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HomeMy WebLinkAbout2021-06-22 - AGENDA REPORTS - JOIN CJPIA FOR GEN LIABILITY WC EQ COVERAGE (2)23 Agenda Item:12 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: June 22, 2021 ADOPTION OF RESOLUTIONS AUTHORIZING THE CITY OF SUBJECT: SANTA CLARITA TO JOIN THE CALIFORNIA JOINT POWERS AUTHORITY FOR THE CI EARTHQUAKE COVERAGE DEPARTMENT: Administrative Services PRESENTER: Andrew Adams RECOMMENDED ACTION City Council: 1. Authorize the City s withdrawal from the Special District Risk Management Authority (SDRMA) effective July 1, 2021. 2. Adopt resolutions authorizing the City of Santa Clarita to join the California Joint Powers Insurance Authority (California compensation insurance coverage through the California JPIA programs. 3. Adopt a resolution authorizing the City of Santa Clarita to apply to the Director of Industrial Relations, State of California for a Certificate of Consent to Self-Insure W Compensation Liabilities. 4. Authorize and approve Earthquake coverage for various City facilities with Arrowhead General Insurance Agency, Inc., brokered by Vinsa Insurance Associates. 5. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND The City of Santa Clarita (City) has been a member of the Special Districts Risk Management Authority (SDRMA) since 2005. SDRMA has provided the City with insurance coverage for Page 1 Qbdlfu!Qh/!87 23 r insurance needs since that time. As part of researching annual renewal options for the upcoming 2021-2022 period, the City obtained proposals from several other insurance pools to assess the options available. Insurance pools, also known as Joint Powers Authorities (JPAs), offer many advantages to insurance coverage and risk management practices that traditional insurance coverage does not offer, such as policy review, employee training, and facility and risk assessments. Risk pools help lower the risk of loss amongst its members by spreading the potential losses amongst its members. Staff obtained estimates for coverage from the following pools: California Insurance Pool Authority (CIPA), California Joint Powers Insurance Authority (California JPIA), Independent Cities Risk Management Authority (ICRMA), Public Risk Innovation Solutions & Management (PRISM), and Special Districts Risk Management Authority (SDRMA). The estimates included the totals for premiums as well as self-insured retentions (SIRs). An SIR is the dollar amount that must be paid by the insured before the policy will respond to a loss; they are similar in nature to deductibles. The chart below shows a comparison of the estimates received: Pool Location Premium General Workers Liability SIR Comp SIR CIPA - California Insurance Pool Newport Beach, CA $1,728,248 $ 300,000 $ 300,000 Authority California JPIA - California Joint La Palma, CA $2,036,500 $ 100,000 $ 250,000 Powers Insurance Authority ICRMA - Independent Cities Risk Irvine, CA $3,513,965 $ 250,000 $ 350,000 Management Authority PRISM - Public Risk Innovation Folsom, CA $3,881,600 $ 250,000 $ 250,000 Solutions & Management SDRMA - Special Districts Risk Sacramento, CA $4,492,735 $ 50,000 $ 250,000 Management Authority After a review of these pools and comparison of the SIRs, premiums, and overall offerings to the City in terms of safety trainings, risk management practices and experience working with municipalities, staff recommends joining the California JPIA program. The California JPIA was established in 1978 for the purpose of providing liability protection for its members. Today, they are one of the largest municipal self-insurance pools in the state of California, with over 123 participating agencies: 97 cities, 19 joint powers authorities, and seven special districts. The organization is currently managed by Chief Executive Officer of California JPIA, Jonathan Shull, who has been in his position since 2002. His responsibilities with the California JPIA include board relations, general administration, policy development, member communications, marketing, and external relations. In terms of financial stability, California 445,042 and $133,343,201, respectively. Members take an active role in determining the programs and services provided by California JPIA. Membership is governed by an appointed Board of Directors and an elected, nine-member Executive Committee, as well as two advisory committees, the Managers Committee and the Finance Officers Committee. These committees work together to review and approve California Page 2 Qbdlfu!Qh/!88 23 JPIA policies and practices, which are aimed at providing comprehensive and economical protection to its members from financial loss, reducing the amount and frequency of their losses, and decreasing the cost incurred in the handling and litigation of claims. As a part of joining the pool, the City is committing to three years of membership beginning on July 1, 2021, and ending on June 30, 2024. While annual insurance premium increases are California JPIA has conveyed to the City that new program members generally experience pricing stability over the first three years of membership and will not face material escalations until the total cost of all claims experienced during membership are substantially incurred. Even the incurred costs, however, would have to be markedly distinct from historical losses in order for noteworthy premium hikes to materialize. earthquake coverage options for various City facilities. Arrowhead General Insurance Agency, Inc., produced the optimal coverage package at a premium amount of $231,384 for one year. This option provides $35,000,000 of protection to $167,000,000 of highly-valued City property. ALTERNATIVE ACTION Other direction as determined by the City Council. FISCAL IMPACT The annual cost to join the California JPIA program is $2,036,500. Adequate funds are budgeted in the Risk Insurance Fund. There is no impact to the General Fund associated with these actions. ATTACHMENTS Resolution Approving Execution of the Joint Powers Agreement Resolution Approving the Excess Liability Protection Program Resolution Establishing Policy Delegating Basic Tort Claim Handling of Minor Claims Resolution Authorizing the City to Apply for Certificate of Consent to Self- Compensation Liabilities Page 3 Qbdlfu!Qh/!89 23/b RESOLUTION NO. 21- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING EXECUTION OF THE JOINT POWERS AGREEMENT CREATING THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY WHEREAS, pursuant to the provisions of Sections 990, 990.4, 990.8 and 6500 of the California Government Code, has been created by a Joint Powers Agreement; WHEREAS, Joint Protection Programs have been developed by the California JPIA pursuant to the provisions of said Agreement; WHEREAS, Article 22 of said Agreement provides for additional member to become parties to the Joint Powers Agreement creating the California JPIA and enter one or more Joint Protection Programs providing self-insurance and loss pooling; and WHEREAS, the self-insurance and loss pooling programs of the California JPIA, as well as its group insurance coverage programs, offer significant advantages to the City of Santa Clarita in terms of cost, protection, risk management and loss control advice and assistance, and entering such programs would be in the best interest of the City of Santa Clarita. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The City Manager of the City of Santa Clarita is hereby authorized and directed to execute the Joint Powers Agreement on behalf of the City of Santa Clarita binding the Member to the terms and conditions of said Agreement. The City of Santa Clarita understands and agrees that, by executing the Agreement, it will be bound by the term of the Joint Powers make deposits and deposit adjustments for joint protection programs it joins. SECTION 2. The City of Santa Clarita hereby joins the California JPIA, for a period of not less than three (3) years. SECTION 3. The City of Santa Clarita acknowledges and agrees to the provisions of Article 24 of the Agreement, which provides: (a) A Member that enters into this Agreement may not withdraw as a party to this Agreement and as a Member of the Authority for a three-year period commencing on the effective date of its membership. (b) A Member that enters into a joint protection program may not withdraw as a participant in that program for a three-year period commencing on the effective date of its participation in the joint protection program. Buubdinfou;!Sftpmvujpo!Bqqspwjoh!Fyfdvujpo!pg!uif!Kpjou!Qpxfst!Bhsffnfou!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO Page 1 of 2 Qbdlfu!Qh/!8: 23/b (c) After the initial three-year non-cancellable commitment to membership in the Authority or participation in a joint protection program, a Member may withdraw only at the end of any protection period, provided it has given the Authority a twelve-month written notice of its intent to withdraw from this Agreement and/or any joint protection programs in which it participates. SECTION 4. The City Clerk shall certify to the adoption of this resolution. th PASSED, APPROVED, AND ADOPTED this __ day of ________ 2021. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 21- was duly adopted by the City Council of the City of Santa Clarita th at a regular meeting thereof, held on the __ day of ________ 2021, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Buubdinfou;!Sftpmvujpo!Bqqspwjoh!Fyfdvujpo!pg!uif!Kpjou!Qpxfst!Bhsffnfou!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO Page 2 of 2 Qbdlfu!Qh/!91 23/c RESOLUTION NO. 21- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, TO AUTHORIZE AND APPROVE POOLING OF SELF-INSURANCE THROUGH THE EXCESS LIABILITY PROTECTION PROGRAM OF THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Sections 990.4 and 990.8 of the California Government Code, the California Joint Powers Insurance ; WHEREAS, the City of Santa Clarita has executed the Joint Powers Agreement, to become a member of the California JPIA; and WHEREAS, the California JPIA has established and administered a successful Liability Self-Insurance and Loss Pooling Program since April 1, 1978. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. Liability coverage for the City of Santa Clarita through the Excess Liability Program of the California JPIA is hereby authorized and directed effective July 1, 2021, for a minimum commitment period of three years, pursuant to the terms of the Excess Liability Program Memorandum of Coverage in effect at the time of any occurrence covered by the Memorandum of Coverage. SECTION 2. An initial annual contribution of $987,200, or such pro-rata part thereof as the California JPIA might determine for coverage of less than a fiscal period, for the Excess Liability Protection Program is approved and appropriate officers of the City of Santa Clarita are authorized to pay the same to the California JPIA. SECTION 3. The City of Santa Clarita will subsequently be required to make deposits and deposit adjustments as provided in the California JPIA Joint Powers Agreement. SECTION 4. The City Clerk shall certify to the adoption of this resolution. SECTION 5. That the City Clerk is directed to forward a certified copy of this Resolution to the California JPIA, 8081 Moody Street, La Palma, CA 90623. Buubdinfou;!Sftpmvujpo!Bqqspwjoh!uif!Fydftt!Mjbcjmjuz!Qspufdujpo!Qsphsbn!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO!UIF Page 1 of 2 Qbdlfu!Qh/!92 23/c th PASSED, APPROVED, AND ADOPTED this __ day of ________ 2021. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 21- was duly adopted by the City Council of the City of Santa Clarita th at a regular meeting thereof, held on the __ day of ________ 2021, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Buubdinfou;!Sftpmvujpo!Bqqspwjoh!uif!Fydftt!Mjbcjmjuz!Qspufdujpo!Qsphsbn!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO!UIF Page 2 of 2 Qbdlfu!Qh/!93 23/d RESOLUTION NO. 21- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, TO AUTHORIZE AND APPROVE POOLING OF SELF-INSURANCE THROUGHT THE EXCESS PROGRAM OF THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Sections 990.4 and 990.8 of the California Government Code, the California Joint Powers Insurance ; WHEREAS, the City of Santa Clarita has executed the Joint Powers Agreement, to become a member of the California JPIA; WHEREAS, the California JPIA has established and administered a number of successful Self-Insurance and Loss Pooling Programs for its members since April 1, 1978; and WHEREAS, there are significant financial and administrative advantages for the City PIA. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. coverage for the City of Santa Clarita through the Excess WProtection Program of the California JPIA is hereby authorized and directed effective July 1, 2021, for a minimum commitment period of three years, pursuant to the terms of the Excess Compensation Protection Program Memorandum of Coverage in effect at the time of any occurrence covered by the Memorandum of Coverage. SECTION 2. The City Manager or his/her designee of the City of Santa Clarita is authorized and directed to apply to the Department of Industrial Relations for a Certificate of Consent to Self-Insure , and to take such other actions as necessary to effectuate self- Santa Clarita. SECTION 3. An initial annual contribution of $519,900, or such pro-rata part thereof as the California JPIA might determine for coverage of less than a fiscal period, for the Excess Protection Program is approved and appropriate officers of the City of Santa Clarita are authorized to pay the same to the California JPIA. SECTION 4. The City of Santa Clarita will subsequently be required to make deposits and deposit adjustments as provided in Articles 17 and 21 of the California JPIA Joint Powers Agreement. Buubdinfou;!Sftpmvujpo!Bqqspwjoh!uif!Xpslfst“!Dpnqfotbujpo!Qsphsbn!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO!UIF Page 1 of 2 Qbdlfu!Qh/!94 23/d SECTION 5. The City Clerk shall certify to the adoption of this resolution. SECTION 6. That the City Clerk is directed to forward a certified copy of this Resolution to the California JPIA, 8081 Moody Street, La Palma, CA 90623. th PASSED, APPROVED, AND ADOPTED this __ day of ________ 2021. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 21- was duly adopted by the City Council of the City of Santa Clarita th at a regular meeting thereof, held on the __ day of ________ 2021, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Buubdinfou;!Sftpmvujpo!Bqqspwjoh!uif!Xpslfst“!Dpnqfotbujpo!Qsphsbn!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP!QBSUJDJQBUF!JO!UIF Page 2 of 2 Qbdlfu!Qh/!95 23/e RESOLUTION NO. 21- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ESTABLISHING A POLICY THAT DELEGATES BASIC TORT CLAIM HANDLING OF MINOR CLAIMS TO CITY MANAGER OR DESIGNEE AS AUTHORIZED BY GOVERNMNET CODE SECTION 935.4 WHEREAS, Section 935.4 of the Government Code of the State of California provides that a local public entity may authorize an employee of the local public entity to resolve a claim against the local public entity; and WHEREAS, the City of Santa Clarita has not determined to adopt such a policy. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The (City Manager or Designee) is authorized to take administrative actions necessary to resolve claims against the City of Santa Clarita that do not exceed $50,000 pursuant to the provisions of Government Code Section 935.4. SECTION 2. The City Clerk shall certify to the adoption of this resolution. SECTION 3. That the City Clerk is directed to forward a certified copy of this Resolution to the California JPIA, 8081 Moody Street, La Palma, CA 90623. th PASSED, APPROVED, AND ADOPTED this __ day of ________ 2021. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ Buubdinfou;!Sftpmvujpo!Ftubcmjtijoh!Qpmjdz!Efmfhbujoh!Cbtjd!Upsu!Dmbjn!Iboemjoh!pg!Njops!Dmbjnt!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP Page 1 of 2 Qbdlfu!Qh/!96 23/e STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 21- was duly adopted by the City Council of the City of Santa Clarita th at a regular meeting thereof, held on the __ day of ________ 2021, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Buubdinfou;!Sftpmvujpo!Ftubcmjtijoh!Qpmjdz!Efmfhbujoh!Cbtjd!Upsu!Dmbjn!Iboemjoh!pg!Njops!Dmbjnt!!)SFTPMVUJPOT!BVUIPSJ\[JOH!UIF!DJUZ!UP Page 2 of 2 Qbdlfu!Qh/!97 23/f RESOLUTION NO. 21- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, TO AUTHORIZE APPLICATION TO THE DIRECTOR OF INDUSTRIAL RELATIONS, STATE OF CALIFORNIA FOR A CERTIFICATE OF CONSENT TO SELF-LIABILITIES WHEREAS, pursuant to section 3700 of the California Labor Code, a Certificate of Consent to Self-Insure WCompensation Liabilities is required. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The City Manager of the City of Santa Clarita is hereby authorized and empowered to make application to the Director of Industrial Relations, State of California, for a Certificate of Consent to Self-compensation liabilities and representatives of Agency are authorized to execute any and all documents required for such application. SECTION 2. The City Clerk shall certify to the adoption of this resolution. th PASSED, APPROVED, AND ADOPTED this __ day of ________ 2021. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ Buubdinfou;!Sftpmvujpo!Bvuipsj{joh!uif!Djuz!up!Bqqmz!gps!Dfsujgjdbuf!pg!Dpotfou!up!Tfmg.Jotvsf!Xpslfst“!Dpnqfotbujpo!Mjbcjmjujft Page 1 of 2 Qbdlfu!Qh/!98 23/f STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 21- was duly adopted by the City Council of the City of Santa Clarita th at a regular meeting thereof, held on the __ day of ________ 2021, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Buubdinfou;!Sftpmvujpo!Bvuipsj{joh!uif!Djuz!up!Bqqmz!gps!Dfsujgjdbuf!pg!Dpotfou!up!Tfmg.Jotvsf!Xpslfst“!Dpnqfotbujpo!Mjbcjmjujft Page 2 of 2 Qbdlfu!Qh/!99