HomeMy WebLinkAboutOB 1 OCCRMA LIABILITY 12-15-86~ ~/~ ~ ~ q ~A ~ OLD BUSINESS
DATE: DECEHBER 10, 1986 ~~
TO:
FROM:
SU BJ ECT:
WILLIAM A. HUSTON, C[TY MANAGER
FINANCE DEPARTMENT
RESOLUTION 86-140, OCCRMA LIABILITY POOL
RECO~ENDATION
Adopt Resolution 86-140 authorizing the City of Tustin to participate in the
Orange County Cities Risk Management Authority liability and automobile excess
insurance pool.
DISCUSSION
As of Wednesday, December 10, nine of the eleven members of OCCRMA have joined
the pool, the City of Stanton has joined the Coachella Valley JPA risk sharing
pool effective February 1987. This guarantees the implementation of the pool
effective 12-12-86.
As of Friday, December 12, 1986, the City will be without excess insurance
protection. Any claim filed from that date forward with an occurance date of
12-12-86 or later will be 100% self-insured by the City. If the Council
adopts Resolution 86-140 at its meeting Monday, December 15, our premium will
be prorated to exclude the three prior days. Any subsequent action to join
the pool will also be prorated to the 12-12-86 plan implementation date.
If the Council should not adopt Resolution 86-140 the City Manager should be
directed to review any available insurance policies with the intent to provide
cost effective protection for areas of significant exposure, i.e., automobile
li~a~lity. If alternatives are available proposals will be brought to Council
RofiaYd A. Nault
Finance Director
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RESOLUTION NO. 86~140
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN
AUTHORIZING PARTICIPATION IN THE ORANGE COUNTY CITIES
RISK MANAGEMENT AUTHORITY LIABILITY RISK SHARING POOL
WHEREAS, the Orange County Cities Risk Management Authority
(-OCCRMA) has provided a liability insurance program since 1978; and
WHEREAS, the member cities now totaling eleven in number have
developed over the years a cooperative working relationship to jointly
solve many of the risk management issues facing California
municipalities; and,
WHEREAS, the current crisis in the municipal liability insurance
industry has left over 150 California cities without liability
insurance; and,
WHEREAS, the Orange County Cities Risk Management Authority has
developed a Liability Risk Sharing Pool division to replace the
liability insurance program in the event the program is not renewed;
and,
WHEREAS, the OCCRMA Board of Directors has determined that the
proposed 1986-87 insurance renewal would have such significant
reductions in the policy coverage and inadequate limits that the
liability risk sharing pool should be implemented~ and,
WHEREAS, the City Council of the City of Tustin has reviewed the
OCCRMA Liability Risk Sharing Pool concept and has determined that the
pool concept offers the best long range solution to the liability
insurance crisis.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Tustin authorizes the City to participate in the Orange County Cities
Risk Management Authority Liability Risk Sharing Pool for general and
automobile liability subject to the confirmation of the proposed deposit
"premium" and pool membership.
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Tustin, California, held on the day of ,
1986.
ATTEST:
DONALD J. SALTARELLI, MAYOR
MARY Eo WYNN, CITY CLERK