Mendocino County Municipal Code Ch. 5.62 General Liability Trust Fund

The Auditor of the County of Mendocino shall establish a separate interest-bearing trust fund entitled: "General Liability Trust Fund."

(Ord. No. 3132, adopted 1978.)

Funds deposited in the General Liability Trust Fund shall be used solely for proper expenditures and claims related to the County's established program for General Liability insurance including but not limited to:

(a) Direct and attendant claim costs, including but not limited to:

(1) Payments for incurred personal injury,

(2) Payments for property damage, deductibles and co-payments of all kinds, including property damage caused by fire, water and flooding as well as other causes, except for street or road damage,

(3) Deposits to the Administration Revolving Trust, which is the account from which the above payments shall be made;

(b) Administration costs;

(c) Legal and other allocated costs;

(d) Internal County support costs;

(e) Bond expenses;

(f) Educational expenses;

(g) Travel expenses;

(h) Insurance premium expenses for excess coverage and other specific coverage policies.

(Ord. No. 3132, adopted 1978; Ord. No. 3925, adopted 1996.)

The following monies shall be deposited in the General Liability Trust Fund:

(a) Any amounts formally budgeted by the Board of Supervisors for inclusion into the Fund.

(b) Any funds paid to the County, from whatever source, for the provision of General Liability coverage.

(c) Any reimbursement made to the County for past payments made on claims.

(d) Any and all interest received from the investment or reinvestment of monies with the Fund.

In addition to such mandatory deposits, the Board of Supervisors may at any time, for any purpose and from any proper and available source, deposit additional monies into the Fund.

(A) The balance of the General Liability Trust Fund shall remain actuarially sound at all times and at no less than the seventy percent (70%) confidence level.

(B) The Board of Supervisors shall retain an independent actuarial consultant every three years or less, if necessary, to report on the actuarial status of the Fund.

(C) Upon receipt of and consideration of the Actuarial report, the Board of Supervisors shall, within a reasonable period of time, order such deposits into or withdrawals from the Fund as are necessary to maintain the balance of the Fund in an actuarially sound status.

(Ord. No. 3132, adopted 1978; Ord. No. 3925, adopted 1996.)

No payments or withdrawals from the Fund shall be made except by specific authorization of the Board of Supervisors, for the purposes set forth in Section 5.62.020, or for the purpose of maintaining a balance within the limitations of Section 5.62.040. The Board may delegate this function to the appropriate officer.

(Ord. No. 3132, adopted 1978; Ord. No. 3925, adopted 1996.)