HomeMy WebLinkAbout1975 066 CC RESO1975 066 CC RESO ;¢fì ö ¿ RESOLUTION NO. 75-66
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BALDWIN PARK URGING STATE LEGIS-
LATION TO SAFEGUARD MUNICIPALITIES AGAINST
FINANCIAL JEOPARDY CAUSED BY ARBITRARY AND
CAPRICIOUS CANCELLATION OF THEIR GENERAL
LIABILITY INSURANCE
WHEREAS/ most municipalities must insure themselves
against the risks of general liability including personal
injury and property damages by obtaining policies of
insurance from private carriers; and
WHEREAS, such insurance policies are necessary to
protect against unforeseen events that could result in
substantial money damages against such cities; and
WHEREAS, said insurance carriers, in accepting such
business, must also accept the concomitant public responsi-
bility and public trust inherent in providing a service
that affects the general welfare; and
WHEREAS, the premiums for such insurance represent a
significant factor in determining the annual budgets for
such cities, and the tax rate required to be levied for the
budget revenues; and
WHfiREAS, state statutory limits have been imposed on
the tax rates that can be levied by municipalities, which
are intended to check any upward spiral in government
spending while maintaining the level of public services; and
WHEREAS, insurance carriers have cancelled and are
continuing to cancel such insurance on short notice with
increasing frequency and many such cancellations have been
made in an arbitrary and capricious manner without regard
to the loss experience of the insured municipality or the
extreme circumstances faced by such municipality whose
insurance is cancelled; and
WHEREAS, such cancellations are a breach of public
responsibility and trust; and
WHEREAS, municipalities affected by such cancellations
must, on short notice, obtain insurance at extraordinarily
higher premiums, resulting in unexpected financial burdens
that can only be met by immediate impairment of public
services; and
WHEREAS, such unrestrained cancellations are contrary
to the State's purpose in limiting tax rates in that they
may result in a reduction of public services for government
entities, or an increase in tax rates.
MOW, THEREFORE, the City Council of the City of Baldwin
Park does resolve as follows:
SECTION 1: The City Council of the City of
Baldwin Park urges the State Legislature to
enact appropriate legislation to safeguard
municipalities from the financial jeopardy
placed upon them by the uncontrolled cancel-
lations of their general liability insurance
policies.
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1975 066 CC RESO ;¢fì ö ¿ Resolution No. 75-66
Page 2
SECTION 2: The City Council further urges
the State Legislature, as a minimum to require
that cancellation of such insurance shall be
effective only at the end of the fiscal year
of the insured municipality, and only if notice
of such cancellation by the insurance carrier
is given not less than four months prior to the
end of such fiscal year.
SECTION 3: The City Clerk shall certify to the
adoption of this Resolution and send a copy of
this Resolution to State Senator Alfred Song,
State Assemblyman Montoya, to each city in Los
Angeles County, and the League of California Cities.
APPROVED AND ADOPTED this 6th day of August, 1975.
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) SS:
CITY OF BALDWIN PARK
I, THELMA L. BALKUS, City Clerk of the City of
Baldwin Park, do hereby certify that the foregoing Resolution
was duly and regularly passed and adopted by the City Council
of the City of Baldwin Park at its regular meeting held on
the 6th day of August, 1975, by the following vote:
AYES: COUNC I LMEN WALDO, GREGORY, KING, MC CARON AND MAYOR HAMILTON
NOES: COUNCILMEN_______________________________________
ABSENT: COUNCILMEN
THELMA L. BALKUS, CITY CLERK
BIB]
37686-U01
1975-U02
066-U02
CC-U02
RESO-U02
LI3-U03
FO10488-U03
FO11122-U03
DO11204-U03
C6-U03
RESO-U03
3/5/2003-U04
ROBIN-U04