HomeMy WebLinkAbout1981-01-03; City Council; 6785; Joint powers agreementtm>CITTOF CARLSBAD — AGENDJIlLL
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MTR 11-3-81
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TITLE: PROPOSED JOINT POWER AGREEMENT FOR
RISK MANAGEMENT AND RELATED INSUR-
ANCE COVERAGE .
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RECOMMENDED ACTION:
Adopt Resolution No.
ITEM EXPLANATION:
approving the JPA.
The City-County Managers Association (CCMA) is proposing the establish-
ment of a joint powers agreement (JPA) to provide for the joint purchase
of excess liability insurance for JPA members. Similar jPA'.s exist
throughout the state and many cities have saved money by participation
in such programs. The cities of Chula Vista, Del Mar, El Cajon, La
Mesa^i Lemon Grove, Oceanside, National City, and Vista have already
approved participation in the JPA.
The proposed JPA would provide for the joint purchase of excess
liability insurance. An individual city would be able to determine
the amount of insurance it wanted. However, through joint purchasing
the cost of the insurance should be reduced. A city could choose to
buy insurance through the JPA or directly, whichever would provide
the ^gi?^a-teEi advantage. The establishment^of the JPA and the joint
marketing of insurance will not create a direct cost for.the City.
The costs of marketing insurance will be paid out of commissions.
If the needs of the JPA members change, the JPA can be amended to
provide additional services such as claims adjusting. Fees would be
assessed to the users of such services.
The formation of the JPA and the joint marketing of insurance may
save the City of .Carlsbad a significant amount on liability insurance
premiums. The decision on the better way to purchase insurance will
depend on the quotes obtained through the joint marketing program.
FISCAL IMPACT:
No direct cost to the City for formation and joint marketing of
insurance. The City may realize significant cost savings on the
purchase of liability insurance. . .
EXHIBITS:
Resolution No.
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. . . : RESOLUTION NO. 6711 -
A RESOLUTION OP THE,CITY COUNCIL OF THE . ;
. -. CITY OF CARLSBAD, CALIFORNIA APPROVING
: THE ESTABLISHMENT OF JOINT POWERS AGREE-
MENT TO PROVIDE RISK ;MANAGEMENT SERVICES. , ,
WHEREAS, the establishment of a joint powers agreement may •
benefit the City of Carlsbad in the administration of its risk
management program; and . ;
WHEREAS, the joint exercise of powers in the purchase of
liability insurance may result in significant cost savings.to the
City. '• . ' . . ' ' ' . • .". . • ' '. '"•'' '.. • ."-.'. .': , ' •"..•'.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the joint exercise of powers agreement
attached hereto as Exhibit A is hereby approved.
3. That the Mayor is authorized and directed to
sign said agreement on behalf of thev City.
•PASSED, APPROVED AND ADOPTED by the City Council of the City
of Carlsbad, California, at a Regular Meeting held on the. 3rd
day of'. November , 1981, by the. following vote, .to wit:
AYES: Council Members Packard, Gasler, Anear, Lewis and Kulchin
• - - ."''.• . .'•'•/'• .• '•
NOES: None • • ; : . :
ABSENT: None '. ' ' . .
RONALD C. PACKARD, Mayor
ATTEST:
fC K^Xj
ALETHA•L. RAUTENKRANZ, City Cletk
(SEAL)
.B
SAN DIEGO COUNTY CITIES
JOINT 'POWERS AGREEMENT FOR "
RISK MANAGEMENT AND
RELATED INSURANCE.COVERAGES
JOINT EXERCISE OF POVIERS . ' . '.,;.. '
This agreement is entered into pursuant to the provisions of Chapter 5
(beginning with Section 6500) of Division 7 of Title 1 of the Government .
Code authorizing specified , local public entities to exercise jointly the
power to provide risk management. These powers include providing for. in-
surance pursuant to the provisions of Chapter 3 (beginning with Section 989)
of Part 6 of Division 3.6 of Title 1 of the Government Code.
WHEREAS, the public interest requires and it is to the mutual
interest of the parties hereto to join together to purchase excess insurance,
'and
WHEREAS, each of the local public entities which is a party to . ' .
this agreement has the power to establish and operate a program of risk ' :
management and purchase excess insurance, and .•.'•*'
WHEREAS, Title 1, Division 7, Chapter 5 of the California Government
Code authorizes the joint exercise by two or more local public agencies of any
power which is common to each of them, and •
WHEREAS, each of the parties to the agreement desires to join
together with the other parties for the sole purpose of jointly purchasing
•excess insurance. . .-
• NOW,. THEREFORE, for and in consideration of the mutual advantage's to
be derived therefrom and in consideration of the execution of this 'agreement
by. other local public entities, each of the parties hereto -does agree as follows:
ARTICLE 1 - SEPARATE ENTITY - There is hereby created a separate "
public entity, the full legal name of which shall be "San Diego County Cities
Risk Management Authority" and may be referred to herein as the "Authority".
The Authority is a public entity separate from the parties to this agreement.
ARTICLE 2 - MANAGEMENT BOARD - 'The governing body of the Authority ' .
shall be the "Management Board" and may be referred to herein as the "Board". . "-,
Voting members of the Board will consist of one representative from each 'par- .
ticipating member agency. Each member shall be so. designated by appointment
by the member agency's governing board. Each representative will be a public
agency staff member. ' .
ARTICLE 3 - AUTHORITY POUERS - . ;. i •": . . .,'
(A) The Authority. shall only have the power to select a broker and jointly
purchase excess insurance. . . - •
(B) The Authority shall also have the power to enter into contracts for the
joint purchase of excess insurance, employ agents and employees, and to
sue and be sued in its own name. The foregoing powers are limited to
those services related to contracting for excess insurance.
(C) The debts, liabilities and obligations of the Authority shall not be the
debts, liabilities or obligations of the parties to the agreement.
(D) The Authority shall bo subject to and be governed by the Bylaws, once
. adopted by the Management Board.
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ARTICLE 4 - MEMBERS • . ' , ;. . •• . '..
(A) Each local public entity which is a party to this agreement is a "member
agency" of the Authority and is entitled to the rights,and privileges and , .,
' .-Is subject to the obligations of members, all as provided for in this .
agreement and any subsequent Bylaws. . • •
(B) Each member agency may at its sole election participate in the joint purchase
of excess coverage or in other risk management services offered by the
Authority as may be provided through subsequent amendments to this Joint
Powers Agreement. '. •
(C) After formation of the Authority by the initial membership group, new
members may be accepted upon application to the Authority and'upon
acceptance by the majority of member agencies and subject to acceptance
by the prospective member of any financial arrangements specified by the .
''-. then current members. ' . •
• • . . ARTICLE 5 - AUTHORITY FUNDS - The Treasurer of the Authority shall be".
the depository of the funds of the Authority to purchase excess insurance. The
Treasurer's selection, responsibilities, compensation and related matters shall
be governed by the Bylaws.' The Treasurer may also perform the functions of
-Auditor and Controller as governed by the Bylaws. . .
ARTICLE 6 - TERM OF AGREEMENT - This agreement shall continue in effect
so long as there are two or more member cities. .... ';-.
ARTICLE 7 - TERMINATION OF.MEMBERSHIP - A member agency may terminate '
-its membership in the San Diego County Risk Management Authority by notifying the ;
Management Board at any time that they no longer wish to be a member agency of
the Authority; provided however such withdrawing member agency shall be responsible /.
'for any debts or obligations incurred by that member agency during said period
of.membership. . . . . . •
' • ARTICLE 8 - ENFORCEMENT - The Authority shall have the right to enforce.
this agreement. If suit is brought by the Authority against any defaulting
member and the Authority prevails in the action, the defaulting party shall pay
reasonable attorneys' fees to the Authority as-adjudicated by the Court. . ;
ARTICLE 9 - INVALIDITY - Should any portion, term, condition or pro-
vision of this agreement be determined by a Court of competent jurisdiction to
be illegal and in conflict with any law of the State of California or be otherwise
rendered unenforceable or ineffectual, the validity of the remaining portion, terms,.,
.conditions and provisions shall not be affected thereby. : ••••'. ,
- ARTICLE 10 - AMENDMENTS - No amendments to this agreement shall be
effective unless authorized by a.majority of the governing bodies of the members
to. this agreement. . . . " - .''
' ARTICLE 11 - PROHIBITION AGAINST ASSIGNMENT - No member agency may •'... ''
assign any right, claim or interest it may have under this agreement and no
creditor, assignee, or third party beneficiary of any member shall have any right,
claim or title to any part, share, interest, fund, premium or asset of the .
Authority. . . • • -,
- ' - ARTICLE 12 - AGREEMENT COMPLETE - The foregoing constitutes the full ;
and complete agreement of .the parties^There are no oral understandings or
agreements not set forth in writing herein or in the Bylaws.
. ARTICLE 13 - DATE AGREEMENT EFFECTIVE - This agreement shall become
effective immediately after it has been adopted by at least two cities.
EXECUTED BY THE UNDERSIGNED LOCAL PUBLIC ENTITIES UPON THE RESPECTIVE DATE SET
FORTH AFIER THE SIGNATURES OF THEIR DULY AUTHORIZED OFFICERS:
(Tity of^Carlsbad
10/27/01
City of Chula Vista Date
"CTty o f Co ro n a'cfiT •Date"
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City of Del Mar Date
City of El Cajon Date
City of tscondido Date
'City of La Mesa Date
City of Lemon Grove Date
City of National City Date
City of Oceanside Date
City of Poway Date
City of Santee Date
City of Vista Date