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cr, .' OF SAN BERNARD: :0 - REQUI JT FOR COUNCIL AC JON,
From:
JOHN C. KIRWAN, DIRECTOR REC....- ...A.hiI>,cOFF.
RI SK MANAGEMENT l> ,,11'"1'm
SEPTEMBER 7, 1988 1988 SEP -8 W. Ii: 09
BICEP
Dept:
Date:
-rk}
Synopsis of Previous Council action:
On February 15, 1988, the City Attorney was directed to prepare a
resolution "authorizing the execution and delivery of a liability risk
coverage agreement and filing of validation proceedings and certain other
actions in connection therewith."
On April 14, 1988, the above referenced resolution was adopted. Further,
the Mayor was designated as the City's official representative and the Risk
Manager as the designated alternative.
Recommended motion:
Adopt resolution.
~~,.
Signature
Contact penon:
JOHN C. KIRWAN
Phone:
5308
Supporting deta ettached:
Werd:
FUNDING REQUIREMENTS:
Amount: $420,000
Source:
(ACCT.
(ACCT.
NO.) 629-453-53505
DESCR! PTI ON)
Liability Insurance Premium
Finance: ~ ~
Council Notes:
75-0262
Agenda Item No. ,;zr;
en . OF SAN BERNARDI: , - RI!QU~ 'T FOR COUNCIL AC" ON
STAFF REPORT
BICEP PROGRAM
Since the last time this item was before you, only 5 Cities
have thus far been able to pass resolutions to form BICEP.
Rather than wait for additional Cities it has been decided by
the five who have passed resolutions to proceed with the
formation of BICEP with additional Cities joining as they
gain approval from their respective councils. This way those
of us who have acted, can benefit from the protection.
Coopers & Lybrand has indicated that the five Cities invol~ed
are significant enough in size to make the pooling arrange-
ment feasible.
The bond offer has been reduced in size to reflect the five
Cities participating. Therefore, our premium remains the
same as it was before. To protect the smaller bond issue, it
has been decided to purchase excess insurance on the layer of
$2,000,000 to $10,000,000. The net effect of this is an
increase in cost to the City of approximately $50,000,
beginning with the second year.
The project commencement date is October 1, 1988.
all other provisions remain.the~ame, except ~or those
mentioned, it strongly recommended that the resolution
adopted.
Since
herein
be
75-0264