HomeMy WebLinkAboutReso - CC - 002-1977RESOLUTION NO. 2 - 7.7
ESTABLISHING A LOSS RESERVE FUND AND
PROCEDURES FOR PAYMENT FROM THE FUND
WHEREAS, effective December 2, 1976, the CITY OF BURLINGAME has
established its own self -insured program covering general liability and
property damage; and
WHEREAS, the City will assume the underwriting of claims and such
program up to the first $65,000 of each loss, but not to exceed an aggregate
of all bodily and property claims for the year of $200,000; and
WHEREAS, the responsibility for the payment of claims for that
amount in excess of $65,000 for bodily injury or property damage per occur-
rence shall be assumed by the City's insurance carriers; and
WHEREAS, it is necessary that the City make provision for a fund
into which reserves may be placed by the City for the processing of claims
and from which monies may be drawn for the payment of such claims, including
investigation, legal and other related expense; and
WHEREAS, the City Council is further desirous of making provisions
authorizing the payment of said claims as hereinafter set forth.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the
City of Burlingame as follows:
1. That the City Council hereby establishes a Loss Reserve
Fund which is to provide for the reservation of funds for potential
claims and for the payment of claims as they occur and if payment is
authorized therefor;
2. That such Loss Reserve Fund is to be used exclusively
for the payment of claims within the limits of the City's self -
insured program covering personal injury, personal property or real
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property damage with payment from the said Fund to include, but not
be limited to, investigation, legal or other related expenses;
3. That a Loss Reserve Fund for the City of Burlingame with
a minimum balance of $7,500 shall be established and maintained.
4. That under the City's self -insured program the claims
manager is authorized to make payment in the maximum amounts hereafter
set forth to any one individual for a single claim (personal injury,
real property and personal property damages to be considered
separate claims even if arising from one incident):
(a) Claims Manager up to a maximum of $2,000;
(b) Claims manager with the approval of the City Attorney
or his duly authorized representative up to a maximum
of $5,000; and
(c) Claims Manager with the approval of the City Council
upon the recommendation of the City Attorney, up to a
maximum of $65,000.
5. That the Loss Reserve Fund created herein shall remain in
tact and shall be used solely for the purposes set forth in this
resolution or until the City is no longer self -insured and all
claims and/or liabilities have been paid.
t
L A G
Mayor
I, EVELYN H. HILL, City Clerk of the City of Burlingame, do hereby
certify that the foregoing Resolution was introduced at a regular meeting
of the City Council held on the 3rdday of January,1.977, and was adopted
thereafter by the following vote:
AYES: COUNCILMEN: Amstrup-Crosby-Harrison-Mangini-Martin
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: None
Cgy Clerk
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