The City Council voted Tuesday to spend $12,500 on an actuarial study as part of its efforts to establish a muncipal insurance company.
Costs for the study--which will determine the amount of money necessary to finance such a program--will be shared with Doctors Management Co., a physicians' insurance group. The physicians group, which set up its own self-insurance fund during the malpractice insurance crisis, has been advising Gardena and may be a partner in the city's venture.
Since first proposed by Councilman Mas Fukai last year, the city staff has been investigating the feasibility of a city-owned insurance company as an alternative to skyrocketing municipal liability premiums.
The innovative program, which would be a first in the state, would eventually offer fire, theft and auto insurance to area residents.
An updated report is expected in three months.