HomeMy WebLinkAbout159-85 ` 410
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RESOLUTION NO. 159-85
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
THE TOWN OF LOS ALTOS HILLS ACCEPTING THE PROPOSAL OF
ALLIANCE .INSURANCE COMPANY TO ISSUE A
LIABILITY INSURANCE PREMIUM, AUTHORIZING PAYMENT
OF PREMIUM, AND MAKING OF APPLICATION FOR LETTER OF
CREDIT AND TIME DEPOSIT ACCOUNT, AND AUTHORIZING
MAYOR AND CITY CLERK TO EXECUTE REQUIRED DOCUMENTS
RESOLVED, by the City Council of the City 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 (herein called
the "TOWN" ) received a proposal from Alliance Insurance Company to
issue a policy of liability insurance in which the TOWN would be
named as the insured and which would provide coverage in the amount
of $400 ,000 for any single occurrence or aggregate of occurrences
during any single year but providing also for a deductible in the
amount of $100 ,000 in consideration of payment of a premium in the
amount of twenty-four thousand, nine-hundred and eighty dollars ($24,980) .
WHEREAS, the issuance of the policy as described would be sub-
ject to the following conditions :
1. The TOWN would be required to enter into a contract with an
independent claims servicing organization; and
2 . The TOWN would require to provide a Letter of Credit in the
amount of $100, 000 to assure payment of any claims falling within the
$100 , 000 deductible amount; and
3. The TOWN would consent to Alliance Insurance Company having
the right to agree to the attorneys retained to defend the TOWN; and
WHEREAS, it is necessary that the TOWN obtain liability insur-
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ance coverage, and the TOWN has been unable to obtain other insurance
proposals by reason of the present condition of the insurance industry
as represented to the TOWN,
• NOW, THEREFORE, IT IS FOUND,ORDERED AND DETERMINED as follows :
1. Public interest and convenience require the TOWN to accept
the above-described insurance proposal, and the TOWN hereby approves
and accepts the policy of liability insurance offered by Alliance
Insurance Co. , and authorizes payment of the premium referred to in
the proposal.
2. The Mayor and City Clerk of the TOWN, be, and they and each
of them hereby is authorized and directed on behalf of said TOWN,
respectively, to do each of the following:
(a) To execute and attest all documents required to com-
plete acceptance of the proposal' of Alliance Insurance
Company and to obtain issuance of the liability insurance
policy described above as of November 1, 1985.
(b) To make application for issuance of the Letter of
Credit described above and opening of a time deposit
account of whatever character approved by the financial
institution issuing the Letter of Credit, and to execute
and attest all documents required in connection therewith.
3. The Finance Officer of the TOWN be and he hereby is authoriz-
ed and directed to do each of the following:
(a) To take all action necessary to complete .the p.ur:c.hase
of the above described liability insurance policy includ-
ing the payment of necessary funds " of the TOWN for the
premium thereof.
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(b) To deposit necessary funds of the TOWN in a time
deposit account to be opened in connection with the
Letter of Credit to be obtained.
4 . The foregoing Resolution is intended to formalize the ap-
proval of the purchase of the liability insurance policy described
above given by the City Council at its special meeting held on
October 31, 1985 , and to authorize the taking and completion of
other actions required in connection therewith.
REGULARLY passed and adopted this 20th day of November , 1985.
Y _ /
MAYOR
ATTEST:
CITY CLERK
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