HomeMy WebLinkAbout01/02/1990, C-3 - REVISION OF THE JOINT EXERCISE OF POWERS AGREEMENT AND THE CREATION OF BYLAWS OF THE CENTRAL COAST `V't�l M1II METING DATE:
city of San tins OBIspo - o
j COUNCIL AGENDA REPORT
Imo"''NUMBER: +
FROM: Ann McPike, Personnel DirectorQf
SUBJECT: Revision of the Joint Exercise of Powers Agreement and the Creation
of Bylaws of the Central Coast Cities Self Insurance Fund
CAO RECOMMENDA710N:
Adopt resolution approving the revision of the agreement creating the
Central Coast Cities Self Insurance Fund and the creation of bylaws.
BACKGROUND: n July , the Centraloast Cities Self-Insurance Fund was
formed by a Joint Powers Authority (JPA) Agreement to provide a
workers' compensation self-insurance program. The charter cities were
Arroyo Grande, Grover City, Morro Bay, Paso Robles, Pismo Beach and
San Luis Obispo. Since its inception the membership has grown to
eleven cities (Atascadero,Guadalupe, Lompoc,Santa Maria,Santa Paula
and also now includes programs for General/Auto Liability and
Deferred Compensation.
The Central Coast Cities Self-Insurance Fund was one of the first
pooled municipal insurance programs in the State. It was established
to allow the advantages of self-insurance-to accrue to the smaller cities
and at the same time maintain predictability of costs by combining the
funding of all members.
At the October 4, 1989 Board of Directors meeting, it was recommended
that the JPA Agreement be recreated to more adequately reflect the
operation of the Central Coast Cities Self Insurance Fund. In addition,
it was recommended that Bylaws be developed to provide for written
operating policy and procedure.
The new documents being proposed for adoption will become effective
when all current members adopt them by Council action. Many of the
changes are cosmetic in nature. The basic concepts of the Program are
the same. The governing structure has been modified to facilitate day-
to-day operations. The major changes are summarized as follows:
Bylaws have been created. Bylaws will allow more flexibility
as they may be amended by a two-thirds vote of the Board of
Directors.
An Executive Committee has been created and is composed of
the Immediate Past President, President, Vice President, and
Secretary/Treasurer. The Secretary/Treasurer is a non-voting
member. The Executive Committee shall oversee day-to-day
operation of the Authority with whatever powers are provided
by the Board.
The President is granted more authority.
The positions of Secretary and Treasurer have been combined.
The Director of Finance of the City of San Luis Obispo serves
in the capacity.
���� ►�►►►�IIIIIIIIIP°�°►►���III city of san tins oBespo
MaZe COUNCIL AGENDA REPORT
IPA Agreement
Page Two
The terms of office are for one year. Currently there is no set
term of office.
The terms of office will be on a calendar year basis, rather than
on a fiscal year basis.
The current IPA Agreement contains a section on an Employee
Benefits plan which is no longer in existence. The new
Agreement does not address specific programs; provisions of
specific programs are covered in the Bylaws which can be
changed by the Board of Directors whenever appropriate.
FISCAL IMPACT: None.
ALTERNATIVES: 1. Adopt the resolution.
2. Take no action.
CONCURRENCES: The Finance Director and the City Attorney concur with the
recommendation.
CONSEQUENCES OF NOT TAKING THE RECOMMENDED ACTION:
If the Council fails to adopt this resolution, the new IPA Agreement
and Bylaws will not become effective. All current members of the
CCCSIF are required to adopt the documents by Council action.
Without the adoption by the San Luis Obispo City Council, the current,
outdated agreement will remain in effect without the written operating
policy and procedure contained in the bylaws.
RECOMMENDATION:
Adopt resolution approving the version of the agreement creating the
Central Coast Cities Self Insurance Fund and the Creation of Bylaws.
Attachments: 1. Proposed Agrewmt
2. Bylaws
RESOLUTION NO. (1990 Series)
RESOLUTION APPROVING THE REVISION OF THE
AGREEMENT CREATING THE CENTRAL COAST CITIES
SELF INSURANCE FUND AND THE CREATION OF
BYLAWS
WHEREAS, the City of San Luis Obispo is a member entity of the
Central Coast Cities Self Insurance Fund; and
WHEREAS, the Board of Directors of the Central Coast Cities
Self Insurance Fund at the October 4, 1989 meeting voted to
recommend revisions to the original Agreement, and
WHEREAS, the Board of Directors voted to create Bylaws for the
Central Coast Cities Self Insurance Fund; and
WHEREAS, a complete and true copy of the proposed Joint
exercise of Powers Agreement and Bylaws recommended by the Board,
has been provided to this member entity; and
WHEREAS, this member entity is in accord with the revised
Joint Exercise of Powers Agreement and the Bylaws, and finds that
they should be adopted; now therefore
BE IT RESOLVED that this member entity hereby adopts the
revised Joint Exercise of Powers Agreement and newly created
Bylaws, and authorizes execution of the Agreement. .
On motion of seconded by
and on the following roll call vote: /
AYES:
NOES
ABSENT:
C
Resolution No. (1990 Series)
The foregoing Resolution was passed and adopted this day
1989.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAM VOGES
APPROVED:
City Administrative Officer
i. 6At
y
Fin ncctor
Personnel Director
• JOINT EXERCISE OF POWERS AGREEMENT
FOR CENTRAL COAST CITIES SELF INSURANCE FUND
This Aurc:ement is made by and aurone the undersiuncd public entities, all of
which are organized and operating under the laws of the: Mate W California.
RECITALS
1. The following state laws. anion_ others. authorize the Member
Agencies to enter into this Aereemc:nt:
A. Labor Code Section 3700(h) which alkms a local public entity to
fund its Workers' Compensation claims:
B. Government Code Sections 989 and 990 which permits a local
public entity• to insure against liability and other losses:
C. Government Code Section 990.4 which permits a local public
entity to provide insurance and self-insurance in anv desired combination:
D. Government Code Section 990.8 which permits two or more
local public entities to enter into an agreement to jointly fund such
expenditures in accordance with Government Code Sections 6-500-6-515: and
C
1-1 VS! Aucu�l 9. t
E. Government Code. Section 6500-6515 which permits two or more ^
local public entities to jointly exercise under an agreement any powers which )
are common to each of them.
2 Each of the parties to this Agreement desires to join with the other
partics for the purpose of:
�. Devcloping efcctive risk management programs to reduce the
,ti•,u UJII ,Ind frequency of If: it losscs:
B. Pooling their self-insured losses: and
C. Jointly ourchasing insurance and administrative services in
ili IfiC i%rOora m>. for said p::rti
3. The go%,erning bod% of each undersigned public entity has determined
that it is in the entitv's own best interest and in the public interest that this
.)resent Agreement be executed and that the entity shall participate as a
member of the public entity created by this Agreement.
NOW, THEREFORE, the undersigned, by, between and among themselves..
in consideration of the mutual benefits, promises and agreements set forth below.
hereby agree as follows:
Tti,%SU7t:.VS]
AGREEMENT
ARTICLE I
RE-CREATION OF TETE CENTRAL. COAST CITIES SELF INSURANCE FUND
This agreement has been created for the purpose of revising and updatin( an
existing Joint Exercise of Powers Agreement forming the Central Coast Cities Self
Insu,mnce Fund.
Pursuant to Article I, Chapter 5,. Division 7, Title I of the Governnicnt Code of the
Stag of California (commencing with Section 6500), the parties hereto hereby cre::te
a puhlic agency, separate and apc:rt from the parties hereto. knimvn as the Central
Coast Cities Self Insurance Fund. hereinafter called the Authority. This a 'rCCttlen:
st:::ll supC,-SCd' .:m such otlie. a,rc emen:.
• ARTICLE II
PURPOSES
This Agreement is entered into by Member Agencies pursuant to the provisions of
California Government Code Sections 990, 990.4, 990.8. and 6500. et seq.. to:
L Pool on a self-insured basis various risks in excess of established
deductible amounts and up to a jointly selected maximum:
'_. Jointh purchase insurance coverage;
I Jointly purchase administrative and other services including. but not
limited to: claims administration, data processing. risk management, loss
prevention and legal services in connection with any of the Programs:
'I� r�(117}i.i's l i. :\uEuy 4, lo:•r
3- 7
4. Create and maintain various Program funds to pay the cost of the O
self-insured portions of losses insured against;
5. Implement risk management and loss control programs;
G. Provide for including in the future additional cities which desire to
become parties to the Agreement; and
7. Provide for the removal of Member Agencies for cause or upon
reau.-st.
ARTICLE Ill
DEFINITIONS
Unless the context otherwise requires, the following terms shall be defined as herein
stated:
1. "Authority" shall mean Central Coast Cities Self Insurance Fund.
2. "Board" or "Board of Directors" shall mean the governing body of the
Authoritv.
3. "Deposit" shall mean the estimated amount determined by the Board
for each tilember Agency necessary to fund the Program Year for each
Prozram of the Authority.
1'1..7407LS PSI a august •+. 1 ""
4. "Insurance" shall mean that insurance which may be purchased on
behalf of the Authority to protect the funds of the Member Agencies against
loss as is determined by the Board of Directors.
5. "Member Agency" shall mean any of the public entities which arc; a
party to this Agreement.
6. -M-1-morandum of Coverage" shall be rile document issued by the:
Authority to NlCmbe,- speciiving the type and amount of pooled
coverage provided to each :Member Agency by the Authority.
7. "Fiscal Year" shall, mean period of time as defined in Article \I. to
he used in dcrermining operating hudget, deposits, and incurred losses.
S. "Program" shall include. but nut he lirnited to. property. workers
compensation. and liability coverages as maybe determined by the. Board.
9. "Covered Losses" shall mean anv loss resulting from a claim o; claims
against a Member Agency which is in excess of its respective deductible and
is covered by anv Memorandum of Coverage issued by the Authority or any
purchased insurance coverage.
ARTICLE Nrl
PARTIES TO AGREEMENT
Each party to this Agreement certifies that it intends to, and does, contract with all
other parties who are signatories to this Agreement and, in addition, with such other
parties as may later be added partics to, and signatories of, this Agreement pursuant
•
it
� 3- 9
to Article XVIL Each party to this Agreement also certifies that the deletion of any
party from this Agreement, pursuant to Article XVIII or XIX, shrill not affect this
Agreement or the remaining parties' intent to contract as described above with the
other parties to the Agreement then remaining.
ARTICLE V
TERM OF -kGREENIEN'r
This A(_reement sh:til become effective when executed by the titles of Arroyo
Grand-_. A_txscadcro. Grover Cite. Guadalupe. Lompoc. `lorro Ba,. Paso Rohles..
Pismo Beach. San Luis Obispo, Santa Maria. and Santa Paul::. arnj shall remain in
;:ull force until terminated in accordance with Article XX1.
ARTICLE %I
POWERS OF THE AUTH.ORITI'
The Authority is authorized. .in its own name, to do all acts necessary to fulfill the
purposes of this Agreement as referred to in Article II, including. but not limited for
L Make and enter into contracts:
2. Incur debts, liabilities and obligations, but no debt, liability or
obligation of the Authority is a debt. liability or obligation of anv Member
Agency, except as otherwise provided by Article XIX and XX:
?. Acquire. hold or dispose of real and.personal property:
a
O4. Receive contributions and donations of property, funds, services and
other forms of assistance from any source;
5. Sue and he sued in its own name;
6. Lease real or personal property, including that of a 1ti4enther Al:'enc`:
7. Receive. collect, invest and disburse monies; and
S. Undertake such other activities as may be necessary to carry out the
purpose :tf this Aereemerit.
These po%�ers sh,.!! be exercised in the manner provided bs applicable l i%% anti as
ezpressic set fortis in this Agretme.nt.
ARTICLE VII
NIENIBER AGENCY-RESPONSIBILITIES
The Member Agencies shall have the following responsibilities:
1. To appoint a representative and alternate to the Board of Directors:
I To cooperate fully with the Authority in determining the cause of
losses and in the settlement of claims, as defined in the insurance coverage:
3. To pay deposits and any adjustments thereto promptly to the Authorit\
when due:
�-3-I1
4. To provide the Authority with such statistical and loss experience dart O
and other information as may be necessary for the Authority, in all matters
relating to this Agreement and to comply with the Bylaws and all policies and
procedures adopted by the Board.
5. Maintain an active risk mcinagcment program.
6. Dcsk-mate a risk manager charged with overseeinu the entitv's risk:
management program %vithin the cite:
. Compl%. %vith safcL%1Joss control requirements cstahlishcd by the
Authority.
Establish a claim manaaem-r: procedure.
ARTICLE VIII
BOARD_OF-DIRECTORS
1. MEMBERSHIP There shall be a Board of Directors "to govern the
affairs of the Authority. The Authority's Board shall be comprised of one
representative from each Member Agency. The City Council of each
Member Agency shall appoint asits representative the City Manager, or City
Administrator. The Board member shall serve and be subject to removal and
replacement at the pleasure of the appointing city. Said representati%•e shi 111
have authority to bind the Member Agency on all matters pertaining to this
agreement.
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TP.,y_W7u i s� R AuE,l.; ,, Io.•,
Each Board representative shall appoint one alternate for such representative who
Cshall attend meetings in the event that the appointed representative is unable to
attend and who shall, as in alternate, have the same rights as the representative so
a-ppointed.
2. OFFICERS Thc: Board of Directors shall elect from its memhership a
Present and Vice: President in accordance to the provisions of the Byla\Ls.
The: Bo::rd of Directors shall appoint a Secretary,7reasurer v.-ho is not
rcc:uircd to he ;t n .lather of the Board of Directors.
POWERS The pocc•ers of the Board shall be all o; the powers of the
Autilo, It\ not spCcltic;tilC reserved to the 1'tember Agencies by this Agreem?:r�:
aIlld ilia\' Ir1Ci.LLIC. .Illi not he limited to. Article II of' said At_,reement and tiiC
C` A. ApprOV it of Insuranc: Covera_cs.
B. Setting deposit premiums.
C. Approval of the annual Authority budget.
D. Election of officers.
E. Creation of Bylaws.
F. Approval of service providers. including but not limited to:
(I) Program Administrator/Broker
(2) Legal counsel
(;) Auditors
(4) Claim administrators
(5) Loss prevention consultants
G. DcicL:nte authority to officers as Provided for in the Byla%ks.
A I%`l'l CI.I•: IN
MEETINGS AND RECORDS
1. BOARD MEETINGS The Board shall hold at least one regular
mecting each fiscal year. The Board shall fix the date. hour and place at -
which each regular meeting is to be held. Special meetings may be called b%
the President or upon written request of at least one-third of the Board.
Notice of such special meetings shall be delivered personally or by mail to
each Board Member at least seven (7) days before such meeting.
Each meeting of the Board, including. without limitation, regular, adjourned regular
and special meetings, shall be called, noticed, held and conducted in accordance with
the Ralph M. Brown Act (Section 54950, et seq. of the Government Code).
2. RECORDS The President shall keep. or have kept, minutes of all
regular, adjourned, regular and special meetings of the Board. As soon as
i1t:%V?3.x.1'?I Ili Au"u.i '0. Iv.•,
possible after each meeting, a copy of the minutes shall be forwarded to each
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member of the Board. Minutes may not be kept of any closed sessions.
No business m'av he transacted by the Board without a quorum of its members beinL,
present. quorum shall consist of a majority of its members authorized
rrnresenCltives. A majority of the members present must vote in fa\.,or of a motion
to app rove it. rxcept as may otherwise be pro.-ided for in this Agreement.
Alternates sh:dl have all the power and authority of a designated representative.
Thr Board sh:,ll conduct its business in accordance with Roberts Rules of Ord"-,-.
ARTICLE S
BVI_ NN'S AND ADMINISTRATION POLICY AND PROCEDURES
The Board shall cause B}laws to be developed consistent with applicable law and
y-to-day operations of the Authoriry. Each Board
C ' this Agrremrnt, to govern the da
member shall rcceive a copy of the Bylaws and any administrative policies and
procedures developed under this article. The Board may adopt additional Bylaws
and approve administrative policy and procedures or chance emsting ones so lonLas
they shall be and remain consistent with both applicable law and with this
Agreement.
.ARTICLE XI
FISCAL YEAR
,The fiscal year of the Authority shall be the period beginning the first day of Juin of
each calendar year to and including the 30th day of June of the following year.
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ARTICLE X11
BUDGET
The Board shall adopt an annual budget prior to the beginning of each fiscal veer.
ARTICLE XIII
:VNNUAL .-1UI)I1'-AN'D-AU7P1'F REPORTS
The Board of Directors shall cause an annual financial audit to be made with
i1spec: to all rcceipts. disbursements, and other transactions by a Certified Public
Accountant Cx p�:rienced in and Hu:ilificd to conduct public agency audits. A rcreport�'
of such financial audit shall be filed as a public record with each of the 'Member
Sucli report shall he filed no Liter than required by All costs of
such financial audit shall he paid by the Authoritv and shall be charged against the
Nlembtr Agencies in the same manner Lis all other administrative costs.
ARTICLE XIV
ESTABLISHMENT AND ADMINISTRATION OF FUNDS
The Authority shall be responsible for the strict accountability of all funds and
reports of all receipts and disbursements. It will comply with all provisions of law
relating to the subject, particularly Section 6505 of the California Government Code.
The Treasurer shall receive, invest and disburse funds only in accordance with the
procedures established by the Board of Directors, the Byla�k-s, and in conformity
applicable law.
August
ARTICLE XV
DEPOSITS
The deposit for each Member Acencv for each Program in which they participate
sh;!ll he •cdculaicd and paid in accordance:e with the BYlLaws and Administrative Police
and
ARTICLE XVI
PROGRAMS
Tin•_- covcr;!,_,e(s) provided b% the Auihorit%- shall be as specified in the Nlemoran.Ja
of Covcmoc and 'o.- insurance policies. Each Nlemher Entity shall have the ability to
in %ehich ProLmms it will par-kicinatt.
ARTICLE XV11
N'TWAlEMBFIRS
Prospective Members may apply for participation in the Authority in accordance
with, and as stated in the Bylaws.
A two-thirds majority vote of the cities participating in a Program shall be required
for admission to any Program subject to ratification by m,o-thirds majority vote of
the entire Board of Directors of the Authoeirv.
ARTICLE WIII
NNrITI I DRAWA I.
Any %Icm,ber Avc:ncy of the Authority who has been a member for at least thrCC
full fiscal years may withdraw from one or any Program in k-hich it participates.
The w'ithdr+w;+I ttuctivc oniv at the end of a fiscal scar. The withdmwki_
Member Aeency must notify the Authority in writing at least ninety (90) days prior
to the gild of the fiscal yCar ftit It will withdraw' from a Proizmnl.
Atter with&aw;il, the withdrawing member shall continue to be responsible for ani
iinnncl'll obho!!iotl incurred try rL:'Is )n of losses occurring prior to the effective chic
o: an Cntity w'liildi;tw';11.
ARTICLE \I\
EXPULSION
The Authority may expel an} N•lember Agency. with or without cause. as a
participant in ari pro(-Yram or as a member of the Authority by atwo-thirds vote of
the Board.
ARTICLE XX
EFFECT OF N%'ITHDRA«'AL OR EXPULSION
The withdrawal or expulsion of any Member Agency after the inception of its
participation in .arty program shall not terminate its responsibility to:
'7)
j
I. Cooperate fully with the Authority in determining the cause of losses
Uand in the settlement of claims, as defined in the coverage agreement;
?. Pay any adjustments determined by the Board to be due and payable
for each program.year in which it participated;
i. Provide the Authority with such statistical and hiss experience data ane!
other information as may he necessary for tic Authority to carry out the:
purposCs of this Agreement: and
4. Cooperate with and assist the AuthUrit%'. Liny insurer, claims adjuster of
ICgal counsel retained by the Authority. in all maitCrs relating to this
.A'_rCCment.
ARTICLE XXI
TERMINATION ASD DISTRIBUTION
The Programs provided for by this Agreement may be terminated when the Board
so determines that the withdrawal of a sufficient number of members makes it no
Ionizer feasible to continue as a Joint Powers Authority. and that the public interest
is no longer served. However, this Aareement and the Authority shall continue to
exist for the purpose of disposing of all claims, distribution of assets and all other
functions necessary to conclude the affairs of the Authoritv.
Upon termination of all Programs provided for under this agreement and the
settlement of all liabilities and claims, including incurred but not reported claims. all
property of the Authority shall he divided among the entities in a ratio equal to
their equity in each Program in Which they participate. The Board shall determine
such distribution Within six months after the last pending claim or loss covered by
this Agreement has heen tinally resolved.
The Board is vested With all powers of the Authority for the purpose of concludin_
and dissolving thc: husincss affairs of the Authoritv.
ARTICLE \XII
NOTICES
Notices to Mcmher under this A_rcement shall be sufficiCnt if'mellCd to
thClr respcctivC avt!LC>J.ti on ill. -,viol the ,-\uthority. Notices to the Authority sh::ll
f?C SUfIICICni it Iil::'1CG zo Ing addrCss of the Authority as ContatnCd In Tile BVL,1%c's.
1 .�
ARTICLE XXILI
PROHIBITION AGAINST ASSIGNMENT
No Member A*encv may assign anv right, claim or interest it may have under this
Agreement, and no creditor, assignee or third party beneficiary of any Member
Agency shall have any right, claim or title to any part, share, interest, fund. premium
or asset of the Authority.
ARTICLE XXIV
C1
AM1tENDMENTS
This Agreement mac be amended by a two-thirds vote of the Member ALtcncies at
any regular or special meeting of the Board, provided that am amendntc rit is
compatible with fisc• purposes of this Aurccment and it has hcen submittc;d to the
Beard Memhers ;it Ic-ast sixty (60) days in. advance. Atm such amendment shall be
effecti�e•irnmediately upon two-thirds vote of the menihcr a!uc:ncies.
ARTICLE XXL'
SEVERABILITY
S;,,u:id anv portion, term. condition or provision of this Agreement he decided by a
court of competent jurisdiction to be illegal or in conflict with amlaic' of the State
of California, or be otherwise rendered unenforceable or ineffectual, the validit of
the remaining portions, terms, conditions and provisions shall not be affected
thereby.
ARTICLE X\NI
HOLD HARMLESS AND INDEMNIFICATION
Member Agencies agree and covenant to save free and hold harmless and indemnify
the Authority, other Member Agencies, their elected officers, employees and
volunteers for any claim, damage, or liability in connection with claims handling.
claims administration. retrospective adjustments, assessments. deposits, coverage,
error and omissions. and/or decisions to expel a Member Agency.
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ARTICLE XXVII
AGREEMENT COMPLETE
The foreeoin, constitutes the full and complete agreement of the parties. "I'hc:rc arc
no curl undersmndines or agreements hot set forth in .vriting herein.
ARTICLE XXVIII
EXECUTION OF COUNTERPARTS
I i?IS ;�_rCCi:1CI?t Iiia\• I?e exe�:uteci ill i1nv num!)er of counterparts, each of which
%%hen so executes shall he cfc;cmed to he an oricinal. but alto,ethcr shall constitute
ilii'.• 2nd dile Sr!ii1:: azrce: lent.
IN WITNESS WHEREOF. each of the parties hereto. by and through their
respective duh• authorized rCpresentatiue . hale executed this ,Agreement on the date
so indicate.
DATED:
CITY OF:
BY:
Nfavor
BY:
City Clea
e-3•�2
RYI.AWS
of the
CENTR-M. COAST CITIES SELF INSURANCE FUND
Pu-su;!nt it) tlwiz ceriain ai-,rccnlent entitled .Joint Excrcisc Ui i'O\\:;rJ :`�rCCtllCiit i:�:
the Centr;ll Coast Cities 5Cf Lnsur::nce Fund" dated 19w ;t;l'!
effective 1959 these Bylaws have been adopted for the
rC,u!:cion of said
ARTICLE I
DEFINITIONS
he terms in then; Byil;twsn;tii he as defined in the ALreen :nt creatlnu the
Coast Cltles JCI'. I:INLMinl.c 171.1111J. unless otherwise specified ilercin.
C, ARTICLE II
OFFICES
The principal executive office for the transaction of husiness of the :authority is
hereb\ feed and located at:
Cit\• of San Luis Obispo
c/o Finance Director
P.O. Box SIM
San Luis Obispo, CA 9:403-3100
The Board shall have the authority to change the location of the principal executive
office from time-to-time. Arty such chane shall be noted in the Bvlaws. and this
section shall be amended to state the new location. Official notice shall compl, with
Section 530 1 of the California Government Code.
ARTICLE III
�tEEi'1ti(;S
In addition to a required annual meeting as called for in the Joint Exercise of
Powycrs Acreement, the Board shall meet on an as needed hasis as determined h\
th, lio:ird.
Ofticittl minutes of the Board meeting shall he kept by the Authority at its princip d
cxeeutivc office.
ARTICLE. IV
ELECTION 01: PRESIDE\T ANI) 'ICF: PF:F:SII)ENT
Tiie Board of Directors shall elect the President and Vice President from among t17-
Bil::rd me-mh,is. Elc:ci!on of President and Vice President and conditions of Utf c
1. A nominating committee shall h. appointed b% the Presider- to
recummcnd a slate of ofticcrs. In adu�itio;,. ary Bwrd nrcntbcr max
another Buard member fo an ofticc.
Each Board memher .shall cast one vote for the candidate of
choice for each office.
:. Ali terms of office shall be for one year. The officers shall begin
scn,in_ terms at the he`_innin_ of the calendar year immediately followin_ the
election. The terms of office shall end on December 31 of each year.
4. Elections shall be held whenever there is an office vacancy.
5. President and Vice President shall hold their positions as individuals
and not merely as a representative of a Member Agency.
ARTICLE V
DUTIES OF OFFICERS
PRESIDENT. The duties of the President shall be:
1. to preside at all meetings of the Board of Directors and the Executive
Committee.
to si`,n cont-: cts on hchalt of the Joint Powcrs Awhorit�.
3. to enter into insurance agreements on hchalf of the Joint Pcn.crs
Authority within the parameters as granted by the Board.
4. to prepare the meeting agendas.
5. to direct the Program Administrator.
(i. zo taCllk;,tc and cnSurc the preparation of minutes Ui the nlc::tlf1L,�
reef aired.
7. to perfl)i m such other duties as the Board may specify.
VICE PRESIDENT. The duties of the Vice President shall he to act as the
President in the absence of the President and to perform such ocher duties as the
The duties o the Secrc:tt,n',"hreasurer shall be:
1. to have Custodiv and main-Len mcg of the Authorit\' s records and
docunients.
?. to maintain all accounting and other fin:lncial records in accordance
with accepted financial accounting practices.
3. to file: all financial reports required of the Authority.
4. to perform the functions of controller and to have the duties specific.)
in Section 650-.5 of' the Government Code.
�. to make payments pursuant to previously authorized contracts which
are .vithin budget limits.
6. to collect and process all Conflict of Interest statements and records in
compliance with State requirements.
The Secretan•/Treasurer shall furnish a fidelity bond in a minimum amount of One
Hundred Thousand Dollars ($100,000) conditioned upon the performance of the
duties herein prescribed. The amount of the bond shall he determined from
time-to-time by the Board. Any premiums for such bond shall be a proper char,-,c
against the: Authority.
C� -
f � 1
ARTICLE VI -�
C0111MITTEES AND DUTIES
EXE=CUTIVE. COMMITTEE. The Executive Committee shall be comprised of the
President, Vice President, immediate Past President and SecretaryrFreasurer. The:
Sccret::rti•/Treasurer shall he a non-voting member. The Executive Committee shall
ovcrsee thc_ day-to-day management of the Authority'. For Purposes of conductin-_
such husiness. the Executive Committee has powers as may be provided for by iht :
Board. Thr i:xccutie•c Comnllttte shall provide reports to the Board as rc:yui%d.
SAFETY COMMIT-l-EE. Each member city shall appoint a represcntatiy:: to the
Authority's S::fery Committee which shall meet refularly to plan. coordinate and
tiiltllCiilCnl P:O_"::fii> Instrumental In rcducin!, loss.
ARTICLE VLI
BUDGF'T
-lit. Authority s}l::!! annually adopt an operating budget pursu::nt to Article X11 o:
the Joint Exercise of Poyyers Aereement. which shall include a separate bud e: ic)-
each Pmt*Tara. The preliminary budget shall be submitted to all members no
tji:+rl .;pril 15 ut each year, and a final hud,.jet shall be completed no later :pan
J unc 1� ut Baca
The budget shall provide for:
Reyenu::
Administrative Expenses
Incurred Losses
Insurance Expense
Loss Control Program Expense
ARTICLE VI11
DISBURSEMENT AND MANAGEMENT OF FUNDS
The disbursement and management of funds of the Authorityshall t-ic in accurdancr
with the followin_:
1. The Treasurer's Office shall have sole authority to withdraw tunds fiun:
the Local Auencies Investment Fund (LAIF) in accordance %with policy' and
procedures adopicd by the city in which the Joint Yocyers A_ency funds arc
manaLcd.
2. The Treasurer shall have authority to transfer funds from reserves to
offset hudget overruns of other hudgCt line items.
Authority rnav he granted to the Claims Administrators to issue
warrants from a trust account in amounts so specified by the Board for
purposes of claims administration or settlement.
:�RTICI,F. ix
lN\,ES"T:NIF NT OF FUNDS
The Treasurer shill invest surplus funds from each Program in accordance with ih::
In•estmen; Policy ;adopted by the Board of DlrcctoFs.
The Treasurer shall submit to the Burd of Directors no less than annually, a report
of investments. The rcrort shall include. hat not be limited w. a list of investmen7N
COMprltilni the .A!Ithoritys portfolio, rates of interest, and annual yield on
ARTICLE
SF_7FFl.EMl:\-*F OF. CLAINTS
� Each member of a Pm,_,ram shall _rant to tile Proaram's Claims administrator
discretionary settlement authoritv in an amount determined b% the lkletnber Agency.
All settlements in excess of the settlement authority of the Claims Administrator
shall require approval from each Member Agency in accordance with the pro\.isions
of the entin,'s Municipal Code or procedure.
ARTICLE \I
LIABILITN' PROGRAM
1. PROGRAM STRUCTURE. The Auto and General Liability Program shall
consist of a deductible, a self-insured retention layer (pool), and purchased excess
insurance in an amount determined annually by the Board of Directors. Each
Member Aeencv shall determine the amount of their deductible, but in no case ma\'
it be less than S1,000 for each occurrence insured against.
�. COVERAGE. The coverage provided in all lavers ot.the program shall he
the same as th:u of the coverage provided in the excess insurince policy.
I i :7Su71'01 SI
�3-�i
;. PLAN FUNDING. The Liability Program shall be funded annually by each
Member A�ency contributing a Deposit based on funding formulas established by
the Board of [directors. There shall be three cost components that are funded by
the Deposit. They are: (1) the loss reserve fund, (2) the excess insurance premium.
and (3) administrative costs. The Deposit shall be sufficient to cover the Rudec:t for
each Proc-rtm Year of the Program.
4.
RETAINED RISK. For coverage pros�ded, the Authority is responsible for
c0%c:r;1LC of risks in the self-insured retention laver (pool) o,.:er ;ind above the
deijilCtlhle appiicabic to the Member Agency.
DEDUCTIBLE RECOVERY. Each Member Acency is responsible for a
died Uctihi : under the Procram for losses that nCCtlr. Loss is defined as paid clalins.
;,djustin, costs. and le_al expense. Repayment is made to the Authority for the
deductible after the claim is paid by the Authority. When a claim is paid and
closed. or i,;n•ment on an open claim reaches S1,000. the Claims Administrator shall
Nil C,:i11 Mc nibcr ALcncv. P ivnlents shall be made to the Authority's Treasurer.
0. PFFUND PLAN. .A Memher Agency in the Program three complete fiscal
years. reflCctin, ;i positive "Fund Balance:" may be eligible for a percentage refund o
iiieir "Fund Balance" if such a refund is declared by the Board of Directors.
In the Refund Plan calculation, the "Fund Balance" represents the amount of funds
remainino in a Member Aa-ncv's account after allowing for reserves. an IBNR
(Incurred But Not Reported) reserve, and inflation factors.
ARTICLE X11
WORKERS* COMPENSATION PROGRAM
1. PROGRAM STRUCTURE. The Workers' Compensation Program shall
consist of a self-insured retention laver (pool), and purchased excess insurance in an
amount determined annually by the Board of Directors.
2. COVERAGE. The coverage provided shall be those statutory Workers'
Compensation benefits prescribed by California State law•, and for Emplo}'ers
Liability.
3. PLAN FUNDING. The Workers' Compensation Program shall he funded
annually ny each Member Agency contributing a Deposit based on funding formulas
established by the Board of Directors. There shall he three cost components funded
by the Deposit. The components are: (1) the loss reserve fund, (2) the excess
�! insurance premium, and (3) administrative costs. The Deposit shall be sufficient to
cover the Budget for each Program Year of the Program.
RETAINED RISK.. The Authority is responsible for coverage of those Stag.
mandated «Vorkers' Compensation and Employers Liability benefits in the
self-insured retention layer (pool) of the Program.
�. REFUND PLAN. A ,Iemher Agency in the Program three complete fisc;d
years. reflecting a positive "Fund Balance" may be eligible for a percentage refund of
their "Fund Balance" if such a refund is declared by the Board of Directors. The
"Fund Balance" represents the amount of funds remaininc, in a Member Agencv's
account after allowing for reserves, an IBNR (Incurred But Not Reported) reserve.
and inflation factors.
ARTICLE XIII
\EN1'IENI-BERS
city �yithin the Counties of San Luis Obispo.. Santa Barbara or Ventura may .
for admission to the Joint Po%vers Authority for participation in any or .all
C Pro_ranls. The Board of Directors, shall vote on the city's application for admission
after evaluating past loss experience, financial status, other risk management
considerations. and compatibility with the objecti%es of the Authority.
A tyo-thirds majority vote of the .Member Agencies participating in a Program shah
be required for admission to the Program subject to ratitication by two-thirds
majority vote of the entire Board of Directors of the. Authorit.
.ARTICLE XIV
AIN IEND AIENTS
These Bylaws may be amended by a majority of the Board provided that any
amendment is compatible with the purposes of the Authority, is not in conflict with
the Agreement and has been submitted to the Board at least 30 days in advance.
Any such amendment shall be effective immediately, unless otherwise designated.
�l
I; 73•).is 1.7