HomeMy WebLinkAbout76-33 Add Cash Reserve to Self-Insurance1
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ORDINANCE NO. 26-33
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA ADDING A $125,000.00 CASH RE-
SERVE TO THE SELF-INSURANCE FUND ESTABLISHED
BY RESOLUTION NO. 76-7 AND STATING REASONS
THEREFOR AND DESIGNATING SAID ORDINANCE AS
AN URGENCY MEASURE.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1: The City Council of the City of Costa Mesa
finds and declares that the current liability insurance coverage
for the City of Costa Mesa terminates June 30, 1976. The City
Council further finds and declares that this policy cannot be
and will not be renewed by the same companies or in the same
form. The City Council further finds and declares that it is
in the best interests.of the City and will afford the best
premium savings if a program of insurances adopted providing for
partial self-insurance.
Accordingly, there is herewith added to Chapter X, Article
1, Section 2-156 which shall be as follows:
SECTION 2: §2-156 SELF-INSURANCE FUND
There is herewith added the sum of One Hundred Twenty
Five Thousand ($125,000.00) Dollars in the form of a cash reserve
to the self-insurance fund established by Resolution No. 76-7
which shall be used as follows:
It is prohibited to use this cash reserve portion of
the already established self-insurance fund for any other purpose
until the losses are actually paid.
This ordinance shall not be repealed unless and until
the statute of limitations has tolled on.the.last reported claim
or until said claims has been fully disposed of by settlement,
payment or otherwise.
Said cash reserve may be reduced in proportion to the
exposures outstanding in the form of reported claims at the end
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of the policy period or when said policy is cancelled or not
II renewed.
SECTION 3: This ordinance is adopted as an urgency ordi
pursuant to §36934 Government Code and the reasons for the
urgency are as follows:
The next regular Council meeting where this matter can
be acted upon is July 6, 1976. The current contract of liability
insurance for the City expires June 30, 1976. It is not possible
for the City to negotiate coverage which extends beyond the
end of the policy period to a greater extent than shall be nec-
essary for formal action of the Council on the July 6th meeting
and the necessity for protection against liability claims on the
City of Costa Mesa for a period required for the normal adoption
of an ordinance is unreasonable and will result in an unnecessary
and unreasonable exposure in the form of unfunded claims.
SECTION 4: This Urgency Ordinance shall take effect and
be in full force and effect immediately from and after its passage
and before the expiration of fifteen (15) days after its passage,
shall be published once in the Orange Coast Daily Pilot, a news-
paper of general circulation printed and published in the City
of Costa Mesa, together with the names of the members of the City
Council voting for and against the same.
PASSED AND ADOPTED this (O;C4 day of 1976.
ayor of t Cit of osta Mesa
ATTEST:
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321
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 Ordinance No *76-3.3 was introduced and
considered section by section at a regular meeting of said City
Council held on the 6zz/, day of , 1976 and there-
after passed and adopted as a wholet regular meeting of said
City Council held on the 6,—A day Of 1976
by the following roll call vote:
AYES: COUNCIL MEMBERS: byaz &_,
e
i
NOES: COUNCIL MEMBERS:,¢
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF I have hereunto set my hand and affixed
the Seal of the City of Costa Mesa this day of
1976. /
APPRO ED AS TO FORM:
/CitS, Att LrAy
City Jerk and ex-offic
of the City Council -of
of Costa Mesa
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11erx
City