HomeMy WebLinkAboutMinutes - February 14, 2023 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, FEBRUARY 14, 2023
A.Call to Order / Roll Call
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
February 14, 2023, commencing at 7:00 a.m.
Present: Council Member Bregman, Council Member Khan, Council Member Nakanishi, Mayor Pro
Tempore Craig, and Mayor Hothi
Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed
B.Topics
B-1 Receive Presentation on City of Lodi’s Participation in the California Joint Powers Risk Management
Authority (CJPRMA) Risk Sharing Pool (CA)
City Manager Schwabauer introduced the item and introduced Risk Manager Beverly Jensen. Risk Manager
Jensen provided a brief overview of the items to be discussed during the presentation and introduced Tony
Giles, CJPRMA General Manager. CJPRMA General Manager Giles provided a PowerPoint presentation
regarding the California Joint Powers Risk Management Authority (CJPRMA). Specific topics of discussion
included driving forces, current members, current information on CJPRMA, Board of Directors, excess liability
coverage, property coverage, other coverage, mission statement, vision statement, goals, net position, and
projected ultimate pooled losses.
City of Lodi Risk Manager Beverly Jensen provided a PowerPoint presentation regarding self-insured
retentions. Specific topics of discussion included general liability premiums and SIR levels and CJPRMA paid
claims.
Council discussion ensued with City Manager Schwabauer, Deputy City Manager Keys, City Attorney
Magdich, Risk Manager Jensen and CJPRMA General Manager Giles regarding factors that affect bond
ratings, underwriting criteria, liability due to electric utility, annual reports by members to evaluate risk,
property coverage, infrastructure damage and liability, deductibles and premiums, assets and net positions,
claims covered by the City and claims covered by CJPRMA.
C.Comments by Public on Non-Agenda Items THE TIME ALLOWED PER NON-AGENDA ITEM FOR
COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.
None.
D.Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:21 a.m.
ATTEST:
Olivia Nashed
City Clerk
City of Lodi
Introduction to CJPRMA
February 14, 2023
Tony Giles, General Manager
Driving
Forces
•Insurance market in California
•Lack of affordable insurance
•CJPRMA started on February 3,
1986
•Pooling
–Shared goals
–No need to make a profit
–Not subject to global events
–Lower overhead
–Control of coverage
•Impacts of hard market
Current
Members
Cities
•Alameda
•Chico
•Fairfield
•Fremont
•Livermore
•Lodi (1986)
•Petaluma
•Redding
•Richmond
•Roseville
•San Leandro
•San Rafael
•Santa Rosa
•Stockton
•Sunnyvale
•Vacaville
JPAs
•LPFD
•NCCSIF
•SCORE
•YCPARMIA
CJPRMA
Today
•$1.82 billion payroll
•16 cities
•4 JPAs
•84 covered agencies
–56 cities and towns
–27 other (a wide variety –all in
YCPARMIA)
–1 county
•$56.7 million assets
Board of
Directors
•President (Bev Jensen)
•Vice President
•Each member has a seat on the
Board
–Director/Alternate
•Duties outlined in the bylaws
•Provides policy direction and
oversight
•General Manager reports to the
Board of Directors
Excess
Liability
Coverage
•Memorandum of Coverage is the governing
document
•$7.5 million in coverage pooled with CJPRMA
–Self-insured retentions (SIR) of $750k,
$1M, $1.25M & $1.5M
•$32.5 million in reinsurance excess of $7.5
million
–Purchase of commercial reinsurance
–Munich Re: $5 excess of $7.5M
–Applied: $2.5M excess of $12.5M
–Everest: $5M excess of $15M
–Chubb: $5M excess of $20M
–SCOR: $7.5M excess of $25M
–AWAC: $7.5M excess of $32.5M
Property
Coverage
•$400 million in limits.
•$250,000 deductible.
•$8.5 billion total insured value.
•~ $450 million total insured value for Lodi.
•Purchased through Lloyd’s of London,
domestic carriers and large excess property
program through our broker.
Other
Coverage
•Auto physical damage
•Pollution liability
•Cyber liability
•Drones
•Deadly weapon
CJPRMA Mission Statement
The California Joint Powers Risk Management Authority is a
member-directed excess liability risk retention pool that is
dedicated to protecting its members from catastrophic losses
and meeting the needs of its members by:
Providing comprehensive, stable, and affordable excess
liability coverage
Offering competitive and flexible coverage programs
Delivering quality risk management services
Preserving financial strength and solvency
Vision
Statement
Meeting the
evolving
needs of our
members.
CJPRMA Goals 2023-
2025
•Be in a positive net position by June 30, 2025.
•Create and implement a Communications Plan.
•Legislative involvement in tort reform.
•Create and implement a Member Engagement
Plan.
•Align staff with member needs.
•Evaluate the evolving needs of our members
and optimize services to meet their needs.
•Identify and assess future risks and create a
plan to address those risks.
Net
Position
•Current net position is
($33,351,480)
•Inadequate collection of premium
in past years.
•Change in the claim/litigation
environment.
–Police claims
–Social inflation
–Nuclear verdicts
•Current funding model
•Likely need for assessment.
13
CJPRMA Projected Ultimate Pooled Losses
$0
$5
$10
$15
$20
$25
$30
Millions@6/30/21 @6/30/22
+3% change for claims
through 2020/21
Questions?
City of Lodi
Council Shirtsleeve Meeting
February 14, 2023
Beverly Jensen, Risk Manager
Premiums and
Self-Insured Retentions
City of Lodi CJPRMA General Liability
premiums & SIR levels
$66,069 $93,834 $120,863 $148,370 $165,785
$223,568
$272,332
$372,280
$668,405
$808,006
$1,066,316
$970,054
FY 13/14, $500,000
FY 22/23, $750,000
FY 23/24 (DRAFT option),
$1,000,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18-19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
(DRAFT)
FY 23/24
(DRAFT
option)Liability Premium SIR
CJPRMA Lodi Claims Paid
.00
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
1989 1989 1990 1992 1994 1995 1999 1999 1999 1999 2013 2014
SIR JPA Paid Total
Total CJPRMA paid-$8,180,467 since inception
FY 13-14 to Present-City Premiums Paid $2,939,512
FY 13-14 to Present-CJPRMA Claims Paid $3,929,169