HomeMy WebLinkAboutR-2010-103 CIAW Membership [Cities Insurance Association of Washington]A RESOLUTION
RESOLUTION NO. R-2010-103
authorizing and directing the City Manager of the City of Yakimato execute
the Interlocal Agreement of Cities Insurance Association of Washington
("CIAW") in order for the City of Yakima to become a member of the Cities
Insurance Association of Washington effective September 1, 2010, and
approving .the City of Yakima to become a member of CIAW with its
attendant requirements; and authorizing the City Manager to execute any
other documents that may be necessary or appropriate to allow the City of
Yakima to become a member of the Cities Insurance Association of
Washington.
WHEREAS, Chapter 39.34 of the Revised Code of Washington ("RCW"), entitled
"Interlocal Cooperation Act," permits local governmental units to make the most efficient use of
their powers by enabling them to cooperate with other municipalities on the basis of mutual
advantage; and
WHEREAS, RCW 48.62 empowers local government entities to join together to form a
joint self-insurance program;. and
WHEREAS, the CIAW is authorized to develop and administer a program which
provides an opportunity for members to jointly pool and self -insure their liability losses, jointly
purchase property insurance and excess reinsurance, and jointly utilize administrative and other
services; and
WHEREAS, the CIAW offers pooled insurance purchasing with .cost stability and
potential long-term savings; and
WHEREAS, the City of Yakima joined the CIAW as an associate member effective
December 14, 2005; and
WHEREAS, the City of Yakima finds that membership in the CIAW is of benefit in
managing the risks involved in providing services to its citizens; and
WHEREAS, the City of Yakima has been provided with an opportunity to review the
Interlocal Agreement of Cities Insurance Association of Washington and the By -Laws of Cities
Insurance Association of Washington; and
WHEREAS, pursuant to WAC 82-60-030, the City acknowledges that it may be subject
to assessments and reassessments as required by the joint self-insurance program; and
WHEREAS, upon execution of the Interlocal Agreement of Cities Insurance Association
of Washington, the City of Yakima will become a member of the CIAW retroactive to and
effective on September 1, 2010; and
WHEREAS, it is appropriate for the City Manager to negotiate and execute any
additional documents that are necessary or appropriate for the City of Yakima to enter into and
participate as a member in the CIAW; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
join the CIAW as a member; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City hereby approves the Interlocal Agreement and Bylaws of the CIAW and hereby
agrees to become a member of the CIAW retroactive to and commencing on September 1,
2010. The City Manager is hereby authorized and directed to execute the Interlocal Agreement
of Cities Insurance Association of Washington and any other documents that may be necessary
or appropriate to allow the City of Yakima to become a member of the CIAW retroactive to and
commencing on September. 1, 2010.
ADOPTED BY THE CITY COUNCIL this 7th day of September, 2010.
ATTEST:
tzfia
Micah Cawley, Mayor
2
Cities lnsurancc Association of Washington
INTERLOCAL AGREEMENT
OF
CITIES INSURANCE ASSOCIATION
OF WASHINGTON
TABLE OF CONTENTS
FOR
INTERLOCAL AGREEMENT
CREATING THE
CITIES INSURANCE ASSOCIATION OF WASHINGTON•
1. Introduction Page 1
2. Recitals 1
3. Agreement 1
3.1 Purpose of Agreement 1
3.2 Parties to Agreement 2
3.3 Term of Agreement 3
3.4 Creation of Association 3
3.5 Powers of the Association 4
3.6 Responsibilities of the Association 5
3.7 Responsibilities of Members 6
3.8 Board of Directors' Authority 7
3.9 Service Representative Relationship 9
3.10 Effective Date of Pooled Insurance Purchasing Program 10
3.11 Contingent Liability and Retroactive Assessments 10
3.12 New Members 11
3.13 Withdrawal 11
3.14 Cancellation 11
3.15 Effect of Withdrawal or Cancellation 11
3.16 Termination and Distribution 12
3.17 Notices 13
3.18 Amendment 13
3.19 Enforcement 13
3.20 Default and Remedies 13
3.21 No Waivers 14
3.22 Prohibition Against Assignment 14
3.23 Entire Agreement 14
3.24 Severability 15
3.25 Time 15
3.26 Section Headings 15
3.27 Governing Law 15
3.28 Counterpart Copies 15
4. Execution 16
ii
INTERLOCAL AGREEMENT CREATING THE
CITIES INSURANCE ASSOCIATION OF WASHINGTON
Introduction.
THIS AGREEMENT is made and entered into in the State of Washington
pursuant to the provisions of Chapter 39.34 Revised Code of Washington and Chapter
48.62 Revised Code of Washington by and among the Washington cities and towns or
public entities listed in Exhibit A attached hereto (the "Members").
2. Recitals.
2.1 Chapter 48.62 Revised Code of Washington provides that two or more
"local governmental entities" may, pursuant to Chapter 39.34 Revised
Code of Washington, jointly purchase insurance (these activities are
hereafter collectively referred to as a "Joint Insurance Purchasing Pool").
2.2 Revised Code of Washington Section 48.62.020 defines "local
government entities" to include cities and towns organized and existing
under Title 35 or 35A Revised Code of Washington along with certain
districts and municipal corporations.
2.3 It is to the mutual benefit of the Members and in the best public interest of
the Members to join together to establish this Joint Insurance Purchasing
Pool to accomplish the purpose set forth herein.
2.4 The Members have determined it is in their best interest to participate in
such a program.
3. Agreement.
In consideration of the foregoing and the mutual benefits to be derived herefrom,
the Members agree as follows:
3.1 Purpose of Agreement.
This Agreement is entered into by the Members pursuant to Chapter 39.34
Revised Code of Washington and Chapter 48.62 Revised Code of
Washington for the purpose of authorizing the creation of the Cities
INTERLOCAL AGREEMENT 1
Insurance Association of Washington (the "Association"), which shall be
organized as a non-profit corporation under Chapter 24.03 Revised Code
of Washington, to provide a Joint Insurance Purchasing Pool for the
benefit of cities and towns in the State of Washington organized and
existing pursuant to Title 35 or 35A Revised Code of Washington and
districts and other municipal corporations as defined by RCW
48.62.021(1). The Association shall, in exchange for the payment of
annual assessments and retroactive assessments by the. Regular
Members, administer a Joint Insurance Purchasing Pool wherein the
Members will pool their losses and claims and jointly purchase insurance
and administrative and other services through the Association including
claims adjusting, risk management consulting, loss prevention and related
services at levels established in each annual budget. It is also the
purpose of this Agreement to provide, to the extent permitted by law, for
the inclusion at a subsequent date of such additional cities and towns
organized and existing under Title 35 or 35A Revised Code of Washington
and districts and other municipal corporations as defined by RCW
48.62.021(1) as may desire to participate in the Joint Insurance
Purchasing Pool. It is also the purpose of this Agreement to provide, to
the extent permitted by law, that the Association may, at the discretion of
its Board of Directors, contract with other local governmental entities in the
State of Washington to provide, at a reasonable charge, administrative
and other services, including claims adjusting, risk management
consulting, Toss prevention and training.
3.2 Parties to Agreement.
3.2.1 Each party to this Agreement certifies that it intends to contract
with all parties who are signatories of this. Agreement on its
effective date and with such other parties as may later be added to
and become signatories to this Agreement pursuant to Section
3.12. Each party to this Agreement also certifies that the
withdrawal or cancellation of any party to this Agreement, pursuant
to Sections 3.13 or 3.14, shall not affect this Agreement or such
party's intent to contract pursuant to the terms of this Agreement
with the then remaining parties to this Agreement.
INTERLOCAL AGREEMENT 2
3.2.2 Types of Memberships.
There shall be two separate memberships in the Association.
Regular Members shall be made up of cities and towns. Regular
Members shall be owners of the corporation with full voting rights.
Associate Members are Public Entities approved for special
membership as per the By -Laws of the Association. Associate
Members shall have no ownership in the corporation and shall
have no vote in corporate matters.
3.3 Term of Agreement.
This Agreement shall become effective on September 1, 1988, and shall
remain in force until terminated pursuant to the provisions of Section 3.16.
3.4 Creation of Association.
3.4.1 Pursuant to Chapter 48.62 Revised Code of Washington and
Chapter 39.34 Revised Code of Washington, the Members
authorize the 'incorporation of the Association as a non-profit
corporation pursuant to Chapter 24.03 Revised Code of
Washington and articles of incorporation substantially in the form
attached ' as Exhibit B. The initial Board of Directors shall serve
until the first annual election of Board of Directors members, which
shall be held no later than 180 days after the effective date of this
Agreement. Each Regular Member shall become a Member of the
corporation. Associate Members shall be an associate of the
corporation. The regulation and management of the affairs of the
Association shall be governed by this Agreement, and corporate
By -Laws substantially in the form attached as Exhibit C, which
shall be adopted by the initial Board of Directors immediately upon
the incorporation of the Association. The Association's articles of
incorporation and By -Laws may be amended from time to time as
deemed necessary by the Members and Board of Directors
pursuant to the procedures set forth in Chapter 24.03 Revised
Code of Washington and Article 17 of the By -Laws.
3.4.2 Notwithstanding the foregoing, the Board of Directors shall have
no power or authority to incur any obligations on the part of, or to
be chargeable to, Members or Associates in excess of the
INTERLOCAL AGREEMENT 3
requirement of each Member or Associate to compensate the
Association or the insurance carrier with whom the Association has
affected a transaction as authorized by this Agreement, for the
individual Member's or Associate's share or obligation for the
purchase of insurance contemplated and authorized by this
Agreement. The debts, obligations and liabilities of any Member
or Associate shall not become the debts, obligations and liabilities
of other Members or Associates except as provided by Section
3.11 of this Agreement.
3.4.3 The insurance afforded to each Member or Associate pursuant to
this Agreement is limited to the insurance provided by any insurer
of the Association and the coverages defined in the policies of
insurance issued by any insurer of the Association. No coverage,
benefit or insurance in excess or different from that afforded by
any insurer of the Association is offered or afforded to any Member
or Associate by execution of this Agreement.
3.5 Powers of the Association.
The Members and Associates hereby delegate to the Association the
powers which are common to the Members or Associates and which are
reasonably necessary and proper to carry out the purposes and terms of
this Agreement. Such powers shall include, but not be limited to, the
power to:
3.5.1 Establish, and require compliance with, all terms of the Joint
Insurance Purchasing Pool to be provided by the Association
including the types and limits of the insurance coverage, the
methodology to be used to allocate the Association's costs among
Regular and Associate Members, and the amount of retroactive
assessments to be paid by each Regular Member;
3.5.2 Make and enter into contracts;
3.5.3 Incur debts, liabilities or obligations; •
3.5.4 Acquire, receive, hold or dispose of property, funds, services, and
other forms of assistance from persons, firms, corporations and
governmental entities;
INTERLOCAL AGREEMENT 4
3.5.5. Sue and be sued, complainand defend, in its corporate name;
3.5.6 Hire employees and agents; and
3.5.7 Employ a third party administrator to act in accordance with
Section.3.8.6.
The powers delegated to the Association shall be exercised pursuant to the
terms of this Agreement and in the manner provided by law.
3.6 Responsibilities of the Association.
The Association shall have the following responsibilities:
3.6.1 Within 30 days after the effective date of this Agreement, the
Board of Directors shall adopt a budget. A similar budget shall be
adopted by the Board of Directors prior to the beginning of each
fiscal year thereafter. Such budget shall specify the types and
limits of the insurance coverage to be provided through the
Association, the estimated annual assessment to be paid by each
Member or Associate, and the methodology to be used to allocate
the Association's costs, including deductible costs, administrative
costs, and Toss costs, to each Regular Member on a retroactive
basis and to establish the amount, if any, of each Regular
Member's retroactive assessment.
3.6.2 The Association will assist each Member's or Associate's risk
manager, upon request, with the implementation of risk
management programs.
3:6.3 The Association may provide loss, prevention, safety, and
consulting services to Members and Associates.
3.6.4 The Association will provide claims adjusting and subrogation
services for claims covered by the Association's Joint Insurance
Purchasing Pool.
3.6.5 The Association will provide Toss analysis for the Members and
Associates for the purpose of identifying high exposure operations
and evaluating proper levels of self -retention and deductibles.
INTERLOCAL AGREEMENT 5
3.6.6 The Association may conduct risk management audits to assess
each Member's and Associate's participation in the Joint Insurance
Purchasing Pool.
3.7 Responsibilities of Members.
Members shall have the following responsibilities:
3.7.1 The governing body of each Member or Associate shall designate
in writing a representative who shall be authorized to exercise the
Member's or Associate's voting rights with respect to the
Association and to act on behalf of the Member or Associate with
respect to all matters pertaining to the Association.
3.7.2 Each Member or Associate shall maintain its own set of records,
as a loss log, on all categories of loss to ensure accuracy of the
Association's loss reporting system and shall provide to the
Association a written report of all potential claims or losses within
14 days after they become known to the Member or Associate.
3.7.3 Each Member or Associate shall pay to the Association when due
all assessments and retroactive assessments established by the
Association pursuant to the terms of this Agreement. After the
withdrawal, cancellation, or termination of a Regular Member, such
Regular Member shall continue to pay to the Association when
due its share of any retroactive assessment established by the
Association until all claims, losses, costs, and other unpaid
liabilities relating to the Regular Member's period of membership
have been resolved fully.
3.7.4 - Each Member or Associate shall provide the Association with such
information or assistance as may be necessary for the Association
to carry out the Joint Insurance Purchasing Pool.
3.7.5 Each Member or Associate shall comply with all By -Laws,
resolutions, and policies by the Board of Directors and shall
cooperate with the Association, and any insurer of the Association,
in accomplishing the purposes of this Agreement.
INTERLOCAL AGREEMENT 6
3.7.6 Each Member or Associate shall participate as provided herein in
the selection of members of the Board of Directors.
3.8 Board of Directors' Authority.
3.8.1 The Association shall be governed by a Board of Directors. The
Board of Directors shall consist of ten members, to be selected
from the Regular Membership. Beginning with the second election
of members to the Board of Directors, the Regular Members of that
Committee shall be selected as follows: the area served by the
Association shall be divided into three geographic regions, with
each region represented by a number of representatives assigned
to the region based on the number of Regular Members from that
region.
3.8.2 To ensure that consistent management is provided for the
Association into the future, the initial Board of Directors members
shall have terms of one, two or three years. After the initial
election, all Board of Directors members will be elected for a three-
year term. Those terms will provide that four of the ten committee
members will be elected for full terms in two consecutive years and
three of the regular committee members will be elected for full
terms the third year.
3.8.3 The Board of Directors shall elect a Chair for each fiscal year. In
addition, the Board of Directors shall elect a Vice -Chair who will in
the absence of the Chair or, in the event of the Chair's inability or
refusal to act, perform the duties of the Chair.
3.8.4 Each member of the Board of Directors shall have one vote.
3.8.5 A majority of the members of the Board of Directors shall be
required to transact the business of the Board of Directors.
3.8.6 The Third Party Administrator shall have the general supervisory
control over the day to day decisions and administrative activities
of the Association. Activities shall include but not be limited to: (1)
negotiations and placement for insurance coverage contracts, (2)
disbursal of billings to individual Members and Associates for their
proportionate charges, (3) payment and management of claims
INTERLOCAL AGREEMENT 7
sustained by Members or Associates of the Association and liaison
with representatives acting on behalf of participating Members or
Associates.
3.8.7. Administrative costs and charges to be paid to the Third Party
Administrator shall be negotiated between the Board of Directors
and the Administrator.
3.8.8 Pool funds shall be administered by the Association Administrator
under the control and supervision of the Board of Directors. The
Administrator will be authorized to disburse funds for the
processing of covered claims and administrative. costs. All parties
having check writing authority on Association funds shall be
bonded to the Association in an amount established by the Board
of Directors.
3.8.9 The Board of Directors will provide for an audit of the accounts and
records of the Association. When such an audit of the accounts
and records is made by the Washington State Auditor's office, a
report thereof shall be filed as a record with the office of the
Administrator. Such reports shall be conducted and filed as
required by law. Costs of this audit shall be borne by the
Association and shall be considered as administrative costs.
3.8.10 Pursuant to the laws and regulations of the State of Washington,
the Association elects . to invest its assets in permissible
investments in a manner which is permitted by law, such manner
of investment to be selected from time to time by resolution of the
Board of Directors.
3.8.11. The Board of Directors shall establish an annual budget for the
Association. The Administrator shall submit a proposed budget for
the following fiscal year 60 days prior to the end of each fiscal year
to the Board of Directors. Fiscal years for the Association shall be
from September 1 through August 31 of the next calendar year.
The Board of Directors shall determine the estimated expenses
and costs to be incurred by the Association for the next fiscal year
and shall adopt a budget derived from. the Administrator's
proposed budget. The budget shall be in a form to provide the
following information for the Association as a whole: (1) beginning
INTERLOCAL AGREEMENT 8
and ending unreserved fund balance, (2) anticipated revenues in
detail, and (3) appropriations in detail. The Board of Directors
shall apportion that budget cost among the Members and
Associates. All payments due to the Association from Members or
Associates upon the basis of each budgeted assessment shall be
paid as invoiced for the fiscal year for which the assessment is
made.
3.8.12 The first budget and premium assessments shall be proposed by
the Administrator and approved by the Board of Directors not later
than 30 days after the effective date of this Agreement.
3.8.13 Any vacancies on the Board of Directors that occur during a term
of office shall be filled by an election of the Board of Directors by a
simple majority vote. Any replacement shall fill out the unexpired
term of the committee member replaced.
3.9 Service Representative Relationship.
3.9.1 Each participating Member or Associate of the Association shall
designate a servicing representative to act on their behalf in liaison
with the needs of the Association Administrator. Should a
participating Member choose not to designate a local servicing
representative, the Association shall supply such services in
accordance with a fee schedule adopted annually by the Board of
Directors. Service representatives' minimum duties and criteria
will be established by resolution of the Board of Directors and
reviewed annually. Duties will include, but are not limited to the
providing of local claims assistance; the securing of underwriting
information, completion of applications, updating of vehicle lists
and information and such other functions as the Board of Directors
may from time to time establish by resolution.
3.9.2 Any fees to be paid the servicing representative by each Member
or Associate will be established and paid by the Member or
Associate.
3.9.3 Each Member and Associate agrees to indemnify and hold the
Association, its Administrator, employees and agents, harmless
from and indemnify them against any claims, complaints, causes
INTERLOCAL AGREEMENT 9
of action or judgments arising from any allegation of a failure of the
performance or negligence on the part of the Member's or
Associate's servicing representative including. a failure to
communicate to or forward communications from the Association,
the Association's Administrator or any Association insurer. The
employment of a servicing representative and the scope of the
services performed by that representative is completely within the
domain of the Member or Associate. A Member or Associate acts
upon the advice and actions or inactions . of its servicing
representative at its sole risk.
3.10 Effective Date of Pooled InsurancePurchasing Program.
The Joint Insurance Purchasing Pool shall become effective on
September 1, 1988 or upon execution of this Agreement by two or more
Members, whichever occurs first.
3.11 Contingent Liability and Retroactive Assessments.
3.11.1 Pursuant to the provisions of Revised Code of Washington Section
48.62.060, each Regular Member shall be contingently liable for
the liabilities of the Association in the event the assets or
insurance of the Association are not sufficient to cover its liabilities.
Any actual or projected deficits of the Association shall be financed
through retroactive assessments levied against each Regular
Member in accordance with the following cost , allocation
methodology.
3.11.2 In the event the Association's assets should be insufficient to
cover liabilities, the Board of Directors shall direct the
Administrator to reassess Regular Members an amount according
to the following formula:
Member (Liability Due and Not
Reassessment = Serviced By Current
Amount • Pool Assets) + (Required
Reserve Account)
Member Contribution or
X Assessments Since Inception
TOTAL OF ALL Assessments
or Contributions Since Inception
The reassessment will be implemented only after a review of the
circumstances surrounding the deficiency by the Board of Directors
and approved by the Board of Directors. Should any Member leave
INTERLOCAL AGREEMENT 10
the Association and subsequently a deficiency exist in the period that
the entity was a Regular Member of the Association, the city or town
in question shall be assessed the amount that the Association is held
liable for the period in question.
3.12 New Members.
Members admitted as Regular Members of the Association after one year
from the effective date of the Joint Insurance Purchasing Pool may be
required to pay a reasonable share of the unreserved fund balance of the
Association and the costs necessary to analyze their loss data and
determine their premiums. Any costs to be paid by the Regular or
Associate new Members shall be determine by the Board of Directors.
3.13 Withdrawal.
Any Member or Associate may withdraw only at the end of the
Association's fiscal year (August 31) and only after it has given the
Association written notice prior to September 1 of the preceding calendar
year -of its decision to withdraw from this Agreement.'
3.14 Cancellation.
The Association shall have the right to cancel any Member's or
Associate's participation in the Joint Insurance Purchasing Pool upon the
affirmative vote of at least three-fourths of the whole Board of Directors at
any regular or special meeting. Any Member or Associate so canceled
shall be given 180 days' notice prior to the effective date of the
cancellation.
3.15 Effect of Withdrawal or Cancellation.
Neither the withdrawal nor the cancellation of any Member or Associate
shall cause the termination of this Agreement. No Member or Associate by
withdrawing or having its membership canceled shall be entitled to
payment or return of any assessment paid by the Member or Associate to
the Association or any Association insurer, or to any distribution of the
Association's assets. The withdrawal or cancellation of any Regular
Member after the effective date of the Joint Insurance Purchasing Pool
shall not terminate its responsibility to contribute its share, of any
INTERLOCAL AGREEMENT 11
assessments or retroactive assessments established by the Association
until all claims, losses, costs, and other unpaid liabilities relating to the
Regular Member's period of membership have been resolved fully and a
determination of the final amount of payment owed by the Regular
Member or credit due the Regular Member for the period of its
membership has been made by the Board of Directors. In making this
determination, the Board of Directors shall use the cost allocation
methodology or methodologies established by the budgets adopted
pursuant to the requirement of Section 3.6.1 hereof. It is the intent of this
Agreement that no assets of the Association shall be owned by Associate
Members nor shall Associate Members be responsible for debts incurred
by the Association other than insurance premiums, assessments and
claim deductibles attributed to the Associate Member's membership.
3.16 Termination and Distribution.
3.16.1 Termination.
This Agreement may be terminated at any time. by the written
consent of three-fourths of the Members. However, this
Agreement and the Association shall continue to exist for the
purpose of paying all debts and liabilities, disposing of all claims,
distributing net assets, and otherwise winding up and liquidating
the affairs of the Association. The Board of Directors is vested
with all powers of the Association during such winding up and
liquidation, including the power to require Regular Members,
including those Regular Members who withdrew prior to the
termination date, to pay any retroactive assessments deemed
necessary by the Board of Directors to fully resolve and dispose
of all claims, losses and liabilities covered by this Agreement.
The retroactive assessment shall be determined on the basis of
the cost allocation methodology or methodologies established by
the resolutions adopted pursuant to the requirements of Sections
3.6.1 and 3.11.2 hereof.
3.16.2 Distribution.
Upon termination of this Agreement and full satisfaction of all
outstanding claims, losses, and liabilities of the Association, all
assets of the Association shall be distributed among the Regular
INTERLOCAL AGREEMENT 12
Members who were Members of the Joint Insurance Purchasing
Pool, on the date action to terminate this Agreement was taken, in
proportion to the cash payments made by each Regular Member
during the term of this Agreement. The Board of Directors shall
determine such distribution within six months after the last
pending claim or loss covered by this Agreement has been
resolved fully.
3.17 Notices.
Notice to Members or Associates hereunder shall be sufficient if mailed to
the office of the last official address of the respective Member.
3.18 Amendment.
This Agreement may be amended at any time by the approval of three-
fourths of the Members present or voting at any meeting of the Members.
All amendments shall be in writing. Amendments may be proposed by the
Board of Directors. Any proposed amendment to this agreement adopted
by three-fourths of the whole Board of Directors shall be deemed adopted
subject to review by the Members. If four -tenths of the Members present
or voting at any meeting of the Members (called in accordance with Article
3 of the By -Laws) vote to repeal any amendment adopted by three-fourths
of the whole Board of Directors, that amendment is deemed repealed.
3.19 Enforcement.
The Association is hereby granted the authority to enforce the terms of
this Agreement. In the event action is instituted to enforce any term of this
Agreement, or any term of the By -Laws against any Member or Associate
or previous Member or Associate, the Member or Associate or previous
Member or Associate agrees to pay such sums as the court may fix as
reasonable attorneys' fees and costs in said action including fees and
costs on appeal.
3.20 Default and Remedies.
If any Member or Associate fails to perform any term or condition of this
Agreement and such failure continues for a period of sixty days after the
Association has given the Member or Associate written notice of such
INTERLOCAL AGREEMENT 13
failure, the Member or Associate shall be in default hereunder. Upon
default, the Association may immediately cancel the Member's or
Associate's membership effective immediately without further notice, or
exercise any remedies herein provided or otherwise provided by law. The
rights and remedies of the Association are cumulative in nature and
pursuit of any particular remedy shall not be deemed an election of
remedies or a waiver of any other remedies available hereunder or
otherwise available by law.
3.21 No Waivers.
No waiver or forbearance of a breach of any covenant, term, or condition
of this Agreement shall be construed to be a waiver or forbearance of any
other or subsequent breach of the same or of any other covenant, term or
condition, and the acceptance of any performance hereunder, or the
payment of any sum of money after the same has become due or at a
time when any other default exists hereunder, shall not constitute waiver
of the right to demand payment of all other sums owing or a waiver of any
other default then or thereafter existing.
3.22 Prohibition Against Assignment.
No Member or Associate may assign any right, claim or interest it may
have under this Agreement, except to a successor entity following a
statutory reorganization. Should any Member or Associate reorganize in
accordance with the statutes of the State of Washington, the successor in
interest, or successors in. interest, .may be substituted as a Member or
Associate or Members or Associates upon approval of the Board of
Directors. No creditor, assignee or third party beneficiary of any Member
or Associate shall have any right, claim or title to any part, share, interest,
fund premium or asset of the Association.
3.23 Entire Agreement.
This Agreement contains the entire understanding of the parties, and they
acknowledge that there is no other written or oral understanding or
promise between them with respect to the matters addressed by this
Agreement. This Agreement may not be altered, amended, or revoked
except pursuant to the provision of Section 3.18.
INTERLOCAL AGREEMENT 14
3.24 Severability.
If any 'term or provision of this Agreement shall to any extent be
determined by a court of competent jurisdiction to be invalid or
unenforceable, the remainder of this Agreement shall not be affected
thereby. and each term and provision in this Agreement shall be valid and
be enforceable to the fullest extent permitted by law.
3.25 Time.
Time is. of the essence of this Agreement and each and every provision
hereof.
3.26 Section Headings.
The section headings in this Agreement are inserted for convenience only
and are not intended to be used in the interpretation of the contents of the
sections they introduce.
3.27 Governing Law.
This Agreement shall be governed by and construed in accordance with
the laws of the State of Washington.
3.28 Counterpart Copies.
This Agreement may be signed in counterpart or duplicate copies, and any
signed counterpart or duplicate copy shall be equivalent to a signed
original for all purposes.
INTERLOCAL AGREEMENT 15
4. Execution.
The parties have executed this Agreement by authorized officials thereof.
City of Yakima
Name of City or Town or Public Entity
129 N. 2nd Avenue
Mailing Address
Street Address (if different from above)
Yakima, WA
City
By
98901 509 575-6000
Zip
Phone
Signature of Authorized Official
R. A. Zais, Jr. City Manager
(Print or Type Name)
Title
(11 ZCiC
Date
CITY CONTRAC r NO: /D
RESOLUTION NO:-RO/Q'/O a
INTERLOCAL AGREEMENT 16
EXHIBIT A
List of Members
STATE of WASHINGTON SECRETARY' of STATE
1, Ralph Munro, Secretary of State of the State of Washington and custodian of its seal,
hereby issue this
a Washington
CERTIFICATE OF INCORPORATION
to
CITIES INSURANCE ASSOCIATION OF WASHINGTON
Non Profit
corporation. Articles of Incorporation were
filed for record in this office on the date indicated below.
U. E3. I.Number: 601 164 282 Date: February 21, 1989
Given under my hand and the seal of the State
of Washington, at Olympia, the State Capitol.
Ralph Munro, Secretary of State
2-410035-6
SSP 57
n ao63
00124 MAR 19
&/ /19
ARTICLES OF INCORPORATION
OF
CITIES INSURANCE ASSOCIATION OF WASHINGTON
FLED
FEB 2 1 1989
SECRETARY OF STAT
STATE OF WASNINGT
The undersigned, for the purpose of forming a corporation under the non-profit corporation
laws of the state of Washington, Chapter 24.03 Revised Code of Washington, states the following:
ARTICLE I
Name
The name of the corporation shall be "CMES INSURANCE ASSOCIATION OF
WASHINGTON."
ARTICLE II
Duration
The term of existence shall be perpetual.'
ARTICLE 111
Purposes
The purposes for which the corporation is organized are as follows:
1. To provide, pursuant to Chapter 48.62 Revised Code of Washington for the joint
purchasing of insurance and/or joint hiring or contracting for risk management services on behalf
of cities and towns organized and existing pursuant to Title 35 or 35A Revised Code of Washington
(the "Cities and Towns").
2. To do, either directly or indirectly, either alone or in conjunction or cooperation with
others, any and all lawful acts and things and to engage in any and all lawful activities permissible
for non-profit corporations which may be necessary, useful, suitable, desirable, or proper for the
furtherance, accomplishment, fostering or attainment of any and all of the purposes for which the
corporation is organized, and to aid or assist other organizations whose activities are such as to
further, accomplish, foster or attain any of such purposes.
ARTICLE IV
Registered Office and Agent
The name of the registered agent of the corporation is Dick Canfield.
AR IICLES OF INCORPORATION
198.; 1964 nnisl
The registered office address, which is also the address of the registered agent is Cities
Insurance Association of Washington, 121 - 1st Avenue SW, Suite 1, Ephrata, WA 98823.
ARTICLE V
Members
The corporation shall have one class of members. Eligibility for membership of the
corporation shall be limited to the cities and towns. The criteria and procedures for selection of
members of the corporation shall be determined by the Board of Directors of the corporation.
ARTICLE VI
Board of Directors
There shall be three directors serving as the initial Board of Directors. Their names and
addresses are as follows:
Michael Konen
Jim Cherf
Maxine Williams
City of Quincy
P. 0. Box 338
Quincy, WA 98848
City of Ephrata
121 Alder SW
Ephrata, WA 98823
City of Coulee Dam
300 Lincoln Avenue
P. 0. Box 156
Coulee Dam, WA 99116
ARTICLE VII
Board of Directors Liability
A director shall have no liability to the corporation or its members for monetary damages
for conduct as a director, except for acts or omissions that involve intentional misconduct by the
director, or a knowing violation of law by the director, or for any transaction from which the
director will personally receive a benefit in money, property, or services to which the director is
not legally entitled. If the Washington Non -Profit Corporation Act is hereafter amended to
authorize corporate action further limiting or eliminating the personal liability of directors, then the
liability of a director shall be limited or eliminated to the full extent permitted by the Washington
Non -Profit Corporation Act, as so amended. Any repeal or modification of this Article shall not
adversely affect any right or protection of a director of the corporation existing at the time of such
repeal or modification for or with respect to an act or omission of such director occurring prior to
such repeal or modification.
ARTICLES OF INCORPORATION 2
1q89 1964 2'887 00E2
ARTICLE 'VIII
Dissolution
Upon dissolution of the corporation, the Board of Directors shall, after paying or making
provision for the payment of all of the liabilities of the corporation, dispose of all of the assets of
the corporation to the cities and towns that were members of the corporation at any time during
the existence of the corporation in proportion to the cash payments and property contributions
made by each member over the life of the corporation.
ARTICLE IX
Incorporator
The name and address of each incorporator are as follows:
Dick Canfield 127 - 1st Avenue SW, Suite 1
Ephrata, WA 98823
CONSENT TO APPOINTMENT AS REGISTERED AGENT
I, DICK CANFIELD, hereby consent to serve as registered agent, in the state of
Washington, for the corporation herein named. I understand that as agent for the corporation, it
will be my responsibility to receive service of process in the name of the corporation; to forward
all mail to the corporation; and to immediately notify the office of the Secretary of State in the
event of my resignation or of any change in the registered office address of the corporation for
which I am agent.
(date)
WITNESS
WHEREOF, the incorporator has hereunto set his hand thi day of
ARTICLES OF INCORPORATION
Signature of nco
1989 1964 2887 0063
t
Cities Insurance Association of Washington
1. Town of Albion
2. Town of Almira
3. City of Asotin
4. City of Bingen
5. City of Black Diamond
6. City of Blaine
7. City of Brewster
8. City of Buckley
9. City of Chewelah
10. City of Colfax
11. City of College Place
12. Town of Colton
13. City of Colville
14. City of Connell
15. City of Cosmopolis
16. Town of Coulee Dam
17. Town of Creston
18. City of Davenport
19. City of Dayton
20. City of Duvall
21. City of East Wenatchee
22. Town of Electric City
23. Town of Elmer City
24. Town of Endicott
25. City of Entiat
26. City of Ephrata
27. City of Everson
28. City of Fircrest
29. City of Grand Coulee
30. City of Granite Falls
31. Town of Hartline
32. City of Ilwaco
33. Town of lone
34. City of Kahlotus
35. City of Kennewick
36. City of Kittitas
37. Town of Krupp
38. Town of LaCrosse
39. City of Liberty Lake
40. Town of Lind
41. Town of Lyman
42. City of Lynden
43. City of Lynnwood
44. Town of Malden
45. Town of Mansfield
46. Town of Marcus
47. City of Mattawa
48. Town of Metaline Falls
49. City of Millwood
50. City of Moxee
51. City of Napavine
CITIES INSURANCE ASSOCIATION OF WASHINGTON
Members
2009 - 2010
52. Town of Nespelem
53. City of Newport
54. City of Nooksack
55. City of Oakville
56. City of Okanogan .
57. City of Omak
58. City of Oroville
59. City of Pacific
60. City of Palouse
61. City of Prosser
62. City of Quincy
63. Town of Reardan
64. City of Redmond
65. City of Republic
66. City of Ritzville
67. Town of Riverside
68. City of Rock Island
69. City of Royal City
70. Town of Saint John
71. City of Sammamish
72. City of Sea -Tac
73. City of Sedro-Woolley / Sedro Woolley FD
74. City of Selah.
75. City of South Bend
76. Town of South Cle Elum
77. City of Sprague
78. Town of Starbuck
79. City of Stevenson
80. City of Sultan
81. City of Sumas
82. City of Sunnyside
83. City of Tekoa
84. City of Tieton
85. City of Tonasket
86. Town of Uniontown
87. City of Waitsburg
88. Town of Washtucna
89. Town of Waterville
90.. City of White Salmon
91. Town of Wilbur
92. Town of Wilkeson
93. City of Woodland
94. City of Yakima
Revised 06-10-10
•
BY-LAWS
OF
CITIES INSURANCE ASSOCIATION,
OF WASHINGTON
TABLE OF CONTENTS
FOR
BY-LAWS OF
THE CITIES INSURANCE ASSOCIATION OF WASHINGTON
ARTICLE 1 Offices 1
ARTICLE 2 Members 1
Section 2.1 Classes of Members and Qualifications for Membership 1
Section 2.2 Member Representative 2
Section 2.3 Selection of Additional Members 2
Section 2.4 Voting Rights and Procedures 2
Section 2.5 Cancellation of Membership 2
Section 2.6 Resignation 2
Section 2.7 Transfer of Membership 2
ARTICLE 3 Meetings of Members 3
Section 3.1 Annual Meeting 3
Section 3.2 Special Meetings 3
Section 3.3 Place of Meeting 3
Section 3.4 Notice of Meetings 3
Section 3.5 Action by Members Without a Meeting 3
Section 3.6 Quorum 4
Section 3.7 Manner of Acting 4
Section 3.8 Rule of Procedure for Meetings 4
ARTICLE 4 The Board of Directors 4
Section 4.1 General Powers 4
Section 4.2 Tenure and Qualifications 4
Section 4.3 Voluntary Resignation 4
Section 4.4 Regular Meetings 4
Section 4.5 Special Meetings 5
Section 4.6 Notice 5
Section 4.7 Quorum 5
Section 4.8 Manner of Acting 6
Section 4.9 Rule of Procedures for Meetings 6
Section 4.10 Compensation 6
Section 4.11 Action by The Board of Directors Members Without a Meeting 6
•
ARTICLE 5 Officers 6
Section 5.1 Officers 6
Section 5.2 Election and Term of Office 6
Section 5.3 Removal 7
Section 5.4 Vacancies 7
Section 5.5 Chair 7
Section 5.6 Vice Chair 7
Section 5.7 Fiscal Officer 7
Section 5.8 Third Party Administrator 7
ARTICLE 6 Committees 8
Section 6.1 Committees of the The Board of Directors 8
Section 6.2 Other Committees 8
Section 6.3 Term of Office 9
Section 6.4 Chairman _ 9
Section 6.5 Vacancies 9
ARTICLE 7 Administrator 9
Section 7.1 Appointment and Removal 9
Section 7.2 Powers and Duties 9
Section 7.3 Compensation 9
ARTICLE 8 Indemnification 10
ARTICLE 9 Coverage Determinations and Appeal Rights 11
Section 9.1 Coverage Determinations 11
Section 9.2 Appeal 13
ARTICLE 10 Conflict of Interest and Appearance of Fairness Procedure 15
ARTICLE 11 Contracts, Checks, Deposits and Funds ' 15
Section 11.1 Contracts 15
Section 11.2 Checks, Drafts, etc. 15
Section 11.3 Deposits = 16
Section 11.4 Gifts 16
Section 11.5 L&I Retro 16
ARTICLE 12 Certificates of Membership 16
Section 12.1 Certificates of Membership 16
Section 12.2 Issuance of Certificates 17
ARTICLE 13 Books and Records 17
ARTICLE 14 Fiscal Year 17
ARTICLE 15 Seal 17
ARTICLE 16 Waiver of Notice 17
ARTICLE 17 Amendments to By -Laws 18
ii
BY-LAWS
OF
CITIES INSURANCE ASSOCIATION OF WASHINGTON
ARTICLE 1
Offices
The principal office of the corporation shall be located within the State of
Washington at the offices of the Third Party Administrator. The corporation may
have such other offices, either within or without the State of Washington, as the
Board of Directors may determine or as the affairs of the corporation may require
from time to time.
The corporation shall have and continuously maintain in the State of
Washington a registered office, and a registered agent whose office is identical
with such registered office, as required by the Washington Non -Profit Corporation
Act, Chapter 24.03 Revised Code of Washington. The registered office may be,
but need not be, identical with the principal office of the corporation, and the
address of the registered office may be changed from time to time by the Board
of Directors.
ARTICLE 2
Members
Section 2.1. Classes of Members and Qualifications for
Membership. The corporation shall have two classes of Members, Regular
and Associate. Eligibility for Regular Membership in the corporation shall be
limited to cities and towns organized and existing pursuant to Title 35 or 35A
Revised Code of Washington. Cities and towns wishing to become Members of
the corporation shall submit an application to the corporation on a form
prescribed by the corporation. Cities and towns elected to membership pursuant
to Section 3 below shall be required to become a signatory to the Interlocal
agreement creating the Cities Insurance Association of Washington (the
"Agreement") before such membership shall become effective.
Eligibility for Associate membership shall be limited to districts and municipal
corporations as defined by 48.62.021(1) which meet the underwriting and
classification criteria established by the Board of Directors. Each Associate
Member must become a signature of the Associate Membership Agreement by a
Resolution adopted by the entity's Board or Commission.
p:\data\!cities\!cities\by!aw4.doc 1
•
Section 2.2. Member Representative. Each Regular Member
shall appoint one representative who shall be authorized to exercise the
Member's voting rights in the corporation, if any, and to act on behalf of the
Member with respect to aII matters pertaining to the corporation. The name of
the person appointed as a Member's representative shall be submitted in writing
to the corporation. A change in a Member's appointed representative shall not
become effective until the corporation has received written notice of such
change. Each Member may also select an alternate Member representative to
serve and act in the absence of the Member's representative.
Section 2.3. Selection of Additional Members. Additional Regular
Members shall be approved by the Board of Directors. An affirmative majority
vote of the Board of Directors members present shall be. required for selection.
Associate Members shall be approved by the Director or Third Party
Administrator subject to the criteria established by the Board of Directors. •
Section 2.4. Voting Rights and Procedures. Each Regular
Member shall be entitled toone vote on each matter submitted to a vote of the
Regular Members unless a record date for voting purposes is fixed by the Board
of Directors. Members that are Regular Members on the day of the meeting of
the membership shall be entitled to vote at such meeting. Elections and other
matters submitted to the vote of Regular Members may, at the discretion of the
Chair of .the corporation, be conducted by mail ballot. Each Regular Member
shall be entitled to one vote on each matter submitted to a vote of the Regular
Members.
Section 2.5. Cancellation of Membership. • The membership of
any Member or Associate of the corporation may be canceled pursuant to the
provisions of. Section 3.14 of the Agreement.
Section 2.6. Resignation. Any Member or Associate may resign
from the ,corporation- pursuant to the procedures and limitations specified in
Sections 3.13 and 3.15 of the Agreement.
Section 2.7. Transfer of Membership. . Membership in this
corporation is not transferable or assignable.
p:\data\!cities\!cities\bylaw4.doc 2
ARTICLE 3
Meetings of Members
Section 3.1. Annual Meeting. At the discretion of the Board Of
Directors an annual meeting of the Regular Members shall be held on the last
Friday in the month of August in each year, if needed, with a date designated in
writing by the Chair of the Board of Directors thirty days before the meeting, at
such time and place designated in writing by the Chair, for the purpose of
transacting such business as may come before the meeting. .
Section 3.2. Special Meetings. Special meetings of the
Members or Associates may be called by the Board of Directors. The Board of
Directors or not Tess than one-fourth of the Regular Members having voting
rights.
Section 3.3. Place of Meeting. The The Board of Directors may
designate any place, either within or without the State of Washington, as the
place of meeting for any annual meeting or for any special meeting called by the
Board of Directors. If no designation is made or if a special meeting be otherwise
called, the place of meeting shall be the office of the Third Party Administrator in
the State of Washington. If all of the Members shall meet at any time and place,
either within or without the State of Washington, and consent to the holding of a
meeting, such meeting shall be valid without call or notice and any corporate
action may be taken at such meeting. Members of the corporation may
participate in a meeting of Members by means of a conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other at the same time and participation by such
means shall constitute presence in person at a meeting.
Section 3.4. Notice of Meetings. Written notice stating the place,
day and hour of any meeting of Members shall be delivered, either personally or
by mail, to each Member entitled to vote at such meeting, not less than ten nor
more than fifty days before the date of such meeting, by or at the direction of the
Chair of the Board of Directors, or the Third Party Administrator or persons
calling the meeting. In case of a special meeting or when required by statute or
by these By -Laws, the purpose or purposes for which the meeting is called shall
be stated in the notice. If mailed, the notice of a meeting shall be deemed to be
delivered when deposited in the United States mail addressed to the Member at
the address of its representative as it appears on the records of the corporation,
with postage thereon prepaid.
p:\data\!cities\!cities\by!aw4.doc 3
Section 3.5. Actions by Members Without a Meeting. Any action required by
law to be taken at a meeting of the Members, or any action which may be taken
at a meeting of Members, may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the Members entitled to
vote with respect to the subject matter thereof.
Section 3.6. Quorum. The Members holding ten percent of the
votes which may be cast at any meeting shall constitute a quorum at such
meeting. If a quorum is not present at any meeting of Members, a majority of the
Members present may adjourn the meeting from time to time without further
notice.
Section 3.7. Manner of Acting. A majority of the votes
entitled to be cast on a matter to be voted upon by the Members present at a
meeting at which a quorum is present shall be necessary for the adoption thereof
unless a greater proportion is required by law or by these By -Laws.
Section 3.8. Rule of Procedure for Meetings. All meetings of
the membership shall be conducted in accordance with Roberts' Rules of Order,
except where such rules are in conflict with applicable law, the Agreement, or
these By -Laws.
ARTICLE 4
The Board of Directors
Section 4.1. General Powers. The affairs of the corporation
shall be managed by its Board of Directors
Section 4.2. Tenure and Qualifications. The Board of Directors
shall be comprised of ten representatives of Regular Members of the corporation
elected for three year terms as provided in the Agreement.
Section 4.3. Voluntary Resignation. The Board of Directors
member who is absent from three consecutive Board of Directors meetings or
one-half of the Board of Directors meetings during the year without acceptable
excuse shall be deemed to have voluntarily resigned from the Board of Directors.
At any meeting of the Board of Director sat which there are absences, the Board
of Directors shall determine if they are excused.
p:\data\!cities\!cities\by!aw4.doc 4
Section 4.4. Regular Meetings. A regular annual meeting of
the Board of Directors shall be held without other notice than this by-law, in
conjunction with, and at the same place as, the annual meeting of Members.
The Board of Directors may provide by resolution the time and place, either
within or without the State of Washington, for the holding of additional regular
meetings of the Board of Directors, or of regular meetings of any committee of
the Board of Directors, without notice other than such resolution.
Section 4.5. Special Meetings. Special meetings of the Board of Directors may
be called by or at the request of the Chair or any three Board of Directors
members. Special meetings of any committee of the Board of Directors may be
called by or at the request of the Chair of the Board of Directors or Chairman of
the committee or any two members of the committee. The person or persons
authorized to call special meetings of the Board of Directors or of any
committee of the Board of Directors may fix any place, either within or without
the State of Washington, as the place for holding any special meeting of the
Board of Directors or committee called by them.
Section 4.6. Notice. Notice of any special meeting of the
Board of Directors or any committee of the Board of Directors shall be given at
least two days prior to the meeting by written notice delivered personally or sent
by mail, facsimile transmission or telegram to each committee member at the
member's address as shown by the records of the corporation. If mailed, such
notice shall be deemed to be delivered when deposited in the United States mail
in a sealed envelope so addressed, with postage thereon prepaid. If notice be
given by telegram, such notice shall be deemed to be delivered when the tele-
gram is delivered to the telegraph company. If notice be given by facsimile
transmission, such notice shall be deemed to be delivered 24 hours after the
transmission so long- as no error was received during the transmission. Any
committee member may waive notice of any meeting. The attendance of a
committee member at any meeting shall constitute a waiver of notice of such
meeting, except where a committee member attends a meeting for the express
purpose of objecting to the transaction of any business because the meeting is
not lawfully called or convened. Neither the business to be transacted at, nor the
purpose of, any regular or special meeting of the Board of Directors or any
committee of the Board of Directors need be specified in the notice or waiver of
notice of such meeting, unless specifically required by law or by these By -Laws.
Members of the Board of Directors or any committee of the Board of Directors
may participate in a meeting of such committee by means of a conference
telephone or similar communications equipment by means of which all persons
participating in the meeting can hear each other at the same time and
participation by such means shall constitute presence in person at a meeting.
p:\data\! cities\! ci ties\by!aw4.doc
Section 4.7. Quorum. A majority of the Board of Directors shall
constitute a quorum for the transacting of any business of the Board of Directors.
However, if Tess than a majority of the Board of Directors members are present
at said meeting, a majority of the Board of Directors members present may
adjourn the meeting from time to time without further notice.
Section 4.8. Manner of Acting. The act of a majority of the
Board of Directors members, or a majority of the members of any committee of
the Board of Directors,' present at a meeting at which a quorum is present shall
be the act of the Board of Directors or its committee, unless the act of a greater
number is required by law or by these By -Laws.
Section 4.9. Rule of Procedures for Meetings. AH meetings of
the Board of Directors or a committee of the Board of Directors shall be
conducted in accordance with Roberts' Rules of Order, except where tsuch rules
are in conflict with applicable law, and Agreement, or these By -Laws.
Section 4.10. Compensation. The Board of Directors members
or its committee members as such shall not receive any stated salaries for their
services, but by resolution of the Board of Directors a fixed sum and expenses of
attendance, if any, may be allowed for attendance at each regular or special
meeting of the Board of Directors or any of its committees.
Section 4.11. Action by The Board of Directors Members Without a
Meeting. Any action required by law to be taken at a meeting of the Board of
Directors or any of its committees, or any action which may be taken at a
meeting of the Board of Directors or any of its committees, may be taken without
a meeting ifa consent in writing, setting forth the action so taken, shall be signed
by all of the -Board of Directors members or committee members.
p:\data\!cities\!cities\bylaw4.doc 6
ARTICLE 5
Officers
Section 5.1. Officers. The officers of the corporation shall be a
Chair, a Vice Chair, a Fiscal Officer and such other officers as may be elected in
accordance with the provisions of this article. The Board of Directors may elect
or appoint such other officers, as it shall deem desirable, such officers to have
the authority to perform the duties prescribed, from time to time, by the Board of
Directors . No two or more offices may be held by the same person.
Section 5.2. Election and Term of Office. The officers of the
corporation shall be elected every year by the Board of Directors from among its
Regular members prior to the beginning of the fiscal year. If the election of
officers shall not be held at such meeting, such election shall be held as soon
thereafter as convenient. New offices may be created and filled at any meeting
of the Board of Directors. Each officer shall hold office until a successor shall
have been duly elected and qualified.
Section 5.3. Removal. Any officer elected or appointed by the
Board of Directors may be removed by the Board of Directors whenever in its
judgment the best interests of the corporation would be served thereby.
Section 5.4. • Vacancies. A vacancy in any office because of
death, resignation, removal, disqualification or otherwise, may be filled by the
Board of Directors for the unexpired portion of the term.
Section 5.5. Chair. The Chair of the Board of Directors shall be
the principal executive officer of the corporation and shall in general supervise
and control all of the business and affairs of the corporation. He or she shall
preside at all meetings of the Members and the Board of Directors. He or she
may sign, with any other proper officer of the corporation authorized by the Board
of Directors, any deeds, mortgages, bonds, contracts, or other instruments which
the Board of Directors has authorized to be executed, except in cases when the
signing and execution thereof shall be expressly delegated by the Board of
Directors or by these By -Laws or by statute to some other officer or agent of the
corporation; and in general he or she shall perform all duties incident to the office
of Chairman and such other duties as may be prescribed by the Board of
Directors from time to time.
Section 5.6. Vice Chair. In the absence of the Chair or in the
event of the Chair's inability or refusal to act, the Vice Chair shall perform the
duties of the Chair, and when so acting, shall have all the powers of and be
subject to all the restrictions upon the Chair. The Vice Chair shall perform such
other duties as from time to time may be assigned to him or her by the Chair or
by the Board of Directors.
p:\data\!cities\!cities\by!aw4.doc 7
Section 5.7. Fiscal Officer. The Fiscal Officer shall . be
responsible to act .with the Third Party Administrator as directed by the Board of
Directors to carry out The Board of Directors fiscal policies and procedures.
Section 5.8. Third Party Administrator. The Third Party
Administrator shall have charge and custody of and be responsible for all funds
and securities of the corporation; receive and give receipts for moneys due and
payable to the corporation from any source whatsoever, and deposit all such
moneys in the name of the corporation in such banks, trust companies or other
depositories as shall be selected in accordance with the provisions of Article 7 of
these By -Laws; and in general perform such other duties as from time to time
may be assigned to him by the Chair or by the Board of Directors. The Third.
Party Administrator shall keep the minutes of the meetings of the Members, the
Board of Directors, and any committees of the Board of Directors, in one or more
books provided for that purpose; see that all notices are duly given in accordance
with the provisions of these By -Laws or as required by law; be custodian of the
corporate records and. of :the seal of the corporation and see that the seal of the
corporation is affixed to all documents, the execution of which on behalf of the
corporation under its seal is duly authorized in accordance with the provisions of
these By -Laws; keep a register of the post office address of each Member and
each representative of each Member which shall be furnished to the Third Party
Administrator by each Member. The Third Party Administrator shall be bonded in
an amount determined by the Board of Directors.
ARTICLE 6
Committees
Section 6.1. Committees of the Board of Directors. The Board
of Directors may designate and appoint one or more committees, each of which
shall consist of two or more The Board of Directors members, which committees,
to the extent provided in said resolution, shall have and exercise the authority of
the Board of Directors in the management of the corporation, except that no
such committee shall have the authority of the Board of Directors in reference to
amending, altering or repealing the By -Laws; electing, appointing or removing
any member of any such committee; amending the articles of incorporation;
restating articles of incorporation; adopting a plan of merger or adopting a plan of
consolidation with another corporation; authorizing the sale, lease, exchange or
mortgage of all or substantially all of the property and assets of the corporation;
authorizing the voluntary dissolution of the corporation or revoking proceedings
therefor; adopting a plan for the distribution of the assets of the corporation;
p:\data\!cities\!cities\by!aw4.doc 8
or amending, altering or repealing any resolution of the Board of Directors which
by its terms provides that it shall not be amended, altered or repealed by such
committee or doing any act in conflict with the duties of the Board of Directors as
set forth in the Agreement. The designation and appointment of any such
committee and the delegation thereto of authority shall not operate to relieve the
Board of Directors, or any. individual The Board of Directors member, of any
responsibility imposed upon it or him or her by law.
Section 6.2. Other Committees. Other Committees not having
and exercising the authority of the Board of Directors in the management of the
corporation may be appointed in such manner as may be designated by a reso-
lution adopted by a majority of the Board of Directors members present at a
meeting at which a quorum is present. Except as otherwise provided in such
resolution, members of each such committee shall be representatives of
Members of the corporation, and the Chair of the corporation shall appoint the
members thereof. Any member thereof may be removed by the
person or persons authorized to appoint such member whenever in their
judgment the best interests of the corporation shall be served by such removal.
Section 6.3. Term of Office. Each member of a committee
shall continue as such until the next annual meeting of the Members of the
corporation and until a successor is appointed, unless the committee shall be
sooner terminated, or unless such member be removed from such committee, or
unless such member shall cease to qualify as a member thereof.
Section 6.4. Chairman. One member of each committee shall
be appointed chairman by the person or persons authorized to appoint the
members thereof.
Section 6.5. Vacancies. Vacancies in the membership of any
committee may be filled by appointments made in the same manner as provided
in the case of the original appointments.
ARTICLE 7
Administrator
Section 7.1. Appointment and Removal. The Board of
Directors shall appoint and employ a Third Party Administrator of the corporation
(the "Administrator"), who shall be appointed and removable by the Board of
Directors pursuant to whatever employment arrangement the Board of Directors
shall have agreed to with the Administrator in writing.
Section 7.2. Powers and Duties. The Administrator shall be the
chief administrator of the corporation and shall have control of the administrative
functions of the corporation. He or she shall carry out the orders of the Board of
p:\data\!cities\!cities\bylaw4.doc 9
Directors andshall be responsible to. the Board of Directors for the efficient
administration of the affairs of the corporation. The Administrator shall keep the
Board of Directors fully advised of the financial condition and needs of the
corporation.
Section 7.3. Compensation. The Administrator shall receive
such compensation as the Board of Directors shall fix by contract or resolution.
ARTICLE 8
Indemnification
The Board of Directors Members of the corporation; its directors, officers,
employees and the Administrator, its agents, directors, officers and employees
shall:
Use reasonable and ordinary care in the exercise of their duties as
relates to the corporation;
,2. Be afforded all . of the privileges and immunities that attach
generally to governmental officers;
3. Not be liable for, and be held harmless and defended by the corpo-
ration, for any act of negligence, any mistake of judgment or any
other action, made, taken or omitted in good faith and on behalf of
the corporation;
4. Not be liable for any .loss incurred through investment of funds or
failure to invest such funds so long as they are invested according
to the direction of the Board of Directors.
The corporation may purchase, subject to availability and cost, insurance
providing coverage for The Board of Directors members and the Administrator.
The corporation shall indemnify every person who was or is a party or is or
was threatened to be made a party to any action, suit, or proceeding, whether
civil, criminal, administrative or investigative, by reason of the fact that he or she
is or was a member of the Board of Directors, any other committee of the
corporation, employee, or agent of the corporation, or the Administrator, its
agents, directors, officers or employees in the furtherance of corporation busi-
ness, or is or was serving at the request of the: corporation as a member,
director, officer, employee, agent, or trustee of another corporation, partnership,
joint venture, trust, employee benefit plan, or other enterprise, against expenses
(including counsel fees), judgments, fines, and amounts paid in settlement
actually and reasonably incurred by him or her in connection with such action,
p:\data\cities\!cities\bylaw4.doc 10
suit or proceeding, to the full extent permitted by applicable law. Such indemnifi-
cation may, in the discretion of the Board of Directors, include advances of his or
her expenses in advance of final disposition of such action, suit or proceeding,
subject to the provisions of any applicable statute. This indemnification provided
in this Article shall not extend to suits, claims, actions, administrative procedures
or investigations brought by or at
the request of the corporation. No indemnification shall extend to any person
named above in any litigation, administrative proceeding or process of any type
where the corporation and the individual are opposing each other.
ARTICLE 9
Coverage Determinations and Appeal Rights
Section 9.1. Coverage Determinations. All coverage's are
limited to those coverage's provided through the corporation as identified in
Section 3.4.3 of the Agreement. The Administrator, acting - on behalf of the
corporation, shall make all initial coverage determinations as respects the
corporation's self retention or deductible under the jointly purchased policy or
policies of insurance. Such determinations shall be made according to the
procedures set forth in this Article and subject to the right of appeal set forth in
Section 9.2. Such determination shall be made after appropriate consultation
with the corporation's insurance carrier.
(a) Upon receiving notice of a claim or a Summons and Complaint
against a Member and/or persons requesting coverage (the
"Covered. Party"), the Administrator shall, within forty-five (45) days
or such other reasonable time as agreed after receipt of said notice,
make an initial coverage determination.
(b) Upon making a coverage determination, the Administrator shall
notify the Covered Party of the determination in writing. If the claim
or complaint may exceed the corporation's self retention or deduct-
ible, the Administrator shall inform the Member or Covered Party of
that determination.
(c) The written coverage determination shall address the following
issues:
(1) Whether the corporation will provide the Covered Party legal
counsel for defense of the Summons and Complaint.
p:\data\!cities\!cities\by!aw4.doc 11
•
Whether the corporation is reserving any rights to make
subsequent coverage determinations.
Whether the corporation is denying coverage for the claims
made in the claim or Summons and Complaint under review.
In the event that coverage is denied, the Administrator shall
inform the Covered Party in writing of the appeal process
contained in Section 2 of this Article.
(d) In the event that the Administrator determines that the Association
should (1) reserve its rights to make subsequent coverage deter-
mination, or (2) determines that coverage should be denied, then
the written notice shall also state the reasons. for any such reser-
vation or denial.
(e) In the event that a final coverage determination cannot be made by
the Administrator until after the facts of the claim or Complaint are
determined in a legal proceeding, the Administrator shall make a
final coverage determination within sixty (60) days or such reason-
able time as agreed after the final disposition of the legal proceed-
ing is provided to the Administrator. The determination shall be
provided in writing to the Covered Party and shall contain the
information required by Sections 9.1(c) and 9.1(d).
(f)
All written determinations by the Administrator shall be deemed
final and binding upon all parties unless the Covered Party files a
timely notice of appeal with the Board of Directors in the manner
specified. in Section 9.2. The determination of the Administrator is
only binding upon the corporation and relates only to the self
retention or deductible in place at that time under the policy of
insurance which insures the Association. The determination of the
Administrator is not binding upon the carrier who insures the
Association. Covered Parties are required to resolve coverage
disputes with: the insurance carrier pursuant to the terms of the
policy issued by that carrier.
If a claim or Complaint is of such an amount or magnitude that in
the opinion of the Administrator that claim or Complaint may
exceed the amount of the self retention or deductible in terms of
exposure and/or costs of defense, then the Administrator shall not
be entitled to make a determination of coverage. In those
instances, all determinations of coverage shall be made in
accordance with the terms of the insurance policy issued by the
Association's carrier.
p:\data\!cities\!cities\by!aw4.doc 12
(g)
The Covered Party shall deal with that carrier through the
Administrator's office unless otherwise instructed by the
Administrator. The provisions of this Article shall not apply in those
instances where the claim or Complaint is of such an amount or
magnitude that in the opinion of the Administrator that claim or
Complaint may exceed the amount of the self retention or
deductible in terms of exposure and/or costs of defense.
In those instances if a Covered Party or Member has requested a
coverage determination, the Administrator shall notify the Covered
Party or Member in writing that the Administrator has determined
he or she may not issue a determination of coverage and refer the
requesting party to the terms of the policy of insurance for
resolution of coverage issues.
The Administrator shall not be obligated to make any coverage
determinations until a claim or a Summons and Complaint has
been served upon the Covered Partyand until the Administrator
has received notice thereof. However, the Administrator shall issue
tentative written coverage determinations before a Summons and
Complaint has been filed upon the written request of the Covered
Party. If the Administrator makes a tentative coverage determina-
tion, he or she shall remain obligated to provide a subsequent final
written coverage determination after a Summons and Complaint
has been served and the Administrator has received notice thereof,
as provided in Sections 9.1(a), (b), (c), (d), (e) and (f).
Section 9.2. Appeal. Any written determination made by the
Administrator pursuant to Section 9.1(c) and (d) denying coverage to a Covered
Party shall be final, as provided in Section 9.1(f), unless the procedures for
appeal, provided hereafter, are followed by the Covered Party. The following
appeal procedures shall apply in those cases where the Administrator has not
determined the claim or Complaint is of such an amount or magnitude that in the
opinion of the Administrator that claim or Complaint may exceed the amount of
the self retention or deductible in terms of exposure and/or costs of defense.
There is no appeal from a determination of the Administrator that the claim or
Complaint is of such an amount or magnitude that the claim or Complaint may
exceed the amount of the self retention or deductible in terms of exposure and/or
costs of defense.
(a) Any Covered Party aggrieved by the Administrator's written cover-
age determination may appeal the decision to the Board of
Directors. The appeal must be initiated by the Covered Party within
thirty (30) days following receipt of the Administrator's written
determination.
p:\data\!cities\!cities\bylaw4.doc 13
If an appeal is not initiated within thirty (30) days, as provided
herein, the Covered Party shall be deemed to have waived any
further right to appeal the decision of the Administrator.
(b) An appeal is deemed initiated for purposes of this Article when the
Covered Party, or his, her, or its legal representative, serves a written
Notice of Appeal upon the Administrator orupon the Chair of the
corporation. The written Notice of Appeal shall include the following
information:
(1) The name of the Covered Party initiating the appeal.
(2).: A brief statement identifying the subject of and basis for the
appeal. A copy of the Administrator's written determination
should be attached to the Notice of Appeal.
(3) The signature of the Covered Party initiating the appeal or
the signature of the Covered Party's legal representative.
(c) Within thirty (30) days, or such time as is agreed, after an appeal
has been initiated, a meeting of .the Board of Directors shall be
,convened, by the Chairman of the Board of Directors to hear the
appeal. Notice of the date set for• hearing of the appeal by the
Board of Directors shall be sent to the Covered Party not later than
fifteen. (15) days prior to the date set for the hearing. The Chair of
the Board of Directors shall have the authority to set hearing dates
for the appeal and to grant continuances where good cause is
shown.
(d) .The hearing by .the Board of Directors may occur when a quorum of
the Committee, pursuant to Section 4.6, is present. Voting by the
Board of Directors and the procedures for the meeting of the Board
- of Directors on the appeal hearing shall be as provided in Sections
4.6 and 4.7. However, members of the Board of Directors shall
abstain from participating or voting in any appeals involving a
Member with which they are affiliated.
(e) The hearing of the Board of Directors on the appeal shall proceed
as follows:
(1) The Chair of the Board of Directors shall administer the
hearing and make all necessary procedural rulings during
the hearing,
(2) The Covered Party or his, her, or its legal representative, if.
any, shall begin the proceeding with an explanation of the
basis for the appeal.
p:\data\!cities\!cities\by!aw4.doc 14
(f)
(3)
The Covered Party shall present to the Board of Directors
all evidence, testimony, argument and legal authority
relevant to and in support of the appeal. Thereafter, the
Administrator and/or corporation's legal representative may
present all evidence, testimony, argument and legal authority
relevant and in opposition to the Covered Party's position.
Each side shall be provided an opportunity to present
rebuttal evidence and argument.
Following the presentation of evidence, testimony, argument
and legal authority, the Board of Directors may retire into
executive session to discuss consideration of the appeal.
Thereafter, the Board of Directors shall reconvene in public
session to consider and vote on any motion made to decide
the appeal. The Board of Directors
may vote to uphold the decision of the Administrator or to
modify or reverse the decision of the Administrator. The
decision of the Board of Directors shall be reduced to writing
and signed by the Chairman of the Board of Directors and a
copy thereof sent to the Covered Party within seven (7) days
following the final decision of the Board of Directors.
(4) The Chair may adjourn and reconvene any hearing on an
appeal. as may be necessary to preserve a fair hearing.
A final decision of the Board of Directors denying the Covered
Party the full relief sought shall not preclude the appealing party
from seeking judicial review of the Administrator's and/or the Board
of Directors's coverage determination. However, no Covered Party
may maintain any lawsuit or complaint against the corporation
alleging any improper or incorrect coverage denial unless the
Covered Party has first exhausted the appeal procedures provided
herein. Exhaustion of these appeal procedures shall be a condition
precedent to any subsequent legal action or suit by a Covered
Party.
ARTICLE 10
Conflict of interest and Appearance of Fairness Procedure
All. Members of the corporation, the Board of Directors, and its
committees, shall exercise every effort to avoid conflicts of interest, or the ap-
pearance thereof, in their actions relating to the corporation. Any person who
has a personal interest in any matter before the Board of Directors or one of its
committees which would tend to prejudice his or her action shall so indicate
p:\data\!cities\!cities\bylaw4.doc 15
publicly and may abstain from the deliberations and voting on such matter..
ARTICLE 11
Contracts, Checks, Deposits and Funds
Section 11.1. Contracts. The Board of Directors may authorize
any officer or officers, agent or agents of the corporation, in addition to the
officers so authorized by these by- laws, to enter into any contract or execute and
deliver any instrument in the name of and on behalf of the corporation, and such
authority may be general or confined to specific instances.
Section 11.2. Checks, Drafts, etc. All checks, drafts or orders for
the payment of money, notes or other evidences of indebtedness issued in the
name of the corporation, shall be signed by such officer or officers, agent or
agents of the corporation and in such manner as shall from time to time be
determined by resolution of the Board of Directors. In the absence of such
determination by the Board of Directors, such instruments shall be signed by the
Administrator and countersigned by the Board of Directors Chair, The Board of
Directors Vice Chair or Fiscal Officer of the corporation.
Section 11.3. Deposits. All funds of the corporation shall be
deposited from time to time to the credit of the corporation in such banks, trust
companies or other depositories as the Board of Directors may select and as are
allowed by the laws of the State of Washington.
Section 11.4. Gifts. The Board of Directors may accept on
behalf of the corporation any contribution, gift, bequest or devise for the general
purposes or for any special purpose of the corporation.
Section 11.5. L&I Retro. Pursuant to the authority granted the
Association in the Agreement, the Board of Directors may elect to avail itself of
the State of Washington, Department of Labor and Industries, Risk Management
Services on behalf of those members of the Association electing to participate in
programs offered by that agency. Association participation in such risk
management services and programs may include participation in a group
retrospective rating scheme as approved by the Board of Directors. Association
participation in such risk management services or programs shall be on the basis
that all Members are entitled to participate if they so elect. The election of any
Member not to participate in such risk management services or programs shall
not prohibit the expenditure of Association funds in connection with such services
and programs as approved by the Board of Directors.
p:\data\!cities\!cities\by!aw4.doc 16
ARTICLE 12
Certificates of Membership
Section 12.1. Certificates of Membership. The Board of
Directors may provide for the issuance of certificates evidencing membership in
the corporation, which shall be in such form as may be determined by the
Committee. Such certificates shall be signedby the Chair or Vice Chair and by
the Administrator and shall be sealed with the seal of the corporation. All certifi-
cates evidencing membership shall be consecutively numbered. The name and
address of each Member and the date of issuance of the certificate shall be
entered on the records of the corporation. If any certificate shall become lost,
mutilated or destroyed, a new certificate may be issued therefor upon such terms
and conditions as the Board of Directors may determine.
Section 12.2. Issuance of Certificates. When a Member has
been selected to membership and has paid any fee for the unencumbered fund
balances and other charges that may then be required, a certificate of member-
ship shall be issued in its name and delivered to it by the Administrator, if the
Board of Directors shall have provided for the issuance of certificates of
membership under the provisions of Section 12.1.
ARTICLE 13
Books and Records
The corporation shall keep complete books and records of account and
shall also keep minutes of the proceedings of its Members and Board of
Directors and shall keep at its registered or principal office a record giving the
names and addresses of the Members entitled to vote. All books and records of
the corporation may be inspected by any Member, or its attorney, for any proper
purpose at any reasonable time.
ARTICLE 14
Fiscal Year
•
The fiscal year of the corporation shall be from September 1 through
August 31 of the next calendar year, or as set by resolution of the Board of
Directors.
ARTICLE 15
Seal
The seal of this corporation shall consist of the name of the corporation,
the state of its incorporation, and the year of its incorporation.
p:\data\!cities\!cities\by!aw4.doc 17
ARTICLE 16
Waiver of Notice
Whenever any notice is required to be given under the provisions of the
Washington Non -Profit Corporation Act or under the provisions of the articles of
incorporation or the By -Laws of the corporation, a waiver thereof in writing signed
by the person or persons entitled to such notice, whether before or after the time.
stated therein, shall be deemed equivalent to the giving of such notice.
ARTICLE 17
Amendments to By -Laws
These By -Laws may be altered, amended or repealed and new By-laws
may be adopted by a majority of the Board of Directors members present at any
regular meeting or at any special meeting, if at least two days' written notice is
given of intention to alter, amend, or repeal or to adopt new By -Laws at such
meeting.
Adopted by the Board of Directors on July 15, 2003.
p:\data\!cities\!cities\by!aw4.doc 18
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of September 7, 2010
Consideration of resolution authorizing and directing the City Manager of
the City of Yakima to execute the Interlocal Agreement of Cities Insurance
Association of Washington ("CIAW") in order for the City of Yakima to
become a member of the Cities Insurance Association of Washington
effective September 1, 2010, and approving the City of Yakima to become
a member of CIAW with its attendant requirements; and authorizing the
City Manager to execute any other documents that may be necessary or
appropriate to allow the_ City of Yakima to become a member of the Cities
Insurance Association of Washington.
City Manager
Finance Department
Legal Department
CONTACT PERSON/TELEPHONE: Dick Zais, City Manager, 575-6040
Rita DeBord, Finance Director, 575-6070
Cindy Epperson, Deputy Director of Accounting &
Budgeting, 575-6070
Helen Harvey, Senior Assistant City Attorney, 575-6030
SUMMARY EXPLANATION: Staff respectfully requests approval of this Resolution, which would
allow the City of .Yakima to join the Cities Insurance Association of Washington ("CIAW") as a
member, which offers pooled insurance purchasing for liability coverage.
Since December 14, 2005, the City of Yakima has been an associate member of the CIAW pool.
Recent changes in the law required by the Office of Financial Management no longer allow
entities to participate in a shared insurance program as an associate member (WAC
82.60.02005). The City is required to become a full member and is subject to assessment when
required by the governing body of the program. The CIAW pool has a shared retention
(deductible) of $100,000 in which all the members participate. Each entity has its own retention,
from $10,000 to $99,000. After that entity retention is paid, the shared retention would pay up to
(Continued on Page Two)
Resolution X Ordinance Other (Specify)
Contract X Mail to (name and address): Joel Pearson and Deb Krautwurm, Wells Fargo
Insurance Services, NW, P. 0. Box 2547, Yakima, WA 98907 Phone: (509) 248-7460
Funding Source Risk Management, Account No. 515-515-641-0000-51476-462
APPROVED FOR SUBMITTAL:�.��� City Manager
STAFF RECOMMENDATION: Staff respectfully recommends that City Council adopt the
attached resolution required for the City of Yakima to join CIAW as a member.
6130ARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
$100,000 and then the insurance coverage pays above the $100,000 up to the policy limits. If the
shared retention funds are exhausted, there is potential for additional assessments to the
members.
As a member, the City would participate in the shared retention, but only to a small extent since
the City's individual retention (deductible) is $99,000.
The Cities Insurance Association of Washington (CIAW) is a property and liability risk and
insurance pooling program for cities. CIAW was formed in 1988 with 32 founding member cities.
In 1998, CIAW added fire, irrigation, water and sewer districts to its membership as non -asset
owning Associate Members. The Board of Directors contracts with Canfield & Associates, a third
party administrator instrumental in forming the program, to carry out the day-to-day
administrative, claims and risk management services. In September 2003, Canfield & Associates
was sold to Brown & Brown Insurance of Daytona, Florida. Canfield & Associates believes that
this sale has allowed the company to have a broader base of insurance options, marketability and
access to a variety of excess carriers.
The City of Yakima had been self-insured for many years, and in 2002 had a $1,000,000 retention
and $8,000,000 excess liability coverage limit through a policy issued by Genesis Insurance
Company ("Genesis"). On December 14, 2005, the City joined the CIAW pool as an associate
member subject to a $100,000 retention. An associate member has no voting rights, but is not
subject to an additional assessment if the pooled funds are not sufficient to pay claims.
For the City of Yakima Transit Division, including the van pool program, there is liability coverage
through the Washington. State Transit Insurance Pool (WSTIP), which the City of Yakima joined
effective September 1, 2005.
Program Structure
The CIAW program is structured somewhat differently from other pools in that only the risk for the
first $100,000 of each claim is shared among the member participants. Losses above $100,000
are fully insured, an A+ XV rated insurance carrier.
As a full member the City would participate in the $100,000 shared retention, but only after the
City's $99,000 individual retention is exhausted. So the City participates, on $1,000 in the shared
retention.
Representatives of Canfield & Associates have indicated that stop -loss insurance coverage has
been purchased this year to protect the members against the possibility of additional
assessments if the shared retention funds are exhausted. So if the shared retention is used up,
the stop -loss insurance would pay additional claims. This should prevent additional assessments.
If the board decides not to purchase stop -loss coverage in the future, the City would have the
right to leave the program without the required one-year notice.
CIAW Advantages
The CIAW program offers the following advantages as compared to the current program:
Premium Savings: Other insurance carriers provided quote indications this year at a
$250,000 retention level that were higher than the current $100,000 retention.
Premium Stability: As part of a major group purchasing program including numerous cities
and other entites, the insurance premiums should be not only be competitive, but more stable
from year to year.
Loss Control: The CIAW program includes loss control services available at the request of
the City to help minimize loss exposure, for which there is no additional charge. These services
include training programs for City employees.
2
•
•
• Conclusion
Because of the way the program is structured with the stop -loss, the City is protected this year
from additional assessments. If that changes in the future, the City would have the ability to look
for alternative programs.