HomeMy WebLinkAboutRES 89-53RESOLUTION NO. 89-55
A RESOLUTION ESTABLISHING THE CITY OF DIAMOND BAR
SELF-INSURANCE FUND, SETTING FORTH THE PURPOSE
OF SAID FUND, PROVIDING APPRORIATIONS THEREFORE
AND MAKING CERTAIN OTHER DETERMINATIONS IN
CONNECTION THEREWITH
WHEREAS, the City Council of the City of Diamond
Bar has adopted a program of self-insurance in addition to the
purchase of insurance as the means of protecting the City's
assets against liability losses; and,
WHEREAS, it is the desire of the City Council to
establish a formal method for the funding of dollars ($) to pay
anticipated self-insured losses; and,
WHEREAS, the State of California provides that any
local government may establish a self-insurance reserve fund;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF DIAMOND BAR, TO -WIT:
Section 1. There is hereby created a special
revenue fund in accordance with the California Government Code.
Section 2. The purpose of said fund shall be to
pay all self -assumed losses under this program and all other
costs properly relating thereto, including but not limited to
attorney fees, adjusting services and administration.
Section 3. Contributions to said fund shall be
pro -rata from all other City funds afforded protection under
this program based upon each of the fund's exposure to
liability. Funding shall be as follows:
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Subsection A. During the Fiscal Year 1988-89,
$25,000 or amount equal to the
expenses of said fund, whichever is
greater.
Subsection B. During fiscal years subsequent to
the Fiscal Year 1988-89, $100,000,
or an amount equal to twice the
amount of paid and reserve losses
during the proceeding fiscal year,
or amount equal to the expenses of
said fund, whichever is greater.
Subsection C. At any time the fund balance equals
or exceeds $1,000,000, no further
contribution shall be required.
Section 4. All interest earned by the City of
Diamond Bar Insurance Reserve Fund shall be credited to said
fund until the fund balance equals or exceeds $1,000,000, at
which time all interest earned may be credited to the City of
Diamond Bar Fund.
Section 5. The method of controlling revenues,
expenditures, reserves and surpluses of said fund shall be in
accordance with generally accepted accounting principles and in
accordance with the laws of the City of Diamond Bar and the
State of California.
Section 6. Appropriations in the amount of
$25,000, as set forth and prescribed by the State Department of
Taxation, are hereby established for the Fiscal Year 1988-89.
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Section 7. The City Manager of the City of
Diamond Bar is hereby authorized and directed to carry out the
provisions of this resolution.
PASSED, APPROVED AND ADOPTED this 20th of
June , 1989.
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I, ROBERT L. VAN NORT , City Clerk of the City
of Diamond Bar, do hereby certify that the foregoing Resolution
was introduced at a regular meeting of the City Council of the
City of Diamond held on the 20th day of June , 1989, and
was finally passed at a regular meeting of the City Council of
the City of Diamond Bar held on the 20th day of June ,
1989, by the following vote:
AYES: COUNCIL MEMBERS: FORGING, Mayor Pro Tem HORCHER,
Mayor PAPEN
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: MILLER and WERNER
ATTES)RB
ERT L. VAN NORFitg Clerk`
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