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Council authorizes notice of intent to withdraw from Independent Cities Risk Management Authority
Summary
Council adopted a resolution authorizing the city manager to file notice of intent to withdraw from the Independent Cities Risk Management Authority (ICRMA) to allow staff time to evaluate alternative insurance pools or direct purchase; council action begins a process with a December 1 deadline to finalize membership decision.
The council adopted a resolution authorizing the city manager to deliver written notice of the city’s intent to withdraw from the Independent Cities Risk Management Authority (ICRMA), a municipal risk-sharing pool that provides property, liability, workers’ compensation and other coverages.
Finance Director (Director Redick) summarized the process: ICRMA currently lists 13 other members plus El Segundo (14 total); membership has declined from as many as 30 members a decade ago. The city must provide notice prior to the start of a fiscal year to effect withdrawal for the following fiscal year; the council’s action starts a yardstick period during which staff will evaluate alternatives such as a different pool or purchasing insurance directly. If the city chooses to remain, staff must notify ICRMA by December 1.
Director Redick said the action is a best-practice step to permit a market evaluation and that staff previously analyzed the pool in 2022 and decided to remain; the current motion renews that market-shopping process. Council adopted the resolution 4-0 and directed staff to continue analysis.
Staff noted ICRMA members include Adelanto, Bell, Downey, El Monte, El Segundo, Fullerton, Glendora, Hawthorne, Huntington Park, Inglewood, Lynwood, San Fernando, Santa Ana and Southgate; staff said a few members had already given notice to withdraw from the pool.
The resolution authorizes the city manager to issue written notice of intent to withdraw so staff can compare alternatives and return to council with recommendations before December 1.
