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HomeMy WebLinkAboutAGENDA REPORT 1990 0502 CC REG ITEM 08EMOORPARK ITEM 81.t. PAUL W. LAWRASON, Jr. Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember BERNARDO M. PEREZ Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: BACKGROUND HONORABLE CITY COUNCIL RICHARD HARE, DEPUTY CITY MANA E April 25, 1990 GENERAL AND AUTO LIABILITY DEPOSIT WITH THE SCJPIA STEVEN KUENY City Manager CHERYLJ.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer The City joined the Southern California Joint Powers Insurance Authority last July and agreed to participate in the Authority's general and automobile liability pool insurance program for a three year period. Each year the Authority reviews the experience of member cities and calculates a deposit required to administer the claims against the City for the year. The deposit calculated for the twelve month period beginning July 1, 1990 is $36,208. This deposit will be added to the City's initial deposit for nine months of fiscal year 89/90 of $27, 679 for the payment and processing of claims. The Authority will calculate the City's actual incurred losses and expenses at the end of FY 90/91 and will then determine if our costs exceeded these two deposits. In the event our costs do exceed the deposits next years deposit will have a retroactive cost adjustment applied. In the event our costs are less than what is deposited in our account the deposit will remain the same for next year. This deposit compares to the private carrier premium cost incurred by the City for the previous year of $106,118. It represents a savings of approximately $78,000 for one year. When we transferred from private insurance coverage to the Authority we paid a premium of $53,770 for tail coverage of lagging claims therefore it is necessary to appropriate additional funds in order to fund the Authority deposit for the next year. In subsequent years we will only have to 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 fund the general and auto liability deposit. The City Council would have to appropriate $36,208 from the general fund to Administrative Services and authorize the City Manager to submit the City's deposit to the Authority. RECOMMENDATION (roll call vote required) Staff recommends the appropriation of $36,208 from the general fund to administrative services (01.4.117.648) for general and automobile liability coverages and authorizing the City Manager to submit the City's deposit to the Southern California Joint Powers Insurance Authority. ;,lOORPARK, CALIFORNIA City Council Meeting of._.... 7- _ 199,0 ACTION: BY.GL� yam., SO. 0 SOUTHERN CALIFORNIA CAL. Q JOINT POWERS INSURANCE AUTHORITY llm V© E c FE TO: DATE: CITY OF MOORPARK APRIL 9, 1990 1990 - 1991 GENERAL & AUTOMOBILE LIABILITY PRIMARY & EXCESS POOL DEPOSIT PRIMARY POOL DEPOSIT: $ 27,900 EXCESS POOL DEPOSIT: $ 8,308 TOTAL AMOUNT DUE : $ 36,208 D E P O S I T D U E B Y J U L Y 1, 1 9 9 0 A 10% LATE CHARGE WILL BE LEVIED AGAINST THOSE CITIES WHOSE DEPOSITS ARE RECEIVED AFTER JULY 1, 1990 * * * * * * * * * * * * * * * * * GLPRI&XC.DOC 4952 LA PALMA AVENUE, LA PALMA, CALIFORNIA 90623 0 (213) 402-6372