A- 2019- 107
INSURANCENOTREQUIRED
WORKNIAYPROCEED
CLERKOF COUNCIL
r); T7, AUG1 4 2019
FIFTH AMENDMENT TO
JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
This Fifth Amendment To Joint ExerciseOf PowersAgreementFor Insuranceand Risk ManagementPurposesCAgreement" is executedby andamongthe public entities, hereafterreferredto asMemberor Members, eachof whichis organizedandexisting underthelawsof the Stateof Californiaandis asignatoryto thisAgreementandlistedin Appendix "A", which is attachedheretoandmadeaparthereof. This Agreement, dated October 13, 2004, for identification purposes, amendsthe Joint Exercise of Powers Agreement For Insurance and Risk Management Purposes dated August 12, 1998.
RECITALS
ThisAgreementispredicateduponthefollowing facts:
The following Statelaws, amongothers, authorizethe Membersto enterinto this Agreement:
1. Labor Code Section 3700, permitting a Member to fund its own Workers' Compensation claims;
2. GovernmentCodeSection990, permitting a Memberto insureitself againsttort or inversecondemnationliability;
App,ovedby theGoverningBoastOctober13, 2004
1 3. GovernmentCodeSection990.4, permittingaMembertoprovideinsuranceand self-insurancein any desiredcombination;
4. GovernmcntCodeSection990.6, permittingthepropercostsfor self-insuranceto bechargedagainsteachMemberandauthorizingtheGoverningBoardtomake premiumpaymentsfor suchcoveragein an amountsuchGoverningboard determinestobenecessarytoprovidesuchcoverage;
5. GovernmentCodeSection990.8, permittingtwoor moreMembersto enterinto an agreementto jointly fund suchexpendituresunderthe authorityof GovernmentCodeSections6500gtseq.;
6. GovernmentCodeSection6500et seq., permittingtwo or moreMembersto jointly exercise, underanagreement, anypowerwhichis commonto eachof them.
NOW, IREREFORE, for andin considerationof themutualbenefits, covenants, and agreementssetforth in thisAgreement, theMembersagreeasfollows:
1.1 PursuanttoArticleI (commencingwith Section6500) of Chapter5 of Division7 ofTitle1oftheGovernmentCodeoftheStateofCalifornia, theMembershereby createa public entity, separateandapartfrom theMembers, to beknown asthe ApprovedbytheOMveningBondOambw13, 2004
2 IndependentCitiesRisk ManagementAuthority, hereinafterreferredto as ICRMA" orthe "Authority". PursuanttoGovernmentCodeSection6508.1, the debts, liabilities, andobligationsof theAuthorityshallnotconstitutedebts, liabilities, orobligationsofanyMember.
ARTICLE 2. PIMPOSE.
2. 1 Thepurposeof creatingthisAuthorityis toexercisethepowersoftheMembers tojointly accomplishthefollowing;
2. 1. 1 Develop effective Risk ManagementPrograms to reduce the amountandfrequencyof theirlosses.
2. 1.2 DevelopRiskManagementProgramsof insuranceto protect Membersfromtheeffectsof catastrophicor unexpectedlosses.
Suchprogramsshallinclude, but notbe limited to, coveragesfor lossesarisingoutofTortLiability, Workers' Compensation, Health Benefits, andtheownershiporuseofrealorpersonalproperty.
2.1.3 DesignRiskManagementProgramsoftheAuthorityonapooled orself -fundedbasiswherebytheMemberssharesomeportion, or all, ofthecostsoftheprogramlosses,
2. 1.4 Jointlypurchaseinsurance, excessinsurance, or reinsuranceand/or developalternativefinancialarrangementsfor thepurposeof transferring risk of loss to commercial insurers.
ApprovedbytherovervingBeardnatober13, 2004
3 2. 1.5 AssistMembersto themaximumextentauthorizedby law to securelongtermsolutionsenablingtheAuthorityto provide
adequateprotectionto Membersagainstcatastrophic, or greater than expected, claims and to attract major reinsurersfor the purposeof transferringrisk.
2.1.6 Jointlysecureadministrativeandotherservicesincluding, butnot limitedto, generaladministration, underwriting, riskmanagement, lossprevention, claimsadjusting, dataprocessing, brokerage, accounting, andlegalserviceswhenrelatedto anyof the other purposes.
ARTICLE 3. DEFINITIONS
3. 1 Thefollowingdefinitionsshallapplytotheprovisionsof thisAgreementandthe Bj Laws of theAuthority andDisk ManagementC1ograms..
3. 1,1 " Agreement" shallmeanthisAgreement, asit maybeamended from time to time, creatingthe IndependentCities Risk
ManagementAuthority,
3. 1.2 " Board" or "GoverningBoard" shallmeanthegoverningbodyof theAuthority.
3. 1.3 " By -Laws" shallmeantheHilesgoverningthemanagementofthe AuthorityandeachindividualRiskManagementProgram.
ApprovedbythaGoverningBoardOctober13,2004
4 3.1.4 " Claim(s)" shallmeandemand(s) complyingwiththerequirements of California Government Code Section 910 and made against the Memberarisingout of occurrenceswhich arecoveredor allegedto be coveredby the Authority's Memorandumsof Coverage, or policiesofinsurance.
3. I. 5 " FiscalYear" shallmeantheperiodoftimecommencingonJuly1 ofeachyear, andthereafterendingonJune30eachfollowingyear.
3. 1.6 " GoverningDocuments" shallmeanthisAgreement, theBy -Laws of the Authority and each Risk: ManagementProgram, the
Memorandumof Coverageandanyotherdocumentstipulatedasa
GoverningDocumentin the By -Laws or by actionof the
GoverningBoard.
3.1.7 " Insurance" shallmeaninsuranceorreinsurancepurchasedbythe AuthoritytocoverlossesforitsMembers.
3.1.8 " Member" shallmeananyMunicipalCorporationorpublicentity authorizedtobeamemberof aJointPowersAuthority, whichis a partyto this Agreementandis participatingin oneor moreRisk ManagementPrograms.
3.1.9 " Memorandum of Coverage" shall mean the document or documentsissuedby the Authorityspecifyingthe typesof
coveragesandlimits providedto theMembers.
ApprovedbytheGwomingsuuddotober 13, 2004
5 3.1.10 " ProgramYear" shallmeana periodof timein whicheach programshallbesegregatedfor easein determiningcoverage
premiums.
3.1. 11 " Participation" or "Participating' shallmeanaMemberhaselected tojointly participatein themanagementof a specificrisk andis a memberof thatRiskManagementProgram.
3.1.12 " RiskManagement" shallmeantheprocessof identifying, evaluating, reducing, transferring, and eliminating risks. Risk Managementincludes, butis not limitedto, variousmethodsof fundingclaimspayments, purchasinginsurance, legaldefenseof claims, controllinglosses, anddeterminingself -insuredretention levelsandtheamountofreservesforpotentialclaims.
3. 1.13 " RiskManagementProgram" shallmeanthosecoverageprograms of risk sharing, insurance, andrisk managementservicescreated by theAuthoritytomanagespecificRiskManagementPrograms,
Le, "Liability RiskManagementProgram".
ARTICLE 4. PARTIES TO THE AGREEMENT AND RESPONSIBIL1TlxS OF MEMBERS.
4. 1 EachMemberrepresentsandwarrantsthatit intendsto, anddoeshereby, contract withallotherMemberslistedinAppendix. "A", andanynewmembersadmitted to theAuthoritypursuantto Article 16. EachMemberalsorepresentsand warrantsthatthewithdrawalorexpulsionof anyMember, pursuanttoArticle14 Approved bythe GavemingBond octabu 13, 2004
6 or 15, shallnot relieveanyMemberof its rights, obligations, liabilities or duties underthis Agreementor theindividualRiskManagementProgramsin which the Memberparticipates.
4.2 EachMemberagreesto beboundby andto complywithall of theternsand conditionsof theGoverningDocumentsandanyResolutionor otheraction adoptedbytheGoverningBoardastheynowexistormayhereinafterbeadopted or amended, EachMemberassumestheobligationsandresponsibilitiessetforth intheGoverningDocuments,
ARTICLE 5. GOVERNINGBOARD
51 TheAuthorityshallbegovernedbyaGoverningBoardthecompositionofwhich shallbesetforthin theAuthority'sBy -Laws. Immediatelyuponadmissionofa newMemberpursuantto Article16, theMembershallbeentitledto appointa Represer.`Mtiveto the GoverningBoardandanalternateRepresentativeand, if desired, a substitutealternateRepresentative, eachof whomshallmeetthe parameterssetforthin theAuthority's By -Laws. Decisionsof theMember representative, ortheGoverningBoardin hialherabsence, shallbebindingonthe Member.
5. 2 The MemberRepresentativeand/or alternateRepresentativeor substitutealternate RepresentativeshallberemovedfromtheGoverningBoardupontheoccurrence of anyone of the following events: (1)the expulsionor withdrawal of the Memberfrom the Authority; (2) the deathor resignationof the Member Representative; (3) theAuthorityreceivesthewrittennoticefrom theMember Approvedbyt GoverningHoardOctober13, 2004
7 thattheMemberRepresentativeisnolongeramemberofthegoverningbodyof theMemberorasotherwiseprovidedintheAuthority'sBy -Laws.
5. 3 Pursuantto GovernmentCodeSection6505,6, the GoverningBoardshall designateanofficeror employee, orofficersandemployees, toreceive, deposit, invest, anddisbursethepropertyoftheAuthoritypursuantto GovernmentCode Sections6505and6505.5. TheGoverningBoardshallfix theamountof the fidelitybondtobefiledbysuchpublicofficer(s) and/oremployee(s). 0 ' W— I ' 1 ul MYID c10 e
6.1 RegularMeetings. TheGoverningBoardandall standingcommitteesshallhold meetingsatthelocationandtimesetforthintheBy -LawsoftheAuthorityand eachindividualRiskManagementProgram,
6.2 RalphM. BrownAct. All meetingsof theGoverningBoard, andappointed committees, includingwithoutlimitation, regular, adjournedregular, andspecial meetings, shallbe.called, noticed, held, andconductedin accordancewiththe RalphM. BrownAct (Section54950et, seq, oftheGovernmentCode).
6. 3 Minutes. Minutes of regular, adjournedregular, andspecialmeetingsof the AuthorityshallbekeptunderdirectionoftheSecretary. Assoonaspossibleafter each meeting, the Secretaryshall forward copies of the minutes to each Governing Board member.
6.4 Quorum. A majorityofthemembersoftheGoverningBoardisaquorumforthe transactionofbusiness. However, lessthanaquorummayadjournfromtimeto Approvedby theGoverningBoardOctober13, 2004
time, A voteofthemlljorityof aquorumatameetingissufficienttotakeaction.
ARTICLE 7. OFFICERS.
7.1 The GoverningBoardshallelecta president, vice-president, Treasurerand Secretaryfrom amongits members. Themannerof electionandtermof office of electedofficersandtheirauthorityandresponsibilitiesshallbeassetforth in the Authority By -Laws. If anyof theofficersceaseto beaMember'srepresentative, theresultingvacancyshallbefilledasprovidedintheAuthorityBy -Laws. The GoverningBoardmayappointsuchotherofficersasit considersnecessary.
ARTICLE S. OARS.
8. 1 TheAuthorityshallhavethepowerscommontoitsMembersandis authorized, in itsownname, todoall actsnecessaryandtoexercisesuchcommonpowersto fulfill thepurposesof this ?agreementreferredto in Article2 including, butnot limited fn_ earh nfthe- following:
8. 1.1 Finance through the issuance of Bonds or other financial Instruments of indebtedness, self-insurance reserve Brads necessaryor convenientfor theimplementationof this Agreement. g.1.2 Incur debts, liabilities, and obligations.
8.1.3 Acquire, hold, ordisposeofrealandpersonalproperty.
8.1.4 Receivecontributionsanddonationsof property, funds, services, andotherformsofassistancefromanysource.
8. 1.5 Sueand be suedin its ownname.
Appmved%amGDVMing nomdOctobu13,2N4
9 0
8.1.6 Employagentsandemployees.
8. 1.7 Acquire, construct, manage, maintain, or operatebuildings, works, or improvements.
8. 1.8 Leaserealorpersonalproperty, includingthatofaMember.
8. 1.9 Receive, collect, and disbursemonies.
8. 1.10 investmoneyinthetreasuryoftheAuthorityinthesamemanner and on the sameconditionsas local agenciespursuantto
GovernmentCodeSection53601.
8.1.11 Exerciseall otherpowersnecessaryandproperto carryoutthe provisionsof thisAgreement.
8.1.12 DevelopandimplementRiskManagementPrograms.
81. 13 Jointlypurchasefor thebenefitof Members, insurance, excess insurance, reinsurance, andenterinto agreementsfor thebenefitof Members, forthepurposeoftransferringriskoflosstocommercial insurersorreinsurersorotherinsurancepools.
ARTICLE 9. RISK MAiVAGEMENT PROGRAMS.
9.1 TheGoverningBoardshallestablishRiskManagementProgramsasprovidedin theAuthority'sBy -Laws.
9.2 No RiskManagementProgramshallbecomeoperational, or possessany authority, until theproposedRisk ManagementProgramBy -Lawshavebeen AppmvWbyWeGovemfngacentOctnher13, 2004
10 approvedbytheGoverningBoard. ThevotingontheapprovalofBy -Lawsshall berestrictedtoGoverningBoardMemberrepresentativesoftheparticularRisk ManagementProgram. Approvalof theBy -Lawsandanyamendmentsthereto shall be as providedin the By -Lawsof the individualRisk Management Programs. OnapprovaloftheBy -Laws, thevariousRiskManagementPrograms shallbecomeoperationalandwillhaveallofthepowersspecificallydelegatedto thembytheGoverningBoard.
ARTICLE 10. BUDGET
10.1 TheGoverningBoardshalladoptanannualbudgetnotlaterthan30dayspriorto thebeginningof eachFiscalYear,
ARTICLE 11. ANNUAL AUDIT AND REVIEW.
11.1 TheGoverningBoardshallcauseanannualfinancialauditof theaccountsand reeor& tohemadoandfledasprovidedintheAuthority'sBY=Lavrsandthelaws of the State.
ARTICLE 12. TSTABLISHMENTAND ADMINISTRATIONOF FUNDS
12.1 Fundsof theAuthoritymaybe commingledfor investmentandadministration purposes. However, eachRiskManagementProgramshallbe accountedfor separatelyon afull accrualbasis.
12.2 TheGoverningBoardshallestablishthepolicyforwarrantsdrawnto pay demandsagainsttheAuthority.
12.3 Thecoveragefor eachProgramYearof eachRiskManagementProgramshallbe asspecifiedin theMemorandumof Coverageor policiesof insurancefor that ApprovedbyWenovemingBeardenfn6er13.2004
11 ProgramYear of the Risk ManagementProgram.
ARTICLE 13. WITHDRAWAL.
13.1 AnyMemberwhichentersaRiskManagementProgrammaywithdrawfromthat RiskManagementProgramandmayatalatertimeseektorenewparticipationin saidProgramsubjecttothetermsandconditionsassetforthintheBy -Lawsof that particularRisk ManagementProgram.
13.2 A Memberis nolongerapartyto theAuthorityorthisAgreementuponits withdrawalfromall of theAuthority'sRiskManagementPrograms.
ARTICLE 14. EXPULSION.
14.1 TheGoverningBoardmayexpelanyMemberfromtheAuthorityand/orfroma RiskManagementProgramatanytimefor :materialbreachesoftheGoverning Documents. SuchexpulsionshallbeasprovidedintheBy -LawsoftheAuthority or eachIndividualRiskManagementProgram.
ARTICLE 15. TERMINATION.
15.1 ThisAgreementshallcontinueuntilterminatedbyvoteorwrittenconsentoftwo- thirdsoftheMembersprovided, however, thatthisAgreementandtheAuthority shallcontinuetoexistfor thepurposesof disposingof allclaims, thedistribution of assets, andanyotherfunctionsnecessaryto concludetheaffairsof the Authority.
15.2 Uponterminationof thisAgreement, all assetsof theAuthorityshallbe distributedonlyamongtheMembersthathavebeenparticipantsin its. Risk ManagementPrograms, includinganyof thoseMemberswhichpreviously ApprovedbytheGoverningBoardOotdar13, 2004
12 withdrewor wereexpelledpursuanttoArticles13and14of thisAgreement, in accordancewithandproportionateto theirnetpremiumpaymentsmadeduring the term of this Agreement. The GoverningBoardshall determinesuch distributionwithinsixmonthsafterthelastclaimcoveredbythisAgreementhas been finalized.
15.3 TheGoverningBoardisvestedwithallpowersoftheAuthorityforthepurposeof concludinganddissolvingthebusinessaffairsoftheAuthority. Theseincludethe power to require those Members which were Risk Managementprogram participantsat thetime of anyparticularoccurrencewhich wascoveredor alleged tobecoveredundertheMemorandum(s) ofCoverageorpoliciesofinsuranceto paytheirshareof anyadditionalamountof premiumdeemednecessarybythe GoverningBoard for the .final dispositionof all claimsand expensesassociated with such loss.
ARTICLE 16. NEW MEMBERS.
16.1 Anygovernmentalagency, organizedandoperatingunderthelawsoftheStateof Californiawhichisauthorizedtoparticipateinajointpowersauthorityunderthe GovernmentCodemaybecomeamemberoftheAuthoritybycomplyingwiththe requirementsoftheAuthorityBy -Laws.
ARTICLE 17, LIABILrr Y OF THE AUTHORITY.
17.1 EachMemberagreestoindemnify, saveanddefendtheAuthorityandallother Membersharmlessfromandagainstallclaims, losses, anddamages, including legalfeesandexpenses, arisingoutofanybreachordefaultonthepartofsuch Approvedby theOw wing BoardOctobae13,2004
13 MemberinperformanceofanyofitsobligationsunderthisAgreement, oranyact or negligenceof suchMemberor any of its agents, contractors, servants, employeesor licenseeswith respectto this Agreement. No indemnificationis madeunderthisSectionfor claims, lossesor damages, includinglegalfeesand expenses, arisingoutofthewillfulmisconduct, negligenceorbreachof duty underthisAgreementbytheAuthorityor aMemberortheirofficers, employees, agents or contractors.
17.2 TheRepresentativestotheGoverningBoardandtoeachoftheRiskManagement Programsandanyofficer, employee, contractor, or agentof theAuthorityshall useordinarycareandreasonablediligencein theexerciseof theirpowerandin the performance of their duties under this Agreement.
17.3 Fundsof theAuthoritymaybeusedtodefend, indenmify, andholdharmlessthe Authorityandanymemberof theGoverningBoard,. any memberof a .RiskManagement Program, and anyemployeeof theAuthorityfor theiractionstaken within the scopeof theirdutieswhileactingon behalfof theAuthority. Nothing herein shalllimitthe rightof weAuthorityto purchaseinsuranceto providesuch coverage as is hereinaboveset forth. ARTICLE
18, NOTICES, 18.
1 Noticesto eachMemberunder this Agreementshall be sufficientif mailedto itsrespective addresson filewiththe Authority. Any Membermay designateany other addressin substitutionof theforegoingaddress to whichsuch noticewill be given at anytimeby givingfive dayswrittennoticeto theAuthorityand all otherApproved bytbe eovnnkgBoard October13, 20e414
I
Members.
ARTICLE 19.
19d ThisAgreementmaybeamendedat anytimeby voteof two-thirdsof the Membersactingthroughtheirgoverningbody. Amendmentsto the individual RiskManagementProgramBy -Lawsrequirethetwo -thirdvoteoftheGoverning BoardmembersrepresentingMembersof thatRiskManagementProgram.
ARTICLE20. SEVERABDUTY.
20,1 Shouldanyportion, term, condition, orprovisionofthisAgreementbedecidedby acourtofcompetentjurisdictiontobeillegalorin conflictwithanylawofthe Stateof California, or be otherwiserenderedunenforceableor ineffectual, the validityoftheremainingportions, terms, conditions, andprovisionsshallnotbe affectedthereby.
ARTICLE 21. AGREEMENT COMPLETE.
21.1 TheforegoingconstitutesthefullandcompleteAgreementoftheparties. 'There arenooralunderstandingsoragreementsnotsetforthinwritingherein, ARTICLE 22. TERM OF AGREEMENT.
22.1 Thisfifth amendedAgreementshallbecome .effectiveupontheAuthority receivingnoticeof the approvalby the governingbodyof two-thirdsof the Members.
INWITNESSWBMWOF, thepartiesheretohaveexecutedthisAgreementasoftheday ApprovedbytheOevamiugBWd Odober13.2004
15 andyear first written above.
Cityof Santa Ana
By.
Title riry Alanngpr
Executed before me this
dayof_ 200
City Seal)
City Clerk
City of_ Santa Ana
APPROVED AS TO FORM
SeniorAssiitautCity Attorney
FOR APOROVAL
Executive Difector, Human Resources
MPmed bytheGoxmmgaomdOetaha13,2004
16 d
APPENDIX " A"
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
MEMBER CITIES
1. Alhambra
2. Arcadia
3. Azusa
4. Baldwin Park
S. Bell
6, Buena Park
7. Chino
8. Colton
9. CulverCity
10. Downey
11, E1Monte
12. El Segundo
13. Fullerton
14. Glendora
15. Hawthorne
147448.4 ( MSWORD) OOOGoM000
16. Hermosa Beach
17. Huntington Park
18. Inglewood
19. La Habra
20. Lynwood
21. Manhattan Beach
22, Monrovia
23. MontereyPark
24. Redondo Beach
25, San Fernando
26, South Gate
27. Upland
28. Vernon
29. Whittier
INDEPENDENTCITIESRISKMANAGEMENTAUTHORITY
FIFTHAMENDMENTTOJOINTEXERCISEOFPOWERSAGREEMENT
FORINSURANCEANDRISKMANAGEMENTPURPOSES
147449.4 ( MSWORD) 0006M.9000