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<br />NOTE 12 -lNTERFUND TRANSFERS AND TRANSACTIONS (CONTINUED)
<br />
<br />During FY 2004/05, the capital outlay fund advanced $3,000,000 to the redevelopment agency fund to
<br />finance various downtown improvements. During FY 2004/05, interest of $51,157 was charged on the
<br />advance and deferred, thereby leaving a total advance liability of$3,051,157 at June 30, 2005.
<br />
<br />NOTE 13 - RISK MANAGEMENT AND SELF-INSURANCE FuND
<br />
<br />A.
<br />
<br />Workers' Compensation and Property Insurance
<br />
<br />The City is self-insured for workers' compensation for the first $350,000 per occurrence and has a
<br />commercial insurance policy that covers the City's exposure above the retained limits up to $100,000,000
<br />per incident. The City paid $411,487 during FY 2004/05 for the coverage.
<br />
<br />The City's workers' compensation policy includes coverage for the Port of Redwood City. The Port
<br />carries property and liability insurance policies with limits of $10,000,000 and $150,000,000,
<br />respectively.
<br />
<br />B.
<br />
<br />General Liability and Automobile
<br />
<br />The City is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), which is a liability
<br />pool consisting of 17 San Francisco Bay Area government agencies, for general liability and auto liability
<br />coverage. The City maintains a $250,000 self-insured retention with coverage from $250,000 to
<br />$1,000,000 through the BCJPIA. The purpose of the pool is to provide certain levels of liability
<br />coverage, claims administration, and loss control support to member agencies. Annually, each agency
<br />pays an actuarially-determined premium based upon a formula which takes into account the prior
<br />three years' loss experience, annual payroll, and population. This premium pays for administrative costs
<br />and funds liability reserves. The premium paid in FY 2004/05 was $499,340.
<br />
<br />The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an
<br />excess liability pool comprised of the BCJPIA and five other local government insurance pools.
<br />CARMA provides coverage from $1,000,001 to $15,000,000. A layer from $1,000,001 to $4,000,000 is
<br />self-insured by CARMA, the layer from $4,000,001 to $10,000,000 is reinsured through an agreement
<br />with a commercial insurer, and the layer from $10,000,001 to $15,000,000 is self-insured by CARMA.
<br />
<br />The City also carries all risk coverage on buildings and their contents at current appraised value.
<br />
<br />Audited financial statements are available from the Bay Cities Joint Powers Insurance Authority at 1020
<br />19th Street, Sacramento, California 95814. The following is the BCJPIA condensed audited financial
<br />results for the year ended June 30, 2005:
<br />
<br />Assets
<br />Reserves for Claims
<br />Liabilities 1
<br />Net Assets Unrestricted
<br />Member Contributions
<br />Other Income
<br />Provisions for Claims and Claim Adjustment Expenses
<br />Operating Expenses 2
<br />Net Income (Loss)
<br />
<br />I Including reserves for claims
<br />2 Excluding provisions for claims
<br />
<br />56
<br />
<br />,
<br />
<br />$13,090,974
<br />5,572,716
<br />4,088,225
<br />3,275,530
<br />8,740,065
<br />266,441
<br />3,339,712
<br />7,142,222
<br />(1,475,428)
<br />
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