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HomeMy WebLinkAboutR-1296 - Approving amendments to the interlocal agreement creating the Washington Cities Insurance Authority1-W,c:"1,A-, 1_f"s,F,Je CIT Y 0 F MAR Y S V ILL E Marysville,Washington RESOLUTION NO.I'd-.q {g A RESOLUTION OF THE CITY OF MARYSVILLE APPROVING AMENDMENTS TO THE INTERLOCAL AGREEMENT CREATING THE WASHINGTON CITIES INSURANCE AUTHORITY. WHEREAS,the Washington Cities Insurance Authority has been a functioning and operating organization for the past seven years;and WHEREAS,Article 26 of the Interlocal Agreement creating the Washington Cities Insurance Authority allows for amendment of the Interlocal Agreement;and WHEREAS,the Board of Directors of the Washington Cities Insurance Authority has identified certain articles of the Interlocal Agreement which are in need of amendment to promote the future efficient operation of the Insurance Authority;and WHEREAS,the City of Marysville,as a participating member in the Interlocal Agreement,agrees with said proposed amend- ments;NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MARYS- VILLE,WASHINGTON AS FOLLOWS: The City of Marysville approves the adoption by the Washington Cities Insurance Authority of the following amendments to the Interlocal Agreement creating said Insurance Authority: 1.Repealer.Articles 20 and 21 of the Interlocal Agreement are REPEALED. 2.New Article 20.A new Article 20 is hereby approved which provides as follows: Article 20A.City Withdrawal From Authority Membership. (1)A Member City may withdraw as a party to this Agreement pursuant to requirements of Article 18. (2)A Member City which signs the Agreement and enters the Joint Protection Program pursuant to Article 18 may not withdraw as a party to this Agreement and as a member of the Authority for a three-year period commencing on the ef- fective date of the Joint Protection Program,as determined by Article 18. Resolution - 1 r, " • (3)After the initial three-year non-cancellable commitment to the program,any Member City may withdraw from membership only at the end of any fiscal year of the Authority,provided it has given the Authority twelve months'prior written notice of its intent to withdraw from this Agreement.Such notice shall be hand carried or mailed to the offices of the Authority by certified mail. (4)Withdrawal of membership will result in automatic cancellation of such Member City's participation in the Joint Protection Program,any excess insurance and any other programs offered by the Authority effective the date of withdrawal.Further,the Authority reserves the right to non-renew said withdrawing Member City's coverage in any Authority program during such City's notice period. Article 20B.Authority Termination of City Membership. (1)The Authority shall have the right to terminate any City's membership in the Authority at any time.Such Termination of Membership shall be upon a majority vote of the Board of Directors present at a full Board meeting where such motion for termination of membership is presented.A City's termination of membership shall become effective no later than sixty (60)days after the date such motion is passed,but in no event shall membership extend beyond the last day of coverage in the current Authority insurance coverage program in which said City is a participant. (2)For purposes of this section,Membership in the Authority consists of a Member City's right to have a representative on the Board of Directors and to vote on Board matters,and the right to participate or receive coverage in any Joint Protection Program,self-insured retention or excess insurance program,and to utilize any Authority services or programs. (3)The Authority shall notify a City in writing of its intent to vote on a motion for Termination of Membership of the City at least 30 days before the meeting at which the motion is to be voted upon.The notification shall include reasons for the proposed Termination of Membership.The affected City has the right to be represented at the meeting where the motion for Termination of Membership is to be voted upon and will be provided an opportunity to address the Board members present if they so choose. 3.New Article 21.A new Article 21 is hereby approved which provides as follows: Article 21.Cancellation of Coverage. Resolution - 2 i '., (a)The Authority shall have the right to cancel any Member City's participation in any insurance coverage program offered by or through the Authority.The terms of such cancellation of coverage will be specified in each of the coverage documents for the Authority's various programs, except that excess coverage in any program shall automati- cally cancel effective the date of cancellation of its self- insured coverage.Further,coverage in all Authority programs shall cease effective the date of a Member City's voluntary withdrawal of membership from the Authority. (b)The Authority may cancel any Member City's par- ticipation in any insurance coverage program offered by or through the Authority without termination of the Member City's membership in the Authority.However,any City whose Membership in the Authority has been terminated pursuant to Article 20B shall automatically be cancelled from participa- tion in all insurance coverage programs offered by or through the Authority as of the effective date of termina- tion of membership. 4.Article 15(b)Amended. An amendment to Article 15(b) is approved which will provide as follows: 15(b).A bond in the amount set by the Board (as outlined by State RCW)shall be required of all officers and personnel authorized to disburse funds of the Authority, such bond to be paid for by the Authority. ~PASSED by the Crty Council and APPROVED by the Mayor this 7 day of MA.'<'uh ,1988. CITY OF MARYSVILLE Attest: Approved as to Form: B~~.ae,J~~ CITY ARNEY Resolution - 3