evidenced by voter turnout and support for incorporation, the citizens of Lake Forest want responsive local government. One of the espoused goals for incorporation is development of community recreation facilities, such as baseball and soccer fields. The city is very clean and pleasant with no overt signs of graffiti or vandalism. Homes are well cared for and maintained. Pride of ownership is evident. X. SUMMARY AND EVALUATION It is our conclusion that though certain exposures exist, the low loss experience, the well planned and developed nature of the community, and the interest expressed qualify the City of Lake Forest 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 of advantage to the SCJPIA by expanding its ability to spread pooled losses. XI. RECOMMENDATION It Is recommended that the application of the City of Lake Forest, for membership in the Southern California Joint Powers Insurance Authority be approved, subject to a coverage exclusion for land movement and lakes, with an initial annual general liability primary deposit of $114,000 and an excess liability deposit of $37,000 for a total annual liability deposit of $151,000. tp /survey -lake forest