Chapter 3.30 — SELF-INSURANCE FUNDS

In order to establish and finance a self-insurance program, there is established for the town of Corte Madera ("town") six internal service funds for the payment of workers' compensation, general liability and automobile liability, property and vehicle damage, earthquake damage, flood and tidal wave damage, and other exposures ("internal service funds").

(Ord. 856 § 1 (part), 2000: Ord. 824 § 1 (part), 1997)

(a)

A fund shall be established for the payment of present and future workers' compensation claims and claims expenses, claims administration costs, safety programs, disability prevention programs, claims investigation fees, legal defense costs, injury prevention programs and any other risk management fees related to workers' compensation claims or the prevention thereof. This fund shall be known as the "Internal Service Fund No. 1—Workers' Compensation Self-Insurance."

(b)

A fund shall be established for the payment of present and future general liability and automobile liability claims and claims expenses, claims administration costs, loss control programs, claims investigation fees, legal defense costs, risk management service fees, public safety and injury prevention programs and any other risk management fees related to general liability and automobile liability claims or the prevention thereof. This fund shall be known as the "Internal Service Fund No. 2—General Liability and Automobile Liability Self-Insurance."

(c)

A fund shall be established for the payment of present and future property and vehicle damage claims and claims expenses, claims administration costs, loss control programs, claims investigation fees, legal defense costs, risk management service fees, public safety and injury prevention programs and any other risk management fees related to property and vehicle damage claims or the prevention thereof. This fund shall be known as the "Internal Service Fund No. 3—Property and Vehicle Damage Self-Insurance."

(d)

A fund shall be established for the payment of losses to the town resulting from any damage to town- owned buildings or property owned by the town contained within town-owned buildings arising out of the occurrence of earthquakes. This fund shall be known as "Internal Service Fund No. 4—Earthquake Damage Self-Insurance."

(e)

A fund shall be established for the payment of losses to the town resulting from any damage to town- owned buildings or property owned by the town contained within town-owned buildings arising out of the occurrence of floods and/or tidal waves. This fund shall be known as "Internal Service Fund No. 5—Flood Damage Self-Insurance."

(f)

A fund shall be established for the payment of present and future claims and claims expenses, claims administration costs, loss control programs, claims investigation fees, legal defense costs, risk management service fees, safety and prevention programs and any other risk management fees relating to claims or the prevention of claims arising from liability exposures not covered by Internal Service Fund No. 1—Workers' Compensation Self-Insurance, Internal Service Fund No. 2—General Liability and Automobile

Liability Self-Insurance or Internal Service Fund No. 3—Property and Vehicle Damage Self-Insurance, including but not limited to exposures such as deductibles on the town's property insurance, earthquake insurance, flood insurance and automobile insurance policies. This fund shall be known as the "Internal Service Fund No. 6—Other Exposures Self-Insurance."

(Ord. 856 § 1 (part), 2000: Ord. 824 § 1 (part), 1997)

(a)

To provide initial funding for Internal Service Fund No. 1—Workers' Compensation Self-Insurance, the town's assets currently held by the Marin County Risk Management Authority, a JPA, shall be transferred to Internal Service Fund No. 1—Workers' Compensation Self-Insurance.

(b)

To provide initial funding for Internal Service Fund No. 2—General Liability and Automobile Liability Self- Insurance, the town's assets currently held by the Marin Cities Liability Management Authority, a JPA, shall be transferred to Internal Service Fund No. 2—General Liability and Automobile Liability Self-Insurance.

(c)

To provide initial funding for Internal Service Fund No. 3—Property and Vehicle Damage Self-Insurance, currently budgeted but unexpended monies for these purposes shall be transferred to Internal Service Fund No. 3—Property and Vehicle Damage Self-Insurance.

(d)

To provide initial funding for Internal Service Fund No 4—Earthquake Damage Self-Insurance, a portion, in an amount to be determined by the town, of town's assets in Internal Service Funds No.'s 1, 2, 3 and 6 shall be transferred to Internal Service Fund No. 4—Earthquake Damage Self-Insurance.

(e)

To provide initial funding for Internal Service Fund No. 5—Flood Damage Self-Insurance, a portion, in an amount to be determined by the town, of the town's assets in Internal Service Funds No.'s 1, 2, 3 and 6 shall be transferred to Internal Service Fund No. 5—Flood Damage Self-Insurance.

(f)

To provide initial funding for Internal Service Fund No. 6—Other Exposures Self-Insurance, currently budgeted but unexpended monies for these purposes shall be transferred to Internal Service Fund No. 6— Other Exposures Self-Insurance.

(Ord. 856 § 1 (part), 2000: Ord. 824 § 1 (part), 1997)

The funds in Internal Service Fund No. 1—Workers' Compensation Self-Insurance shall be used only for the purposes set forth in Section 3.30.020(a). The funds in Internal Service Fund No. 2—General Liability and Automobile Liability Self-Insurance shall be used only for the purposes set forth in Section 3.30.020(b). The funds in Internal Service Fund No. 3—Property and Vehicle Damage Self-Insurance shall be used only for the purposes set forth in Section 3.30.020(c). The funds in Internal Service Funds No. 4—Earthquake Damage Self-Insurance, shall be used only for the purposes set forth in Section 3.30.020(d). The funds in Internal Service Funds No. 5—Flood Damage Self-Insurance shall be used only for the purposes set forth in Section 3.30.030(e). The funds in Internal Service Fund No. 6—Other Exposures Self-Insurance shall be used only for the purposes set forth in Section 3.30.020(f). Notwithstanding anything to the contrary stated above, upon a resolution duly passed by the town council, each Internal Service Fund may borrow money from the other Internal Service Fund(s) due to unexpected claims if a re-payment plan is approved by the town council. Each Internal Service Fund shall receive its pro-rata share of investment earnings.

(Ord. 856 § 1 (part), 2000: Ord. 824 § 1 (part), 1997)

The town council may approve by separate resolution other provisions regarding the administration of the self-insurance program and/or the internal service funds established by this chapter. Such provisions may include information regarding, but not limited to, how the internal service funds are administered and how often, if at all, actuarial funding studies will be conducted.

(Ord. 856 § 1 (part), 2000: Ord. 824 § 1 (part), 1997)