1987 MIN JUN 02 - Laserfiche WebLink

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participate in a joint powers authority. Staff also informed the Council that upon a decision to join a JPA, the City would exercise its option to cancel the commercial Planet Policy. The cancellation would result in a $246,605 refund. The City's first year cost to join Independent Cities will not exceed $155,000 and will be covered by the Planet refund, leaving the City with a savings of $91,605. Second year savings are estimated to be $130,000, the difference being that first-year costs include several one-time fees, such as legal and admission fees. Staff recommends that the $91,605 savings be deposited in the Liability Insurance Re- serve Account in order to build up the insurance reserve. In summary, joining Independent Cities Risk Management Authority will provide the City with $10M Excess Liability Coverage vs. our current $3M commercial coverage and the City will realize a considerable savings in cost, $155,000 vs. $328,805. In order for the City to be accepted for membership in the Independent Cities JPA, the following requirements must be met: 1. An Actuarial Review (has been fulfilled) 2. A Financial Review (has been fulfilled) 3. Approval of ICRMA Joint Exercise of Powers Agreement. 4. Approval of Amendments to Trust Agreement and Liability Risk Coverage Agreement. Staff, therefore, recommends the City Council approve joining the In- dependent Cities Risk Management Authority at a not to exceed premium fee of $155,000; the Mayor be authorized to execute the Agreements Nos. 3 and 4 (as listed above), upon review and approval by the City Attorney and Staff; any monetary savings realized be deposited in the Self In- surance Reserve Account; and the City Manager be authorized to cancel the Planet Insurance Policy upon formal acceptance by Independent Cities Risk Management Authority after July 1, 1987, the official date of en- rollment into the Program. Moved by Councilwoman Garcia, seconded by Councilman Rehrer, approving recommendations as outlined with regard to Independent Cities Risk Management Authority Program. Unanimous vote. Mayor Gonzales commended City Clerk her time and efforts in putting all Gonzales also introduced Mr. Gordon who will be assisting the City. Ramos for the excellent report and of the information together. Mayor R. Davis, General Manager of ICRMA, CITY MANAGER'S REPORTS AND RECOMMENDATIONS: Press Conference City Manager Benest spoke about the Grand Opening of the new Price Club facilities, and stated that the City Council has achieved a 5