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6.1. B. - Page 87
<br /> NOTE 13 — RISK MANAGEMENT AND SELF-INSURANCE FUND �CONTINUED)
<br /> coverage. In FY 2010/11 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 the
<br /> prior three years' loss experience, annual payroll, and population. This premium pays for administrative
<br /> costs and funds liability reserves. The premium paid in FY 2010/11 was $572,045.
<br /> The BCJPIA belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br /> liability pool comprised of the BCJPIA and five 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 risl<coverage on buildings and their contents at current appraised 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, 2011:
<br /> S
<br /> Assets 23,605
<br /> Reserves for Claims 12,127,980
<br /> Liabilities 1 2,035,430
<br /> Net Assets Unrestricted 9,441,910
<br /> Member Contributions 10,039,542
<br /> Other Income 258,589
<br /> Provisions for Claims and Claim Adjustment Expenses 4,791,223
<br /> Operating Expenses z 6,127,875
<br /> Change in Net Assets (620,967)
<br /> 1 Excluding claims liabilities
<br /> Z 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.
<br /> Changes in the self-insurance fund's claims payable liability for fiscal years ended 2009, 2010, and 2011
<br /> were:
<br /> Beginning CurrentYearClaims/ Claim Ending
<br /> Balance Changes in Estimates Payments Balance
<br /> 5 5 5 5
<br /> 2008/09 9,745,780 1,685,063 (1,069,805) 10,361,038
<br /> 2009/10 10,361,038 2,122,455 (1,427,167) 11,056,326
<br /> 2010/11 11,056,326 2,051,359 (2,155,725) 10,951,960
<br /> Settlements have not exceeded coverage for each of the past three fiscal years.
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