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HomeMy WebLinkAboutCity Council Resolution 2342 RESOLUTION NO. 2342 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA AUTHORIZING THE EXECUTION AND DELIVERY OF ABAG PlAN I DOCID~INTS WHEREAS, the City of Saratoga (the "City") is a municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "State"); WHEREAS, The City is authorized by Part 6 of Division 3.6 of Title 1, Section 990, et seq., of the California Government Code (the "Act") to insure itself against tort or inverse condemnation liability, to insure its employees against injury resulting from an act or omission in the scope of his/her employment and to insure against the costs of defending such claims; ~qEREAS, pursuant to Section 990.4 of the Act, the City is authorized to provide insurance by self-insurance which may be funded by appropriations and to establish or maintain reserves for such purposes; ~MERZAS, pursuant to Section 990.6 of the Act, the costs to the City of such self- insurance is a proper charge against the City and therefore the governing board of the City is authorized to make premium payments for such coverage; WHEREAS, pursuant to Section 990.8 of the Act, the City is empowered to provide insOrance coverage by a joint powers agreement with other local public entities, and , such pooling of self-insured claims and the risk sharing of losses is not considered insurance and is not subject to regulation under the California Insurance Code; WHEREAS, The Association of Bay Area Governments ("ABAG") is a joint exercise of powers agency of which the City is a member; WHEREAS, ABAG is authorized to exercise necessary powers to implement the purposes of ABAG as established by ABAG's Executive Board; WHEREAS, ABAG has determined to assist the City, and other members of ABAG empowered to self-insure under the Act, (collectively the "Cities") to obtain self-insurance · for liability risks; WHEREAS, ABAG and _the Cities have heretofore conclusively determined following exhaustive investigation that excess general liability insurance coverage is not available to the Cities from conmercial insurers or from any other source at a price which is reasonably related to the expected incurred losses of such Cities; WHERFAS, ABAG and the Cities have further determined, based upon the advice of independent professional insurance consultants familiar with the cyclical nature of the reasonable availability of coverage in the conmercial insurance market, that such coverage is not anticipated to become available until late in 1986 at the earliest, thereby in the interim exposing the Cities to self-insuring from available revenues on a year-by-year basis with the attendant risk of fiscal instability and ruinous burdens on its citizens in the event of large liability claims recoveries; WHEREAS, ABAG and the Cities have further determined that the periodic unwillingness of the coumercial insurance market to provide excess general liability insurance coverage to local governments at reasonable rates or, in certain cases as at present, at any rate mandates that the Cities seek not only an ~iate solution but also a long-term permanent solution to this problem which will in future years free them from exposure to the vagaries of ccumercial insurance cycles; WHERY_AS, ABAG and the Cities, in consultation with independent professional insurance consultants, have formulated a joint risk sharing insurance program to be administered by ABAG through the ABAG Plan I Corporation and called the ABAG Pooled Liability Assurance Network ("ABAG PLAN I") to meet the general liability insurance coverage needs of the Cities; WHEREAS, The City staff has submitted an application for premium quotation from ABAG for ABAG PlAN I, and the City warrants that the information contained and representations made therein are true, complete and accurate to the best of its knowl edge; WHEREAS, the City has further determined that the Total Premium to be paid in each year by the City as provided for and upon the conditions set forth in the Liability Coverage Agreement (the "Agreement") which will be payable only upon the condition of the receipt of the consideration represented by the insurance protection and services to be provided in such year under the Agreement, but in the event that such protection and services are so provided in any year such Total Premiun will be a binding obligation of the City payable from the income and revenue provided for such year; WHEREAS, the City has further determined that the obtaining of the insurance protection and services provided for under the Agreement is essential in the preservation and fostering of the health, safety and property rights of the citizens of the City and the lack of availability of reasonable commercial general liability insurance to local govermnents generally in the State of California and to the Cities in particular constitutes a public emergency; [}IREAS, it iS a matter for the governing board of the City to determine the amount of premiums which such City shall pay for proper insurance coverage; WHEREAS, The City has heretofore determined and does hereby confirm than the premiu~ns to be required under the Agreement are reasonable and advantageous and to the public benefit of the citizens of such City; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga hereby: 1. authorizes and directs the City Manager to execute and deliver, on behalf of the City, the Liability Risk Coverage Agreement for the ABAG PlAN I which shall be in substantially the form attached hereto, minor technical revisions and corrections excepted, and any other necessary supporting documentation to effect the City' s participation in ABAG PLAN I; and 2. appoints }larry R. Peacock to serve as the City's appointee and Patricia Shriver as his alternate to the Board of Directors of the ABAG PlAN I Corporation, and to exercise the City's vote in setting premiuns, premium allocations, cancelling coverage, and admitting or expelling members to or from ABAG PlAN I; 3. elects conmencement of coverage under ABAG PlAN I on a date between June 2, 1986, and July 1, 1986, inclusive, to wit June 7, 1986. The above and foregoing resolution was passed and adopted at a regular adjourned meeting of the Saratoga City Council held on the 29th day of May, 1986, by the following vote: AYES: Councilmembers Hlava, Moyles and Mayor Clevenger NOES: None ABSENT: Councilmembers Callon and Fanelli MAYOR ~ ATIEgF: Deputy City Clerk~