HomeMy WebLinkAboutReso 216-1977 RESOLUTION NO. 216-77
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AMENDMENT
O-.1 , 1977-78 OPERATING BUDGET.
BE IT RESOLVED by the City Council of the City of South San
Francisco that, after duly considering the staff report dated-
December 7, 1977 ,. subject Liability Insurance
, which is attached hereto as Exhibit A,
the Council does hereby order that the sum of Forty E i.qht Thousand
Three Hundred Fifty Six Dollars ($48,356 ) be trans-
ferred from the General Fund,'Unappropriated Balance
to Account No. 12-4411-152-20 .
I hereby certify that the foregoing Resolution was regularly
introduced and adopted by the City Council of the City of South
San Francisco at a regular meeting held on the
7th day of December , 1977, by the following vote:
AYES, COUNCILMEN Richard A, Battaglia, William A. Borba, Emanuele N.
Damonte, Terry J. Mirri and Leo Padreddii
NOES, " None
ABSENT, " None
City Clerk
~ ~ ' NO. 216-77 DATED D~'['~-MBm. R_~_.._ 7 1977 '
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~cmber 7, 1977
0e
The Honorable. City Council
Subject: Liability~ Insurance
ACTION:
Resolution
Operating Budget Amendment .0-1, 1977-78
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RECOMMEN DAT I ON:
It is recommended that the City COuncil adopt a Resolution amending the 1977-78
Budget to provide for payment of an additional insurance premium of $48,356
applicable to a prior fiscal year.
DISCUSSION-
During the year of March 1975 to March 1976 the City's general liability insurance
was carried with the firm of Progressive Casualty Insurance Company of Cleveland,
Ohio. The advance premium paid at that time was $66,000 and the policy included
a provision for an audit of the City's payroll upon which the premium was based.
Progressive Insurance Company arranged for the audit to be performed by Atwell,
Vogel and Sterling Incorporated, and this was accomplished in August 1977. As
a result of this audit an additional premium has been charged in the amount of
$48,356 for the-period of March 1975 to March 1976. The total premium applicable
to that year will be $127,178 (including umbrella coverage added for the first
time) and is not necessarily unfavorable when compared to the premiums for
March 1976 to March 1977 of $119,708 and the current premium for March 1977 to
March 1978 of $123,979. '
It is also true that this premium of $i27,178 is more than double the $59,000
paid for the year March 1974 to March 1975. However, the City increased its
coverage from $1 million to $5 million and in discussion with our agent we were
reminded that in July 1974 the four major insurance companies writing municipal
l~ab~l]ty ~nsurance w~thdrew from the field so that such ~nsurance s now
.written by specialty firms of which Progressive is one. The insurance companies
which withdrew from the field were Hartford, Fireman's Fund, Insurance Company
of North American and Pacific Indemnity. Also in July· 1974 the remaining firms
Staff has reviewed the policy closely and have had several discussions with ...
the City's agent and with Progressive and arrived at the conclusion that this ' ~,:"'..:' -, ,. ,.: ,:. ...... ·
additional premium is due, even though it is tardy in application. Since the ..~.,?~?.,~,~.._,,.,. ~ .,~'~<.e,,~
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1977-78 budget did not anticipate this additional premium, a budget amendment .. '~'~;~..','-.:,.~'..? .:',.:.~.~'..:
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The above events are indicative of the increasing difficulty and the sharply
increased costs experienced by all public agencies in obtaining general
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This Resolution would transfer $48 356 from the'unallocated''balance of the
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General Fund ~ ~ccount ~umber 12-4411-152-20 ....
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To: The Honorable City Council
December 7, 1977
Page 2
C. Walter Birkelo
City llanager
Wi ll ~am R. Anderson
Director of Finance
CWB/WRA/bab
Attachment