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HomeMy WebLinkAboutCC AG PKT 2010-08-09 #MAGENDA STAFF REPORT DATE: August 9, 2010 TO: Honorable Mayor and City Council THRU David N. Carmany, City Manager FROM: Jill R. Ingram, Assistant to the City Manager SUBJECT: CALIFORNIA INSURANCE POOL AUTHORITY ASSESSMENT SUMMARY OF REQUEST: That the City Council authorize Budget Amendment No. 11 -02 -01 (agenda item G) to appropriate funding to transfer funds from reserves to the general fund for payment of the California Insurance Pool Authority Assessment (CIPA). HISTORY: The City of Seal Beach became a member of the Orange County Cities Risk Management Authority ( OCCRMA) liability pool in 1987. In 2007 OCCRMA changed its name to the California Insurance Pool Authority (CIPA). On February 25, 2002, the City Council authorized City staff to initiate action to withdraw from OCCRMA and to submit an application to join the California Joint Powers Insurance Authority (CJPIA). Attached to this staff report as Attachment A is a copy of the February 25, 2002 Council agenda report. By becoming a member agency of the CJPIA, the City was able to realize cost savings for the annual cost of insurance coverage, eliminate the need to maintain self- insurance retention, and the requirement for a general fund reserve for the City's risks, as well as overhead expenses for claims administration and defense. The City of Seal Beach became a member of the California Joint Powers Insurance Authority (CJPIA) on July 1, 2002 for participation in the liability and workers' compensation programs. BACKGROUND: On July 12, 2010, the City Manager received notification from the CIPA General Manager, attached to this staff report as Attachment B, transmitting a copy of OCCRMA's Joint Powers Agreement (JPA), attached to this staff report as Attachment C. Article 13(a) of the JPA states that "A Member Agency may withdraw as a Member in accordance with this Agreement and the By -laws, Agenda Item M Page 2 provided that no withdrawing party shall be entitled to payment or return of any earned premium, contribution, consideration, or property paid or donated by the party to the Authority, or to any distribution of assets prior to final termination of this Agreement, except in connection with final termination of a program pursuant to subparagraph (b). The withdrawal or cancellation of any Member Agency shall not terminate its responsibility to contribute its share of premium or funds to any insurance program of CIPA or to cooperate with CIPA in the resolution of claims, until all claims or other unpaid liabilities covering the period the Member Agency was a participant have been finally resolved and a determination of the final amount of payments due by the Member Agency or credits for such period has been made by the Authority." In that regard, CIPA's assessment policy is designed to assess current and former members for program years in which insufficient contributions were collected from the members. A target portion of any deficit for each program year is then allocated back to all members that participated in that year. All current and withdrawn members are assessed on the same basis. Under the liability program, assessments may be charged on policy years that are older than eight years. CIPA's actuary has determined that assessments are due for calendar years 1996 -97 and 1998 -99 for unpaid liabilities, which are years that the City of Seal Beach participated in CIPA. In both of those years, there was a shortfall due to unpaid liabilities and therefore, all members of CIPA during that time are responsible for sharing that cost based upon overall losses to the pool. However, given that the City of Seal Beach did not sustain any claim losses during those two years, the City is only assessed 75% of its share of the overall pool losses. As of June 30, 2010, the total calculated assessment due from the City to CIPA is $87,022. CIPA's policy calls for collecting one -tenth of the assessment due each year, and therefore, the total due from the City of Seal Beach is currently $8,702. Each year the actuary will re- calculate the assessment due and revise accordingly; however, CIPA indicated that the actuary has reviewed remaining policy years until the City withdrew from CIPA, which was June 30, 2002, and the CIPA General Manager does not foresee any further re- calculated assessments. Assuming there are no further changes, the City will be invoiced $8,702 for this year, as well as each of the following nine years. Attached to this staff report as Attachment D is a copy of this year's assessment in the amount of $8,702, which is due on September 2, 1010. FISCAL IMPACT: The CIPA assessment is not budgeted in the FY 2010 -11 budget, and therefore, adoption of the attached resolution in Attachment D is required to authorize a budget amendment. The remaining nine assessments will be budgeted through the biannual budget process beginning in 2011 -12. Page 3 RECOMMENDATION: That the City Council authorize Budget Amendment No. 11 -02 -01 (agenda item G) to Appropriate Funding to Transfer Funds from Reserves to the General Fund for Payment of the California Insurance Pool Authority Assessment. SUBMITTED BY: NOTED AND APPROVED: II JAI . Ingram David N. Carm ny Assistant to the City anager City Manager Attachments: A. 2/25/02 Council Agenda Report B. 7/9/10 Letter from CIPA C. JPA for Orange County Cities Risk Management Authority D. CIPA Invoice ATTACHMENT "A" AGENDA REPORT DATE: . February 25, 2002 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: June Yotsuya, ACM SUBJECT: CITY RISK MANAGEMENT INSURANCE PROGRAM SUMMARY OF REQUEST Consider withdrawal from the Orange County Cities Risk Management Authority (OCCRMA) and joining the California Joint Powers Insurance Authority (CJPIA). BACKGROUND The municipal liability insurance market has been on a roller coaster ride for the past twenty years. During certain periods, the market has been "soft" which means rates have been low, limits have been high and most insurance policies applicable to municipalities have been available. 'This situation has historically been followed by the opposite conditions — higher premiums,-limits harder to reach and coverage difficult to obtain. In the avid 1980's, the market abruptly turned "hard" and municipal liability insurance was difficult, if not impossible to find, for municipalities. In the early 1990's, the commercial insurance market became "soft' again. This trend continued until the late 1990's, with premiums slowly increasing again during the last several years. In the late 1970's as a response to the drop in the for municipal insurance and the unwillingness of -' the industry to insure individual cities, groups of cities banded together to create insurance `pools" that provided more buying power and financial attraction. Under this mechanism, cities would become member agencies of a joint powers authority. Depending on the chosen self- insured retention level, each city would be responsible for its own losses up to a specific dollar amount. Covered losses above this amount would be pooled with other pool participants. The City of Seal Beach currently utilizes this risk financing mechanism. In 1986, the City became a member of the Orange County Cities Risk Management Authority.. One of the benefits of participating in a joint powers authority for liability insurance is that coverage for needed municipal exposures are more available to the pool (the primary reason pools were formed in the first place.) In addition, insurance premiums are really premium deposits, meaning that the City would receive a dividend if loss experience averages better than expected. Municipalities have an equity position in a pool system. Each member of a fiscally stable pool is a shareholder and can eventually benefit by reduced premiums or a dividend dependent on the risk 0 February 25, 2002 City Council Agenda Report — City Risk Management Insurance Program Page 2 management activity experienced in previous years_ Pools have also branched out to provide other programs and services such as joint purchase programs for other insurance coverage (property, special events, claims administration, employee training, etc.). Presently, there are a number of public agency joint powers authorities in existence. Some serve special district needs such as the Association of California Water Agencies Joint Powers Authority. Other municipal joint powers authorities serve a specific regional base with a few participating members from outside their immediate area. Examples include the.Coachella Valley Joint Powers Insurance Authority (the majority members from Coachella Valley); Independent Cities Risk Management Authority (the majority members from the Independent Cities Association); -and the Public Agency Risk Sharing Authority (serving the northern California area). Besides the Orange County Cities Risk Management Authority (OCCRMA) that serves twelve cities in Orange County, there is the California Joint Powers insurance Authority ( CJPIA) whose general offices is located in La Palma, California and serves a membership of eighty -seven public agencies, ten cities from Orange County. The City's risk management insurance program has not been thoroughly evaluated for some time. Last year, in response to escalating expenses associated with liability exposure litigation, the City did restructure its claims litigation process. As part of the city management's efforts to address the city's financial situation and to continue to look at ways to make-the bity more efficient and responsive, staff considered the services currently provided by OCCRMA and explored the concept of how the City would benefit if they were to consider changing its membership to another joint powers authority_ DISCUSSION Besides the premium expenses for liability and other forms of insurance coverage, OCCRMA requires that each member agency maintain a reserve fund for the provisions of each individual member's potential Self Insured Retention losses and possible assessments. The fund level should approximate three times the highest annual premium paid to the self - insurance program within the last five years. The City of Seal Beach currently maintains in its reserves approximately $900,000 dedicated to the insurance program and cannot be available for the potential use on other unforeseen funding necessities. In addition, the City's expenses also include the cost of using a third party administrator and legal expenses for litigation. As described-previously, there are other municipal insurance pools that are more regionally based in other areas. However, Staff has focused on the potentials of the California Joint Powers Insurance Authority ( CJPIA) because it is a joint powers authority that is located in Orange County and serves Orange County cities. . CJPIA is the largest municipal self - insurance pool in the state and has been in existence since 1978. CJPIA has potential cost benefit savings to the City in that the authority does not require the City to retain a reserve fund. In addition, the City would realize additional savings on overhead costs because it will not need to directly pay for the services of an attorney or third party administrator because CJPIA would include this as part of its services. Another minor benefit is that CJPIA offers training classes at its La Palma facility and will also do training on site thus reducing travel time and expenses for our February 25, 2002 City Council Agenda Report — City Risk Management Insurance Program Page 3 employees (OCCRMA provides training classes in Orange which is not often accessible to Seal Beach because of manpower coverage, etc.) FISCAL IMPACT Included with this staff report are several attachments that provide a comparison in service and insurance value between OCCRMA and CJPIA.. Attachment 1 and 2 provide a general overview onoth authorities. Attachment 3 provides a value comparison of liability protection (a city's major coverage need) over a seven -year period. In order to compile these comparisons, staff requested that CJPIA prepare a quotation letter for the City (Attachment 4). Staff also conducted random reference checks of the CJPIA member agencies (20 cities) and received all positive comments. Under OCCRMA, the City has an average annual cost of liability coverage of $466,886. In addition, Seal Beach.is also responsible for a $300,000 for self - insuran retention and is required to retain $900,000 in general fund reserves for these purposes. In comparison,' if the City had been a member of CJPIA, its annual average cost of liability coverage is estimated to be $244,920, with no requirement for SIR and a reserve amount. This primary deposit would cover losses and defense expenses. CJPIA pays for remaining expenses such as claims administration, overhead, etc. out of investment earnings of the authority. Because CJPIA. would be responsible for claims processing and administration from the start, the City's in house administrative expenses would be reduced. The City also incurs additional expenses with OCCRMA related -to additional coverage such as special events, watercraft, excess worker's compensation, etc. The City would experience insignificant changes to premium costs if purchased through CJPIA because it generally uses the same carriers as OCCRMA. Based on the cost comparison in Attachment 3, if the City were to change to CJPIA, the City would realize an average annual savings of approximately $222,000+ over time and would not be required to maintain a $300,000 SIR and the $900,000 General Fund Reserve. There are fiscal impacts relative to transition from one authority to another. OCCRMA requires that a withdrawing member shall remain responsible for its share of premiums or finds to any insurance program of OCCRMA until all claims or other unpaid liabilities covering the period of the member's participation have -been finally resolved. Coverage of policies terminate upon withdrawal except in policies where 1) specifically purchased for Seal Beach, 2) tail or extended policies are purchased by Seal Beach, 3) pending covered claims are being litigated, and 4) continuation of any coverage that is provided on an occurrence basis. The city does have some outstanding claims at this time and cannot predict at this time what claims would be closed by the end of this fiscal period. Therefore, the City may not realize the estimated cost savings during the first year in order to cover such poiential expenses. In their joint powers agreement, OCCRMA requires that a member agency give written notice to the Board or its designee, on or before the next succeeding March 1 of its intent to withdraw as of 12:01 a.m. on the next July 1. Staff contacted the executive director regarding whether or not the letter of intent is binding if the City were to decide not to withdraw. Janet Kaiser indicated that if we are considering withdrawal, the City should submit their written letter by March 1st, however, the letter would not be February 25, 2002 City Council Agenda Report — City Risk Management Insurance Program Page 4 considered for any recommendation by the underwriting committee until it meets on March 17 ,regarding any intent to withdraw as of July 1. The admission process to CJPIA consists of a staff evaluation of the prospective member including analysis of the application materials and claims data and conducting on-site evaluations and visits with appropriate personnel. A $1500 non - refundable application fee is also required. CJPIA: has indicated that with the exception of the on-site visits, completion of the application and payment of the application fee, much of the staff evaluation of the City of Seal Beach has been completed in preparation of the quotation letter. A recommendation, review and ratification by the authority membership would complete the admission process. RECOMNENDATION Staffls evaluation is that changing to the CJPIA will result in financial savings to the City of Seal Beach regarding annual cost of insurance coverage and eliminate the need to maintain the City self-insurance retention, and the requirement for a general fund reserve for the City's risks, as well as overhead expenses for claims administration and defense. In addition, the City would also receive the minor benefit of greater accessibility to training for employees (i.e., workplace safety, employee relations, etc.). Staff recommends the Cityy consider changing its membership in the Orange County, Risk Management Authority to the California Joint Powers Authority and direct staff to 1) submit an intent to withdraw letter to OCCRMA and 2) submit an admission application and fee to CJPIA. Submitting an intent letter to OCCRMA by March 1, 2001 does not bind the City Council. The City Council can still decide to remain with OCCRMA, within a reasonable timeframe, if there is a desire to do so or require additional time io render a decision. However, this is a necessary step in the process of consideration to change risk management providers. J yotsuy CM NOTED AND John B.Ahorski, City Manager Attachment 1 Date of Formation OCCRMA CJPIA Membership OCCRMA CJPIA General Comparison of Authorities 1978 Seal Beach member since 1986 1978 12 cities , (Brea, Cypress, Irvine, Laguna Beach, Los Alamitos, Orange, San Clemente,'Seal Beach, Stanton, Tustin, Westminster, Yorba Linda) 81 cities, 5 JPA's, 1 special district (Orange County cities — Aliso Viejo, Dana Point, Fountain Valley, Laguna Niguel, Laguna Woods, Lake Forest, La Palma, Mission Viejo, San Juan Capistrano, Villa Park) (See 1 -A for complete list) Attachment Z -A LIST OF MEMBERS BY COUNTY mPerial County Brawley Calexico El Centro Imperial Inyo County Bishop Los An el s ounnt Agoura Hills _ Agoura Hills /Calabasas CCA Artesia Bell Gardens Bellflower Bradbury Calabasas Cerritos Claremont Commerce Cudahy Diamond Bar Duarte Gateway Cities COG Hawaiian-Gardens Hidden Hills Irwindale La Puente La Verne La Mirada La Canada Flintridge La Habra Heights Lakewood ---- Lawndale ..... - Lomita Mahb Maywood Norwalk Palos Verdes Estates Paramount Palos Verdes Transit Pico Rivera Rancho Palos Verdes Rolling Hills Rolling Hills Estates Rosemead San Dimas San Marino Santa Fe Springs Signal Hill • South Pasadena South El Monte Southeast Area Animal Control Auth. Los Angeles 6untx c nt. Walnut West Hollywood Westlake Village Mono County Mammoth Lakes Orange County Dana Point Fountain Valley Laguna Niguel Laguna Woods Lake Forest La Palma Al i s o Viejo Mission Viejo San Juan Capistrano Villa Park Riverside County Indian Wells La Quinta Lake Elsinore palm Desert Coachella Valley Assoc. of Govts. an Die o C un La Mesa Poway San Marcos 5 a Bernar inn Apple Valley Big Bear Lake Chino Hills_.. -. _ .... _ Grand Terrace Loma Linda Needles Santa Barbara County Buellton Carpinteria Solvang Goleta Ventu a ou t� . Camarillo Fillmore Moorpark Ojai Port Hueneme Ventura Port District Temple City Attachment 2 Risk Management Alternatives for the City of Seal Beach Califnrnia TPTA A Limits $50,000,000 $42,000,000 SIR $0 $300,000 Reserve for SIR Losses $0 $900,000 Reserve for Assessment $0 3 x Highest Premium of Past 5 Years Number of Members 87 12 Form Occurrence Occurrence and Claims Made - Governance Elected Staff Coverage Bodily Injury Bodily Injury Property Damage Property Damage Personal Injury Personal Injury Advertising Injury Advertising Injury Public Officials E &O Public Officials E &O Automobiles Automobiles Accidental Pollution Earth Movement Employee Benefits Administration Discrimination Liability Non -Owned Aircraft Non -Owned Watercraft - Special Contra.ctural 42 USC 1983 Radioactive Contamination Cash Flow Protection 4 -Year Rolling Retro None Operating Expenses Paid from Earnin s Paid by the Members Resources Risk Management Training " Risk Management.Evaluations W ebsite Contracts Manual Newsletter Lending Library Policy Library Assigned Risk Managers OCCRMA Liabiliity Protection Program Analysis of Risk Management Costs For City of Seal Beach FY 1993194 1 FY 1994!95 FY 1995196 IFY1996197 FY 1997/98 FY 1998/99 FY 1999/00 FY 2000 /01 Total Costs Self- Insurance - Retention (SIR) Required General Fund Reserves Average Annual 514,921 I 502,209 1 361,751 378,608 -- 298.647J 331,3611 830,139 50,568 466,886 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 900,000 305,000) I-IbIlity Ins. Dividend OCCRMA Liability Ins. Premium 185,861 164,714 184,656 153,480 88,486 107,083 94,886 183,767 Attorney Fees for Claims Admin. 154,076 333,800 177,095 195,840 201,668 243,254 525,978 152,238 Liability Claim Settlements 174,984 ' 3,695 6,141,221 29,288 8,493 18,976 209,275 19,563 Total Costs Self- Insurance - Retention (SIR) Required General Fund Reserves Average Annual 514,921 I 502,209 1 361,751 378,608 -- 298.647J 331,3611 830,139 50,568 466,886 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 900,000 900,000 900,000 900,000 900,000 . 900,0001 900,000 900,000 i CJPIA Liability Protection Program Primary Deposit Calculation Based on Numbers Provided by City of Seal Beach FY 1993/94 FY 1994/95 FY 1995196 FY 1996/97 IFY 1997198 FY 1998/99 FY 1999/00 Losses $0 -2K Prop. Damage Only 5,201 4,730 2,496 1,552 - 1,171 4,960 Losses to $30K 90,362 •44,649 108,040 46,973 42,299 15,580 119,041 Losses $30K -750K 60,692 24,506 6,585 108,500 Losses $750K+ Total City Payroll - 5,285,579 - 1 5,647,141 5,845,629 - 6,097,409 6,295,712 6,141,221 6,230,166 Police Payroll 2,152,305 2,092,196 2,315,292 2,459,682 2,381,525 2,472,890 2,660,037 Police Surcharge 43,046 .41,844 46,306 49,194 47,631 49,458 53,201 Estimated Cost of Coverage for Liability Protection If City had been a member of CJPIA i City not required to maintain SIR or additional general fund reserve 'Primary Deposit Calculation for 2002/03 - Total Year Expense for City to CJPIA for Liability Average Annual Cost of Covera e 244,920 •239,794 P> rt rt n rt W "CJPIA primary deposit calculation -based upon average of cost over seven years excluding the.highest and lowest years. Attachment 4 CALIFORNIA J P I - A January 24, 2002 Ms. June Yotsuya, Assistant to the City Manager City of Seal Beach 211 - Eighth Street Seal Beach, CA 90740 -5601 Dear Ms. Yotsuya: The CALIFORNIA JOINT PowEm INsuRAVCE AuTHoR= is pleased to present this quotation to the City of Seal Beach for therprovisiorf of liability coverage. The City's initial primary deposit has been calculated based upon the data you recently provided to us. To compare the cost of coverage as a member of the CALIFORNIA JPIA with.coverage available through the commercial insurance market or with other pools, it is very important to recognize all of the costs of risk management that are included in the CALIFORNIA JPIA proposal. Our proposal includes all costs of claims from the first dollar and covers all the details of handling claims. The CALIFORNIA JPIA-handles claims from their inception to closing. We pay the claims adjusters, hire the attorneys as necessary, and pay the claims as appropriate. All of these costs are included as part of the cost of coverage. The City should realize a significant savings on overhead costs because it will not need to directly pay for the services of an attorney or third party administrator, such as Carl Warren and Company, to manage its claims, and staff resources used to manage . litigation can be utilized elsewhere because the CALIFORNIA JPIA includes this as part of its services. Additionally, the CALIFORNIA JPIA provides extensive risk management training to its members. Training is provided at no cost on a regional basis and to individual members to help them address risk management concerns and to reduce losses. Finally, the CALIFORNIA. JPIA conducts biannual risk management evaluations of each member to help the member identify liability and safety exposures before they result in claims. All of these services are included as part of. the CALIFORNIA JPIA program. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY Ms. June Yotsuya January 24, 2002 Page 2 Liability Coverage The CALIFORNIA JPIA was originally formed to provide liability protection to its members. While most other CALIFORNIA JPIA programs are optional, all members must participate in the liability program.. The liability program is a self - insured, loss- pooling program in which participating members benefit from sharing risk with other member agencies. Coverage is provided to $50 million per occurrence. The program is retrospective in nature, utilizing a primary deposit at the beginning of the coverage period and a retrospective adjustment at the conclusion of the coverage period. The primary deposit is a calculated amount based on the prior experience of the member. The liability coverage quotation of $239,794 has been generated by applying the cost allocation formula used by the CALIFORNIA JPIA to the City of 's losses as though the City had been a member of the CALIFORNIA JPIA during the time period of July 1, 1993 to June 30, 2000'. We determined the City's cost of coverage for each of the coverage periods for which you provided data. The City's primary deposit amount was then established by excluding the high and low years, and averaging'the remaining costs of coverage.. Attached you will find a sheet showing the primary deposit calculation. It is important to note that the primary deposit is only an estimate of the expected cost of coverage for the coverage period. If the City applies effective risk management and loss control techniques, it may receive a retrospective refund (primary deposit less the City's share of losses and expenses). Should the City's loss experience be worse, the City would owe additional fiords to the liability pool. Retrospective adjustments are Wed or refunded over a four -year period. This "rolling retro" was instituted by the Authority to stabilize the cash flow requirements of participation in the program. The cost allocation formula is such that each member's primary deposit is charged directly for the first $30,000 in costs for each occur reitee (if an occurrence results in Vivre than one claim, only one $30,000 charge is made). Costs per occurrence from $30,000 to $750,000 are pooled based on each member's share of the under- $30,000 costs, excluding property only occurrences of less than $2,000. Costs from $750,000 to $5,000,000 per occurrence are pooled based on the member's share 'of the total payroll of all the members. Costs from $5,000,000 to $50,000,000 per occurrence are transferred to the CALIFORNIA JPIA re- insurer: Costs of operating the CALIFORNIA JPIA and the third party administrator are paid from the Authority's investment earnings (formerly these costs were charged to the members as a part of the cost allocation formula). The only costs that are pooled are those related to actual losses (i.e. paid losses, defense costs, and reserves). There is a surcharge based on police payroll for members with police departments. The surcharge is determined annually in conjunction with the Authority's actuarial study. For 2001 -2002 the surcharge is $2.00 per $100 of sworn police payroll. All claims, regardless of size, are to be immediately reported to the CALIFORNIA. JPIA. Lam' Ms. June Yotsuya January 24, 2002 Page 3 Environmental Liability Program The CALIFORNIA JPIA began providing comprehensive environmental liability and remediation insurance protection on July 1, 2000. The environmental program is a mandatory program that covers defense, indemnity, and remediation for scheduled properties, facilities, and non - -owned disposal sites. Streets and storm-drain outfalls are covered on a blanket basis. Coverage is provided up to $10 million per member during the three -year policy period; $50 million for the entire CALIFORNIA JPIA. There is a $50,000 per occurrence self - insured retention. With an estimated population of 24,000 residents, the annual premium for the City of Seal Beach would be approximately $4,080 (some high hazard exposures, such as maintenance yards, may have surcharges). Because all of the members participate in this program, the coverage is very cost effective. Optional Programs If the City of Seal Beach chooses to pursue membership in the CALIFORNIA JPIA for - liability coverage, the City would be eligible to participate in ali of the CALIFORNIA JPIA's including the workers' compensation self - insurance pool, and programs for property insurance (including earthquake and flood), fidelity bonds, and special events insurance. Workers' Compensation The CALIFORNIA JPIA workers' compensation program handles-all claims from the_ fixst dollar without deductibles. The cost allocation formula is'siwdlar to that used for the liability program. Costs up to $50,000 are. charged directly to.the member's primary_..._. deposit. Costs from $50,000 to $100,000 are pooled based on the member's share of costs under $50,000, and costs from $100,000 to $500,000 are pooled based on payroll. Costs in excess of $500,000 are transferred to an excess insurance policy. Administrative expenses are paid from the Authority's investment earnings. Property Insurance Coverage The CALIFORNIA JPIA property insurance program was designed specifically to meet the needs of our members. Coverage is available for real property (buildings), business personal property. (contents), mobile equipment (unlicensed vehicles and equipment used to maintain public property) and vehicles. In addition, earthquake and flood, boiler and machinery, and rental interruption coverage is available at very low rates due to the combined purchasing power of the members. Ms. June Yotsuya January 24, 2002 Page 4 Fidelity Bonds The CALIFORNIA JPIA blanket fidelity bond program provides coverage for Faithful .Performance, Depositor's Forgery, and Crime. There is also optional computer fraud protection. Rates for this program are very competitive. Admissions Process The admissions process for the CALIFORNIA JPIA consists of a staff evaluation. of the prospective member including analysis of the application materials and claims data and conducting on-site evaluations and visits with appropriate personnel. A $1,500 application fee is also required. With the exception of the on-site visits, completion of the application and payment of the application fee, much of the. staff evaluation of the City of Seal Beach has been completed as part of this quotation process. Following a positive staff evaluation, a recommendation will be foiwarded to the City Managers' Committee. T'he City Managers' Committee thenmakes a recommendation to the Executive Committee composed of nine elected officials. Following Executive Committee approval, a recommendation is made to all of the members. They then submit a written ballot stating their position on admission of the applicant agency. With the approval of the members, the applicant agency is admitted to the organization and must pay the primary deposit determined in the evaluation process. The entire process takes approximately three months. Thank you again for considering the CA.LTORMA JOINT POWERS INSURANCE AUTHOIUTY for your risk management needs. I am looking forward to hearing from you. Please feel free to call me or Executive Director, William Holt, if you have any questions or need _ any further information. - - - - Sinc ely, Jonathan R. Shull, ARM Assistant Executive Director Attachments r ATTACHMENT "B" Ul u California Insurance Pool Authority Seming the Cities of. Arcafitq Orea, niiuena 4'ark Cypress, Irvine, Laguna (Beach, Wont&ir, Orange, Tustin, 'Westnninster, 'WRL er, 'Yor6a Linda RECEIVED July 9, 2010 David N. Carmany City Manager City of Seal Beach 2118" Street Seal Beach, California 90740 Subject: California Insurance Pool Authority Assessment Dear David: JUL 12 ?010 C-ity Wanager's Office The City of Seal Beach became a member of Orange County Cities Risk Management Authority's (OCCRMA's) liability pool in 1987. The City withdrew from OCCRMA effective July 1, 2002. Please note that in 2007, OCCRMA's name was changed to California Insurance Pool Authority (CIPA). Attached is a copy of OCCRMA's Joint Powers Agreement with the signature page signed by the City of Seal Beach. Article 12 (a) states the following: (a) A Member Agency may withdraw as a Member in accordance with this Agreement and the Bylaws, provided that no withdrawing party shall be entitled to payment or return of any earned premium, contribution, consideration, or property paid or donated by the party to the Authority, or to any distribution of assets prior to final termination of this Agreement, except in connection with final termination of a program pursuant to subparagraph (b). The withdrawal or cancellation of any Member Agency shall not terminate its responsibility to contribute its share of premium or funds to any insurance program of CIPA or to cooperate with CIPA in the resolution of claims, until all claims or other unpaid liabilities covering the period the Member Agency was a participant have been finally resolved and a determination of the final amount of payments due by the Member Agency or credits for such period has been made by the Authority. C1PA's assessment policy is designed to assess current and former members for program years in which insufficient contributions were collected from the members. A target portion of any deficit for each program year is then allocated back to all members that participated in that year. All current and withdrawn members are assessed on the same basis. Under the liability program, assessments may be charged on policy years that are older than eight years. CIPA's actuary has determined that assessments are due for calendar 366 San Miguel Drive, Suite 312, Newport Beach, California 92660 • (949) 729 -1633 • Fax (949) 729 -1637 years 1996/97 and 1998/99. These are years in which the City of Seal Beach participated in OCCRMA. At 6/30/10, the total calculated assessment due from the City of Seal Beach is $87,022. CIPA's policy calls for collecting one -tenth of the assessment due each year. The total due from the City of Seal Beach is currently $8,702. Each year the actuary will re- calculate the assessment due and make changes accordingly. If there are no further changes, the City of Seal Beach will be invoiced $8,702 for this year, as well as each of the following nine years. An invoice for the assessment due is attached. Please forward your check in the amount of $8,702 prior to September 2, 2010 and let me know if you have any questions. Sincerely, l ei D. Kiser, General Manager Copy: Glenn Newson, President Greg Moser, General Counsel ATTACHMENT "C" RESOLUTION NUMBER_ A RESOLUTION OF THE CITY COUNCIL. OF THE CITY OF SEAL BEACH APPROVING AMENDMENT OF THE JOINT POWERS AGREENMU FOR THE ORANGE COUNTY CITIES RISK MANAGEMENT AUTHORITY THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HERESY RESOLV& WHEREAS, the City of Seal Beach is a member of the Orange County Cities Risk Management Authority C Authority); and WHEREAS, the Board of Directors of the Authority has approved changes to the joint powers agreement under which the Authority operates, in order to delegate management of certain affairs of the Authority to its Executive Committee, conform the agreement to the changes in the coverage contrack and to conform the agreement to current practices; and WHEREAS, the City Council has reviewed the proposed changes and concurs that amendment of the joint powers agreement would be in the best interest of the City: NOW, THEREFORE, BE IT RESOLVED: That the amended Joint Powers Agreement for the Orange County Cities Risk Management Authority `Agreement'), be and it is hereby approved That the Mayor, or his or her designee, is hereby directed and authorized to execute the Agreement and to forward a duly executed copy of said Agreement forth with to the Clerk of the Authority. PASSED AND ADOPTED by the City Council of the City of Seal Beach at an adjourned regular meeting held on the I l day of September, 2000. AYES: COUNCIL NOES: COUNCIL ABSENT: COUN a 109 / ATTE)T: r A- CFY CLERK STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Joaffie M Yeo, City Clerk of Seal Beach, California, do ertify that the foregoing resolution is the original copy of Resolution Zm�ber on file in the office of the City Clerk, passed, approved, and adopted B --- f the Cit y of each, at m thereof held on the 2000. C' Jerk 1 JOINT POWERS AGREEMENT FOR ORANGE COUNTY CITIES RISK MANAGEMENT AUTHORITY 017.141266.2 A TABLE OF CONTENTS JOINT POWERS AGREEMENT FOR ORANGE COUNTY CITIES RISK MANAGEMENT AUTHORITY Page ARTICLE1. Definitions .................................................... ..............................I ARTICLE2. Separate Entity .............................................. ............................... 3 ARTICLE 3. System Established ......................................... ............................... 3 ARTICLE4. OCCRMA Powers .......................................... ............................... 3 ARTICLE 5. Members; Board of Directors ........................... ............................... 4 ARTICLE 6. Powers of Board ............................................ ............................... 4 ARTICLE 7. Meetings of the Board ..................................... ............................... 5 ARTICLE 8. Quorum; Voting ........................................... ............................... 5 ARTICLE 9. Executive Committee ...................................... ............................... 5 ARTICLE10.00CRMA Funds ........................................... ............................... 5 ARTICLE 11. Term of Agreement ........................................ ............................... 5 ARTICLE 12. Membership Term; Withdrawal; Termination ........ ............................... 6 ARTICLE 13. Disposition of OCCRMA Property and Funds ........ ............................... 6 ARTICLE 14. Enforcement ................................................. ............................... 7 ARTICLE15. Invalidity .................. ............................... . ... ............................... 7 ARTICLE 16. Amendments ............................................... ............................... 7 ARTICLE 17. Bylaws and Plan Document ............................... ............................... 8 ARTICLE 18. Prohibition Against Assignment ......................... ............................... 8 ARTICLE19. Tort Liability ................................................ ............................... 8 ARTICLE 20. Agreement Complete ...................................... ............................... 9 ARTICLE 21. Date Agreement Effective ................................ ............................... 9 017.141266.2 -i- JOINT POWERS AGREEMENT FOR ORANGE COUNTY CITIES RISK MANAGEMENT AUTHORITY 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, including insurance, 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. WITNESSETH WHEREAS, the public interest requires and it is to the mutual interest of the parties hereto to join together to establish and operate a cooperative program of risk management; and WHEREAS, the operation of such a cooperative program is of such magnitude that it is necessary for the parties to this Agreement to join together to accomplish the purposes hereinafter set forth; 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 WHEREAS, Title 1, Division 7, Chapter 5 of the California Government Code authorizes the joint exercise by two or.more local public entities 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 purpose of minimiz risk through any, all or any combination of the following: pooling of risk, joint funding of insurance or risk reserves in any legal manner, formation or rental of a captive insurer, establishing certain self - insured reserves against losses and jointly purchasing insurance, excess insurance, re- insurance and administrative services in connection with a cooperative program of risk management; NOW, THEREFORE, for and in consideration of the mutual advantages 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. DEFINITIONS The following definitions shall apply to the provisions of this Agreement and its Bylaws: (a) "Agreement" or "Joint Powers Agreement" shall mean this "Joint Powers Agreement for Orange County Cities Risk Management Authority," as it may be amended from time to time. 017.141266.2 -1- _ June 16, 2000 (b) "Authority" or "OCCRMA" shall mean the Orange County Cities Risk Management Authority created by this Agreement. . (c) "Board of Directors" or "Board" shall mean the governing body of the Authority. (d) "Claims management" shall mean the process of identifying, controlling and resolving demands by individuals, public entities or private entities to recover losses from an insured, otherwise indemnified, or self - insured entity. Disposing of such demands for payment requires skills in insurance, law, adjusting /investigation, loss control engineering and general business. Claims management is the function of supervising legal, adjusting, investigation and engineering services to resolve such demands. (e) "Eligible Member" shall mean a Member Agency eligible to vote on a matter coming before the Board in a given area of risk, due to the Member Agency's participation in that area of risk. In the case of new areas of risk that OCCRMA is considering, "Eligible Members" shall be all Members who reasonably expect to participate in that area of risk. (f) "Executive Committee" shall mean the committee of the Board of Directors responsible for management of the affairs of the Authority between meetings of the Authority. (g) "General Manager" shall mean the person or entity appointed by the Board and given responsibility for the management, administration and operation of the cooperative programs of risk management of the Authority. (h) "Local Public Entity" shall mean city, county, public authority and such other governmental entities as the Authority may determine. (i) "Member Agency" or "Member" shall mean a Local Public Entity that is a party to this Agreement. 0) "Participation" or "Participating" shall mean a Member Agency's action or state of taking part in the programs of the Authority by doing any, all or any combination of the following through the Authority with respect to one or more risk areas: (1) purchase of risk management administrative services; (2) purchase of insurance or re- insurance; (3) purchase of claims administration services; (4) contribution to designated reserve, operating and other funds or costs as required under the Authority's programs; (5) payment or providing for payment of assessments, defense costs, claim and judgment costs and other related costs as required by this Agreement or the Authority's Bylaws; (6) participation by the payment of premiums or contributions and entering into requisite agreements in any pooling of losses, captive insurance program or other self - insurance program established and administered by the Authority . 017.14 t 266.2 -2- - June 16, 2000 (k) "Rating Structure" shall mean the means by which premiums, assessments, contributions to a fund, or allocated expenses are established for a risk area or insurance program on the basis of conditions which affect the probability of loss. (1) "Risk Area" shall mean an area of exposure to pure risk of financial loss. As used herein, this term refers to one of the following fields of exposure: worker's compensation, public liability, accident and health, unemployment compensation, property damage and such other areas as the Board shall agree upon. (m) "Risk Management" shall mean the process of identifying, evaluating, reducing, sharing, transferring, and eliminating risks. Risk management includes various methods of funding claims payments. Risk management includes elements of insurance, law, administration, technology and general business utilized to effectively manage risks. ARTICLE 2. SEPARATE ENTITY There is hereby created a separate public entity, the full legal name of which shall be "Orange County Cities Risk Management Authority", and may be referred to herein as " OCCRMA" or the "Authority." The Authority is a public entity separate from the parties to this Agreement. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities or obligations of the parties to the Agreement. ARTICLE 3. SYSTEM ESTABLISHED A risk management system consisting of the parties to this Agreement is hereby established. This system represents a cooperative program of risk management which may encompass, but is not limited to, the following risk areas: public liability, worker's compensation, accident and health, property damage and unemployment compensation and such other areas as the Board shall agree upon. ARTICLE 4. OCCRMA POWERS (a) OCCRMA shall have the power and the duty to establish and operate a program of risk management and provide for its execution either directly by OCCRMA or by contract. (b) OCCRMA is authorized to make and enter into contracts; to employ agents and employees; to acquire, construct, manage, maintain or operate any building, works or improvements; to acquire, hold or dispose of property, liabilities or obligations; establish risk management related lines bf credit, to incur indebtedness, liabilities or obligations, to sue and be sued in its own name, and to exercise all powers necessary and proper to carry out the terms and provisions of this Agreement, or otherwise authorized by law. The foregoing powers include, but are not limited to, those relative to contracting for excess insurance or re- insurance, risk pooling, including formation of an owned or use of a non -owned captive insurance company, funding of self - insurance in any legal manner, claims administration services and consulting services. 017.141266.2 -3- - June 16, 2000 (c) The day - to-day operations of OCCRMA shall be subject to, and shall be governed by the Bylaws adopted by the Board. (d) The powers exercised by the Authority shall be subject to the restrictions upon the manner of exercising such powers of a general law city. ARTICLE S. MEMBERS; BOARD OF DIRECTORS (a) Each Member Agency is entitled to the rights and privileges and is subject to the obligations as provided for in this Agreement and the Bylaws. (b) A new Member Agency may be accepted upon application to OCCRMA and upon acceptance by the Board by two- thirds vote, and subject to acceptance by the prospective member of the financial arrangements and fund contributions specified by the then current members. (c) Each Member Agency shall be entitled to one voting representative to serve as a director on the Board. (d) Each Member Agency's representative shall be designated by appointment by the member's city council or other governing body. Such governing body may delegate the authority to appoint that member's representatives to its city manager or other chief executive officer. Each member also may, - in the same manner, appoint one alternate who may attend meetings and vote in the event of absence of the representative. Each representative and alternate shall be an officer or employee of the appointing Member Agency. ARTICLE 6. POWERS OF BOARD The Board shall have the following powers and functions: (a) To approve the annual budget of the Authority and any assessments (b) To elect a president and vice - president, and establish and appoint such other officers, including an auditor, clerk and treasurer, as may be necessary or desirable to carry out the purposes of this Agreement, and to provide therefor in the Bylaws. (c) To establish such committees as it may, from time to time, deem necessary to carry out its purposes, including, but not limited to underwriting and claims committees. (d) To exercise all of the powers and duties of OCCRMA, including all business assigned to the Executive Committee, in the absence of the Executive Committee. (e) (fl Agreement. To approve all changes to the Bylaws. This authority may not be delegated. To perform such other duties and functions as are provided for in this 017.141266.2 -4- June 16, 2000 ARTICLE 7. MEETINGS OF THE BOARD The Board shall establish a time and place to hold regular meetings not less often than annually. Meetings shall be conducted pursuant to the most current edition of Roberts Rules of Order or such other procedural rules as the Board shall adopt. ARTICLES. QUORUM; VOTING (a) A quorum for the transaction of business by the Board shall consist of a majority of the directors, or of the Eligible Members, whichever is less. (b) All matters within the purview of the Board of Directors may be decided by majority vote of a quorum of the Board, except those matters which the Agreement or Bylaws specify as requiring a two- thirds vote of the Board must be decided by a vote of two- thirds of all representatives on the Board. (c) Each director may vote on each matter brought before the Board for decision. However, if the Board by majority vote designates a particular matter as one which pertains only to a given risk area (e.g., workers' compensation), or a specific insurance program (e.g. self insured pool), then only the representatives of those Eligible Members may vote upon the matter. This limitation respecting who may vote on certain matters is not intended to prohibit any Member from expressing its opinion as to how those qualified to vote should vote. ARTICLE 9. EXECUTIVE COMMITTEE The Board shall establish an Executive Committee of the Board of Directors which shall consist of at least three members, as provided in the Bylaws. The president of the Board shall be a member of the Executive Committee; the remainder of the members may be selected as provided in the Bylaws. The Executive Committee shall exercise general supervisory and policy control over the General Manager, and may exercise any and all powers of the Board between Board meetings and when delegated by the Board, as provided in this Agreement and the Bylaws. The Executive Committee shall meet at least quarterly. ARTICLE 10. OCCRMA FUNDS The Treasurer of the Authority shall be the depository of the funds of OCCRMA. The Treasurer's selection, responsibilities, compensation and related matters shall be governed by the Bylaws. The Auditor shall be the disbursing officer of OCCRMA and shall draw warrants against the funds of OCCRMA in the treasury when demands are presented and authorized as designated in the Bylaws. The Board shall require the Treasurer, Auditor• and any other person delegated charge of OCCRMA funds, to be bonded in amounts deemed reasonable by. the Board. ARTICLE 11. TERM OF AGREEMENT This Agreement shall continue in effect until it is rescinded by mutual consent of the parties or terminated by the written consent of two - thirds of all Member Agencies; provided '017.141266.2 -5- June 16, 2000 that this Agreement and OCCRMA shall continue to exist for the purpose of disposing of all claims, distributing assets and performing all other functions necessary to wind up the affairs of OCCRMA. The Executive Committee shall be vested with all powers of OCCRMA for the purpose of winding up and dissolving the business affairs of OCCRMA. ARTICLE 12. MEMBERSHIP TERM; WITHDRAWAL; TERARNATION (a) A party to this Agreement shall remain a Member Agency for two years from the date it first joined OCCRMA; thereafter the Member Agency may withdraw by giving written notice to the Board or its designee, on or before the next succeeding March 1, of the intent to withdraw as of 12:01 a.m. on the next July 1. (b) On the July 1 specified in the notice the withdrawing party shall cease to be a member of OCCRMA; however, the withdrawing party shall remain responsible to contribute its share of premiums, contributions or assessments, as described in Article 13, and shall continue to comply fully with the terms and conditions of this Agreement as to any claims outstanding which are likely to involve the Authority. Withdrawal of a party from OCCRMA shall automatically concurrently terminate any and all coverages obtained by and through OCCRMA as to the withdrawing party and all additional insureds and named insureds affiliated with the withdrawing party, excepting only: (1) commercial insurance policies specifically naming the withdrawing party or related insureds; (2) tail or extended reporting coverage offered by OCCRMA and accepted by the withdrawing party; (3) pending covered claims that are being litigated; and (4) continuation of any coveragexxxfrom occrma or anyone? provided on an occurrence basis. (c) The Board shall have the right to terminate, for good cause, any Member Agency's participation in the Authority, or any program thereof, upon a 2/3 vote of the entire Board of Directors; provided that a reasonable time shall be afforded, in the discretion of the Board of Directors, for the Member to seek coverage elsewhere. (d) The Executive Committee shall have the right to terminate any Member Agency's participation in the Authority, or any program thereof, upon a majority vote, in the event of nonpayment of any of the Member Agency's obligations. ARTICLE 13. DISPOSITION OF OCCRMA PROPERTY AND FUNDS (a) A Member Agency may withdraw as a Member in accordance with this Agreement and the Bylaws, provided that no withdrawing party shall be entitled to payment or return of any earned premium, contribution, consideration, or property paid or donated by the party to the Authority, or to'any distribution of assets prior to final termination of this Agreement, except pursuant to subparagraph (b). The withdrawal or cancellation of any Member Agency shall not terminate its responsibility to contribute its share of premium or funds to any insurance program of OCCRMA or to cooperate with OCCRMA in the resolution of claims, until all claims or other unpaid liabilities covering the period the Member Agency was a participant have been finally resolved and a determination of the final amount of a 17.141266.2 -6- June 16, 2000 payments due by the Member Agency or credits for such period has been made by the Authority. (b) In the event of the dissolution of OCCRMA or the complete rescission or final termination of the Joint Powers Agreement by all of the then parties thereto, any assets of OCCRMA remaining after all claims and obligations have been paid, and after the payment of all liabilities, costs, expenses and charges incurred pursuant to this Agreement, or provision made for the payment of same through establishment of a liquidation fund, purchase of insurance or reinsurance, or a combination thereof, shall be returned to the then current Members of OCCRMA based on their total net contributions from inception, determined as of the date of dissolution, rescission or final termination. For the purposes of this paragraph "net contributions" shall mean the sum of actual contributions paid in, Tess losses and allocated claims expenses, but not less than zero for any individual Member. Net contributions shall be reduced by any rate credits given. Losses and allocated claims expenses shall include contributions used to pay for reinsurance, but not any proceeds therefrom. Net contributions shall include any interest actually earned thereon by the Authority. The Authority may adjust the interest earnings attributable to the contributions of a Member whose net contribution is zero or less based on a reasonable estimate of any periods during which no interest was earned. ARTICLE 14. ENFORCEMENT OCCRMA shall have the authority to enforce this Agreement. Any dispute regarding the interpretation of this Agreement or the Bylaws adopted hereunder, between or among OCCRMA and any Member Agency or Agencies shall be submitted to final and binding arbitration in accordance with the procedures established in the California Code of Civil Procedure and referred to the Judicial Arbitration and Mediation Service or other arbiter as may be agreed by the parties; except that the Authority or any affected Member may sue for the collection or return of assessments, contributions or premiums for a given year of coverage; provided that the affected member shall have first exhausted its administrative remedies and timely presented a claifn therefor to the Authority. As to such a claim for the collection or return of funds, the prevailing party shall be entitled to reasonable attorney's fees. ARTICLE 15. INVALIDITY Should any portion, term, condition or provision 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 portions, terms, conditions and provisions shall not be affected thereby. ARTICLE 16. AMENDMENTS No amendments to this Agreement shall be effective unless accomplished by written agreement executed by the governing bodies of at least two- thirds of the parties to this 017.141266.2 -7- June 16, 2000 Agreement. Reasonable prior notice of any Board meeting in which amendments are to be voted upon must be given to each director in writing. Such notice must include mention of the nature of the amendments to be voted upon. ARTICLE 17. BYLAWS AND PLAN DOCUMENT (a) By a two - thirds vote of the entire Board, the Board shall develop and adopt Bylaws and a Plan Document to govern the day -to -day operations of OCCRMA and may amend such documents from time to time. (b) Each Member Agency agrees to comply with and be bound by the provisions of the Bylaws as the same may be amended from time to time. Notwithstanding any provision in the Bylaws or Plan Document adopted by the Board in the event of any conflict between this Agreement and the Bylaws or Plan Document, this Agreement shall prevail; in the event of any conflict between the Bylaws and the Plan Document, the Bylaws shall prevail. ARTICLE 18. PROHIBITION AGAINST ASSIGNMENT No Member Agency may assign any fright, 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 19. TORT LIABILITY As to any debts or liabilities based upon Section 895.2 of the Government Code of the State of California, except as otherwise provided by individual contract, pursuant to the provisions of Section 895.4, of the Government Code of the State of California, this paragraph allocates such liabilities. Each Member shall be liable for its pro rata share of both the debts and liabilities of the Authority to the extent such debts and liabilities exceed the available assets of the Authority, including any collectible coverage or insurance, and the Member's pro rata share of all debts and liabilities for claims against all Members, arising out of facts: (i) in the performance of this agreement, and (ii) occurring while a Member. A Member's pro rata share of debts and liabilities shall be calculated by dividing each such Member's (or former Member's) total contributions paid, by the total of all contributions paid by all such Members, from the inception of the Authority. To the extent required to achieve such purpose, each Member indemnifies the other Participants for any loss, cost or expense that may be imposed upon such other Members. The rules therefor as set forth in Civil Code Section 2778 are hereby made a part of this Agreement. For the purposes of this paragraph, "contributions" shall include all funds paid to the Authority for participation in the programs of the Authority (including group excess liability insurance programs), any liability protection programs operated on a group self- insurance basis by the Authority, and for operation of the Authority. However, "contributions" shall not include' payments made to the Authority which are used for purchase of commercial insurance for other risks on a primary basis. 017.141266.2 -8- - June 16, 2000 ARTICLE 20. 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. ARTICLE 21. DATE AGREEMENT EFFECTIVE This Agreement shall become effective as of July 1, 2000 upon approval in accordance with its terms. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their proper officers thereunto duly authorized. Executed before me this day of 1 2000 CITY OF BREA City Clerk Executed before me this day of , 2000 : CITY OF CYPRESS City Clerk Executed before me this day of , 2000 City Clerk Executed before me this day of , 2000 City Clerk Executed before me this By CITY OF IRVINE Lo CITY OF LAGUNA BEACH : 017.141266.2 -9- June 16, 2000 day of , 2000 CITY OF LA PALMA City Clerk By Executed before me this day of , 2000 CITY OF LOS ALAMITOS City Clerk By Executed before me this day of , 2000 CITY OF ORANGE City Clerk By Executed before me this day of , 2000 CITY OF SAN CLEMENTE City Clerk By Executed befo me is day o , 2000 CITY OF SEAL BEACH A A, -42� UtX� , a.411 Co Clerk B y Patricia E . -Campbell, Mayor Executed before me this . day of , 2000 CITY OF STANTON City Clerk By 017.141266.2 -10- June 16, 2000 f 0 Executed before me this day of , 2000 City Clerk Executed before me this day of , 200D City Clerk Executed before me this day of , 2000 City Clerk CITY OF TUSTIN By CITY OF WESTMINSTER By CITY OF YORBA LINDA By 017.141266.2 -11- - June 16, 2000 ATTACHMENT "D" Bill To: David N. Carmany City Manager City of Seal Beach 211 8th Street Seal Beach, California 90740 INVOICE Date: — July 9, 2010 Due: Sept. 2, 2010 Description Amount One -Tenth of 1996/97 and 1998/99 CIPA assessment as of 6/30/10 $8,702.00 Total $8,702.00 Make Checks Payable to: California Insurance Pool Authority 366 San Miguel Drive, Suite 312 Newport Beach, CA 92660 949 - 729 -1633