RES 77185 - Laserfiche WebLink

6. A pool or fund should be set up to fund the self-insured losses in this type of program. The general rule of thumb is enough money to fund two losses. Thus, if you were to set up a special reserve fund, which could not be touched for other purposes, the fund should be $100,000.00. 7. Because of the problems in governmental Liability and lack of immunity, we should be conscious that we could have more than two losses in the $50,000.00 range. In this case, the fund would be depleted and an additional tax burden placed on the people. Because of the foregoing disadvantages, we.cannot recommend a Self- Insured Retention Program at this time. If, in the future, the dis- parity between fully insured programs and self-insured programs be- comes greater, it may well be that our strong consideration would be for a Self-Insured Retention Program. We have adopted self-insurance technics in our present program, wherein we only insure vehicles in excess of $10,000.00 in value and mobile equipment in excess of $10,000.00 in value. This saves valuable premium dollars. We can also utilize a $5,000.00 deductible for Property Damage Liability and save approximately $5,000.00 in your basic insurance program. Deductibles higher than this would be, in our estimation, unwise. Another program for insuring Municipalities on the horizon is "pooling." In this fashion, various Cities in a given County will pool their in- surance programs in a Self-Insured Retention type program. Contra Costa County is currently undergoing research and possible establishment of such a program. This may be a viable alternative to a fully insured program. However, you must appreciate that if Alameda County were to enter into such a program, Pleasanton would be insured with other Alameda County Cities who currently are completely unable to obtain insurance at any price. In closing, 1. we make three recommendations: We recommend that the current renewal program be approved by Council at the limits herein described at an annual premium of $270,620.00. The City adopt a complete Loss Prevention Program, in concert with Continental Insurance Company. In this manner, all po- tential hazards can be pointed out before they cause a serious Liability suit. Certain traffic intersections come to mind in this suggestion. We urge the Council to form a small committee of itS' members to discuss with the writer the various optional methods of pro- viding Liability protection for the City of Pleasanton. This can involve attendance at various political subdivision insur- ance seminars and individual discussions of various situations as they arise. (5)