HomeMy WebLinkAboutResolution - 2481 - Creates & Establishes Self Insurance Fund - 12/11/1986JCR: da
RESOLUTION
Resolution #2481.
December 11, 1986
Agenda Item #27
A RESOLUTION CREATING AND ESTABLISHING THE CITY OF LUBBOCK SELF
INSURANCE FUND; PROVIDING THE COVERAGE TO BE AFFORDED BY SUCH FUND AND
PROVIDING FOR THE MAINTENANCE AND ADMINISTRATION OF SAID FUND.
WHEREAS, the City of Lubbock has heretofore obtained liability
insurance coverage through the Texas Municipal League Joint Self
Insurance Fund; and
WHEREAS, the cost of maintaining such liability insurance through
the Texas Municipal League Joint Self Insurance Fund has dramatically
risen over the past three years due to the unavailability to said fund of
reasonable reinsurance; and
WHEREAS, the premium cost to the City of Lubbock to maintain
liability insurance with the Texas Municipal League Joint Self Insurance
Fund for the fiscal year 1986-1987 will be approximately one third of the
coverage limit provided; and
WHEREAS, the City Council of the City of Lubbock finds that it
would be wise and expedient to establish a liability self insurance fund
for the City of Lubbock and to set forth the coverage to be provided by
such fund; and
WHEREAS, the City Council finds that it would be in the best
interest of the citizens of the City of Lubbock to establish the City of
Lubbock Self Insurance Fund, set forth the coverage to be provided by
said fund, and to provide for the administration of said fund; NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL. OF THE CITY OF LUBBOCK:
SECTION 1. THAT there is hereby created a fund within the City of
Lubbock to be known as the City of Lubbock Self Insurance Fund.
SECTION 2. THAT the City Manager is hereby directed to transfer
the sum of Five Hundred Thousand Dollars ($500,000) from the City of
Lubbock Insurance Fund to the City of Lubbock Self Insurance Fund here
now created to establish said fund.
SECTION 3. THAT the City Manager shall, in preparing the annual
budget for the City of Lubbock, recommend to the City Council an
appropriation to be made to said fund in order that the fund shall be
maintained and increased to an amount sufficient to provide an actuarily
sound fund.
SECTION 4. THAT the City Manager is further authorized to transfer
additional funds from the City of Lubbock Insurance Fund to the City of
Lubbock Self Insurance Fund to the extent such funds are not needed for
other insurance coverage.
SECTION 5. THAT the City of Lubbock Self Insurance Fund shall
provide liability insurance coverage to the City, its employees,
officers, Board members and volunteers upon the same terms and conditions
as hereto afforded to said named individuals by the Texas Municipal
League Joint Self Insurance Fund all as set forth in the Texas Municipal
League Joint Self Insurance Fund Liability Coverage Document dated
October 1, 1985, a copy of which shall be deemed an official City
document and filed with the City Secretary.
SECTION 6. THAT the City of Lubbock Self Insurance Fund shall be
authorized to pay for all necessary services to adjust and defend all
liability claims made against the City of Lubbock for which no other
policy of insurance exists and said fund is further authorized to, in the
appropriate case, settle all such claims or to pay any judgments based
upon such claims.
SECTION 7. THAT the City Manager shall designate an officer or
employee of the City of Lubbock to act as the administrator of the City
of Lubbock Self Insurance Fund with the following powers and duties:
1. To keep the City Manager fully informed as to all aspects of
said Self Insurance Fund.
2. To make all disbursements from said fund for claims adjusting
and legal defense costs.
3. To make disbursements from said fund in settlement of claims
in the following manner:
(a) In cases where the claim is ten thousand dollars or
less he shall have full authority.
(b) In cases where the claim is more than ten thousand
dollars but less than twenty thousand the administrator
shall secure the approval of the Assistant City Manager
for Finance.
(c) In cases where the claim is for twenty thousand dollars
or more the administrator shall secure the approval of
the City Manager.
SECTION 8. THAT the City Manager is further authorized to issue
requests for proposals to insurance consultants to review and update
coverage to be extended by this plan as well as its actuarial soundness.
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SECTION 9. THAT the City Manager is further authorized to issue
requests for proposals to secure claims adjusting and related services
necessary for this fund.
SECTION 10. THAT all claims handled under and through the City of
Lubbock Self Insurance Fund shall be considered insured claims.
Passed by the City Council this
ATTEST:
Ranei4te Boyd, City Secreta
APPROVED AS TO CONTENT:
11th day of
Robert Massengale, A istant
City Manager for Financial Services
APPROVED AS TO FORM:
ohn C. Ross, Jr., City Atto ney
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December , 1986.
B. C. McMINN, MAYOR