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COC~NTY OF BUTTE, ..STATE OF CALIFORNIA.
Resolution No. 90W 149
RESOLUTION OF THE BOARD OF SUPERVISORS
OF THE COUNTY OF BUTTE AUTHORIZING THE TREASURER
TO OBTAIN A LETTER OF CREDIT IN AN AMOUNT NOT TO
EXCEED $600,000, IN FAVOR OF BLUE CROSS OF CALIFORNIA, TO BE DRAWN
IN THE EVENT OF DEFAULT BY THE COUNTY IN THE PAYMENT OF PREMIUMS
WHEREAS, the County of Butte, has experienced significant
financial difficulties which have received widespread publicity;
and
WHEREAS, such publicity has caused Blue Cross of California,
as the County's proposed health insurance company, to consider
not providing health insurance coverage for County officers,
employees and retirees; and
WHEREAS, it is in the County's best interest now to provide
health insurance coverage to its officers, employees and retirees
through Blue Cross of California, while at the same time
protecting its own financial interests; and
WHEREAS, both the interests of Blue Cross and the interests
of the County of Butte may be satisfied by the County Treasurer
obtaining a Letter of Credit through First Interstate Bank of
California, in favor of Blue Cross, which letter may be drawn
upon in the event of certain defaults by the County.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF BUTTE as follows:
That the Butte County Treasurer is hereby authorized to
obtain a Letter of Credit in an amount not to exceed $600,000
drawn in favor of Blue Cross of California, with the conditions
thereof allowing Blue Cross to draw upon the Letter of Credit in
the event of default by the County of Butte in the payment of
premiums, as specified in a written agreement to be negotiated
with Blue Cross and approved by the County Personnel Director,
County Counsel and County Auditor.
PASSED AND ADOPTED by the Butte County Board of
Supervisors this loth day of October , 1990, by the
following vote:
AYES: Supervisors hlcInturf, Dolan and Chairman hlcLaughlin
NOES: None
ABSENT: Supervisors Vercruse and Fulton
NOT VOTING: None
C
ED McLAUGHLIN, hair of the
Butte County Board of Supervisors
ATTEST:
WILLIAM H. RANDOLPH,
Chief Administrative Officer
and Clerk of the Board
By