CANCELLED – Calexico Loses JPIA Insurance Coverage


city of Calexico

CALEXICO – After several hours of discussions, the Joint Powers Insurance Authority (JPIA) Executive Committee of the Board of Directors voted 7-2 to cancel the city of Calexico’s liability and workers compensation insurance Wednesday.

The cancellation date for the liability and workers compensation insurance is set for January 1, 2016 and the termination of the city’s membership with the JPIA will be effective July 1, 2016.

Several city officials attended the meeting in hopes they could persuade the JPIA committee to grant the city additional time to comply with the Performance Improvement Plan (PIP) compliance standards that had been recommended by the JPIA.

“With all due respect, the way I can describe your city council is dysfunctional.  I support the staff’s recommendations that we issue the notice of intent to cancel,” said one of the JPIA board members.

The PIP established seven performance standards to be met by March 25, 2015 in order to improve the city’s governance and risk management practices. Six of the seven items were met with one exception being all councilmembers were required to complete specific training on council relations and cooperation  no later than 60 days after adoption of the PIP.

Councilmember John Moreno addressed the board to assure them the city was moving forward in the right direction, however saying Calexico needed additional time.

“City council and representatives have made a great presentation, however I would have loved to see all council members here, which raises my concern you are sending a message to me the dysfunctional will continue. I have not heard anything tonight that gives me confidence that the council will change,” said another JPIA board member.

Mayor Joong Kim, Councilmember John Moreno, Acting City Manager Nick Fenley, Chief of Police Michael Bostic, and the Interim City Attorney attended the meeting while Councilmember Maritza Hurtado joined in via telephone conference.

The biggest JPIA concern was placing City Manager Richard Warne on administrative leave since hiring a permanent city manager was one of the JPIA’s requests.

The city of Calexico has 14 days to appeal the decision in writing allowing the JPIA to reconsider their decision by December 31, 2015.