Resolution No. 8921
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RESOLUTION NO. 8921
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON DECLARING ITS INTENT TO WITHDRAW FROM THE
ICRMA AND FORM A JOINT POWERS AUTHORITY WITH THE
CITY OF BELL, AUTHORIZING AND APPROVING CERTAIN
DOCUMENTS IN CONNECTION WITH THE CREATION AND
IMPLEMENTATION OF THE AUTHORITY AND AUTHORIZING
CERTAIN OTHER MATTERS RELATING THERETO
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8 WHEREAS, the City of Vernon is a municipality duly organized
9 and existing under the Constitution and laws of the State of California
10 and under the Charter of the City; and
11 WHEREAS, on April 21, 2004, the City Council of the City of
12 Vernon adopted Resolution No. 8437 approving and ratifying the City's
13 withdrawal from the Independent Cities Risk Management Authority
14 ("ICRMA") Liability Pool and Property Insurance Program; and
15 WHEREAS, the City of Vernon currently handles its risk
16 management for workers' compensation insurance claims through the
17 ICRMA; and
18 WHEREAS, the City of Vernon desires to form a strategic
19 partnership with the City of Bell to capitalize on the proximity of
20 the two cities and mutual goals in the development and service of the
21 respective communities; and
22 WHEREAS, on November 16, 2005, the City Council of the City
23 of Vernon adopted Resolution No. 8910 authorizing the City Attorney
24 and the Acting Risk Manager to take all steps necessary regarding the
25 implementation of a joint powers arrangement with the City of Bell;
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27 WHEREAS, effective July 1, 2006, the City of Vernon will
28 begin the new fiscal year for the ICRMA; and
1 WH~REAS, the City of Vernon is required to give written
2 notice of its intent to withdraw from the ICRMA and its Workers'
3 Compensation Program on or before December 31, 2005; and
4 WHEREAS, the Cities of Bell and Vernon both have exemplary
5 claims loss histories which exceed the claims loss histories of other
6 members of the ICRMA and the ICRMA as a whole; and
7 WHEREAS, the long-term administrative costs of claims
8 handling for the Cities of Bell and Vernon would be reduced by
9 withdrawing from the ICRMA and becoming a member in a different joints
10 powers authority; and
11 WHEREAS, the Cities of Bell and Vernon have agreed to form a
12 new Joint Powers Authority entitled "Pacific Coast Joint Powers
13 Authority" for the purpose of jointly participating in the Authority,
14 creating Risk Management Programs for the Authority, seeking new
15 members for the Authority, and soundly investing the funds of the
16 Authority for the benefit of its members; and
17 WHEREAS, pursuant to the California Joint Exercise of Powers
18 Act, consisting of Sections 6500 through 6599.2 of the Government Code
19 of the State of California (the "Joint Powers Act"), two or more
20 public agencies may enter into an agreement to establish an agency to
21 exercise any power common to the contracting agencies; and
22 WHEREAS, the City Council of the City of Vernon does not by
23 this resolution relinquish any of its duly constituted powers to
24 regulate and govern its own territory; and
25 WHEREAS, a form of the Pacific Coast Joint Powers Authority
26 Joint Exercise of Powers Agreement for Insurance and Risk Management
27 Purposes has been filed with the Acting City Clerk of the City and the
28 members of this City Council, with the assistance of City staff, have
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1 reviewed said form of the Agreement.
2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
3 CITY OF VERNON AS FOLLOWS:
4 SECTION 1: The City Council of the City of Vernon hereby
5 finds and determines that the recitals contained hereinabove are true
6 and correct.
7 SECTION 2: The City Council of the City of Vernon hereby
8 authorizes the Acting Risk Manager to give notice to the ICRMA on or
9 before December 31, 2005, of the City of Vernon's intent to withdraw
10 from the ICRMA and its Workers' Compensation Program for the fiscal
11 year beginning on July 1, 2006.
12 SECTION 3: The City Council of the City of Vernon hereby
13 approves the Joint Exercise of Powers Agreement, in substantially the
14 form on file with the Acting City Clerk. Each of the Mayor and the
15 Mayor Pro Tern, acting singly, is hereby authorized and directed to
16 execute and deliver the Agreement with such changes, insertions and
17 omissions as may be approved by the official executing the Agreement,
18 and the Acting City Clerk is hereby authorized and directed to attest
19 thereto.
20 SECTION 4: The members of this City Council, the Acting
21 City Clerk, the City Attorney, the Acting Risk Manager and any other
22 proper officers and officials of the City are hereby authorized and
23 directed to execute and deliver such other agreements, documents and
24 certificates, and to perform such other acts and deeds, as may be
25 necessary or convenient to effect the purposes of this Resolution and
26 the transactions herein authorized.
27 SECTION 5: On or before June 1, 2006, the Cities of Bell
28 and Vernon shall cause to exist a Joint Powers Authority for the
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1 purposes of pooling funds to cover general liability and workers'
2 compensation injury claims. The Cities of Bell and Vernon shall
3 establish Risk Management Programs to cover general liability and
4 workers' compensation injury claims, such programs utilizing excess
5 insurance, reinsurance, or excess insurance pools to cover claims
6 exceeding the pooling amounts set forth in the Risk Management
7 Programs.
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SECTION 6:
The Joint Powers Authority shall be for the
9 purpose of establishing risk sharing and insurance pools in which
10 members of the authority may participate. Concomitant with this
11 purpose is the sound fiduciary management of administrative and
12 reserve funds, and the establishment of programs designed to reduce
13 the liability of members for injury claims.
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SECTION 7:
Unless otherwise barred by the California
15 Secretary of State, the Joint Powers Authority shall be called the
16 "Pacific Coast Joint Powers Authority."
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SECTION 8:
The Acting City Clerk of the City of Vernon
18 shall certify to the passage of this resolution, and thereupon and
19 thereafter the same shall be in full force and effect.
20 APPROVED AND ADOPTED this 7th day of December, 2005.
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~7u:~~~~'-7.--?
./" LEONIS C. MALB G, Mayor
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ATTEST:
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BRUCE V. MALKENHORST, JR.
Acting City Clerk
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1 STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8921, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, December 7, 2005, and thereafter was duly signed by the
Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, JR.
Acting City Clerk
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(SEAL)
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SUPPORTING
DOCUMENTS
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PACIFIC COAST JOINT POWERS AUTHORITY
JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
This Joint Exercise Of Powers Agreement For Insurance and Risk Management
Purposes ("Agreement"), dated July 1, 2006, is executed by and among the public
entities, hereafter referred to as Member or Members, each of which is organized and
existing under the laws of the State of California and is a signatory to this Agreement
and listed in Appendix" A", which is attached hereto and made a part hereof.
RECITALS
This Agreement is predicated upon the following facts:
The following State laws, among others, authorize the Members to enter into
this Agreement:
1. Labor Code Section 3700, permitting a Member to fund its own Workers'
Compensation claims;
2. Government Code Section 990, permitting a Member to insure itself
against tort or inverse condemnation liability;
3. Government Code Section 990.4, permitting a Member to provide
insurance and self-insurance in any desired combination;
4. Government Code Section 990.6, permitting the proper costs for self-
insurance to be charged against each Member and authorizing the Governing Board to
make premium payments for such coverage in an amount such Governing Board
determines to be necessary to provide such coverage;
5. Government Code Section 990.8, permitting two or more Members to
enter into an agreement to jointly fund such expenditures under the authority of
Government Code Sections 6500 et seq.;
6. Government Code Section 6500 et seq., permitting two or more Members
to jointly exercise, under an agreement, any power which is common to each of them.
NOW, THEREFORE, for and in consideration of the mutual benefits, covenants,
and agreements set forth in this Agreement, the Members agree as follows:
ARTICLE 1. CREATION OF THE JOINT POWERS AUTHORITY
1 .1 Pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division
7 of Title 1 of the Government Code of the State of California, the Members
hereby create a public entity, separate and apart from the Members, to be
known as the Pacific Coast Joint Powers Authority, hereinafter referred to as
"PCJPA" or the "Authority". Pursuant to Government Code Section 6508.1,
the debts, liabilities, and obligations of the Authority shall not constitute debts,
liabilities, or obligations of any Member.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
ARTICLE 2. PURPOSE
2.1 The purpose of creating this Authority is to exercise the powers of the Members
to jointly accomplish the following:
2.1.1
2.1.2
2.1.3
2.1.4
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Develop effective Risk Management Programs to reduce the
amount and frequency of their losses.
Develop Risk Management Programs of insurance to protect
Members from the effects of catastrophic or unexpected
losses. Such programs shall include, but not be limited to,
coverages for losses arising out of Tort Liability, Workers'
Compensation, Health Benefits, and the ownership or use of
real or personal property.
Operate and maintain a cooperative program of self-insurance,
jointly purchased insurance and risk management, and provide a
forum for the discussion, study, development, and implementation
of procedures of mutual benefit in risk sharing and risk
management programs, where such programs are implemented to
fully or partially share risk among members.
Jointly purchase insurance, excess insurance, or
reinsurance and/or develop alternative financial
arrangements for the purpose of transferring risk of loss to
commercial insurers.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
2.1.5
2.1.6
Assist Members to the maximum extent authorized by law to
secure long term solutions enabling the Authority to provide
adequate protection to Members against catastrophic, or
greater than expected, claims and to attract major reinsurers
for the purpose of transferring risk.
Jointly secure administrative and other services including,
but not limited to, general administration, underwriting, risk
management, loss prevention, claims adjusting, data
processing, brokerage, accounting, and legal services when
related to any of the other purposes.
ARTICLE 3. DEFINITIONS
3.1 The following definitions shall apply to the provisions of this Agreement and the
By-Laws of the Authority and Risk Management Programs:
3.1.1
3.1.2
3.1.3
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"Agreement" shall mean this Agreement, as it may be
amended from time to time, creating the Pacific Coast Joint
Powers Authority.
"Board" or "Governing Board" shall mean the governing body
of the Authority.
"By-Laws" shall mean the rules governing the management
of the Authority and the individual Risk Management
Program(s) established hereunder.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
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"Claim(s)" shall mean demand(s) complying with the
requirements of California Government Code Section 910
and made against the Member arising out of occurrences
which are covered or alleged to be covered by the
Authority's Memorandums of Coverage, Programs of Coverage, or
policies of
Insurance.
"Fiscal Year" shall mean the period of time commencing on
July 1 of each year, and thereafter ending on June 30 each
following year.
"Governing Documents" shall mean this Agreement, the By-
Laws of the Authority and each Risk Management Program,
the Memorandum of Coverage and any other document
stipulated as a Governing Document in the By-Laws or by
action of the Governing Board.
"Charter Member" shall mean the founding Members of the
Authority.
"Insurance" shall mean insurance or reinsurance purchased
by the Authority to cover losses for its Members.
"Member" shall mean any Municipal Corporation or public
entity authorized to be a member of a Joint Powers
Authority, which is a party to this Agreement and IS
participating in one or more Risk Management Programs.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
3.1.10
3.1.11
3.1.12
3.1.13
3.1.14
3.1. 15
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"Memorandum of Coverage" shall mean the document or
documents issued by the Authority specifying the types of
coverages and limits provided to the Members.
"Program Year" shall mean a period of time in which each
program shall be segregated for ease in determining
coverage premiums.
"Participation" or "Participating" shall mean a Member has
elected to jointly participate in the management of a specific
risk and is a member of that Risk Management Program.
"Risk Management" shall mean the process of identifying,
evaluating, reducing, transferring, and eliminating risks. Risk
Management includes, but is not limited to, various methods
of funding claims payments, purchasing insurance, legal
defense of claims, controlling losses, and determining self-
insured retention levels and the amount of reserves for
potential claims.
"Risk Management Program" shall mean those coverage
programs of risk sharing, insurance, and risk management
services created by the Authority to manage specific Risk
Management Programs, i.e. "Liability Risk Management
Program" .
"Authority" or "PCJPA" shall mean the Pacific Coast Joint Powers
Authority.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
ARTICLE 4. PARTIES TO THE AGREEMENT AND RESPONSIBILITIES OF MEMBERS
4.1 Each Member represents and warrants that it intends to, and does hereby,
contract with all other Members listed in Appendix" A", and any new Members
admitted to the Authority pursuant to Article 16. Each Member also represents
and warrants that the withdrawal or expulsion of any Member, pursuant to
Article 14 or 15, shall not relieve any Member of its rights, obligations, liabilities
or duties under this Agreement or the individual Risk Management Programs in
which the Member participates.
4.2 Each Member agrees to be bound by and to comply with all of the terms and
conditions of the Governing Documents and any Resolution or other action
adopted by the Governing Board as they now exist or may hereinafter be
adopted or amended. Each Member assumes the obligations and responsibilities
set forth in the Governing Documents.
ARTICLE 5. GOVERNING BOARD
5.1 The Authority shall be governed by a Governing Board the composition of which
shall be set forth in the Authority's By-Laws. Immediately upon admission of a
new Member pursuant to Article 16, the Member shall be entitled to appoint a
Representative to the Governing Board and an alternate Representative and, if
desired, a substitute alternate Representative, each of whom shall meet the
parameters set forth in the Authority's By-Laws. Decisions of the Member
representative, or the Governing Board in his/her absence, shall be binding on
the Member. Each Member representative, or their alternate, shall have one
vote on the Governing Board.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
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5.2 The Member Representative and/or alternate Representative or substitute
alternate Representative shall be removed from the Governing Board upon the
occurrence of anyone of the following events: (1) the expulsion or withdrawal
of the Member from the Authority; (2) the death or resignation of the Member
Representative; (3) the Authority receives the written notice from the Member
that the Member Representative is no longer a designated representative of the
Member, or as otherwise provided in the Authority's By-Laws.
5.3 Pursuant to Government Code Section 6505.6, the Governing Board shall
designate an officer or employee, 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 Governing Board shall fix the amount of the
fidelity bond to be filed by such public officer(s) and/or employee(s).
5.4 The Governing Board shall have the power to vote, enact or otherwise
determine any matter of the Authority which is not inconsistent with statute or
this Agreement. The Governing Board may delegate matters of day-to-day
operation to the Officers, Member representatives, or other employees of the
Authority or the Member(s).
ARTICLE 6. BOARD MEETINGS AND RECORDS
6.1 Reqular Meetinqs. The Governing Board and all standing committees shall hold.
meetings at the location and time set forth in the By-Laws of the Authority and
each individual Risk Management Program.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
6.2 Ralph M. Brown Act. All meetings of the Governing Board, and appointed
committees, including without limitation, regular, adjourned regular, and special
meetings, shall be called, noticed, held, and conducted in accordance with the
Ralph M. Brown Act (Section 54950 et. seq. of the Government Code).
6.3 Minutes. Minutes of regular, adjourned regular, and special meetings of the
Authority shall be kept under direction of the Secretary. As soon as possible
after each meeting, the Secretary shall forward copies of the minutes to each
Governing Board member.
6.4 Quorum. A majority of the Members of the Governing Board is a quorum for the
transaction of business. However, less than a quorum may adjourn from time to
time. A vote of the majority of a quorum at a meeting is sufficient to take
action.
ARTICLE 7. OFFICERS
7.1 The Governing Board shall elect a President, Vice-President, Treasurer and
Secretary from among its members. The manner of election and term of office
of elected officers and their authority and responsibilities shall be as set forth in
the Authority By-Laws. If any of the officers cease to be a Member's
representative, the resulting vacancy shall be filled as provided in the Authority
By-Laws. The Governing Board may appoint such other officers as it considers
necessary.
7.1.1 Prior to the acceptance of the third Member of the PCJPA, the
Vice President and Treasurer shall not be allowed a vote on the
Governing Board, and the Members shall select someone other
than a voting member to fill these positions.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
7.1.2
7.1.3
Prior to the acceptance of the fourth Member of the PCJPA, the
Vice President shall not be allowed a vote on the Governing Board,
and the Members shall select someone other than a voting member
to fill this position.
In the event that the membership decreases to less than four
Members, the above articles shall be in effect as though the
number of Members never increased above the number of current
Members.
ARTICLE 8. POWERS
8.1 The Authority shall have the powers common to its Members and is authorized,
in its own name, to do all acts necessary and to exercise such common powers
to fulfill the purposes of this Agreement referred to in Article 2 including, but
not limited to, each of the following:
8.1.1
8.1.2
8.1.3
8.1.4
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Finance through the issuance of Bonds or other financial
instruments of indebtedness, self-insurance reserve funds
necessary or convenient for the implementation of this
Agreement.
Incur debts, liabilities, and obligations.
Acquire, hold, or dispose of real and personal property.
Receive contributions and donations of property, funds,
services, and other forms of assistance from any source.
1 0 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
8.1.5
8.1.6
8.1.7
8.1 .8
8.1.9
8.1.10
8.1.11
8.1.12
8.1.13
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Sue and be sued in its own name.
Employ agents and employees.
Acquire, construct, manage, maintain, or operate buildings,
works, or improvements.
Lease real or personal property, including that of a Member.
Receive, collect, and disburse monies.
Invest money in the treasury of the Authority in the same
manner and on the same conditions as local agencies
pursuant to Government Code Section 53601.
Exercise all other powers necessary and proper to carry out
the provisions of this Agreement.
Develop and implement Risk Management Programs.
Jointly purchase for the benefit of Members, insurance,
excess insurance, reinsurance, and enter into agreements
for the benefit of Members, for the purpose of transferring
risk of loss to commercial insurers or reinsurers or other
insurance pools.
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PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
ARTICLE 9. RISK MANAGEMENT PROGRAMS
9.1 The Governing Board shall establish Risk Management Programs as provided in
the Authority's By-Laws.
9.2 No Risk Management Program shall become operational, or possess any
authority, until the proposed Risk Management Program By-Laws have been
approved by the Governing Board. The voting on the approval of By-Laws shall
be restricted to Governing Board Member representatives of the particular Risk
Management Program. Approval of the By-Laws and any amendments thereto
shall be as provided in the By-Laws of the individual Risk Management
Programs. On approval of the By-Laws, the various Risk Management Programs
shall become operational and will have all of the powers specifically delegated
to them by the Governing Board.
ARTICLE 10. BUDGET
10.1 The Governing Board shall adopt an annual budget not later than 30 days prior
to the beginning of each Fiscal Year.
ARTICLE 11. ANNUAL AUDIT AND REVIEW
11 .1 The Governing Board shall cause an annual financial audit of the accounts and
records to be made and filed as provided in the Authority's By-Laws and the
laws of the State.
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ARTICLE 12. ESTABLISHMENT AND ADMINISTRATION OF FUNDS
1 2.1 Funds of the Authority shall be separated for investment and administration
purposes. Each Risk Management Program shall be accounted for separately on
a full accrual basis.
12.2 The Governing Board shall establish the policy for warrants drawn to pay
demands against the Authority.
12.3 The coverage for each Program 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 Management Program.
ARTICLE 13. WITHDRAWAL
13.1 Any Member which enters a Risk Management Program may withdraw from
that Risk Management Program and may at a later time seek to renew
participation in said Program subject to the terms and conditions as set forth in
the By-Laws of that particular Risk Management Program.
13.2 A Member is no longer a party to the Authority or this Agreement upon its
withdrawal from all of the Authority's Risk Management Programs.
13.3 When a Member is deemed to have withdrawn from this Agreement, such
withdrawal shall not be construed as a completion of the purpose of this
Agreement unless such withdrawal occurs in accordance with and appurtenant
to Article 1 5 of this Agreement. The withdrawal of a Member shall be subject
to the terms and conditions of the individual Risk Management Programs that
the Member has participated in, and the eligibility for dividends, assessments,
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1 3 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
and return of premium shall be determined in accordance with the terms of the
Risk Management Program(s).
13.4 In no event shall a Member give notice of a withdrawal less than six (6) months
prior to the beginning of the next fiscal year utilized by the PCJPA.
ARTICLE 14. EXPULSION
14.1 The Governing Board may expel any Member from the Authority and/or from a
Risk Management Program at any time for material breaches of the Governing
Documents. Such expulsion shall be as provided in the By-Laws of the Authority
or each Individual Risk Management Program.
14.2 When a Member is deemed to have been expelled, such expulsion shall not be
construed as a completion of the purpose of this Agreement. The expulsion of
a Member shall be deemed a withdrawal from the individual Risk Management
Programs that the Member has participated in. The eligibility for dividends,
assessments, and return of premium shall be determined in accordance with the
terms of the Risk Management Program(s).
ARTICLE 15. TERMINATION
15.1 This Agreement shall continue until terminated by a majority of the Members
present at any meeting where a quorum exists, provided, however, that this
Agreement and the Authority shall continue to exist for the purposes of
disposing of all claims, the distribution of assets, and any other functions
necessary to conclude the affairs of the Authority.
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1 4 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
15.2 Upon termination of this Agreement, all assets of the Authority shall be
distributed among the Members that have been participants in its Risk
Management Programs, including any of those Members which previously
withdrew or were expelled pursuant to Articles 1 3 and 14 of this Agreement, in
accordance with and proportionate to their net premium payments made during
the term of this Agreement. The Governing Board shall determine such
distribution within six months after the last claim covered by this Agreement
has been finalized.
15.3 The Governing Board is vested with all powers of the Authority for the purpose
of concluding and dissolving the business affairs of the Authority. These include
the power to require those Members which were Risk Management Program
participants at the time of any particular occurrence which was covered or
alleged to be covered under the Memorandum(s) of Coverage or policies of
insurance to pay their share of any additional amount of premium deemed
necessary by the Governing Board for the final disposition of all claims and
expenses associated with such loss.
ARTICLE 16. NEW MEMBERS
16.1 Any governmental agency, organized and operating under the laws of the State
of California which is authorized to participate in a joint powers authority under
the Government Code may become a member of the Authority by complying
with the requirements of the Authority By-Laws.
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ARTICLE 17. LIABILITY OF THE AUTHORITY
17.1 Each Member agrees to indemnify, save and defend the Authority and all other
Members harmless from and against all claims, losses, and damages, including
legal fees and expenses, arising out of any breach or default on the part of such
Member in performance of any of its obligations under this Agreement. The
Authority shall indemnify, save and defend the Members from any act or
negligence of such Member or any of its agents, contractors, servants,
employees or licensees with respect to effecting the terms of this Agreement.
No indemnification is made under this Section for claims, losses or damages,
including legal fees and expenses, arising out of the willful misconduct,
negligence or breach of duty under this Agreement by the Authority or a
Member or their officers, employees, agents or contractors.
17.2 The Representatives to the Governing Board and to each of the Risk
Management Programs and any officer, employee, contractor, or agent of the
Authority shall use ordinary care and reasonable diligence in the exercise of their
power and in the performance of their duties under this Agreement.
17.3 Funds of the Authority may be used to defend, indemnify, and hold harmless
the Authority and any member of the Governing Board, any member of a Risk
Management Program, and any employee of the Authority for their actions taken
within the scope of their duties while acting on behalf of the Authority. Nothing
herein shall limit the right of the Authority to purchase insurance to provide such
coverage as is hereinabove set forth.
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ARTICLE 18. NOTICES
18.1 Notices to each Member under this Agreement shall be sufficient if mailed to its
respective address on file with the Authority. Any Member may designate any
other address in substitution of the foregoing address to which such notice will
be given at any time by giving five days written notice to the Authority and all
other Members.
ARTICLE 19. AMENDMENTS TO THIS AGREEMENT AND PROGRAM BY-LAWS
1 9.1 This Agreement may be amended at any. time by a vote of a majority of
Members present at a meeting where quorum exists. Amendments to the By-
Laws require a vote of a majority of Members present at a meeting where
quorum exists.
ARTICLE 20. SEVERABILITY
20.1 Should any portion, term, condition, or provision of this Agreement be decided
by a court of competent jurisdiction to be illegal or in conflict with any law of
the State of California, or be otherwise rendered unenforceable or ineffectual,
the validity of the remaining portions, terms, conditions, and provisions shall not
be affected thereby.
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ARTICLE 21. AGREEMENT COMPLETE
21 .1 The foregoing constitutes the full and complete Agreement of the parties. There
are no oral understandings or agreements not set forth in writing herein.
ARTICLE 22. TERM OF AGREEMENT
22.1 This Agreement shall become effective on January 1, 2006.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.
CITY OF BELL
By
Title
Executed before me this
_ day of ,200_
(City Seal)
City Clerk
City of Bell
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1 8 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
CITY OF VERNON
By
Title
Executed before me this
_ day of 1200_
City Clerk
City of Vernon
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(City Seal)
1 9 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
APPENDIX" A"
PACIFIC COAST JOINT POWERS AUTHORITY
MEMBER CITIES
City of Bell
City of Vernon
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20 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
CITY COUNCIL
LEONIS C.MALBURG ��j7� SOL BENUDIZ
Mayor Police Chief
THOMAS A.YBARRA 1 MARK C.WHITWORTH
Mayor Pm-Tem _ v Acting Fire Chief
j
WM. "BILL"DAVIS _1L j LEWIS J.POZZEBON
Councilman Director of Environmental Health
H. "LARRY"GONZALES S.KEVIN WILSON
Councilman �""—' -""""�'• °_^--� _ Director of Community Services
W.MICHAEL McCORMICK 4305 Santa Fe Avenue, Vernon, California 90058 SHARON L.DUCKWORTH
Councilman telephone (323) 583-8811 Acting City Treasurer
December 8, 2005 ) [f-
Hon. Kelly McDowell, President VIA FAX AND MAIL
Independent Cities Risk Management Authority
3760 Kilroy Airport Way, Suite 360
Long Beach, California 90806
RE: CITY OF VERNON
ICRMA Workers Compensation Program
Dear Mayor McDowell:
This letter shall serve as written notice, pursuant to the Fifth Amended ICRMA Joint Exercise of
Powers Agreement("JEPA"),the Bylaws of the ICRMA, and the notice provisions of the bylaws of
each individual Risk Management Program of ICRMA,that the City of Vernon hereby withdraws its
membership in the Authority, including its participation in the Workers Compensation Program,as
well as all other ICRMA programs in which the City participates.
Pursuant to the terms of Article 5 of the ICRMA Bylaws,this written notice shall serve as the City of
Vernon's withdrawal from the ICRMA and all risk management programs, effective the fiscal year
beginning July 1, 2006.
This notice of withdrawal is unequivocal and made without reservation. By reference to the effective
date listed above, it is not intended that this notice have an effective date any later than the earliest
date for withdrawal provided under the Joint Powers Agreement and the adopted Bylaws.
Vee�ry y truly yours,
WILLARD G. Y UC
Chief Deputy City ttomey/Acting Risk Manager
cc: Bruce V. Malkenhorst, Acting City Clerk
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PACIFIC COAST JOINT POWERS AUTHORITY
JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
This Joint Exercise Of Powers Agreement For Insurance and Risk Management
Purposes ("Agreement"), dated July 1 , 2006, is executed by and among the public
entities, hereafter referred to as Member or Members, each of which is organized and
existing under the laws of the State of California and is a signatory to this Agreement
and listed in Appendix "A", which is attached hereto and made a part hereof.
RECITALS
This Agreement is predicated upon the following facts:
The following State laws, among others, authorize the Members to enter into
this Agreement:
1 . Labor Code Section 3700, permitting a Member to fund its own Workers'
Compensation claims;
2. Government Code Section 990, permitting a Member to insure itself
against tort or inverse condemnation liability;
3. Government Code Section 990.4, permitting a Member to provide
insurance and self-insurance in any desired combination;
4. Government Code Section 990.6, permitting the proper costs for self-
insurance to be charged against each Member and authorizing the Governing Board to
make premium payments for such coverage in an amount such Governing Board
determines to be necessary to provide such coverage;
5. Government Code Section 990.8, permitting two or more Members to
enter into an agreement to jointly fund such expenditures under the authority of
Government Code Sections 6500 et seq.;
6. Government Code Section 6500 et seq., permitting two or more Members
to jointly exercise, under an agreement, any power which is common to each of them.
NOW, THEREFORE, for and in consideration of the mutual benefits, covenants,
and agreements set forth in this Agreement, the Members agree as follows:
ARTICLE 1. CREATION OF THE JOINT POWERS AUTHORITY
1 .1 Pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division
7 of Title 1 of the Government Code of the State of California, the Members
hereby create a public entity, separate and apart from the Members, to be
known as the Pacific Coast Joint Powers Authority, hereinafter referred to as
"PCJPA or the "Authority". Pursuant to Government Code Section 6508.1,
the debts, liabilities, and obligations of the Authority shall not constitute debts,
liabilities, or obligations of any Member.
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ARTICLE 2. PURPOSE
2.1 The purpose of creating this Authority is to exercise the powers of the Members
to jointly accomplish the following:
2.1 .1 Develop effective Risk Management Programs to reduce the
amount and frequency of their losses.
2.1 .2 Develop Risk Management Programs of insurance to protect
Members from the effects of catastrophic or unexpected
losses. Such programs shall include, but not be limited to,
coverages for losses arising out of Tort Liability, Workers'
Compensation, Health Benefits, and the ownership or use of
real or personal property.
2.1 .3 Operate and maintain a cooperative program of self-insurance,
jointly purchased insurance and risk management, and provide a
forum for the discussion, study, development, and implementation
of procedures of mutual benefit in risk sharing and risk
management programs, where such programs are implemented to
fully or partially share risk among members.
2.1 .4 Jointly purchase insurance, excess insurance, or
reinsurance and/or develop alternative financial
arrangements for the purpose of transferring risk of loss to
commercial insurers.
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2.1 .5 Assist Members to the maximum extent authorized by law to
secure long term solutions enabling the Authority to provide
adequate protection to Members against catastrophic, or
greater than expected, claims and to attract major reinsurers
for the purpose of transferring risk.
2.1 .6 Jointly secure administrative and other services including,
but not limited to, general administration, underwriting, risk
management, loss prevention, claims adjusting, data
processing, brokerage, accounting, and legal services when
related to any of the other purposes.
ARTICLE 3. DEFINITIONS
3.1 The following definitions shall apply to the provisions of this Agreement and the
By-Laws of the Authority and Risk Management Programs:
3.1 .1 "Agreement" shall mean this Agreement, as it may be
amended from time to time, creating the Pacific Coast Joint
Powers Authority.
3.1 .2 "Board" or "Governing Board" shall mean the governing body
of the Authority.
3.1 .3 "By-Laws" shall mean the rules governing the management
of the Authority and the individual Risk Management
Program(s) established hereunder.
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3.1 .4 "Claim(s)" shall mean demand(s) complying with the
requirements of California Government Code Section 910
and made against the Member arising out of occurrences
which are covered or alleged to be covered by the
Authority's Memorandums of Coverage, Programs of Coverage, or
policies of
insurance.
3.1 .5 "Fiscal Year" shall mean the period of time commencing on
July 1 of each year, and thereafter ending on June 30 each
following year.
3.1 .6 "Governing Documents" shall mean this Agreement, the By-
Laws of the Authority and each Risk Management Program,
the Memorandum of Coverage and any other document
stipulated as a Governing Document in the By-Laws or by
action of the Governing Board.
3.1 .7 "Charter Member" shall mean the founding Members of the
Authority.
3.1 .8 "Insurance" shall mean insurance or reinsurance purchased
by the Authority to cover losses for its Members.
3.1 .9 "Member" shall mean any Municipal Corporation or public
entity authorized to be a member of a Joint Powers
Authority, which is a party to this Agreement , and is
participating in one or more Risk Management Programs.
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3.1 .10 "Memorandum of Coverage" shall mean the document or
documents issued by the Authority specifying the types of
coverages and limits provided to the Members.
3.1 .11 "Program Year" shall mean a period of time in which each
program shall be segregated for ease in determining
coverage premiums.
3.1 .12 "Participation" or "Participating" shall mean a Member has
elected to jointly participate in the management of a specific
risk and is a member of that Risk Management Program.
3.1 .13 "Risk Management" shall mean the process of identifying,
evaluating, reducing, transferring, and eliminating risks. Risk
Management includes, but is not limited to, various methods
of funding claims payments, purchasing insurance, legal
defense of claims, controlling losses, and determining self-
insured retention levels and the amount of reserves for
potential claims.
3.1 .14 "Risk Management Program" shall mean those coverage
programs of risk sharing, insurance, and risk management
services created by the Authority to manage specific Risk
Management Programs, i.e. "Liability Risk Management
Program".
3.1 .15 "Authority" or "PCJPA" shall mean the Pacific Coast Joint Powers
Authority.
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ARTICLE 4. PARTIES TO THE AGREEMENT AND RESPONSIBILITIES OF MEMBERS
4.1 Each Member represents and warrants that it intends to, and does hereby,
contract with all other Members listed in Appendix "A", and any new Members
admitted to the Authority pursuant to Article 16. Each Member also represents
and warrants that the withdrawal or expulsion of any Member, pursuant to
Article 14 or 15, shall not relieve any Member of its rights, obligations, liabilities
or duties under this Agreement or the individual Risk Management Programs in
which the Member participates.
4.2 Each Member agrees to be bound by and to comply with all of the terms and
conditions of the Governing Documents and any Resolution or other action
adopted by the Governing Board as they now exist or may hereinafter be
adopted or amended. Each Member assumes the obligations and responsibilities
set forth in the Governing Documents.
ARTICLE 5. GOVERNING BOARD
5.1 The Authority shall be governed by a Governing Board the composition of which
shall be set forth in the Authority's By-Laws. Immediately upon admission of a
new Member pursuant to Article 16, the Member shall be entitled to appoint a
Representative to the Governing Board and an alternate Representative and, if
desired, a substitute alternate Representative, each of whom shall meet the
parameters set forth in the Authority's By-Laws. Decisions of the Member
representative, or the Governing Board in his/her absence, shall be binding on
the Member. Each Member representative, or their alternate, shall have one
vote on the Governing Board.
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5.2 The Member Representative and/or alternate Representative or substitute
alternate Representative shall be removed from the Governing Board upon the
occurrence of any one of the following events: (1 ) the expulsion or withdrawal
of the Member from the Authority; (2) the death or resignation of the Member
Representative; (3) the Authority receives the written notice from the Member
that the Member Representative is no longer a designated representative of the
Member, or as otherwise provided in the Authority's By-Laws.
5.3 Pursuant to Government Code Section 6505.6, the Governing Board shall
designate an officer or employee, 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 Governing Board shall fix the amount of the
fidelity bond to be filed by such public officer(s) and/or employee(s).
5.4 The Governing Board shall have the power to vote, enact or otherwise
determine any matter of the Authority which is not inconsistent with statute or
this Agreement. The Governing Board may delegate matters of day-to-day
operation to the Officers, Member representatives, or other employees of the
Authority or the Member(s).
ARTICLE 6. BOARD MEETINGS AND RECORDS
6.1 Regular Meetings. The Governing Board and all standing committees shall hold,
meetings at the location and time set forth in the By-Laws of the Authority and
each individual Risk Management Program.
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6.2 Ralph M. Brown Act. All meetings of the Governing Board, and appointed
committees, including without limitation, regular, adjourned regular, and special
meetings, shall be called, noticed, held, and conducted in accordance with the
Ralph M. Brown Act (Section 54960 et. seq. of the Government Code).
6.3 Minutes. Minutes of regular, adjourned regular, and special meetings of the
Authority shall be kept under direction of the Secretary. As soon as possible
after each meeting, the Secretary shall forward copies of the minutes to each
Governing Board member.
6.4 Quorum. A majority of the Members of the Governing Board is a quorum for the
transaction of business. However, less than a quorum may adjourn from time to
time. A vote of the majority of a quorum at a meeting is sufficient to take
action.
ARTICLE 7. OFFICERS
7.1 The Governing Board shall elect a President, Vice-President, Treasurer and
Secretary from among its members. The manner of election and term of office
of elected officers and their authority and responsibilities shall be as set forth in
the Authority By-Laws. If any of the officers cease to be a Member's
representative, the resulting vacancy shall be filled as provided in the Authority
By-Laws. The Governing Board may appoint such other officers as it considers
necessary.
7.1 .1 Prior to the acceptance of the third Member of the PCJPA, the
Vice President and Treasurer shall not be allowed a vote on the
Governing Board, and the Members shall select someone other
than a voting member to fill these positions.
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7.1 .2 Prior to the acceptance of the fourth Member of the PCJPA, the
Vice President shall not be allowed a vote on the Governing Board,
and the Members shall select someone other than a voting member
to fill this position.
7.1 .3 In the event that the membership decreases to less than four
Members, the above articles shall be in effect as though the
number of Members never increased above the number of current
Members.
ARTICLE 8. POWERS
8.1 The Authority shall have the powers common to its Members and is authorized,
in its own name, to do all acts necessary and to exercise such common powers
to fulfill the purposes of this Agreement referred to in Article 2 including, but
not limited to, each of the following:
8.1 .1 Finance through the issuance of Bonds or other financial
instruments of indebtedness, self-insurance reserve funds
necessary or convenient for the implementation of this
Agreement.
8.1 .2 Incur debts, liabilities, and obligations.
8.1 .3 Acquire, hold, or dispose of real and personal property.
8.1 .4 Receive contributions and donations of property, funds,
services, and other forms of assistance from any source.
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8.1 .5 Sue and be sued in its own name.
8.1 .6 Employ agents and employees.
8.1 .7 Acquire, construct, manage, maintain, or operate buildings,
works, or improvements.
8.1 .8 Lease real or personal property, including that of a Member.
8.1 .9 Receive, collect, and disburse monies.
8.1 .10 Invest money in the treasury of the Authority in the same
manner and on the same conditions as local agencies
pursuant to Government Code Section 53601 .
8.1 .11 Exercise all other powers necessary and proper to carry out
the provisions of this Agreement.
8.1 .12 Develop and implement Risk Management Programs.
8.1 .13 Jointly purchase for the benefit of Members, insurance
excess insurance, reinsurance, and enter into agreements
for the benefit of Members, for the purpose of transferring
risk of loss to commercial insurers or reinsurers or other
insurance pools.
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ARTICLE 9. RISK MANAGEMENT PROGRAMS
9.1 The Governing Board shall establish Risk Management Programs as provided in
the Authority's By-Laws.
9.2 No Risk Management Program shall become operational, or possess any
authority, until the proposed Risk Management Program By-Laws have been
approved by the Governing Board. The voting on the approval of By-Laws shall
be restricted to Governing Board Member representatives of the particular Risk
Management Program. Approval of the By-Laws and any amendments thereto
shall be as provided in the By-Laws of the individual Risk Management
Programs. On approval of the By-Laws, the various Risk Management Programs
shall become operational and will have all of the powers specifically delegated
to them by the Governing Board.
ARTICLE 10. BUDGET
10.1 The Governing Board shall adopt an annual budget not later than 30 days prior
to the beginning of each Fiscal Year.
ARTICLE 11. ANNUAL AUDIT AND REVIEW
1 1 .1 The Governing Board shall cause an annual financial audit of the accounts and
records to be made and filed as provided in the Authority's By-Laws and the
laws of the State.
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ARTICLE 12. ESTABLISHMENT AND ADMINISTRATION OF FUNDS
12.1 Funds of the Authority shall be separated for investment and administration
purposes. Each Risk Management Program shall be accounted for separately on
a full accrual basis.
12.2 The Governing Board shall establish the policy for warrants drawn to pay
demands against the Authority.
12.3 The coverage for each Program 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 Management Program.
ARTICLE 13. WITHDRAWAL
13.1 Any Member which enters a Risk Management Program may withdraw from
that Risk Management Program and may at a later time seek to renew
participation in said Program subject to the terms and conditions as set forth in
the By-Laws of that particular Risk Management Program.
13.2 A Member is no longer a party to the Authority or this Agreement upon its
withdrawal from all of the Authority's Risk Management Programs.
13.3 When a Member is deemed to have withdrawn from this Agreement, such
withdrawal shall not be construed as a completion of the purpose of this
Agreement unless such withdrawal occurs in accordance with and appurtenant
to Article 15 of this Agreement. The withdrawal of a Member shall be subject
to the terms and conditions of the individual Risk Management Programs that
the Member has participated in, and the eligibility for dividends, assessments,
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and return of premium shall be determined in accordance with the terms of the
Risk Management Program(s).
13.4 In no event shall a Member give notice of a withdrawal less than six (6) months
prior to the beginning of the next fiscal year utilized by the PCJPA.
ARTICLE 14. EXPULSION
14.1 The Governing Board may expel any Member from the Authority and/or from a
Risk Management Program at any time for material breaches of the Governing
Documents. Such expulsion shall be as provided in the By-Laws of the Authority
or each Individual Risk Management Program.
14.2 When a. Member is deemed to have been expelled, such expulsion shall not be
construed as a completion of the purpose of this Agreement. The expulsion of
a Member shall be deemed a withdrawal from the individual Risk Management
Programs that the Member has participated in. The eligibility for dividends,
assessments, and return of premium shall be determined in accordance with the
terms of the Risk Management Program(s).
ARTICLE 15. TERMINATION
15.1 This Agreement shall continue until terminated by a majority of the Members
present at any meeting where a quorum exists, provided, however, that this
Agreement and the Authority shall continue to exist for the purposes of
disposing of all claims, the distribution of assets, and any other functions
necessary to conclude the affairs of the Authority.
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15.2 Upon termination of this Agreement, all assets of the Authority shall be
distributed among the Members that have been participants in its Risk
Management Programs, including any of those Members which previously
withdrew or were expelled pursuant to Articles 13 and 14 of this Agreement, in
accordance with and proportionate to their net premium payments made during
the term of this Agreement. The Governing Board shall determine such
distribution within six months after the last claim covered by this Agreement
has been finalized.
15.3 The Governing Board is vested with all powers of the Authority for the purpose
of concluding and dissolving the business affairs of the Authority. These include
the power to require those Members which were Risk Management Program
participants at the time of any particular occurrence which was covered or
alleged to be covered under the Memorandum(s) of Coverage or policies of
insurance to pay their share of any additional amount of premium deemed
necessary by the Governing Board for the final disposition of all claims and
expenses associated with such loss.
ARTICLE 16. NEW MEMBERS
16.1 Any governmental agency, organized and operating under the laws of the State
of California which is authorized to participate in a joint powers authority under
the Government Code may become a member of the Authority by complying
with the requirements of the Authority By-Laws.
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ARTICLE 17. LIABILITY OF THE AUTHORITY
17.1 Each Member agrees to indemnify, save and defend the Authority and all other
Members harmless from and against all claims, losses, and damages, including
legal fees and expenses, arising out of any breach or default on the part of such
Member in performance of any of its obligations under this Agreement. The
Authority shall indemnify, save and defend the Members from any act or
negligence of such Member or any of its agents, contractors, servants,
employees or licensees with respect to effecting the terms of this Agreement.
No indemnification is made under this Section for claims, losses or damages,
including legal fees and expenses, arising out of the willful misconduct,
negligence or breach of duty under this Agreement by the Authority or a
Member or their officers, employees, agents or contractors.
17.2 The Representatives to the Governing Board and to each of the Risk
Management Programs and any officer, employee, contractor, or agent of the
Authority shall use ordinary care and reasonable diligence in the exercise of their
power and in the performance of their duties under this Agreement.
17.3 Funds of the Authority may be used to defend, indemnify, and hold harmless
the Authority and any member of the Governing Board, any member of a Risk
Management Program, and any employee of the Authority for their actions taken
within the scope of their duties while acting on behalf of the Authority. Nothing
herein shall limit the right of the Authority to purchase insurance to provide such
coverage as is hereinabove set forth.
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ARTICLE 18. NOTICES
18.1 Notices to each Member under this Agreement shall be sufficient if mailed to its
respective address on file with the Authority. Any Member may designate any
other address in substitution of the foregoing address to which such notice will
be given at any time by giving five days written notice to the Authority and all
other Members.
ARTICLE 19. AMENDMENTS TO THIS AGREEMENT AND PROGRAM BY-LAWS
19.1 This Agreement may be amended at any. time by a vote of a majority of
Members present at a meeting where quorum exists. Amendments to the By-
Laws require a vote of a majority of Members present at a meeting where
quorum exists.
ARTICLE 20. SEVERABILITY
20.1 Should any portion, term, condition, or provision of this Agreement be decided
by a court of competent jurisdiction to be illegal or in conflict with any law of
the State of California, or be otherwise rendered unenforceable or ineffectual,
the validity of the remaining portions, terms, conditions, and provisions shall not
be affected thereby.
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ARTICLE 21. AGREEMENT COMPLETE
21 .1 The foregoing constitutes the full and complete Agreement of the parties. There
are no oral understandings or agreements not set forth in writing herein.
ARTICLE 22. TERM OF AGREEMENT
22.1 This Agreement shall become effective on January 1 , 2006.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.
CITY OF BELL
By
Title
Executed before me this
day of 200
(City Seal)
City Clerk
City of Bell
8531021jointexerclseagmtjpa 18 PACIFIC COAST JPA JOINT EXERCISE OF POWERS AGREEMENT
CITY OF VERNON S
By
Title
Executed before me this
day of 200
(City Seal)
City Clerk
City of Vernon
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APPENDIX "A"
PACIFIC COAST JOINT POWERS AUTHORITY
MEMBER CITIES
City of Bell
City of Vernon
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