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City of San Leandro <br />Meeting Date: April 4, 2022 <br />Staff Report <br />Agenda Section:File Number:22-087 CONSENT CALENDAR <br />Agenda Number:9.g. <br />TO:City Council <br />FROM:Fran Robustelli <br />City Manager <br />BY:Janelle Cameron <br />Assistant City Manager <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Resolution Increasing the City’s General Liability Self-Insured Retention Level <br />from $500,000 to $750,000 through the California Joint Powers Risk <br />Management Authority with a potential cost savings of $50,000 in Fiscal Year <br />2022-2023 <br />SUMMARY AND RECOMMENDATION <br />Staff recommends that the City Council approve an increase to the City’s General Liability <br />Self-Insured Retention (SIR) level from $500,000 to $750,000 through and in accordance with the <br />City’s agreement with the California Joint Powers Risk Management Authority (CJPRMA), and <br />that the City Council adopt a resolution to approve this change as required by the CJPRMA. <br />BACKGROUND <br />The City currently maintains a $500,000 per occurrence SIR and participates in the CJPRMA <br />pool above the $500,000 limit. The CJPRMA agreement provides that member entities may <br />determine, on a year-to-year basis, their own self-insured retention levels. The City’s SIR was <br />established and remained at $1,000,000 from December 1, 1986 to June 30, 2012. <br />In March of 2012, the City Council approved a decrease from that $1,000,000 SIR to $500,000. <br />The $500,000 SIR limit will no longer be available to CJPRMA member agencies due to: <br />1.The price increases observed in the national insurance market. <br />2.The impacts of wild fires and subsequent losses suffered in California communities <br />over the last five years. <br />3.The inflationary pressures experienced in settlement payments for California <br />governmental entities. <br />Put simply, California local governments-not just the City of San Leandro-have experienced an <br />increase in the settlement costs associated with resolving tort claims. <br />The City’s actuary, AON, evaluated the self-insured retention level and the possibility of increasing <br />Page 1 City of San Leandro Printed on 3/30/2022