Resolution No. 5851
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RESOLUTION NO. 5851
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AN AMENDMENT TO
THE INDEPENDENT CITIES RISK MANAGEMENT
AUTHORITY JOINT POWERS AGREEMENT TO
PROVIDE FOR THE ADMITTANCE TO MEMBERSHIP
OF THE CITIES OF COSTA MESA, EL SEGUNDO,
AND UPLAND AND DESIGNATING CITY
REPRESENTATIVES
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WHEREAS, the City of Vernon (the "City") is a
lO municipality duly organized and existing under the Constitution
II and laws of the State of California (the "State"); and
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WHEREAS, the cities of Alhambra, Arcadia, Azusa,
l3 Baldwin Park, Bell, Colton, Culver City, Downey, El Monte,
l4 Gardena, Glendora, Hawthorne, Hermosa Beach, Huntington Park,
l5 Indio, Inglewood, Lynwood, Manhattan Beach,Monterey Park,
l6 Monrovia, Redondo Beach, San Fernando, South Gate, Vernon, West
l7 covina,and Whittier, California, are the current members.ofthe
l8 Independent cities Risk Management Authority (the "ICRMA"); and
19 WHEREAS, the cities of Costa Mesa, El Segundo, and
20 Upland, California, have applied for membership in the ICRMA and
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membership is contingent upon approval by the existing
22 member cities, compliance with the provisions of the Independent
23 Cities Risk Management Authority Joint Powers Agreement, and the
24 conditions of admittance as determined by the governing board of
25 the ICRMA; and
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WHEREAS, it is necessary to amend the Joint Powers
27 Agreement to provide an amended definition of "Member City" and
28 make other amendments to the Joint Powers Agreement; and
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WHEREAS, this City council is of the view that
permitting additional qualified members to membership in the
ICRMA benefits this City and all of the member cities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: Approval of Amendments to the Joint Powers
Aqreement.
Article III, H. of the Joint Powers Agreement is
amended to read as follows:
"Member City" shall mean any Municipal
Corporation or any Joint Powers Authority
the membership of which consists only of
Municipal Corporations, which is a party
to this Agreement and is participating in
one or more Risk Management Committees.
The second paragraph of Article XIII shall be amended
to read as follows:
Warrants shall be drawn to pay demands
against the Authority. Said warrants
shall be signed by both the President,
vice President or Treasurer of the
Authority and an agent, employee or
general manager of the Authority.
SECTION 2: Approval of Amended Joint Powers Agreement.
The amendment to the Independent cities Risk Management
Authority Joint Powers Agreement to admit into membership the
cities of Costa Mesa, El Segundo, and Upland, california,
provided that these new cities comply with all conditions of
admittance as determined by the governing board of ICRMA, is
hereby approved.
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SECTION 3: City Representation.
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Thomas A. Ybarra, the Mayor Pro-Tempore of this city ,
3 previously designated by this Council as the City's
4 representative to the ICRMA Governing Board ("the Board") and
5 the Liability Risk Management Committee ("the Committee") is
6 hereby confirmed and designated as the City'S delegate to the
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Board and the Committee.
Joan Francone, Risk Manager of this
8 City, is hereby appointed to and designated as the City'S
9 alternate delegate to the Board and to the Committee, and all
lO prior actions performed by her in such capacity are hereby
II confirmed and ratified. Said delegate and alternate are hereby
l2 conf irmed and designated for all purposes of representing the
l3 City's interest and exercising the authority of the City with
l4 respect to the Coverage and the program and voting on behalf of
15 the City on all matters delegated to the Board and signing such
l6 amendments as are contemplated to be approved by the Board.
17 Such individuals shall keep this Council informed of such
l8 matters on a timely basis.
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SECTION 4: Effective Date.
20 This resolution shall take effect immediately upon its
2l adoptio.n.
22 APPROVED AND ADOPTED this 20th day of November, 1990.
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A~:
BRUCE V.
/.' ,,/ A'~ ~~fJi~rproTem
//!/J/~ .
MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 5851, was duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the City Council duly
7 held on Tuesday, November 20, 1990, and thereafter duly signed
8 by the Mayor of the City of Vernon.
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MALKENHORST, City Clerk
BRUCE V.
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CITY COUNCIL
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LEONIS C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro-Tern
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
TELEPHONES
CITY CLERK . . . . . . .. . . . . . . . . 583-8811
POLICE DEPT. ..............587-5171
FIRE DEPT. .. . . ... . . . .. ... . .583-4821
BUILDING DEPT. . . . . . . . . . . . . 583-8811
PUBLIC WORKS DEPT. .. . . . . . 583-8811
HEALTH DEPT. ............. 583-8811
OFFICERS
BRUCE V. MALKENHORST,
City Administrator/City Clerk
DA VID B. BREARLEY,
City Attorney
VICTOR H. V AITS,
Director of Community Services
KENNETH J. DEDARIO
Director of Water & Power
LARRY SPADT,
Fire Chief
CITY HALL
LOUIS ROSENKRANTZ
Police Chief
In Reply Refer to:
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
December 17, 1990
Gordon R. Davis
Independent Cities Risk
Management Authority
14156 Magnolia Boulevard, Suite 103
Sherman Oaks, California 91423
Dear Mr. Davis:
The City Council of the City of Vernon approved admitting the cities
of Costa Mesa, E1 Segundo and Upland as members of the ICRMA at their
regular meeting held November 20, 1990. Transmitted herewith is a
Certified Copy of Resolution No. 5851 for your records.
If you have any questions, please do not. hesitate to contact Ms. Joan
Francone, Risk Manager, at Extension 322.
GJO/hr
Enclosure
Joan Francone
Very truly yours,
~CITY OF .~VERNOI}N
~. ~
oria J. ro co ·
· Chief De ty City Clerk
July 23, 1991
To: Joan Francone, Risk Manager/Personnel Assistant
From: Gloria J. Orosco, Chief Deputy City Clerk ~v./l
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Re: 1) SECOND AMENDMENT TO LIABILITY RISK COVERAGE AGREEMENT
2) SECOND AMENDMENT TO TRUST AGREEMENT
Dear Joan:
Please refer to attached letter regarding the above referenced
documents.
Please follow-up on this matter and advise me what the::--delay is.
This was approved by Council in November 1990 and we still do not have
an executed copy of either document and our files need to be closed.
GJO/hr
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March 19 , 1991
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To: Joan Francone, Risk Manager/Personnel Ass`istan.t
From: Gloria J. Orosco,.Chief. Deputy City .Clerk..
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Re: 1) Second Amendment to Liability Risk Coverage Agreement
2) Second Amendment to Trust Agreement:
Dear Joan:
On January 2, 1991, the above referenced documents were mailed to
Gordon Davis of ICRMA. He was instructed to execute and return
one fully executed original ofeach agreement.
Is it possible that he returned. the documents to you. I am unable
to close my files until the documents are received in this office.
Please advise so I.may take further action if necessary. ,
GJO/hr
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March 19 , 19~,~~1
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To: Joan Francone, Risk Manager/Personnel Assistant
From: Gloria J. Orosco, Chief Deputy City Clerk
Re: 1) Second Amendment to Liability Risk Coverage Agreement
2) Second Amendment to Trust Agreement
Dear Joan:
On January 2, 1991, the above referenced documents were mailed to
Gordon Davis of ICRNIA. He was instructed to execute and return
one fully executed original of each agreement.
Is it possible that he returned the documents to you.. I am .unable
to close my files until the documents are received in this office.
Please advise so I may take further action if necessary.
GJO/hr
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SECOND AMENDMENT TO .LIABILITY RISK 'COVERAGE AGREEMENT
.Dated as of'July_l, 1990
among the
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
as Provider,
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the .CITIES OF ALHAMBRA, ARCADIA, AZUSA, BALDWIN PARK, BELL, '~I
CULVER CITY, DOWNEY, EL MONTE,
GLENDORA, HAWTHORNE, HERMOSA BEACH, HUNTINGTON PARK, j
INDIO, INGLEWOOD, LYNWOOD, MANHATTAN BEACH, MONTEREY PARK,
REDONDO BEACH, SAN FERNANDO, SOUTH GATE,
VERNON, WEST COVINA, AND_WHITTIER, CALIFORNIA,
as Providees,
and
the Cities of COLTON, COSTA ..MESA, EL SEGUNDO,
MONROVIA, and UPLAND,
as Additional Providees
7 9c aYriiE~2~FaF1P°7'teiN• tF'EPi]~ar+~t~ta7 ~3 ~I ,
. _ , ,t9ior° "nl• 7'~ 7 2 rat Fw.'d: t~ <7 7~7o; iti y+ .2 t~..rn h
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SECOND. AMENDMENT TO TRUST AGREEMENT.
Dated as of July 1, .1990
among.
SEATTLE-FIRST NATIONAL BANK, as Trustee,.
the
INDEPENDENT CITIES..RSSK MANAGEMENT AUTHORITY, ii
as Provider,
I!,
the CITIES'OF ALHAMBRA, ARCADIA, AZUSA, BALDWIN PARK, BELL,
CULVER.CITY, DOWNEY, EL MONTE,
GLENDORA, HAWTHORNE, HERMOSA BEACH, HUNTINGTON PARK,
INDIO,`INGLEWOOD, LYNWOOD, MANHATTAN.BEACH, MONTEREY 'PARK,
REDONDO BEACH, SAN:'FERNANDO, SOUTH 'GATE,
VERNON, WEST COVINA, AND WHITTIER, CALIFORNIA,
as Providees, ~
and ii
the Cities of COLTON, COSTA~MESA EL SEGUNDO,
MONROVIA, and UPLAND,
as Additional Providees ~
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CITY COUNCIL OFFICERS
BRUCE. V. MALKENHORST,
LEONIS C. MALBURG, Mayor City Administrator/City Clerk
THOMAS A: YBARRA, Mayor Pro-Tem
Wm. "BILL" DAMS DAVID B. BREARLEY,
H. "LARRY" GONZALES City Attorney
W. MICHAEL McCORMICK '
VICTOR H: VAITS,
TELEPHONES - Director of Community Services
a ~ ' 4 KENNETH J. DEDARIO
CITY-CLERK ................583-881.1 ~
POLICE DEPT . ..............587-8171 - Director of Water & Power
FIRE DEPT. • 583821 t'('. ~ 1~ ,I ~ f' LARRY SPADT,
t.
BUILDING DEPT....... 583-881 l Fire Chief
PUBLIC WORKS DEPT.... ...583-8811
HEALTH DEPT . .........583-8811 (~'~TT'jJ u A T T LOUIS ROSENKRANTZ
lil l 1 iiA1JL Police Chief
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 In Reply Refer ro:
January 2, 1991
Gordon R. Davis
Independent Cities Risk
Management Authority
14156 Magnolia Boulevard, Suite_103
Sherman.Oaks, California 91423
Re: 1) Second Amendment. to .Liability Risk Coverage Agreement
2) Second Amendment to 'Trust Agreement
Dear Mr. Davis:
Transmitted herewith are the above referenced .agreements executed by
the City. of Vernon. Please return a fully executed copy of each
agreement to us for-.our records when available.
Very truly yours,
CITY OF VERNON
~/JGcC.' ~ ~.~~rGJ
oria J. rosco
Chief Dep ty Gity Clerk
GJ0/hr
Enclosures
cc: Joan Francone, Risk Manager
i ~ ~ f
-CITY COUNCIL ~ OFFICERS
LEONIS C. MALBURG, Mayor .BRUCE V. MALKENHORST, '
THOMAS Ar YBARRA, Mayor Pro-Te City Administrator/City. Clerk
Wm. "BILL" DAVIS
H. "LARRY" GONZALES DAVID B. BREARLEY,
W. MICHAEL McCORMICK City Attorney
' VICTOR H. VAITS,
TELEPHONE Director of Community Services
CITY CLERK ::...:.....:...583-8811 LEWIS R. ADAMS,
..587-5171 I ' I ~ Director of Water & Power
POLICE DEPT
FIRE DEPT ....................:.....:.........583-4821 I
I ~ i I LARRY SPADT,
BUILDING DEPT ......................:.:583-8811 Fire Chief
PUBLIC WORKS DEPT .....:.......583-88x..1
HEALTH DEPT ............................583-8811 CITY HALL LOUIS ROSENKRANTZ
Police Chief
4305. SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Irc Reply Refer to:
November 1, 1990
City Council
City of Vernon
Honorable Members:
We have been advised by the Independent Cities Risk Management Authority
that the cities of Costa Mesa, Upland and El Segundo wish to join ICRMA.
If approval is received from all members of ICRMA the. participation of
these cities will. reduce the share of"costs to the present member cities.
The Governing Board ~f ICRMA has approved their admission and it is re-
quired that all member cities adopt a resolution to include the afore-
mentioned cities as members of the Authority.
This has been reviewed by our Risk Manager and the City Attorney and it
is hereby recommended that a resolution be adopted.
Very truly yours,
CITY OF VERNON
Bruce V. Malkenhorst
City Clerk
BVM/ g j o
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INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY "
14156 MAGNOLIA BLVD., SUITE 103, SHERMAN OAKS, CA 91423 • (818) 981-7076 • FAX (818) 784-1187
GOVERNING BOARD
M E M O R A N D U M
Prcridenr
James B. Hansen
.San Fernando
Vice President
Betty Couch
Monterey Park
secretary Date: October 30, 1990
Marilyn A. Boyette _ _ _ _ _ _ _ _ - _
Huntington Park TO: Governing Board Alternates
Treasurer
~;r ~'~[tiSa1i`~`ein~antl
From: Gordon R. Davis, ARM, General Manager
Mary Louise Bunker
Alhambra
r ~be~g~Flar4ts~ht Subject : New Member Documents
~9 uT
~'fcadt
Eugene F. Moses
Aznsa Enclosed please find a resolution to be completed and
BettcLowes resented to our Cit Council for a royal. This
Baldwin Park P Y Y PP
George Cole approval will enable the cities of Costa Mesa, E1 Segundo
-Bell and Upland to join ICRMA and participate in the Liability
conniecisneros Program. The ICRMA Governing Board has .previously
Pau~A.Jacobs unanimously approved their admission. The blanks in the
calvercity resolution are to be filled in with the appropriate names
Robert G.Cormack and titles for your city.- Please do not change any of the
°owioy .resolution wording as prepared by the ICRMA Bond Counsel.
Dan Morgan
EI Monte
James w.Crttgin The three new cities will comprise 9.24 .percent of the
Gardena pool which will correspondingly reduce your share of costs
Bob Kuhn by that amount. ~u may note the percentage changes in
Glendora -
BettyJ.Ainsworlh Exhibit D-1 of the
Hawthorne t.,
Chuck Sheldon _ c'l f ter
Hermosa Beach the enabling resolution has. been approved.
William P. Cunningham
Huntington Park
Jeffrey Holt Please schedule the resolution .for your next City .Council
Indi° meeting. This resolution requires unanimous approval by
Jose Fernandez all ICRMA member City Councils. If you have any
Inglewood
Paul H, Richards queSt1011S, please contact me.
Lynwood
Dan Stern
Manhattan Beach
Robert T. Bartlett
Monrovia
Kay Howell GRD : 51
Redondo Beach ET1ClOSUre5
Larry Leonard
South Gate
Thomas A. Ybarra
Vernon
Richard N.lcnnings
West Covina
Robert Henderson
Whittier
ADMINISTRATIVE/RISK
MANAGEMENT CONSULTANTS
KEN SPIKER AND
ASSOCIATES, INC.
Gordon R. Davis, ARM, General Manager
Dtrvid N. Smith, Consultant
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T0: BRUCE V. MALI{ENHORST. CITY ADMINISTRATOR
FROM: JOAN FRANCONE, RISK MANAGER
DATE: OCTOBER 31, 199Q
SUBJECT: AMENDMENT TO THE INDEPENDENT CITIES RISK
MANAGEMENT AUTHORITY (ICRMA) LIABILITY
PROGRAM
Please find attached documents relative to amending the ICRMA
Liability Program to allow the participation of the cities of
Costa Mesa, E1 Segundo and Upland.
As you know, ICRMA solicits cities annually far participation in
the .Liability, Workers' Compensation and Property Insurance
Programs. The decision to accept or reject an applicant is dis-
cussed-.and decided at a Governing Board meeting. When additional
cities-join ICRMA, it reduces the share of casts to those cities
alreacly participating.
The resolution to amend the ICRMA Liability Pr..ogram requires
unanimous approval by all ICRMA member City Councils. The at-
tached memorandum from Gorclon Davis, General Manager of ICRMA,
explains the necessary procedure more thoroughly.
It is recommencled that Council adapt this resalution unanimously.
cc: City Attorney
a~tt,achments
icrmaame
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fCE!d ~~PIf•'.EF Rf~JD F~~~~JC . TEL f~lo . 1~-7~4-117 Auq 29 , 91 10 :59 fdo .00~ P .02.'1~l
INDEPENDENT CYTIES RISK MANAGEMEN'~ AUTH(7RITY
FOR INSURANCE AND RxBK MANI4C~EMENT PUR.POBEB
ICRM~04Y890
I:EhJ SPI ICEf; RhdD RBSOC . TEL h~o .818-784-1187 Rug 29 , 91 1 U ~ ~9 r~lo .002 P . 0~/ 14
AMENDMENT TO
JQiNT E%ERCiBE OF FOiPEI2B AaREEMENT -
FQR INSURANCE AND RISK MA.1V'~1,aEMENT FURF4BEB
This agreement is executed by and ~,mang Municipal corpor$tic~ns,
hereafter refarred to as Member Cities, organized and existing
:under the laws of the state of California which are sigr?atbry t4
this Agreement and listed in Appandix '~A~~, which is att~cched hereto
and madle a part Qf. This Agreement, dated April 18, 1990, amends
the Joint Exercise of Powers Agreement For Insurance axed Risk
Management Purposes dated-.May 13, 1987.
RECITALS
This Agreement is predicated upon the fallowing facts
A. The Member Cities are Municipal Corpc+raticans organised anr~
operating under- the laws c~ the State cif California.
B. ~'he follcwing state laws, among others, authorize th,e Member
Cities to enter into this Agreement:
1, Labor Cade section 3740, allowing a city to fund its own
Wark.ers' Campensatior~ claims;
Government Code Section 990, permitting a city to insure
itself
against tort or inveree canr~emnatior~ ~,iability;
3. Government Code Section 990.4, permittinr~ a city to provide
insurance and salt-insur~ince in any desired combination;
4. Government bode Section 99(7.x, permitting the proper .posts
far seYf-insurance to be charged against each city and
authorizing .the governing Board to make premium payments
for such coverage in ari amount such Governing. ~aard
determines to be necessaryta provide such cr~verage;
Government Code Scotian 990.8, permitting two car more
cities to eater into art agreement to j ointl,~r fund such
expenditures under the authority of Government Cade
Sections 6504-651;
6. Government Cade Section 6500-6515, permitting ttlcy `or mare
cities to ~Qintly exercise under s,n agreement any .power
which is common to each'of ahem.
NOW, THEREFORE, fc~~ and in c~ansderation cf the. mutual .benefits,
covenants, and agreements set forth in this Agreement, the parties
agree as follows:
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KEh~ ,SP II:ER RfdD RBSOC . TEL h~a .818-784-1187 Ru.g 29 , 91 10 ~ 59 No .002 P . 04/ 14
TICLE I. CREATION OI' '!'HE INT3EPENDENT CITIES RISK MANAGEMENT
1~U'THORITY. - -
Pursuant to Article I {commencing With Scctian 6500) of Chapter 5
of Division 7 of xitle l of they Government Code. of
the State of
Californi$, thc~ parties hereto.-hereby create a public entity
sep$rate and apart from the parties to this .Agreement, to be known
as the .Independent Cities Risk Management Autharity, here~.naftex
referred to as the ~rAuthority". Pursuant. to Government Gode
Sc~ctian 6508.1, the debts, liabilities, and obligat~.olns of the
Autharity .shah. not constitute debts, liabilities, ar obligations
of &hy party to this Agreement. A Member .City may separately
contract far or assume responsibility for specific debts,
liabilities, or obligations of the Authority. Pursuant to and to
the extent rccluired by Gov~.rnment Code Section 650, the authority
shall be restricted in the .exercise of its powers in the same:
manner as the City of Manhattan Beach is restricted in its exorcise
of similar powers provided that, if the pity of Manhattan Beach
shall cease to be a Member Gity, then the Autharity shall be
restricted in the exercise of its power. its the same manner ass the
City ~?f San ~'ernanda.
II. PfJRPO~E.
The purpose Qf creating this authority is to exe~cisc the pawers of
-the Member Cities to jointly accomplish the following:
A. Gevelap effective Risk Management Programs to reduce the amount
snd frequency Qf their losses, -
B. Develop Risk Management Pxt~grams of insurance to protect Member
Cities from the effects of catastrophic ar unexpected 1o~:ses.
Such programs shall include, but. .not. be .limited to, coverages
far losses arising out of Tort Liability, Workers'
Campens$tiofl, Health Benefits, and the ownership or use t~f real,
arpersonal property.
C, Design Risk Management Programs of the Autharity an a pooled car
self-funded b~si.s whereby the cities share same partic~M, ar
a11, afthe costs of the program lasses.
D, faintly purchase insura.rtce, excess insurance,. or reinsurance
for the purpose of transferring risk of lass to cammerciai
insurers.
k'. Assist Nlcmber Cities to secure a Lang-term .financial base from
the issuance of Certificates o~ Participation. The revenues
generated from the Certificates of Participation will be .used
far the. purpose af° establishing and maintaining sufficient
unencumbered €inancial reserves, thereby eria,bling the Authority
tt~ provide adequate protection to .Member pities against
aatastrt~phic, ox~ greater than expected, claims„ and to attract
major reinsurers-.far the purpose of transferring risk.
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KEh~J ~~F'Ih;ER AND AS HOC . TEL No .818-~84-1187 Aug 2~ , 91 10 ~ 5~ PJo .002 P . 05/1
F. ,Taintly secure ~?drninistrative ar?d other sarviaas including, lout
net limited ta, underwriting, risk management, lass prevention,-
claims adjusting, data prooessing, brokerage, accounting, and
1eg$1 sex-vices whin related to any of the other purposes.
ARTICLE III. I~~~ZIV~TTIo1V8
The following definitions shall apply to the provisions of this
Agreement and the Hy-Laws of the. Risk Management committee.
A. "Agreement" shall mean this Agreement creating the 2ndeper~dent
Cities Risk Management Authority.
B. "Board" nr "Governing Board's shall mean the governing body of
the Authority.
"By-Laws' shall me2~n the rules gc,verninq the management of each
risk by the ifldividual-Risk Management Committee..
D. "Claim(s)" shall-mean demand(s) made against the Member Cities
.arising out of occurrences which $re cave~red or alleged tee be
caverefl b~ the Authority's Memorandums of Coverage, ar policies
of insurance,
E. "Fiscal. Year" skull mean the period ref time from the date of
this Agreement to June 30, 7~g86, and thereafter ending an
June 3o .each fallowing year.
F. "1CRMA" sha11 mean ,the Independent Cities- Risk Man~geme~nt
Authority created by this Agreement.
~'insurr~ncer' shall mez~n insurance purchased by the Authority to
Dover lasses for its Member Cities.
x. "Member city" shall mean any Municipal Carporatian or any faint
powers Authority, whose membership c~sns~.sts only of Municipal
Garpar~?tions, .which is a party. to taxis Agreement and is
participating in one or more.Risk Management Committees.
I. "Memax~andum of Cc~verage~" shall mean the document ar ds~cuments
issued by the Authority specifying the types of cbvorages and
limits provided to the Member Cities.
J. "'Program Year"' shall mean a period of time determined, usuall.~
twelve menthe, in which each program shall be segregated for
ease in determining coverage pr~amiums.
K. "Participation" or "Parti:cipating" shall mean a Memkaer City has
elected to jointly participate in the management of a specific
risk and is a member oaf that Risk Management Committee.
T~. "Rusk Management" .shall .mean the process of identifying,
evaluating, reducing,. .transferring, and eliminating r;Lsks.
Risk management includes various methods crf funding claims
KEhJ ,SPIKER AND A^OC . TEL. No .818-784-1187 Au,y 29 , 91 1~l : 59 No . Dt~2 P . C~6~14
payments, purchasing insurance, legal .defense of claims,
controlling lasses, arld determining self-insured retention
levels and the ~mot~nt at reserves far potentiaY claims.
M. "Rink Mana~g~ment Committee" shall mean those Committees created
by they Authority to manage specific Risk Management Programs,.
i,e. nLiability Risk. M$na~gement Committee".
N. ~'RislC Management- Program" shalt mean the programs of risk
sharing, insurance, and risk. management services established Hy
-the Authority and managed by the Risk Manageme~tt Committee.
8$~~C~E
~~V'. PARTIES TC_...A(3RLEMLN~.
Each Member-City represents>and warrants that it intends to, and
does hereby, contract with all ether Member Cities .listed in
Appenelix "A", and. any new members admitted tc~ the Authority.
pursu$z~t to Article XVII. Each Member City also represents-and
warrants that the withdrawal err expulsior? of any Member City,
pursuant to Article XIV err XV, shall not relieve any Member City cf
its rights, ob~.igatians, ar duties under this Agreement.
ARTSCY~E V. ¢OVERN lit ,
The :Authority shall be governed by a governing Berard comprised of
one Representative from each Member City. The City Caunci2 of each
Member City shall appeint a member. of .the City Council as the
Member City's Representative to the Ct~verning Berard. Mach Member
City sha11 also designate an alternate Representative. Thy:
a:Ltex`z~ate Representative may be a staff officer of the Member City.
Each. Representative of the Go~verlling ..Board -has o11c vote. The
.alternate Reprc~santative mad .vote at me~:tings of the Governing
-Beard in the .absence of the. Member City's Representative.
Immediately upon admission of a new Member City pursuant to
Article }VII, the Member City shall be entitled to $ppc~int a
Representative and alternate Representative to the Governing
Board.
A Representative and/or alternate Representative shall be removed
.from the Governing Beard open the occurrence o~ any one of the
following events.: the Authority receives written notice .from
the appointing Member City of the removal of the Representative of
alternate Representative; (2} the expulsion. or withdrawal pf the
Member City from this Agreement; (3) the death ar resignation of
the Representative; {4} the Authority receives the written notice
from the Member City that the Representative is no long$r a member
of the City Council of the Member .City.
Repre~ser,~tatives and their ~ltarnates are net entitled to
camperzsation. mhe Gaverniric~ Board may authorize reimbursement of
expenses incurred by Representatives, ar their alternates,..
-
KEN ,~PIKE~ AND A~CJ~ . TEL No . X318-7~4-118 Aug 29 , 91 10 ~ 5'~ Idr .002 ~ .07114
Pursuant to Government Code section 65x5.6, the Autho~^ity shall
designate ~n officer ar ~amplayee, or officers and employees, to
receive, deposit., invest, and disburse the .property of the
Authority pursuant to Government. Code sections 6505 and 6505.5.
The $uthority shall fix the amount of the fidelity bond to be filed
bY.such public officer(s) and/or employec~(sj.
lA~tTr~LL V~. ~O1~R1~ __ME~TIN[~~_ ANT1_..RECU~tDS.
A. Regular Meetings. The Governing Board shall hold sit least one
regular meeting each quarter of each year. The Govexn~-ng Eo~Y`d
shall fix by resolution the. date upon which, and the hour and
p7.ace at which,. each regular meeting is to be held,
B. Ralph M. Brawn Act« Each meeting of the. Governing ..Board,
including without limitation regular, adjourned regular, and
special meetings shall be called, natioed, held, and cc~nductad
in accordance with the .Ralph M. Brawn .Act (Sectit~n 54a5a
et. seq. of the Government Cade).
G. Minutes, The Authority shall have minutes of regular,
adjourned regular, and special meetings kept by the Secretary.
As soon as passible after each meeting, the secretary shall
forward to each Governing Board member and e$ch, City Clerk
copies of the minutes.
D« Quorum. A majority of the members of the Governing Board ~.s a
quorum for the transaction of business« .However, lees than a
quorum may adjourn from time to time. A vats of the majority
of a quc~rt~m at a meeting is sufficient to take action«
~1ZTIC~E III. OFF~CERi~.
'Phe Governing Board shall elect a president and vice president from
among its members at its first meeting. Thereagter, in the last
meeting in etch sucae~c3ir~g fiscal year, the Gaverniflg Board shall
elect a president and a vice-president, Each officer shall .assume
the duties of his office upon election. If either the president err
vice-president cease to be a member,-.the resulting vacancy shall be
filled at the next regular meeting of the Governing Board he~.d
.after the vacancy ~ccurs« In the absence or inability of the
president. to act, the vice-president acts as president. The-
presid~:nt shill preside at and conduct all meetings of the
Gaverr~ing Berard, The Governing Board shall appoitlt a secretary and
a treasurer of the Authority who may, lout need hot be, a member of
the Governing Berard. the Governing Board may appoint such. other
officers as it considers necessary«
,~?Y2'~I~L+E__VYII. PGWERB.
The Authority shell have the powers common to its Member Gities and
is authorized, in its awn name, to der all acts necessary to
exercise such cammcrn powers to fulfill the .purposes oP ..this
.Agreement .referred to in Article II including, but not li.mitacl ter,
each of the fallowingz
- 5
I'EN,~PIKER RNI1 R~~QC. TEL No.218-T~4-1187 Rug 29,91 10:59 No .002 P.0811~
A. FinancQ through. the fesu~?noe of certificates of k~artiaipatian,
car ether instruments of indebtedness, self-insurance reserve
funds neaess$ry or convc~niant for the implementation of this.
Agreement. .
B. Yncur debts, liabi.litie~s, and obligations.
C. Acquire, hold, or dispose of real and persona. property«
b. Rs~eive cantririutions and danatit~ns of property, funds,
sai-vices, and Other forms of assistance from any source.
E, Sue $rid be sued in its awn n2tm8.
Employ agents and employees.
G. Acquire, construct, manage, .maintain, or .operate buildings,
wc+rks, or improvements.
H. z~ease real ar personal property, irioluding that of a Member
City.
I, Receive, collect, and disburse monies.
rnveet money in the treasury t~f the .Authority. in the same'
manner and on the same conditions as local agencies pursuant to
Government Cade Sc~etion 53+01«
Ii.. ':Exercise all atfier powers necessar~t and proper to carry out the
provisions of this ,Agreement...
L* develop and implement Risk Man~gemant Programs.
Ni. ~7aintiy purchase for the benefit of MemT~er Cities, insurance,
excess insurance, reinsurance, and enter inter agreements for
the benefit of Member Cities, forthe purpose of tranc~ferring
risk ref lass to ~ammeroial insurers car reinsurers- err other
insurance poc~l~s.
ARTTCL~ ~1C. R~6K MA1~iAC31EI~ENT ~!]MMI't'TEE~.
The Governing-.Beard tshall by resolution establish a Risk Management
Gammittee far each Risk 1~anagement Fragram imp~.emented by the
Authc~x~ity. Each Member City which eieots to participate in a Risk
Management I~rogram .will automatica~.lyb~come a member of that Rusk
Management Committee.
Each created conunittee shall. not became aperational,.err possess any
autk~ority, -until their proposed By-~Lat~s have been approved, by the
Governing ward. 1'he voting can the approval of ~y=Laws shall be
restricted to members of-.the Gaverraing Boa,rd_ representing cities
t~tho are members of the particular Risk Management Committee. A
two-thirds vote of these members is required for approval of the
By=Law~« Un approval of the By-Laws, the various Risk Management
~
KEN , ~F'IKER AND A~SUC . TEL fJo .81~-74-1187 Au.g 2~ , 91 10 ~ 59 h~o . Ci~2 P .09~'1~1
Committees shall become operational and will have all o~ the powers
specifically delegated to it by the Governing Eaard. When entering
into any transactions authorized by the ~averning Hoard, the
committee shall use the committee title and refer to the Authority,
i.e. a contract entered- into by the Workers' Gampensatian Risk
Management Cammittae of the Independent Cities Risk Management
Authority.
14?RTTCL'E X. ME~dBLI2 CITY RE~PONE~L.ITIEB.'
Each Member City participating in a Rick-Management Program th2~11
Dave the following responsibilities:
A. Ta appoir?t Qr remcave .its .member of the Governing Baard as set
forth in Article U.
B. Ta appoint or remove its member to the Risk Management
Committee.
G. To approve amendments to this Agreement as set forth in
A~`ticla xx.
~.T~~~~ ~cz. ~v~aET:
The aoard shall adopt an annual budget as soon as passible for the
first Fiscal Year and not later than thirty days prior tt~ the
beginining of each 'Fiscal-Year thereafter..
ARTI~I,H ~,II , OCTAL At~~AT 1~ND REVIE'~.
The Gavern.irg Baard shall cause an annual financial audit of the
accounts €ind ~recards to bc~ made by a Certified Public Accauntgnt in
compliance With Califorrtla Gavernrnertt Gode Sectit~ns X505 and 6505.5
or 65b5.5 with. respect to a13, receipts, diabursemeMte, other
transactions, and entries into the books of the Authority. The..
minimum. requirements of the audit ahali be those prescribed b}~ the.
State Controller for special districts under Government Cade
Section-26909 and shall conform to generally a.ccep~ad audit~.ng
standards. A report of each audit sha11 be,~iled as a public
record with. cacti of the .Member Cities and also with the county
auditor of the- county in which each of
the contracting parties is
located. The report shall be filed within twelve months of the
ficzcal year under examination. ~'ha ..Authority shat.l pay all costs
of such financial audits.
ARTI~;LE XII~. $~TAHLTSkTMEI3T ,~i1~M7CNi$TRATSi'aN C?F FUNDS,
x'unds of the Authority may be corningled far ~.n~rastment and
administration purposes. However., each Risk M$rt~gement program
sha~.l be accounted far separately on a full accrual basis.
War~`ants shall be drawn tc~ pay demands against the Authority. Said
warrants shall- be signed by both the President, .secretary or
'I'reasurex~ and an agent, emplt~yae or general manager of the
Authority.
k;Efd ,SPIKEf~ AhJD R`~SC1C . TEL No . X18-784-1187 tug 2~ , 91 1 ~ • 59 Na . riC~2 P . 1~~14
The coverage for each Fragram Year of each Risk Management Program
shall be as specified in the Memorandum of Coverage or policies of
insurance for that Program Year of the Risk Managcrnent Program..
Subject to appraval by the Governing Bbarcl, which appraval shall
net be unre2~sonably withheld, each Member City shall have the
.ability to determine in which Risk Management Program it wishes to
participate.
AR~=~L~ x=v. ~'xxHn~uwa~~.
A, Any :Member City which ~zntera a Risk Management Program may
:withdraw from that Riak Management Program subject to the terms
and conditions as sat forth in the By-Laws. of than particular
~tisk Management Committee.
8. A Member City is no longer a party to this Agreement open its
withdrawal from all of the Authority's programs,
-Any .Member City which withdraws as a participant cif any Risk
Management Program pursiuant to Section B of this Article shall
not be germitted to reneur participation in that ~tisk Management
program until the expira'~ion of three years from the .date of
the Member City's withdrawal.
~xFUZSxarr.
The Governing $oard may expel any Member City. from a Risk
Management Program at any time. far material breaches of this
Agreement or the By-Laws. Such ~xpulsian must be approved by ~.he
Governing ~aard members representing Member Cities in that Risk
ManagametYt Program ar by the vote ret~uar~ments for expulsion
specified in thQ By-Laws.
The withdrawal or expulsion of any Member City after the inception
of its participation in the Risk Management Program shall nc~t
term~.nate its responsibility far the years that the Member City
participated in any Risk.Nianagement Program.
~`aRT:LCLL,' ~CVI. TEIx,MINkT_It~71V.
This Agr$~?ment shall oontinue until terminated. However, it cannot
be terminated until such time all principal far the ~ertific$tea of
Participation shall have been retired. Thereafter, this Agreement
may be terminated by vote or written consent of two-thirds of the
Member Cities provided, however, that thii~ Agreement. ....and the
..Authority shall continue to exist for the purposes of d~,spc,sing all
claims, the diatribut~.on of asreta, and any other function
necessary to conclude the affairs of the Authority.
Upon"termination of this Agreement, all .assets of thc~ Authari.ty
shall be distributed only among the parties that have been
participants in itss Disk Management programs,.. including any off'
those parties which previrausly withdrew or were e~;pelled pursuant'
to Articles of this Agreement, in accordance with and proportionate
- ~ m
~KEhJ SPII:ER AND AS~OC . TEL No . X18-784-117 Rug , 91 1 ~ . 59 Na . C~f~2 P .11/14
~o their net premium payments m$de .during the term of this
Agreement. The Governing Baztrd-shall determine such di~stributian
within .six months aftQr the last claim covered. by this Agreement
has been f~.na].izad.
The Gavernirig Berard is vested with: all pawex~s of the Authority far
the purpose. of aancluding and dissolving the business affairs of
the Authority. These powers shall inolude the power: to require
thane Member Cities which were Risk Management Program participants
2~t the time of any particular occurrence whick~ was severed or
alleged to be wavered under. the Memorandum(s) of Coverage or
policies of insurance to pay their share at any ztddtianal amount
of premium deemed necessary by the Governing Board for the; final
dispasitian of alY clal.ms.arid expanses associated with such loss.
g$~IGLE ~1'~I. rIE19' MEMgE'k~C.
With the approval of two-thirds of the ~averning Heard, `any
qualifiQd city may beoame a party to this Agx~eem~nt. Continuing or
new membership is restricted to cities who are memk~ers of the
Independent Cities Assaciatian and area Vacated ir, the state of
California. A city requesting membership shall apply by presenting
to the Authority a re~alutian of the City Council's approval of the
~'oint Exercise of Powers Agreement and the individual Risk
Management Committee By-Laws that-'the city intends to loin. .The
date that the applying city will .become a Member City will be
determined by the Governing Board..
ARTICLE__~:VI~I. ~AE~LITY Off' '.SHE ~4UTHaHITY.
Each Member City agrees t4 indemnify arrd save the Authority and all
ether Member Citi~:s h2~rmless Pram and against all ol~.ims, lasses
anc'i damages, ineludinc~ legal fees a11d expenses, arising out af` $ny
breach ar de:fault on the part of such. Member City in performance of
any cif its obligations under this Agreement, err any act err
negligana$ of such Member City or any of its agents, cantractars,
servants, employees err l~.ce»eess with respect to this Agreement,
No indemnifioatian is made under this Section far claims, losses or-
damages, including legal fees and expenses,.. griming out of the
willful misconduct, »egligence ar breach cif duty under, .this
.Agreement by the Authority or a Member C~.ty or their officers,
emp~layeee, agents err contractors.
'the Representatives to the Governing Beard and to each of the 121sk
Management Gommitte~s and any officer, employee, contractor, or
agent of the Authority shall use ordinary Dare and reasonable
- diligence in the exercise of their power and in the performance of
their duties under this Agreement.
funds of the Authority .may tie used to defend, i.ndem»ify, and ha~,d
harm~.ess the Authority and any member of the governing Board, any
member of the Risk Management Committee, and any employee of the
Authority far their actions taken within the scope of their duties
~KEhd, BPIKER AhJD ASSC1~:. TEL No .818-784-1187 Rug X9,91 1U ~59 h!~ .0~2 P.12/14
.while acting an behalf of the Authc~z`ity. Nothing herein shall
limit the right of the Authority tc~ purchase insurance to provide
such coverage as is hereinabove set forth.
ARTICLE XIX. I+~O"1~IC$B.
Notices under this Agreement sha~.l be sufficient if delivered to
the office of the City Clerk of the Member Cities.
ARTICLE. XX. AMENDMENTS T(? THIB A(3#~~~MENT ANt7 COMMITTEE B~C~LA 8.
This Agreemont may be amended at any time by vote of two-thirds of
the Member Cities acting through their City Council. Amendments to
the individual Risk Management Committee By-Laws requf.re two-third
voto of the ~overn~.ng Board members representing cities who are
members of that Rink Management Caitunittee.
~iXtt'T'ICLE XXI. BEVERA$IIrXTY.
Should any portion, term, condition, ar pxc~visian of this Agreement
be decided by g c[~urt of competent juri~dictian to be i~.legal or in
conflict with. piny .law of the State of California, dr be otherwise
rendered unenforceable or ineffectual., the .validity of the
remaining portions, term, conditions, ~Md provisions shall net be
affected thereby.
8R~'SCLE X~C,. EER~ENx C+~MPLETE.
'I'he foregoing canstitutcs the. full anal complete Agreement. of the
parties. There are no oral understandings ar agreements net set
forth in writing herein.
ARTICLE__ 3~XII I .
Ttlie amended Agreement shall became effective open the Authority
receiving notice of the apprQV$1, by the City Council of two-thirds
of tree Member Cities.
- 1 U
~KEhJ , SE'IKEf~ ~fdD R:~~SJC . TEL hJo . X18-~~4-117 Rug 2~ , 91 10 ~ ~9 fJo .002 P . 13f`14
YN WITNESS WHEREOF, the parties hereto have executed-this Ag~~afi~rtt
as of the day and year first written above.
City. of
By _ _
Title
Executed before me this
...day of 1~9_
{City ~~al)
_ _
City Clark
City ~f
11
~KEhJ ;PIKER ANI7 A~SOC . TEL hJ~ . ~ 1 ~-'84-11 P,7 Auc~ 29 , 91 1 C~ ~ 59 N~ . U02 P . 14/ 14
INDEPENDENT CITIES R~SIC ~ANAOEMEIdT AUTHORITY
MEMBER CITLFB
1. Alhambra 16. xur~tiirigtvll Park
2. ,Ar~r~dia i7. Indio
3. A~usr~ 1$. Inglewood
4. I32~1dwin Park 19. .Lynwood
5. Be11 2~. Manhattan Beach
6. CoYtc~ri 2.1. Man~'c~via
7, Caster Mersa 22. Monterey park
8 . Culver City 2 ~ . ~t~dC~ilda Beach
Downey 24. San Fernando
1~. E1 Monte: 25. Souttl Gate
17.. E1 Segun~3Q Ugland
12. Gardena ~7. Vernon
1.3. Glendora 28. West C~vix~a
14« Hawthorns 29. Whittier
15. Hermosa Beach
].2 -
f
SECOND AMENDMENT TO TRUST AGREEMENT.
.Dated as of July 1, 1990
among
SEATTLE-FIRST NATIONAL BANK, as Trustee,
the
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY,
_ as_Provider.
the CITIES OF ALHAMBRA ARCADIA, AZUSA BALDWIN PARK, BELL,
CULVER CITY, DOWNEY,-EL MONTE,
GLENDORA,'HAWTHORNE, HERMOSA BEACH, HUNTINGTON PARK,
INDIO, INGLEWOOD, LYNWOOD, MANHATTAN BEACH, MONTEREY PARK,
REDONDO BEACH, SAN FERNANDO, SOUTH GATE,
VERNON, WEST COVINA, AND WHITTIER, CALIFORNIA,
as Provdees,
and "
the Cities-of COLTON,.COSTA~MESA, EL SEGUNDO,
MONROVIA, and UPLAND,
as Addtional'Provdees
2.65.8004/1
SECOND AMENDMENT TO
' TRUST AGREEMENT
THIS SECOND .AMENDMENT TO TRUST AGREEMENT, dated as of July
1,.1990, by and among SEATTLE-FIRST NATIONAL BANK, a national
banking association duly organized-under--the laws of the'United
States, as trustee (the "Trustee"), the INDEPENDENT CITIES.-RISK
MANAGEMENT AUTHORITY, a joint exercise of powers agency duly
organizedandexisting under the laws of the State of
California, including, without limitation, Section 6500 et sea.
of the Government Code of the State-of California, as provider: .
(the "Prov;ider"), the CITIES OF ALHAMBRA, ARCADIA, AZUSA,
BALDWIN PARK, BELL, CULVER CITY, DOWNEY, EL MONTE, GLENDORA,
HAWTHORNE, HERMOSA.BEACH, HUNTINGTON PARK, INDIO, INGLEWOOD, _
LYNWOOD, MANHATTAN BEACH, MONTEREY PARK, REDONDO BEACH, SAN
FERNANDO, SOUTH GATE,,VERNON, WEST COVINA, AND WHITTIER;
CALIFORNIA, .each a municipal corporation-duly. organized and...
existing under:: the Constitution and laws of said State, as
providees (each a'"Providee° and, collectively., the
"Providees"), and .the Cities of COLTON, COSTA MESA,-EL SEGUNDO,
MONROVIA, and UPLAND, each a municipal corporation duly
organized and existing under the Constitution and laws of the
State, as additional providees (each an "Additional-Providee"
and collectively the."Additional Providees");
W I T N E ~ E T H
.WHEREAS, ,:the Provider, the Providees, and the Cities of
Colton and Monrovia have entered into a Liability Risk Coverage
Agreement,: dated as of Januarg 1, 1987, as amended>by the First
Amendment, thereto, dated. July 1 1987 (the "Agreement"),:
whereby 'the Provider has agreed to provide certain levels of
liability insurance coverage ..(the "Coverage") to Colton,
Monrovia, and each of the Providees and Colton, Monrovia, and
each of the Providees have agreed to pay a Par icpation
- Premium (including.,Basic Premium) to the Provider in
consideration for the Coverage; and
..WHEREAS, the Provider, the Trustee, the Providees, and .the
Cities of Colton and Monrovia have entered into a Trust
Agreement, dated as of January 1, 1987, as amended.. by the First
Amendment thereto, dated July 1, 1987 (the "Trust .Agreement"),
whereby the :Provider and the Providees authorized the sale of
Certificates. of Participation {as defined in the Trust
Agreement) in'order to finance--the establishment of funds held
by the .Trusteefbr the payment of insured-against claims
pursuant to the terms of the Coverage and the Agreement; and.
1
2658b04/1
WHEREAS, the Agreement provides that Coverage may be
provided to new providees upon satisfaction of certain
requirements contained in Section-6.l thereof, including
approval by the. Governing Board of the Provider <as de-fined in
the Trust Agreement) and by the.new Providees of amendments to
the. Agreement and to the. Trust Agreement and the time of
approval not being of the essence the April: 15 deadline stated
in Section 6.l has been extended by.mutual consent of the
parties hereto until December 31, 1990,-as to this-amendment;
and
.WHEREAS,. the Governing Board has-.been presented at this
time with a-form of a proposed amendment to the Agreement; and
WHEREAS, the Governing Board .has been delegated, in .the
Agreementand. by Resolution,-the authority to-approve ,such
necessary amendments on behalf of the Providees, Colton, and
Monrovia and-each member. of the Governing-Board has been.
delegated authority by .resolutions of the respective Providee,
Colton or Monrovia that he or she represents to approve such
amendments on behalf of such Providee, Colton or Monrovia; and
WHEREAS, the .required. amendments to the Agreement and Trust
.Agreement have been executed by the parties hereto and all
other requirements to extending .coverage. have`-been satisfied;
and
.WHEREAS,- at the time of delivery of the 'opinion of Bond
Counsel, the required reports of the P,ctuary, the independent.
financial consult-ant and the insurance consultant-broker of
.record will be updated. and made current so ,that at such time
the amendments will become affective and Coverage for Costa
Mesa,::E1 Segundo, and Upland. will commence retroactive to
September 1, 1990, July 17, 1990, and July 1, 1990.,
respectively; and
WHEREAS, the Provider, the Providees, and the Additional
Providees wish to. set-forth certain terms amendatory of `the
Trust Agreement :conforming to the Amendment to the; Agreement
and clarifying certain provisions of the Trust Agreement from
and after the. date-hereof;
NOW THEREFORE., in consideration of .the above premises and -
of the mutual covenants hereinafter contained and for other
...good and valuable consideration, the. parties hereto agree as
follows:
SECTION 1. 1. Amendment of Definitions. The Trust
.Agreement is hereby amended by O adding to Section 1.01
thereof the. terms hereinafter defined and (ii) inthecaseof
any of the following terms which are also defined in the Trust'
2
26580.04/1
- ; -
Agreement, by deleting such terms as so defined in the Trust
Agreement.
"Additional Providee".means each of-the Cities. of Colton,
Costa Mesa, E1: Segundo, Monrovia, and Upland and anyother.
additional providee duly admitted to Coverage. in conformity
with the requirements of the Agreement subsequent to the -
original execution and delivery of the Agreement.
"Allocable Prgportion" means the percentage of each
Administrative Premium; Supplemental Basic Premium and, prior
to the Coverage Periods commencing on Juiy 1, 1989 with xespect
to the Original Providees, July 1,.1990 with respect to the
Cities of Colton .and Monrovia, and July 1, 1993 with respect to
the cities of Costa Mesa, E1 Segundo, and Upland., Risk Premium,
required to be paid by each Providee as set forth in Exhibit
D-1 of the Agreement; provided that-with respect to 'each
Original Providee, the percentage of Supplemental .Basic Premium
required to be paid shall remain the percentage: set forth in
Exhibit D ofthe Agreement, subject to a credit for-any amounts.
paid in lieu of Supplemental Basic Premium by Additional
Providees, allocated among Providees in accordance with the
proportions set forth in Exhibit-D of the Agreement.
"Basic Premium Payment Date" means Augustel of each year
during the period in which Certificates are-.Outstanding,
provided,- however, that. with respect to the first Coverage
Period, the. Basic Premium Payment-Date-shall be the date of
initial delivery of the Certificages; and further provided .that
with respect to the: Additional Providees,-the initial Basic
Premium Payment Date shall:: be the first August 1 following the
date-of execution and. delivery. of the Amendment to the Trust
Agreement relating to such Additional Providee, in the case of
the first Amendment, August-1, 1987, and in the case of this
second Amendment,,.August 1 1990.
"Providee" means each municipal corporation or joint powers
authority which. is a party to the Agreement,- as'such Agreement
may be amended from time to time.-
"Risk Premium" means, with .respect.. to each Providee, an
amount: equal.. to such-Provdee's Allocable Proportion. .(prior to
July.. 1, 19:89 in the case of Original Providees and July-1 of -
the year occurring three years. after the commencement of
Coverage with respect to `each Additional Providee) or Risk
.Premium Proportion (on or after July 1, 1989 in the case of
Original Providees and. July 1 of the year occurring three years
after the commencement of Coverage with respect to each
Additional Providee) of`the total amount necessary to fund
estimated Loss Reserves required to be established to pay
3
265800.4/1
1,
Settlements of all Provideesfor a Coverage Period as
determined according to the methodology set forth in Section
4.4(e) of the`Agreement.
SECTION 2. Amendment of Notice Addresses. Section 14.04
of the Trust Agreement is further amended to include, in -
addition to all Provdee notice addresses and Additional v
Providee notice addresses included therein, the following
notice addresses for the Additional Provdees named below:
CITY OF COSTA MESA
77 Fair Drive
Costa Mesa, California 92628-1200
ATTENTION: Risk Manager
'CITY OF EL SEGUNDO
350 .Main Street
E1 Segundo,_California 90245
..ATTENTION: Finance Director
.CITY OF UPLAND:
460 North Euclid Avenue
Upland, California :..91785
ATTENTION: Finance Director.
SECTION 3. Incorporation of Terms of Trust Agreement. By-
execution of thin Amendment, the parties hereto signify their
acceptance in full of the mutual terms and conditions contained
in the Trust Agreement as further amended. by the terms"hereof.
SECTION"4. Execution in Counterparts. This Amendment may
be executed in several counterparts, each of which. shall be .an
original and all of which shall constitute-.but one .and-.'the same
instruments
SECTION 5. Severability. In the event any provision of
::this Amendment shall be held invalid of unenforceable_by any
-court of competent jurisdiction, such holding ;shall not-
invalidate or render unenforceable ..any. other provision hereof.
SECTION 6. Applicable Law. This Amendment shall be
governed by and construed in accordance with the laws of the
State of California.-
- SECTION 7. Capt-ions. The captions or headings in_this
Amendment are for convenience only and in no way define, limit
or describe the scope or intent of any provisions or Sections
of this Amendment.
4
2658004/1
i,
IN WITNESS WHEREOF and of the unanimous:. approval_by the..
Governing Board of the Provider of the foregoing, the Provider
'has caused this Amendment to be executed in its-name by its
duly authorized officers; and each member of the Governing
Board has executed this Amendment on behalf of the Providee
such member represents; and each Additional Provdee has caused
this. Amendment to be .executed in its name by its duly
authorized officers and sealed with its seal, as of the date
first above written.
Effective Date: July 1, 1990
INDEPENDENT CITIES RISK
MANAGEMENT AUTHORITY
as Provider
By
President
Attest:
By:
Secretary.
SEATTLE-.FIRST-NATIONAL BANK
as Trustee
By
CITY'OF ALHAMBRA
as Providee
Hy
- CITY. OF ARCADIA
as Providee
By
5
2658004/1
CITY OF AZUSA
as Providee
By
CITY OF BALDWIN PARK
as Providee
By
CITY OF BELL
as Providee
By
CITY OF CULVER CITY
as Providee
By
CITY OF DOWNEY
as Providee
'By
CITY OF EL MONTE
as Providee
By
6
2658004/1
CITY OF GLENDORA
as Providee
By
CITY OF HAWTHORNE
as Providee
By
CITY OF HERMOSA BEACH
as Providee
BY
CITY OF HUNTINGTON PARK
as Providee
By
CITY OF INDIO
as Providee
By
CITY OF INGLEWOOD
as Providee
By -
7
2658004/1.
f
CITY OF LYNWOOD
as Providee
By
CITY OF MANHATTAN BEACH
as Providee
By
CITY OF MONTEREY PARK
as Providee
By
CITY OF REDONDO BEACH
as Providee
By
CITY-OF SAN FERNANDO
as Providee
By
CITY OF SOUTH GATE
as Providee
By
8
` 2658004/1
a
t
CITY OF VERNON
.ATTEST: as Providee
Bruce V. Malkenhorst ~Leonis C. Ma urg, M yor
City Clerk
CITY OF .WEST COVINA
as Providee -
By
CITY OF WHITTIER
as Providee
By
CITY OF COLTON
as Additional Providee
By
CITY OF MONROVIA
as Additional Providee
By _
9
2b58004/1
CITY OF COSTA MESA
as Additional Providee
By
(SEAL)
Attest:
By:
Title
CITY OF EL SEGUNDO
as Additional Providee
By
(SEAL)
Attest:
By:
Title
CITY OF UPLAND
as Additional Providee
By
(SEAL)
Attest:
By:
Title
10
2658004/1
1
SECOND AMENDMENT TO
LIABILITY RISK COVERAGE AGREEMENT
THIS SECOND AMENDMENT TO LIABILITY RISK COVERAGE AGREEMENT,
dated as of July 1, 1990, by :and among. the INDEPENDENT CITIES
RISK MANAGEMENT .AUTHORITY, a joint e$ercise of`powersagency
duly organized and existing under the laws of the State of
California, including, without limitation, Section 6.500 ~t sea.
of the Government Code of the State of California, as pxovider
{the "Provider"), the CITIES OF ALHAMBRA, ARCADIA, AZUSA,
BALDWIN PARK, BELL, CULVER CITY, DOWNEY, EL-MONTE, GLENDORA,
HAWTHORNE, HERMOSA BEACH, HUNTINGTON PARK, INDIO, INGLEWOOD,
LYNWOOD, MANHATTAN BEACH,_MONTEREY PARK, REDONDO BEACH, SAN
FERNANDO .SOUTH GATE, VERNON, WEST COVINA, AND WHITTIER,
CALIFORNIA, each a municipal corporation duly organized and
-existing under the Constitution and laws of said State, as
providees (eacha "Providee" and, collectively; the
"Providees"), and the Cities of COLTON, COSTA MESA, EL SEGUNDO,
MONROVIA, and UPLAND, each a municipal 'corporation duly
organizedand'.ezisting under the Constitution and laws. of the
State, as additional providees (each"an "Additional Providee"
and collectively the "Additional Providees")
W I T N E S S E T' H
WHEREAS, the Provider, the Providees, and"the Cities of
Colton and Monrovia have entered-into a Liability Risk Coverage
Agreement, dated. as of January 1, 1987, as amended by the First
.Amendment thereto, dated July 1, 1987 (the "Agreement"),
whereby the Provider has agreed to provide certain levels of
liability insurance coverage (the "Coverage") to Colton,
Monrovia, and each of the .Providees and ,Colton, Monrovia, and
each of..the Providees have agreed to pay a Participation
Premium (including Basic Premium) to the Provider in
consideration £or the Coverage; and
WHEREAS, the Agreement provides that Coverage may be
provided to new Providees upon satisfaction:of certain
requirements contained in Section 6.1 thereof, including
approval by the Governing. Board of the Provider (as defined in
the Agreement) and by the'new Providees of-an amendment to the-
Agreement and the time of approval not being. of the essence the
April 15 deadline `stated in, Section 6.1 has. been eztended by
..mutual consent of the parties hereto until December 31, 1990,
as to this amendment; and
.WHEREAS, the Governing Board. has been delegated, in the
Agreement and by Resolution,-the. authority: to approve such
1
2658004/2
1
r
necessary amendments on behalf of the Providees, Colton, and
Monrovia and each member of the Governing Board has been
delegated authority, by resolution by .the respective Providee,
Colton. or Monrovia. that he"or she. represents,. to approve such
amendments on behalf of such. Providee, Colton or Monrovia; and
WHEREAS, the required amendments to the Agreement and Trust
Agreement have been executed by the parties hereto and all
other requirements to extending coverage have been satisfied;
and
WHEREAS, at the time of delivery. of-the opinion of Bond
Counsel, the required reports of the Actuary, the independent
financial consultant and the insurance consultant-broker of
record will be; updated and made current so that at .such time
the amendments will become effective and Coverage for Costa-
Mesa, E1 Segundo, and .Upland will commence retroactive to
September 1, 1990,.Ju1y.17, 1990, and July 1, 1990,
respectively; and
WHEREAS, the Provider, the Providees, and the Additional
Providees wish to set forth-.certain terms amendatory of the
Agreement under which Coverage may be extended to Costa Mesa,
E1 Segundo, and Upland;
NOW THEREFORE, in consideration of the above premises and
of the mutual covenants hereinafter contained and for other
good. and valuable consideration, the parties hereto agree-as
follows:
SECTION 1.1. Amendment of Definitions. The Agreement. is
hereby amended by ~i) adding to Section l thereof the terms
hereinafter defined and`(ii) in the case of any of the`
following terms which are .also defined in the Agreement,.. by
deleting such terms as sodefinedin the Agreement.:
"Additional Providee" means each of the Cities of Colton,
-Costa Mesa, E1 Segundo, Monrovia, and :Upland and any other
additional providee duly admitted to Coverage in conformity
.with the requirements of the.. Agreement subsequent to the
original. execution and delivery of the.. Agreement.
"Allocable Proportion" means the percentage of each
Administrative Premium,'. Supplemental Basic Premium and, prior
to the Coverage'Periods commencing on July 1, 1989 with respect
to Original Providees, July 1, 1.990. with respect to the Cities
of Colton and Monrovia:, and July 1, 1993 with respect to the
Cities of Costa Mesa., E1 Segundo, and Upland, Risk'Premium,
required to be paid by each..Providee as set forth-`in Exhibit
D-1 of .this Agreement; provided that. with respect to each
2
2658.004/2..
1
Original Providee, the percentage of Supplemental Basic Premium
required to be paid shall remain the percentage set forth in
Exhibit D hereof, subject to a credit for any amounts paid in
lieu of Supp emental Basic Premium by Additional Providees,
allocated among Providees in accordance with the proportions
set forth in Ezhibit D.
Section 1.2. Amendment of Exhibits. The Agreement. is
hereby further amended by adding the provisions-to Exhibits A,
Band D set forth in the Exhibits to this Amendment. With
respect. to Ezhibt~B, such amendment shall be effective as of
July 1, 1989.
SECTION 2. Coverage. Coverage will commence following
satisfaction of all requirements as set forth in the recitals _
to this Amendment.
SECTION 3. Incorporation of Terms of Agreement. By
execution of this Amendment, the parties hereto signify their
acceptance in full of the mutual terms and conditions contained
in the Agreement and as further amended by the terms hereof.
SECTION 4. Execution in Counterparts. This Amendment may
be executed in several counterparts, each of which-shall be an
original and all of which. shah constitute but one and the same
-instrument.
SECTION 5. Severability. In the event any-provision of
this Amendment shall be held invalid or unenforceable by any.
- court of competent jurisdiction, such holding shall not
invalidate or render. unenforceable any .other provision hereof.
SECTION 6. Applicable Law.. This Amendment shall be
governed by and .construed in accordance with the laws of the
Sfate of, California.
SECTION 7. Captions. The captions or .headings. in this
Amendment are for__convenience only and in no way define, limit
ordescribe the scope or intent of any provisions or Sections
of this. Amendment.
3
2658004/2
1.
IN WITNESS WHEREOF and. of the unanimous approval by the
Governing Board of-.the Provider of the foregoing, the Provider
has caused this. Amendment to be executed in its name by its
duly authorized officers; and each member of the Governing
Board has executed this Amendment on behalf of the Providee
such member represents; and each Additional Providee has caused
this. Amendment to be executed in its name by its duly-
authorized officers and sealed with its seal, as .of the date
first above written.
.Effective Date: July 1, 1990
INDEPENDENT CITIES. RISK
MANAGEMENT AUTHORITY
as Provider
By
President
.Attest:
By:
CITY OF ALHAMBRA
as Providee
By
CITY OF ARCADIA
as Providee
By
CITY OF AZUSA
as Providee
By
4
265.8004/2
1.
CITY OF BALDWIN PARK
as Providee-
By
' CITY OF BELL
as Providee
By
CITY OF CULVER CITY
as Providee
By
CITY OF DOWNEY
as Providee
By
a
CITY OF EL MONTE
as Providee
`By
-CITY OF GLENDORA
as Providee
By
5
2658004/2'
j.
CITY OF HAWTHORNE
as Providee
By
CITY OF HERMOSA BEACH
as Providee
By
CITY OF HUNTINGTON PARK
as Providee
By
CITY` OF INDIO
as Providee
_ By
CITY OF INGLEWOOD
as Providee
By _ ,
CITY-OF LYNWOOD
as Providee
By
6
2658004/2
CITY OF MANHATTAN BEACH.
as Providee
By
CITY OF MONTEREY PARK
as Providee-
BY
CITY OF REDONDO BEACH
as Providee
: By
CITY OF SAN FERNANDO
as Providee
By
CITY OF SOUTH GATE
as.Providee-
. By
CITY OF VERNQN
ATTEST: as Providee`
v By -~~~'i,
may'
Bruce V. Malkenhorst ~ eonis C. Ma burg
City Clerk ayor
7
2658004/2
j
CITY OF WEST COVINA
as Providee
By
CITY OF WHITTIER
as Providee
By
CITY OF COLTON
as Additional Providee
By
CITY OF. MONROVIA
as Additional Providee
By
CITY OF COSTA MESA
as Additional Providee
Bg
(SEAL)
Attest•
By
Title
8
2658Ob4/2
CITY OF EL SEGUNDO
as Additional Providee
By
(SEAL)
Attest:
By
Title
CITY OF UPLAND
as .Additional Providee
BY
(SEAL)
Attest:
By
Title
9
.2658004/2
r
EXHIBIT :A
ICRMA CITY: COSTA MESA
PROPORTION:
4.00%
DATE PRINCIPAL INTEREST PERIOD TOTAL FISCAL TOTAL
01-Sep-87 0.00 0.00
01-Mar-88 ~ 0.00 0.00 0.00 0.00
01-Sep-88 0.00 0.00
01-Mar-89 0.00 0.00 0.00 0..00
01-Sep-89 0.00- 0.00
01-Mar-90 0.00 0.00 0.00. 0.00
01-Sep-90 32,566.02 32,566.02
01-Mar-91 37,000.00 39,229.70 76,229.70 108,795.72
01-Sep-91 38,165.95 38,165.95._
01-Mar-92 39,400.00. _38,165.95 77,565.95 715,731.90
01-Sep-92 36,983.95 36,983.95
01-Mar-93 41,600.00 36,983.95 78,583.95.- 915,567.90
01-Sep-93 35,694.35 35,694.35
01-.Mar-94 44,400.00 35,694.35 80,094.35 115,788.70
01-Sep-94 - 34,273.55 34,273.55
01-Mar-95 47,400.00 34,273.55 81,673.55 115,947.10
01-Sep-95 32,709.35 32,709.35
01-Mar-96 50,400.00 32,709.35 83,109,35 115:,818.70
01`-Sep-96 30,995.75 30,995.75
01-Mar-97 54,000.00. 30,995.75 84,.995.75 175,991.50
01-Sep-97 29,732.75 -29,132.75
01-Mar•98 58,000.00 29,132.75 87,132.75 116,265.50
01-Sep-98 27,102.75 27,102.75
01•Mar-99 62,000.00 27,102.75 89,102.75- 116,205.50
01-Sep-99 24,932.75 24,932.75
01-Mar-2000• 66,400.00 24,932.75. 91,332.75 116,265.50 _
01-Sep=2000 22,525.75 22,525.75
01-Mar-2001 71,200.00 22,525.75 93,725.75 716,251.50
01-Sep-2001 19,944.75 19,944.75..
01-Mar-2002 76,400.00 19,944.75 96,344.75 116,289.50
01-Sep-2002 17,175.25 17,175.25
01•Mar-2003 81,800.00 17,175:25 98,975.25 116,150.50
01-Sep-2003 14_,210.00. 14,210.00
01-Mar-2004 88,000.00 14,210.00 1.02,210.00 116,.420.00 _
01-.Sep-2004 11,020.00 11,020.00
01-Mar-2005 94,000.00 11,020_00 105,020.00 116,040.00
01-Sep-2005 7,612.50 7,612.50
01-Mar 2006. 101,000.00 7,612.50 108,612.50 116,225.00
01-Sep-2006 3,.951.25 3,951.25
01-Mar-2007 109,000..00 3,951.25 112,951.25 11.6,902.50
1,122,000.00 844,657.02 1,966,657.02 1,966,657.02
ACCRUED 0.00 0.00
844,657.02 1,966,657.-02
EXHIBIT A t'
ICRMA CITY: EL SEGUNDO
.PROPORTION:
3.18%
DATE PRINCIPAL INTEREST PERI00 TOTAL. FISCAL TOTAL
01-Sep-87 0.00 0.00
01-Mar-88 0.00 9.00 0.00 0.00
01-Sep-88 0.00 0.00
-01-Mar-89 -0.00 0.00 0.00 0.00
01-Sep-89 0.00 0.00
01-Mar-90 0.00 0.00 0.00 0.00
01-Sep-90 29,820.48 29,820.48
01-Mar-91 29,415.00 31,187.61 60,602.61 90,423.09
01-Sep-91 30,341.93 30,341.93
01-Mar-92 31,323.00. 30,341.93 61,664..93. 92,006.86
01•Sep-92 29,402.24 29,402.24-
01-Mar-93 33,072.00 29;402.24 62,474.24 91;876.48
01-Sep-93 28,377.01 28,377.01.
01-Mar-94 35,298..00 28,377.01 63,675.01 92,052.02
01-Sep-94 27,247.47 27,247.47
01-Mar-95 37,683.00 27,247.47 64,930.47 92,177.94
01-Sep-95 26,003.93 26,003.93
01-Mar-96 40,068.00. 26,003.93 66,071.93 92,075.87
01-Sep-96 24,641.62 24,641.62
01-Mar-97 42,930.00 24,641.62 -67,571.62 92,213.24
01-Sep-97 23,.160.54 23,160.54
01-Mar-98 46,110.00 23,160.54- 69;270.54 92,431.07
01-Sep-98 21,546.69- 21,546.69
01-Mar-99 49,290.00. 21,546.69 70,836.69 92,383.37
01-Sep-99 19,827.54... 19,821.54
01-.Mar-2000 52,788.00 19,821.54 72,609.54 92,431.07
01-Sep-2000 17,907.97 17,907.97
01-Mar-2001. 56,604.00 17,907.97 74,511.97 - 92,419.94
01-Sep-2001 15,856.08 15,856.08
01-Mar-2002- 60;738.00. 15,856.08 76,594.08 92,450.15
01•Sep-2002 13,654.32. 13,654.32
01-Mar-2003 65,031.00 13,654.32 78,685.32 92,339.65
01-Sep-2003 11,296.95 11,296.95
01-Mar-.2004 69,.960.00 11,296.95 81,256.95 92,553.90
01-Sep-2004 8,760.90 8,760.90
01-Mar-2005 74,730.00 8,.760.90 83,490.90 92,251.80
01-Sep-2005 6,05 1.94 6,051.94
01-Mar-2006 80,295.00 6,051.94 86,346.94 92,398.88
01-Sep-2006 3;141.24.- 3,141.24
01-Mar-2007 86,655.00 3,141.24 89;796.24 92;937.49
891,990.00 675,432.83 1,567,422.83 1,567,422.83
ACCRUED 0.00 0.00
675,432.83 1,567;422.83
EXHIBIT A L
ICRMA CITY: UPLAND
PROPORTION:.
2.06%
DATE PRINCIPAL INTEREST PERdOD TOTAL FISCAL TOTAL
01-Sep-87 0.00 0.00
01-Mar-88 0.00 0.00 0.00 0.00
01-Sep-88 0.00 .0.00.'
O1-Mar-89 0.00 0.00 0.00 0.00
01-Sep-89 0.00 O.bO
01-Mar-90 0.00 0.00 0.00 0.00 _
01-Sep-90 20,203.30 20,203.30
01-Mar-91 19,055.00 20,203.30 39,258.30 59,461.59
01-Sep-91 19,655.46 19,655.46
01-Mar-92 20,291.00 19,655.46 39,946.46. 59,601.93
01-Sep-92 19,046.73 19,046.73
01-Mar-93 21,424.00 19,046.73 40,470.73 59,517.47
01-Sep-93 18,382.59 18,382.59.-
01-Mar-94 22,866.00 18,382.59 41,248.59 59,631.18
01-Sep- 94 17, 650.88 17, 650.88
01-Mar-95 24,411.00 17,650.88 42,061.88, 59,712.76
01-Sep-95 16,845.32 16,845.32
01-Mar-96 25,956.00 16,845.37 42,801.32 59,646.63
01-Sep-96 15,962.81 15,962.81•
01-Mar-97 27,810.00 15,962.81 43,772.81 59,735.62
01-sep-97 15,003.37 15,003.37
01-Mar-98 29,870.00 15,003,37 44,873.37 59,876.73
01-Sep-98 13,957.92 13,957.92
01-Mar-99 31,930.00. 13,957.92 45,887.92 59,845.83
01-Sep-99 12,840.37. 12,840.37
OLMar-2000 34,196.00' 12,840.37- 47,036.37 59,876.73
01-Sep-2000 :11.,600.76 11,600.76
01-Mar-2001 36,668.00 11,600.76 48,268.76 59,869.52
01-Sep-2001 10,27T.55 10,271.55-
01-Mar-2002 39,346.00 10,271.55 49,617.55 59,889.09
01-Sep-2002 8,845.25 8,845.25-
01-Mar-2003 42,127.00. 8,845.25 50,972.25... 59,817.51
-01-Sep-2003 7,318.15: 7,318.15
01-Mar-2004 45,320.00 7,318.15 52,638.15. 59,956.30 _
01-Sep-2004 5,675.30 5,675.30
01-Mar-2005 48,410.00:' 5,675.30 54,085.30 59,760.60.
01=Sep-2005. 3,920:44 3,920.44
01-Mar-2006 52,015.00 3,920.44 55,935.44 59,855.88
01-.Sep-2006 2,034.89 2,034.89
01-Mar-2007 56,135.00 2,034.89 58,169.89 60,204.79
577,830.00.. 438,430.16 1,016,260.16 1,016,260.16
ACCRUED A,00 0.00
438,430.16.. 1,016,260.16
EXHIBIT B
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
PUBLIC ENTITY LIABILITY
AGREEMENT NO. ICAPL y 027
DECLARATIONS
This will certify that .the following MEMBER. is covered, in accordance: with the terms and
conditions of the Master Memorandum of Public Entity_Liability Coverage, by the INDEPENDENT
CITIES RISK. MANAGEMENT AUTHORITY,. hereinafter known as 1CRMA.
1. MEMBER: City of Costa. Mesa
2. MAILING ADDRESS: Post Office Sox 1200
Costa Mesa, California 92628-1200
3. MEMBER SINCEc - September 1, 1990
4. MEMORANDUM PERIOD: From 9-1-90 To 7-t-91 12:01 A.M. Standard Time at the
address of the MEMBER as stated herein.
5. ICRMA'S LIABILITY: LESS MEMBER'S RETAINED LIMIT, AS ULTIMATE NET
$10,000,000 LOSS as the result of anyone OCCURRENCE because
of BODILY INJURY or PROPERTY bAMAGE or
PERSONAL INJURY or PUBLIC OFFICIALS' ERflORS AND
OMISSIONS, or any combination thereof, during the
• MEMORANDUM PERIOD.
6. MEMBER'S RETAINED LIMIT: ULTIMATE NET LOSS as the result of any :one
$1,000,000 OCCURENCE because of BODILY INJURY or PROPERTY
DAMAGE or PERSONAL INJURY or PUBLIC OFFICIALS'
.ERRORS AND OMISSIONS, or any combination thereof,
during the MEMORANDUM PERIOD,
7. CLAIMS ADJUSTING FIRM: Carl Warren & Co.
Post Office Box 25180
Santa Ana, California 92799-5180
8. ANNUAL.DEPOSIT PREMIUM: $301,106
PRO-RATA PREMIUM: $249,960
9, Endorsements attached to AGREEMENT at inception:
Countersigned by
Authorized Representative
This Declarations and Coverage Part(s), with Standard Provisions and Endorsements, if any, issued to form'
a parf hereof, completes the above-numbered AGREEMENT..
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
141.56 Magnolia $oulevard, Suite 103,
Sherman Oaks, CA 91423 (818).981-7076
Note: Effective upon completion of admission .process.
EXHIBIT B
1
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
PUBLIC ENTITY LIABILITY
AGREEMENT NO. ICAPL 1026
DECLARATIONS
This will .certify that the following MEMBER is covered, in .accordance with the terms and
conditions of-the Master Memorandum of Public Entity Liability Coverage, by the INDEPENDENT
CITIES RISK MANAGEMENT AUTHORITY, hereinafter known as ICRMA.
1. MEMBER: City of E! Segundo
2. MAILING ADDRESS: 350 Main Street
EI Segundo, California 90245
' 3. MEMBER SINCE: July i7, 1990
4. MEMORANDUM PERIOD: from 7-17-90 To 7-1-91.12:01 A.M.'Standard Time at the
address. of the MEMBER as stated herein.
5. ICRMA'S LIABILITY: LESS MEMBER'S RETAINED LIMIT, AS ULTIMATE NET
$1.0,000,000 LOSS as the result of any one OCCURRENCE because
of BODILY INJURY. or PROPERTY DAMAGE or
PERSONAL INJURY or PUBUGOFFICIALS' ERRORSAND
OMISSIONS, or any combination thereof, during the
' MEMORANDUM PERIOD.
6. MEMBER'S RETAINED LIMIT: ULTIMATE .NET LOSS as the result of any one
$400,000 OCCURENCE because of BODILYINJURY or PROPERTY
DAMAGE or PERSONAL INJURY erPUBLIC OFFICIALS'
.ERRORS AND OMISSIONS, or anycombination thereof,
during: the MEMORANDUM PERIOD.
7. CLAIMS ADJUSTING FIRM: Colen&-Lee
1930 South Brea Canyon Road, suite 100
Diamond Bar, California 91765
8. ANNUAL DEPOSIT PREMIUM: $239,380
PRO-.RATA PREMIUM: $278,887
9. Endorsements attached to AGREEMENT at inception:
.Countersigned by Gr'~ /C
Authorized Representative
.This Declarations and Coverage Part(s), with Standard Provisions and Endorsements, if any, issued to form
a part hereof, completes the above-numbered AGREEMENT.
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
14156 Magnolia Boulevard, .Suite .103,
Sherman Oaks, CA 91423. (818) 981-7076
Note: Effective upon completion-of admission process.
EXHIBIT B
. 1
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
PUBLIC ENTITY LIABILITY
AGREEMENT NO. 1CAPL 1025
DECLARATIONS.
This will certify that the following MEMBER is covered, in accordance with, the terms and
conditions of the Master Memorandum of Public Entity Liability Coverage, by the INDEPENDENT
CITIES-.RISK MANAGEMENT AUTHORITY, hereinafter known as ICRMA.
i. MEMBER: City of Upland
2. MAILING ADDRESS: -Post Office Box 460
Upland, California-91.785
' 3. MEMBER SINCE: July 1, 1990.
4. MEMORANDUM PERIOD: .From 7-1-90 To 7-1-91 12:01 A.M. Standard Time: at the
address"of the .MEMBER- as stated herein.
5. ICRMA'S-LIABILITY: LESS MEMBER'S RETAINED LIMIT, AS ULTIMATE NET
- $10,000,000 LOSS as the result of any one OCCURRENCE because
of BODILY INJURY or PROPERTY DAMAGE or
PERSONALINJURYorPUSLIGOFFICIALS' ERRORS AND
OMISSIONS, or any combination thereof, during. the
• MEMORANDUM PERIOD.
6. MEMBER'S RETAINED LIMIT: ULTIMATE NET LOSS as the -result of any one'
$1,000,000 ~ OCCURENCE because of BODILY INJURY or PROPERTY.
_ DAMAGE or PERSONAL INJURY or PUBLIC OFFICIALS'
ERRORS AND OMISSIONS, or any combination thereof,
during the MEMORANDUM PERIOD.
7. CLAIMS ADJUSTING FIRM: Colen & Lee
1:930 South Brea Canyon Road, Suite 100
Diamond Bar, California 91765
8. ANNUAL DEPOSIT PREMIUM: $155,070
9. Endorsements attached to AGREEMENT at inception:
Countersigned by
Authorized. Representative
This Declarations and Coverage Part(s), with .Standard Provisions. and Endorsements, if any, issued to form
a part hereof, .completes: the above-numbered AGREEMENT.
INDEPENDENT CITIES-RISK MANAGEMENT AUTHORITY
14156 Magnolia Boulevard, Suite 103,
Sherman Oaks, CA 91423 (818) 981-7076
Note: Effective upon completion of admission process.
MASTER MEMORANDUM OF LIABILITY COVERAGE
FOR THE
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
Throughout this AGREEMENT, words and phrases that appear capitalized have special
meanings. They are defined in Section II -Definitions.
In consideration of the payment of the .premium,. the. Independent Cities Risk Management.
Authority (ICRMA) agrees with the MEMBER as follows:
SECTION 1 -COVERAGES
The ICRMA will pay those sums on behalf of the MEMBER for ULTIMATE: NET LOSS in excess
of the Retained Limit stated in Item 6. of the Declarations haYthe MEMBER becomes legally
obligated to pay as damages by reason of liability imposed by law or liability assumed by
contract because of:
A. BODILY INJURY or PROPERTY DAMAGE; and/or
B. PERSONAL INJURY; and/or
C. PU8L1C OFFICIALS' ERRORS AND OMISSIONS
as those terms are .herein defined and to ,which this AGflEEMENT applies. Included in ICRMA's
obligation to pay are DEFENSE COSTS falling within the definition of COVERED ULTIMATE
NET LOSS.
SECTION II -.DEFINITIONS
A. AGREEMENT -.means the Master Memorandum of Liability Coverage for the ICRMA.:
B. AIRCRAFT - means a vehicle designed for the transport of persons or property
principally in the air..
C. AUTOMOBILE -means aself-propelled land motor vehicle and/or a trailer or semi-trailer
designed for travel on public roads and subject to motor vehicle registration.
D. BODILY INJURY. -means bodily injury, sickness or disease sustained by a person,
including death resulting from any. of these at any time. -
E. CLAIM - means a demand, action, or suit against any entity or person covered herein to
recover for bsses or damages within or alleged. to be within the scope of coverageset
forth in this AGREEMENT.
F: COVERED INDIVIDUALS -means persons who are past or present elected.. or
appointed. officials, employees. or <volunteers of -the MEMBER, whether or not
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compensated, while acting for or on behalf of the MEMBER, including while acting on
outside committees, commissions or boards at the direction of the MEMBER.
G. COVERED ULTIMATE NET LOSS -means, .with respect to coverage afforded by this
AGREEMENT, an amount by which ULTIMATE NET LOSS not covered by other
available insurance or self-insurance exceeds the Retained Limit stated in-Item 6. of the
Declarations, such amount not, in any event, however, to exceed. the limit of liability •
stated in Item 5. of the Declarations. '
H. DEFENSE COSTS -means fees and expenses incurred by ICRMA or the MEMBER - -
caused by and relating to the. adjustment, investigation, defense or appeal of a claim
including attorney's fees, court costs and interest on judgments accruing after entry of
judgment, all-within the scope of coverage afforded by this AGREEMENT. DEFENSE
COSTS shall not include the office ..expense of .the .ICRMA or the MEMBER nor
expenses of a claims administrator engaged by the MEMBER or the: ICRMA.
L INVERSE CONDEMNATION -means a claim. by anyone, other than the MEMBER,
alleging that the MEMBER has taken or diminished the value. of land through land use
restrictions on uch .land or use of adjacent land or air space by the MEMBER or
otherwise.
J. MEMBER -means the entity named in Item 1. of the Declarations, including any and all
commissions, agencies, districts, authorities, councils (including the governing councils)
or similar entities coming under the MEMBER'S direction or control or for which the.
MEMBER'S council members sit as the governing body.
K. MEMORANptJtvl PERIOD -means the period stated in Item 4. of the Declarations.
L MOBILE EQUIPMENT -means any of the following types of land vehicles, including
any attached machinery or equipment:
1. Bulldozers, forklifts -and .other vehicles designed principally for use. off publ"~ roads;
2 Vehicles that travel on crawler treads;
3. Vehicles, whether self propelled or not, maintained primarily to provide mobility to
permanently mounted equipment of the following types: power cranes, shovels,
baders, di99ers, drills, graders, scrapers, rollers;
4. Vehicles not self-propelled, maintained to provide mobility to permanently attached.
equipment of the following ;types: air compressors, pumps and generators for
spraying, welding, building cleaning, geophysical exploration, lighting and well
servicing, and equipment to raise and lower workers. -
M. NUCLEAR MATERIAL -means Source Material, Special. Nuclear Material, or 8yproduci
Material Source-Material, Special Nuclear Material. and Byproduct Material have the
meanings given to them by the Atomic Energy Act of 1954 and any law amendatory
thereto. - -
N. OCCURRENCE.-means:
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1. With respect to BODILY INJURY or PROPERTY DAMAGE, an accident or event,
including injurious or repeated exposure to substantially the same conditions, which
resutts, during the AGREEMENT PERIOD, in BODILY INJURY or PROPERTY.
DAMAGE neither expected .nor intended from the standpoint of the MEMBER.
'OCCURRENCE" shall apply separately to the ICRMA and to each MEMBER of-thee
ICRMA named in the AGREEMENT.
2 With respect to PERSONAL INJURY and. PUBLIC OFFICIALS'. ERRORS &
OMISSIONS, an .offense committed during the MEMORANDUM PERIOD, as
.described in the definition of those terms in this section.
O. PERSONAL INJURY -means injury caused by or arising out of one or more of the
following offenses:
1. False arrest, detention or imprisonment, or malicious prosecution;
2 Wrongful entry or eviction or other invasion of the right of private occupancy;
3. .Publication or utterance of material that slanders or libels a person or organization
or disparages a person's or organization's. goods, products flr services, or oral or
written publication of material that violates a person's right of privacy;
4. Discrimination based upon race, religion, .nationality, national origin, .color, creed,.
sex, sexual. preference, handicap, age or employment;
5. Assault-andbattery...
P. POLLUTANTS -means any solid, liquid,. gaseous, or thermal irritant or contaminant,.
including smoke,. vapor, soot, fumes, acids, alkalis, chemicals, and waste.- Waste
includes materials to be recycled, reconditioned or reclaimed. The term POLLUTANTS.
as used herein is not defined to mean potable water or agricultural water or water
iumished to commercialusers or water used for fire suppression.
O. PROPERTY DAMAGE -means:
1. -Physical :injury to tangible property, including all resulting loss: of use to that
property; or
2 Loss of use'of tangible-property-that is not physically injured.
R PUBLIC OFFICIALS' ERRORS AND OMISSIONS -means an offense consisting of :any.'.
actual or alleged. misstatement or misleading statement or actor omission or neglect or
breach-of duty .including misfeasance, malteasance, or nonfeasance by COVERED
INDIVIDUALS, individually or collectively, in the discharge of their duties for and/or on
behalf of the MEMBER, of any matter claimed against them solely. by reason of their
being or having been public officials.
S. ULTIMATE NET LOSS -means the sums for which the MEMBER is liable eRher by
adjudication or by -compromise .after making proper deduction for all recoveries and
salvages, and .also includes DEFENSE COSTS.
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SECTION III -DEFENSE AND SETTLEMENT
The ICRMA shall have the right and duty to participate in the defense of any suit against a
MEMBER where such suit is likely to involve a COVERED .ULTIMATE NET LOSS. even if any
allegations are groundless, false or fraudulent. After the amount of the MEMBER'S Retained Limit
has been exhausted by payment of judgments, settlements and defense costs, the ICRMA will
pay any. excess within its limits of liability.
The ICRMA .shall, at its own expense, have the right to participate in the investigation,
negotiation, or settlement of any CLAIM or suit against any entities or persons covered when, in
the opinion of the ICRMA, such CLAIM may result in a COVERED ULTIMATE NET-LOSS. The
MEMBER and COVERED INDIVIDUALS shall fully cooperate. in all matters pertaining to such
claim or proceeding.
-The ICRMA shall not be obligated to pay any claim'or judgement onto defend any suit-after the
applicable limit of the ICRMA's Liability.. has been exhausted by payment of judgments or
settlements or after such limit of the ICRMA's Liability has bean tendered for settlements.
No CLAIM shall be settled for an amount in excess of the MEMBER'S Retained Limit without the
priorwritten consent of the ICRMA.
.SECTION IV - MEMBER'S RETAINED LIMIT AND ICRMA'S LIMIT OF LIABILITY
The ICRMA's Liability as the result of anyone OCCURRENCE shall be only the ULTIMATE NET
LOSS in excess of the MEMBER'S Retained Limit as specified in ftem 6. of the Declarations;' and
then for an amount not exceeding the amount specirfied inltem 5. of the Declarations.
For the purpose of determining the ICRMA's limit of liability and the MEMBER'S Retained Limit, all.
damages arising out of continuous or repeated exposure to substantially the same general
conditions shall be considered as arising out of one OCCURRENCE.
SECTION V -COVERAGE PERIOD AND TERRITORY
Each entity or person covered shall have coverage -for BODILY INJURY, PROPERTY DAMAGE,
PERSONAL INJURY and PUBLIC OFFICIALS''ERRORS AND OMISSIONS which occur
anywhere in the world during the MEMORANDUM PERIOD..
SECTION VI -ENTITIES OR PERSONS COVERED
This AGREEMENT covers:
A The MEMBER;.
B. COVERED INDIVIDUALS; -
C. Witfi .respect to any. AUTOMOBILE or MOBILE EQUIPMENT usage, 'meaning driving,
operating, manipulating, riding in and any other use, this AGREEMENT does not cover:
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1. Any person or organization, or any agent or employee thereof, operating an
AUTOMOBILE sales agency, commercial repair shop, commercial service station,.
commercial storage garage or commercial public parking place, with respect town
OCCURRENCE arising out of the operation thereof. This exception does not apply
to parking garages or lots owned, operated or leased by the MEMBER; or
2 The owner or any lessee, other than the MEMBER or COVERED INDlV1DUAL_, of a
hired AUTOMOBILE, or any agent or employee of such owner or lease. "
SECTION VII -EXCLUSIONS
A. This AGREEMENT does not apply ta'
1. a Any claim arising out of contamination or alleged contamination of any
environment by POLLUTANTS introduced of any time, anywhere,. in any way, _
including, but not limited to, into or upon land, the atmosphere or any
watercourse or body of water or aquifer. This exclusion applies whether or not
the contamination is introduced -into the; environment .intentionally or
accidentally or gradually or suddenly and whether or not the MEMBER or any
other person or.organization is responsible for the contamination..
b. Any obligation to defend any: suit or-.CLAIM. against the MEMBER and/or
COVERED INDIVIDUALS alleging BODILY INJURY, or PROPERTY
DAMAGE, or PERSONAL INJURY or PUBLIC OFFICIALS' ERRORS AND
OMISSIONS and seeking' damages, 'rf such suit or claim arises from BODILY
INJURY, or PROPERTY. DAMAGE, or PERSONAL. 1NJURY or PUBLIC
OFFICIALS' ERRORS AND .OMISSIONS arising out of the contamination or
alleged contamination of any environment by POLLUTANTS introduced at any.
time, anywhere, in any way, including, but not limited to, into or upon land, the
atmosphere or any watercourseor body of water oraqu'rfer.
c. Any loss, cost, defense or expense. arising out of'any governmentaldirections
or requesf that the MEMBER test for, monitor, clean up, remove, remedy,
contain, treat, detoxify or neutralize POLLUTANTS.
d. Any loss, cost or expense incun•ed by a governmental unit or other third party,
including, but not limited to, the cost of investigation and monitoring, and
attorneys' tees relating to activities in connection with .efforts to test for,
monitor, clean up, remove, remedy, contain, trace, detoxify or neutralize
POLLUTANTS.
This exclusion does not apply, however, to BODILY INJURY or PROPERTY
DAMAGE caused by heat, smoke or fumes from a hostile tire. As used in this'.. "
exclusion, a hostile fire means one which becomes uncontrollable or breaks out
where it was not intended to be.
Contamination includes any unclean, 'unsafe, damaging, injurious or unhealthful
condition, either. actual or potential,- which arises out of thee. presence in the ,
environment of any. POLLUTANT, whether permanent. or transient.
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Environment includes any person, any man-made object or feature, animals, crops
and vegetables, land, bodies of water, underground water, or water table or aquifer,
air and any other natural feature of the earth and its atmosphere, whether or not
altered, developed or cultivated.
ft is .the intent and effect of this exclusion to exclude any and/or all coverages
afforded by this AGREEMENT for any claim, action, judgment, liability, settlement,
defense or expenses, -if any, arising out of the discharge, dispersal, release or -
escape of POLLUTANTS whether such results from the MEMBER's and/or
COVERED INDIVIDUAL's activities or the activities of others and whether or not
such is sudden, gradual, accidental, intended, foreseeable, expected, fortuitous,
inevitable and wherever or however such occurs;
2 Any- liability :arising out of the hazardous properties of NUCLEAR MATERIAL
3. Any claim for past salary. or wages due because of discrimination or wrongful -
ermination or violation of the civil rights of any employee or .official of the
MEMBER;
4. BOOILY INJURY to:
a. An employee. of the MEMBER. arising out of and in the course of his/her
employment by the MEMBER; or
b, The spouse, child, parent, brother or sister of that employee as a consequence.
of actions of the employee arising out of and in the course of his/her
empbymentbythe MEMBER.
°fhis exclusion applies whether the MEMBER may be liable as an employer or in any ,
other capacity, except with. respect to liability of others assumed under contract;
5. Any obligation for which the-MEMBER or any insurance company as its insurer may
be held liable-under any workers' compensation or disability benefits law or any
similar law;
li. .Liability arising out of the ownership or operation of any airport;
7. Liability arising out of or in connection .with-the operation of any hospital, ,clinic, or
established health care facility owned or'operated by the MEMBER due to;
a The rendering of or failure. to render.
L Medical, surgical, dental, X-ray oC nursing service or treatment, or the- -
furnishing of .food or beverages in ~nnection therewith;
2 Any service or treatment conducive to health or of a professional nature or,
3. 'Any cosmetic or tonsorial. service or treatment.
b. The furnishing and/or dispensing of drugs or medical, dental, or surgical -
supplies or appliances.
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This exclusion shall not apply, however, to liability arising out of the performance of
occupational physical examinations, .paramedic services, emergency care, or T.B.
(tubercubsis) testing clinics;
8. Liability arising out of the rupture, bursting, overflow, seepage or release of water
from any dam;
9. Fines, punitive damages, or damage multiples such as double or treble damages
awardable pursuant to statute, or other applicable law;
10. PROPERTY DAMAGE to:
a Property owned by the MEMBER, or
b. Property. rented to or leased to the MEMBER where the. MEMBER has assumed
liability .for damage to or destruction of such property, unless the MEMBER
.would have been liable in the absence of such assumption of .liability;
c. AIRCRAFT or watercraft in the MEMBER's care, custody or control;
11. Any liability arising .out of the ownership, operation, use or maintenance of any
AIRCRAFT;
12. Any liability arising -out of the operation of any transit authority, transit system, or
public transportation system owned or operated by the MEMBER, except -.any
transit system operating over non-fixed route- systems such as "dial-a-ride," senior
citizen transportation, or handicapped transportation;
13. Any liability arising out of the failure to supply or provide an adequate supply: of
gas,-water or electricity when such `failure 'is a result of .the inadequacy of the
MEMBER's facilities to supply or produce sufficient gas,. waterer electricity to meet:
demand;
14. Any liability arising out of or in connection with the principles of eminent domain, -
condemnation proceedings or INVERSE CONDEMNATION, by whatever name
called, and whether or not liability accrues directly. against the MEMBER, or by
virtue of any agreement entered into by or on behalf of the MEMBER.
This exclusion shall not apply to PROPERTY. DAMAGE' caused by the. negligence
or other faun of the MEMBER even though a legal theory upon which a claimant
seeks; recovery is the principle of INVERSE CONDEMNATION;
15. As respects liability assumed by the MEMBER under' any contract, any claim,
judgement or agreement from-any arbitration proceeding wherein the ICRMA is not
entitled to exercise with- the :MEMBER the MEMBER'S rights in the choice of
arbitrators, and in the conduct of such proceedings;
16. Any liability due to war, whether or not declared, civil war, or .revolution or to any
act or condition incident. to the foregoing.
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B. This AGREEMENT does notapply under Coverage C to:
1. BODILY INJURY;
2 PROPERTY DAMAGE;
3. PERSONAL INJURY;
4. Benefits. payable under any employee benefit -plan (whether the plan is voluntarily
established by the MEMBER. or mandated 6y statute) because of unlawful
discrimination;
5. Refund of taxes, fees or assessments;
6. Liability of a COVERED INDIVIDUAL:
a arising in whole or in part out: of a COVERED INDIVIDUAL'S obtaining
remuneration or financial gain to which the,COVERED INDIVIDUAL was not
legally entitled or,
b. arising out of-the willful .violation of penal code or ordinance committed by or
with the knowledge or consent of any MEMBER;
7. To any liability arising. out of estimates of probable costs or cost.:estimates being
exceeded or faulty preparation of bid specifications or plans, including architectural
plans;
8. Failure to perform, or breach of, a contractual obligation;
9. Liability imposed under-the Employee Retirement Income Security Act of 1974, and
any law amendatory thereto;
10. Liability imposed under the Consolidated Omnibus .Budget Reconciliation .Act of
1985 (COBRA), and any law amendatory thereto.
SECTION VIII -CONDITIONS.
A. PREMIUM AND AUDIT
The premium designated in the Declarations as "Deposit Premium".means, with respect
to each MEMBER, the sum of the amounts paid by each MEMBER as Administrative
Premium, Basic Premium, Risk Premium, Supplemental Basic Premium and Supplemental
Risk Premium all due on the Basic Premium .Payment Date established in the Liability -
flisk Coverage Agreement. .
The 1CRMA may examine the MEMBER'S books and records at any reasonable time
during the MEMORANDUM PERIOD -and extensions thereof after the final termination of
.this AGREEMENT, as tar as 3hey relate to the subject matter of this AGREEMENT. '
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B. INSPECTIONS
The ICRMA shall. be permitted but not obligated to inspect the MEMBER's .property and
operations at any reasonable time. .Neither such right to make inspections nor the
making thereof, nor any report thereon, shall constitute an undertaking, on behalf of or
for the benefit of the MEMBER or others, to determine or warrant that such property or
operations are safe.
C. DUTIES IN THE EVENT OF AN OCCURRENCE
The MEMBER's duty in She event of an OCCURRENCE, CLAIM or suit:
1. In the -event of an OCCURRENCE -reasonably likely to involve a .COVERED
ULTIMATE NET LOSS, written notice containing particulars'sufficient to idenfrfy
the MEMBER and also reasonably obtainable information with. respect to the time,
place. and- circumstances thereof, and the names and addresses of the injured
party(ies) and of available witnesses, shall be given by or for. the MEMBER to the
ICRMA or any of its authorized agents as soon as practicable.
2 If a CLAIM is made or suit brought against the MEMBER. or COVERED
.INDIVIDUAL, the MEMBER or COVERED INDIVIDUAL shall be obligated. upon
demand to forward to the ICRMA every demand,.notice, summons orother,process
received by the MEMBER or COVERED INDIVIDUAL or the MEMBER. or
COVERED INDIVIDUAL's representative.
3. Thee MEMBER shall cooperate fully with the ICRMA and upon its request assist in
enforcing any right of contribution or indemnity against any person or-organization
who may be liable to the MEMBER because of an OCCURRENCE with respect to
which coverage is afforded under this AGREEMENT; and the MEMBER shall attend
hearings and trials and assist in securing and .giving evidence and obtaining the
..attendance of witnesses: The MEMBER shall-not, except at its own cost,
voluntarily make any payments, assume any obligation or incur any expense which
is likely to .result in an ULTIMATE NET LOSS that exceeds the Retained Limit
stated in Item 6. of the Declarations. In the event. that the' amount of-ULTIMATE-
NET LOSS becomes certain eithef through final court judgement or :agreement
among the MEMBER, the claimant andthe ICRMA, then the ICRMA shall pay on
behalf of the MEMBER the COVERED ULTIMATE NET LOSS. `
D, BANKRUPTCY AND INSOLVENCY
Bankruptcy or insolvency of the MEMBER shall not relieve the ICRMA of any of its
obligations hereunder. -
E OTHER.INSURANCE-
H collectible insurance. or other coverages with any joint powers authority or other self-
funding mechanism is available to the MEMBER or COVERED INDIVIDUAL, coverage
for. a bss also covered hereunder (whether on a primary, excess or contingent basis),,
.shall be in excess of,-and shall not contribute ,with, such other insurance, provided that
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this clause does not apply with respect to excess insurance purchased specifically to
be in excess of the coverage afforded by this AGREEMENT.
F. DURATION OF AN OCCURRENCE
An OCCURRENCE with a duration in more than one MEMORANDUM PERIOD shall be
treated as a single OCCURRENCE arising. during the MEMORANDUM PERIOD when
the OCCURRENCE began.
G. ENDORSEMENTS TO THE AGREEMENT
Notice to any agent. or knowledge possessed by any agent or by any other person shall
not effect a waiver or change in any part of -this AGREEMENT or stop the ICRMA from
asserting .any .right"under the terms. of this AGREEMENT, nor shall the terms of this
AGREEMENT. be waived. or changed, except by endorsement issued to form a -part of _
thin AGREEMENT.
H. ACTION AGAINST'THE AUTHORITY
No action shall lie against the ICRMA with respect to the coverages and related
provisions defined in this AGREEMENT unless, as a condition precedent thereto, there.
shall have been full compliance. with all theterms of this AGREEMENT, nor until the _
amount of the MEMBER's`obligations to pay shall have been finally determined either by
.judgement against the MEMBER after actual trial. or by written agreement of the.
MEMBER, the claimant and the ICRMA. Any person or organization or the
representative thereof who has secured such judgement or written agreement shall
thereafter by entitled. to recovery under this AGREEMENT to the extent of the. coverage
afforded. by this AGREEMENT. No person or entity shall have any right under this
AGREEMENT to join the ICRMA as a ..party : to any action against a MEMBER to
determine the MEMBER's liability, nor shall the ICRMA be impeded. by the MEMBER or
its legal representative.
L SUBROGATION
The ICRMA shall be subrogated to the .extent of any. payment hereunder to the
MEMBER's and/or-the COVERED INDIVIDUAL'S rights of recovery thereof, and the
MEMBER and/or the COVERED INDIVIDUAL shall do%nothing after loss to prejudice
suchright and shall do everything ,necessary to secure such right. Any amount so
recovered shall be apportioned as folbws:
t. The expenses of all such recovery proceedings shall. be paid before any
reimbursements -are .made. If there is no recovery in the. proceedings conducted. by _
the ICRMA, the ICRMA shall,bearthe expenses thereof.
2 The highest layer of coverage shall be reimbursed first and, if there be sufficient
recoveries, then the next highest layer, until all recoveries. are used up.
J. ASSIGNMENT OF INTEREST
Assignment of interest under this AGREEMENT shall not bind the ICRMA unless and
until its consent is endorsed hereon.
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K. CROSS LIABILITY
In the event of ULTIMATE NET LOSS to one or more MEMBERS or COVERED
INDIVIDUALS for which another .MEMBER or COVERED- INDIVIDUAL is or may be
held liable, then this AGREEMENT. shall cover such MEMBER or COVERED °
INDIVIDUAL against whom such CLAIM is-made or may be made, the same as if
separate .AGREEMENTS had -been issued to each MEMBER oc COVERED
INDIVIDUALS,- except that the limits of liability for all such MEMBERS or COVERED
INDIVIDUALS shall not exceed the limits of liability set forth in the Declarations.
L CANCELLATION
Thin AGREEMENT may, with respect to any: MEMBER, be .cancelled by, the ICRMA "
either for the then-current AGREEMENT PERIOD or, in the .event of .expulsion,
permanently upon. the occurrence of the events and under terms set forth in Section
10.2 0# the Liability Risk Coverage Agreement.
M. SURPLUS .DISTRIBUTION
Any surplus accrued by the ICRMA may be distributed to the MEMBERS in accordance
with the terms and .conditions of the Liability Risk Coverage Agreement.
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EXHIBIT D-1 t"
ICRMA: NEW AND OLD ALLOCABLE SHARES
ORIGINAL JULY 1,1987 JULY 1,1990
SHARE SHARE SHARE
ALHAMBRA 6.64X 6.29% 5.71%
ARCAOIA 3,09% 2.93% 2.66%
AZLISA 3.72% 3.52% 3.19X
BALDWIN PARK. 4.40% 4.17% 3.78X
BELL 3.10% 2.93% 2.66%
COLTON 2.29% 2.08%
COSTA. MESA .4.00%
CULVER CITY 5.08% 4.81% 4.37%
DOWNEY 3.29% 3.11X 2.82%
EL MONTE 6.81% 6.45X 5.85%
EL SEGUNDO - 3.1$%
GLENDORA 4.25X 4.02% 3.65%
HAWTHORNE 7.37% 6.98% 6.33%
HERMOSA BEACH 3.55% 3.36X 3.05%
HUNTINGTON PARK 3.44% 3.26% 2.96%
INDIO 2.96% 2.80% 2.54% .
INGLEWOOD 2.65% - 2.51% -2.28%
LYNWOOD 2.75% 2.60% 2.36%
MANHATTAN BEACH 3.41% 3.23X 2.93%
MONROVIA 3.04% 2.76%
MONTEREY PARK 4..60% 4.35% 3.95X
REDONDO`BEACH 7.57% 7.17% 6.51X
SAN FERNANDO 2.51% 2.38% 2.16X
'SOUTH GATE 5.10X 4.83% 4.38X
UPLAND 2.06X
VERNON 2.89X 2.74X 2.49X
WEST COVINA' 7.12% 6.74X. 6.12X ,
WHITTIER 3.70X 3.49X 3.17X
100.00% 100.OOX 100.OOX