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HomeMy WebLinkAboutCity Council - 5852 RESOLUTION NO. 5852 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE DEVELOPMENT OF A POOLED EXCESS LIABILITY INSURANCE PROGRAM WHEREAS, representatives of the City of Huntington Beach (the "City" ) have examined the advisability of participating 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; and 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; and 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; and 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 coverage in an amount such City Council determines to be necessary to provide such coverage; and -1- 5852 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; and 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; and City, along with the other Prospective Participants, proposes to become a member of the Authority in order to implement the Program; and 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; and 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; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUNTINGTON BEACH AS FOLLOWS: This Council hereby approves the Program in concept, subject in all respects to final approval, and authorizes the City Attorney, the Deputy City Administrator and Risk Manager 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 -2 5852 exceeding $3 ,000 for such purpose. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof, held on the 7th day of March, 1988 Mayor ATTEST: City Clerk APPROVED AS TO CONTENT: APPROVED AS TO FORM: City Administrator City Attorney AP OVED, TING DEPARTMENT: t epu Ity ministr or rf -3- 5852 Res. No. 5852 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 7th day of March 19 88 , by the following vote: AYES: Councilmen: Ke)y. ,r en, Fin] . Frtkinp,_Md,�iS, WinrhP11 , Bannister NOES: Councilmen: None ABSENT: Councilmen: None City Clerk and ex-officio Clerk of the City Council of. the City of Huntington Beach, California 5852