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HomeMy WebLinkAbout85-86 • • RESOLUTION NO. 85-86 A RESOLUTION OF THE COUNCIL OF THE CITY OF THE TOWN OF LOS ALTOS HILLS AUTHORIZING THE EXECUTION AND DELIVERY OF ABAG PLAN I DOCUMENTS FOR LIABILITY INSURANCE COVERAGE RESOLVED, by the City Council of the Town of Los Altos Hills , County of Santa Clara, State of California, that WHEREAS, the City of the Town of Los Altos Hills (hereinafter the "TOWN") , is a municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "STATE") ; WHEREAS, the TOWN 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'Ansure .its employees against injury resulting from an act or omission in the scope of his/her employment and to insure against the costs of defending such claims; WHEREAS, pursuant. to Section 990 .4 of the ACT the TOWN is author- ized 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 costs to the TOWN of such self-insurance is a proper charge against the TOWN and therefore the governing board of the TOWN is authorized to make pre- mium payments for such coverage; WHEREAS, pursuant to Section 990 . 8 of the ACT, the TOWN is em- powered to provide insurance coverage by 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 and is not subject to regulation under the California Insurance Code; WHEREAS, the Association of Bay Area Governments ("ABAG") is a } • • joint exercise of powers agency of which the TOWN is a member; WHEREAS, ABAG is authorized to exercise necessary powers to implement the purposes of ABAG as established by ABAG' s Executive Board; WHEREAS, ABAG has determined to assist the TOWN ; and other mem- bers of ABAG empowered to self-insure under the ACT, (collectively the "Cities") to obtain self-insurance for liability risks; WHEREAS , ABAG and the Cities have heretofore conclusively deter- mined following exhaustive investigation that excess general liability insurance coverage is not available to the Cities from commercial insurers or from any other source at a price which is reasonably re- lated to the expected incurred losses of such Cities; WHEREAS, ABAG and the Cities have further determined, based upon the advise of independent professional insurance consultants familiar with the cyclical nature of thereasonable availability of coverage in the commercial insurance market, that such coverage is not antici- pated to become available until late in 1986 at the earliest, thereby in the interim exposing the Cities to self-insuring from available revenues on a year-by-year basis with the attendant risk of fiscal instability and ruinous burdens on its citizens in the event of large liability claims recoveries; WHEREAS , ABAG and the Cities have further determined that the periodic unwillingness of the commercial insurance market to provide I excess general, liability insurance coverage to local governments at reasonable rates or, in certain cases as at present, at any rate mandates that the Cities seek not only an immediate solution but also a long-termpermanent solution to this problem which will in future years free them from exposure to the vagaries of commercial insurance cycles; Reso.ABAG I -2- .. WHEREAS, ABAG and the Cities, in consultation with independent professional insurance consultants, have formulated a joint risk sharing insurance program tobe administered by ABAG through the ABAG PLAN ICorporation and called the ABAG Pooled Liability Assurance Network ("ABAG PLAN- I") to meet the general liability insurance cover- age needs of the Cities;: • WHEREAS, the TOWN staff has - submitted an application for premium quotation from ABAG for ABAG PLAN I, and the TOWN warrants that the information contained and representations made therein are true, complete and accurate to the best of its knowledge;. WHEREAS, the TOWN has further determined that the Total Premium to be paid in each year by the TOWN as provided for and upon the condi- tions set forth in the Liability Coverage Agreement (hereinafter the "AGREEMENT") which will be payable only upon the.-condition of the re - 1 ceipt of the consideration represented by the insurance protection and services to :beprovided in such year' under. 'the AGREEMENT, but , in .the event that such protection and services, ,are so provided in any year such Total Premium will be a binding obligation of, the TOWN payable from the income and revenue provided for such year; WHEREAS, the TOWN has further determined that the obtaining of the insurance protection and services providedfor under the AGREEMENT is essential in the preservation and fostering of the health, safety and property rights of the citizens of the TOWN and ,the :lack of avail- ability of reasonable commercial general liability insurance to local. . governments generally in the State of California and to the. Cities in a particular constitutes a public emergency; WHEREAS, it is a matter for,. the City Council of the TOWN to . determine the amount of premiums which such TOWN shall pay for proper insurance coverage; . Reso.ABAG I -3- 411 , _ • WHEREAS, the TOWN has heretofore determined and does hereby con- firm that the premiums to be required under the AGREEMENT are reason- able and advantageous and to the public benefit of the citizens of such TOWN; NOW, THEREFORE, BE IT RESOLVED, the Council of .the City of the Town of Los Altos Hills hereby:Y 1. Authorizes and directs the Mayor to execute and deliver, on behalf of the TOWN the Liability Risk Coverage AGREEMENT for the ABAG PLAN I which shall be in substantially the form attached hereto, minor technical revisions and corrections excepted, and any other necessary supporting documentation to effect the TOWN' s partici- pation in ABAG PLAN I; and 2 . Appoints the City Manager to serve as the City' s appointee and , ,Louise Parmett as his/her alternate to the Board of Directors . .of the ABAG PLAN I Corporation, and to exercise the City' s vote in setting premiums , premium allocations , cancelling coverage, and admitting _ or expeling members.-.to or from ABAG PLAN I; 3. Elects commencement of coverage under ABAG PLAN I on a date between June 2 , 1986 and July 1, 1986 , inclusive, to wit June 18 , 1986 . This resolution was entered into by the Council of the City of the Town of Los Altos Hills on this 18th day of June , 1986 . • COUNCIL OF THE CITY OF THE TOWN OF LOS ALTOS HILLS ' AYES: Councilmembers : Dronkert, Fuhrman, Tryon and van Tamelen NOES : Councilmembers : None ABSENT: Councilmembers : Ryden MAYOR CITY CL RK Reso.ABAG I - Reso. #85-86/page 4 74-