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Resolution NO. 88- ~ <br />Page 5 <br /> <br /> WHEREAS, the City, <br />the other Participants, <br />professional insurance <br /> <br />along with a steering committee of <br /> <br /> in consultation with independent <br />consultants, have formulated a <br /> <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 />Participants: <br /> <br /> (a) eventual 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 /> <br />annual premium amounts on both a prospective and a <br />retrospective basis calculated actuarially to spread <br /> <br />and moderate the cost of claims loss to each <br />Participant, <br /> <br /> (c) the option to obtain relief from the burden <br />of paying premiums to commercial insurers at levels <br />reflecting the insurers' high costs of underwriting, <br />administration and brokerage fees since the <br />Authority's costs will be limited to reasonable <br /> <br />administrative costs, <br /> <br />415 <br /> <br /> <br />