Columbia

ee \

Suite 15

10551 Shellbridge Way
Richmond

British Columbia

V6X 2W9

(604) 270-8226

President
Chairman R.D. Cumming

Executive Director
Richard Taylor

MAY 25.198?

May 1, 1987

Mayor and Council,
City of Port Coquitlam,
2272 McAllister Avenue,
PORT COQUITLAM, BC

V3C 2A8 cence

Dear Sirs:

RE: REPORT OF THE UBCM LIABILITY TASK FORCE

In the fall of 1986 your municipality agreed to participate in the
second phase of the UBCM Self-Insurance Study.

The objectives of that study were to determine:

@ the mechanism for establishing a group self-insurance program

for B.C. municipalities and regional districts;

@ the costs involved and how those casts would be allocated among
the participating members;

@ the liability coverage to be provided; and

@ appropriate administrative structures, ;

Accompanying this letter is our report on the results of the
Self-Insurance Phase II Study. l :
Briefly, our report contains a proposal to establish a reciprocal
insurance exchance of B.C. municipalities and regional districts
that would fund the first $1 million of a broadly~based
comprehensive general liability and errors and omissions liability
coverage. An additional $4 million coverage over the $1 million
would be arranged as excess insurance with the form of liability
coverage matching the primary or $1 million level.

The cost to your municipality and the deductible you would assume
under the program are set out in the attached Summary of Costs and
Coverage.

Details of this proposal can be very complex yet the concept is
quite simple:

@ . coverage is designed ta fit the needs of local government in 8.C.
@ the plan offers Stable, predictable and clearly ascertainable

costs.
a