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HomeMy WebLinkAboutResolution No. 171A RESOLUTION TO APPROVE AMENDMENTS TO THE INTERLOCAL AGREEMENT CREATING THE PUGET SOUND CITIES INTERLOCAL INSURANCE AUTHORITY RESOLUTION NO. 171 A RESOLUTION TO APPROVE AMENDMENTS TO THE INTERLOCAL AGREEMENT CREATING THE PUGET SOUND CITIES INTERLOCAL INSURANCE AUTHORITY, HEREAFTER REFERRED TO AS PSCIA. WHEREAS, the Puget Sound Cities Interlocal Insurance Authority has been a functioning and operating organization for the past four years, pursuant an Interlocal Agreement between its Member Cities; and WHEREAS, the City of Medina is a signatory party to this agreement; and WHEREAS, Article 26 of the Interlocal Agreement creating the Puget Sound Cities Interlocal Insurance Authority allows for amendment of the Interlocal Agreement; and WHEREAS, the Board of Directors of the Puget Sound Cities Interlocal Insurance Authority has identified certain articles of the Interlocal Agreement creating PSCIA as in need of amendment to promote the future efficient operation of PSCIA; and WHEREAS, on February 21, 1985 the Board of Directors of PSCIA unanimously approved the adoption of the below described proposed changes to certain sections of the Interlocal Agreement creating the Puget Sound Cities 'Interlocal Insurance Authority approved the presentation of the same to each of the City Council of each of the member Cities of the proposed amendments for their ratification and approval to amend the Interlocal Agreement. WHEREAS, the City of Medina has reviewed the proposed amendments to the Interlocal Agreement and find that they merit. adoption. NOW, THEREFORE, be it resolved by the Mayor and the City Council of the City of Medina; that 1. The City of Medina approves the adoption of the below described proposed changes to certain sections of the Interlocal Agreement creating the Puget Sound Cities Interlocal Insurance Authority and authorizes the City Manager to execute the amended Interlocal Agreement creating the Puget Sound Cities Inter - local Agreement, with the following amendments Incorporated therein. ARTICLE 1 (h) (dnsufange-Manager) Executive Director shall mean that employee of ' the Authority who is appointed by the Board of Directors, and responsible for the management and administration of the joint protection program of the Authority. ARTICLE 2 This agreement is entered into by Cities in order to provide more compre- hensive and economical liability coverage, to provide for the economical or or required by law for municipal corporations and for which State law authorizes the amount and frequency of Cities' losses, and to decrease the cost incurred by Cities in the handling and litigation of claims. This purpose shall be accomplished through the exercise of the powers of Cities jointly in the creation of a separate entity, the Puget Sound Cities Interlocal Insurance Authority (Authority), to administer a joint protection program wherein Cities will pool their losses and claims, jointly purchase excess insurance and administrative and other services including claims adjusting, data processing, risk management consulting, loss prevention, legal and related services. ` It is also the purpose of this Agreement to provide, to the extent permitted by law, for the inclusion (of -the) at a subsequent date of such additional municipal corporations organized and existing under the Constitution or laws of the State of Washington as may desire to become parties to this Agreement and members of the Authority, subject to approval by the Board of Directors. ARTICLE 7 (a) The Authority shall be governed by the Board of Directors which is hereby established and which shall be composed of one representative from each Member City who is an employee or official of that City as appointed by the City Council, Commission, or appointing official, of that City. Each City Council, Commission, or appointing official, in addition to appointing a member of the Board shall appoint at least one alternate who also shall be an officer or employee of that City. ARTICLE 8 (j) The (Jmsu"Ttc Fmtmger) Executive Director shall have the power to hire such persons as the Board authorizes for the administration of the Authority, including the "borrowing" of management -level employees from one or more of the Member Cities to assist in the development phase of the joint protection program of the Authority, subject to the approval of the Member City. Any Member City whose employee is so "borrowed" according to this provision shall be reimbursed by the Authority for that employee's time spent or rendered on behalf of the Authority. (k) The (dnsuraxu a 6lanager) Executive Director shall have the general„ supervisory control over the day-to-day decisions and administrative activities of the Authority. (i) The Board shall have such other powers and functions are provided for in this agreement, including, but not limited to, the power to authorize the contracts with non-member Cities or municipal corporations and the "Authb ARTICLE10 The Board of Directors may appoint at an time of the ear durin a board meeting an' Executive Committee of the Boar of Directors which shall consist of an odd number of not less than five nor more than nine members, as determined by the Board of Directors. (4na) Two of the members of the Executive Committee shall be the President of the Board of Directors, (or in his or her absence) and the Vice President of the Board of Directors; the remainder of the members, aftertheir original election, shall be elected by the Board of Directors at the same me -the officers of the Board are elected in January of each calendar year. The President of the Authority, or the Vice President in his or her absence, shall serve as the Chairperson of the Executive Committee. The Board of Directors may delegate any of the powers of the Board as outlined in Article 8 to the Executive Committee and may establish and delegate any other powers and duties the Board deem appropriate. ARTICLE 11 (b) (Insunaase-Manager) Executive Director. The (insurance -Manager) Executive Director shall have the general responsibility for the activities of the joint protection program and shall appoint all necessary employees thereof. ARTICLE12 (a) The insurance coverage provided for Member Cities by the Authority shall (ieslude) allow or require protection for comprehensive liability, personal injury, errors and omissions, contractual liability, and such other areas of coverage as the state shall require or the Board shall determine. 2. ARTICLE 13 (c) The initial premium for each City shall be determined by the Board, (on the basis of the City's payroll as compared to the total payroll of all Member Cities, excluding such portion of a City's payroll as may be attrib- utable to operations not covered by the joint protection program. The total initial premium for a Member City in the first year of operation of the joint protection program shall not exceed the total premium paid by such City for the preceding year, except that if during that preceding year a City was partially self -insured, that City's premium shall take into account the City's loss experience under said self-insurance program.) in its discretion, based u on a fair formula which shall consider, but not be imited to, total Git pavro a ministrative experience of the City, the previous loss experience of the City, the liabilit risks of the City and the costs to the Authorit of adding the City as member. ARTICLE 14 - (c) ()3lsuraftce tAanager'-s) Executive Director's Report. The (insurance Manager) Executive Director, 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 City. ARTICLE 15 (c) The Treasurer's duties shall include: (4) Pay any other sums due from Authority money only upon request for payment signed by the President of the Board of the (Insuraxtcz-ManWx-) Executive Director. ARTICLE 16 (h) Conduct risk management audits to review the participation of each m City in the program. The audit (teem) shall (ittcfude-a--eptret&�-front t{te-AutharYty; the- -C-r*"-Hwo-Tved--arm-at`-least ime-other --ir) be performed b the Executive Director or, at the discretion of the Board, an independent au itor may be retaine by contract to conduct the audits. ARTICLE 17 ' (a) The City Council, Commission, or appointing official of each City shall appoint a representative and at least Ong representative to the Board of Directors, pursuant to Article 7 of this Agreement. ARTICLE 19 After the effective date of the joint protection program is established by the Authority, according to the provisions of Article 18, additional cities shall be permitted to become signatories to this Agreement, or to enter the joint protection program, during the first year of operation. Following the first year of operation, the Authority shall allow entry into the program of new members approved by the Board (anly-at-the-end-of-the-flseal-year) at such time during the year as the Board deem appropriate. Y PASSED by the City Council this 8th day of April, 1985 and signed in authentication of its passage the 8th day of April, 1985. rdon...Gr.i£fas,_M Q cer,ily that I am the city Clarl �I the C.:, cl idaiinn; that annexed harelo uC, :'. --Rc ......... Attest: _is..R.T'•^`@'S'�.�Ta.C>pin'y;x`+-'w...�vax��C„],lA,..t�5.?:A�.a.� bar.9 L.e tr,c oral c,ny of suc --! -'--- �ma, Della M. Wyatt, City Cl ._._ ....,..Lam 14 g City Glark 3. 5 F AI