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City of Redwood City 7.1.A. - Page 99
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2014
<br /> NOTE 13 — RISK MANAGEMENT AND SELF- INSURANCE FUND (CONTINUED)
<br /> B. General Liability and Automobile
<br /> The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is a liability pool
<br /> consisting of 18 San Francisco Bay Area government agencies, for general liability and auto liability
<br /> coverage. In FY 2013 -14 the City maintained a $350,000 self- insured retention with coverage from
<br /> $350,000 to $1,000,000 through the BCJPIA. The purpose of the pool is to provide certain levels of
<br /> liability coverage, claims administration, and loss control support to member agencies. Annually, each
<br /> agency pays an actuarially- determined premium based upon a formula which takes into account
<br /> loss experience, annual payroll, and population. This premium pays for administrative costs and funds
<br /> liability reserves. The premium paid in FY 2013 -14 was $633,788.
<br /> The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br /> liability pool comprised of the BCJPIA and four other local government insurance pools. CARMA
<br /> provides coverage from $1,000,001 to $29,000,000. A layer from $1,000,001 to $4,000,000 is self -
<br /> insured by CARMA, the layer from $4,000,001 to $29,000,000 is reinsured through agreements with
<br /> commercial insurers.
<br /> The City also carries all risk coverage on buildings and their contents at replacement cost value.
<br /> Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1750
<br /> Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. The following is the BCJPIA condensed audited
<br /> financial results for the year ended June 30, 2014:
<br /> Assets 29,597,416
<br /> Reserves for Claims 16,149,653
<br /> Liabilities 1 3,055,687
<br /> Net Position Unrestricted 10,392,076
<br /> Member Contributions 10,024,132
<br /> Other Income 88,546
<br /> Provisions for Claims and Claim Adjustment Expenses 4,782,196
<br /> Operating Expenses 2 5,785,209
<br /> Change in Net Position 1,701,840
<br /> 1 Excluding claims liabilities
<br /> 2 Excluding provisions for claims
<br /> C. Self - Insurance Fund
<br /> The City maintains a self- insurance internal service fund for its workers' compensation and general
<br /> liability self- insurance programs. This fund accounts for revenues from departmental charges and
<br /> operating expenses, including settlements within the City's self- insured retentions. Reserves for
<br /> incurred but not reported claims are maintained within this fund. These reserves are based on an
<br /> actuarial analysis performed by Richard E. Sherman & Associates, Inc. in accordance with GASB 10.
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