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HomeMy WebLinkAboutReso. 1988-355 - Approving and ratifying amendments to articles iv, xviii, and xix of the joint powers agreements Ill i RESOLUTION NO. g " A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND RATIFYING AMENDMENTS TO ARTICLES IV, XVIII , AND XIX OF THE JOINT POWERS AGREEMENT CREATING THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAME. WHEREAS, the City of Redding, by Resolution No. 86-331 , approved and executed the Joint Powers Agreement Creating the California Joint Powers Authority, and is a member thereof; and WHEREAS , the Board of Directors of the California Joint Powers Insurance Authority met and approved a proposal to amend Articles IV, XVIII and XIX of said Agreement, which amendments are set forth in Exhibit "A" attached hereto and incorporated herein by reference; and WHEREAS , the City of Redding is in accord with said amend- ments; finds them to be compatible with the general purposes of the entire agreement; and finds that they should be adopted; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves and ratifies the action taken by other members to make such amendments effective, and hereby adopts such amendments. 2 . That the City Manager of the City of Redding is hereby authorized and directed to sign any further instrument constituting an amendment of the Agreement, or the entire Agreement as amended, or other appropriate form of instrument tendered for signature and filing to make effective the provisions of Articles IV, XVIII , and XIX of the Joint Powers Agreement as amended in Exhibit "A" attached hereto and incorporated herein. 3 . That the City Clerk is hereby authorized and directed to attest the signature of the City Manager and to impress the official seal of the City of Redding on the aforesaid documentation, when appropriate. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 4th day of October , 1988 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL NUMBERS: Buffum, Carter, Dahl, Fulton, & ,b hannessen NOES: COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS : None ✓ s '' 7 K /MAURICEJOHANNESSEN, Mayor City of Redding ATTEST: 2 ETHEL A. NICHOLS, City Clerk FORM PPROVED: ige.e441/ /(17a-- RANDALL A. HAYS , City Attorney -2- • • EXHIBIT "A" TO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND RATIFYING AMENDMENTS TO ARTICLES IV, XVIII , AND XIX OF THE JOINT POWERS AGREEMENT CREATING THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAME. "ARTICLE IV PARTIES TO AGREEMENT Each party of this Agreement certifies that it intends to, and does contract with, all other parties who are signatories of this Agreement and, in addition, with such other parties as may later be added as parties to, and signatories of, this Agreement pursuant to ARTICLE XVIII. Each party to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to ARTICLE XIX or XX, shall not affect this Agreement nor the remaining parties' intent to contract as described above with the other parties to the Agreement then remaining. Each party to this Agreement must, at all times, participate in at least one pooled self-insurance layer of the Auto and General Liability Program as defined in Article XI of the ByLaws. " • . "ARTICLE XVIII NEW MEMBERS The Board shall review all new member applications and determine which entities shall be accepted for participation in each layer of each of the Authority's Programs, except when rejected by one third or more of the Member Entities in any layer of any Program in which the prospective member applies to participate. Entities entering under this Article shall be required to pay their share of organizational expenses as determined by the Board, including those necessary to analyze their loss data and determine their premiums. " "ARTICLE XIX WITHDRAWAL A. A Member Entity which enters any Pooled Coverage Program or any layer thereof shall not withdraw from that Program or any layer or as a party to this Agreement for a three-year period commencing with its entrance into said Program. B. At the conclusion of the initial three-year noncancellable commitment to any Pooled Coverage Program or any S . • layer(s) of a Pooled Coverage Program, a Member Entity shall continue to participate with successive two-year noncancellable commitments until such time as withdrawal , pursuant to Section C, is effected. C. After the initial three-year noncancellable commitment to any layer(s) of a Pooled Coverage Program a Member Entity may withdraw from said layer(s) only at the end of said Pooled Coverage Program' s Program Year, provided it has given the Authority a six-month written notice of its intent to withdraw from said layer(s) , and further provided that the proposed withdrawal date coincides with the end of the Member Entity' s current noncancellable commitment. A Member Entity may withdraw from a Pooled Coverage Program only upon its withdrawal from all layers of such Pooled Coverage Program. D. Any Member Entity which withdraws as a participant of any Program pursuant to Section C. of this ARTICLE shall not be reconsidered for three years from the Member Entity' s withdrawal. E. Notwithstanding any provision herein to the contrary no Member may withdraw from the Liability program entirely and remain a Member of the Authority. " Said proposed amendments have been approved for submission to the membership by action of the Board of Directors at its regular meetings of August 18, 1988 and September 13 & 14 , 1988 . In accordance with Article XXV of the Joint Powers Agreement, an affirmative vote of 90% of the Member Entities is required to • • approve the amendments, which would become effective immediately upon approval. Please prepare a Resolution of your governing board which is substantially in conformance with the attached exemplar. If your format differs from the exemplar feel free to follow your format, so long as the substance of the exemplar is included in your resolution. The proposed amendments are intended to clarify two specific parts of the JPA Agreement. Amendment of Articles IV and XVIII and Section E of Article XIX strengthen the intention of the Member Entities that participation in the Auto and General Liability Programs is a prerequisite to continued membership in the organization. The changes to Sections B and C of Article XIX state the requirement of consecutive two-year commitments of the Member Entities to the organization and to their pooled coverage layers , following the initial three-year non-cancellable commitment. If your governing board does not approve all three proposed amendments, please include in your Resolution those proposed amendments which are approved. The approved Articles must be included verbatim in the Resolution without additional amendment. If a Resolution of your governing board cannot be obtained and submitted at the Special Meeting of the Member Entities on October 20, 1988 please notify the General Manager. Rejection of the proposed amendment by a Member Entity may be accomplished by not adopting a resolution of approval. A resolution of rejection is not needed.