HomeMy Public PortalAbout91-164 (10-15-91)RESOLUTION NO. 91 -164
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LYNWOOD ADOPTING THE REVISED ASSUMPTION
OF LIABILITY AGREEMENT NEW TITLE JOINT INDEMNITY
AGREEMENT
WHEREAS, The County currently provides a variety of contract _
services to eighty -seven cities. Services provided by the County
under this Contract Cities Program result in liability claims by
third parties; and
WHEREAS, Under State law, in the absence of an Agreement,
Cities and the County would be jointly liable and would share in
the cost of defense and the payment of any awards. However; State
law permits Cities and the County to reallocate these liabilities;
and
WHEREAS, In this County, by existing contract the eighty -
seven Cities and the County have agreed that the Contract City
Trust Fund is to be maintained by the County to pay these charges;
and
WHEREAS, Since 1978 each City's trust fund contribution has
been two percent of total contract billings; and
WHEREAS, At the present time, two independent audits have
confirmed that the contribution rate needs to be increased to cover
rising liabilities; and
WHEREAS, The Contract Cities Association and the affected
County departments have agreed on proposed contract modifications.
These are the application of increased and variable rates to
' reflect the level of liability exposure resulting from each service
and a specific City guarantee to replenish the Fund; and
WHEREAS, Pending the results of an actuarial study regarding
future rates, those Cities which sign the new agreement wild be
charged a three percent rate for Sheriff and Public Works and a two
percent rate for all other services. These Cities will reimburse
any deficiency in the trust fund balance within one year; and
WHEREAS, Those Cities choosing not to sign the new agreement
will pay a higher rate of 4.5 percent as authorized under the
existing agreement; and
WHEREAS, The Board of Directors of the Contract Cities
Association.has approved and recommended this agreement; and
WHEREAS, The City of Lynwood is impacted primarily as a
result of its contract for Sheriff's services; and
WHEREAS, It is in the best interest of the City of Lynwood to
sign the new Agreement; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LYNWOOD, that the City of Lynwood:
' SECTION 1. Approve the Joint Indemnity Agreement previously titled
Assumption of Liability Agreement, between the County and Contract
Cities.
SECTION 2. That the Mayor is authorized to sign said Agreement.
SECTION 3. That Council authorize the Finance Director to
appropriate $35,283 from the unobligated general fund reserve to
Account # 01- 4555 -4220 to cover the rate increase.
PASSED, APPROVED AND ADOPTED
nctnhPr _ • 1991.
E /
City Clerk
THIS 15th DAY OF
Mayor, City of ynwood
) r 3)r
3,1a;
I NS XO FORM: APPROVED AS TO CONTENT:
ttorney City Manager
of Lynwood City of Lynwood
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood,
do hereby certify that the foregoing resolution was passed and
adopted by the City Council of the City of Lynwood at a regular
meeting held on the 15th day of October , 1991, by the
following vote:
AYES: COUNCILNSNBERS BRINE, REA, RICHARDS, WELLS, HENNING
NOES: MORE
ABSENT: NONE
CITY CLERK, CITY OF L�`
STATE OF 'CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood,
and Clerk of the City Council of said City, do hereby certify
that the above and foregoing is a full, true and correct copy
of Resolution No.91 -164 on file in my office and that said
resolution was adopted on the date and by the vote therein
stated.
Dated this 15th day of October , 1991. /
cc:memosl
CITY CLERK