|
7.1.G. - Page 99
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2013
<br /> NOTE 13 — RISK MANAGEMENT AND SELF- INSURANCE FUND (CONTINUED)
<br /> 8. 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 2012/13 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 2012/13 was $641,569.
<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, 2013:
<br /> Assets 25,252,772
<br /> Reserves for Claims 14,328,817
<br /> Liabilities 1 2,233,719
<br /> Net Position Unrestricted 8,690,236
<br /> Member Contributions 9,966,309
<br /> Other Income 88,249
<br /> Provisions for Claims and Claim Adjustment Expenses 4,137,519
<br /> Operating Expenses 2 5,859,862
<br /> Change in Net Position 57,177
<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.
<br /> 71
<br />
|