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HomeMy WebLinkAboutAGENDA REPORT 1990 1107 CC REG ITEM 08DBERNARDO M.PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tem ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk TO: FROM: DATE: SUBJECT: MOORPARK MOORPARK. CALIFORNIA City Council Meeting of Jai M E M O R A N D U M ITEM • p STEVEN KUENY City Manager CHERYL J.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 Honorable City Council Richard Hare, Deputy City Manag r� October 31, 1990 CONSIDER CITY OF TEMECULA'S MEMBERSHIP APPLICATION TO THE SCJPIA Temecula has requested membership in the Southern California Joint Powers Insurance Authority (SCJPIA) . A physical survey of the city was conducted by SCJPIA staff in September. They have recommended approval of the city's membership application. It is the Authority's expressed intention to use Temecula as an experimental site to develop a model safety /risk management program. Moorpark's SCJPIA director is the Mayor. The SCJPIA By -Laws permit the independent judgement and action of Mayor Perez on this matter so applications can be reviewed quickly. The ballot must be submitted prior to November 19, 1.990. The community incorporated December 1, 1989 as a general law city. The Mayor intends to vote affirmatively on this application allowing the Authority to assi,t _n -`he development of a model program. This report is provided as a courtesy to the City Council allowing an opportunity for discussion of this item if a member of council wishes to pull it from the consent calendar. A copy of the physical survey is on file in the City Clerk's office and in the council reading file. It is the SCJPIA Staff's conclusion that, though certain exposures exist, the collective efforts of the Council and staff, together with the Authority's risk management resources, will ensure a successful relationship that wi:1 be cf= benefit to both the City and the Authority. RECOMMENDATION Receive and file. 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 SO. ❑ CAL O SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY MEMORANDUM DATE OCTOBER 25, 1990 TO SCJPIA DIRECTOR - -- - -- - C/O CITY CLERK, SCJPIA MEMBER CITY FROM THOMAS M. BUTCH, GENERAL MANAGER SUBJECT APPROVAL OF MEMBERSHIP OF THE CITY OF TEMECULA The SCJPIA Executive Committee at their Regular Meeting of October 24, 1990 recommended the approval of the City of Temecula as a member of the Authority. Enclosed is a Membership Consent Form for the Admission of the City of Temecula, 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 Cour -icii action on the matter, please arrange that this item be gi'en special handling at your next Council Meeting. Thank you in advance for your assistance in expediting the return of the Consent Form by November 19, 1990. Please feel free to call this office if you have ary questions. MAILBAL.DOC RECEIVED - o Cr 2 6 1990 City of Moorpark 4952 LA ('.ALMA AVENUE, LA P - +L ^f �, ( _'f,'_IFC)R ,I.A 90623 0 (2 13) 4('2 -63; 2 SOUTHERN CALIFORNIA JOINT POWERS INSURANCE AUTHORITY MEMBERSHIP APPLICATION • t t R : s , REPORT OF PHYSICAL SURVEY OF CITY OF TEMECULA I. GENERAL INFORMATION A . Date of Survey: September 17, 11990 B. Participants in Survey: 1. For SCJPIA: General Manager; Tom Butch, Senior Risk Manager; Joanne Rennie, and Risk Manaeers Chuck Buquet, Patricia France, Dave Jones. 2. For City: Mayor; Ron Parks, Councilmembers; Sal Munoz, Pat Birdsall, Peg Moore, City Manager; David Dixon, Chief Finance Officer; Mary Jane Henry, Chief of Police; Rick Sayre, Sergeant; James Domenoe, Battalion Fire Chief; John Winder, Manager of Information Services; Joe Hreha, Deputy City Engineer; Doug Stewart and Planning Department; Gary Thornhill. C. Description of Applicant: Temecula is a predominantly residential community located approximately 85 miles southeast of Los Angeles and 60 miles north of San Diego. The boundaries generally extend from Murrieta Hot Springs and French Valley on the north to the Pechanga Indian Reservation on the south. The Santa Rosa Mountain Range forms the western boundary while the eastern boundary abuts Rancho California. Temecula is an Indian name translated to mean "where the sun shines through the mist ", and Indian tribes flourished there for thousands of years. At the turn of the century, y 904 Temecula gained a place of importance as a shipping point for grain and cattie. Walter Vail had migrated to California and purchased 87,500 acres which rye turned into a cattle empire headquartered in Temecula. Remains of some of the old holding pens and loading platforms can still be seen. It was at this time that cowboys ruled the roost and great cattle drives of the Vail and neighboring ranches took place. Temecula had become a cow town. The transformation from cowboy town came in two stages. The Vail Ranch was sold on December 4, 1964 to Kaiser Development Company and the 1 -15 corridor between Los Angeles and San Diego was completed in the early 1980's. The first stage of the transformation established Temecula as a balanced, master- planned community. The land boom of subdivided real estate began. The second stage made the growing community accessible to business and new residents, both looking for clean air and an attractive environment. With over 600 employees in the Temecula Valley, jobs can be found close to home. Manufacturing firms in the area include: Hudson Oxygen Company, Bianchi Leather Products, International Rectifier, Advanced Cardiovascular Systems, Professional Hospital Su ?ply, Moore Business Forms, and Channel Commercial. The commercial acreage is developed with uses designed to serve residents of the Temecula Valley Region. Single family residences are the predominate housing element, with an approximate ratio of 80% single family to 200110 multi - family residential, which traditionally represents a desirable residential ratio. Temecula is an upscale residential community of approximately 31,000 situated among hills and valleys covering ti6 square miles located along Interstate 15, a major transpor-ation Corr Tor that runs from the Mexican border through Utah. The City was incorporated December 1, 1989 as a general law city with a council/manager form of government, and is the recipient of planning developed by the county of prier to cityhood. Temecula is now approximately 35 °-o fully developed with a considerable number of active private bevelopmen pro,ects (county approved) engaged in construction that will add to the approxin ately 10,000 housing units already in place. At city buildout, the pc,Dulation is Projected to be 140,000 residing within 28,000 dwelling units. D. Agencies of City for which insurance coverage is requested: At this time there are no other city agencies. As the city develops operations, a Redevelopment Agency may bE, formed. Ik, - =CURRENT ANSU.RANCE PROGRAM A. General _ pn_d- Automobile Liability Coverage: City has automobile and general liability coverage with Western Heritage Insurance Company and Financial Indemnity Company respectively, on an occurrence basis. There is also a Public Officials Errors and Omissions policy written on a claims made form. Current costs and coverage are as follows COVERAGE General Liability ._ LIMITS $1 million CSL per occurrence. $1 million aggregate $500 deductible CARRIER COST Western Heritage $ 9,585 Commercial $1 million CSL Financial Indemnity $ 6,182 Automobile $5,000 medical payments Company 30,000/60,000 uninsured motorist, comprehensive collision Errors & Omissions $1 million per occurrence American Empire $ 6,237 Claims Made Form $1 million aggregate Surplus Lines $2,500 retention Insurance Co. Excess Liability $4 million per rrelice $15,715 $10,000 SIR TOTAL $37,719 B. Workers' Compensation: The Workers' Compensation estimated insurance premium, through the State Fund, is $8,408 per annum, based on the premium paid for the period February 17, 1990 to August 1, 1990. C. Property: The City has property insurance, through Deans and Homer, in the amount of $65,000 for a written premiurr Df 5487 3 III. EXPERIENCE AND LOSS DATA: The City was part of Riverside County's eight community services areas. As such, we were unable to obtain specific loss history for this newly incorporated entity. There have, however, been five claims delivered against the City for injuries resulting from traffic accidents. It appears from the limited information available that these claims, for the most part, are within the jurisdiction of the State of California. All have been rejected by the City. It has come to our attention that the City has entered into contracts for services with Riverside County to provide maintenance of traffic signals and safety lighting, street maintenance and general services. All of these contracts in their present form require the city to hold the County of Riverside harmless without limitation, including the County's sole negligence. This exposure is not covered by the SCJPIA's liability program. The City has been notified of this problem and SCJPIA has suggested that either the contracts are negotiated to provide acceptable transfer of liability, or the contract be terminated and renegotiated to provide services with another entity. IV. APPLICATION FEE AND DEPOSIT COMPUTATIONS: A. Application Fee: The City has paid an application fee of $1.569 based on 2.5 11,0 of the initially established annual liability depcsit. B. General Liability Deposits: The initial primary liability deposit was established at $62,763 based upon review and evaluation of underwriting material provided by the City prior to the field survey. This material was generally limited to payroll, budget, commercial insurance coverage and general exposure information from a_ brief period of time following incur -K —ati -)ii During the field survey, it was u-- served that the City is in the very early transition stages from county public works planning and maintenance and very dependent upon county and other contract service providers for municipal services. Based upon field survey ocservations and current assessment of comparable coverage factors, are increase in the primary annual deposit to $75,315 is warranted in orcer .,�) m.aintair consistency with established SCJPIA underwriting standards The excess general liability annul deposit will remain at the amount previously established, S28 C and reflects the equivalent of 1 -3 %4 of payroll 4 C. Workers' Compensation: The City will consider participation in this program in the near future. Council's expressed interest is in placement of all programs with the SCJPIA. V. PHYSICAL INSPECTION AND COMMENTS: A. Civic Center/City Hall Complex: City Hall is temporarily located at 43172 Business Park .Drive in premises leased from Windsor Par hers. The buildings are of recent construction and have adequate parking spaces. All exierna areas are well maintained and attractively landscaped. The housekeeping, maintenance and general appearance of the City offices were superior with no hazardous conditions /activities observed. The City owns three vehicles; one van and two sedans B. Corporation Yard: There are no facilities at this time. C. Parks and Playgrounds: The City has two parks. Sam Hicks Monument Park is located at the north end of Old Town Temecula. It has playground equipment of good quality and is in good condition. The Sports Park at Margarita Road and Pauba Road is in the very early stages of development, as evidenced by the lack of continuity between the recreational elements observed at the opposite ends of the facility. This park could be a great asset to the community and will be a challenge to the City. The playground equipment that is presently installed is new, of good quality and design and in suoerior condition. D. Streets and Sidewalk 1 ) Street Design and Maintenance: There are seventy -eight miles of u;ty owned streets. The City is in transition from a quiet rural community to a oustling town with substantial commercial developments. The streets in newer residential areas co have adequate road widths and sufficient sidewalks for anticipated traffic needs. However, where these coordinate with older streets that `,ave no sidewalks or pavement markings, they could be hazardous and attention must he paid in the near future to avoid problems The City is aware of these needs anJ does have a pending program to improve pavement markings at a number of locations throughout the City, and there are three assessment districts set up t, improve heavily used highways. Conditions should change for the )etter as the infrastructure matures. 9 In the established areas of Old Town the curbing is of rolled asphalt and streets are narrow which contributes to the old world atmosphere of the pioneer days. As Temecula has considerable tourist trade, no modernization is contemplated, as it would destroy the general ambiance. 2) Traffic Controls, Lights and Signing: The signals observed were in good condition, but inadequate for present population. The City has recognized these deficiencies and has brought in civilian traffic control officers at crucial 4 -way stop intersections to direct traffic, until signals can be installed, Lighting is good in newly developed areas but future needs should be coordinated as building progresses. Signing was not greatly in evidence; the City should consider a uniform signage policy as well as delineation or, rcadways adjacent to new construction so that there is clear indication for char ng oad conditions. 3 ) Lanes and Crosswalks: The crosswalks observed were adequate. �,ontinued attention should be paid to the street marking program as population increases. 4) Trees: Maintenance of trees on arteriais and thoroughfares is through contract with the County of Riverside. They aiso provide upkeep on bike and hiking trails within the city limits and are responsi,le fc) slope maintenance in open areas and adjacent to main thorouchfa =. s. 5 ) Sidewalks: Sidewalks in new business and residential developments are very adequate. As it grows, the City will attenc 1,, der roads that will need sidewalks as population growth expands. E. General Comments: This is a city in transition. It Dresently experiencing growing pains, but with strong direction is capabie .> great potential. There appears to be active interest from local fire service, law enforcement and council members that should make Temecula a city h a aright future. With the City's management is commitment to an active risk management program to guide the city duri :y it's early development, the result will be a safe and beautiful city for the 3 VI. V11 WATER AND OTHER UTILITIES: The City does not operate any utility services. Utilities are provided by the following: Water /Sewer: Rancho California Water (714) 676 -4101 Natural Gas: Southern Calif. Gas Co. (714)889 -9711 - Electric: Southern Calif. Edison Co. (800)442 -4950 Telephone: General Telephone Co. (800)482 -6711 Disposal: H.B.J.J. Inc. (714) 943 -4566 Medical aid Inland Disposal Inc. (800) 874 -7774 TCTA- Suburban Disposal (714)676 -6770 Western Waste Disposal (714)724 -5630 Canyon Lake Disposal (714)244 -3299 FIRE DEPARTMENT: Fire protection for the City is provided under contract with Riverside County Fire /California Department of Forestry currently operating out of two stations within the city limits. Current fire stations: Temecula Fire Station #12 28330 Mercedes Street Rancho California Station #73 27415 Enterprise Circle West Station #12 has two Type 1 fire engines and one Rescue Squad /Fire Support vehicle staffed by a minimum o" three persons and volunteers. They also have two type 3 state fire engines s;rffed wits- four persons per unit during the approximately 8 month fire sEa , r Station r73 has two Type 1 firF engines staffed by a minimum of three persons and volunteers. In January 1991 a Kovatch /LYI ladder truck will be added that will be staffed by ar additional four persons. The acministrative cadre for the contract consists of two battalion chiefs, one fire prevention captain speciali: and two fire safety inspectors. - Total Einercencv R ; ? <;- p �1 '89 to Types Of RAannnca Nurnt,pr Percentao�s Initial attack fires 43 17% Fire menace standby 46 6% Assist and cover 82 22% Public service assist 27 3% Medical aid ; 2.1 % TCTA- ,- 100% i 'This number is the total responses for both stations including responses outside of city limits under mutual aid. Responses within city limits were 588 (71%) and a city limit response breakdown was not available. The State Insurances Services Office has established an ISO Rating 4/9 for existing Temecula fire protection ieveis. While this is an acceptable service level as the rating system range is from a 1 (excellent) to 10 (poor), it is anticipated the completion of the new stations will result in a 3/8 rating for the City. VIII. POLICE DEPARTMENT: Police protection is provided through contract with the Riverside County Sheriff's Department -Lake Elsinore Station. The City currently has an on -site Captain and Sergeant at City Hall serving as a transition team, pending establishment of a police station within city limits. The City's fiscal year 1990 -91 budget for contract law enforcement is 33.1 million and provides for 29 sworn officers. 6 community service officers, 2 support staff positions and equipment needed for contract operation. December 1989 through August ,?90 Snforcement Index: 26 (3.327 citations for ha_ardous acts issued, divided by 85 injury accidents). This index Ratio is average for a fully operational police department and indicates a very aggressive traffic enforcement program by Temecula's limited traffic enforcement units Despite the fact that Temecula's law enforcement staffing is in an early transition stage, the Riverside County Sheriff's Office is providing efficient law enforcement service to tree c . under the provisions of their contract. IX. UNUSUAL CONDITIONS AND EXPOSURES: Temecula lies in a valley to the east of Rancho California and is bisected by Interstate Highway 15. Old Town - emecula and the majority of business development is to the west of Highway 15 on the valley floor along Murrieta Creek. Much of the retail proper: is immedialely adjacent to the Highway on the east with residential propFrties ccn,inuiFg over a range of low hills and canyons. State Highway 79 runs through the City from Murrieta Hot Springs to the north, continuing in an easterly direction initially, through Julian. State Highway 6 branches off, SR 7 � 1� ,­e south -o Pala and Pauma Valley. Extensive grading has been do-ie i two large areas. One to the south of Route 79 south, to the northeast of Faia Zoac and the other to the east of P�/arcarita Road south of Paiba Road. 11 wry_ , I-,e prudent to exclude coverage for earth movement as the topography of these areas has been drastically altered to benefit the influx of land developers. Temecula does have traffic problems due to increased growth in a short span of time. The city is well aware that the narrow two lane roadways which were sufficient for a sleepy rural community are no longer adequate for the explosion in population. Commercial and residential growth put particular pressure on some intersections, and this coupled with tourist trade, contributes to considerable congestion during peak traffic hours. Temecula has adopted a pro- active approach to mitigate the problem with the innovative use of civilian traffic control officers at these locations which does ease the congestion, pending Cal -Trans approval of significant improvement. X. PUBLIC AND STAFF ATTITUDES: A. Public: The City is extremely clean, free of graffiti and shows pride of ownership by the residents. B. Staff. Attitude was extremely cooperative and anxious to offer help to the Authority in any way possible. All were eager to contribute to the growth and development of Temecula. SCJPIA Staff met with all department heacs and four of the five elected officials. Staff and Council had done considerable research into alternatives to conventional insurance coverage and of the numerous municipal JPA's, had selected the Authority. The reasons given were the opportunity to be active participants, as well as the range of services offered. XI. SUMMARY AND EVALUATION The new City of Temecula faces many of the same transitional difficulties of any emerging entity. The Counci is cognizant of the challenge that sudden growth and the changing nature of a community pose. The Council has identified potential liability expos: and taken innovative mitication measures to reduce loss potentia It is the SCJPIA Staff's conclusion that, though certain exposures exist, the collective efforts of the Council and staff, together with the Authority's risk M resources, will ens..: e a successful relationship that will be of benefit to both the City and the 4,uthority. XII. RECOMMENDATION: It is recommended that the application of the City of Temecula 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 $75.2'5 and an excess deposit of $28,0235. a X u- CAL. 0`1 SOUTHERN C,4.L-iF0RNlA CAL. JOINT POWERS INSURANCE AUTHORITY 4952 L A P At., � A AVE YJ E , '-A P A LX A, CA 9u623 4 .1 Ir 0 77 lc` P L A S 7 V D S) s 2, rn C 17 Y 7 eMeCL!;-z P.O. Scx David Dix o n same 7 L —TY Mary are '-.eriry F Y H-NSUS K. cf' Full T`r- C 'I e 7- c Policemen 7 (7720) p i It ot s 4 2 Other e s i c r as.) (PROJECTED FULL TIME EMPLOIEES AS OF 6/30/91) 51 U "7 r ;,rl;z o Pace Two " c. 'W"a -v _s Cr 'rater F r r:t rc;p4 Y tt- -.`_� 0 t- C;ty owrE- d Cem -eter es 0 c . City IP rC acts ✓rc": ss 3r e• Ci`y parks End P ac,— 5:a__ =s r.uti 7 iu71- .s CQ -.j7:i ty Cprli pry 1 k. .- `r,cs L = - =ed to C`7_;-s by City CCnStru_t All t'n r LL, ar C. City Owned nos.it?1 Y• LfT�FrCiVrl� Q� ary Puo� _ Suer u.str iC — Ij 4 !i'ri ?uses ' -lumber) ar 3/�6/E8 Underwriting information PageTb,ruee �t ' S. AL�I0 015.LE :n LS i JhES: jy �j.�4 p.. �C 1��1- : ., S csen _r • rol-c° n J ^CI Cc ;trier - c: t C omm- a l ramel Vans �S..UC r�_�.s -_ V"r' 0 1c r al '? - r -rJ_K _e - ^ +� Ir?i I�rS Cor_.ructicr _.�L= s75er` 6 • STREETS & TPA1 r i C : I i L S :P of �y r7Ur.tti' Ro3C'S C "a.e b. Traffic sig ^,al center starcFi,; lig�t_ (num5�r) C . Traffic s�onal curb ligh jmberl - Pace Four eets 7. --- D.:-' � A, ;, - � � - c 0 r. &- :Is C blur ing e an LI-- 7 "Eirl th= 7 ------------- CS b. F o u Size. ne, Lr-llL I TY S7:=.y A. kA 7L R Dc- FA NT Of em-plcyees 2. c a pa v/ ay -2 S I C r. t 7 3 /1 � / E :- r) c; p rw r i t i nq l r, f n r rr, a t i r) n Paze Fve —%r- .7 7 Vp e v: 7- 7- 7 77 � C, LT C ye S 0 V: =7- 7 E E tM r j57-7 71 C. OPEP,-.I 'W�ICP SUPPLY or V L :1 es e a S. e e s c r C .;:s:.. 2.71 C U r) er s 'I I u v r-ely or, he s e s a r s 0 ;E 7 e^ issuing p C) proposal Kill � -, c �, r s cr; e unless E e s D n s a e d %surer ed and he Quest I cm T I a 1 7 e I s s Z— j V a IV ic-I a exresures. CITY Temecu'= 7 T U PDS TIT:ON: s--:a-)Ce A-jV4 sc-r D A 7 CALENDAR YEAR PAYPOLL ;":PCPT CITY OF Temecula PAYROLL CLA557-FICAT70N (Cote €) 1 C;-ER 1 CAL ),--F 1 CE L ALL 0 —LOTS Cimpensa on 7 0. Corn e 7 s a on n it t 7 em C 0 :n 7 C S 1 G N ER,' L L 1.4%3 RO L I 12. M:� U U C7 e,- S C C e 7 C r, k r, S Utz L"'� 3f ccinc! 1 7 -71 14• 110LICE PAYRDLIL -em all swor'-, P�)l 7 7 1 CcrS s a on -I' n : 'I Li c; e;, - - p.us ary e M COMPIL'-et E : October 1, 1990 Projected Payroll 2/17/90-8/1/90 7/1/90-6/30/S 125,700 1;7 7Qn-. 183,490 _1,673,603 q 7 c- I . ( 4932 LA PAI MA AVENUE, LA PAI,WA , Ct : 90623 - (213) 402-6372