HomeMy WebLinkAbout88-003RESOLUTION NO. 88- 3
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA AUTHORIZING THE DEVELOPMENT
OF A POOLED EXCESS LIABILITY INSURANCE PROGRAM
WHEREAS, representatives of the City of Santa Aha (the
"City") have examined the advisability of participation in
a pooled excess liability insurance program (the
"program"), which may include the Cities of Garden Grove,
Fullerton, Huntington Beach, Los Angeles, Oakland, Oxnard,
Pasadena, Pomona, Riverside, Sacramento, San Bernardino,
Santa Ana and San Diego, California (the "Prospective
Participants"), and have taken preliminary steps to
develop the Program;
WHEREAS, the City is authorized by Part 6 of Division
3.6 of Title 1, Section 990 et seq., of the california
Government Code (the "Act") to insure itself against tort
or inverse condemnation liability, to insure its employees
against injury resulting from an act or omission in the
scope of his employment and to insure against the costs of
defending such claims;
WHEREAS, pursuant to Section 990.4 of the Act the City
is authorized to provide insurance by self-insurance which
may be funded by appropriations and to establish or
maintain reserves for such purposes;
WHEREAS, pursuant to Section 990.6 of the Act, the
cost to the City of such self-insurance is a proper charge
against the City and therefore the City Council of the
City is authorized to make premium payments for such
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Resolution No. 88- 3
Page 2
coverage in an amount such City Council determines to be
necessary to provide such coverage;
WHEREAS, pursuant to Section 990.8 of the Act, the
City is empowered to obtain insurance coverage through a
joint powers agreement with other local public entities,
and such pooling of self-insured claims and the risk
sharing of losses is not considered insurance subject to
regulation under the california Insurance Code;
WHEREAS, the Independent cities Risk Management
Authority (the "Authority") is a joint exercise of powers
agency which currently acts as insurance provider in a
pooled excess liability program of its member cities;
WHEREAS, the City, along with the other Prospective
Participants, proposes to become a member of the Authority
in order to implement the Program;
WHEREAS, it is contemplated that the terms of the
Program would be set forth in a Liability Risk Coverage
Agreement between the Authority and the Prospective
Participants;
WHEREAS, in order to adequately fund the claims
payment fund of the Program it is contemplated that the
Authority would issue bonds payable from revenues of the
Authority, including certain premium payments made by the
Prospective Participants;
Resolution No. 88-3
Page 3
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NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE
CITY OF SANTA ANA AS FOLLOWS:
This Council hereby approves the Program in concept,
subject in all respects to final approval, and authorizes
the City Manager and City Attorney of the City, and any
other appropriate officers and officials of the City, to
proceed with the finalization of the Program and to expend
an amount not exceeding ~3,000.00 for such purpose.
That this resolution
January 19, 1988.
ADOPTED this ]9th
shall be operative from and after
day of January , 1988.
ATTEST:
Councilmembers
McGuigan Aye
Acosta -~
Griset Aye
Hart A e
May ~
Pulido Absent
Young Aye
Daniel H. Young, May~r ~
APPROVED AS TO FORM:
~Attorney