HomeMy WebLinkAboutItem 4.10 Liability Insurance Pool Study (2) r'
CITY OF DUBLIN
AGENDA 'STATEMENT
CITY COUNCIL MEETING DATE: January 13 , 19$6
SUBJECT Participation In Alameda County Liability Insurance
Pool Study
EXHIBITS ATTACHED Letter from Mr. Joseph Tonda, Risk Manager City of
Fremont
RECOMMENDATION Authorize Partcipation in Phase I of the Study and
Authorize a $500 Budget Transfer from the Contingent
Reserve to an Insurance Professional Services Account .
FINANCIAL STATEMENT: Phase I is anticipated to cost $350. 00 depending on
the number of cities which elect to participate .
DESCRIPTION The Alameda County City/County Manager' s group has
formed a subcommittee to evaluate alternative approaches given the current
liability insurance problems . The subcommittee is comprised of Risk
Management professionals and Finance Directors .
The City of Dublin has been cooperating with the initial efforts of this
group in providing information related to claims and current coverage . The
Commitee developed a Request for Proposal and interviewed qualified
consultants who would be capable of presenting a comprehensive report .
Mr. Jeffrey Pettegrew, Public, Agency Risk Management Consultant was
selected . Mr. Pettegrew is familiar with public agencies and is Risk
Manager for the Contra Costa County Municipal Risk Management Authority.
The first phase of the project will provide the City with information to
make a decision on the City' s inclusion in a pooled arrangement . The
process will outline the composition of the insurance pool and the estimated
costs to each city. The cost of this phase is not to exceed a total of
$6, 000. It has been recommended that the cities wishing to participate ,
share equally in the cost of this phase . Mr. Tonda estimates that the cost
to each city should not exceed $350. Some of the cities in Santa Clara
County have expressed an interest in also participating in the study. This
allows those involved to share the cost over a broader base and may provide
advantages if an insurance pool is formed .
The second phase of the project will be for those cities which elect to
become part of an insurance pool based on the results presented in phase
one . This phase would include the actual development of the entity and
details related to the insurance pooling arrangement .
Given the uncertainties of the insurance market , Staff believes that it is
important to investigate any alternatives to providing liability insurance .
This study offers the ability to evaluate the City of Dublin' s participation
in a municipal insurance pooling arrangement at a minimal cost . Once the
results are available , Staff will present the City Council with a
recommendation on any further participation.
Staff recommends the City Council authorize participation in Phase I of the
Study and also a $500 budget transfer from the contingent reserve to cover
the City ' s share of participation.
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COPIES TO :
ITEM NO. p 10
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GE C 2 6 i395
City of Fremont
(415) 790-6880
Risk Management Department
39700 Civic Center Drive
P.O. Box 5006
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Alameda County City Managers
Santa Clara County City Managers
ALAMEDA COUNTY LIABILITY INSURANCE POOL STUDY
Here's an up-date on the insurance pool study.
Jeffrey Pettegrew, Public Agency Risk Management Consultant, and risk manager
for the Contra Costa County Municipal Risk Management Authority was selected
to do the study.
The study will consist of:
PART I - DATA GATHERING/RECOMMENDATIONS
This part will include needs assessment, data gathering, surveys,
interviews,education,; recommendations on the make up/composition of the
pool , the ,.program design/components of the program and estimated costs
to each city for its participation in the pool .
Based on the information that you will be provided in this part of the
study, you should be able to make an informed decision as to your city's
participation in the pool .
The cost for this part of the study is not to exceed $6,000.
PART II - IMPLEMENTATION
Those cities that decide to participate in the pool will then
participate in and pay for PART II of the project. The cost for this
part is not to exceed $2,500.
This part will include the design of the pool , preparation of the
agreement, by-laws, and insurance agreement; and, design of cost allocations,
rating formulas and premium distribution. This part may also include the
selection of the claims administrator, insurance broker and pool administration.
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The costs for each part of the study will be equally shared by all cities
participating. It is estimated participation in PART I will cost each city
approximately $350.
Please complete and return to me the attached form indicating if your city
will participate in the study. We will then calculate the PART I charge for
each city.
If you have any questions , please call me at 790-6881.
JOSEPH J. TONDA _
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cc: Standing Committee