HomeMy WebLinkAboutReso 32-15RESOLUTION NO.32-15
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
RESCINDING RESOLUTION NO. 13-10, AND ESTABLISHING
THE RISK MANAGEMENT INTERNALSERVICE FUND
AND COMMITTED FUND BALANCE
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on February 22, 2010, the City Council of the City of Morro Bay adopted
Resolution No. 13-10, which established the parameters and a $500,000 minimum balance for
the Risk Management Internal Service Fund (Risk Management ISF); and
WHEREAS, with this Resolution, the City Council of the City of Morro Bay is
rescinding Resolution No. 13-10 in its entirety; and
WHEREAS, the City continues to purchase insurance from the California Joint Powers
Insurance Authority (CJPIA), and pays for this insurance through the Risk Management ISF by
collecting money, on a monthly basis, from the benefitting City departments/funds, to reimburse
for the cost of the insurance; and
WHEREAS, the cash requirements for this Fund have been reassessed, and estimated at
$100,000 as sufficient to pay for any uncovered lawsuits, such as land -use, personnel issues, etc.;
and
WHEREAS, the CJPIA does not require the City to maintain a Risk Management Fund;
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows:
RISK MANAGEMENT INTERNAL SERVICE FUND (RMISF)
1. The Risk Management Fund is established as an Internal Service Fund, whose purpose is
to manage the insurance purchased from the CJPIA, and to pay for any claims not
covered by CJPIA.
2. The RMISF, while not required by CJPIA, has been determined, by the City, to be
necessary to account for the covered and uncovered insurance expenses.
3. The RMISF's fund balance has been designated as follows:
a. Committed— $100,000 in reserve, asset by the City Council;
b. Assigned — amounts required, within 30 days after the beginning of a new fiscal
year, to pay insurance bills; and
Resolution No. 32-15
Page 2
c. Unassigned — any remaining balance available for spending, based on City
Council -directed strategic investments in the areas of risk reduction (i.e.,
American with Disabilities Act renovations), economic development, City
planning, City operations.
4. The City Council is committed to ADA compliance, based on the nexus with Risk
Management, and will endeavor to spend a measurable portion of one-time monies on
ADA projects.
5. Risk management cash needs will be annually evaluated through the budget, and the
RMISF cash balance adjusted, as necessary.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 9th day of June, 2015, by the following vote:
AYES:
Irons, Headding, Johnson, Makowetski, Smukler
NOES:
None
ABSENT:
None
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JAMI L. IRONS, Ma or
ATTEST:
DANA SWANSON, City Clerk