HomeMy WebLinkAbout77-31 Urgency Measure of Cash ReserveAN ORDINANCE OFTHE CITY COUNCIL OF THE CITY OF
COSTA MESA ESTABLISHING A $400000.00 CASH RESERVE
WITHIN.THE SELF-INSURANCE'FUND ESTABLISHED BY
RESOLUTION NO. 76 -7 -AND DESIGNATING SAID ORDINANCE
AS AN URGENCY MEASURE'STATING REASONS THEREFORE.
THE CITY.COUNCIL.OF THE CITY OF COSTA MESA HEREBY DOES
ORDAIN AS FOLLOWS:
SECTION 1: The City Council of the City of Costa,Mesa
'finds and declares that the current self-insurance program for the
City.of Costa Mesa terminates June 30, 1977. The City Council
furthe r. finds and declares that this: -self' -insurance program cannot
be and will not be accepted by the, -insurance companies providing
coverage,.thereunder-as presently constituted. -.'The City Council
further finds and declares that.it is in the'best.interests of the
City and will afford the .best,.pr'emium-sav ngs,of,,S..elf;-insurance if,
a. program of self "'insuran.ce` with. -a. higher. retention and a higher
yearly aggregate -'were to be adopted,-
Accordingly, Section 2-156 of'Article-1, Chapter V of.
Title 2 of the Costa Mesa Municipal Code is -hereby amended to read
as follows:
SECTION 2: y2-156 SELF. INSURANCE FUND
There is herewith -established the sum of Four Hundred
Thousand ($4000,000.00) Dollars in the form of a cash reserve within
the Self -Insurance Fund established.by Resolution No. 76-7i which
'shall•be used as follows:
1 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This ordinance shall not be repealed unless and until the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 have been fully disposed of by settlement, -._payment
or otherwise.
Said cash reserve may be reduced in proportion to
the exposuresoutstanding-in the form of -reported claims at the end
of the policy period or when said policy is cancelled or not
renewed.
SECTION 3: This ordinance is adopted as an urgency ordinance
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..5, 1977. The current self-insurance program and
contract of liability insurance for the City expires June 30, 1977
It is not possible for the City to negotiate coverage which extends
beyond the end of the policy period and to extend the current self-
insurance program to,a greater extent than shall be necessary for
formal action of the Council on the July 5th 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 theform 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 5,Z:4 day of ,
1977.
ATTEST:
pa
City Clerk of.the City of
Costa Mesa
Ma-yoiq,_._of the City of s esa
-2-
s
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-OrdinanceNo.-177-31 was introduced and
considered section by.section at a regular meeting of said City.
Council held on` the $,eA0 day of , 1977.and there-
after passed and,adopted as.a wholat. regular meeting of said
City Council held on the': day Of 1977
by -the following roll call.vote: L
. � • , /Lit-Cc-�cJ.
AYES: COUNCIL MEMBERS: ✓
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 g6day of_.._- ;
1977.
City Jerk and.' hex -officio Clerk
of. the City .•Council, of- the Cit
of Costa Mesa
APPROVED AS TO FORM:
Assistant City,'Attorney