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Resolution No. 88-~ <br />Page 5 <br /> <br />liability insurance to <br /> <br />rates or, in certain cases, at <br />City seek not only an immediate <br />long-term permanent solution to <br /> <br />local governments at reasonable <br /> <br /> any rate, mandates that the <br /> solution but also a <br /> this problem which will in <br /> <br />future years free them from exposure to the vagaries of <br />commercial insurance cycles; <br /> <br /> WHEREAS, the City, along with a steering committee of <br />the other Participants, in consultation with independent <br />professional insurance consultants, have formulated a <br />joint risk-sharing insurance program to be administered by <br />the Authority to meet the public entity liability <br />insurance coverage needs of the Participants which will <br />provide the following advantages, among others, to the <br /> <br />Participants: <br /> <br /> (a) immediate funding of a claims payment fund <br /> (the "Claims Payment Fund") through an initial deposit <br /> from the proceeds of the sale of the Bonds for the <br /> dual purpose of providing immediate protection from <br /> large claims loss and facilitating eventual access to <br /> the commercial reinsurance market, <br /> <br /> (b) mutual agreement by the Participants to pay <br /> annual premium amounts on both a prospective and a <br /> retrospective basis calculated actuarially to spread <br /> and moderate the cost of claims loss to each <br /> Participant, <br /> <br />189 <br /> <br /> <br />