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CI. OF SAN BERNARDI80 - REQU.T FOR COUNCIL A~ON
From:
Ronald W. Solheim, Director
Subject:
Authorization to transfer funds
from Liability Insurance Premium
fund to Property Insurance Prem-
ium fund to cover previously
approved premium due by 4/30/86.
Dept:
Emergency Services & RISK MANAGEMENT
April 16, 1986
Date:
Synopsis of Previous Council ection:
Authorized the Director of Risk Management and Broker of Record to
purchase Property-Fire-Earthquake & Boiler & Machinery Insurance for
the period of March 31, 1986 to March 31, 1987, at an approximate
premium of $600,000.
URGENCY:
April 16, 1986, the Director of Risk Management was advised by the
Broker of Record that the premium of just less than $605,000. is due
and payable in full on or before April 30, 1986.
Recommended moti.on:
That the Director of Finance be directed to transfer $387,500. from
Account 629-453-53505, (Liability Insurance Premiums) to Account
001-451-53550, (Property Insurance Premiums) which when combined
with previously approved and budgeted funds will allow payment in
full of the premium due for Property-Fire-Earthquake-Boiler & Mach-
inery Insurance for the period of March 31, 1986 to March 31, 1987.
Contact person:
Ron Solheim/Warren Knudson
Phone:
5308/5242
Supporting data attached:
Yes
Ward:
N/A
(L1ab111ty ~rem1ums)
Source: 629-453-53505
FN'~'~V~
arren . nu on, U1r.
FUNDING REQUIREMENTS:
Amount: $387,500.
Council Notes:
75-0262
Agenda Item No.
5-/
Clftt OF SAN BERNARDlo - REQUIsT FOR COUNCIL A~ION
STAFF REPORT
The Mayor and Common Council approved $405,000. for Excess Liability
Insurance Premiums, and $257,500. for Property-Fire-Earthquake &
Boiler & Machinery Insurance Premiums, for fy 1985-86. These sums
were the result of the best estimates at the time the budget was
approved.
Of the $257,500. approved for Property Insurance Premiums, the sum
of $40,000. was approved to be spent for a professional appraisal
of city owned real property, leaving a balance of $217,500. The sum
of $605,000. is needed by April 30, to pay the premium for Property
Insurance previously approved by the Mayor and Common Council. As
such, we are approximately $387,500. short for payment of the Prop-
erty Premium.
The sum of $405,000. for Liability Insurance Premiums remains in the
account. However, due to the fact that Excess Liability Insurance is
not available at this time, and that it is probable that whatever
alternative the Mayor and Common Council elect to take regarding the
Liability Insurance situation, will not have to be funded until on or
about July 1, 1986. Therefore, the previously approved funds for
payment of Excess Liability Insurance, would best be used at this
time by transfer for payment of the Property Insurance Premium.
It is strongly recommended that sufficient funds be transferred from
Liability Insurance Premiums, to Property Insurance premiums, which
will enable payment in full for Insurance previously authorized.
75-0264