1986-08-28 Special CC MinutesSPECIAL COUNCIL MEETING OF THE CITY COUNCIL
HELD THURSDAY AUGUST 28, 1986
The meeting
presiding.
ROLL CALL:
RESOLUTIONS
208
convened at 12:05 Noon, with President Diament
Present: Councilmembers Corica, Hanna, Monsef and
President Diament - 4.
Absent: Councilmember Lucas - 1.
86 -515 Resolution No. 11003 "Authorizing Participation in
California Joint Powers Insurance Authority." Adopted.
President Diament noted that there was a report from the
Assistant City Manager and asked if there were questions.
Councilmember Corica asked why we are to keep the reserves noted,
to which the Assistant City Manager responded that for the
insurance pool, twice the amount of the Self Insured Retention is
kept in a reserve account so that they are satisfied that there
is sufficient money to pay off any catastrophic loss.
Councilmember Hanna made a motion to adopt the
Councilmember Monsef seconded the motion and it was
unanimous voice vote - 4.
86 -516 Resolution No. 11004 "Authorizing the General
Reserve Fund be maintained in an amount not less than
for the purpose of satisfying insurance claims against
Adopted.
Councilmember Monsef made a motion to adopt the
Councilmember Hanna seconded the motion.
resolution.
carried by
Liability
$1,000,000
the City."
resolution.
Councilmember Hanna commented that it would cost $1,214,000.00
the first year with $1,000,000.00 being held in the reserve
account, but there should be approximately $1,600,000.00, and he
questioned where the rest of the money would be held.
The City Manager responded that more than a million dollars would
be kept in the reserve account, based on the fact that there is
an expectation of losses; and that it appears to be prudent to
keep $1,600,000.00 in the insurance reserve funds, taking a more
conservative position than is required by California Joint Powers
Insurance Authority, because of the City's outstanding claims.
Councilmember Hanna asked confirmation that the money is
available this year. The City Manager replied that it is, and is
a trust fund that receives interest.
GUJ
Councilmember Hanna asked, regarding the annual deposit of
$256,000.00, if the prorated portion for the remainder of the
year would come out of the reserves we have now, to which the
City Manager replied it would come out of funds already
appropriated to the insurance trust funds.
The Assistant City Manager added that the premiums would come out
of that as well as any losses that will be paid in our retention.
The City Manager commented that it is a goal to be
self-supporting, if possible.
Councilmember Corica raised the question, now that there is
insurance and a million dollar reserve, would the City be asking
people who have special events such as the Fun Fair to also go
out and get insurance as in the past.
The City Manager responded that this insurance covers catastropic
incidents. It specifically excludes insurance coverage of
activities which are not specifically sponsored by the City, and
that refers to such events as the Fun Fair. He added that was
not inconsistent with what is available anywhere in the insurance
market.
Fred Scullin, 1120 Chestnut, stated he had two questions. The
first question was whether or not the members of the group were
all municipalities, and the second question was that he believed
there was a minimum period of three years for which participants
were signing, and wanted to know if certain members incur large
losses that must be made up by the other members and whether or
not there was any consideration for increasing the amount they
would have to pay in the future.
President Diament stated there was an evaluation every year.
The City Manager, in reply to the first question, said the
agreement states "public entities" which includes Joint Power
Authority, e.g., the Redwood Empire Authority and the Yolo County
Authority which are made up of other cities.
Councilmember Hanna mentioned the nature of insurance is to pool
risks of a number of people somewhat similar and compatible.
The motion to adopt the resolution was carried by unanimous voice
vote - 4.
ADJOURNMENT
President Diament adjourned the meeting at 12:15.
Respectfully submitted,
Acting City Clerk