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RESOLUTION NO. 78-59
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF UKIAH APPROVING THE FIRST AMENDMENT TO
THE JOINT POWERS AGREEMENT ESTABLISHING
THE REDWOOD EMPIRE WORKER'S COMPENSATION
FUND NOW KNOWN AS THE REDWOOD EMPIRE MUNICIPAL
INSURANCE FUND
WHEREAS, the City of Ukiah is a participant in the Redwood
Worker's Compensation Fund, and
WHEREAS, our participation in this fund has resulted in
savings to the City over the past two years of several hundred
thousand dollars, and
WHEREAS, the member cities of the fund have proposed to
expand the duties of the fund to include the provision of
liability insurance, and
WHEREAS, a revised Joint Powers Agreement has been prepared
to make possible the expansion of the fund into the liability
area, and
WHEREAS, the City Council's representative on the Redwood
Empire Fund has recommended that Ukiah consent to the amendment
of the Joint Powers Agreement,
NOW, THEREFORE BE IT RESOLVED that the first amendment to
the Joint Powers Agreement establishing a Redwood Empire Worker's
Compensation Fund as hereto and made a part hereof is hereby
approved and the Mayor and Clerk are authorized to sign same
on behalf of the City.
PASSED AND ADOPTED this 18th day of January , 1978,
by the following roll call vote:
AYES: Councilmen Brannon, Wood, Peibusch, Councilwoman ~nvder
Mayor Simpson -- '
NOES: None
ABSENT: None
ATTEST:
City Clerk
FIRST AMEND~.~ENT TO
JOINT POWERS AGREEMENT
ESTABLISHING THE REDWOOD E~.IPIRE
WORKER'S COMPENSATION FUND
(Now knoWn as the RedwOod Empire
Municipal I,nsnrance Fund)
The parties to this Agreement are the Cities of Cloverdale,
Cotati, Healdsburq, Rohnert Park, Sebastopol, Sonoma and Ukiah,
municipal corporations under the Constitution and Laws of the State
of California; the parties have previously entered 'into an agreement
dated May 26, 1976 entitled "Joint Powers Aqreement Establishing
the Redwood Empire Worker's Compensation Fund".
~Except as amended by this ~Agreement, the provisions of the
Joint Powers Agreement dated ~4ay 26, 1976, between the parties, shall
remain in full force and effect.
The parties acknowledge that in November, 1976, they
authorized the firm of Warren, McVeigh, Griffin & Huntington of
San Francisco, California to conduct a study of the. risk management
and insurance functions of the several parties, and that under date
of August 1977 they.have received a written report entitled "Cities
of Sonoma and Mendocino Coun'ties Joint Risk Managemen~ Pooling Study"
which contains reco~nendations for collective insurance buying, loss
pooling and risk mahagement among the parties. The purpose of this
·
amendatory agreem~ht is to broaden the aut}~ority of the joint
powers agency created by the agreement of May 26, 1976 in order to
provide for the procurement of insurance, pooling of losses, and
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execution of risk management functions for all insurable losses, 'in
addition to workers' compensation benefits, including but not limited
to public liability and hazard insurance.
Now therefore, the partie~ agree as follows:
.
1. The name of the joint powers agency created by the
~greement of May 26, 1976 is changed to REDWOOD EMPIRE MUNICIPAL
,
INSURANCE FUND.
2. The duties, power and responsibility of the Fund set
,
forth in Section III of the agreement of May 26, 1976, are augmented,
and henceforth the~Fund shall have the power and the responsibility
to provide to each and ever3 one of its members a system for the~pool'ing
of losses, on a self-insurance basis, the various risks against which
the members normally carry insurance, in amounts in excess of indivi-
dually' selected deductibles to and including jointly selected maximums,
with provision for bulk purchases by the Fund of a policy or policies
written.by admitted insurance companies to cover every ~conceivable
kind of risk and hazard, acting as an agent of the members for this
purpose; the Fund ~shall have the power and duty to receive an~ admini-
ster monies in a central loss fund to pay the cost of the self-insured
~portions of losses insured against and in the administration of losses
to receive, process and pay claims, to institute and carry out programs
for loss prevention.,, and generally to provide risk management functions
for all of the participants. The Fund sha~l have the power to do all
things reasonable, .necessary and convenient to make effective among
its members, and.for their benefit, the recommendations of the Warren,
,
McVeigh, Griffin and ~{untington report of August 1977 in the manner
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therein.
3. In discharging its responsibilities under this
amendment the Fund may in its discretion Perform%he·following
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functions:
(a) assist cities in° developing their risk management
statements;
(b) participate ·in ~cities safety advisory committees;
(c) provide loss prevention, safety and security advice;
(d) provide claims management services for non-insured
risks and for high deductibles;.·
(e) provide claims recovery and subrogation services
to investigate, pursue and collect for'damages
caused by acts of others;
(f) negotiate and purchase excess insurance policies;
(g) assist in providing rehabilitation services under
workers' compensation to reduce industrial disability
retirement liabilities;
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(h) establish actuarial services to distribute~costs and
generate revenues equitably;
(i) ~provide loss analysis control by use of Statistical
analysis, data processing, record and file keeping
services. The purpose of this information is~ to
identify high exposure operations and to evaluate
proper levels of self retention and deductibles;
(j) assist in maintaining proper building and contents
values by location;
(k) 'conduct risk management audits to review the partici-
pation of each city in the program. The audit team
shall, be_ comprised of the risk manager and two Other
persons selected by the board;
(1) select legal counsel;
(m) perform· other functions as required by the board
for the purpose of accomplishing the goals of this
agreement. . ,
4. In addition to the duties and r.esponsibilities
of the parties provided by the agreement of. May 26, 1976, each
party hereto has individual responsibility to:
(a) appoint its representative and alternate to
the Fund board;
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(b) adopt a risk management statement;.~
(c) maintain an active safety committee;
~(d) report to the risk management administration
during the development stages 'the addition of
new programs or the significant reduction or
expansion of existing programs;
provide the Fund with information on 'the values
of buildings and contents; '
(f) cooperate fully with the Fund in determining the
cause of losses and in the settlement of losses;
(g) comply with risk management requirements establish-
ed by the Fund pursuant to this agreement;
(h)
to participate in coverage of ]o ~
premiums in the m ~.. soes and to pa~' ~
McVeigh, Griff~ ~e~ s?~ f?rth in the Warren
~ ~u lJuntlngton r
as stated between na~e~ ~ ...... eport, part~cular~
~s no De treated as a ~u{~~['~ un? sald report
-~ ~u~mne, and that' the Fund
shall have the power and responsibility to 'depart
from strict adherence to the terms of the said report
in cases of necessity, business exigency, or in the
exercise of prudent business judgment. The premix]ms
charged to the members may include the le~ of
additional premix, in reasonable .amounts, to any
member which refuses to participate in loss'prevention
or safety programs adopted in writing by the Fund
after consultation with the members, or which violates
the express mandates of any such loss prevention or
safety program; or, the Fund may provide premium
discounts for members which participate faithfully
and effectively in loss prevention and safety prog?ams
- - -.. all the foregoing in consideration of increased
or decreased risk resulting from non-compliance.or
compliance with loss prevention and safetY programs
and mandates.
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5. It is understood and agreed thak if public liability
c0¥erage ~$ ~n~t~a]]y rated by a sing]e, c0mp0$~te rate ~applied to the annual
operating budgets of the members, as r. ecommended in the Warren,
McVeigh, Griffin & Huntington report, the system of debits and credits
which, shall be developed with .regard to exposure or non-exposure
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of certain risks shall include, but not be limited to, considerations
of credit in cases where operating budgets are inflated by large
v~°lume purchasesj of commodities or supplies aCquired for sale or
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delivery to the public in proprietary activities of 'the members,
such as in the distribution of electrical energy, water or other
matter in the nature of public utitilies or public service.
6.. It is contemplated that the Fund will select a
risk management administrator to provide risk management administra-
t/on services at the earliest practicable time after execution of
this Agreement, and that the funding of this Agreement shall provide
for the ful'l-time serviCes of a risk management administrator, it
being the intention of the parties to emphasize the reduction and
prevention of losses and the coverage of risks at the lo~{est possible
costs. The decision to hire or contract for such services shall be
made by the Board, .and is not mandatory upon the Board.
7. This agreement shall be in ~full force and effect on
and after the date of_its execution by the sig'nature of all of the
parties. Each signature shall be dated. The secretary of the
Fund shall file a copy of ti]is agreement in the Office of. the Secretary
of State within, thirty days after such execution, to comply with Section
6503.5 of the Government Code of Cal.ifornia.
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8. The augmented activities, of the. Fund, pursuant to
this amendment, shall be funded initially by a deposit of a sum of
~money by each party hereto, the amounts of Which are based upon
appendix D-1 of the Warren, McVeigh, Griffin & Huntington report,
including .the a~ssumptions made in th~e fOotnotes thereto, but in
no event' shall any member be required to contribute more, in
return for the contemplated coverage, than the amounts set forth
opposite it's name in the following schedule:
City of Cloverdale
'City of Cotati
City of Healdsburg
,
City of Rohnert Park
City of Sebastopol.
City of Sonoma
City of Ukiah
$17,433.
21~003
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36,062
61,566'
~65,227
~6,123
88,438
9. NotWithstanding any provision of paragraph ~X of
·
the agreement of May 26,~ 1976, to .the cOntrary, the Board shall
have the.power and authOrity to fix the limits for procurement of
excess insurance.
10. Notwithstanding any provision of paragraph XII of
the agreement of May 26, 1976, to the contrary, the Fund may distribute
assets to a withdrawn member if adequate provision is made by that
member to secure the Fund against the payment.of any outstanding
or threatened Claims_against the withdrawn member. .
IN WITNESS.WHEREOF, the parties have executed this
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agreement by their duly authorized of£icers.
ATTEST:
ATTEST:
CITY OF CLOV~,RDALE
By:
CItY OF COTATI
By:
ATTEST:
CITY OF ]IEALDSBURG
By:
ATTEST:
CITY O'F ROHNERT pARK
By:
ATTEST:
CITY OF' SEBASTOPOL
By:
ATTEST:
CITY OF SONOMA
By:
ATTEST:
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