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September 11. 2000
STAFF REPORT
TO: Mayor Campbell and Members of the City Council
THRU: Don McIntyre, Interim City Manager
FROM: Pamela Arends -King, Director of Administrative Services /Treasurer
SUBJECT: AMENDMENT OF JOINT POWERS AGREEMENT
ESTABLISHING THE ORANGE COUNTY CITIES
RISK MANAGEMENT AUTHORITY
SUMMARY OF REQUEST:
City Council to approve a resolution amending the Joint Powers Agreement Establishing
the Orange County Cities Risk Management Authority.
DISCUSSION:
Following a strategic planning session with city managers and several months of
discussion, the Board of Directors of the Orange County Cities Risk Management
Authority, approved changes in the joint powers agreement under which the Authority
operates. The amendment will become effective upon the approval of two - thirds of the
member cities.
The amendments to the OCCRMA joint powers agreement are based on a comprehensive
review of the JPA's procedures and practices, and a pre- accreditation review based on
California Joint Powers Agreement standards. The amendments to the joint powers
agreement are necessary to support the operational changes being pursued by the
Authority.
Three substantive amendment changes are proposed. First, the agreement delegates
additional responsibility for the ongoing management of the affairs of the Authority to
the existing Executive Committee. The full Board of Directors will retain responsibility
for annual budget approval, admission of new members, bylaw changes and final
determinations regarding coverage appeals. This change is recommended to make more
efficient use of staff and streamline operations. This form of governance is common
among JPAs.
Agenda Item k
SlaffReporf
Amendment of Joint Powers Agreement Establishing the Orange Count}, Cities Risk Management Authority
September l!. 2000
Page 2
Second, to facilitate offering an occurrence -form coverage contract, and in keeping with
changes in state law, the wind -up and dissolution provisions (Article 13) are revised to
adjust distribution based on contributions made and losses paid, along with interest
earned over the period of participation.
Third, Article 19 is revised to more fairly allocate potential liabilities, in the unlikely
event any arise out of the performance of the joint powers agreement. The agreement
requires the Authority to pay for its liabilities to the extent of its available assets and
allocates member obligations based on their contributions to OCCRMA, rather than
strictly pro rata.
Other changes are made in terminology and organization of the document. Attached is a
copy of the original joint powers agreement with the changes noted and a clean copy of
the joint powers agreement with the changes included.
FISCAL IMPACT:
The amendment changes to the joint powers agreement does not have a financial impact
on the General Fund, the Special Revenue Funds or the Enterprise Funds.
RECOMMENDATION:
Staff recommends the City Council approve the amendment changes to the joint powers
agreement establishing the Orange County Cities Risk Management Authority.
Pamela Arends -King
Director of Administrative Services /Treasurer
Don McIntyre
Interim City Manager
September 27, 2000
Ms. Janet Kiser, General Manager
Orange County Cities Risk
Management Authority
240 Newport Center Drive, Suite 210
Newport Beach, California 92660
Dear Ms. Kiser,
Forwarded is a certified copy of Resolution Number 4837
"Approving Amendment of the Joint Powers Agreement for the
Orange County Cities Risk Management Authority," adopted by
the Seal Beach City Council at their regular meeting of
September 11th, 2000. Forwarded also are two (2) copies of
the Joint Powers Agreement for OCCRMA also approved by the
City Council on September 11th.
Once the Agreement has been fully executed please return one
(1) copy for the City's records to my attention. Thank you.
Very truly yours,
Joanne M. Yeo, City Clerk
City of Seal Beach
Attach.