HomeMy WebLinkAboutAgenda Statement 1981/10/06 Item 9COUNCIL AGENDA STA~T~MENT
Item
9
Meeting Date 10/6/81
ITEM T TLE: Resolution ~j`t~,/~ Approving a Joint Powers Agreement for Pool Purchase of
Excess Liability Insurance
SUBMITIIED BY: Assistant City Manager
(4/5ths Vote: Yes No X )
The ci ies in San Diego County (with Chula Vista leading the group) have been working to
create a Joint Powers Authority, as provided under the Government Code, to provide risk
manage ent and joint purchase of insurance for all agencies that become signatories to the
JPA. rogress has been extremely slow in creating the Authority because a sufficient number
of Cit Managers in the County could not agree, or were not willing to recommend to their
legisl tive bodies, upon an agreement that would give to the Authority broad powers and
respon ibilities normally found in other risk management JPA's throughout the state. Agree-
ment h s finally been reached among a sufficient number of cities to move forward with a
joint owers agreement, very limited in scope, which would only provide for the joint purchase
of exc ss liability coverage. Nlhile I believe the results of the many hours spent in trying
to gen rate the interest needed to create an Authority that could be effective is disappointing,
the jo nt powers agreement we are recommending has been endorsed and adopted by the City
Counci s of Del Mar, Coronado, E1 Cajon, Vista, Escondido, Lemon Grove and PJational City to
date. It is therefore my
RECOMMENDATION: That the City Council adopt the resolution.
DISCUSSION:
The co cept of a Joint Powers Authority, that would provide the mechanism for a more
effect ve risk management program for the membership, has been under discussion for some
time. Despite considerable evidence provided to the San Diego City Managers group about
the su cess of the program in other parts of the state, it became obvious that the only way
the ci ies in San Diego County would initially accept any joint powers arrangement was to
draft n agreement that only provides for the joint purchase of excess liability coverage
and, a en in that instance, a city signing the agreement would not be required to participate
in the joint purchase of liability insurance if it did not choose to do so. In reality,
San Di go County cities could informally join together voluntarily to jointly purchase
excess liability coverage without creating the Authority proposed. However, it was the
feelin, of most City Managers of the County that by taking this first step the concept of
a join powers arrangement would introduce the idea and create a sense of formality that
hopefu ly would lead to future amendments, wherein a full range of risk management responsi-
bility and joint purchase of other forms of insurance coverage could be incorporated and
adopte later, Again, we would have preferred an agreement that went beyond that proposed
but ar recommending this City's participation as the first step in a program that will,
hopefu ly, eventually lead to an effective organization that can deal with the risk manage-
ment p oblems of all member agencies in a. way that has proven to be effective in other
parts f the State.
FINANCIAL IMPACT:
There s no financial impact to the City as a result of approving this a
combin ng the purchase of excess liability coverage for all the member c
thi s C ty's annual l iabi l j ty insurance costs . ~atk„~„'~..~.,~,.,,-,
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Form A-~13 (Rev. 11/79)
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