8E
Date: April 22, 2025
To: Honorable Mayor and Members of the City Council
From: Ian Dailey, Finance Director
Kim Turner, Transit Director
By: Jason Nishiyama, Deputy Finance Director | [email protected] Subject: Finance and Transit – Approve Annual Membership Renewal with California Transit Indemnity Pool (CalTIP) for Program Year 2025 -26. Expenditure: Not -to-Exceed $837,187 (Non-General Fund).
RECOMMENDATION
Recommendation of the Finance Director and Transit Director that City Council approve the annual membership renewal with California Transit Indemnity Pool (CalTIP) in the amount of $761,079, plus a 10% contingency in the amount of $76,108, for a total not-to-exceed amount of $837,187, for a one-year period beginning May 1, 2025 and ending May 1, 2026.
FUNDING
Funding is anticipated to be available in the Self-Insurance Fund’s fiscal year 2025-26 operating budget and is anticipated to be available in the subsequent fiscal year.
DISCUSSION
The City of Torrance Transit Department (Torrance Transit) obtains liability coverage and related risk management services through jointly pooled resources with 34 other California transit system agencies. Torrance Transit joined CalTIP in June 2021.
CalTIP provides its liability program members with many benefits including:
• Liability coverage of up to $25 million with a $250,000 per claim self-insured retention (City must pay the self-insurance retention before coverage is afforded). • Bodily injury, property damage, personal injury, and public officials’ errors and omissions coverage.
• Loss prevention materials, including risk control work plan and onsite field consulting services.
• Safety training materials, including sample programs, training publications, and online streaming safety videos and webinars.
• Transit agency open forums for best practice identification and coordination with other member agencies.
1 City Council
April 22, 2025
The CalTIP annual membership fee is based on several factors including, but not limited to, estimated annual mileage operated by Torrance Transit, claimed loss history and liability market factors. Based on mileage provided by Torrance Transit, the estimated renewal fee for program year 2025-26 is $761,079 plus a 10% contingency in the amount of $76,108, for a total not-to- exceed amount of $837,187.
It should be noted that the membership renewal fee is an estimate since program year fees are presented to members after the coverage expires annually on May 1. While the annual membership fee is partly dependent on factors beyond the control of the City, Torrance Transit strives to manage future costs by reducing the number of preventable incidents. Torrance Transit has an active loss prevention program to reduce the number of exposures by utilizing an up -to- date bus operator’s manual, safety awareness program, defensive driver training and other personnel training programs.
In conclusion, staff recommends the membership renewal with CalTIP as the proposed coverage structure provides financial protection to address claims that exceed the City’s retention, while providing added risk control options.
ATTACHMENTS
1. CalTIP Historical Contributions
2. CalTIP Memorandum of Coverage
2 ATTACHMENT B
2 7
0 0
CalTIP Historical Membership Renewal Information
Program
Year*
Liability
Coverage
Self-Insured
Retention**
Estimated Annual
Contribution
Actual Annual
Contribution
2021-2022 $25,000,000 $350,000 $426,932 $426,932
2022-2023 $25,000,000 $350,000 $712,690 $620,653
2023-2024 $25,000,000 $350,000 $620,631 $572,389
2024-2025 $25,000,000 $250,000 $543,139 $526,085
2025-2026 $25,000,000 $250,000 $837,187 TBD
(Not-to-Exceed $837,187)
* CalTIP annual membership covers May 1 to May 1 every year. ** Self-Insured Retention is the amount the City must pay before coverage is afforded. 3 1750 Creekside Oaks Drive
Suite 200
Sacrament o, CA 95833
p. 800 - 54 1 - 4 59 1
f. 9 1 6- 2 4 4- 1 1 9 9
www. caltip online.org
A J O I N T P O W E R S A U T H O R I T Y
CALIFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
LIABILITY PROGRAM
MEMORANDUM OF COVERAGE
DECLARATIONS
Coverage Period: 12:01 a.m., May 1, 2024, to 12:01 a.m., May 1, 2025 Limit of Liability: $10,000,000 Ultimate Net Loss Each Occurrence Members: Retention: Memorandum No:
Amador Transit $0 24-25-L-32
City of Arcata $0 24-25-L-16
City of Auburn $250,000 24-25-L-29
City of Avalon $25,000 24-25-L-39
City of Carson $250,000 24-25-L-43
Central Contra Costa Transit Authority $250,000 24-25-L-2 City of Culver City $250,000 24-25-L-3
City of Dixon $250,000 24-25-L-26
City of El Monte $100,000 24-25-L-40
City of Gardena $250,000 24-25-L41
City of Lodi $25,000 24-25-L-17
City of Porterville $100,000 24-25-L-37
City of Santa Rosa $250,000 24-25-L-19
City of Torrance $250,000 24-25-L-42
City of Vacaville $25,000 24-25-L-27
City of Whittier $0 24-25-L-25
El Dorado County Transit Authority $0 24-25-L-20
Gold Coast Transit District $25,000 24-25-L-28
Golden Empire Transit District $250,000 24-25-L-30
Humboldt Transit Authority $50,000 24-25-L-22
Livermore Amador Valley Transit Authority $25,000 24-25-L-31 Mendocino Transit Authority $25,000 24-25-L-5
Monterey-Salinas Transit District $250,000 24-25-L-6
Morongo Basin Transit Authority $0 24-25-L-18
County of Nevada $25,000 24-25-L-8
Omnitrans $100,000 24-25-L-35
County of Placer $250,000 24-25-L-9
San Luis Obispo Regional Transit Authority $0 24-25-L21 San Joaquin Regional Transit District $350,000 24-25-L-43 Santa Cruz Metropolitan Transit District $250,000 24-25-L-11 County of Siskiyou $0 24-25-L-12
4 1750 Creekside Oaks Drive
Suite 200
Sacrament o, CA 95833
p. 800 - 54 1 - 4 59 1
f. 9 1 6- 2 4 4- 1 1 9 9
www. caltip online.org
A J O I N T P O W E R S A U T H O R I T Y
Liability Program Declarations
Members: Retention: Memorandum No:
Tahoe Transportation District $25,000 24-25-L-36
Town of Truckee $25,000 24-25-L-38
Western Contra Costa Transit Authority $100,000 24-25-L-14 Yolo County Transportation District $0 24-25-L-15
California Transit Systems Joint Powers Authority $0 24-25-L-00 Forms and Endorsements attached to and forming part of the coverage document:
Memorandum of Coverage Form No: LMOC-14
Endorsement No. 1 – Additional Covered Party
Endorsement No. 2
Endorsement No. 3 – Change of Declarations
Approved: _____________________________________
Chrissy Mack, CalTIP General Manager
May 1, 2024
5 1750 Creekside Oaks Drive
Suite 200
Sacramento, CA
95833
p. 80
0- 541 - 4591
f. 916 - 244 - 1199
www.caltiponline.org
A J OINT P OWERS A UTHORITY
CAL
IFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
MEM
ORANDUM OF LIABILITY COVERAGE
Form No
. LMOC - 14
CONTENTS
I. W
HAT THE AUTHORITY PAYS ON COVERED PARTY’S BEHALF ............................................... 1 II. AUTHORITY’S LIMIT OF LIABILITY ........................................................................................ 1 III. RETENTION ......................................................................................................................... 2 IV. WHO IS A COVERED PARTY ................................................................................................ 2 V. WHAT THE AUTHORITY WILL NOT COVER (EXCLUSIONS) .................................................... 3 VI. WORDS AND PHRASES WITH SPECIAL MEANING ............................................................... 6 VII. CONDITIONS ..................................................................................................................... 8 6 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 1 of 14
CALIFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
MEMORANDUM OF LIABILITY COVERAGE
Ea
ch word shown in bold type has a special meaning which is defined in Section VI.
I. W HAT THE AUTHORITY PAYS ON COVERED PARTY’S BEHALF
A. Coverage Agreement
The
Authority will pay on behalf of the Covered Party the Ultimate Net Loss because of:
1. Bod
ily Injury
2. Property Damage
3. Personal Injury
4. Public Officials Errors and Omissions
ar
ising out of an Occurrence in the operation of the transit system of the Member, consistent with the provisions of this Memorandum.
B. Defense and Settlement
With r
espect to Occurrences to which this Memorandum applies:
1. T
he Authority has the right and duty to defend any suit against the Covered Party.
The Authority may, at its discretion, investigate, negotiate, or settle any claim or suit. The Authority shall not be obligated to pay any claim or judgment or to defend any suit after the limit of liability has been exhausted.
2. De
fense of a suit, claim, or any other type of administrative proceeding likely to involve coverage hereunder, shall be conducted by defense counsel qualified and approved under the Authority’s Litigation Management Policies. The Authority retains the right to reassign defense to an approved defense counsel on the Authority’s approved defense panel.
II. AUTHORITY’S LIMIT OF LIABILITY
Re
gardless of the number of (1) Covered Parties, (2) persons or organizations who sustain injury or damage, or (3) claims made or suits brought, the Authority’s liability for the Ultimate Net Loss from any one Occurrence shall not exceed the coverage limit shown in the Declarations for any one Occurrence, arising out of Bodily In jury, Property Damage , Public Officials Errors and Omissions, or Personal Injury , or any combination thereof , less the Member’s self-insured retention or any primary insurance available to the Covered Party , whichever is greater. 7 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 2 of 14
However, any reduction in limits due to the involvement of multiple Members in a single Occurrence shall not be greater than $2,000,000 any one Occurrence.
For t
he purpose of determining the limit of liability:
· All damag
es arising out of continuous or repeated exposures to substantially the same general conditions are considered to arise out of one Occurrence. · An O
ccurrence extending over more than one coverage period shall be treated as a single Occurrence arising in the coverage period in which the Occurrence began.
III. RETENTION
The
Authority’s obligation to pay damages on behalf of the Covered Party applies only to Ultimate Net Loss in excess of the Retention amount shown in the Declarations. The amount shown in the Declarations shall be exhausted by sums paid or payable in satisfaction of the Ultimate Net Loss , whether such payments are made by a Covered Party or by insurance available to a Covered Party.
IV. W
HO IS A COVERED PARTY
Ea
ch of the following is a Covered Party to the extent set forth below:
A. T
he Member as set forth in the Declarations, any and all commissions, agencies, districts, authorities, boards (including the governing board) or similar entit ies coming under the Member’s direction or control or for which all of the Member’s board members sit as the governing body. The Member includes all departments and constituent agencies of the Member.
B. Any
persons who are past or present elected or appointed officials, employees, or authorized volunteers of the Member, whether or not compensated, while acting for or on behalf of the Member, including while acting on outside boards at the direction of the Member.
C. Any
person, while using an Owned, Non-Owned or Hired Vehicle, and any person legally responsible for the use thereof, provided the actual use thereof is authorized by the Member. The coverage extended by this Section C shall not apply to:
1. An
y person or organization, or to any agent or employee thereof, engaged in selling, repairing, servicing, delivering, testing, road testing, parking, or storing Vehicles, with respect to any Occurrence arising out of any such occupation; or 8 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 3 of 14
2. The owner, or a lessee of any Hired or Non-Owned Vehicle , or their agent or employee.
V. WHAT THE AUTHORITY WILL NOT COVER (EXCLUSIONS)
Thi
s memorandum does not apply:
A. To Bod
ily Injury, Property Damage, or Personal Injury arising out of the ownership or maintenance or use or operation of any airfield or similar aviation facility.
B. To liabilit
y arising out of the ownership or maintenance , loading or unloading, or use or operation of any Aircraft.
C. To liabilit
y arising out of the ownership or maintenance , loading or unloading, or use or operation of any watercraft.
D. To a ny o
bligation for which the Covered Party may be held liable under any workers’ compensation, unemployment compensation, or disability benefits law, or under any similar law.
E. To liab
ility for loss of past or future salary, wages, employee benefits, or other similar compensation of any employee or official of the Covered Party arising out of unlawful discrimination, harassment, retaliation, wrongful termination, violation of civil rights or other workplace tort, or any liability arising out of an Employment Practices Violation.
F. To liabi
lity for Bodily Injury to any employee of the Covered Party arising out of and in the course of employment by the Covered Party, except with respect to liability of others assumed by the Covered Party under contract.
G. To lia
bility of any employee with respect to Bodily Injury of another employee.
H. T
o liability for Property Damage to:
1. Pe
rsonal or real property owned by the Covered Party;
2. Pe
rsonal or real property owned by others for which the Covered Party has assumed liability under a contract, unless the Covered Party would have been liable for damage in the absence of such a contract.
I. To
any liability arising from Pollutants, except Pollutants released:
1. As re
sult of colli sion, upset or overturn of a Vehicle when Pollutants originate from the operating systems used to power or run the Vehicle. 9 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 4 of 14
2. As a result of uncontrolled fire, flood, or firefighting efforts affecting property owned, leased or occupied by the Covered Party.
3. At a
ny location on which any Covered Party is performing work, or a contractor or subcontractor is performing work on behalf of the Covered Party, if Pollutants were not brought to the location by the Covered Party , or its contractor or subcontractor.
J. To
liability arising out of any governmental direction or request that the Covered Party test for, monitor, cleanup, remove, contain, treat, detoxify, or neutralize Pollutants.
K. To
any claims made against Covered Parties arising out of, or connected with the application of the principles of eminent domain, condemnation proceeding, retroactive condemnation, inverse condemnation or reverse condemnation, by whatever name called, regardless of whether such claims are made directly against the Covered Party, or by virtue of any agreement entered into by or on behalf of the Covered Party.
L. To
fines , penalties, multipliers, or enhanced compensatory, exemplary or punitive damages. This exclusion, however, does not apply to the original compensatory damages prior to the application of a multiplier or other enhancement.
M. U
nder Public Officials Errors and Omissions, to:
1. Bod
ily Injury, Personal Injury or Property Damage.
2. R
efund of taxes, fees, or assessments.
3. L
iability of a Covered Party (a) arising in whole or in part out of a Covered Party obtaining remuneration or financial gain to which the Covered Party was not legally entitled, or (b) arising out of the willful violation of a penal code or ordinance committed by or with the knowledge or consent of a Covered Party.
However, this exclusion shall not apply to the vicarious liability of the Covered Party.
4. L
iability arising out of exceeding estimates of probable cost or cost, or faulty preparation of bid specifications or plans, including architectural plans.
5. Failu
re to perform or breach of a contractual obligation.
6. Li
ability imposed under the “Employee Retirement Income Security Act of 1974” or any amendatory or similar law, or fiduciary liability for employee benefit plans.
7. Liab
ilities, including all loss, costs or expense, arising out of securit ies laws or regulations. However, this exclusion shall not apply to the first $ 2,000,000 of Ultimate Net Loss.
10 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 5 of 14
N. To liability arising from the hazardous properties of Nuclear Material.
O. To
liability arising out of War; however, this exclusion shall not apply to the first $2,000,000 of Ultimate Net Loss.
P. To all los
s, cost or expense arising out of or related to, either directly or indirectly, any NBCR Terrorist Activity, and any action taken to hinder, defend against or respond to any such activity. This exclusion applies regardless of any other cause or event that in any way contributes concurrently or in any sequence to such loss, cost or expense. However, this exclusion does not apply to the first $2,000,000 of Ultimate Net Loss.
Q. To
liability claims for injury or damages caused by intentional conduct done by the Covered Party with willful or conscious disregard of the rights or safety of others, or with malice.
R. To
liability, including all loss, costs, or expenses, directly or indirectly arising out of fungi or bacteria.
S. To
liability arising out of asbestos.
T. To
liability, including all loss, costs, or expenses, directly or indirectly arising out of silica.
U. To lia
bility arising out of Uninsured or Underinsured Motorists laws.
V. To liabil
ity arising out of a Vanpool service.
W. To liabilit
y arising out of any access to, or disclosure of, any person’s or organization’s confidential or personal information, including patents, trade secrets, process methods, financial information, credit card information, health information or any other type of nonpublic information.
X. To liabilit
y arising out of the loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data.
Y. To liabilit
y arising out of transit operations as to which the Member has not reported the associated Revenue Vehicle Miles and/or Non-Revenue Vehicle Miles to the Authority as part of their annual contributions.
Z. To liabilit
y arising out of the operation by or on behalf of a Member of a railroad, subway, light rail, street cars, cable cars, or any other rail system.
AA. To liab
ility arising out of the acts or omissions of armed security personnel employed by or on behalf of the Covered Party.
11 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 6 of 14
VI. WORDS AND PHRASES WITH SPECIAL MEANING
Airc
raft means a vehicle designed for the transport of persons or property principally in the air.
Autho
rity mean s the California Transit Systems Joint Powers Authority.
Bod
ily Injury mean s Bodily Injury, sickness or disease, including death resulting therefrom.
Coverage
Peri od means the period of time stated in the Declarations.
Cover
ed Party mea ns any person or entity set forth in Section IV of this memorandum.
Def
ense Costs m eans all fees and expenses caused by and relating to the adjustment, investigation, defense, or litigation of a claim including court costs and interest on judgments accruing after entry of judgment. Defense Costs shall not include the office expenses of the Authority or the Covered Party nor the salaries of employees or officials of the Authority or any Covered Party.
Empl
oyment Practices Violation means actual or alleged:
1. Wro
ngful, dismissal, discharge, or termination, either actual or constructive, including a breach of an implied contract;
2. Harassment, including but not limited to bullying and sexual harassment, whether quid pro quo or hostile work environment;
3. Discrimination, including but not limited to discrimination based on age, gender, gender identity, race, color, national origin, religion, se xual orientation or preference, genetic information, pregnancy, military status or disability;
4. Retaliation;
5. Employment related misrepresentation to an employee;
6. Employment related libel, slander, humiliation, defamation, or invasion of privacy;
7. False arrest or false imprisonment;
8. Wrongful failure to employ or promote;
9. Wrongful deprivation of ca reer opportunity, wrongful demotion, or negligent employee evaluation, including but not limited to giving of negative or defamatory statements in connection with an employee reference;
10. Wrongful discipline;
11. Violation of state or federal family or medical leave laws; But o
nly if the Employment Practices Violation listed in 1. through 11 . above relates to an employee, either past or present, or an applicant for employment with the Covered Party , whether committed directly, indirectly, intentionally or unintentionally.
Hired Vehicle mean s a Vehicle used under contract on behalf of or loaned to the Member, provided such vehicle is not owned by or registered in the name of (1) the Member, or (2) an employee or volunteer of the Member or a member of their household. 12 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 7 of 14
Member means the transit system designated in the Declarations and currently a signatory to the Joint Powers Agreement forming the Authority.
NBCR Terrorist Activity shall mean any deliberate, unlawful act that includes, involves or is associated with, in whole or in part, the use or threatened use of, or release or threatened release of, any nuclear, biological, chemical or radioactive agent, material, device or weapon, that:
1. is d
eclared by any authorized governmental official to be or to involve terrorism, terrorist activity or acts of terrorism; or
2. is
related, in whole or in part, to any intention to:
(a) p
romote, further or express opposition to any political, ideological, philosophical, racial, ethnic, social or religious cause or objective; or (b) i
nfluence, disrupt or interfere with any government related operations, activities or policies; or
(c) inti
midate, coerce or frighten the general public or any segment of the general public; or
(d) di
srupt or interfere with a national economy or any segment of a national economy.
Non-Owned Vehicle means a Vehicle not owned or leased by the Member or hired by a Covered Party for use for or on behalf of the Member.
Nuclear Material means source material, special Nuclear Material or by-product material all as defined by the Atomic Energy Act of 1954 and its amendments.
Occurrence, as respects Bodily Injury or Property Damage, means an accident or event which results, during the Coverage Period, in Bodily Injury or Property Damage neither expected nor intended from the standpoint of the Covered Party; and, as respects Public Officials Errors and Omissions and Personal Injury, means an act, accident, omission or event during the Coverage Period that results in injury or damage.
Owned Vehicle means a Vehicle owned by or under long-term lease to the Member.
Personal Injury means (a) false arrest, malicious prosecution, or wrongful detention; (b) libel, slander, or defamation of character; (c) invasion of privacy; (d) wrongful entry or eviction, or other invasion of the right of private occupancy; (e) assault and battery; and (f) discrimination or civil rights violations.
Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, 13 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 8 of 14
reconditioned, or reclaimed. The term Pollutant as used herein does not apply to potable water, agricultural water, or water furnished for use as a fire suppressant.
Pro
perty Damage m eans (1) physical injury to or destruction of tangible property, including the loss of use thereof, or (2) loss of use of tangible property that has not been physically injured or destroyed.
Publi
c Officials Erro rs and Omissions means any and all breaches of duty by the Covered Party arising from negligent action or inaction, mistake, misstatement, error, neglect, or omission by the Covered Party in the discharge of their duties for the Member.
Ult
imate Net Loss means (1) sums the Covered Party becomes legally obligated to pay as damages due to adjudication or compromise by reason of liability imposed by law or assumed by contract, after making proper deduction for all recoveries and salvages collectible, and (2) Defense Costs.
Va
npool means a transit mode comprised of vans, small buses or other vehicles operating as a ride sharing arrangement, providing transportation to a group of individuals traveling directly between their homes and a regular destination within the same geographic area . The term Vanpool does not mean dial-a-ride, paratransit, demand response or subscription services.
Veh
icle means a land motor vehicle or trailer licensed for highway use.
War me
ans, whether declared or not, war or civil war, martial law, insurrection, revolution, invasion, bombardment or any use of military force, usurped power or confiscation, nationalization or warlike action by any government, military or other authority.
VII. C
ONDITIONS
A. Deposit/Adjustment. All deposits and retrospective adjustments for this memorandum shall be computed and paid in accordance with the Joint Powers Agreement, Bylaws, and the cost allocation plan adopted by the Board of Directors.
B. Inspection and Audit. The Authority shall be permitted but not obligated to inspect the Member’s property and operations at any time. The Authority may examine and audit the Member’s books and records at any time prior to the cessation of the Member’s financial obligations under the Joint Powers Agreement. Any inspection conducted by the Authority is solely for the benefit of the Authority and does not constitute a determination that the Member’s premises, property or operations are safe, healthful or in compliance with applicable laws.
14 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 9 of 14
C. Duties in the Event of Occurrence, Claim, or Suit
1. T
he Member shall report in writing to the Authority’s claims administrator within five (5) business days of knowledge by the Member’s designated representative, all Occurrences or claims which appear likely to involve coverage , except as provided in (a) and (b) below which requires immediate reporting:
(a) O
ccurrences involving:
Ve
hicle v. Pedestrian or Bicycle
Fatalities
Amputations or dismemberment
Spinal injuries
Paralysis
Sensory loss
Severe head injury or brain damage
Serious burn
Disfigurement
Loss of major organ
Loss of use of body functions
Extended disability (greater than six months)
Significant psycho-neurotic involvement
Sexual abuse or molestation
Multiple injuries and property damage
Multiple vehicles (more than two vehicles)
Catastrophic property damage
Class action suits
Civil rights violations
(b) O
ccurrences involving Public Officials Errors and Omissions.
2. Wri
tten notice containing particulars of the Occurrence being reported shall be sufficient to identify the Covered Party , and also reasonably obtainable information with respect to the time, place, and circumstances thereof, and the names and addresses of injured persons and available witnesses, shall be given by or for the Member to the Authority’s claims administrator.
3. Duti
es of All Covered Parties
(a) I
f claim is made or suit brought against a Covered Party for an Occurrence reportable under 1 above, the Member and any other involved Covered Party shall immediately forward to the Authority’s claim administrator every demand, notice, summons, or process received.
15 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024 Page 10 of 14
(b) The Member and Covered Party shall cooperate with the Authority and, upon the Authority’s request, assist in:
i. Maki
ng settlements.
ii. The
conduct of suits.
iii. Enfo
rcing any right of contribution or indemnity against any person or organization liable to the Covered Party for loss paid or payable under this memorandum.
(c) T
he Covered Party shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Covered Party shall not, except at the Covered Party’s cost:
i. Vo
luntarily make any payment.
ii. Ass
ume any obligation.
iii. Inc
ur any expense other than for first aid or damage mitigation.
The
Authority shall not be liable for Occurrences, suits, or claims in which the Member fails to comply with this Condition C.
D. Action Against Authority
1. If the
Member disagrees with any recommendation of the Authority’s claims administrator, the disagreement shall be settled in accord with the Claim Dispute Resolution Procedure in the Liability Master Program Document.
2. Othe
r than as provided in Item 1 above, Covered Parties have no right of action under this memorandum unless they have fully complied with all of its terms and the amount of the Covered Party’s obligation has been finally determined either by judgment against the Covered Party, after actual trial, or by written agreement of the Covered Party, the claimant, and the Authority.
3. Any
person or organization or their legal representative, having secured judgment after actual trial or a written agreement with the Covered Party with the consent of the Authority, shall be entitled to recover under this memorandum to the extent it provides coverage. No person or organization has a right under this memorandum to join the Authority in any action against the Covered Party to determine the Covered Party’s liability. The Authority shall not be brought into or subject to an action by the Covered Party or the Covered Party ’s legal 16 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024
representative except as allowed in Item 2 above. Bankruptcy or insolvency of the Covered Party or of the Covered Party’s estate shall not relieve the Authority of any of its obligations hereunder.
E. Other Coverage. The coverage afforded in this memorandum is excess of and shall not contribute with any valid and collectible insurance or pooled coverage available to the Covered Party, other than any excess or umbrella insurance procured by the Authority or the Member that is specifically meant to apply in excess of the coverage afforded by this memorandum. This condition does not apply to any Covered Party the Member has agreed to protect on a primary basis who qualifies as an additional Covered Party pursuant to a written endorsement to this Memorandum.
F. Subrogation. The Authority is subrogated to the Covered Party’s rights of recovery for payments made by the Authority against any person or organization. The Covered Party shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Covered Party shall do nothing after loss to prejudice such rights.
Any amount recovered shall be apportioned as follows:
1. Fir
st to the Authority to the extent payments were made by excess insurance or reinsurance. Any remaining recovery shall be allocated between the Authority and the Member in proportion to their payments.
2. Exp
enses incurred in recovery activities shall be paid by recovery proceeds before any such apportionment.
3. To t
he extent recovery proceeds are insufficient to discharge recovery expenses, the Authority shall pay such expenses.
G. Changes . This memorandum shall not be changed, except by written endorsement hereto.
Effect
ive Date: May 1, 2024
For
ms and Endorsements: LMOC-14
Endorsement No. 1– Additional Covered Party
Iss
ued by: California Transit Systems Joint Powers Authority Issued to: All Members
By: _
_________________________
Chrissy Mack, General Manager
17 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
Effective May 1, 2024
ENDORSEMENT NO. 1
AD
DITIONAL COVERED PARTY
CA
LIFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
LIA
BILITY COVERAGE PROGRAM
It i
s agreed that the Section IV, Who is a Covered Party, of the Liability Memorandum of Coverage is amended to include the person or organization to whom/which the Member has agreed to provide coverage under this Liability Program, but only as respects:
(a) R
eal or personal property owned by such person or organization and rented or loaned to the Member,
(b) O
perations performed by the Member for such person organization, or (c) Ope
rations performed under contract for or on behalf of the Member.
Co
verage provided by this endorsement is limited to Bodily Injury and Property Damage only.
The lesser of the limits of liability stated in the contract with such person or organization or the limits of liability stated in the Declarations shall apply to coverage under this endorsement. This endorsement shall not increase the Authority’s limits of liability as stated in the Declarations.
Thi
s endorsement amends the Memorandum of Coverage stated below and is incorporated into the coverage provided under the Declarations issued to the Member stated below. The effective date shall be that stated on the Declarations unless specifically stated below.
Eff
ective Date: May 1, 2024
Fo
rms and Endorsements: LMOC-14
Endorsement No. 1 – Additional Covered Party
Endorsement No. 2
Is
sued by: California Transit Systems Joint Powers Authority Issued to: All Members
By:
________________________________
Chrissy Mack, General Manager
18 CalTIP Form No. LMOC-14
Liability Program Memorandum of Coverage
ENDORSEMENT NO. 2
CALIFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
LIABILITY COVERAGE PROGRAM
This endorsement modifies the Liability Program Memorandum of Coverage by deleting exclusion AA. in section V. WHAT THE AUTHORITY WILL NOT COVER (EXCLUSIONS).
Effective Date: May 1, 2024
Forms and Endorsements: LMOC-14
Endorsement No. 1 – Additional Covered Party Endorsement Issued by: California Transit Systems Joint Powers Authority Issued to: All Members
By: ________________________________
Chrissy Mack, General Manager
19 CalTIP Form No. LMOC - 14
Liability Program Memorandum of Coverage
ENDORSEMENT NO. 3
CHANGE OF DECLARATIONS ENDORSEMENT
CALIFORNIA TRANSIT SYSTEMS JOINT POWERS AUTHORITY
LIABILITY COVERAGE PROGRAM
It is agreed that the Declarations of the Liability Program Memorandum of Coverage is amended to include:
Members: Retention: Memorandum No:
Siskiyou Transportation Agency $0 24-25-L-44
It is further agreed that the Declarations of the Liability Program Memorandum of Coverage is amended to remove:
Members: Retention: Memorandum No:
County of Siskiyou $0 24-25-L-12
Effective Date: December 3, 2024
Issued by: California Transit Systems Joint Powers Authority By: ________________________________________
Chrissy Mack, CalTIP General Manager
20