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CC - Adoption of a Resolution Providing Notice of the City of Culver City's Intent to Withdraw from the Independent Cities Risk Management Authority.
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Contact Person/Dept: Serena Wright/ Human Resources Department
Phone Number: 310-253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/12/15)
Department Approval: Serena Wright, Human Resources Director (11/11/15)
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RECOMMENDATION:
Staff recommends that City Council adopt a resolution provided notice of the City of Culver City's withdrawal from the Independent Cities Risk Management Authority (ICRMA).
BACKGROUND:
ICRMA is a risk pool which allows member cities to pool resources to purchase general liability, workers compensation, property, automobile physical damage, and other types of insurance coverage.
DISCUSSION:
The City has been a member of ICRMA for over 25 years, participating in the liability, workers compensation, auto physical damage, crime, and cyber insurance programs. The City joined ICRMA at a time when it was very difficult for cities to purchase stand-alone commercial insurance. Since that time, the insurance marketplace has stabilized and has become a welcoming place for public agencies.
Premium rates within ICRMA are established through a combination of payroll, losses, and an experience modification factor. In addition, rates also fluctuate based on the overall performance and financial standing of the pool. The last 3-years have presented a number of challenges to the pool due to substantial high-value claims. Over the last year, the City's premiums have increased, over...
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