HomeMy WebLinkAboutMinutes - January 10, 2012 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 10, 2012
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, January 10, 2012, commencing at 7:15 a.m.
Present: Council Member Hansen, Council Member Johnson, Council Member Katzakian,
Mayor Pro Tempore Nakanishi, and Mayor Mounce
Absent: None
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Receive Presentation by David Clovis, General Manager, California Joint Powers Risk
Management Authority (CM)
David Clovis, representing the California Joint Powers Risk Management Authority (CJPRMA),
provided a PowerPoint presentation regarding the CJPRMA and pooling. Specific topics of
discussion included the history of insurance pooling and CJPRMA, insurance market trends,
CJPRMA members, memorandum of coverage, limits, total member payroll, liability rates, Lodi
net cost and benefit, property program, total insured values and rates, and added services.
In response to Council Member Hansen, Mr. Clovis stated that, while there have been some tort
reform efforts made in California, they were largely unsuccessful due to opposing lobbying efforts
and California remains an uncapped state.
In response to Council Member Hansen, Mr. Clovis stated the CJPRMA pool does cover alleged
civil rights violations.
In response to Mayor Mounce, Mr. Clovis stated that, while Vallejo did file for bankruptcy, it
remains an active participating member of the pool because it is continuing to pay its premiums
and self-insured retention (SIR) and the bankruptcy itself has not impacted other pool members.
In response to Council Member Hansen, Mr. Clovis stated the City of Lodi has a $10 million per
occurrence program with CJPRMA with some limited exceptions.
In response to Council Member Hansen, Mr. Clovis stated by board action CJPRMA can drop a
city due to a high number of losses or significant negative impact on other members. He stated
the pool generally only accepts agencies into the program who have a better loss ratio than the
pool itself.
In response to Council Member Johnson, Mr. Clovis briefly described the make-up of the primary
pool participants, which generally consist of smaller cities pooled together into one group.
In response to Council Member Hansen, Mr. Clovis stated an agency's payroll is the primary
basis for the percentage payment in the pool.
In response to Council Member Hansen, Mr. Clovis stated assets are similar to cash on hand in
that it is what the pool uses to pay for losses based on a fiscal year.
Continued January 10, 2012
In response to Council Member Johnson, Mr. Clovis stated broker services are reviewed annually
when evaluating programs to ensure the pool is receiving the best service and rates.
In response to Council Member Hansen, Mr. Clovis stated natural disasters other than
earthquakes and floods are covered by the City's policy.
In response to Mayor Pro Tempore Nakanishi, Mr. Clovis stated that, while he is not sure of the
exact number, there must be approximately 70 other pools in the State of California. Mr. Clovis
stated larger cities are generally self-insured internally and counties are generally a part of the
California State Association of Counties Excess Insurance Authority pool because they carry a
higher risk factor with health services and other programs.
In response to Council Member Hansen, Mr. Clovis confirmed that ultimately it is the public
taxpayers' dollar that pays for the losses and the approximately $32,000 of insurance costs
annually for the City.
In response to Myrna Wetzel, Mr. Clovis stated insurance premiums for members in the pool do
vary based on the level of SIR and the payroll of the member, which is the primary factor used to
determine the pro -rata share.
C. Comments by Public on Non-Aaenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:00 a.m.
ATTEST:
Randi Johl
City Clerk
N
AGENDA ITEM SO
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Presentation by David Clovis, General Manager, California Joint Powers
Risk Management Authority (CJPRMA)
MEETING DATE: January 10, 2012
PREPARED BY: Risk Manager
RECOMMENDED ACTION: Receive presentation by David Clovis, General Manager, California
Joint Powers Risk Management Authority (CJPRMA).
BACKGROUND INFORMATION: CJPRMA was established in 1986 as a general liability insurance
pool for public agencies. During the 1980s, commercial insurance
carriers had withdrawn coverage for public agencies, forcing those
agencies to self -insure and join with other agencies to form
insurance pools in order to protect public assets. Today, CJPRMA provides coverage and services to
almost 100 public agencies. The City of Lodi currently participates in coverage programs for excess
general liability, property, boiler and machinery, and vehicle physical damage through CJPRMA.
Additional services are provided to the members through the Risk Management Program. These services
include a wide variety of training programs, audits of facilities and programs, and extensive consultation
services. The CJPRMA Risk Management Program is designed to supplement and enhance existing
member programs in order to increase their level of effectiveness.
General Manager Clovis will discuss the long term financial advantage of participation in insurance pools
as well as the added value of Risk Management services. Details on premium rates and historical
experience rebates will be provided.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE: Not applicable.
JisHamilton
Manager
APPROVED: %V \►
^Konradt Bartlam, City Manager