BICEP 2-1988 - Laserfiche WebLink

Home Browse Search

7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 1 WHEREAS, the Participants have further determined that the obtaining of the insurance protection and services provided for 3 under this Agreement is essential to the preservation and fostering of the health, safety and property rights of the 5 citizens of each Participant and the lack of availability of reasonable commercial public entity liability insurance to local governments generally in the State and to the Participants in particular constitute a public emergency; WHEREAS, each Participant has heretofore determined that it is necessary and in the interest of the citizens of each such Participant to establish, through the issuance and sale of the Bonds, and maintain through pro rata contributions of each Participant a debt service reserve fund therefor, in order to establish adequate reserves to permit the Bonds to be marketed at the lowest possible interest rates; WHEREAS, the cost of funding and maintaining such reserve fund has been determined by each Participant to be more than offset by the anticipated benefits and economies to be realized by the pooling of risks and losses pursuant to this Agreement; WHEREAS, Article 16, Section 6 of the Constitution of the State of California, regarding lending of public credit or funds, provides, in relevant part, that such Section "shall not prohibit any county, city and county, city, township, or other political corporation or subdivision of the State from joining with other such agencies in providing for the payment of workers' compensation, unemployment compensation, tort liability, or public liability losses incurred by such agencies, by entry into an insurance pooling arrangement under a joint exercise of powers agreement, or by membership in such publicly-owned nonprofit corporation or other public agency as may be authorized by the Legislature"; WHEREAS, it is a matter for the city council of each Participant to determine the amount of premiums which such Participant shall pay for proper insurance coverage; WHEREAS, each Participant has heretofore determined and does hereby confirm that, in view of the foregoing facts and circumstances, the premiums to be required hereunder are reasonable and advantageous and to the public benefit of the citizens of such Participant; WHEREAS, the Participants have determined to implement a risk sharing program, by means of execution of this Agreement, prior to issuance of the Bonds; NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the parties hereto agree as follows: 4 2658002/2