2004 AGN NOV 02 I09 - Laserfiche WebLink

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Item #J CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF NOVEMBER 16, 2004 TO: Honorable Mayor and City Council Members FROM: Dilu de Alwis, Finance Director SUBJECT: Independent Cities Risk Management Authority — Approval of Amended Joint Exercise of Powers Agreement for Insurance and Risk Management Purposes DATE: November 3, 2004 BACKGROUND The City of Colton has been a member of the Independent Cities Risk Management Authority (ICRMA), which is a Joint Powers Authority, since October 1, 1986. The ICRMA provides separate Risk Management Programs for liability, workers' compensation, property and earthquake, health, and other coverages for the 29 Member Cities, some or all of which the City of Colton participates in. On September 2, 2003 the City Council designated Council Member Helen Ramos as a Representative and Finance Director Dilu de Alwis as the Substitute Alternate Representative. DISCUSSION/ ANALYSIS The Joint Exercise of Powers Agreement for Insurance and Risk Management Purposes ("JPA") was last amended in 1998. Since then, the Certificates of Participation ("COP") have been retired and, due to the creation of JPA Bylaws, other changes are necessary to reflect the manner in which the ICRMA conducts its business. The ICRMA Governing Board, at its meeting on October 13, 2004, approved a Fifth Amended JPA which deletes references to the COP and makes other changes as shown on the "Comparison of 1998 Joint Powers Agreement and October 2004 Amended Joint Powers Agreement," which accompanies this report. The Fifth Amended JPA will become effective after it is approved by two-thirds of the ICRMA members. The ICRMA Governing Board is requesting that this City Council approve the amended JPA by adopting the Resolution which accompanies this staff report. It would also be appropriate to reconfirm this City's appointees to the ICRMA Governing Board. The Governing Board provides policy direction for all of the ICRMA committees and, among its duties, appoints the General Manager, admits, sanctions and expels members, adopts the budget, approves and amends Program Bylaws, establishes, amends and terminates programs, approves the Memorandum of Coverage, elects members to committees, settles claims and approves dissolution of ICRMA. ALTERNATIVE The City Council has the option of not approving the bylaws and direct staff to leave ICRMA. This could lead to higher insurance premiums for liability insurance. FINANCIAL IMPACT None