Resolution - 9641RESOLUTION NO. 9641
RESOLUTION NO. 9641 - A RESOLUTION OF THE WEST
COVINA CITY COUNCIL APPROVING AN AMENDMENT TO THE
• JOINT EXERCISE OF POWERS AGREEMENT FOR INSURANCE
AND RISK MANAGEMENT PURPOSES; APPROVING THE
ADMITTANCE OF THE CITY OF CHINO TO MEMBERSHIP IN THE
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY; AND
APPOINTING REPRESENTATIVES TO THE INDEPENDENT CITIES
RISK MANAGEMENT AUTHORITY AND THE SEPARATE RISK
MANAGEMENT PROGRAMS.
WHEREAS, the City of West Covina is a member of the Independent
Cities Risk Management Authority ("ICRMA"); and
WHEREAS, the City of Chino has applied for membership in the ICRMA;
and
WHEREAS, the admittance to membership of the City of Chino has been
approved by the ICRMA Governing Board; and
WHEREAS, the ICRMA Governing Board has recommended
amendments to the Joint Exercise of Powers Agreement ("JPA"), a copy of which
amended JPA has been provided to this City Council; and
WHEREAS, the JPA and the Health Benefits, Liability, Property and
Workers' Compensation Risk Management Programs' By -Laws require that each
Member City appoint an elected official, by resolution, to serve on -the ICRMA
Governing Board, and to each of the separate Risk Management Programs in which this
city is a member, along with an alternate to act in the Primary Member's absence:
NOW, THEREFORE, the City.Council of the City of West Covina does
hereby find, determine and declare as follows:
SECTION 1. This City Council does approve the amended JPA as
approved by the ICRMA Governing Board and as presented to this City Council;
SECTION 2. This City Council does hereby approve the admittance of
the City of Chino as a member of the ICRMA;
SECTION 3. This City Council does hereby appoint the Honorable
Michael R. Touhey to serve as the primary Governing Board representative on the
ICRMA and Carol Fox, Director of Personnel and Risk Management, to serve as the
alternate representative. These appointees shall also act as the city's representatives to
the Health Benefits, Liability, Property and Workers' Compensation Risk Management
Programs of which this city is a member.
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RESOLVED FURTHER, that the City Clerk shall certify to the adoption
of this resolution and thenceforth and thereafter the same shall be in full force and effect.
RESOLVED FURTHER, that a copy of this resolution shall be forwarded
to the Independent Cities Risk Management Authority.
PASSED, APPROVED AND ADOPTED this 1st
ATTEST:
City Clerk
of December, 1998.
I HEREBY CERTIFY that the foregoing was duly adopted by the City Council on the 1st
day of December, 1998.
AYES:
NOES:
ABSENT:
ABSTAIN:
Herfert, Howard,
None
None
None
APPROVED AS TO FORM:
ICRMA Resolution
Touhey, Wong, Melendez
City i,[cr
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
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agreements set forth in this Agreement, the Member, Cities agree as follows:
ARTICLE I. CREATION OF THE INDEPENDENT CITIES RISK MANAGEMENT
AUTHORITY.
Pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code of the State of California, the Member Cities hereby create a
public entity, separate and apart from the Member Cities, to be known as the Independent
Cities Risk Management Authority, hereinafter referred to as the "Authority". Pursuant to
Government Code Section 6508.1, the debts, liabilities, and obligations of the Authority
shall not constitute debts, liabilities, or obligations of any Member City. A Member City
may separately contract for or assume responsibility for specific debts, liabilities, or
obligations of the Authority. Pursuant to and to the extent required by Government Code
Section 6509, the Authority shall be restricted in the exercise of its powers in the same
manner as the City of Manhattan Beach is restricted in its exercise of similar powers
provided that, if the City of Manhattan Beach shall cease to be a Member City, then the
Authority shall be restricted in the exercise of its power in the same manner as the City of
San Fernando. If the CC of San Fernando shall cease to be a Member C� then the
Governing Board shall designate the as oro Member Ci
ARTICLE II. PURPOSE.
The purpose of creating this Authority is to exercise the powers of the Member Cities to
jointly accomplish the following:
A. Develop effective Risk Management Programs to reduce the amount and frequency of
their losses.
B. Develop Risk Management Programs of insurance to protect Member Cities from the
effects of catastrophic or unexpected losses. Such programs shall include, but not be
limited to, coverages for losses arising out of Tort Liability, Workers' Compensation,
Health Benefits, and the ownership or use of real or personal property.
C. Design Risk Management Programs of the Authority on a pooled or self -funded basis
whereby the Member Cities share some portion, or all, of the costs of the program
losses.
D. Jointly purchase insurance, excess insurance, or reinsurance for the purpose of
transferring risk of loss to commercial insurers.
E. Assist Member Cities to secure a long-term financial base from the issuance of
Certificates of Participation. The revenues generated from the Certificates of
Participation will be used for the purpose of establishing and maintaining sufficient
unencumbered financial reserves, thereby enabling the Authority to provide adequate
protection to Member Cities against catastrophic, or greater than expected, claims, and
to attract major reinsurers for the purpose of transferring risk. ,
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F. Jointly secure administrative and other services including, but not limited to,
underwriting, risk management, loss prevention, claims adjusting, data processing,
brokerage, accounting, and legal services when related to any of the other purposes.
ARTICLE III. DEFINITIONS
The following definitions shall apply to the provisions of this Agreement and the By -Laws
of the Risk Management Programs :
A. "Agreement" shall mean this Agreement creating the Independent Cities Risk
Management Authority.
B. "Board" or "Governing Board" shall mean the governing body of the Authority.
C. "By -Laws" shall mean the rules governing the management of each individual Risk
Management Program .
D. "Claim(s)" shall mean demand(s) made against the . Member Cities arising out of
occurrences which are covered or alleged to be covered by the Authority's
Memorandums of Coverage, or policies of insurance.
E. "Fiscal Year" shall mean the period of time commencing on July 1 of each year , and
thereafter ending on June 30 each following year.
F. "ICRMA" shall mean the Independent Cities Risk Management Authority created by
this Agreement.
G. "Insurance" shall mean insurance purchased by the Authority to cover losses for its
Member Cities.
H. "Member City" shall mean any Municipal Corporation or any Joint Powers Authority,
whose membership consists only of Municipal Corporations, which is a party to this
Agreement and is participating in one or more Risk Management Programs .
I. "Memorandum of Coverage" shall mean the document or documents issued by the
Authority specifying the types of coverages and limits provided to the Member Cities.
J. "Program Year" shall mean a period of time, usually twelve months, in which each
program shall be segregated for ease in determining coverage premiums.
K. "Participation" or 'Participating" shall mean a Member City has elected to jointly
participate in the management of a specific risk and is a member of that Risk
Management Program .
L. "Risk Management" shall mean the process of identifying, evaluating, reducing,
transferring, and eliminating risks. Risk Management includes various methods of
funding claims payments, purchasing insurance, legal defense of claims, controlling
losses, and determining self -insured retention levels and the amount of reserves for
potential claims.
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ARTICLE VI. BOARD MEETINGS AND RECORDS.
A. Regular Meetings. The Governing Board shall hold at least one regular meeting each
quarter of each year. The Governing Board shall fix by resolution the date upon which,
and the hour and place at which, each regular meeting is to be held.
B. Ralph M. Brown Act. Each meeting of the Governing Board, including without
limitation, regular, adjourned regular, and special meetings shall be called, noticed,
held, and conducted in accordance with the Ralph M. Brown Act (Section 54950
et. seq. of the Government Code).
C. Minutes. Minutes of regular, adjourned regular, and special meetings of the Authority
shall be kept by the Secretary. As soon as possible after each meeting, the Secretary
shall forward to each Governing Board member and each City Clerk copies of the
minutes.
D. Quorum. A majority of the members of the Governing Board is a quorum for the
transaction of business. However, less than a quorum may adjourn from time to time.
A vote of the majority of a quorum at a meeting is sufficient to take action.
ARTICLE VII. OFFICERS.
The Governing. Board shall elect a president and vice-president from among its members
at its first meeting. Thereafter, in the last meeting in each succeeding fiscal year, the
Governing Board shall elect a' president and a vice-president. Each officer shall assume
the duties of his office upon election. If either the president or vice-president cease to be
a member, the resulting vacancy shall be filled at the next regular meeting of the
Governing Board held after the vacancy occurs. In the absence or inability of the
president to act, the vice-president acts as president. The president shall preside at and
conduct all meetings of the Governing Board. The Governing Board shall appoint a
secretary and a treasurer of the Authority who may, but need not be, a member of the
Governing Board. The Governing Board may appoint such other officers as it considers
necessary.
ARTICLE Vill. POWERS.
The Authority shall have the powers common to its Mea;-er Cities and is authorized, in its
own name, to do all acts necessary to exercise such common powers to fulfill the
purposes of this Agreement referred to in Article Il including, but not limited to, each of the
following:
A. Finance through the issuance of Certificates of Participation, or other instruments of
indebtedness, self-insurance reserve funds necessary or convenient for the
implementation of this Agreement.
B. Incur debts, liabilities, and obligations.
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ARTICLE X. MEMBER CITY RESPONSIBILITIES.
Each Member City participating in a Risk Management Program shall have the following
responsibilities:
A. To appoint or remove its member of the Governing Board as set forth in Article V.
B. To appoint or remove its member to the Risk Management Program(s) .
C. To approve amendments to this Agreement as set forth in Article XX.
ARTICLE XI. BUDGET.
The overnin Board shall adopt an annual budget as soon as possible for the first Fiscal
Year and not later than thirty days prior to the beginning of each Fiscal Year thereafter.
ARTICLE XII. ANNUAL AUDIT AND REVIEW.
The Governing Board shall cause an annual'financial audit of the accounts and records to
be made by a Certified Public Accountant in compliance with California Government Code
Sections 6505 and 6505.5 or 6505.6 with respect to all receipts, disbursements, other
transactions, and entries into the books of the Authority. The minimum requirements of
the audit shall be those prescribed by the State Controller for special districts under
Government Code Section 26909 and shall conform to generally accepted auditing
standards. A report of each audit shall be filed as a public record with each of the Member
Cities and also with the county auditor of the county in which each of the Member Cities is
located. The report shall be filed within twelve months of the fiscal year under
examination. The Authority shall pay all costs of such financial audits.
ARTICLE XIII. ESTABLISHMENT AND ADMINISTRATION OF FUNDS.
Funds of the Authority may be commingled for investment and administration purposes.
However, each Risk Management Program shall be accounted for separately on a full
accrual basis.
Warrants shall be drawn to pay demands against the Authority. Said warrants shall be
signed by both the President, Secretary or Treasurer and an agent, employee or general
manager of the Authority.
The coverage for each Program Year of each Risk Management Program shall be as
specified in the Memorandum of Coverage or policies of insurance for that Program Year
of the Risk Management Program. Subject to approval by the Governing Board, which
approval shall not be unreasonably withheld, each Member City shall have the ability to
determine in which Risk Management ProgramLs if wishes to participate.
ARTICLE XIV. WITHDRAWAL.
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final disposition of all claims and expenses associated with such loss.
ARTICLE XVII. NEW MEMBERS.
With the approval of two-thirds of the Governing Board, any qualified city may become a
party to this Agreement. Continuing or new membership is restricted to cities which are
members of the Independent Cities Association and are located in the State of California.
A city requesting membership shall apply by presenting to the Authority a resolution of the
City Council approving this Agreement, as amended, and the individual Risk Management
Program By -Laws that the city intends to join. The date that the applying city will become
a Member City will be determined by the Governing Board.
ARTICLE XVIII. LIABILITY OF THE AUTHORITY.
Each Member City agrees to indemnify and save the Authority and all other Member Cities
harmless from and against all claims, losses, and damages, including legal fees and
expenses, arising out of any breach or default on the part of such Member City in
performance of any of its obligations under this Agreement, or any act or negligence of
such Member City or any of its agents, contractors, servants, employees or licensees with
respect to this Agreement. No indemnification is made under this Section for claims,
losses or damages, including legal fees and expenses, arising out of the willful
misconduct, negligence or breach of duty under this Agreement by the Authority or a
Member City or their officers, employees, agents or contractors.
The Representatives to the Governing Board and to each of the Risk Management
Programs and any officer, employee, contractor, or agent of the Authority shall use
ordinary care and reasonable diligence in the exercise of their power and in the
performance of their duties under this Agreement.
Funds of the Authority may be used to defend, indemnify, and hold harmless the Authority
and any member of the Governing Board, any member of the a Risk Management
Program , and any employee of the Authority for their actions taken within the scope of
their duties while acting on behalf of the Authority. Nothing herein shall limit the right of
the Authority to purchase insurance to provide such coverage as is hereinabove set forth.
ARTICLE XI . NOTICES.
Notices under this Agreement shall be sufficient if delivered to the office of the City Clerk
of the Member Cities.
ARTICLE XX. AMENDMENTS TO THIS AGREEMENT AND PROGRAM BY-LAWS.
This Agreement may be amended at any time by vote of two-thirds of the Member Cities
acting through their City Council. Amendments to the individual Risk Management
Program By -Laws require two -third vote of the Governing Board members representing
cities which are members of that Risk Management Program .
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•
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
MEMBER CITIES
1.
Alhambra
2.
Arcadia
3.
Azusa
4.
Baldwin Park
5.
Bell
6.
Chino
7.
Colton
8.
Culver City
9.
Downey
10.
El Monte
11.
ElSegundo
12.
Fullerton
13.
Gardena
14.
Glendora
15.
Hawthorne
16.
Hermosa Beach
17.
Huntington Park
18.
Indio
19.
Inglewood
20.
Lynwood
21.
Manhattan Beach
2 2.- MoA taro y-M o n ro v i a
23.
Monterey Park
24.
Redondo Beach
25.
San Fernando
26.
South Gate
27.
Upland
28.
Vernon
29.
West Covina
30.
Whittier
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cities which are members of that Risk Management Program .
ARTICLE XXI. SEVERABILITY.
Should any portion, term, condition, or provision of this Agreement be decided by a court
of competent jurisdiction to be illegal or in conflict with any law of the State of California, or
be otherwise rendered unenforceable or ineffectual, the validity.of the remaining portions,
terms, conditions, and provisions shall not be affected thereby.
ARTICLE XXII. AGREEMENT COMPLETE.
The foregoing constitutes the full and complete Agreement of the parties. There are no
oral understandings or agreements not set forth in writing herein.
ARTICLE XXIII. TERM OF AGREEMENT.
This amended Agreement shall become effective upon the Authority receiving notice of
the approval by the City Council of two-thirds of the Member Cities.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first written above. d
City of West Covina
M
Title Ai¢ Yak -
Executed
before me this
/�Zo day of 1999'
' Gib"Cleat
City of
(City Seal)
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