HomeMy WebLinkAbout76-51 - Concerning $10,000.00 Deductible Earthquake Insurance - Golf Course ClubhouseRESOLUTION NO. 76-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, CONCERNING THE PAYMENT OF
THE $10,000.00 DEDUCTIBLE IN EARTHQUAKE INSURANCE
ON THE COSTA MESA MUNICIPAL GOLF AND COUNTRY CLUB-
HOUSE, AND THE MAINTENANCE BUILDING FOR SAID
MUNICIPAL GOLF COURSE.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
WHEREAS, the provisions of that certain indenture, dated April 15,
1966, for a bond issue of $1,600,000.00 issued by the Costa Mesa Muni-
cipal Golf and Country Club, Incorporated, contain a requirement
prohibiting deductible amounts in insurance coverage, to wit: Section
6.13(a) thereof, insuring improvement on the golf course; and
WHEREAS, the earthquake insurance policy on the clubhouse and
maintenance building for said golf course has recently been modified to
require and include a $10,000.00 deductible per occurrence provision;
and
WHEREAS, this Council must comply with the requirements of said
bond indenture under said Section 6.13(a) requiring one hundred percent
(1007) replacement cost insurance coverage for said improvement; and
WHEREAS, it is hereby intended to lawfully comply with the pur-
poses and intent of said bond indenture and the terms thereof by setting
aside and maintaining a specific fund as a reserve fund solely for
payment of said deductible, if and when needed, so long as said bond
issue remains unpaid;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COSTA MESA AS FOLLOWS:
1. The Director of Finance of this City is hereby authorized and
directed to establish a specific reserve fund out of the Golf
Course Fund and its revenues in the sum of not less than Ten
Thousand ($10,000.00) Dollars, which reserve fund shall be
restricted to use for payment of earthquake insurance deduct-
ible in the event of a loss to the premises insured thereunder.
2. Said reserve fund shall be maintained so long as said bond
issue remains unpaid.
3. That in the event of a loss under the applicable earthquake
insurance policy for said premises and consequent need for
payment of said deductible, that payment for said deductible
shall be made out of said reserve fund and none other.
PASSED AND ADOPTED this 19th day of April, 1976.
Vfa3For of the egy
of sta Mesa
ATTEST:
City Clerk of the City of Co Mesa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and
foregoing Resolution No. 76-51 was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof, held on the 19th
day of April, 1976.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Seal of the City of Costa Mesa this 20th day of April, 1976.
.O
City Clerk and ex -officio Cler f the
City Council of the City of C 61
a Mesa
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