Adelanto council approves notice to withdraw from ICRMA after insurance costs rise to $1.3 million

On July 1, 2024, the Adelanto City Council voted to approve Resolution 24-61, authorizing the City Manager to provide formal notice to the Inland Cities Risk Management Authority (ICRMA) of Adelanto's intent to withdraw, with an effective termination date set under the pool's bylaws for June 30, 2025.

City Manager (speaker) described a multi-year increase in the city's pool contributions and said staff's recommendation was driven by a need to identify potential cost savings. "In 2019 our cost was approximately $312,000 a year," the City Manager said, later summarizing that the city's ICRMA share moved to $374,000 in 2020, $680,000 in 2021, $967,000 in 2022 and stands at $1,300,000 today. He said the pool spreads liabilities across 14 member cities and noted that some members carry large police-related claims that increase the pooled rate; Adelanto contracts for police services rather than operating its own department.

Councilwoman Doctor Grove asked whether the city had alternatives in hand and whether the notice could be rescinded if no better option was found. The City Manager said the council's approval would permit staff to "shop around" for alternative risk providers and that the city could rescind the termination under a clause that allows rescission by Dec. 1. Todd (participant) reiterated that rescind-by-December-1 clause, saying, "We can opt back in if we don't find anybody better."

Councilwoman Ginnett pressed for comparative data, saying she wanted to know why Adelanto's increase reached more than $1 million while some larger cities had not seen similar jumps. She asked staff to provide specific figures showing how Adelanto's liability and claims history contributed to the increase before finalizing any long-term change. "We need to have those answers," Ginnett said.

During the discussion several council members described insurance as a statewide market that has risen broadly and said that initiating the notice was a procedural step to preserve options. Councilmember Mesa seconded the motion to approve the resolution, which the council approved in voice vote. The chair noted that if staff does not find a better alternative, the council can rescind the notice and remain with ICRMA.

A resident of Adelanto spoke during public comment and urged greater transparency. The resident said the ICRMA representative present "didn't bring actual numbers" and asked the council to review ICRMA agendas and audits to understand why costs grew and whether administrative or contractual issues were factors.

Resolution 24-61 directs the City Manager to provide official notice to ICRMA consistent with pool bylaws and to pursue cost-comparison options; the termination date cited in the presentation is June 30, 2025, and staff noted a rescission option by Dec. 1 if no preferable alternatives are found. The council announced its next meeting for July 10 at 7 p.m. and adjourned the special meeting at 11:27 a.m.