HomeMy WebLinkAbout2017-2261
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RESOLUTION NO. 2017-226
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
PROVIDE WRITTEN NOTICE TO THE BIG INDEPENDENT CITIES EXCESS
POOL JOINT POWERS AUTHORITY (BICEP) OF THE CITY OF SAN
BERNARDINO'S INTENT TO WITHDRAW FROM COVERAGE AND EXIT BICEP
WHEREAS, the City of San Bernardino became a member of the Big Independent
Cities Excess Pool (BICEP), a California Joint Powers Authority in 1988, which membership
currently consists of the City of Santa Ana, City of West Covina, City of Huntington Beach,
City of Oxnard, City of San Bernardino and City of Ventura; and,
WHEREAS, current BICEP structure requires each member to pay an actuarially
determined pure risk premium for shared coverage to $25 million. In addition to the
determined risk premium for excess coverage, there is also an annual administrative cost of
$96,000.00 for program administration services that is assessed to each member; and
WHEREAS. the City has experience rapidly escalating insurance premiums for
excess coverages in BICEP. Several factors have influenced this unfavorable condition and
has prompted staff to seek alternative insurance coverages. These factors are central to the
financial wellbeing of the BICEP program and include:
■ Loss performance from other BICEP members
■ Member assessments to offset costs
■ Utilization of program reserves to buy down member premiums
WHEREAS, the approval of this resolution authorizing the City Manager to provide
written notice to BICEP of the City's intent to withdraw from coverage and exit BICEP is
necessary to initiate the withdrawal and exiting process; and
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WHEREAS, in order to withdraw from coverage and exit BICEP by the end of the
2017-2018 fiscal year, the notice of intent to withdraw and exit BICEP must be delivered to
BICEP by December 2017; and
WHEREAS, BICEP coverages will continue in place until the termination of the
current policies on June 30, 2018; and
WHEREAS, Prior to the termination of the current policies on July 1, 2018, staff will
report and request action from the Mayor and City Council on the selection, purchasing,
and/or enrollment in alternative excess insurance options.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager of the City of San Bernardino is hereby authorized
and directed to provide written notice to the Big Independent Cities Excess Pool Joint Powers
Authority (BICEP) of the City of San Bernardino's intent to withdraw from coverage and exit
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
PROVIDE WRITTEN NOTICE TO THE BIG INDEPENDENT CITIES EXCESS
POOL JOINT POWERS AUTHORITY (BICEP) OF THE CITY OF SAN
BERNARDINO'S INTENT TO WITHDRAW FROM COVERAGE AND EXIT BICEP
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the
15 h day of November 2017, by the following vote, to wit:
Council Members:
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL
AYES NAYS
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x
x
XM
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x
X(S)
ABSTAIN ABSENT
Georgea i Hanna, CM(Y, City Clerk
The foregoing Resolution is hereby approved this 15'h day of November 2017.
--i' � Lae6'
R. Carey Dav' , Mayor
City of San Vemardino
Approved as to form:
Gary D. Saenz, City Attorney
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