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HomeMy WebLinkAbout02235 - CV JOINT POWERS INSURANCE AUTHORITY CVJPIA CVJPIA - Amended & Restated AGREEMENT #2235 R16441, 4-6-88 Effective: July 25, 1985 JOINT POWERS AGREEMENT CREATING THE COACHELLA VALLEY JOINT POWERS INSURANCE AUTHORITY This Agreement is executed in the State of California by and among those local governments and special districts organized and existing under the Constitution of the the State of California which, under the sponsorship of the Coachella Valley Association of Governments , hereinafter called CVAG, are parties signatory to this Agreement. All such local public entities, hereinafter called member organizations, shall be listed in Appendix A, which shall be attached hereto and made a part hereof. RECITALS WHEREAS, Article 1, Chapter 5, Division 7 , Title 1 of the California Government Code permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties ; and WHEREAS , California Government Code Section 990.4 provides that a local public entity may self-insure, I purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and Amended: December 9 , 1985 1988 DJEc/6 -1- WHEREAS , Article 16 , Section 6 of the California Constitution provides that insurance pooling arrangements under joint exercise of power agreements shall not be considered the giving or lending of credit as prohibited therein; and WHEREAS , California Government Code Section 990 . 8 provides that two or more local public entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990 . 4 ; and WHEREAS, the local governments and special districts executing this Agreement desire to join together for the purpose of jointly funding programs of insurance for workers ' compensation, comprehensive liability, and other- coverages to be determined; NOW THEREFORE, the parties agree as follows: ARTICLE 1 DEFINITIONS "Authority" shall mean the Coachella Valley Joint Powers Insurance Authority created by this Agreement. "Board of Directors" or "Board" shall mean the governing body of the Authority. "Claim" shall mean a claim made against a member organization arising out of a loss which is covered by an DJEc/6 -2- insurance program of the Authority in which the member organization is a participant. "CVAG" shall mean the Coachella Valley Association of Governments . "Dependent district" shall mean a special district or county service area within a member organization which is governed by the member organization's governing board. "Executive Committee" shall mean the Executive Committee of the Board of Directors - of the Authority, or shall mean the Board of Directors if no separate Executive Committee has been appointed. "Insurance ) Program" shall mean a program of the Authority under which participating member organizations are protected against designated losses . "Fiscal year" shall mean that period of twelve months which is established by the Board of Directors as the fiscal year of the Authority. "Government Code" shall mean the California Government Code. "Joint powers law" shall mean Article 1, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code. "Loss" shall mean 'a liability or potential liability of a member organization, including litigation expenses, attorney's fees and other defense costs, which is covered by DJEc/6 -3- an insurance program of the Authoritv in which the member organization is a participant. "Member organization" shall mean any local government or special district or other local public entity approved for membership in the Authority which has executed this Agreement and become a member of the Authority. "Participating member organization, " as used in reference to an insurance program of the Authority, shall mean any member organization which has entered that program pursuant to this Agreement and has not withdrawn or been cancelled therefrom pursuant to Articles 19 or 20 . "Policy year" shall mean, for each insurance program of the Authority, that period of twelve months commencing upon the effective date of the program, and each twelve-month period thereafter. ARTICLE 2 PURPOSES This Agreement is entered into by the member organizations to jointly develop and fund programs of insurance.- and such other coverage as may be determined by the Authority. I All such purposes 'shall be accomplished through a joint exercise of powers by such organizations, pursuant to this Agreement, by a separate legal entity, the Coachella Valley Joint Powers Insurance Authority, as created herein. DJEc/6 -4- ARTICLE 3 PARTIES TO AGREEMENT (a) Each member organization, as a party to this Agreement, certifies that it intends to and does contract with all other member organizations as parties to this Agreement and, in addition, with such other organizations as may later be added as parties to this Agreement pursuant to Article 18 . Each member organization also agrees that the cancellation or withdrawal of any party from this Agreement, pursuant to Articles- }-ar- v0 20, shall not affect this Agreement as to those member organizations then remaining. (b) Any member organization may contract on behalf of, and shall be deemed to include: (1) Any dependent district, from the time that the member organization provides the Authority written notice of the name and inclusion of such district. (2) Any other local public entity which --receives insurance coverage from the member organization, subject to the approval of the Board of Directors. Such district or other local public entity shall not be considered a separate party to this Agreement, shall not affect the member organi ation's representation on the Board of Directors, and shall be part of and represented by the member organization for all purposes under this Agreement. DJEc/6 -5- ARTICLE 4 POWERS AND DUTIES OF CVAG CVAG shall be an ex-officio member organization of Authority and shall have the following powers and duties : (a) To provide all administrative services for Authority and its insurance programs. (b) To empower its Executive Director to serve , as General Manager/Secretary of Authority. (c) To exercise such other powers and duties as the Board of Directors deems necessary to achieve the purposes of this Agreement. ARTICLE 5 TERM phis-Agreement-eha��-beeome-ef£eetib*e-when-exeeated-and -retUrneel -to-£�7A(7--by- a -feast--fotx�r-iuember-organisstiono- Amendments to this Agreement shall become effective when approved, executed and returned to the Authority by two-thirds of the member organizations . This Agreement shall continue in effect until terminated as provided herein. ARTICLE 6 CREATION OF THE AUTHORITY Pursuant to the joint powers law, there is hereby created a public entity separate and apart from the parties DJEc/6 -6- hereto, to be known as the Coachella valley Joint Powers Insurance Authority. ARTICLE 7 POWERS OF THE AUTHORITY The Authority shall have all of the powers common to its member organizations in California and all additional powers set forth in the joint powers law, and Authority is hereby authorized to do all acts necessary for the exercise of said powers. Such powers include, but are not limited to, the following: (a) To make and enter into contracts. (b) To incur debts, liabilities, and obligations. (c) To acquire, hold, or dispose of property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities. (d) To sue and be sued in its own name, and to settle any claim against it. (e) To receive and use contributions and advances from member organizations as provided in Government Code Section 6504 , including contributions or advances of personnel, equipment, or property. rc (f) To invest any I 'money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509 . 5. DJEc/6 -7- (g) To do such other things as are necessary to carry out all provisions of this Agreement. Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law. ARTICLE 8 BOARD OF DIRECTORS The authority shall be governed by The Board of Directors, which shall be composed of one director from each member organization provided- amber-orgen>Qgt3on9_�se meiab�r9-ef- kc-httthori�pLs-}iab}�i�y-pregrem which maintains membership in the liability program. CVAG shall be represented as an ex-officio non-voting member organization. Each member of the Board shall be appointed by the member organization's governing body and shall serve at the pleasure of that body. Each member organization shall also appoint an alternate director who shall have the authority to attend, participate in and vote at any meeting of the Board when the director is absent. A director, or alternate director, shall be an elected official or employee of the member organization. Termination of office or employment with the member organization shall automatically terminate r' membership or alternate membership on the Board. Any vacancy in a director or alternate director position shall be filled by the appointing member organization's governing body, subject to the provisions of this article. DJEc/6 -8- the--reme�tal-�f--I�±�_�r.+-s.-�}rsen�--fir-ciao--ems--Mere eenaeextive-meetinge-b�*-tho-eppeinting-member-orgen3aet#onts goe erniag-�y--mgy-�'-regtras tec4-by-eras o�-ity-Prot-e--o-�-a��-e£ tke-remern3ng-members-of-the-Berard-ef-Bireetere---rPhe-veeant po a itien--Kira --use--- i�1� --}ry---tke--�ppo-i rrt� --member ergan�aet�eata-ge�erning-body- A majority of the membership of the Board of Directors shall c©ris%itute a quorum for the transaction of business . Except as otherwise provided in this Agreement, action of the Board shall require the affirmative vote of a majority of the quorum; provided, however, that any action which is restricted in effect to one of the Authority's insurance programs, as determined by the President of the Board, shall also require the affirmative vote of a majority of those members of the Board of Directors present and voting who represent member organizations participating in that program; and provided, further, that any actions of the Board may be overruled or amended within 30 days by a vote of two-thirds of the Member Organizations who are also members of the Executive Committee of CVAG. ARTICLE 9 POWERS OF ,THE BOARD OF DIRECTORS The Board of Directors shall have the following powers and functions: DJEc/6 -9- (a) The Board shall exercise all powers and conduct all business of the Authority, either directly or by delegation of authority to other bodies or persons pursuant to this Agreement and applicable law. (b) The Board may form an Executive Committee from its membership, as provided in Article 12 , and may delegate to that Committee such powers as it sees fit, provided that all powers of the Executive Committee shall be exercised under the direction of the Board. (c) The Board may form such other committees as it deems appropriate in conducting the business of the Authority. (d) The Board shall elect the officers of the Authority. (e) The Board shall cause to be prepared and adopt the annual operating budget of the Authority. (f) The Board shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each insurance program of the Authority, including all provisions for reinsurance and administrative services necessary to carry out such program. (g) The Board shall contract or otherwise provide for necessary services to ' the Authority and to member organizations. These necessary services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, DJEc/6 -10- actuarial consulting, claims adjusting, and legal defense services. (h) The Board, either directly or through the Executive Committee, shall provide general supervision and policy direction to the General Manager of the Authority and the Secretary of the Board be-tke-ET�r46-EeetiivrB#reefer. (i) The Board shall receive and act upon reports of its committees and General Manager/Secretary, either directly or through the Executive Committee. (j ) The Board shall establish monetary limits upon any delegation of the claims payment and settlement authority, beyond which a proposed settlement must be referred to the Board for approval . (k) The Board may require that the Authority review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any member organization insofar as those functions are affecting the liability or potential liability of the Authority. The Board may forward any or all such recommendations to the member organization with a request for compliance and a statement of potential consequences for noncompliance. (1) The Board shall receive, review and act upon 1r, periodic reports and audits of the funds of the Authority, as required under Articles 15 and 16 of this Agreement. DSEc/6 -11- (m) The Board shall have such other powers and functions as are provided for in this Agreement, in the Bylaws of the Authority, and in applicable law. ARTICLE 10 MEETINGS OF THE BOARD OF DIRECTORS (a) The Board shall hold at least one regular annual meeting and shall provide for such other regular meetings as it deems necessary. (b) The General Manager/Secretary of the Authority shall provide for the keeping of minutes of regular and special meetings of the Board, and shall, as soon as possible after each meeting, forward a copy of the minutes to each member of the Board. (c) All meetings of the Board shall be called, noticed, held and conducted in accordance with the provisions of Government Code Section 54950 et seq. ARTICLE 11 OFFICERS The Board of Directors shall annually elect from its membership a President and Vice President of the Board at its regular annual meeting to service for one-year terms . The President, or in his or her absence, the Vice President, shall preside at and conduct all meetings of the Board and chair the Executive Committee. DJEc/6 -12- i Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law. ARTICLE 12 EXECUTIVE COMMITTEE The Board of Directors may establish an Executive Committee of the Board which shall consist of five persons: the President and Vice President of the Board, and three directors elected by the Board from its membership. The terms of office of the three non-officer member shall be as provided for in the Bylaws of the Authority. The Executive Committee shall conduct the business of the Authority between meetings of the Board, exercising such powers as are delegated to it by the Board, under the direction of the Board. ARTICLE 13 STAFF Principal Staff. (a) The following staff members shall be supplied by CVAG: (1) General Manager/Secretary. The General Manager/Secretary mey-be�2VA81e-ExeetibiFe-B£reebor-Whe shall administer the business and activities of the Authority, subject to the general supervision and policy direction of the Board of Directors and Executive Committee; shall be DJEc/6 -13- responsible for all minutes, notices and records of the Authority; and shall perform such other duties as are assigned by the Board and Executive Committee. (2) Other Staff. The General Manager/Secretary may provide for such other staff as may be necessary for the administration of the Authority, subject to Board approval .. (b) Pursuant to Government Code Section 6505. 5, the Treasurer and Auditor shall be the treasurer and auditor of a member organization of the Authority. (1) Treasurer. The duties of the Treasurer are set forth in Articles 15 and 16 of this Agreement. (2) Auditor. The Auditor shall draw warrants to pay demands against the Authority when approved by the Treasurer, and shall perform the annual audit functions required under Article 15 . (c) Charges for Treasurer and Auditor Services. Pursuant to Government Code Section 6505 . 5 , the charges to the Authority for the services of the Treasurer and Auditor shall be determined by the governing board of the member organization from which such staff members are appointed. ARTICLE 14 SUPPORT OF AUTHORITY'S GENERAL EXPENSES Costs of staffing and supporting the Authority, hereinafter called Authority general expenses, shall be equitably allocated among the various programs by the Board, DJEc/6 -14- and shall be funded by the member organizations developing or participating in such programs in accordance with such allocations, as hereinafter provided. Member organizations who are not members of CVAG shall be required to pay annual in-lieu dues to CVAG. In addition, the Board may, 4:a at its discretion, allocate a share of such Authority general expense to those member organizations which are not developing or participating in any program, and require those member organizations to fund such share through a prescribed charge. ARTICLE 15 FUNDING AND IMPLEMENTATION OF INSURANCE PROGRAMS (a) Program Funding. The member organizations developing or participating in an insurance program shall fund all costs of that program, including administrative costs, as hereinafter provided. (1) Development Charge. Development costs of an insurance program shall be funded by a development charge, as fixed by this Agreement or determined by the Board of Directors. The development charge shall be paid by each member organization which wishes to join in development of the program and thereby reserve the option to participate in the program following its adoption by the Board. Development costs are those costs incurred by the Authority DJEc/6 -15- in developing a program for review and adoption by the Board of Directors, including, but not limited to: research, feasibility studies, information and liaison work among member organizations, preparation and review of documents , and actuarial and risk management consulting services. The development charge may also include a share of Authority general expense, as allocated to the prog--a..m development function by the Board. The development charge shall be billed by the Authority to all member organizations upon authorization of program development by the Board and shall be payable within thirty (30) days of the billing date. Upon the conclusion of program development: any deficiency in development funds shall be billed to all member organizations that have paid the development charge, on a pro-rata or other acceptable basis, as determined by the Board; and any surplus in these funds shall be billed to all member organizations that have paid the development charge, on a pro-rata or other acceptable basis, as determined by the Board- and any surplus in these funds shall be transferred into the loss reserve funds for the program, or, if the program is not implemented, into the Authority's general expense funds. 1r', (2) Annual Premium. Except as provided in (3 ) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the member organizations participating in the program each policy year, DJEc/6 -16- and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors upon the basis of a cost 'proration plan and rating formula developed by the Authority with the assistance of a casualty actuary, risk management consultant, or other qualified person and described in the Bylaws. The premium for each participating member organization shall' include that organization's share of expected claims costs, program reinsurance costs, and program administrative costs for the year, plus that member organization's share of Authority general expense charged to the program by the Board. Breen#uus-s}�a}}-}�e--}ri33��-��.�.t�rr�-ab-beginning of-each-fro-13t�+-�ea�-arte�--sht�-�1--� �l�-iribirsn-thirby-f39} d ayn--o-�--tgze--fri33-i�g--dabe----Fcllciting--t-3ta--�3rtrse--af--the flseal---er--pregrem---�*eer---pad+roll--figures--bp--S,ar3eerst eempeneeblen--Z-at-max}--elessifleeticns-��T-be-:T�,r�t;,�_fe-P -per emcxm--erec}�h•-mep be-requ#red-based-upon-sueh-final-payrel}-figures- f3}--Premium---�u ehct�a� ----�fi---tlt - Authorlty experieneC9--air-tt3'ittstta3�y--}-arefc-z,ta�v.�c-�: -e -_l-r, g- U�-@ program--c}gring-�--po-1-i�-y---�,��-�,}r.-ghat--netW ithstend#ng re#nsuranee-�ei�rge--€ex-3.a��-yi��u�1--}osses;--t3re--3oint i n sur en ee-£ands-�or"t-}red'-pi_-oq-rai�r.��e�--}�-exhattshec�-be€ere-th e next- ei-rrr�ttai--p-reinruitrs--are-zitte;--t�xe-B e e rd-rtrf--L}rre*=ty,-rs--me Y ripen--eoirstrl-t-et-3-oir-rrtith--a- a-r�--aetttar7;- m�so-se--premium sureharges-on-all-part4elpat}ng-member-ergeniset3ons--wh#eh- DJEc/6 -17- }n-tcta}-amount--to#}}-aeet�re-adegnete-fttnde-to-the-At�tkor_ty for--tyre--�-of-�1-�--stre-h--}en3eo--�rrcxti-etect,--#.�re�--the et3reharge-tc-any-pert#e}pat}ng-member-organization-eke}}-nat organ}aet}oaLe- a3--prem�tr�r-.go�•.��-year----E-ae_-}r-member aka}}-be-}}ab}e-er.}y-for-#te-pre-rate-eharc-of-pram}nme-pa}d dkr}ng-the-program-year-in-„�hiek-tke-de€}e#eney-oeeterred- (3) Premium Surcharge. If the Authority eLc2eriences an unusually large number of losses during a policy year the funds for a given Program may become exhausted. In such case the Board may, upon consultation with an actuary, impose premium surcharges on all members who were in the Program at the time such loss or losses occurred in order to pay necessary costs However annual surcharges shall not exceed an amount equal to three times the member's_ annual premium for the policy year in which such loss occurred. Each member surcharge shall be based upon it's pro rata share of premiums paid in said year. It is understood this does not limit the Authority from surcharges in future years even losses for which a levy may have been imposed in a previous year. (b) Late Entry Into Program. A member organization which does not elect to enter an insurance program upon its implementation or a member organization which becomes a party to this Agreement following implementation of the program, may petition the Board of Directors for late entry DJEc/6 -la- i • into the program. Such request may be granted upon_ a vote of two-thirds of the quorum, plus a vote of two-thirds of a quorum of those members who represent member organ-nations participating in the program. As a condition of late entry, the member organization shall pay the development charge for the program, as adjusted at the conclusion of the development period, but not subject to further adjustment, and also any costs incurred by the Authority in analyzing the member organization's loss data and determining its annual premium as of the time of entry. The method of calculating premium charges to late entrants shall be specified in the Bylaws. ARTICLE 16 ACCOUNTS AND RECORDS (a) Annual Budget. The Authority shall annually adopt an operating budget pursuant to Article 9 of this Agreement, which shall include a separate budget for each insurance program under development or adopted and implemented by the Authority. (b) Funds and Accounts. The Treasurer of the Authority shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board of Directors. Separate accounts shall be established and maintained for each insurance program under development or adopted and implemented by the Authority. DJEc/6 -19- Books and records of the Authority in the hands of the Treasurer shall be open to inspection at all reasonable times by authorized representatives of member organizations . The Authority shall adhere to the standard of strict accountability for funds set forth in Government Code 6505 . (c) Treasurer's Report. The Treasurer, within one hundred and twenty (120) days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Board and to each member organization. (d) Annual Audit. Pursuant to Government Code Section 6505, the Auditor shall either make or contract with a certified public accountant to make an annual fiscal year audit of all accounts and records of the Authority, conforming in all respects with the requirements of that section. A report of the audit shall be filed as a public record with each member organization within six months of the end of the fiscal year under examination. Costs of the audit shall be considered a general expense of the Authority. ,,ARTICLE 17 r, RESPONSIBILITIES FOR FUNDS AND PROPERTY (a) The Treasurer shall have the custody of and disburse the Authority's funds. He or she may delegate disbursing authority to such persons as may be authorized by DJEc/6 _20_ the Board of Directors to perform that function, subject to the requirements of (b) below. (b) Pursuant to Government Code Section 6505 . 5 , the Treasurer shall: (1) Receive and acknowledge receipt for all funds of the Authority and place them in the treasury of the Treasurer to the credit of the Authority. (2) Be responsible upon his or her official bond for the safekeeping and disbursement of all Authority funds so held by him or her. (3) Pay any sums due from the Authority, as approved for payment by the Board of Directors or by any body or person to whom the Board has delegated approval authority, making such payments from Authority funds upon warrants drawn by the Auditor. (4) Verify and report in writing to the Authority and to member organizations, as of the first day of each quarter of the fiscal year, the amount of money then held for the Authority, the amount of receipts since the last report, and the amount paid out since the last report. (c) Pursuant to Government Code Section 6505. 1, the General Manager/Secretary, the Treasurer, and such other rr, persons as the Board of ' Directors may designate shall have charge of, handle, and have access to the property of the Authority. DJEc/6 -21- (d) The Authority shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in form specified by the Board of Directors, covering all officers and employees of the Authority who are authorized to hold or disburse funds of the Authority, and all officers and employees who are authorized to have charge of, handle, and have access to property of the Authority. ARTICLE IS RESPONSIBILITIES OF MEMBER ORGANIZATIONS Member organizations shall have the following responsibilities ,under this Agreement. (a) The governing body of each member organization shall appoint a representative and one alternate representative to the Board of Directors, pursuant to Article S. Such representatives and alternate representatives 'shall be an officer or employee of such member organization. (b) Each member organization shall provide the Authority such other information or assistance as may be necessary for the Authority to develop and implement insurance programs under this Agreement and shall comply with and conform to such, standardized reporting, processing and administrative practices as may be established by the Authority. D7Ec/6 -22- (c) Each member organization shall have such other responsibilities as are provided elsewhere in this Agreement, and as are established by the Board of Directors in order to carry out the purposes of this Agreement. ARTICLE 19 NEW MEMBERS Any local government entity or special district or other local public entity may become a party to Luis Agreement and a member of the Authority only upon approval by CVAG's Executive Committee and by an affirmative vote of a majority of the member organizations of the Authority and upon payment of such fees, charges, premiums and capital fees as may be deemed appropriate by the Authority. WITHBRAWAE ARTICLE 20 CANCELLATION OR WITHDRAWAL (a) A member organization may withdraw as a party to this Agreement upon thirty (30) days' advance written notice to the Authority if it has never become a participant in any insurance program pursuant to Article 15, or if it has �r withdrawn from all insurance programs in which it was a participant, pursuant to (b) below. DJEc/6 -23- ---------------etre�� ��ex-eR-w �xBwa� (a) The Board of Directors may: (1) Cancel, for reasonable cause, any member organization from this Agreement and membership in the Authority, on a vote of two-thirds of the quorum of the Board members. such action shall have the effect. of cancelling the member organization's participation in all insurance programs of the Authority as of the date that membership is cancelled, subject to the notice provisions below. (2) C,ancel any member organization's participation in an insurance program of the Authority, without cancelling the member organization's membership in the Authority or participation in other programs, on a vote of two-thirds of the quorum of the Board members, plus a vote of two-thirds of the quorum of the members who represent member organizations participating in the program, subject to the notice provisions below. The Board shall give ninety (90) days' advance written notice of the effective date of any cancellation under the foregoing provisions. Upon such effective date, the member organization shall beC treated the same as if it had voluntarily withdrawn from this Agreement, or from the program, as the case may be. DJEc/6 -24- i • (b) Any member having completed three (3) years as a party to this Agreement may withdraw from its status as a member only at the end of a policy year for the program, and only if it gives the Authority at least ninety (90) days' advance written notice of such action. (c) A member organization which withdraws from all insurance programs of the Authority in which it was a participant and does not enter any program for a period of six (6) months thereafter shall considered to have withdrawn as a party to this Agreement at the end of such period, and its membership in the Authority shall be automatically cancelled as of that time, without action of the Board of Directors. ARTICLE 21 EFFECT OF CANCELLATION OR WITHDRAWAL (a) I£ a member organization withdraws from participation in an insurance program of the Authority or such participation is cancelled, with or without cancellation of membership in the Authority, and such cancellation is effective before the end of the policy year for that program, the Authority shall promptly determine and return to the member organization the amount of any unearned premium payment from the member organization for the policy year, such amount to be computed on a pro rata basis from the effective date of cancellation. In addition, the Board DJEc/6 -25- of Directors may in its sole and absolute discretion determine and return to the member organization such fees, charges and pro rata share of assets as it may determine are due and owing to such member organization. (b) Except as provided in (a) above, a member organization w:lich withdraws or is cancelled from this Agreement and membership in the Authority, or from any program of the Authority, shall not be entitled to the return of any premium or other payment to the Authority, or of any property contributed to the Authority. However, in the event of termination of this Agreement, such member organization may, share in the distribution of assets of the Authority to the extent provided in Article 21. (c) Notwithstanding withdrawal or cancellation from any insurance program of the Authority, a member organization shall pay any premium charges which the Board of Directors determines are due from the member organization for losses and costs during the period in which the member organization was a participant in such program. Such charges may include any deficiency in a premium previously paid by the member organization, any premium surcharge assessed to the member, organization and any additional amount of premium which 'the Board determines to be due from the member organization upon final disposition of all known or future claims arising from known or potential losses under the program during the organization's period of DJEc/6 -26- participa-_-on. Any such premium charges shall be payable by the organization within thirty (30) days of billing by the Authority_ The liability of the Authority for incurred, but not reported, claims shall be governed by the particular insurance program provisions. ARTICLE 22 TERMINATION AND DISTRIBUTION OF ASSETS (a) This Agreement may be terminated at any time upon the. election to terminate of three-fourths of the member organizations acting through their governing boards ; provided, however, that this Agreement and the Authority shall continue to exist after such election for the purpose of disposing of all claims, distributing all assets, and performing all other functions necessary to conclude the affairs of the Authority. (b) Upon termination of this Agreement, all assets of the Authority in each insurance program shall be distributed among those member organizations which participated in that program in proportion to their cash contributions, including premiums paid and property contributed (at market value when contributed) . The Board of Directors shall determine such r distribution within six 'months after disposal of the last I pending claim or other liability covered by the program. DJEc/6 _27_ (c) Following termination of this Agreement, any member organization which was a participant in an insurance program of the Authority shall pay any additional amount of premium, determined by the Board of Directors in accordance with a loss allocation formula, which may be necessary to enablc final disposition of all claims arising from losses under that program during the member organization's period of participation. ARTICLE 23 BYLAWS AND PROCEDURES MANUAL As soon as practical after the effective date of this Agreement, the Board shall arrange for the preparation of Bylaws and a Procedures Manual to govern the day-to-day operations of the Authority. Upon adoption by the Board, such documents shall be delivered by the Authority to each member organization. ARTICLE 24 NOTICES The Authority shall address notices, billings and other communications to a member organization as directed by the organization. Member organizations shall address notices i and other communications to the Authority to the General Manager/Secretary of the Authority, at the Coachella Valley Association of Governments . DSEc/6 -28- ARTICLE 25 AMENDMENT This Agreement may be amended at any time by a vote of two-thirds of the member organizations, acting through their governing boards, provided that such amendments may be overridden by a vote of two-thirds of the member organizations which are members of the CVAG Executive Committee taken within 30 days of the date on which such amendments are adopted or become effective. ARTICLE 26 PROHIBITION AGAINST ASSIGNMENT No member organization may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any member organization shall have any right, claim or title to any party, share, interest, fund, premium or asset of the Authority. ARTICLE 27 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. DJEc/6 -29- r ARTICLE 28 FILING WITH SECRETARY OF STATE Tne Secretary of the Authority shall file notice of this Agreement or any amendments to it with the office of the California Secretary of State within 30 days of its effective date, as required by Government Code Section 6503 . 5 . IN WITNESS WHEREOF, the undersigned party hereto has executed this agreement on the date indicated below. Date: May 24, 1983 CITY OF HEMET Member Organization BY `/ =�3 Ken s i no Mayor r, DJEc/6 -30- GVAG - .TPA creating Ins. Authority AGREEMENT #2235 R15624, 9-4-85 E f fective: -- -- JOINT POWERS AGREEMENT CREATING THE COACHELLA VALLEY JOINT POWERS INSURANCE AUTHORITY This Agreement is executed in the State of California by and among those local governments and special districts organized and existing under the Constitution of the State of California which, under the sponsorship of the Coachella Valley Association of Governments, herinafter called CVAG, are parties signatory to this Agreement. All such local public entities, herinafter called member organizations, shall be listed in Appendix A, which shall be attached hereto and made a part hereof. RECITALS WHEREAS, Article 1, Chapter 5, Division 7 Title 1 of the California Government Code permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these: and WHEREAS, Article 16, Section 6 of the California Constitution provides that insurance pooling arrangements under joint exercise of power agreements shall not be considered the giving or lending of credit as prohibited therein: and WHEREAS, California Government Code Section 990.8 provides that two or more local public entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4: and WHEREAS, the local governments and special districts executing this Agreement desire to join together for the purpose of jointly funding programs of insurance for workers' compensation, comprehensive liability, and other coverages to be determined; NOW THEREFORE, the parties agree as follows: ARTICLE 1 DEFINITIONS "Authority" shall mean the Coachella Valley Joint Powers Insurance Authority created by this Agreement. "Board of Directors" or "Board" shall mean the governing body of the Authority. " Claim" shall mean a claim made against a member organization arising out of a loss which is covered by an insurance program of the Authority in which the member organization is a participant. "CVAG" shall mean the Coachella Valley Association of Governments. "Dependent district" shall mean a special district or county service area within a member organization which is governed by the member organizations governing board. "Executive Committee" shall mean the Executive Committee of the Board of Directors of the Authority, or shall rnean the Board of Directors if no separate Executive Committee has been appointed. "Insurance program" shall mean a program of the Authority under which participating member organizations are protected against designated losses. "Fiscal year" shall mean that period of twelve months which is„established by the Board of Directors as the fiscal year of the Authority. "Government Code" shall mean the California Government Code. "Joint powers law" shall mean Article 1, Chapter 5, Division 7, Title I commencing with Section 6500) of the Government Code. "Loss" shall mean a liability or potential liability of a member organization, including litigation expenses, attorney's fees and other defense costs, which is covered by an insurance program of the Authority in which the member organization is a participant. 2 "INember organization" shall mean any local government or special district or other local public entity which, through its membership in CVAG or approval by CVAG for membership in the authority, has executed this Agreement and become a member of the Authority. "Participating member organization", as used in reference to an insurance program of the Authority, shall mean any member organization which has entered that program pursuant to Article 16 of this Agreement and has not withdrawn or been cancelled therefrom pursuant to Articles 23 or 24. "Policy year" shall mean, for each insurance program of the Authority, that period of twelve months commencing upon the effective date of the program, and each twelve-month period thereafter. "Reinsurance" shall mean excess insurance purchased by the Authority as part of an insurance program to cover that portion of any loss which exceeds the joint funding capacity of that program. ARTICLE 2 PURPOSES This Agreement is entered into by the member organizations to jointly develop and fund programs of insurance for workers' compensation, comprehensive liability, and such other coverages as may be determined by the Authority, which programs may include the creation of joint insurance funds, and the purchase of reinsurance; and to provide necessary administrative services. Such administrative services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services. All such purposes shall be accomplished through a joint exercise of powers by such organizations, pursuant to this Agreement, by a separate legal entity, the Coachella Valley Joint Powers Insurance Authority, as created herein. 3 ARTICLE 3 PARTIES TO AGREEMENT (a) Each member organization, as a party to this Agreement, certifies that it intends to and does contract with all other member organizations as parties to this Agreement and, in addition, with such other organizations as may later be added as parties to this Agreement pursuant to Article 21. Each member organization also agrees that the withdrawal or removal of any party from this Agreement, pursuant to Articles 22 or 23, shall not affect this Agreement as to those member organizations then remaining. (b) Any member organization may contract on behalf of, and shall be deemed to include: (1) Any dependent district, from the time that the member organization provides the Authority written notice of the name and inclusion of such district. (2) Any other local public entity -which receives insurance coverage from the member organization, subject to the approval of the Authority Board. Such district or other local public entity shall not be considered a separate party to this Agreement, shall not affect the member organization's representation on the Board of Directors, and shall be part of and represented by the member organization for all purposes under this Agreement. ARTICLE 4 POWERS AND DUTIES OF CVAG CVAG shall be an ex-officio member organization of Authority and shall have the following powers and duties: 1. To provide all administrative services for Authority and its insurance programs. I . 2. To empower its Executive Director to serve as General Manager/Secretary of Authority. 4 3. To exercise such other powers and duties as the Board of Authority deems necessary to achieve the purposes of this Agreement. ARTICLE 5 TERM This Agreement shall become effective when executed and returned to CVAG by at least four member organizations. CVAG shall promptly notify all member organizations in writing of such effective date. This Agreement shall continue in effect until terminated as provided herein. ARTICLE 6 CREATION OF THE AUTHORITY Pursuant to the joint powers law, there is hereby created a public entity separate and apart from the parties hereto, to be known as the Coachella Valley Joint Powers Insurance Authority. It is agreed that during the months preceding the effective date of this Agreement, CVAG has performed various functions to assist the in creation of the Authority and to develop an initial program of insurance for consideration and action by the Authority. Interested cities have contributed funds to finance these efforts, in the amounts of the development charges specified in Article 16 (e). It is further agreed that CVAG will continue to provide the Authority with staff services, will receive and disburse funds and perform other necessary ministerial functions for the Authority. Such services will be at the direction of the Authority Board as soon as that body is organized. At such time as the Treasurer is appointed pursuant to Article 15, CVAG shall deliver to the Treasurer an independent accounting of all funds contributed and received by CVAG for the Coachella Valley Joint Powers Authority and disbursements therefrom. The cost of such accounting shall be charged to the Authority. Such accounting shall include a statement of the costs of CVAG's services to the Authority to the date of accounting. The costs of services provided by CVAG shall be reimbursed by the Authority on a monthly basis, upon submission of a statement by CVAG satisfactory to the Treasurer. Pre-agreement costs incurred by CVAG after January 30, _ 1985, in creating Authority shall be reimbursed to CVAG by Authority within ninety (90) days following the effective date of this Agreement. ARTICLE 7 POWERS OF THE AUTHORITY The Authority shall have all of the powers common to its member organizations in California and all additional powers set forth in the joint powers law, and Authority is hereby authorized to do all acts necessary for the exercise of said powers. Such powers include, but are not limited to, the following: (a) To make and enter into contracts. (b) To incur debts, liabilities, and obligations. (c) To acquire, hold, or dispose of property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities. (d) To sue and be sued in its own name, and to settle any claim against it. (e) To receive and use contributions and advances from member organizations as provided in Government Code Section 6504, including contributions or advances of personnel, equipment, or property. (I) To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5. (g) To do such other things as are necessary to carry out all provisions of this Agreement. 6 Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law. ARTICLE 8 BOARD OF DIRECTORS The Authority shall be governed by the Board of Directors, which shall be composed of one director from each member organization, except CVAG as an ex-officio member organization, appointed by the member organization's governing body and serving at the pleasure of that body. Each member organization shall also appoint an alternate director who shall have the authority to attend, participate in and vote at any meeting of the Board when the director is absent. A director or alternate director shall be an elected official, or staff person of the member organization. Termination of office or employment with the member organization, shall automatir_ally terminate membership or alternate membership on the Board. Any vacancy in a director or alternate director position shall be filled by the appointing member organization's governing body, subject to the provisions of this article. A majority of the membership of the Board shall constitute a quorum for the transaction of business. Each member of the. Board shall have one vote. Except as otherwise provided in this Agreement, action of the Board shall require the affirmative vote of a majority of the quorum; provided, however, that any action which is restricted in effect to one of the Authority's insurance programs, as determined by the President of the Board, shall also require the affirmative vote of a majority of those members present and voting who represent member organizations participating in that program. ARTICLE 9 POWERS OF THE BOARD OF DIRECTORS The Board of Directors shall have the following powers and functions: 7 (a) The Board shall exercise all powers and conduct all business of the Authority, either directly or by delegation of authority to other bodies or persons pursuant to this Agreement and applicable law. (b) The Board may form an Executive Committee from its membership, as provided in Article 12, and may delegate to that Committee such powers as it sees fit, provided that all powers of the Executive Committee shall be exercised under the direction of the Board. (c) The Board shall also form a Claims Review Committee as provided in Article 13, and such other committees as it deems appropriate in conducting the business of the Authority. The membership of any such other committee may consist in whole or in part of non-Board members; provided, that the Board may delegate its powers and duties only to a committee of the Board composed of Board members, and any other commitee may function only in an advisory capacity. (d) The Board shall elect the officers of the Authority. (e) The Board shall cause to be prepared and adopt the annual operating budget of the Authority. (1) The Board shall develop, or cause to be developed, and shall review, modify as necessary; and adopt each insurance program of the Authority, including all provisions for reinsurance and administrative services necessary to carry out such program. (g) The Board shall contract or otherwise provide for necessary services to the Authority and to member organizations. These necessary services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services. (h) The Board shall provide general supervision and policy direction to the CVAG Executive Director who shall serve as the General Manager/Secretary, either directly or through the Executive Committee. 8 (i) The Board shall receive and act upon reports of the Claims Review Committee and General Manager/Secretary, either directly or through the Executive Committee. The Board shall establish monetary limits upon any delegation of claims payment and settlement authority, beyond which a proposed settlement must be referred to the Board for approval. (k) The Board may require that the Authority review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any member organization insofar as those functions are affecting the liability or potential liability of the Authority. The Board may Forward any or all such recommendations to the member organization with a request for compliance and a statement of potential consequences for noncompliance. (1) The Board shall receive, review and act upon periodic reports and audits of the funds of the Authority, as required under Articles 17 and 18 of this Agreement. (m) The Board shall have such other powers and functions as are provided for in this Agreement, in the Bylaws of the Authority, and in applicable law. ARTICLE 10 MEETINGS OF THE BOARD OF DIRECTORS (a) The Board shall hold at least one regular meeting each year and shall provide for such other regular meetings and special meetings as it deems necessary. (b) The General Manager/Secretary of the Authority shall provide for the keeping of minutes of regular and special meetings of the Board, and shall, as soon as possible after each meeting, forward a copy of the minutes to each member of the Board. (c) All meetings of the Board shall be called, noticed, held-and conducted in accordance with the provisions of Government Code Section 54950 et seq. r 9 I . ARTICLE 11 OFFICERS The Board of Directors shall elect from its membership a President and Vice President of the Board,, each to hold office until the end of calendar year 1985. At the end of such calendar year and at the end of each calendar year thereafter, the Board shall elect a President. and Vice President to take office at the beginning of the succeeding calendar year to serve for one-year terms. The President, or in his or her absence, the Vice President, shall preside at and conduct all meetings of the Board and shall chair the Executive Committee. ARTICLE 12 EXECUTIVE COMMITTEE The Board of Directors may establish an Executive Committee of the Board which shall consist of three members: the President and Vice President of the Board, and one member elected by the Board from its membership. The terms of office of the one non-office member shall be as provided for in the Bylaws of the Authority. The Executive Committee shall conduct the business of the Authority between meetings of the Board, exercising such powers as are delegated to it by, the Board, under the direction of the Board. ARTICLE 13 CLAIMS REVIEW COMMITTEE The Board of Directors may establish a Claims Review Comittee consisting of three members, each of whom shall be a staff person from a member organization experienced in claims and insurance matters, such as an attorney, risk manager, or claims administrator. Members of the Committee shall be appointed by the Board or by the 10 • s Executive Committee, if so directed by the Board, and shall serve at the pleasure of the appointing body. The appointing body shall select one member to chair the Committee. The Claims Review Committee shall advise the Board and Executive Committee as to the nature and extent of claims adjusting and legal defense services necessary to protect the funds of the Authority, and as to the settlement of those claims which involve liability of the Authority. The Claims Review Committee shall meet on the call-of its chairman, and shalt report to the Executive Committee as directed by the Board. ARTICLE 14 STAFF Principal Staff. a. The following staff members shall be supplied by CVAG: (1) General Manager/Secretary. The General Manager/Secretary shall be CVAG's Executive Director who shall administer the business and activities of the Authority, subject to the general supervision and policy direction of the Board of Directors and Executive Committee: shall be responsible for all minutes, notices and records of the Authority; and shall perform such other duties as are assigned by the Board and Executive Committee. (2) Other Staff. The General Manager/Secretary, may provide for such other staff as may be necessary for the administration of the Authority, subject to Board approval. b. Pursuant to Government Code Section 6505.5, the Treasurer and Auditor be the treasurer and auditor of a member organization of the Authority. (1) Treasurer. The duties of the Treasurer are set forth in Articles 16 and 17 of this Agreement. 11 (2) Auditor. The Auditor shall draw warrants to pay demands against the Authority when approved by the Treasurer, and shall perform the annual audit functions required under Article 17 - (c) Charges for Treasurer and Auditor Services. Pursuant to Government Code Section 6505.5, the charges to the Authority for the services of the Treasurer and Auditor shall be determined by the governing board of the member organization from which such staff members are appointed. ARTICLE 15 SUPPORT OF AUTHORITY GENERAL EXPENSES Costs of staffing and supporting the Authority, hereinafter called Authority general expenses, shall be equitably allocated among the various programs by the Board, and shall be funded by the member organizations developing or participating in such programs in accordance with such allocations, as hereinafter provided. In addition, the Board may, in its discretion, allocate a share of such Authority general expense to those member organizations which are not developing or participating in any program, and require those member organizations to fund such share through a prescribed charge. ARTICLE 16 DEVELOPMENT, FUNDING AND IMPLEMENTATION OF INSURANCE PROGRAMS (a) Program Coverage. Insurance programs of the Authority may provide coverages for: (1) Workers' compensation; (2) Comprehensive liability, including but not limited to general, personal injury, contractual, public official errors and omissions, and incidental malpractice liabilities; 12 (3) Comprehensive automobile liability; and may provide any other coverages authorized by the Board of Directors. The Board shall determine, for each such program, a minimum number of member organization participants required for program implementation. (b) Program Funding. The member organizations developing or participating in an insurance program shall fund all costs of that program, including administrative costs, as hereinafter provided. G) DeveloDment Charge. Development costs of an insurance program shall be funded by a development charge, as fixed by this Agreement or determined by the Board of Directors. The development charge shall be paid by each member organization which wishes to join in development of the program and thereby reserve the option to participate in the program following its adoption by the Board. Development costs are those costs incurred by the Authority, or by CVAG as sponsor of this Agreement prior to creation and organization of the Authority, in developing a program for review and adoption by the Board of Directors, including, but not limited to: research, feasibility studies, information and liaison work among member organizations, preparation and review of documents, and actuarial and risk management consulting services. The development charge may also include a share of Authority general expense, as allocated to the program development function by the Board. The development charge shall be billed by the Authority to all member organizations upon authorization of program development by the Board and shall be payable within thirty (30) days of the billing date. Contributions to CVAG by interested member organizations for development of programs prior to the creation and organization of the Authority shall be credited against the development charges for those programs assessed by the Authority. , Upon the conclusion of program development: any deficiency in development funds shall be billed to all member organizations that have paid the development charge, 13 i J on a pro-rata or other acceptable basis, as determined by the Board; and any surplus in these funds shall be transferred into the loss reserve funds for the program, or, if the program is not implemented, into the authority's general expense funds. (2) Annual Premium. Except as provided in (3) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the member organizations participating in the program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors upon the basis of a cost proration plan and rating formula developed by the Authority with the assistance of a casualty actuary, risk management consultant, or other qualified person and described in the Bylaws. The premium for each participating member organization shall include that organization's share of expected claims costs, program reinsurance costs, and program administrative costs for the year, plus that member organization's share of Authority general expense charged to the program by the Board. Premiums shall be billed by the Authority at beginning of each policy year and shall be payable within thirty (30) days of the billing date. Following the close of the fiscal, or program, year, payroll figures by workers' compensation rating classifications shall be submitted to the Authority. Additional premium or a premium credit may be required based upon such final payroll figures. (3) Premium Surchar e. If the Authority experiences an unusually large number of losses under a program during a policy year such that notwithstandng reinsurance coverage for large, unusual losses, the joint insurance funds for the program may be exhausted before the next annual premiums are due, the Board of Directors may, bpon consultation with a casualty actuary, impose premium surcharges on all participating member organizations, which, in total amount, will assure adequate funds to the Authority for the payment of all such losses; provided, that the surcharge to any participating member organization shall not exceed an amount equal to three times the, member 14 organization's annual premium for that year. Each member shall be liable only for its pro rata share of premiums paid during the program year in which the deficiency occurred. (c) Program Implementation and Effective Date. Following development of an insurance program and upon its adoption by the Board of Directors, the Authority shall give each member organization which has paid the development charge for the program a written notice of the program, which shall include: the coverage and terms of coverage of the program, the minimum number of member organizations required for program implementation, and the estimated first-year premium to the member organization for program participation. Each such member organization may elect to enter the program by giving written notice of such election, in a form prescribed by the Authority, to the General Manager/Secretary within thirty (30) days of the date of the Authority's notice of the program. Any member organization which has not paid the development charge as of the date of the program notice may enter the program only if it pays such charge and gives notice of such election within the above 30-day period. When at least the mi.numum number of member organizations required for program implementation have elected to enter the program, the Authority shall determine the actual first-year premium to each member organization so electing and shall give each such member organization written notice thereof. if a member organization's actual first-year premium is the same as or less than that estimated by the Authority, the member organization shall remain bound by its election to enter. If the actual first-year premium is more than that estimated by the Authority, the member organization may revoke its election to enter the program by giving the General Manager/Secretary written notice of such decision within thirty (30) days of the date of the actual premium notice. When the Authority determines that at least the minimum number of member organizations required for program implementation remain entered irn.the program, it shall give written notice to that effect to all member organizations which have elected to enter, and the program shall become effective on that date of such notice. All such 15 �, member organizations shall thereafter be considered participants in the program, except for any member organization which revokes its entry into the program under the terms and within the time period above provided. (d) Late Entry Into Program. A member organization which does not elect to enter an insurance program upon its implementation, pursuant to (c) above, or a member organization which becomes a party to this Agreement following implementation of the program, may petition the Board of Directors for late entry into the program. Such request may be granted upon a vote of two-thirds of the quorum, plus a vote of two- thirds of a quorum of those members who represent member organizations participating in the program. As a condition of late entry, the member organization shall pay the development charge for the program, as adjusted at the conclusion of the development period, but not subject to further adjustment, and also any costs incurred by the Authority in analyzing the member organization's loss data and determining its annual premium as of the time of entry. The method of calculating premium charges to late entrants shall be specified in the Bylavrs. (e) Order of --'riority and Special Conditions for Program Development and Implementation. _ (1) Workers' Compensation Program. As soon as practical after the effective date of this Agreement, the Board of Directors shall review and consider implementation of the program of workers' compensation insurance which has been developed by CVAG under the guidance of its Joint Powers Insurance Committee, formed by the CVAG Executive Committee on January 30, 1985. It is recognized that in order to permit timely impelementation of this program in 1985, a number of implementation steps, such as first-year premium estimates, will have been accomplished-by CVAG prior to the time that the Board is organized and considers the program, even though such steps would ordinarily not be taken, under the terms of this article, until adoption of the 16 program by the Board. Accordingly, if the Board adopts such program, it may, at the same time, ratify and adopt any or all implementation steps taken to that date. The development charge for workers' compensation program is fixed at $300 for each interested member organization. (2) Liability ,program. As its next priority after reviewing and acting upon the workers' compensation program as above described, the Board shall consider authorization of the development of a program of liability insurance for member organizations. The development charge for that program will be fixed by the Board of f Directors of the Authority. , ARTICLE 17 ACCOUNTS AND RECORDS (a) Annual Budget. The Authority shall annually adopt an operating budget pursuant to Article 9 of this Agreement, which shall include a separate budget for each insurance program under development or adopted and implemented by the Authority. (b) Funds and Accounts. The Treasurer of the Authority shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board of Directors. Separate accounts shall be established and maintained for each insurance program under development or adopted and implemented by the Authority. Books and records of the Authority in the hands of the Treasurer shall be open to inspection at all reasonable times by authorized representatives of member organizations. The Authority shall adhere to the standard of strict accountability for funds set forth in Government Code 6505. (c) Treasurer's Report. The Treasurer, within one hundred and twenty (120) days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Board and to each member organization. 17 ` 4 (d) Annual Audit. Pursuant to Government Code Section 6505, the Auditor shall either make or contract with a certified public accountant to make an annual fiscal year audit of all accounts and records of the Authority, conforming in all respects with the requirements of that section. A report of the audit shall be filed as a public record with each member government within six months of the end of the fiscal year under examination. Costs of the audit shall be considered a general expense of the Authority. ARTICLE 18 RESPONSIBILITIES FOR FUNDS AND PROPERTY (a) The Treasurer shall have the custody of and disburse the Authority's funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board of Directors to perform that function, subject to the requirements of (b) below. (b) Pursuant to Government Code Section 6505.5, the Treasurer shall: (1) Receive and acknowledge receipt for all funds of the Authority and place them in the treasury of the Treasurer to the credit of the Authority. (2) Be responsible upon his or her official bond for the safekeeping and disbursement of all Authority funds so held by him or her. (3) Pay any sums due from the Authority, as approved for payment by the Board of Directors or by any body or person to whom the Board has delegated approval authority, making such payments from Authority funds upon warrants drawn by the Auditor. (4) Verify and report in writing to the Authority and to member organizations, as of the first day of each quarter of the fiscal year, the amount of money then held for the Authority, the amount of receipts since the last report, and the amount paid out since the last report. 18 0 0 (c) Pursuant to Government Code Section 6505.1, the General Manager/Secretary, the Treasurer, and such other persons as the Board of Directors may designate shall have charge of, handle, and have access to the property of the Authority. (d) The Authority shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in form specified by the Board of Directors, covering all officers and staff of the Authority who are authorized to hold or disburse funds of the Authority, and all officers and staff who are authorized to have charge of, handle, and have access to property of the Authority. ARTICLE 19 RESPONSIBILITIES OF MEMBER ORGANIZATIONS Member organizations shall have the following responsibilities ' under this Agreement. (a) The governing body of each member organization shall appoint a representative and one alternate representative to the Board of Directors, pursuant to Article 8. (b) Each member organization shall appoint an officer or employee of the member organization to be responsible for the risk management function within that member organization and to serve as a liaison between the member organization and the Authority for all matters relating to risk management. (c) Each member organization shall be expected to consider and act upon all recommendations of the Authority concerning the reduction of unsafe practices. (d) Each member organization shall maintain its own claims and loss records in each category of liability covered by an insurance progam of the Authority in which the member organization is a participant, and shall provide copies of such records to the Authority as directed by the Board of Directors or Executive Committee. 19 (e) Each member organization shall pay development charges, premiums, and premium surcharges due to the Authority within thirty (30) days of the billing date, as required under article 15. After withdrawal, cancellations, or termination action under Articles 22, 23, or 25, each member organization shall pay promptly to the Authority any additional premiums due, as determined and assessed by the Board of Directors under Articles 24 or 25. (f) Each member organization shall provide the Authority such other information or assistance as may be necessary for the Authority to develop and implement insurance programs under this Agreement. (g) Each member organization shall cooperate with and assist the Authority, and any insurer of the Authority, in all matters relating to this Agreement, and shall comply with all bylaws, and other rules adopted by the Board of Directors. (h) Each member organization shall be a member of CVAG except the Executive Committee of CVAG shall have the power to waive this requirement. (i) Each member organization shall have such other responsibilities as are provided elsewhere in this Agreement, and as are established by the Board of Directors in order to carry out the purposes of this Agreement. ARTICLE 20 NEW MEMBERS Within a period of thirty (30) days after the effective date of this Agreement as provided in Article 6, any local public entity maintaining membership in CVAG; or for whom this requirement has been.waived pursuant to Article 18 (h), may become a party to this Agreement by signing and returning it to CVAG. Thereafter, an eligible local public entity may become a party to this Agreement only upon approval of the Board of Directors, by a vote of two-thirds of the quorum. 20 ARTICLE 21 WITHDRAWAL (a) A member organization may withdraw as a party to this Agreement upon thirty (30) days' advance written notice to the Authority if it has never become a participant in any insurance program pursuant to Article 15, or if it has withdrawn from all insurance programs in which it was a participant, pursuant to (b) below. (a) Any member participating in an insurance program must complete three (3) years as a party to that insurance program before it may withdraw from its status as a member and then only at the end of a policy year for the program, and only if it gives the Authority at least ninety (90) days' advance written notice of such action. ARTICLE 22 CANCELLATION (a) Notwithstanding the provisions of Article 21, the Board of Directors may: (1) Cancel, for reasonable cause, any member organization from this Agreement and membership in the Authority, on a vote of two-thirds of the quorum of the Board members. Such action shall have the effect of cancelling the member organization's participation in all insurance programs of the Authority as of the date that membership is cancelled, subject to the notice provisions below. (2) Cancel any member organization's participation in an insurance program of the Authority, without cancelling the member organization's membership in the Authority or participation in other programs, on a vote of two-thirds of the quorum of the Board members, plus a vote of two-thirds of the quorum of the members who represent member organizations participating in the program, subject to the notice provisions below. The Board shall give ninety (90) days' advance written notice of the effective date of any cancellation under the foregoing provisions. Upon such effective date, the 21 member organization shall be treated the same as if it had voluntarily withdrawn from this Agreement, or from the program, as the case may be. (b) A member organization that does not enter one or more of the insurance programs developed and implemented by the Authority during the first year of the Authority's existence shall be considered to have withdrawn as a party to this Agreement at the end of such period, and its membership in the Authority shall be automatically cancelled as of that time, without action of the Board of Directors. (c) A member organization which withdraws from all insurance programs of the Authority in which it was a participant and does not enter any program for a period of six (6) months thereafter shall be considered to have withdrawn as a party to this Agreement at the end of such period, and its membership in the Authority shall be automatically cancelled as of that time, without action of the Board of Directors. (d) A member organization that terminates its membership in CVAG, without a waiver pursuant to Article 18(h) shall be considered to have thereby withdrawn as a party to this Agreement, and its membership in the Authority and participation in any insurance programs of the Authority shall be automatically cancelled, subject to the ninety (90) days written notice provision above, without action of the Board of Directors. ARTICLE 23 EFFECT OF WITHDRAWAL OR CANCELLATION (a) If a member organization's participation in an insurance program of the Authority is cancelled under Article 22, with or without cancellation of membership in the Authority, and such cancellation is effective before the end of the policy year for that program, the Authority shall promptly determine and return to the member organization the amount of any unearned premium payment from the member organization for the policy year, such amount to be computed on a pro rata basis from the effective date of cancellation. 22 (b) Except as provided in (a) above, a member organization which withdraws or is cancelled from this Agreement and membership in the Authority, or from any program of the Authority, shall not be entitled to the return of any premium or other payment to the Authority, or of any property contributed to the Authority. However, in the event of termination of this Agreement, such member organization may share in the distribution of assets of the Authority to the extent provided in Article 24. (c) Notwithstanding withdrawal or cancellation from any insurance program of the Authority, a member organization shall pay any premium charges which the Board of Directors determines are due from the member organization for losses and costs during the period in which the member organization was a participant in such program. Such charges may include any deficiency in a premium previously paid by the member organization, as determined by the payroll audit under Article 16 (b) (2); any premium surcharge assessed to the member organization under Article 16 (b) (3); and any additional amount of premium which the Board determines to be due from the member organization upon final disposition of all known or future claims arising from known or potential losses under the program during the organizations period of participation. Any such premium charges shall be payable by the organization within thirty (30) days of billing by the Authority. The liability of the Authority for incurred, but not reported, claims shall be governed by the particular insurance program provisions. ARTICLE 24 TERMINATION AND DISTRIBUTION OF ASSETS (a) This Agreement may be terminated at any time upon the election to terminate of three-fourths of the member organizations acting through their governing boards; provided, however, that this Agreement and the Authority shall continue to exist after such election for the purpose of disposing of all claims, distributing all assets, and performing all other functions necessary to conclude the affairs of the Authority. 23 v � (b) Upon termination of this Agreement, all assets of the Authority in each insurance program shall be distributed among those member organizations which participated in that program in proportion to their cash contributions, including premiums paid and property contributed (at market value when contributed). The Board of Directors shall determine such distribution within six months after disposal of the last pending claim or other liability covered by the program. (c) Following termination of this Agreement, any member organization which was a participant in an insurance program of the Authority shall pay any additional amount of premium, determined by the Board of Directors in accordance with a loss allocation formula, which may be necessary to enable final disposition of all claims arising from losses under that program during the member organization's period of participation. ARTICLE 25 BYLAWS AND PROCEDURES MANUAL As soon as practical after the effective date of this Agreement, the Board shall arrange for the preparation of Bylaws and a Procedures Manual to govern the day-to-day operations of the Authority. Upon adoption by the Board, such documents shall be delivered by the Authority to each member organization. ARTICLE 26 NOTICES The Authority shall address notices, billings and other communications to a member organization as directed by the organization. Member organizations shall address notices and other communications to the Authority to the General Manager/Secretary of the Authority, at the Coachella Valley Association of Governments. 24 ARTICLE 27 AMENDMENT This Agreement may be amended at any time by a vote of two-thirds' of the member organizations, acting through their governing boards. ARTICLE 23 PROHIBITION AGAINST ASSIGNMENT No member organization may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any member organization shall have any right, claim or title to any party, share, interest; fund, premium or asset of the Authority. ARTICLE 29 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 30 FILING WITH SECRETARY OF STATE The Executive Director of CVAG shall file a notice of this Agreement "with the office of the California Secretary of State within 30 days of its effective date, as required by Government Code Section 6503.5 c= I 25 p ` IN WITNESS WHEREOF, the undersigned party hereto has executed this agreement on the date indicated below. Date: Sept, 5, 1985` Organization: _CITY OF PALM SPRINGS City manager ATTEST: G� City Clerk— APPROVED BY CITY COUNCIL By Res 15624, 9-5-85 26 APPPENDIX A Joint Powers Agreement Creating the Coachella Valley Joint Powers Insurance Authority Member Organizations: 27 DRAFT f6/24/85 BYLAWS OF THE COACHELLA VALLEY JOINT POWERS INSURANCE AUTHORITY ARTICLE I . DEFINITIONS The definitions of terms used in these Bylaws shall be the same as are contained in the Agreement Creating the Coachella Valley Joint Powers Insurance Authority, hereinafter called the Agreement, unless otherwise expressly provided. ARTICLE II . OFFICES The Authority's principal office for the transaction of business is located at 74-133 El Paseo , Suite #4 , Palm Desert , CA 92260 . The Board of Directors may change the location of the principal office from time to time . The Board may establish one or more subordinate offices at any place or places where the Authority is qualified to do business . ARTICLE III . MEETINGS OF THE BOARD OF DIRECTORS 1 . Regular Meeting (a) Time Held This meeting shall be held at 9 :30 am the second Friday in May. Should this fall upon a legal holiday, the meeting of the Board shall be held at the same day the following week. (b) Business tube Tran'satted At the regular meeting, the Board shall review, modify if necessary, and adopt the annual operating budget- of the Authority and elect the officers and the non-officer member of the Executive Committee . At the December meeting, the Board shall elect officers and Executive Comittee members as required by the Agreement and these Bylaws. At any meetings, the Board may transact any other business within its powers, and receive reports of the operations and affairs of the Authority. (c) Notice Written notice of each regular meeting of the Board shall be delivered to each director and alternate director at least 10 days in advance of the meeting. The notice shall specify: (1) The place, date and hour of the meeting. (2) Those matters which are intended to be presented for action by the Board. (3), The general nature of any proposal for action by the Board concerning a change in the Agreement or these Bylaws, a' change in the membership of the Authority, or any other matter substantially affecting the rights and obligations of the member organizations. (4) If officers and Executive Committee members are to be elected, the names of the persons nominated for such positions shall be included in the notice. 2. Special Meetings A special meeting of the Board of Directors may be called at any time by the President of the Board, or by a majority of its,members, subject to the requirements for 24-hour written notice to the members and to requesting representatives of the media provided in Section 54956 of the 2 • i Caifornia Government Code. The notice of a special meeting shall specify the time and place of the meeting and the business to be transacted. No other business shall be considered at that meeting. 3. Place of Meetings Each regular or special meeting of the Board of Directors shall be held at a place within the State of California designated by the Board at its preceding meeting, or if no such designation is made, designated by the Executive Committee or the.President of the Board. 4. Adjourned Meetings The Board of Directors may adjourn any regular or special meeting to a time and place specified in the order of adjournment, whether or not a quorum has been established. If a quorum is not established, no business other than adjournment may be transacted. A copy of the order for adjournment shall be posted as required by Section 54955 of the Government Code. No other notice of an adjourned meeting shall be necessary, unless the adjournment is for a period of 30 days or more, in which case. notice of the adjourned meeting shall be given in the same manner as notice of the original meeting. ARTICLE IV. THE EXECUTIVE COMMITTEE If an Executive Committee is appointed, the following shall apply: 1. Terms of Oflice The term of ottice of the non-otticer member of the Executive Committee shall be two years. 2. Removal, Vacancies and Alternates The Board of Directors may remove the non-otficer member trom the Executive Comittee at any time. 3 A vacancy in the non-officer position on the Executive Committee, because of death, resignation, removal, disqualification, or any other cause, shall be filled by election of the Board. Pending action by the Board, the remaining members of the Executive Committee may fill a vacancy on an interim basis, except in the case of a vacancy caused by removal, which may only be filled by the Board. The alternate director for a director who is a member of the Executive Committee may attend and participate in a meeting of the Committee as the representative of the member, if the member is not able to attend. 3. Meetings The Executive Committee shall meet on the call of the President of the Board, at such times and places as are designated by that officer. The Committee shall also meet on the call of any two of its members, at such tirne and place as they may designate. Written notice of the time and place of an Executive Committee' meeting, and of the business to be transacr6d, shall be delivered to each member of the Committee and to requesting representatives of the media at least 24 hours in advance as required by Section 54956 of the Government Code, and subject to the other provisins of that Section. No other business shall be considered at the meeting. 4. Quorum and Voting Requirements Two members of the Executive Committee shall constitute a quorum for the transaction of business. All actions of the Committee shall require the aftirmative votes of a majority of the members present at a meeting duly held at which a quorum is present. 4 5. Adjourned Meetings The Executive Committee may adjourn any meeting to a time and place specified in the order for adjournment, whether or not a quorum has been established. If a quorum is not established, no business other than adjournment may be transacted. A copy of the order for adjournment shall be posted as required by Section 54955 of the Government Code. No other notice of an adjourned meeting shall be necessary, unless the adjournment is for a period of 24 hours or more, in which case notice of the adjourned meeting shall be delivered to the members who were not present at the time of adjournment. ARTICLE V. OFFICERS 1. Duties of Vice President In the absence of tlic 'President, the Vice President shall perform all duties assigned to the President by the Agreement and these Bylaws. 2. Removal and Vacancies The Board of Directors may remove an officer at any time. A vacancy in an officer position, because of death, resignation, removal, disqualification, or any other cause, shall be filled by election of the Board. 1 ARTICLE VI. CLAIMS REVIEW COMMITTEE 1. Appointment By adoption of these Bylaws, the Board of Directors delegates to the Executive Committee the appointment of the member of the Claims 5 0 • Review Committee , such appointments to be in accordance with Article 13 of the Agreement . 2 . Meetings Meetings of the Committee shall be held at the call of its Chair , at such times and places as are designated by the Chair. Written notice of the time and place of a Committee meeting, and of the business to be transacted, shall be delivered to each member of the Committee at least 24 hours in advance . ARTICLE VII . PREMIUM CHARGES FOR WORKERS ' COMPENSATION 1 , First and Second Program Years The member contributions for the first and second years shall be : Most recent fiscal year payroll x current WCIRB rates x current experience modification factor x . 80 Premium payment terms shall be established by the Board. 2. Subsequent Program Years In subsequent years , the yearly premium for each member shall be : The most recent payroll by classification x current WCIRB rates x current experience modification x a factor adopted by the Board after actuarial review. 3 . Dividends or Distribution of Surplus Funds Dividends , or distribution of surplus funds , shall be subject to declaration by the Board of Directors if it is -determined by an actuary or qualified risk management consultant that sufficient funds will remain, after payment of such dividends , to pay all • • incurred and incurred-,but-not-reported claims . No dividends will be declared by the Board during the first two program years so that sufficient reserve funds can be accumulated to insure the solvency of the Operating Fund. 4 . Non'=Risk Sharing Operating 'Fund The premiums paid to the Authority by its member agencies shall be placed in a non-risk sharing operating fund. This fund shall be used to pay all costs related to the workers ' compensation program, including, but not limited to , claims expenses , legal and adjusting services , loss control services , reinsurance premiums , administrative costs , actuarial and claims auditing services , and SB90 reimbursement and risk management consulting services . The Board shall determine the portion of each member agency ' s premium which shall be held as "expected loss reserves" for payment anticipated claims costs . For the first year , this portion shall be established at 58% of total annual premiums . Claims costs paid from the Operating Fund on behalf of a member agency in excess of the member agency' s "expected loss reserves" shall be paid from the member agency' s accrued "expected loss reserves" from prior years , or if insufficient , shall be paid from the Operating Fund. ' This amount in excess of the member agency ' s reserves shall then be repaid to the Operating Fund, with interest at the prevailing rates , over a five or ten-'year period as determined by the Board. This amount of repayment shall be added to the member agency ' s premium as calculated in (1) and (2) above . Investment income earned on the combined monies of the Operating Fund shall be credited to the reserve fund of each member agency on a proportionate basis . Administrative and other operational 7 0 r costs shall be deducted from each member agency ' s reserve funds on a basis approved by the Board . S . Subrogation Recovery The Authority shall credit any subrogation recovery to the reserve fund of the member agency upon whose claim the subrogation action was brought. Each subrogation action shall be brought on behalf of both the member agency and the Authority . ARTICLE 'VIII , MISCELLANEOUS 1 . Execution of Contracts The Board of Directors or the Executive Committee may authorize any officer, staff member , or agent of the Authority to execute any contract in the name of and on behalf of the Authority , and such authorization may be general or specific in nature . Unless so authorized, no officer , staff member , or agent shall have any power to bind the Authority by contract . 2 . Authorization of Payments All invoices , billings , and claims for payment u, losses in excess of the amount delegated by the Board to the Authority' s claims administration firm shall be approved and signed by any two of the following before payment by the treasurer : (a) President of the Board (b) The Vice President of the Board (c) The General Manager/Secretary 3 . Rules of Procedure for Meetings All meetings of the Board of Directors , Executive Committee , and other committees or bodies of the Authority shall be conducted in accordance with Roberts Rules of Order , Provided that in the event of any conflict , such rules shall be superseded by the 8 Agreement , these Bylaws , and California law. ARTICLE IX. AMENDMENTS These Bylaws may be amended at any time by a vote of two-thirds of the full Board of Directors . Following adoption of amendments , the General Manager/Secretary shall prepare and distri- bute a revision of the Bylaws to all member organizations . i=�� n ___ \;r'. CITY OF PERRIS Office of the City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss I, Beti An Hynes, duly elected City Clerk of the City of Perris, hereby certify this to be a true and correct copy of the Regular Minutes of April 25, 1988. Witness my hand and the seal of the City of Perris this day of May 1988. C. Mayor Jenkins called on Director of Finance JOINT Leland to introduce the amended Joint Powers POWERs Agreement between the City of Perris and the AGREEMEN, Coachella Valley Joint Powers Insurance Au- AMENDED thority. Mr Leland referred this matter to CVJPIA City Attorney Brown who reviewed the agreement ; APPROVED dated July 25 , 1985 . He reported no funda- mental changes in the agreement, and recom- mended approval of this amended agree:r,�_t . M/S/C (WASHINGTON/McHENRY) to approve the amended Joint Powers Agreement . Ayes : McHenry, Wilson, Washington, Borgia and Jenkins Noes : None ^ E C t Y O BARSTO �. c t o r n l c April 25 , 1988 Coachella Valley Joint Powers Insurance Authority ATTN: Bob Hallock 74-133 El Paseo, Suite #4 Palm Desert, CA 92260 RE: Revised Joint Powers Agreement Enclosed is a signed copy of the revised Joint Powers Agreement which was approved by our City Council on April 18, 1988. If you have any questions or need additional information, please let me know. t ll�<� G 21112 7 Patricia D. Saady Director of Personnel mmb Enclosure East Mountain View Street Barstow, Calliornia 92511 Phone (619) 256-35S1 3 R 78-105 CALLE ESTADO - LA QUINTA, CALIFORNIA 92253 - (619) 564-2246 April 22 , 1988 Coachella Valley Joint Powers Insurance Authority 74-133 E1 Paseo Suite 44 Palm Desert, California 92260 Please be advised that on April 5 , 1988 , the La Quinta City Council approved the CVJPIA Joint Powers Agreement. If you have any questions, please contact me or Henry Harvey at 564-2246 ./ Sii�erely, SAUNDRA L. JUHOLA Administrative Services Director MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92263 CITY OF BLYTHE 220 NORTH SPRING / BLYTHE, CALIFORNIA / (619) 922-6161 April 25, 1988 CVJPIA 74-133 EL Paseo, Suite 4 Palm Desert, CA 92260 Gentlemen: Enclosed is JPIA Amended Agreement which has been executed by the City of Blythe. 4ean ne ely, Z /ene M. Manly, Cityi Clerk JM:vr Enclosures 0 RESOLUTION NO. 88- 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORF'N__O Va,,LT_FY, CALIFORNIA, APPROVING THE AMENDED JOINT POWERS AGREEMENT CREATING THE COACHELLA VALLEY JOINT POWERS INSURANCE AUTHORITY. WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government Code permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and WHEREAS, California Government Code Section 990. 8 provides that two or more local public entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specific in Government Code Section 990.4 ; and WHEREAS, the City of Moreno Valley, California is a member organization of the Coachella Valley Joint Powers Insurance Authority (the "Authority") and has previously approved and adopted the Joint __�4ers Agreement (the "JPA") creating the Authority, effective July 25, 1985, as amended; and WHEREAS, the Board of Directors of the Authority, representing the local governments and special districts which previously executed the JPA, desires to update the JPA and otherwise provide for one class of member organizations and has recommended such amended JPA to this City Council. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED as follows: Section 1. Adoption of Amended Joint Powers Agreement. The Joint Powers Agreement, as amended under date of January 5, 1988, copy of which is attached hereto and incorporated herein, is hereby approved. This approval shall be operative upon approval of the same by an affirmative vote of two-thirds of the member organizations of the Coachella Valley Joint Powers Insurance Authority acting through their governing boards. Section 2 . Notice of Adoption. The City Clerk is hereby directed to give notice of the adoption of this Resolution to the Coachella Valley Joint Powers Insurance Authority. APPROVED AND ADOPTED this10th day of MAY 19 88 Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney MVRES20 05/02/88/ED/ar -2- v STATE OF CALIFORNIA ) ) COUNTY OF RIVERSIDE ) CITY OF MORENO VALLEY ) I, VALERIE A. BURROWES, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 88-25 was duly and regularly adopted by the City Council of the City of Moreno Valley, California, at a regular meeting thereof held on the loth, day of May, 1988, by the following vote: AYES: Councilmembers Carroll, Horspool, Nieburger, and Mayor Tanner NOES: NONE ABSENT: Councilwoman Goodwin ABSTAIN: NONE DEPUTY CITY CLERIC (SEAL) RESOLUTION NO. 88-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF N_ORCP AMENDING JOINT POWERS AGREEMENT CREATING THE COACHELLA VALLEY JOINT POWERS INSURANCE AUTHORITY WHEREAS, Article 1, Chapter 5 , Division 7 , Title 1 of the California Government Code permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and WHEREAS, California Government Code Section 990. 8 provides that two or more local public entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specific in Government Code Section 990 .4 ; and WHEREAS, the Board of Directors of the Authority, representing the local governments and special districts which previously executed the JPA, desires to update the SPA and otherwise provide for one class of member organizations and has recommended such amended JPA to this City Council . NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED as follows : SECTION 1. Adoption of Amended Joint Powers Agreement. That the Joint Powers Agreement, as amended, a copy of which is on file with the City Clerk, is hereby approved, and shall become effective upon adoption by an affirmative vote of two-thirds of the member organizations of the Coachella Valley Joint Powers Insurance Authority acting through their governing boards. SECTION 2 . Notice of Adoption. That the City' s legal counsel is hereby authorized to given notice of such adoption to Coachella Valley Joint Powers Insurance Authority. APPROVED, SIGNED AND ADOPTED this 20th day of April, 1988. n �'J Mayor of the City ofJ Norco, California ATTEST: City Clerk of the /City of Norco, California -2- I , DIANNA M. HIGDON, City Clerk of the City of Norco , California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Norco, California , at a regular meeting thereof held on the 20th day of April 1988 by the following vote of the City Council to-wit : AYES : Councilmen Casper, Cobbe, Nathan, Wildfong and Mayor MacGregor NOES : None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the offical seal of the City of Norco, California, this 20th day of April 1988 . City Clerk of the City of Norco , California` -3- Resolution No. 88-14 CITY OF SIMI VALLEY 2929 TAPO CANYON ROAD,SIMI VALLEY,CALIFORNIA 93063 (805) 5836700 June 15, 1988 Coachella Valley Joint Powers Insurance Authority 74-133 El Paseo, Suite #4 Palm Desert, CA 92260 Attention: Bob Hallock Dear Mr. Hallock: Enclosed please find a copy of the Joint Powers Agreement creating the Coachella Valley Joint Powers Insurance Authority which was amended and approved by the City Council of the City of Simi Valley on June 13, 1988 at the regular meeting of the City Council . The agreement pertains to a jointly funded insurance program for local governments. If you have any questions, please do not hesitate to contact me. Sincerely, Susan Maina Deputy City Clerk c:,T1.1r 8L GREG STRATTON,Mayor ��• VICKY HOWARD,Mayor Pro Tem ANN H. ROCK,Council Member t•9 GLEN W. McADOO,Council Member BILL DAVIS,Council Member -' AUG + S 188 Hill e e v�LLL O/ MOILL .9, ✓VLL>L'.j INCORPORATED JANUARY 24, 1957 a J r = � a NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 August 17, 1988 Mr. Leslie Cleveland Coachella Valley Joint Powers Insurance Authority 74-133 E1 Paseo Suite #4 Palm Desert, CA 92260 Dear Mr. Cleveland: Enclosed is the executed Agreement and a copy of Resolution No. 575 for your files. Sincerely, Terrence L. Be nger City Manager /ng Encls RESOLUTION NO. 575 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING THE JOINT POWERS AGREEMENT OF THE COACHELLA VALLEY JOINT POWERS INSURANCE AGENCY WHEREAS, the City of Rolling Hills executed the Joint Powers Agreement of the Coachella Joint Powers Insurance Agency (CVJPIA) , in 1986 ; and WHEREAS , the member cities of the Coachella Valley Joint Powers Insurance Agency have recommended amendments to the Joint Powers Agreement; and NOW, THEREFORE, the City Council hereby resolves: 1. To approve the amendments to the Joint Powers Agreement of the CVJPIA; 2 . To authorize the City Manager to execute the Amended Joint Powers Agreement of the Coachella Valley Joint Powers Insurance Authority. ADOPTED this 23rd day of May, 1988 . a r ATTEST: City Clerk