HomeMy WebLinkAboutAgenda Report - January 6, 1988 (73)C 0 u N C I L C 0 M M U N I C A 1 0 N
TO: THE CITY COUNCIL COUNCIL MEET! NG DATE NO.
FROM: THE CITY MANAGER'S OFFICE
SUBJECT: CONSIDER JO?�:ING CALIFORNIA JOINT POWER INSURANCE AGEWCY (CJPIA) FOR AUTO -
PHYSICAL DAMAGE COVERAGE
PREPARED BY: Assistant City Manager
BACKGROUND IlA70RIVIATM Through group purchase arrangements and high
deductibles ($15,000) the City of Lodi can purchase
property insuracce on selected pieces of equipment.
W have self insured this risk before primarily
because of the expense involved.
W now have the availability of this insurance at a
rate of $ .75 per $100. The cost of insuring $2,000,000 of equipment would be
$15,000 per year.
To our best recollection we have never lost a major
piece of equipment due to accident or fire. Whether or not we have been
fortuitous or the risk is minimal is anyone's guess.
After consultation with our insurance consultant it
was determined that we would have to experience a property loss in excess of
$30,000 to make this a viable option. Due to the fact we have not had the
loss of a major piece of equipment and the fact we do have some reserve funds
to replace a major piece of equipment if necessary. It is our recommendation
we continue to self insure our vehicles against loss.
Respectfully submitted,
rerryL. Glenn
Assistant City Manager
dLG:br
TXTA.07A COUNC301
. C1TY''ZOUNCIL
EVELYN M OLSON. ,tlavo:
JOHN R. (Randy) SNIDER
Mayor Pro tempore
DAVIDPo HINCHMAN
IAPO I S W PINKI RI(')N, Ir
FKLD h1. REID
CITY OFLODI
CITY HALL. 221 WEST PINE STREET
CAL L BOX 3006
LODI, CAI -11 ORNIA 952.11-1910
(209) 33.3-5634
TE I.ECOPIER "09) 33.36795
January 8, 1988
P -u'(4
THOMAS A PETERSON
City Manager
ALICE M. REiNICHE
pity Clerk
RONALD :%! S I F I N
City Attorn. y
Julius Scoggi ns
CJPIA
450 Main Street, Suite 201
Pleasanton, CA 94566
Dear Julius:
Per the phone call to our office today, this will confirm that the
Lodi City Council elected not to join the CJP.IA for auto -physical
damage coverage.
JLG : br
Cc; Ci`tX. Clerk:..
ACMLTR66
Yours truly,
-Jerry L. Glenn
Assistant City Manager