2000 - CJPIA - City's InsuranceMemorandum of Workers' Compensation and
Employer's Liability Coverage
Issued to the Rosemead
Effective July 1, 2013— July 1, 2014
Administered by the California Joint Powers Insurance Authority
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COVER PAGE
MEMORANDUM OF WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS:
Workers' Compensation: Statutory
Employer's Liability: $10,000,000 per occurrence
PROTECTION PERIOD: From July 1, 2013 at 12:01 a.m. Pacific Time until July 1,
2014 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South EI Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
California JPIA
By
President
TABLE OF CONTENTS
1. INTRODUCTION
2. COVERAGE
A. Workers' Compensation
B. Employer's Liability _
C. Other Coverages
3.
4.
5.
EXCLUSIONS
CONDITIONS AND RESPONSIBILITIES
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MEMORANDUM OF WORKERS' COMPENSATION
AND EMPLOYER'S LIABILITY
COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of workers' compensation and employer's liability are
administered by the Authority and shared by its Members pursuant to the Joint Powers
Agreement creating the Authority under the provisions of §6500 et seq. of the
Government Code.
As provided in §990.8 of the Government Code, pooling of losses in this Program is not
insurance. The sole duty of the Authority is to administer the Program adopted by the
Members. The Authority will pay on behalf of members the liability only for Claims or
losses which are pooled under the terms of this Memorandum and the Joint Powers
Agreement.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors at a regular meeting or at a special
meeting called for that purpose.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Member or
the Authority. Any controversy or dispute arising out of or related to an interpretation or
breach of this Memorandum shall be settled in accordance with the appeals procedures
as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. Definitions.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 1 of 15 July 1, 2013 — July 1, 2014
2. COVERAGE
In consideration for Member's payment of the required primary deposit for participation
in this Program, and subject to all terms and conditions set forth in this Memorandum,
the Program agrees to provide the following protection:
A. Workers' Compensation
The Program will pay on behalf of the Member workers' compensation benefits
for bodily injury by accident or occupational disease, including resulting death,
deemed compensable under the laws of the State of California, and sustained by
an Employee.
The Program will provide for the administration and defense of Claims for
workers' compensation benefits, including investigation, payment of benefits,
compliance with reporting requirements for Claims administration, and
settlement. The Program, at its discretion, will choose and manage service
providers necessary to fulfill its objectives; including third party Claims
administrators, medical management providers, defense attorneys, investigators,
etc.
Coverage is subject to the following conditions:
Bodily injury by accident must arise out of and in the course of
employment by the Member and must occur during the Protection
Period.
2. Occupational disease must be caused by or aggravated by the conditions
of employment, and the exposure must occur during the Protection
Period.
Bodily injury or occupational disease from presumptive causations
contained in Labor Code §3212 et seq. or other California governmental
codes must occur during the Protection Period.
4. Coverage is limited to amounts the Member is legally liable to pay after
apportionment to pre-existing, concurrent or subsequent injuries or
illnesses as defined by law.
The Program will pay temporary disability, permanent disability and
death benefits at the statutory rates defined in the California Labor Code
(Labor Code Division 4, Part 2, Chapter 2, Articles 3, 4, 4.5 and 5). If the
Member pays the Employee for periods of temporary disability per a
salary continuation plan under a collective bargaining agreement,
memorandum of understanding or other employment agreement, the
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 2 of 15 July 1, 2013 — July 1, 2014
Program will reimburse the Member at the statutory temporary disability
benefit rate for those periods paid by the Member.
6. If the Employee is eligible to receive salary continuation in lieu of
temporary disability under Labor Code §4850 et seq., the Program will
reimburse the Member at the statutory rate for temporary disability
benefits that the Member would be obligated to pay if Labor Code §4850
et seq. did not apply.
7. Employees on temporary assignment or traveling for Member business
outside the State of California who sustain an injury or occupational
disease are covered for benefits under this Program. Benefits will be paid
on behalf of the Member up to the amount payable under the workers'
compensation laws of the State of California, regardless of the jurisdiction
selected by the Employee.
B. Employer's Liability
The Program will indemnify the Member, where permitted by law, for Loss
arising from bodily injury or occupational disease, including resulting death.
1. Coverage is subject to the following conditions:
(a). Bodily injury by accident must arise out of and in the course of
employment by the Member. Occupational disease must be caused
by or aggravated by the conditions of employment. The accident
or period of exposure must occur during the Protection Period.
Bodily injury does not include emotional distress, anxiety,
discomfort, inconvenience, depression, dissatisfaction or shock to
the nervous system, unless caused by either a manifest physical
injury or a disease with physical dysfunction or condition resulting
in treatment by a licensed physician or surgeon.
(b). Bodily injury or occupational disease suffered by Employee is not
covered by workers' compensation law.
(c). The Employee's duties are necessary or incidental to work
conducted by the Member.
(d). The Member timely and fully pursues all available remedies for
contribution or indemnification from any and all other available
sources.
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and Employer's Liability Coverage Page 3 of 15 July 1, 2013 — July 1, 2014
(e). The original Claim or Suit and related legal actions for damages
are brought in the State of California or under the laws of the State
of California.
2. Subject to the foregoing provision of B. Employer's Liability, the
Program shall:
(a). Indemnify the Member for all sums legally payable as damages
under this section. Damages include:
Amounts for which the Member is liable to a third party by
reason of a Claim, Suit or proceeding against the Member
to recover damages suffered by the third party; or
ii. Damages for care and loss of services of an injured
employee of the Member; or
iii. Damages for consequential bodily injury to a spouse, child,
parent, or sibling of the Employee, provided that such
damages are the direct consequence of injury or disease
arising out of and in the course of the Employee's
employment by Member.
iv. Injury or disease to an Employee arising out of and in the
course of employment, claimed against the Member in a
capacity other than as Employer.
(b). Defend, at the Program's expense, any Claim, proceeding or Suit
against the Member for damages payable under this section. The
Program has the right to investigate and settle these Claims,
proceedings and Suits. The Program has no duty to defend any
Claim, proceeding or Suit that is not covered by this Program.
The Program has no duty to defend or continue defending after
the Program has paid its maximum amount of coverage.
(c). Pay the following costs, in addition to the other amounts payable
under this section, as part of any Claim, proceeding or Suit the
Program defends:
ii.
Reasonable expenses incurred at the Program's expense,
but not loss of earnings;
Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to twice the maximum amount
of coverage under this Program;
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and Employer's Liability Coverage Page 4 of 15 July 1, 2013 — July 1, 2014
iii. Litigation costs taxed against the Member;
iv. Interest on a judgment as required by law; and
V. Other expenses incurred by the Program in discharging the
obligation of the Program or its members under this
section.
The following are excluded from coverage under this section:
(a). Damages arising out of the actual or alleged discharge; coercion;
criticism; demotion; evaluation; reassignment; discipline;
defamation; harassment; humiliation; discrimination against;
termination of; wrongful dismissal or discharge; breach of any oral
or written employment contract or quasi -employment contract;
misrepresentation; violation of employment discrimination laws;
workplace sexual or other harassment; wrongful failure to employ
or promote; wrongful discipline; negligent evaluation; wrongful
demotion; wrongful deprivation of a career opportunity;
employment-related invasion of privacy, defamation or wrongful
infliction of emotional distress; or any other personnel practices,
policies, acts or omissions, of any Employee, including Claims
brought under Americans with Disabilities Act, Family Medical
Leave Act, Pregnancy Disability Leave Act, Equal Opportunities
Act, Fair Employment and Housing Act, Fair Labor Standards Act;
or any other such State or Federal act;
(b). Any obligation of any type that is imposed by a workers'
compensation, occupational disease, unemployment compensation,
occupational health and safety law, or disability benefits law, or
any similar law;
(c). Damages for any injury or disease for any Employee engaged in
work subject to the Longshore and Harbor Workers' Compensation
Act, the Outer Continental Shelf Lands Act, the Defense Base Act,
the Jones Act, the Federal Employers Liability Act, or any other
Federal workers' compensation or occupational disease law, or any
international workers' compensation law;
(d). Punitive or exemplary damages, however characterized, or
damages, fines or penalties imposed under the Migrant and
Seasonal Agricultural Worker Protection Act, or for violation of
any other Federal, state, county or other law, regulation or
ordinance;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 5 of 15 July 1, 2013 — July 1, 2014
C. Other Coverages
1. Defense of Serious & Willful Misconduct Allegation (Labor Code §4553)
or Alleged Discrimination Prohibited by Labor Code § 132a.
The Authority may, at its own discretion, elect to defend a Member
against Claims alleging Serious & Willful Misconduct or a violation of
§132a. Such defense will be provided by an attorney assigned by the
Authority. Any penalties awarded for Serious & Willful Misconduct or
violation of § 132a will be the responsibility of the Member. The
Member may elect to defend itself with counsel of its own choosing, at its
own expense.
3. DEFINITIONS
A. Authority means the California Joint Powers Insurance Authority.
B. Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
C. Claim means a notice, demand, or Suit against a Member to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing or any other administrative or regulatory agency.
D. Damages means compensation in money recovered by a party for loss or
detriment it has suffered. Damages does not include defense of Claims or any
punitive, exemplary or multiplied damages or non -monetary relief or redress or
injunctive relief.
E. Defense Costs means all fees and expenses incurred in connection with the
administration, investigation, defense, and appeal of a Claim covered hereunder,
including attorney fees, court costs, premiums for appeal bonds, and interest on
judgments accruing after the entry of judgment, and also shall include the costs of
any Claims administrator or defense counsel assigned by the Authority to
respond to any Claim on behalf of the Authority. Defense Costs shall not
include the office expenses of the Member, nor the Salaries of employees or
officials of the Member, nor expenses of any Claims administrator engaged by
the Member. Defense Costs also do not include any fee or expense relating to
coverage issues between the Authority and any Member.
F. Discrimination means injury caused by or arising out of.
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and Employer's Liability Coverage Page 6 of 15 July 1, 2013 — July 1, 2014
1. Unlawful discrimination because of race, sex, color, age, religion, or
national origin, or membership in any similarly legally protected class; or
2. Violation of the discrimination prohibitions of the Americans with
Disabilities Act of 1990, any rules or regulations promulgated thereunder
and amendments thereto or similar provisions of any Federal, state, or
local statutory law or common law.
G. Employee includes any person falling within the definition of "employee" under
Labor Code Division 4, Chapter 2, Article 2, beginning with §3351. Volunteers
are considered employees under this Memorandum only if the Member has a
resolution in effect, and passed prior to the date of injury or illness at issue,
providing workers' compensation coverage to volunteers under Labor Code
§3363.5, and while performing specific functions in the course and scope of
authorized activities under the direction and control of the Member.
H. Loss means amounts actually paid by the Program for statutory workers'
compensation benefits, employer's liability Claims and allocated costs for
investigation, administration and defense of Claims under this Memorandum of
Coverage.
I. Member means the entity, including all of its departments and constituent
agencies, which has adopted a resolution to participate in the Program and
become a signatory to the Joint Powers Agreement creating the Authority as may
be amended from time to time, whose name appears on the Cover Page of this
Memorandum. Member includes any other agency for which the Member's
governing board or council acts as the governing board, and also includes any
commissions, agencies, districts, authorities, redevelopment agencies, boards, or
similar entities coming under the Member's direction and control. Member shall
include any other agency authorized by the Authority's Board of Directors. The
Member must be approved for self-insurance by the Office of Self Insurance
Plans and maintain its qualification for self-insurance during the Protection
Period.
Memorandum means this Memorandum of Workers' Compensation and
Employer's Liability Coverage authorized by the Joint Powers Agreement of the
Authority specifying the terms and conditions of the Program.
K. Occurrence means a single accident or event causing bodily injury to one or
more employees; or occupational disease sustained by one or more employees as
a result of an outbreak of the same communicable disease, or sudden and
accidental exposure to the same environmental hazard.
L. Program means the California Joint Powers Insurance Authority's Workers'
Compensation and Employer's Liability Program described by this
Memorandum and the Agreement of the Members creating the Authority. The
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 7 of 15 July 1, 2013 — July 1, 2014
Program is a fund created by the Members for the purpose of pooling self-
insured losses.
M. Protection Period means the time period shown on the Cover Page of this
Memorandum.
N. Suit means a civil proceeding in which a Member is named as a defendant or
cross-defendant, or an arbitration proceeding or alternative -dispute resolution
proceeding to which a Member submits with the Authority's written consent.
4. EXCLUSIONS
This Memorandum, including any obligation to indemnify, defend or pay Defense
Costs, does not apply to:
A. The Member's obligation to pay salary in lieu of temporary disability benefits
under Labor Code §4850, except to the extent that the Member would be
obligated to pay temporary disability benefits in the absence of the mandate of
§4850.
B. The Member's obligations under Labor Code §4856 to provide health benefits.
C. Injury or disease to an Employee while knowingly employed in violation of law;
D. Injury or disease intentionally caused or aggravated by or at the direction of the
Member;
E. Penalties or fines imposed for violation of Labor Code 132a or Labor Code §4553
(Serious & Willful Misconduct);
Penalties or self-imposed benefit increases for violations of Labor Code §5814 et
seq. attributable to the Member's actions;
G. Damages arising out of, or in any way related to, operations with respect to which
the Member:
has violated or failed to comply with any workers' compensation law, or
any provision thereof, or
2. has rejected any workers' compensation law.
H. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages
or fines or other damages imposed primarily for the sake of example and by way
of punishing the Member, including liability of a Member to defend or pay
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 8 of 15 July 1, 2013 — July 1, 2014
damages where the governing body thereof has elected to provide a defense or
pay damages for a Claim, action or judgment for punitive or exemplary damages.
I. Any liability for which the Member is obligated to pay damages by reason of
liability assumed in a contract or agreement.
5. CONDITIONS AND RESPONSIBILITIES
A. General Obligations
The Member agrees to abide by all employment, equal opportunity, anti-
discrimination, health and safety laws, statutes and regulations. It understands
that, among other obligations, it has a non -delegable duty to provide employees
with a safe place to work, and training in safe work practices. The Member
agrees to abide by all applicable wage and hour laws, collective bargaining
agreements, memoranda of understanding, and other statutes and regulations
regarding working conditions.
The Member agrees to immediately report every occupational injury or illness
which results in medical treatment, or any claim by an Employee for workers'
compensation benefits, to the Authority or the Authority's designated
administrator, but in no instance to cause the delay of such report of injury, illness
or claim more than five days after date of knowledge or as otherwise required by
Labor Code §6409.1. The Member agrees to give every employee a claim form
pursuant to Labor Code 5401 within one working day of receiving notice or
knowledge of a claim or potential claim. In the event of an injury or illness, the
Member agrees to provide first aid or arrange for appropriate immediate medical
care. The Member agrees to provide suitable temporary modified or alternate
duty whenever possible for employees with workers' compensation injuries, and
agrees to conduct interactive accommodation meetings as required by AB 2222.
B. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Member's
records, property and operations at any time. Neither the Authority's right to
make inspections, nor the making thereof, nor any report hereon 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 or healthful, or are
in compliance with any law, rule or regulations. The Authority may examine and
audit the Member's books and records at any time during the Protection Period
and extensions thereof, and within three years after the final termination of this
Program, as far as they relate to the subject matter of this Memorandum.
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and Employer's Liability Coverage Page 9 of 15 July 1, 2013 — July 1, 2014
C. Member's Duties in the Event of Occurrence, Claim or Suit
In the event of any Occurrence, written notice containing particulars
sufficient to identify the Member and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and
the names and addresses of the injured and of available witnesses, shall be
given by or for the Member to the Authority's claims administrator as
soon as practicable, but no later than required by statute or regulation.
2. If a Claim is made against a Member, the Member shall immediately
forward to the Authority's claims Administrator every demand, notice,
summons or other process received by the Member or the Member's
representative.
The Authority's claims Administrator will review the Claim, and under
the direction of the Authority, undertake the administration of the Claim,
including investigation, defense and settlement, as appropriate.
4. The Member shall cooperate with the Authority and, upon the
Authority's request, assist as appropriate in the resolution of the Claim,
including enforcing any right of contribution or indemnity against any
person or organization who may be liable to the Member because of
injury or damage to an Employee or Member property. The Member
shall not voluntarily make any payment, assume any obligation or incur
any expense.
D. Privacy and Confidentiality of Claim Records
All Claim records, including Claim files, examiners notes, medical reports,
subpoenaed records, correspondence, tapes and films, and whether electronic or
hard files, are the property of the Authority. Because these records may contain
confidential or private medical and/or psychological information related to
workers' compensation Claims administered by or on behalf of the Authority,
access to Claim files and the information contained therein is restricted to the
Authority and its agents and assignees, with the exception that the Member is
entitled to medical information limited to the diagnosis of the mental or physical
condition for which workers' compensation is being claimed and the treatment
provided for this condition, or what is necessary for the Member to have in order
to provide temporary or permanent modification or accommodation of the
employee's work duties.
E. Change in conditions
If a Member experiences a significant change in operations or conditions, the
Member shall notify the Authority as soon as practicable, and the Authority has
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and Employer's Liability Coverage Page 10 of 15 July 1, 2013 —. July 1, 2014
the right to an underwriting review and to collect additional primary deposits as
may be appropriate to reflect the added exposure to the Program. The additional
primary deposit must be paid within ninety days of notice.
F. Other Protection
If collectible insurance or any other coverage or protection with any insurer, self-
insured employer, joint powers authority or any other source, is available to the
Member covering a loss also protected hereunder (whether on a primary, excess
or contingent basis), the protection hereunder (including any Defense obligation)
shall be in excess of, and shall not contribute with, such insurance or other
coverage or protection, provided that this clause does not apply with respect to
any insurance purchased by a Member specifically to be in excess of this
Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such
insurance, coverage, or other protection.
G. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance
with the Joint Powers Agreement and Bylaws of the Authority.
H. Changes to Memorandum
Notice to any agent or knowledge possessed by any agent of the Authority or by
any other person shall not effect a waiver of or a change in any part of this
Memorandum, nor shall the terms of this Memorandum be waived or changed,
except by a written addendum issued by the Authority to form a part of this
Memorandum.
Subrogation and Recovery
The Authority shall be subrogated to the extent of any payment hereunder to all
the Member's rights of recovery thereof This section applies to all recoveries
from third parties or governmental agencies, including recoveries for state
mandate reimbursements pursuant to SB 90 or other statute or regulation.
The Member shall do nothing after loss to prejudice such rights and shall do
everything necessary to secure such rights. The Authority shall have standing to
seek subrogation recovery in its own name or in the name of the Member, and
the Member shall cooperate with and assist the Authority in pursuing such
recovery, including assigning its right to recover subrogated amounts, and if
necessary, executing a written agreement to effect such assignment. Any amount
so recovered shall be credited to the workers' compensation file.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 11 of 15 July 1, 2013 — July 1, 2014
J. Assignment
There is no assignment of interest permitted under this Memorandum.
K. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms
and provisions of the Agreement creating the Authority, and in the event of any
conflict between the terms and provisions of said Agreement and this
Memorandum, the terms and provisions of the Agreement shall control.
L. Appeal of Disputes
Should a dispute arise between the Member and the Program, the following
conditions will apply:
1. No party is entitled to appeal or arbitrate Claims under this Memorandum
other than the Member.
2. Any disputes concerning coverage, protection, Defense obligations, or
procedures of the Program, as interpreted by the Authority's staff, shall
be appealed to the Authority's Executive Committee in accordance with
the following procedures.
3. A Member may request any determination of a lack of coverage made by
the Authority to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of
notice from the Claims Administrator.
4. Upon request, the Chief Executive Officer shall review a determination of
a lack of coverage made by the Claims Administrator or Authority staff
and shall send to the Member a written determination of coverage.
5. If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees.
Appeals must be in writing within 90 days of the date of the Executive
Director's written decision. The appeal request must state why the
Member disagrees with the denial, and the Member should present any
information that may have a bearing on the ultimate determination of
coverage.
6. The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall
Memorandum of Workers' Compensation
and Employer's Liability Coverage - Page 12 of 15 July 1, 2013 — July 1, 2014
notify the Member in advance of the meeting at which its appeal will be
presented.
If the Member would like to personally address the Appeals Committee,
the Member or the Member's representative may attend the meeting and
speak to the issue.
8. The Appeals Committee may refer the appeal to the Coverage Committee
and consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's
decision in writing.
9. Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in section,
upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
10. If a Member disputes a coverage issue, then, during the course of the
administrative and arbitration proceedings provided herein, the Authority
shall defend the Claim against the Member and have the right to control
any settlement of that Claim, subject to the right of the Authority to
recover from the Member any amounts paid out by the Authority for
such defense or settlement which are finally determined by the Appeals
Committee, or as a result of the Binding Arbitration Process, not to be
owed by the Authority under the Program.
M. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5L.
Appeal of Disputes and disagrees with the final determination of the Appeals
Committee, the Member may request consideration of the coverage issue through
the Authority's binding arbitration process.
The Arbitration process shall be as follows:
1. Following a decision by the Appeals Committee, the appealing Member
shall notify the Chief Executive Officer in writing, within thirty days of
the Appeals Committee's final decision, that it wishes to participate in
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and Employer's Liability Coverage Page 13 of 15 July 1, 2013 — July 1, 2014
Binding Arbitration and shall submit a non-refundable $1,000 arbitration
appeal fee. The written notice shall specify the grounds for the arbitration.
2. Following payment of the arbitration appeals fee, the name of each
Member, other than the appealing Member and the Members
represented on the Appeals Committee, shall be placed in an unmarked
envelope. Each envelope shall be placed in a box and eleven envelopes
shall be drawn by the Chief Executive Officer. A representative of the
appealing Member may be present at the drawing.
The managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their managers shall
be given in writing to the appealing Member.
4. The appealing Member shall have the right to strike two or less names
from the pool for any reason which shall not be disclosed. The Authority
shall have the right to strike two or less names from the pool for any
reason which shall not be disclosed. The appealing Member and the
Authority must strike names within five business days of the drawing.
The right of either party to strike names shall lapse at 5:00 PM on the fifth
business day following the drawing. Notice of names stricken by either
party shall be given in writing to the other party prior to 5:00 PM on the
fifth day following the drawing.
The remaining managers shall be contacted by the Chief Executive Officer
to determine their willingness to serve on the arbitration panel. If more
than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be
the arbitration panel and they shall be disclosed in writing to the appealing
Member.
6. If only five are willing to serve, they shall be the arbitration panel.
If fewer than five are willing to serve, the name of each Member not
drawn in the previous selection drawing shall be placed in an unmarked
envelope, put in a box, and four envelopes shall be drawn for each
arbitration panel position needed to complete a five -Member panel. A
representative of the appealing Member may be present at the drawing.
The names drawn shall be disclosed to the appealing Member who may
reject, for any reason which shall not be disclosed, one name for each four
names drawn. The Authority may also reject one name for each four
names drawn and shall not disclose the reason. Names rejected by the
appealing Member and the Authority must be rejected within 48 hours of
the drawing. The right to reject names shall lapse 48 hours following the
drawing.
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and Employer's Liability Coverage Page 14 of 15 July 1, 2013 — July 1, 2014
8. The managers or chief executive officers of the Members remaining shall
be contacted by the Chief Executive Officer to determine their willingness
to serve on the arbitration panel. The names of those willing to serve shall
be placed in unmarked envelopes, put in a box, and the number necessary
to fill out the arbitration panel shall be drawn by the Chief Executive
Officer and disclosed in writing to the appealing Member. A
representative of the appealing Member may be present at the drawing.
9. This process shall be repeated until five Members are obtained for the
arbitration panel.
10. The arbitration panel Members shall be compensated at the rate of $125
per half-day or portion thereof. If a panel Member is required to stay
away from home overnight, lodging shall be paid by the Authority.
Necessary meals shall be provided for all panel Members. Mileage costs
shall be reimbursed by the Authority at its standard rate.
11. The cost of the arbitration panel shall be borne by the Authority. The
cost of presentation by the appealing Member, including preparation,
exhibits, attorneys, and all other costs of the Member shall be paid by the
Member.
12. The arbitration panel may request legal counsel that shall be selected by
the Chief Executive Officer and paid for by the Authority. Legal counsel
shall not be the counsel for the Authority that has advised the staff and
Executive Committee. However, counsel for the Authority may
participate in or make the presentation to the arbitration panel on behalf of
the Authority, as requested by the Chief Executive Officer.
13. The parties to the arbitration shall not be governed by formal rules of
evidence.
14. The arbitration panel's decision shall be final and binding on the Member
and the Authority. Decisions of the arbitration panel shall be by majority
vote.
15. The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future
arbitration panels for precedent.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 15 of 15 July 1, 2013 — July 1, 2014
AN.' ISSUE DATE (MM/DD/YY)
07/01/2012
THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY
AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES
NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND
THE ADDITIONAL INTEREST.
PRODUCER
COMPANY
ALLIANT INSURANCE SERVICES, INC.
National Union Fife Insurance Company Of Pittsburgh,
1301 DOVE STREET, SUITE 200
PA (CHARTIS)
NEWPORT BEACH, CA 92660
PH (949) 756-0271 / FAX (949) 756-2713
LICENSE NO. OC36861
CODE SUB-CODE
INSURED ALLIANT CRIME INSURANCE PROGRAM (ACIP)
EVIDENCE NUMBER
POLICY NUMBER
GOVERNMENT CRIME POLICY PARTICIPANT:
02-211-2648
CALIFORNIA JPIA MEMBER
EFF DATE (MMIDD/ YY) EXP DATE(MMIDDIYYYY)
CONT. UNTIL
CITY OFROSEMEAD
8838 E. VALLEY BLVD.
7/1/2012 7/1/2013
TERMINATED
IF
ROSEMEAD, CA 91770CHECKED
THIS REPLACES PRIOR EVIDENCE DATED:
iftt3PElYT:Y=JNFQRRlAIQ�.
THE POLICIES OF INSURANCE LISTED ABOVE HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS
SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
Gf3fM1(YRi1iaEtFDRMAiIOt�--,"m _
. _.
.. _
AMOUNTOFINSURANCE
DEDUCTIBLE
COVERAGE /PERILS IFORMS
EMPLOYEE THEFT INCLUDING FAITHFUL PERFORMANCE OF DUTY
$ 1,000,000
$ 2,500
FORGERY OR ALTERATION
INSIDE PREMISES THEFT OF MONEY AND SECURITIES
INSIDE PREMISES ROBBERY AND SAFE BURGLARY OTHER PROPERTY
OUTSIDE THE PREMISES
COMPUTER FRAUD
FUNDS TRANSFER FRAUD
MONEY ORDERS AND COUNTERFEIT PAPER CURRENCY
A-E N171R1SINCLTlDIN SPdEC1AIz, CCINDIT1ONSj;=-. omu; _-..- s_:.- _.--.--- -:-:
ISSUED FOR PURPOSES OF EVIDENCING GOVERNMENT CRIME INSURANCE COVERAGE UNTIL RECEIPT OF COMPANY
POLICY LISTED ABOVE.
SUBJECT TO POLICY TERMS, CONDITIONS AND EXCLUSIONS.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL
BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
...
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Memorandum of Liability Coverage
Issued to the Rosemead
Effective July 1, 2013 — July 1, 2014
Administered by the California Joint Powers Insurance Authority
Effective July 1, 2013 —July 1, 2014, as a joint protection program authorized pursuant to
Article 11(a) of the California JPIA joint powers agreement
rkviding Innovative Risk Management Solulions For Our Public Ager 6v Aaryners
CALIFORNIA
P t
COVER PAGE
MEMORANDUM OF LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS: Primary layer: $20,000,000
PROTECTION PERIOD: From July 1, 2013 at 12:01 a.m. Pacific Time until July 1, 2014 at
12:01 a.m. Pacific Time.
ENDORSEMENT(S): None
This Memorandum, and any endorsements thereto, are a description of the terms and conditions of the
Program through which certain specified and limited self-insured risks of liability are administered by the
Authority and shared by its Members. This Memorandum is not an insurance policy. As provided in
Section 990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South El Monte v. Southern
California Joint Powers Insurance Authority (1995), the pooling of self-insured claims or losses among
the Members of the Authority shall not be considered insurance nor be subject to regulation under the
Insurance Code.
California JPIA
,�rs�i h!slrx%'
President
TABLE OF CONTENTS
1. INTRODUCTION
1
2. PROTECTION PROVIDED
1
A. Payments on Behalf of Protected Parties
1
B. Defense and Settlement
2
C. Protection Limit
3
D. Statutory Limitations
4
E. Territorial Limitation
4
3. DEFINITIONS
4
4. EXCLUSIONS
13
5. CONDITIONS AND RESPONSIBILITIES
20
A. Inspection and Audit
20
B. Severability of Interest
20
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
20
D. Other Protection
21
E. Termination or Amendment
21
F. Changes
21
G. Subrogation
22
K Assignment
22
I. Joint Powers Agreement
22
J. Appeal of Disputes
22
X. Arbitration
24
ii
MEMORANDUM OF LIABILITY COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of liability are administered by the Authority and shared
by its Members pursuant to the Joint Powers Agreement creating the Authority under
the provisions of Section 6500 et seq. of the Government Code.
As provided in Section 990.8 of the Government Code, pooling of losses in this Program
is not insurance. The sole duty of the Authority is to administer the Program adopted
by the Members. The Authority can indemnify only Claims or losses, which are pooled
under the terms of this Memorandum and the Joint Powers Agreement. There is no
transfer of risk from the Member or any Protected Party to the Authority nor
assumption of risk by the Authority.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Protected
Party or the Authority. Any controversy or dispute arising out of or related to an
interpretation or breach of this Memorandum shall be settled in accordance with the
appeals procedures as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. DEFINITIONS.
2. PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
Subject to all provisions of this Memorandum, the Authority will cause the Program to
pay on behalf of the Protected Party all sums that the Protected Party shall become
Memorandum of Liability Coverage Page 1 of 25 July 1, 2013 — July 1, 2014
legally obligated to pay as Damages by reason of Tort Liability imposed by law, or the
Tort Liability of others assumed in a Protected Contract, because of:
(i) Bodily Injury or Property Damage;
(ii) Personal Injury;
(iii) Public Officials Errors and Omissions;
(iv) Broadcast/Publication Injury;
(v) Employment Practices Injury;
(vi) Employee Benefit Administration Liability; or
(vii) Termination of Chief Executive's Employment Liability
caused by an Occurrence to which this Memorandum applies.
B. Defense and Settlement
The Authority, at the shared expense of its Members, and out of funds of the Program
deposited or obligated to be deposited by its Members, shall investigate, negotiate, settle,
or Defend, at the Authority's sole discretion, any Claim or Suit which has been
tendered to the Authority and which in the sole opinion of the Authority is encompassed
by this Program. The Authority shall control selection of defense counsel. Defense
Costs incurred by the Protected Party prior to the tender of the Claim or Suit, as
required by 5. CONDITIONS AND RESPONSIBILITIES, to the Authority are the sole
obligation of the Protected Party. The date of the tender of the Claim or Suit shall be
the date written notice of said Claim or Suit is received at the Authority's offices (or its
designated Claims Administrator).
The obligation of the Authority as described above shall cease to apply after the
Protection Limit has been exhausted by any combination of payments hereunder for
judgments, settlements, or Defense Costs, or if the Authority tenders the Protection
Limit on behalf of any Protected Party. For purposes of excess insurance or
reinsurance, any Defense Costs incurred prior to the tender of the Protection Limit shall
be deducted from the Protection Limit that is tendered.
With respect to any Claim or Suit or part thereof which has been tendered to the
Authority and over which the Authority assumes full or partial responsibility or charge
of the settlement or Defense, the Authority shall, if applicable, cause the Program to
pay:
(i) All expenses incurred by the Authority on behalf of a Protected Party;
(ii) Costs taxed against a Protected Party in the Suit; and
(iii) Other reasonable expenses incurred by a Protected Party at the Authority's
request to assist the Authority in the investigation or Defense of the Claim or
Suit; but this shall not include the office expenses of the Protected Party, the
salaries of Employees or officials of the Protected Party, nor expenses of
any claims administrator engaged by the Protected Party.
With respect to a Claim or Suit for which the Authority has determined that only a
portion is encompassed by this Program, the Authority shall cause the Program to fund
Memorandum of Liability Coverage Page 2 of 25 July 1, 2013 — July 1, 2014
any Defense to the Claim or Suit against the Member and any settlement or final
judgment of that Claim or Suit, subject to the reservation by the Authority of the right to
recover from the Member any amounts paid by the Authority for such settlement or
final judgment which are paid to claimants for Claims or Suits, or portions thereof, not
encompassed by the Program.
With respect to a Claim or Suit for which the Authority has determined that no portion
is encompassed by this Program, the Claim or Suit shall be referred, in its entirety, back
to the Protected Party.
The payment of Defense Costs will reduce the Protection Limit under this Program.
C. Protection Limit
The Protection Limit shown on the Cover Page and the rules below determine the most
the Program will pay, inclusive of Defense Costs, regardless of the number of.
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) Persons or organizations that sustain injuries or Damages.
The Protection Limit stated on the Cover Page is the most the Program will pay per
Member for the sum of Damages, Defense Costs and expenses as included in B.
Defense and Settlement under any or all or any combination of Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Injury, or Termination of Chief Executive's Employment Liability
arising out of any one Occurrence.
For the purpose of determining the Protection Limit all Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Liability, or Termination of Chief Executive's Employment Liability
arising out of exposure to substantially the same general condition(s) shall be considered
as arising out of one Occurrence.
Any actual or alleged loss of use of tangible property not physically injured or destroyed
shall be deemed to occur at the time of the Occurrence that caused such loss of use. Any
other injury or damage occurring or alleged to have occurred over more than one
Protection Period shall be deemed to have occurred during the Protection Period when
the Occurrence began.
For an Additional Contribution, Tort Liability may be assumed in a Protected
Contract on behalf of a Railroad, and the Protection Limit for such assumed Tort
Liability shall be $2,000,000 per occurrence and in the aggregate. For purposes of this
coverage, the Additional Contribution shall be determined based upon the number of
railroad crossings for which a Member seeks coverage.
Memorandum of Liability Coverage Page 3 of 25 July 1, 2013 — July 1, 2014
D. Statutory Limitations
Notwithstanding sections 2.A. and 2.13. above, the defense and/or indemnity protections
afforded by this agreement to a past or present elected or appointed official or Employee
of a Member are not broader than the Member's own duty to defend and indemnify its
official or Employee under California Government Code sections 825, et seq. and 995, et
seq. All immunities, defenses, rights, and privileges of the Member under the
Government Code apply to the Program as well, including any defense that the official
or Employee acted outside the course and scope of employment or acted with fraud,
corruption or actual malice, or any defense that the action or proceeding or type of
damage sought is not the type for which the Member is obligated to provide defense
and/or indemnity. The defense and/or indemnity protections are also subject to all the
terms, conditions, and Exclusions of this Memorandum and do not apply if not covered
by this Memorandum, even if an obligation to defend and/or indemnify would exist
under the Government Code.
E. Territorial Limitation
This Memorandum applies only to Claims made in the courts of the United States or of
any State.
3. DEFINITIONS
Additional Contribution means an assessment charged to a Member for the cost or
additional exposure associated with the Member's participation in an optional liability
protection available through this Memorandum.
Administration under Employee Benefits Administration Liability means:
A. Giving counsel to employees with respect to the Employee Benefits Programs;
B. Interpreting the Employee Benefits Programs;
C. Handling of records in connection with the Employee Benefits Programs; or
D. Effecting enrollment, termination, or cancellation of employees under the
Employee Benefits Programs, provided all such acts are authorized by the
Member.
Aircraft means any vehicle designed to transport people or property through the air.
Airport means any locality either on land or water which is adopted for the landing and
taking off of Aircraft, including all land, water, buildings, structures, equipment or other
improvements necessary or convenient in the establishment and operation of an Airport.
Authority means the California Joint Powers Insurance Authority.
Automobile means a land motor vehicle, trailer, or semi -trailer.
Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
Broadcast/Publication Injury means injury caused by or arising out of:
Memorandum of Liability Coverage Page 4 of 25 July 1, 2013 — July 1, 2014
A. Any form of defamation or other tort related to disparagement or harm to the
character, reputation or feelings of any natural person or organization including but
not limited to libel, slander, product disparagement, trade libel, infliction of
emotional distress, outrage, or outrageous conduct;
B. Any form of invasion of, infringement of, or interference with rights of privacy or
publicity; including but not limited to false light, public disclosure of private facts,
intrusion, and commercial appropriation of name or likeness;
C. Infringement of copyright or trademark;
D. Plagiarism or piracy or misappropriation of ideas under implied contract;
E. Unauthorized use of names, trade names, trademarks, service marks, titles, formats,
ideas, characters, character names, characterizations, performances, plots, musical
compositions, slogans, program material, or any other similar material; or
F. Denial of access to broadcast facilities based upon application of judgment or
standards relating to the acceptability of material for public broadcast; committed in
the course of the Protected Party's broadcast or publication activities.
Certification means a signed statement by a Chief Executive that he or she is entitled to
the Unemployment Protection Payment because he or she is unemployed or is
employed but at a specified lower salary than he or she was earning at the time of the
Occurrence and has not retired under a retirement program in which the Chief
Executive earned benefits as a public employee. The initial executed Certification must
be received within 60 days following the Waiting Period.
Chief Executive means the governing body -appointed chief administrative officer of a
Protected Party whether called city manager, chief administrative officer, general
manager or other title designating the highest appointed official of the governmental
entity.
Claim means a notice, demand, or Suit against a Protected Party to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission, the California Department of Fair Employment and Housing,
or other similar state or federal administrative agency.
Dam means a structure described by California Water Code sections 6002 through 6004.
Damages means compensation in money recovered by a party for loss or detriment it has
suffered through the acts of a Protected Party. Damages does not include defense of
Claims or any punitive, exemplary or multiplied damages or non -monetary relief or
redress or injunctive relief.
Defense Costs means all fees and expenses incurred in connection with the adjustment,
investigation, defense, and appeal of a Claim covered hereunder, including attorney fees,
court costs, premiums for appeal bonds, and interest on judgments accruing after the
entry of judgment, and also shall include the costs of any claims administrator or defense
counsel assigned by the Authority to respond to any Claim on behalf of the Authority.
Defense Costs shall not include the office expenses of the Protected Party, nor the
salaries of employees or officials of the Protected Party, nor expenses of any claims
administrator engaged by the Protected Party. Defense Costs also do not include any
Memorandum of Liability Coverage Page 5 of 25 July 1, 2013 — July 1, 2014
fee or expense relating to coverage issues between the Authority and any Protected
Party.
Discrimination means injury caused by or arising out of:
A. Unlawful discrimination because of race, sex, color, age, religion, or national origin,
or membership in any similar legally protected class; or
B. Violation of the discrimination prohibitions of the Americans with Disabilities Act
of 1990, any rules or regulations promulgated thereunder and amendments thereto
or similar provisions of any federal, state, or local statutory law or common law.
Employee includes any person falling within the definition of "employee" under section
810.2 of the Government Code. That section provides: "Employee includes an
officer... employee, or servant, whether or not compensated, but does not include an
independent contractor." Employee also includes any volunteer designated by the
Member to perform specific functions in the course and scope of authorized activities
under the direction and control of the Member.
Employee Benefit Administration Liability means liability for injury or damage caused
by or arising out of any negligent act, error or omission of the Protected Party in the
Administration of the Member's Employee Benefits Programs.
Employee Benefits Program means group life insurance or self-insurance, group
medical, dental or vision -care insurance or self-insurance, pension plans, retirement
plans, deferred compensation plans, workers' compensation, unemployment insurance,
social benefits, disability benefits, and other similar employee benefits.
Employment Practices Injury means injury arising out of the following offenses
A. Wrongful dismissal, discharge, or termination of employment;
B. Breach of any oral or written employment contract or quasi -employment contract;
C. Employment-related coercion or misrepresentation;
D. Violation of employment discrimination laws;
E. Workplace sexual or other harassment;
F. Wrongful failure to employ or promote;
G. Wrongful discipline, negligent evaluation, or wrongful demotion;
H. Wrongful deprivation of a career opportunity; or
I. Employment-related:
(i) Invasion of privacy,
(ii) Defamation, or
(iii) Wrongful infliction of emotional distress.
Fungi means any type or form of fungus, including mold or mildew and any mycotoxins,
spores, scents, or byproducts produced or released by fungi.
Memorandum of Liability Coverage Page 6 of 25 July 1, 2013 — July 1, 2014
Hostile Fire means a fire that becomes uncontrollable and breaks out from where it is
intended to be.
Levee means a permanent embankment intentionally constructed for the purpose of
preventing overflow of a watercourse or body of water.
Medical Benefit means the cost of all benefits to which a Chief Executive is entitled
under the Comprehensive Omnibus Budget Reconciliation Act of 1986 (COBRA).
Member means the entity, including all of its departments and constituent agencies, that
is a signatory to the Joint Powers Agreement creating the Authority as may be amended
from time to time, which has adopted a resolution to participate in the Program, and
whose name appears on the Cover Page of this Memorandum. Member includes any
other agency for which the Member's governing board or council acts as the governing
board, and also includes any commissions, agencies, districts, authorities, redevelopment
agencies, boards, or similar entities coming under the Member's direction and control.
Member shall include any other agency authorized by the Authority's Executive
Committee or Board of Directors.
Memorandum means this Memorandum of Liability Coverage authorized by the Joint
Powers Agreement of the Authority specifying the terms and conditions of the Program
through which certain specified and limited self-insured risks of liability are administered
by the Authority and shared by its Members.
Nuclear Material means "source material," "special nuclear material," or "by-product
material" as those terms are given meaning in the Atomic Energy Act of 1954 or any law
amendatory thereto.
Occurrence means:
A. With respect to Bodily Injury or Property Damage, an accident, including
continuous or repeated exposure to conditions, that fust occurs during the
Protection Period and that results in Bodily Injury or Property Damage neither
expected nor intended from the standpoint of the Protected Party;
B. With respect to Public Officials Errors and Omissions, actual or alleged conduct
described in the definition of Public Officials Errors and Omissions during the
Protection Period;
C. With respect to Employee Benefits Administration Liability, actual or alleged
conduct described in the definition of Employee Benefits Administration Liability
during the Protection Period;
D. With respect to Personal Injury, Broadcast/Publication Injury, and Employment
Practices Liability, an offense described in the definitions of those terms; or
E. With respect to Termination of Chief Executive's Employment Liability, injury
arising out of:
(i) Dismissal, discharge, or termination of the employment of a Chief Executive;
or
(ii) Failure to renew an employment contract which results in termination of the
employment of a Chief Executive
Memorandum of Liability Coverage Page 7 of 25 July 1, 2013 — July 1, 2014
for which liability on the part of a Protected Party can be settled through the
acceptance by the Chief Executive of an Unemployment Protection Payment in
exchange for a Waiver and Certification.
All claims based on or arising out of Harassment or similar conduct (including
molestation or sexual abuse) by an Employee, or more than one Employee acting in
concert, will be considered arising out of one Occurrence and shall be deemed to have
been committed at the time of the first of such acts or alleged acts, regardless of the
number of.-
(i)
f:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) persons or organizations that sustain injuries or Damages.
If a series of wrongful acts committed by one Employee, or more than one Employee
acting in concert, takes place over more than one Protection Period, the wrongful acts
will be deemed to have been committed during the first Protection Period and only the
Protection Limit for that Protection Period shall apply.
Personal Injury means injury, other than Bodily Injury, Property Damage or Public
Officials Errors and Omissions, resulting from one or more of the following offenses:
A. False arrest, detention, or imprisonment;
B. The use of force for the purpose of protecting persons or property;
C. Malicious prosecution or abuse of process;
D. Wrongful entry by any employee of the Member into a room, dwelling, or other
similar premises that a person occupies;
E. Wrongful eviction by any employee of the Member of a person from a room,
dwelling, or other similar premises that such person occupies;
F. The publication or utterance of a libel or slander, including statements that
disparage a person's or organization's goods, products, or services;
G. A publication or utterance that violates a person's right of privacy;
H. Interference with an existing or prospective economic advantage, contract, or
agreement;
1. Discrimination;
J. Violation of civil rights; or
K. Infliction of emotional distress.
Pollutants/Hazardous Materials includes without limitation:
A. Any flammable or explosive substances, radioactive materials, asbestos, poly-
chlorinated biphenyls, chemicals, substances known to cause cancer or reproductive
toxicity, pollutants, contaminants, hazardous wastes, toxic substances, or related
materials which are regulated by or under any federal, state, or local environmental
law;
Memorandum of Liability Coverage Page 8 of 25 July 1, 2013 — July 1, 2014
B. Any material identified as hazardous in Sections 66261.10 through 66261.126 of
Title 22 of the California Code of Regulations, as amended from time to time
(collectively);
C. Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste. The term "waste" includes
materials to be recycled, reconditioned, or reclaimed; or
D. Fungi and bacteria of any kind, unless caused by an otherwise covered Occurrence.
Program means the California Joint Powers Insurance Authority Liability Protection
Program described by this Memorandum and the Agreement of the Members creating
the Authority. The Program is a fund created by the Members for the purpose of
pooling self-insured losses.
Property Damage means:
A. Physical injury to or destruction of tangible property which occurs during the
Protection Period, including the loss of use thereof at any time resulting there
from; or
B. Loss of use of tangible property that has not been physically injured or destroyed
provided such loss of use is caused by an Occurrence during the Protection
Period.
Protected Contract means a written agreement that satisfies all of the following:
A. The agreement pertains to the Member's operations and by the contract terms the
Member assumes the Tort Liability of another to pay damages because of Bodily
Injury or Property Damage to a third person or organization;
B. The agreement is entered into prior to the Bodily Injury or Property Damage for
which a Claim is made; and
C. The agreement, including its value, is reported by the Member and approved by the
Authority through issuance of an evidence of coverage letter prior to the Bodily
Injury or Property Damage and the value is added to the Member's annual
payroll for use in any retrospective deposit or annual contribution computation.
A Protected Contract may cover an architect, engineer, or surveyor for his or her
role as a Public Official, except for the application of paragraphs B.(i) and B.(ii)
below. Protected Contracts may apply to contract public works directors, building
officials, planning directors, city managers, Chief Executives, city attorneys, city
prosecutors, redevelopment directors, or other contracted Public Officials for
occurrences arising out of their official duties, but this coverage applies only to the
named contract Public Official and does not extend to other individuals within the
contractor's firm.
A Protected Contract does not include any part of any contract or agreement:
A. That indemnifies any person or organization for injury or damages caused by or
arising out of the ownership, operation, maintenance or use of any Aircraft,
Airport or Watercraft;
Memorandum of Liability Coverage Page 9 of 25 July 1, 2013 — July 1, 2014
B. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply
in the instance where an individual is under an exclusive contract as a contract
Public Official solely for the benefit of the Member (i.e., no work is performed by
the person for any other person or entity), for injury or damage arising out of.-
(i)
f(i) Preparing, approving, or failing to prepare or approve maps, drawings,
opinions, reports, surveys, change orders, designs or specifications; or
(ii) Giving or failing to give directions or instructions, if that is the primary cause
of the injury or damage;
C. Under which the Protected Party, if an architect, engineer, or surveyor, assumes
liability for injury or damage arising out of the Protected Party's rendering or
failing to render professional services, including those listed in B. above and
supervisory, inspection, or engineering services; or
D. That indemnifies any person or organization for damages by fire, explosion, or
water damage to premises rented or loaned to the Member.
Limited Protected Contract means a written agreement, contract or permit in which:
A. The Member assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third party in one of the following:
(i) Easements or License Agreements;
(ii) Leases of Real or Personal Property;
(iii) Encroachment Permits;
(iv) Special Events Sponsored by the Member; or
(v) Use of Facilities, Equipment, real or personal property by the Member;
B. The Member assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third party for an activity not named in
paragraph A. directly above, and upon its review of the agreement, Authority staff
has determined at its sole discretion that any risks assumed in the agreement do not
significantly increase the Member's risk exposure, and an Evidence of Coverage
letter has been issued by the Authority; or
C. The Member is obligated to provide evidence of coverage for a third party to
participate in a funding program administered by another government or evidence of
coverage required by bond indentures entered into by the Member if Authority
staff has determined in its sole discretion that any risks assumed in the agreement do
not significantly increase the Member's risk exposure, and an Evidence of
Coverage letter has been issued by the Authority;
and which is entered into prior to the Bodily Injury or Property Damage for which a
Claim is made.
A Limited Protected Contract does not include any part of any contractor agreement
that indemnifies any person or organization for injury or damages caused by the sole
negligence of such person or organization, or that cannot be included in a Protected
Contract.
Memorandum of Liability Coverage Page 10 of 25 July 1, 2013 — July 1, 2014
A Limited Protected Contract also does not include any part of a contract or agreement
that indemnifies the owner or operator of a Railroad.
Protected Party means:
A. The Member named on the Cover Page;
B. Persons who are, or were, elected or appointed officials or Employees of the
Member, whether or not compensated, while acting within the scope of their duties
or employment as such, including while acting on outside committees,
commissions, or boards at the direction of the Member, except that the protection
so provided does not apply to Bodily Injury to another official or employee of the
Member in the course of and arising out of his or her duties to or employment by
the same Member;
C. Any nonprofit California corporation or unincorporated association under written
contract, approved by the Member's governing board or council, to perform
specified functions under the Member's direction and control. The corporation or
unincorporated association is a Protected Party only for Occurrences arising out
of the functions described in the contract. For the purposes of this section, direction
and control means the authority of the Member to be involved in decision making
and to overturn decisions;
D. Any person or entity identified as an additional Protected Party in a letter
certifying such additional Protected Party status issued by the Authority, for
Bodily Injury or Property Damage during the time period identified in the letter;
if a particular activity is identified in the letter, the person or entity is a Protected
Party only for Occurrences arising out of the described activity. Additional
Protected Party status will apply only where required by the terms of a written
agreement;
E. Any person while using an Automobile owned, hired, or leased by a Member, and
any person or organization legally responsible for the use thereof, provided the use
is with the express permission of the Member, and only for Bodily Injury and
Property Damage. This protection does not apply to:
(i) Any person or organization, or any agent or employee thereof, other than the
member, engaged in selling, repairing, servicing, delivering, testing, road
testing, parking or storing, Automobiles, with respect to any Occurrence
arising out of any such occupation or activity;
(ii) With respect to any hired automobile, to the owner or a lessee thereof, other
than the Member, or to any agent or employee of such owner or lessee; or
(iii) Any person or organization, or to any agent or employee thereof, engaged in a
business of operating buses or other Automobiles for the transport of
members of the public unless that business is owned by the Member and
operated by its employees.
(This Memorandum does not provide Underinsured or Uninsured Motorist
coverage.); or
Memorandum of Liability Coverage. Page 11 of 25 July 1, 2013 — July 1, 2014
F. The Authority, its officers and employees while acting in the course and scope of
their duties or employment.
No person or entity is a Protected Party with respect to the conduct of any current or
past partnership, joint venture or joint powers authority (including any separate entity
created pursuant to a joint powers agreement). However, for any person who is an
official or Employee of a Member, who participates in the activities of a partnership,
joint venture, or joint powers authority and is acting for or on behalf of the Member at
the time of the Occurrence, protection is afforded by this Memorandum. Such
coverage shall be in excess of, and shall not contribute with, any collectible insurance,
self-insurance or other coverage provided to the other joint powers authority, agency or
entity.
Protection Period means the time period shown on the Cover Page of this
Memorandum.
Public Officials Errors and Omissions means any act, error, omission, misstatement,
misleading statement, neglect, or breach of duty by any Protected Party in the discharge
of that individual's duties for the Member; or any matter claimed against any Protected
Party solely by reason of the individual being or having been an employee of the
Member. Public Officials Errors and Omissions does not include Bodily Injury,
Property Damage, Personal Injury, Broadcast/Publication Injury, or Employment
Practices Injury.
Radioactive Contamination Injury means Bodily Injury or Property Damage caused
by or arising from ionizing radiations or contamination by radioactive material.
Railroad means a commercial railway as described by the California Public Utilities
Code, Section 229. Railroad includes street railroad as described by the California
Public Utilities Code, Section 231. Railroad does not include amusement railroad rides
that do not cross public streets.
Suit means a civil proceeding in which a Protected Party is named as a defendant or
cross defendant, or an arbitration proceeding or alternative -dispute resolution proceeding
to which a Protected Party submits with the Authority's written consent.
Termination for Cause means dismissal, discharge, termination of employment, or
failure to renew a contract for the reasons stated in 29 USC § 1111 of the Employee
Retirement Income Security Act of 1974. This includes ending the employment of a
Chief Executive because the Chief Executive has been convicted of robbery, bribery,
extortion, embezzlement, fraud, grand larceny, burglary, arson, a felony violation of a
state or federal law regulating a controlled substance (felony drug conviction), murder,
rape, kidnapping, perjury, assault with intent to kill, or any felony involving abuse or
misuse of the Chief Executive's position to obtain illegal personal gain.
Tort Liability means civil liability that would be imposed by law in the absence of any
agreement or contract.
Unemployment Protection Payment means a payment that shall be paid once a month,
for a time period not to exceed six months (the "Payment Period") following the Waiting
Period, that shall equal the amount of the Chief Executive's salary at the time of the
termination of employment Occurrence plus payment of the Medical Benefit less any
Memorandum of Liability Coverage Page 12 of 25 July 1, 2013 — July 1, 2014
amount of compensation earned, while self-employed or as an employee, or any other
payment received as a result of the Occurrence during the Payment Period.
"Salary," for purposes of this Unemployment Protection Payment, means the
regular monthly compensation of the Chief Executive, whether paid monthly, bi-
weekly, semi-monthly, or otherwise, and does not include Benefits, bonuses, car
allowances, expenses, or other allowances, contributions to the Public Employees
Retirement System or any deferred compensation payments made on behalf of the
Chief Executive by the Protected Party.
Waiting Period means a period of time after the termination of employment Occurrence
equal to the greater of (1) six months or (2) the number of months of salary received by
the Chief Executive as a severance payment from the Member.
Waiver means a full and complete relinquishment by a Chief Executive of any and all
rights to sue a Protected Party for any Benefit, compensation, injury, or damages,
known or unknown, past, present or future, arising out of the employment of, termination
of the employment of, or failure to employ the Chief Executive. The Waiver must be
signed and returned to the Authority within 60 days following the termination of
employment.
Watercraft means a vessel, more than 25 feet in length, designed to transport persons or
property in, on, or through water.
4. EXCLUSIONS
This Memorandum, including any obligation to defend or to pay Defense Costs, does
not apply to:
A. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of the ownership, maintenance, use or operation of any Watercraft,
Aircraft, or Airport or any air show events sponsored or controlled by the
Protected Party or conducted on property owned by the Protected Party.
Protection does apply to use of an Aircraft or Watercraft, if the Aircraft or
Watercraft is not owned in whole or in part by the Member and the Member
exercises no part in the servicing or maintenance of the Aircraft or Watercraft.
However, this limited protection does not apply to:
(i) Loss, loss of use of, or damage to the Aircraft or Watercraft;
(ii) Use of any Aircraft or Watercraft for hire or reward; or
(iii) Public Officials Errors and Omissions coverage.
Memorandum of Liability Coverage Page 13 of 25 July 1, 2013 — July 1, 2014
B. Any Claim, Suit, obligation or alleged obligation for which a Protected Party or
any insurance company as his/her/its insurer may be held liable under any workers'
compensation, unemployment compensation or disability benefits law, or under any
similar law.
C. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Bodily Injury
to:
(i) An employee of the Protected Party arising out of and in the course of
employment by the Protected Party; or
(ii) The spouse, child, parent, brother, or sister of that employee as a consequence
of paragraph (i) above.
This Exclusion C. applies whether the Protected Party may be liable as an
employer or in any other capacity, and to any obligation to share damages with or
repay someone else who must pay damages because of the injury. However, this
exclusion does not apply to liability assumed in a Protected Contract or Limited
Protected Contract.
D. Injury to or destruction of:
(i) Property owned by the Protected Party;
(ii) Property rented to or leased to the Protected Party where it has assumed
liability under any contract for damage to or destruction of such property
unless the Protected Party would have been liable in the absence of such
assumption of liability; or
(iii) Property in the care, custody, or control of any Protected Party.
E. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, arising
out of or in any way connected with the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation, by whatever name
called, whether such liability accrues directly against the Protected Party or by
virtue of any agreement entered into by or on behalf of the Protected Party. This
Exclusion E. shall not apply to liability, loss, cost or expense arising from property
damage caused by earth movement, subsidence of land, flooding not caused by the
failure of a Dam or Levee, or sewer backup, even though a legal theory upon which
a claimant seeks recovery is the principle of inverse condemnation. This Exclusion
E shall not apply when the claim or suit alleges damages arising out of temporary
physical measures taken by the Member for public safety reasons in an effort to
prevent or reduce a loss.
F. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
actual, alleged or threatened discharge, dispersal, seepage, migration, release,
escape, or any other forms of exposure to or the presence of Pollutants/Hazardous
Materials including any Claim, Suit, liability, alleged liability, loss, cost or
expense directly or indirectly caused by or arising out of any:
(i) Request, demand, or order that any Protected Party or others test for,
monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any
way respond to, or assess the effects of Pollutants/Hazardous Materials;
Memorandum of Liability Coverage Page 14 of 25 July 1, 2013 — July 1, 2014
(ii) Claim or Suit by or on behalf of a governmental authority or any other entity
or person for costs of or damages because of testing for, monitoring, cleaning
up, removing, containing, treating; detoxifying, or neutralizing, or in any way
responding to, or assessing the effects of Pollutants/Hazardous Materials; or
(iii) Actions or steps taken to mitigate damages or to relocate persons, property or
business as a result of Pollutants/Hazardous Materials.
EXCEPTION TO EXCLUSION, PROTECTION FOR CERTAIN ACCIDENTAL
POLLUTION INJURIES. However this Exclusion F. does not apply to Bodily
Injury or Property Damage arising out of or caused by any actual, alleged or
threatened discharge, dispersal, seepage, migration, release or escape of
Pollutants/Hazardous Materials if all of the following:
(i) It was directly caused by Hostile Fire, explosion, lightning, windstorm,
vandalism or malicious mischief or collision, overturning or upset of a motor
vehicle or railroad vehicle;
(ii) It was accidental and was neither expected nor intended by the Protected
Party;
(iii) It was instantaneous and was demonstrable as having commenced at a specific
time and date during the term of this Memorandum;
(iv) Its commencement became known to the Protected Party within seven days;
(v) Its commencement was reported in writing to the Authority within twenty
days of becoming known to the Protected Party; and
(vi) Reasonable efforts were expended by the Protected Party to correct or
terminate the discharge, dispersal, seepage, migration, release, or escape of
Pollutants/Hazardous Materials.
Nothing contained in this EXCEPTION TO EXCLUSION, PROTECTION FOR
CERTAIN ACCIDENTAL POLLUTION INJURIES shall operate to provide any
protection or obligation to defend or pay Defense Costs with respect to:
(i) Any site or location used by others on the Protected Party's behalf for the
handling, storage, disposal, dumping, processing, or treatment of waste
material. This exclusion applies whether or not the action by others was
known to the Protected Party;
(ii) Any clean-up costs mandated by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and any similar laws
or statutes;
(iii) Clean up, removal, containment, treatment, detoxification or neutralization of
Pollutants/Hazardous Materials situated on premises the Protected Party
currently owns, rents or occupies; or
(iv) Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon
or arising out of Personal Injury or Public Officials Errors and Omissions.
Memorandum of Liability Coverage Page 15 of 25 July 1, 2013 — July 1, 2014
G. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly based on or arising out of the hazardous properties of Nuclear Material.
However, this exclusion does not apply to Radioactive Contamination Injury.
H. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly caused by any complete or partial failure, interruption or surge in the
supply of water, electrical power, gas or fuel, unless such failure, interruption or
surge results from sudden and accidental physical destruction of tangible property
which is caused by the Protected Party.
L Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
partial or complete structural failure of a Dam or Levee.
J. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, or
arising out of, or in connection with the operation of any hospital, clinic (including a
mobile clinic), or established health-care facility owned or operated by the
Protected Party, but protection does apply to liability arising out of the rendering
of emergency medical aid by paramedics, emergency medical technicians, or other
Protected Parties who are not acting in the course of their employment by a
hospital, clinic, or established health-care facility. Protection also applies for
liability arising out of the operation of any hospital, clinic (including a mobile
clinic) or established health care facility, owned and operated by the Protected
Party for animal care and control purposes.
K. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of or in connection with the ownership, maintenance, use, or operation
by the Protected Party of any Railroad.
L. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, based
upon or arising out of the Employee Retirement Income Security Act of 1974,
Public Law 93-406, or any amendment or addition thereto, or any statute or
common law rule which imposes fiduciary duties and responsibilities with respect to
employee benefits or retirement plans; however this exclusion does not apply to
liability protected under Employee Benefit Administration Liability.
M. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages or
fines or other damages imposed primarily for the sake of example and by way of
punishing the Protected Party, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or pay
damages for a Claim, action or judgment for punitive or exemplary damages.
N. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by the
intentional conduct of a Protected Party with willful and conscious disregard of the
rights or safety of other or with malice. However, where the Protected Party did
not authorize, ratify, participate in, consent to or have knowledge of such conduct
by its past or present Employee, elected or appointed official or volunteer and the
claim against the Protected Party is based solely on its vicarious liability arising
from its relationship with such Employee, elected or appointed official or volunteer,
this exclusion does not apply to that Protected Party.
Memorandum of Liability Coverage Page 16 of 25 July 1, 2013 — July 1, 2014
O. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of any violation of state or federal antitrust or restraint -of -trade laws.
Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of:
(i) the adoption or administrative application of any ordinance, resolution or
regulation;
(ii) the approval or disapproval of any land -use entitlement including but not
limited to general plan amendments, zoning amendments, conditional -use
permits, tract maps, development agreements, owner -participation
agreements, or disposition -and -development agreements;
(iii) the approval or disapproval of any rent control ordinance, outdoor advertising
ordinance, or adult bookstore ordinance; or
(iv) the approval or disapproval of the operation of a medical marijuana
dispensary, any ordinances governing that activity and any and all
enforcement efforts.
This exclusion shall not apply to the physical enforcement of an ordinance,
resolution or regulation, such as Tort Liability arising from the act of delivering a
fine, citation, warning, notice or inspection.
Q. Any Claim, Suit, liability, alleged liability, loss, cost, or expense including Tort
Liability:
(i) Arising out of or as a consequence of an actual or alleged breach of any
contract or agreement;
(ii) For any amount actually or allegedly due under the terms of any contract or
agreement; or
(iii) Arising out of or as a consequence of the failure, refusal, or inability of a
Protected Party or anyone acting on behalf of a Protected Party to enter
into or renew any contract or agreement.
However, this exclusion shall not apply to Tort Liability imposed by law for
Damages caused by, arising out of, or as a consequence of failure or delay by a
Protected Party or anyone acting on behalf of a Protected Party to fully perform
any duties or obligations under any contract or agreement.
As used in this exclusion, the term "contract or agreement" shall include but not be
limited to a Protected Contract or Limited Protected Contract.
R. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for declaratory,
injunctive, equitable or other relief, writs of mandate or prohibition or other
prerogative writs, or other relief not seeking Damages. This includes any expense
or cost incurred by a Protected Party arising from the cost of reasonable
accommodation of any disabled person, including any Employee.
S. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Personal
Injury or Broadcast/Publication Injury directly or indirectly caused by or arising
out of any:
Memorandum of Liability Coverage Page 17 of 25 July 1, 2013 — July 1, 2014
(i) Oral or written publication of material, if done by or at the direction of the
Protected Party with knowledge of its falsity;
(ii) Oral or written publication of material whose first publication took place
before the beginning of the Protection Period; or
(iii) Act, omission, or offense committed by a Protected Party with actual malice.
T. Any liability for which the Protected Party is obligated to pay damages by reason
of liability assumed in a contract or agreement. This Exclusion does not apply to
liability for Bodily Injury or Property Damage:
(i) Assumed in a contract or agreement that is a Protected Contract or Limited
Protected Contract; or
(ii) That the Protected Party would have independent of a written contract or
agreement.
U. Any Claim or Suit by a Member against a Protected Party, except that this
section shall not apply to a Claim or Suit brought against the Authority.
V. Any Claim or Suit by a Member against another Member.
W. Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon or
arising out of.
(i) Loss of, loss of use of, injury to, destruction of, diminution of value of,
disappearance of, or costs of recovery of any money or securities, or any
financial loss or default;
(ii) Refunds of taxes, fees, or assessments;
(iii) The issuance, management of proceeds or repayment of bonds, notes or other
debt instruments by any Member or any agent acting on behalf of such
Member; or
(iv) The purchase, transfer, or sale of any securities by any Member or agent
acting on behalf of such Member.
X. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Public
Officials Errors and Omissions Liability based upon or arising out of:
(i) Liability of any Protected Party arising out of estimates of probable costs or
cost estimates being exceeded or for faulty preparation of bid specifications or
plans including liability for mechanic's lien claims, stop notice claims, change
order claims, site differential claims, or similar claims for the value of services
or materials provided; this exclusion extends to such claims, however
denominated, including claims of breach of oral or written contract, third
party beneficiary claims, quantum meruit claims, and/or open account claims;
(ii) Any Protected Party obtaining remuneration or financial gain to which the
Protected Party is or was not legally entitled;
(iii) Liability assumed by a Protected Party in a contract or agreement, but this
exclusion does not apply to liability for Damages that the Protected Party
would have independent of the contract or agreement; or
Memorandum of Liability Coverage Page 18 of 25 July 1, 2013 — July 1, 2014
(iv) Willful violation of penal code or ordinance committed by or with the
knowledge or consent of any Protected Party.
Y. Under Employment Practices Injury, any Claim, Suit, liability, alleged liability,
loss, cost, or expense that:
(i) Constitutes benefits due or to become due or the equivalent value of such
benefits, including but not limited to perquisites, fringe benefits, payments in
connection with an employee benefits plan, service, disability or industrial
disability retirement benefits or any other payment other than salary or wages
to or for the benefit of an Employee arising out of the employment
relationship;
(ii) Is representative of back salary either unpaid in whole or part or paid at an
improper rate to an Employee by the Member;
(iii) Is based upon, arises from, or is in consequence of the employment
reinstatement of the claimant by the Member or the continued employment of
the claimant;
(iv) Is based upon, arises from, or is a consequence of an Occurrence that began
prior to this Memorandum's Protection Period;
(v) Constitutes front pay, future damages or other future economic relief or the
equivalent thereof, if the Member is ordered to reinstate the Employee
pursuant to a judgment or other final adjudication, but fails to do so;
(vi) Is in the form of paid administrative leave; or
(vii) Is based upon, arises from or is in consequence of an actual or alleged
violation of the responsibilities, obligations or duties imposed by the
Employee Retirement Income Security Act of 1974, the Fair Labor Standards
Act, the National Labor Relations Act, the Worker Adjustment and Retraining
Notification Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, the Occupational Safety and Health Act, rules or regulations
promulgated there under and amendments thereto or similar provisions of any
federal, state, or local statutory law or common law.
However, with respect to the exclusions listed in items (i) through (vii) immediately
above, no fact pertaining to or knowledge possessed by any Protected Party shall
be imputed to any other Protected Party to determine if protection is available
under this Memorandum.
Z. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Employee
Benefit Administration Liability based upon or arising out of:
(i) Any dishonest, fraudulent, criminal or malicious act, libel, slander,
discrimination, or humiliation;
(ii) Failure of performance of contract by an insurer;
(iii) Failure of any investment plan to perform as represented by a Protected
Party;
Memorandum of Liability Coverage Page 19 of 25 July 1, 2013 — July 1, 2014
(iv) Advice given by a Protected Party to an Employee to participate or not
participate in subscription plans; or
(v) The inability of any Employee Benefits Program to meet its obligations due
to insolvency or inadequacy of funding.
AA. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for termination of
a Chief Executive's employment based upon or arising out of:
(i) Termination for Cause;
(ii) Lack of a duly executed Waiver; or
(iii) Lack of a duly executed Certification.
5. CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Protected Party's
property and operations at any time. Neither the Authority's right to make inspections
nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of
or for the benefit of the Protected Party or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulations. The Authority may examine and audit the Protected Party's books and
records at any time during the Protection Period and extensions thereof and within three
years after the final termination of this Program, as far as they relate to the subject
matter of this Memorandum.
B. Severabilityoflnterest
The term Protected Party is used severally and not collectively, and the protection
afforded applies to each Protected Party against whom a Claim is made as if a separate
Memorandum were issued to it, but the inclusion herein of more than one Protected
Party shall not operate to increase the per Member Protection Limit.
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
(i) In the event of any Occurrence, written notice containing particulars
sufficient to identify the Protected Party and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and the
names and addresses of the injured and of available witnesses, shall be given
by or for the Protected Party to the Authority's Claims Administrator as
soon as practicable.
(ii) If a Claim is made against a Protected Party, the Protected Party shall
immediately forward to the Authority's Claims Administrator every demand,
notice, summons or other process received by the Protected Party or the
Protected Party's representative.
(iii) The Authority's Claims Administrator will review the Claim, undertake
whatever investigation is indicated, and take appropriate action, depending on
the circumstances. A Claim may be returned to claimant as "insufficient," if
Memorandum of Liability Coverage Page 20 of 25 July 1, 2013 — July 1, 2014
it does not contain minimum and essential information about the incident or
the identity of the claimant. A Claim may also be returned as "late," if the
prescribed time for filing has been exceeded. The Claims Administrator may
request that the Member reject the Claim, or take no action until further
notice, or such actions may be taken by the Claims Administrator if claims
handling authority has been delegated to the Authority by the Member.
(iv) The Protected Party shall cooperate with the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of Suits, and
in enforcing any right of contribution or indemnity against any person or
organization who may be liable to the Protected Party because of injury or
damage with respect to which protection, including any Defense obligation, is
afforded under this Memorandum; and the Protected Party shall not, except
at the Protected Party's own cost, voluntarily make any payment, assume
any obligation or incur any expense. No Claim shall be settled without the
prior written consent of the Authority, and the Authority shall not be
required to contribute to any settlement to which it has not consented.
D. Other Protection
If collectible insurance or any other coverage or protection with any insurer, any
permissibly self-insured general employer, joint powers insurance authority or any other
source is available to the Protected Party covering a loss also protected hereunder
(whether on a primary, excess or contingent basis), the protection hereunder (including
any Defense obligation) shall be in excess of, and shall not contribute with, such
insurance or other coverage or protection, provided that this clause does not apply with
respect to any insurance purchased by a Protected Party specifically to be in excess of
this Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such insurance,
coverage, or other protection, unless agreed to by the Member through a written
agreement approved by the Authority through the issuance of an evidence of coverage
letter prior to a loss.
E. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance with the
Joint Powers Agreement and Bylaws of the Authority. The Executive Committee may
adopt exclusions of coverage, copayments or deductibles for actions or omissions of a
Member that are deemed to be a risk to the program. Such exclusions, copayments or
deductibles may be imposed immediately upon adoption by the Executive Committee or
as a consequence of a Member's failure to adhere to an approved Performance
Improvement Plan.
F. Changes
Notice to any agent or knowledge possessed by any agent of the Authority or by any
other person shall not effect a waiver of or a change in any part of this Memorandum,
nor shall the terms of this Memorandum be waived or changed, except by a written
addendum issued by the Authority to form a part of this Memorandum.
Memorandum of Liability Coverage Page 21 of 25 July 1, 2013 — July 1, 2014
G. Subrogation
The Authority shall reserve the right to subrogate for any payments made hereunder and
to assume the Protected Party's recovery rights. The Protected Party shall do nothing
after loss to prejudice such rights and shall do everything necessary to secure such rights.
The Protected Party may waive subrogation rights, but only through written agreement
executed before the Occurrence giving rise to the loss. The Authority shall have
standing to seek subrogation recovery in its own name or in the name of the Protected
Party, and the Protected Party shall cooperate with and assist the Authority in pursuing
such recovery, including assigning its right to recover subrogated amounts, and if
necessary executing a written agreement to effect such assignment. Any amount so
recovered shall be apportioned as follows:
(i) The Authority shall be reimbursed to the extent of all payment under this
Memorandum. Any remaining balance shall be applied to reimburse the
Protected Party;
(ii) The expenses of such recovery proceedings shall be apportioned in the ratio of
respective recoveries. If there is no recovery in proceedings conducted solely by
the Authority, the Authority shall bear the expenses thereof.
H. Assignment
Assignment of interest under this Memorandum shall not bind the Authority until its
consent is endorsed hereon; if, however, the Member shall be adjudged bankrupt or
insolvent, such protection and Defense obligations as are afforded by this Memorandum
shall apply (a) to Member's legal representative, as the Member, but only while acting
within the scope of said representative's duties as such, and (b) with respect to the
property of the Member, to the person having proper temporary custody thereof, as a
Protected Party, but only until the appointment and qualification of a legal
representative.
I. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms and
provisions of the Agreement creating the Authority, and in the event of any conflict
between the terms and provisions of said Agreement and this Memorandum, the terms
and provisions of the Agreement shall control.
J. Appeal of Disputes
No party is entitled to appeal or arbitrate claims under this Memorandum other than the
Member. Specifically, Employees are not intended to be third party beneficiaries of this
agreement and shall have no right to bring an action against the Authority for a
declaration of rights to protection under this Memorandum. The sole remedy of any
Employee shall be the Employee's right to defense or indemnity against the employing
Member under the provisions of the California Government Code.
Any disputes concerning coverage, protection, Defense obligations, or procedures of the
Program, as interpreted by the Authority's staff, shall be appealed to the Authority's
Executive Committee in accordance with the following procedures.
Memorandum of Liability Coverage Page 22 of 25 July 1, 2013 — July 1, 2014
(i) A written notice that a Claim is not covered by the Memorandum will
normally be provided to the Member by the Claims Administrator. A
Member may request any determination of a lack of coverage made by the
Claims Administrator to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of the
written notice from the Claims Administrator.
(ii) Upon request, the Chief Executive Officer shall review a determination of a
lack of coverage made by the Claims Administrator or Authority staff and
shall send to the Member a written determination of coverage.
(iii) If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees. Appeals
must be in writing within 90 days of the date of the Chief Executive Officer's
written decision. The appeal request must state why the Member disagrees
with the denial, and the Member should present any information that may
have a bearing on the ultimate determination of coverage.
(iv) The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall notify
the Member in advance of the meeting at which its appeal will be presented.
(v) If the Member would like to personally address the Appeals Committee, the
Member or the Member's representative may attend the meeting and speak
to the issue.
(vi) The Appeals Committee may refer the appeal to the Coverage Committee and
consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's decision
in writing.
(vii) Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: _ (1) a new and distinct Claim arising out of the prior
Occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in this paragraph
J., upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
If a Member disputes a coverage issue relating to the application or scope of an
exclusion, then, during the course of the administrative and arbitration proceedings
provided herein, only upon the request of the Member, the Authority shall defend the
Memorandum of Liability Coverage Page 23 of 25 July 1, 2013 — July 1, 2014
Claim against the Member and have the right to control any settlement of that Claim,
subject to the right of the Authority to recover from the Member any amounts paid out
by the Authority for such defense or settlement which are finally determined by the
Appeals Committee, or as a result of the Binding Arbitration Process, not to be owed by
the Authority under the Program. If the Member does not elect to request such a
defense, Defense Costs incurred during the coverage appeal shall be at the sole cost and
expense of the Member.
K. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in S.J. Appeal of
Disputes and disagrees with the final determination of the Appeals Committee, the
Member may request consideration of the coverage issue through the Authority's
Binding Arbitration Process.
The Arbitration process shall be as follows:
(i) Following a decision by the Appeals Committee, the appealing Member shall
notify the Chief Executive Officer in writing, within 30 days of the Appeals
Committee's final decision, that it wishes to participate in Binding Arbitration
and shall submit a non-refundable $1,000 arbitration appeal fee. The written
notice shall specify the grounds for the arbitration.
(ii) Following payment of the arbitration appeals fee, the name of each Member,
other than the appealing Member and the Members represented on the
Appeals Committee, shall be placed in an unmarked envelope. Each envelope
shall be placed in a box and eleven envelopes shall be drawn by the Chief
Executive Officer. A representative of the appealing Member may be present
at the drawing.
(iii) The Chief Executives of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their Chief Executives
shall be given in writing to the appealing Member.
(iv) The appealing Member shall have the right to strike two or less names from
the pool for any reason which shall not be disclosed. The Authority shall
have the right to strike two or less names from the pool for any reason which
shall not be disclosed. The appealing Member and the Authority must strike
names within five business days of the drawing. The right of either party to
strike names shall lapse at 5:00 PM on the fifth day following the drawing.
Notice of names stricken by either party shall be given in writing to the other
party prior to 5:00 PM on the fifth day following the drawing.
(v) The remaining Chief Executives shall be contacted by the Chief Executive
Officer to determine their willingness to serve on the arbitration panel. If
more than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be the
arbitration panel and they shall be disclosed in writing to the appealing
Member.
Memorandum of Liability Coverage Page 24 of 25 July 1, 2013 — July 1, 2014
(vi) If only five are willing to serve, they shall be the arbitration panel
(vii) If fewer than five are willing to serve, the name of each member not drawn in
the previous selection drawing shall be placed in an unmarked envelope, put
in a box, and four envelopes shall be drawn for each arbitration panel position
needed to have a five -member panel. A representative of the appealing
Member may be present at the drawing. The names drawn shall be disclosed
to the appealing Member who may reject, for any reason which shall not be
disclosed, one name for each four names drawn. The Authority may also
reject one name for each four names drawn and shall not disclose the reason.
Names rejected by the appealing Member and the Authority must be rejected
within 48 -hours of the drawing. The right to reject names shall lapse 48-bours
following the drawing.
(viii) The Chief Executives of the Members remaining shall be contacted by the
Chief Executive Officer to determine their willingness to serve on the
arbitration panel. The names of those willing to serve shall be placed in
unmarked envelopes, put in a box, and the number necessary to fill out the
arbitration panel shall be drawn by the Chief Executive Officer and disclosed
in writing to the appealing Member. A representative of the appealing
Member may be present at the drawing.
(ix) This process shall be repeated until five members are obtained for the
arbitration panel.
(x) The arbitration panel members shall be compensated at the rate of $125 per
half-day or portion thereof. If a panel member is required to stay away from
home overnight, lodging shall be paid by the Authority. Necessary meals
shall be provided for all panel members. Mileage costs shall be reimbursed by
the Authority at its standard rate.
(xi) The cost of the arbitration panel shall be borne by the Authority. The cost of
presentation by the appealing Member, including preparation, exhibits,
attorneys, and all other costs of the Member shall be paid by the Member.
(xii) The arbitration panel may request legal counsel that shall be selected by the
Chief Executive Officer and paid for by the Authority. Legal counsel shall
not be the counsel for the Authority that has advised the staff and Executive
Committee. However, counsel for the Authority may participate in or make
the presentation to the arbitration panel on behalf of the Authority, as
requested by the Chief Executive Officer.
(xiii) The parties to the arbitration shall not be governed by formal rules of
evidence.
(xiv) The arbitration panel's decision shall be final and binding on the Member and
the Authority. Decisions of the arbitration panel shall be by majority vote.
(xv) The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future arbitration
panels for precedent.
Memorandum of Liability Coverage Page 25 of 25 July 1, 2013 — July 1, 2014
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Memorandum of Liability Coverage
Issued to the City of Rosemead
Effective July 1, 2011 —July 1, 2012
Administered by the California Joint Powers Insurance Authority
Elle
e
ctive July 1 2011 July 1 2012 as a joint protection program authorized pursuant to
Article 11 (a) of the Cahfornra JPIA joint powers agreement
Providing Innovative Risk Management Solutions For Our Public Agency Partners
CALIFORNIA
P I A
COVER PAGE
MEMORANDUM OF LIABILITY COVERAGE
OR THE
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS: Primary layer: $15,000,000
PROTECTION PERIOD: From July 1, 2011 at 12:01 a.m. Pacific Time until July 1, 2012 at
12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which certain
specified and limited self-insured risks of liability are administered by the Authority and shared by its
Members. This Memorandum is not an insurance policy. As provided in Section 990.8 of the California
Government Code and appellate court cases of Orange County Water District v. Association of California
Water Agencies JPIA (1997) and City of South El Monte v. Southern California Joint Powers Insurance
Authority (1995), the pooling of self-insured claims or losses among the Members of the Authority shall
not be considered insurance nor be subject to regulation under the Insurance Code.
CALIFORNIA JPIA
President
1. INTRODUCTION
1
2. PROTECTION PROVIDED
1
A. Payments on Behalf of Protected Parties
1
B. Defense and Settlement
2
C. Protection Limit
3
D. Statutory Limitations
3
E. Territorial Limitation
4
3. DEFINITIONS
4
4. EXCLUSIONS
13
5. CONDITIONS AND RESPONSIBILITIES
20
A. Inspection and Audit
20
B. Severability of Interest
20
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
20
D. Other Protection
21
E. Termination or Amendment
21
F. Changes
21
G. Subrogation
21
H. Assignment
22
I. Joint Powers Agreement
22
J. Appeal of Disputes
22
K Arbitration
23
ii
MEMORANDUM OF LIABILITY COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of liability are administered by the Authority and shared
by its Members pursuant to the Joint Powers Agreement creating the Authority under
the provisions of Section 6500 et seq, of the Government Code.
As provided in Section 990.8 of the Government Code, pooling of losses in this Program
is not insurance. The sole duty of the Authority is to administer the Program adopted
by the Members. The Authority can indemnify only Claims or losses, which are pooled
under the terms of this Memorandum and the Joint Powers Agreement. There is no
transfer of risk from the Member or any Protected Party to the Authority nor
assumption of risk by the Authority._
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Protected
Party or the Authority. Any controversy or dispute arising out of or related to an
interpretation or breach of this Memorandum shall be settled in accordance with the
appeals procedures as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. DEFINITIONS.
2. PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
Subject to all provisions of this Memorandum, the Authority will cause the Program to
pay on behalf of the Protected Party all sums that the Protected Party shall become
Memorandum of Liability Coverage Page 1 of 25 July 1, 2011— July 1, 2012
legally obligated to pay as Damages by reason of Tort Liability imposed by law, or the
Tort Liability of others assumed in a Protected Contract, because of:
(i) Bodily Injury or Property Damage;
(ii) Personal Injury;
(iii) Public Officials Errors and Omissions;
(iv) Broadcast/Publication Injury;
(v) Employment Practices Injury;
(vi) Employee Benefit Administration Liability; or
(vii) Termination of City Manager's Employment Liability
caused by an Occurrence to which this Memorandum applies
B. Defense and Settlement
The Authority, at the shared expense of its Members, and out of funds of the Program
deposited or obligated to be deposited by its Members, shall investigate, negotiate, settle,
or Defend, at the Authority's sole discretion, any Claim or Suit which has been
tendered to the Authority and which in the sole opinion of the Authority is encompassed
by this Program. The Authority shall control selection of defense counsel. Defense
Costs incurred by the Protected Party prior to the tender of the Claim or Suit, as
required by 5. CONDITIONS AND RESPONSIBILITIES, to the Authority are the sole
obligation of the Protected Party. The date of the tender of the Claim or Suit shall be
the date written notice of said Claim or Suit is received at the Authority's offices (or its
designated Claims Administrator).
The obligation of the Authority as described above shall cease to apply after the
Protection Limit has been exhausted by any combination of payments hereunder for
judgments, settlements, or Defense Costs, or if the Authority tenders the Protection
Limit on behalf of any Protected Party. For purposes of excess insurance or
reinsurance, any Defense Costs incurred prior to the tender of the Protection Limit shall
be deducted from the Protection Limit that is tendered.
With respect to any Claim or Suit or part thereof which has been tendered to the
Authority and over which the Authority assumes full or partial responsibility or charge
of the settlement or Defense, the Authority shall, if applicable, cause the Program to
pay:
(i) All expenses incurred by the Authority on behalf of a Protected Party;
(ii) Costs taxed against a Protected Party in the Suit; and
(iii) Other reasonable expenses incurred by a Protected Party at the Authority's
request to assist the Authority in the investigation or Defense of the Claim or
Suit; but this shall not include the office expenses of the Protected Party, the
salaries of Employees or officials of the Protected Party, nor expenses of
any claims administrator engaged by the Protected Party.
With respect to a Claim or Suit for which the Authority has determined that only a
portion is encompassed by this Program, the Authority shall cause the Program to fund
Memorandum of Liability Coverage Page 2 of 25 July 1, 2011— July 1, 2012
any Defense to the Claim or Suit against the Member and any settlement or final
judgment of that Claim or Suit, subject to the reservation by the Authority of the right to
recover from the Member any amounts paid by the Authority for such settlement or
final judgment which are paid to claimants for Claims or Suits, or portions thereof, not
encompassed by the Program. .
With respect to a Claim or Suit for which the Authority has determined that no portion
is encompassed by this Program, the Claim or Suit shall be referred, in its entirety, back
to the Protected Party.
The payment of Defense Costs will reduce the Protection Limit under this Program.
C. Protection Limit
The Protection Limit shown on the Cover Page and the rules below determine the most
the Program will pay, inclusive of Defense Costs, regardless of the number of:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) Persons or organizations that sustain injuries or Damages.
The Protection Limit stated on the Cover Page is the most the Program will pay per
Member for the sum of Damages, Defense Costs and expenses as included in B.
Defense and Settlement under any or all or any combination of Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Injury, or Termination of City Manager's Employment Liability
arising out of any one Occurrence.
For the purpose of determining the Protection Limit all Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Liability, or Termination of City Manager's Employment Liability
arising out of exposure to substantially the same general conditions) shall be considered
as arising out of one Occurrence.
Any actual or alleged loss of use of tangible property not physically injured or destroyed
shall be deemed to occur at the time of the Occurrence that caused such loss of use. Any
other injury or damage occurring or alleged to have occurred over more than one
Protection Period shall be deemed to have occurred during the Protection Period when
the Occurrence began.
D. Statutory Limitations
Notwithstanding sections 2.A. and 2.13. above, the defense and/or indemnity protections
afforded by this agreement to a past or present elected or appointed official or Employee
of a Member are not broader than the Member's own duty to defend and indemnify its
official or Employee under California Government Code sections 825, et seq. and 995, et
seq. All immunities, defenses, rights, and privileges of the Member under the
Government Code apply to the Program as well, including any defense that the official
or Employee acted outside the course and scope of employment or acted with fraud,
Memorandum of Liability Coverage Page 3 of 25 July 1, 2011 — July 1, 2012
corruption or actual malice, or any defense that the action or proceeding or type of
damage sought is not the type for which the Member is obligated to provide defense
and/or indemnity. The defense and/or indemnity protections are also subject to all the
terms, conditions, and Exclusions of this Memorandum and do not apply if not covered
by this Memorandum, even if an obligation to defend and/or indemnify would exist
under the Government Code.
E. Territorial Limitation
This Memorandum applies only to Claims made in the courts of the United States or of
any State.
3. DEFINITIONS
Administration under Employee Benefits Administration Liability means:
A. Giving counsel to employees with respect to the Employee Benefits Programs;
B. Interpreting the Employee Benefits Programs;
C. Handling of records in connection with the Employee Benefits Programs; or
D. Effecting enrollment, termination, or cancellation of employees under the
Employee Benefits Programs, provided all such acts are authorized by the
Member.
Aircraft means any vehicle designed to transport people or property through the air.
Airport means any locality either on land or water which is adopted for the landing and
taking off of Aircraft, including all land, water, buildings, structures, equipment or other
improvements necessary or convenient in the establishment and operation of an Airport.
Authority means the California Joint Powers Insurance Authority.
Automobile means a land motor vehicle, trailer, or semi -trailer.
Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
Broadcast/Publication Injury means injury caused by or arising out of:
A. Any form of defamation or other tort related to disparagement or harm to the
character, reputation or feelings of any natural person or organization including but
not limited to libel, slander, product disparagement, trade libel, infliction of
emotional distress, outrage, or outrageous conduct;
B. Any form of invasion of, infringement of, or interference with rights of privacy or
publicity; including but not limited to false light, public disclosure of private facts,
intrusion, and commercial appropriation of name or likeness;
C. Infringement of copyright or trademark;
D. Plagiarism or piracy or misappropriation of ideas under implied contract;
Memorandum of Liability Coverage Page 4 of 25 July 1, 2011— July 1, 2012
E. Unauthorized use of names, trade names, trademarks, service marks, titles, formats,
ideas, characters, character names, characterizations, performances, plots, musical
compositions, slogans, program material, or any other similar material; or
F. Denial of access to broadcast facilities based upon application of judgment or
standards relating to the acceptability of material for public broadcast; committed in
the course of the Protected Party's broadcast or publication activities.
Certification means a signed statement by a City Manager that he or she is entitled to
the Unemployment Protection Payment because he or she is unemployed or is
employed but at a specified lower salary than he or she was earning at the time of the
Occurrence and has not retired under a retirement program in which the City Manager
earned benefits as a public employee. The initial executed Certification must be
received within 60 days following the Waiting Period.
City Manager means the governing body -appointed chief administrative officer of a
Protected Party whether called City Manager, Chief Administrative Officer, General
Manager or other title designating the highest appointed official of the governmental
entity.
Claim means a notice, demand, or Suit against a Protected Party to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission, the California Department of Fair Employment and Housing,
or other similar state or federal administrative agency.
Dam means a structure described by California Water Code sections 6002 through 6004.
Damages means compensation in money recovered by a party for loss or detriment it has
suffered through the acts of a Protected Party. Damages does not include defense of
Claims or any punitive, exemplary or multiplied damages or non -monetary relief or
redress or injunctive relief.
Defense Costs means all fees and expenses incurred in connection with the adjustment,
investigation, defense, and appeal of a Claim covered hereunder, including attorney fees,
court costs, premiums for appeal bonds, and interest on judgments accruing after the
entry of judgment, and also shall include the costs of any claims administrator or defense
counsel assigned by the Authority to respond to any Claim on behalf of the Authority.
Defense Costs shall not include the office expenses of the Protected Party, nor the
salaries of employees or officials of the Protected Party, nor expenses of any claims
administrator engaged by the Protected Party. Defense Costs also do not include any
fee or expense relating to coverage issues between the Authority and any Protected
Party.
Discrimination means injury caused by or arising out of:
A. Unlawful discrimination because of race, sex, color, age, religion, or national origin,
or membership in any similar legally protected class; or
B. Violation of the discrimination prohibitions of the Americans with Disabilities Act
of 1990, any rules or regulations promulgated thereunder and amendments thereto
or similar provisions of any federal, state, or local statutory law or common law.
Memorandum of Liability Coverage Page 5 of 25 July 1, 2011 — July 1, 2012
Employee includes any person falling within the definition of "employee" under section
810.2 of the Government Code. That section provides: "Employee includes an
officer... employee, or servant, whether or not compensated, but does not include an
independent contractor." Employee also includes any volunteer designated by the
Member to perform specific functions in the course and scope of authorized activities
under the direction and control of the Member.
Employee Benefit Administration Liability means liability for injury or damage caused
by or arising out of any negligent act, error or omission of the Protected Party in the
Administration of the Member's Employee Benefits Programs.
Employee Benefits Program means group life insurance or self-insurance, group
medical, dental or vision -care insurance or self-insurance, pension plans, retirement
plans, deferred compensation plans, workers' compensation, unemployment insurance,
social benefits, disability benefits, and other similar employee benefits.
Employment Practices Injury means injury arising out of the following offenses
A. Wrongful dismissal, discharge, or termination of employment;
B. Breach of any oral or written employment contract or quasi -employment contract;
C. Employment-related coercion or misrepresentation;
D. Violation of employment discrimination laws;
E. Workplace sexual or other harassment;
F. Wrongful failure to employ or promote;
G. Wrongful discipline, negligent evaluation, or wrongful demotion;
H. Wrongful deprivation of a career opportunity; or
L Employment-related:
(i) Invasion of privacy,
(ii) Defamation, or
(iii) Wrongful infliction of emotional distress.
Fungi means any type or form of fungus, including mold or mildew and any mycotoxins,
spores, scents, or byproducts produced or released by fungi.
Hostile Fire means a fire that becomes uncontrollable and breaks out from where it is
intended to be.
Levee means a permanent embankment intentionally constructed for the purpose of
preventing overflow of a watercourse or body of water.
Medical Benefit means the cost of all benefits to which a City Manager is entitled under
the Comprehensive Omnibus Budget Reconciliation Act of 1986 (COBRA).
Member means the entity, including all of its departments and constituent agencies, that
is a signatory to the Joint Powers Agreement creating the Authority as may be amended
from time to time, which has adopted a resolution to participate in the Program, and
Memorandum of Liability Coverage Page 6 of 25 July 1, 2011 — July 1, 2012
whose name appears on the Cover Page of this Memorandum. Member includes any
other agency for which the Member's governing board or council acts as the governing
board, and also includes any commissions, agencies, districts, authorities, redevelopment
agencies, boards, or similar entities coming under the Member's direction and control.
Member shall include any other agency authorized by the Authority's Executive
Committee or Board of Directors.
Memorandum means this Memorandum of Liability Coverage. authorized by the Joint
Powers Agreement of the Authority specifying the terms and conditions of the Program
through which certain specified and limited self-insured risks of liability are administered
by the Authority and shared by its Members.
Nuclear Material means "source material," "special nuclear material," or "by-product
material" as those terms are given meaning in the Atomic Energy Act of 1954 or any law
amendatory thereto.
Occurrence means:
A. With respect to Bodily Injury or Property Damage, an accident, including
continuous or repeated exposure to conditions, that first occurs during the
Protection Period and that results in Bodily Injury or Property Damage neither
expected nor intended from the standpoint of the Protected Party;
B. With respect to Public Officials Errors and Omissions, actual or alleged conduct
described in the definition of Public Officials Errors and Omissions during the
Protection Period;
C. With respect to Employee Benefits Administration Liability, actual or alleged
conduct described in the definition of Employee Benefits Administration Liability
during the Protection Period;
D. With respect to Personal Injury, Broadcast/Publication Injury, and Employment
Practices Liability, an offense described in the definitions of those terms; or
E. With respect to Termination of City Manager's Employment Liability, injury
arising out of:
(i) Dismissal, discharge, or termination of the employment of a City Manager;
or
(ii) Failure to renew an employment contract which results in termination of the
employment of a City Manager
for which liability on the part of a Protected Party can be settled through the
acceptance by the City Manager of an Unemployment Protection Payment in
exchange for a Waiver and Certification.
All claims based on or arising out of Harassment or similar conduct (including
molestation or sexual abuse) by an Employee, or more than one Employee acting in
concert, will be considered arising out of one Occurrence and shall be deemed to have
been committed at the time of the first of such acts or alleged acts, regardless of the
number of:
(i) Protected Parties;
Memorandum of Liability Coverage Page 7 of 25 July 1, 2011 — July 1, 2012
(ii) Claims made or Suits brought; or
(iii) persons or organizations that sustain injuries or Damages.
If a series of wrongful acts committed by one Employee, or more than one Employee
acting in concert, takes place over more than one Protection Period, the wrongful acts
will be deemed to have been committed during the first Protection Period and only the
Protection Limit for that Protection Period shall apply.
Personal Injury means injury, other than Bodily Injury, Property Damage or Public
Officials Errors and Omissions, resulting from one or more of the following offenses:
A. False arrest, detention, or imprisonment;
B. The use of force for the purpose of protecting persons or property;
C. Malicious prosecution or abuse of process;
D. Wrongful entry by any employee of the Member into a room, dwelling, or other
similar premises that a person occupies;
E. Wrongful eviction by any employee of the Member of a person from a room,
dwelling, or other similar premises that such person occupies;
F. The publication or utterance of a libel or slander, including statements that
disparage a person's or organization's goods, products, or services;
G. A publication or utterance that violates a person's right of privacy;
H. Interference with an existing or prospective economic advantage, contract, or
agreement;
1. Discrimination;
J. Violation of civil rights; or
K. Infliction of emotional distress.
Pollutants/Hazardous Materials includes without limitation:
A. Any flammable or explosive substances, radioactive materials, asbestos, poly-
chlorinated biphenyls, chemicals, substances known to cause cancer or reproductive
toxicity, pollutants, contaminants, hazardous wastes, toxic substances, or related
materials which are regulated by or under any federal, state, or local environmental
law;
B. Any material identified as hazardous in Sections 6626 1. 10 through 66261.126 of
Title 22 of the California Code of Regulations, as amended from time to time
(collectively);
C. Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste. The term "waste" includes
materials to be recycled, reconditioned, or reclaimed; and
D. Fungi and bacteria of any kind, unless caused by an otherwise covered Occurrence.
Program means the California Joint Powers Insurance Authority Liability Protection
Program described by this Memorandum and the Agreement of the Members creating
Memorandum of Liability Coverage Page 8 of 25 July 1, 2011 — July 1, 2012
the Authority. The Program is a fund created by the Members for the purpose of
pooling self-insured losses.
Property Damage means:
A. Physical injury to or destruction of tangible property which occurs during the
Protection Period, including the loss of use thereof at any time resulting there
from; or
B. Loss of use of tangible property that has not been physically injured or destroyed
provided such loss of use is caused by an Occurrence during the Protection
Period.
Protected Contract means a written agreement that satisfies all of the following:
A. The agreement pertains to the Member's operations and by the contract terms the
Member assumes the Tort Liability of another to pay damages because of Bodily
Injury or Property Damage to a third person or organization;
B. The agreement is entered into prior to the Bodily Injury or Property Damage for
which a Claim is made; and
C. The agreement, including its value, is reported by the Member and approved by the
Authority through issuance of an evidence of coverage letter prior to the Bodily
Injury or Property Damage and the value is added to the Member's annual
payroll for use in any retrospective deposit or annual contribution computation.
A Protected Contract may cover an architect, engineer, or surveyor for his or her
role as a Public Official, except for the application of paragraphs B.(i) and B.(ii)
below. Protected Contracts may apply to contract public works directors, building
officials, planning directors, City Managers, city attorneys, city prosecutors,
redevelopment directors, or other contracted Public Officials for occurrences arising
out of their official duties, but this coverage applies only to the named contract
Public Official and does not extend to other individuals within the contractor's firm.
A Protected Contract does not include any part of any contract or agreement:
A. That indemnifies any person or organization for injury or damages caused by or
arising out of the ownership, operation, maintenance or use of any Aircraft,
Airport or Watercraft;
B. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply
in the instance where an individual is under an exclusive contract as a contract
Public Official solely for the benefit of the Member (i.e., no work is performed by
the person for any other person or entity), for injury or damage arising out of:
(i) Preparing, approving, or failing to prepare or approve maps, drawings,
opinions, reports, surveys, change orders, designs or specifications; or
(ii) Giving or failing to give directions or instructions, if that is the primary cause
of the injury or damage;
C. Under which the Protected Party, if an architect, engineer, or surveyor, assumes
liability for injury or damage arising out of the Protected Party's rendering or
Memorandum of Liability Coverage Page 9 of 25 July 1, 2011— July 1, 2012
failing to render professional services, including those listed in B. above and
supervisory, inspection, or engineering services;
D. That indemnifies any person or organization for damages by fire, explosion, or
water damage to premises rented or loaned to the Member; or
E. That indemnifies any person or organization in connection with the establishment,
designation, or implementation of a Quiet Zone.
Limited Protected Contract means a written agreement, contract or permit in which:
A. The Member assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third party in one of the following:
(i) Easements or License Agreements;
(ii) Leases of Real or Personal Property;
(iii) Encroachment Permits;
(iv) Special Events Sponsored by the Member; or
(v) Use of Facilities, Equipment, real or personal property by the Member; or
B. The Member assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third party for an activity not named in
paragraph A. directly above, and upon its review of the agreement, Authority staff
has determined at its sole discretion that any risks assumed in the agreement do not
significantly increase the Member's risk exposure, and an Evidence of Coverage
letter has been issued by the Authority; or
C. The Member is obligated to provide evidence of coverage for a third party to
participate in a funding program administered by another government or evidence of
coverage required by bond indentures entered into by the Member if Authority
staff has determined in its sole discretion that any risks assumed in the agreement do
not significantly increase the Member's risk exposure, and an Evidence of
Coverage letter has been issued by the Authority;
and which is entered into prior to the Bodily Injury or Property Damage for which a
Claim is made.
A Limited Protected Contract does not include any part of any contract or agreement
that indemnifies any person or organization for injury or damages caused by the sole
negligence of such person or organization, or that cannot be included in a Protected
Contract.
A Limited Protected Contract also does not include any part of a contract or agreement
that indemnifies the owner or operator of a Railroad.
Protected Party means:
A. The Member named on the Cover Page;
B. Persons who are, or were, elected or appointed officials or Employees of the
Member, whether or not compensated, while acting within the scope of their duties
Memorandum of Liability Coverage Page 10 of 25 July 1, 2011 —July 1, 2012
or employment as such, including while acting on outside committees,
commissions, or boards at the direction of the Member, except that the protection
so provided does not apply to Bodily Injury to another official or employee of the
Member in the course of and arising out of his or her duties to or employment by
the same Member;
C. Any nonprofit California corporation or unincorporated association under written
contract, approved by the Member's governing board or council, to perform
specified functions under the Member's direction and control. The corporation or
unincorporated association is a Protected Party only for Occurrences arising out
of the functions described in the contract. For the purposes of this section, direction
and control means the authority of the Member to be involved in decision making
and to overturn decisions;
D. Any person or entity identified as an additional Protected Party in a letter
certifying such additional Protected Party status issued by the Authority, for
Bodily Injury or Property Damage during the time period identified in the letter;
if a particular activity is identified in the letter, the person or entity is a Protected
Party only for Occurrences arising out of the described activity. Additional
Protected Party status will apply only where required by the terms of a written
agreement.
E. Any person while using an Automobile owned, hired, or leased by a Member, and
any person or organization legally responsible for the use thereof, provided the use
is with the express permission of the Member, and only for Bodily Injury and
Property Damage. This protection does not apply to:
(i) Any person or organization, or any agent or employee thereof, engaged in
selling, repairing, servicing, delivering, testing, road testing, parking or
storing, Automobiles, with respect to any Occurrence arising out of any such
occupation or activity;
(ii) With respect to any hired automobile, to the owner or a lessee thereof, other
than the Member, or to any agent or employee of such owner or lessee; or
(iii) Any person or organization or to any agent or employee thereof engaged in a
business of operating buses or other Automobiles for the transport of
members of the public unless that business is owned by the Member and
operated by its employees.
(This Memorandum does not provide Underinsured or Uninsured Motorist
coverage.); or
F. The Authority, its officers and employees while acting in the course and scope of
their duties or employment.
No person or entity is a Protected Party with respect to the conduct of any current or
past partnership, joint venture or joint powers authority (including any separate entity
created pursuant to a joint powers agreement). However, for any person who is an
official or Employee of a Member, who participates in the activities of a partnership,
joint venture, or joint powers authority and is acting for or on behalf of the Member at
the time of the Occurrence, protection is afforded by this Memorandum. Such
Memorandum of Liability Coverage Page I 1 of 25 July 1, 2011— July 1, 2012
coverage shall be in excess of, and shall not contribute with, any collectible insurance,
self-insurance or other coverage provided to the other joint powers authority, agency or
entity.
Protection Period means the time period shown on the Cover Page of this
Memorandum.
Public Officials Errors and Omissions means any act, error, omission, misstatement,
misleading statement, neglect, or breach of duty by any Protected Party in the discharge
of that individual's duties for the Member; or any matter claimed against any Protected
Party solely by reason of the individual being or having been an employee of the
Member. Public Officials Errors and Omissions does not include Bodily Injury,
Property Damage, Personal Injury, Broadcast/Publication Injury, or Employment
Practices Injury.
Quiet Zone means a segment of a rail line, within which is situated one or a number of
consecutive public highway -rail crossings at which locomotive horns are not routinely
sounded. Quiet Zone includes partial quiet zone, a segment of a rail line within which is
situated one or a number of consecutive public highway -rail grade crossings at which
locomotive horns are not routinely sounded for a specified period of time during the
evening and/or nighttime hours. Quiet Zone also includes all vehicle or pedestrian
crossings wherein localized or "wayside" horns have been installed at the crossing in lieu
of a locomotive sounding its horn.
Radioactive Contamination Injury means Bodily Injury or Property Damage caused
by or arising from ionizing radiations or contamination by radioactive material.
Railroad means a commercial railway as described by the California Public Utilities
Code, Section 229. Railroad includes street railroad as described by the California
Public Utilities Code, Section 231. Railroad does not include amusement railroad rides
that do not cross public streets.
Suit means a civil proceeding in which a Protected Party is named as a defendant or
cross defendant, or an arbitration proceeding or alternative -dispute resolution proceeding
to which a Protected Party submits with the Authority's written consent.
Termination for Cause means dismissal, discharge, termination of employment, or
failure to renew a contract for the reasons stated in 29 USC § 1111 of the Employee
Retirement Income Security Act of 1974. This includes ending the employment of a City
Manager because the City Manager has been convicted of robbery, bribery, extortion,
embezzlement, fraud, grand larceny, burglary, arson, a felony violation of a state or
federal law regulating a controlled substance (felony drug conviction), murder, rape,
kidnapping, perjury, assault with intent to kill, or any felony involving abuse or misuse of
the City Manager's position to obtain illegal personal gain.
Tort Liability means civil liability that would be imposed by law in the absence of any
agreement or contract.
Unemployment Protection Payment means a payment that shall be paid once a month,
for a time period not to exceed six months (the "Payment Period") following the Waiting
Period, that shall equal the amount of the City Manager's salary at the time of the
termination of employment Occurrence plus payment of the Medical Benefit less any
Memorandum of Liability Coverage Page 12 of 25 July 1, 2011— July 1, 2012
amount of compensation earned, while self-employed or as an employee, or any other
payment received as a result of the Occurrence during the Payment Period.
"Salary," for purposes of this Unemployment Protection Payment, means the
regular monthly compensation of the City Manager, whether paid monthly, bi-
weekly, semi-monthly, or otherwise, and does not include Benefits, bonuses, car
allowances, expenses, or other allowances, contributions to the Public Employees
Retirement System or any deferred compensation payments made on behalf of the
City Manager by the Protected Party.
Waiting Period means a period of time after the termination of employment Occurrence
equal to the greater of (1) six months or (2) the number of months of salary received by
the City Manager as a severance payment from the Member.
Waiver means a full and complete relinquishment by a City Manager of any and all
rights to sue a Protected Party for any Benefit, compensation, injury, or damages,
known or unknown, past, present or future, arising out of the employment of, termination
of the employment of, or failure to employ the City Manager. The Waiver must be
signed and returned to the Authority within 60 days following the termination of
employment.
Watercraft means a vessel, more than 25 feet in length, designed to transport persons or
property in, on, or through water.
4. EXCLUSIONS
This Memorandum, including any obligation to defend or to pay Defense Costs, does
not apply to:
A. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of the ownership, maintenance, use or operation of any Watercraft,
Aircraft, or Airport. Protection does apply to use of an Aircraft or Watercraft, if
the Aircraft or Watercraft is not owned in whole or in part by the Member and the
Member exercises no part in the servicing or maintenance of the Aircraft or
Watercraft. However, this limited protection does not apply to:
(i) Loss, loss of use of, or damage to the Aircraft or Watercraft; or
(ii) Use of any Aircraft or Watercraft for hire or reward.
B. Any Claim, Suit, obligation or alleged obligation for which a Protected Party or
any insurance company as his/her/its insurer may be held liable under any workers'
compensation, unemployment compensation or disability benefits law, or under any
similar law.
C. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Bodily Injury
to:
(i) An employee of the Protected Party arising out of and in the course of
employment by the Protected Party; or
Memorandum of Liability Coverage Page 13 of 25 July 1, 2011 — July 1, 2012
(ii) The spouse, child, parent, brother, or sister of that employee as a consequence
of paragraph (i) above.
This Exclusion C. applies whether the Protected Party may be liable as an
employer or in any other capacity, and to any obligation to share damages with or
repay someone else who must pay damages because of the injury. However, this
exclusion does not apply to liability assumed in a Protected Contract or Limited
Protected Contract.
D. Injury to or destruction of:
(i) Property owned by the Protected Party;
(ii) Property rented to or leased to the Protected Party where it has assumed
liability under any contract for damage to or destruction of such property
unless the Protected Party would have been liable in the absence of such
assumption of liability; or
(iii) Property in the care, custody, or control of any Protected Party.
E. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, arising
out of or in any way connected with the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation, by whatever name
called, whether such liability accrues directly against the Protected Party or by
virtue of any agreement entered into by or on behalf of the Protected Party. This
Exclusion E. shall not apply to liability, loss, cost or expense arising from property
damage caused by earth movement, subsidence of land, flooding not caused by the
failure of a Dam or Levee, or sewer backup, even though a legal theory upon which
a claimant seeks recovery is the principle of inverse condemnation.
F. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
actual, alleged or threatened discharge, dispersal, seepage, migration, release,
escape, or any other forms of exposure to or the presence of Pollutants/Hazardous
Materials including any Claim, Suit, liability, alleged liability, loss, cost or
expense directly or indirectly caused by or arising out of any:
(i) Request, demand, or order that any Protected Party or others test for,
monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any
way respond to, or assess the effects of Pollutants/Hazardous Materials;
(ii) Claim or Suit by or on behalf of a governmental authority or any other entity
or person for costs of or damages because of testing for, monitoring, cleaning
up, removing, containing, treating, detoxifying, or neutralizing, or in any way
responding to, or assessing the effects of Pollutants/Hazardous Materials; or
(iii) Actions or steps taken to mitigate damages or to relocate persons, property or
business as a result of Pollutants/Hazardous Materials.
EXCEPTION TO EXCLUSION, PROTECTION FOR CERTAIN ACCIDENTAL
POLLUTION INJURIES. However this Exclusion F. does not apply to Bodily
Injury or Property Damage arising out of or caused by any actual, alleged or
Memorandum of Liability Coverage Page 14 of 25 July 1, 2011— July 1, 2012
threatened discharge, dispersal, seepage, migration, release or escape of
Pollutants/Hazardous Materials if:
(i) It was directly caused by Hostile Fire, explosion, lightning, windstorm,
vandalism or malicious mischief or collision, overturning or upset of a motor
vehicle or railroad vehicle; and
(ii) It was accidental and was neither expected nor intended by the Protected
Party; and
(iii) It was instantaneous and was demonstrable as having commenced at a specific
time and date during the term of this Memorandum; and
(iv) Its commencement became known to the Protected Party within seven days;
and
(v) Its commencement was reported in writing to the Authority within twenty
days of becoming known to the Protected Party; and
(vi) Reasonable efforts were expended by the Protected Party to correct or
terminate the discharge, dispersal, seepage, migration, release, or escape of
Pollutants/Hazardous Materials.
Nothing contained in this EXCEPTION TO EXCLUSION, PROTECTION FOR
CERTAIN ACCIDENTAL POLLUTION INJURIES shall operate to provide any
protection or obligation to defend or pay Defense Costs with respect to:
(i) Any site or location used by others on the Protected Party's behalf for the
handling, storage, disposal, dumping, processing, or treatment of waste
material. This exclusion applies whether or not the action by others was
known to the Protected Party;
(ii) Any clean-up costs mandated by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and any similar laws
or statutes;
(iii) Clean up, removal, containment, treatment, detoxification or neutralization of
Pollutants/Hazardous Materials situated on premises the Protected Party
currently owns, rents or occupies; or
(iv) Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon
or arising out of Personal Injury or Public Officials Errors and Omissions.
G. Any Claim, Suit, liability; alleged liability, loss, cost, or expense directly or
indirectly based on or arising out of the hazardous properties of Nuclear Material.
However, this exclusion does not apply to Radioactive Contamination Injury.
H. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly caused by any complete or partial failure, interruption or surge in the
supply of water, electrical power, gas or fuel, unless such failure, interruption or
surge results from sudden and accidental physical destruction of tangible property
which is caused by the Protected Party.
Memorandum of Liability Coverage Page 15 of 25 July 1, 2011 —July 1, 2012
I. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
partial or complete structural failure of a Dam or Levee.
Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, or
arising out of, or in connection with the operation of any hospital, clinic (including a
mobile clinic), or established health-care facility owned or operated by the
Protected Party, but protection does apply to liability arising out of the rendering
of emergency medical aid by paramedics, emergency medical technicians, or other
Protected Parties who are not acting in the course of their employment by a
hospital, clinic, or established health-care facility. Protection also applies for
liability arising out of the operation of any hospital, clinic (including a mobile
clinic) or established health care facility, owned and operated by the Protected
Party for animal care and control purposes.
K. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of or in connection with:
(i) the ownership, maintenance, use, or operation by the Protected Party of any
Railroad; or
(ii) the establishment, designation; or implementation of a Quiet Zone.
L. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, based
upon or arising out of the Employee Retirement Income Security Act of 1974,
Public Law 93-406, or any amendment or addition thereto, or any statute or
common law rule which imposes fiduciary duties and responsibilities with respect to
employee benefits or retirement plans; however this exclusion does not apply to
liability protected under Employee Benefit Administration Liability.
M. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages or
fines or other damages imposed primarily for the sake of example and by way of
punishing the Protected Party, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or pay
damages for a Claim, action or judgment for punitive or exemplary damages.
N. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by the
intentional conduct of a Protected Party with willful and conscious disregard of the
rights or safety of other or with malice. However, where the Protected Party did
not authorize, ratify, participate in, consent to or have knowledge of such conduct
by its past or present Employee, elected or appointed official or volunteer and the
claim against the Protected Party is based solely on its vicarious liability arising
from its relationship with such Employee, elected or appointed official or volunteer,
this exclusion does not apply to that Protected Party.
O. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of any violation of state or federal antitrust or restraint -of -trade laws.
P. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of:
(i) the adoption or administration of any ordinance, resolution or regulation; or
(ii) the approval or disapproval of any land -use entitlement including but not
limited to general plan amendments, zoning amendments, conditional -use
Memorandum of Liability Coverage Page 16 of 25 July 1, 2011 —July 1, 2012
permits, tract maps, development agreements, owner -participation
agreements, or disposition -and -development agreements; or
(iii) the approval or disapproval of any rent control ordinance, outdoor advertising
ordinance, or adult bookstore ordinance; or
(iv) the approval or disapproval of the operation of a medical marijuana
dispensary, any ordinances governing that activity and any and all
enforcement efforts.
This exclusion shall not apply to claims of neglect or failure to enforce any law.
Q. Any Claim, Suit, liability, alleged liability, loss, cost, or expense including Tort
Liability:
(i) Arising out of or as a consequence of an actual or alleged breach of any
contract or agreement;
(ii) For any amount actually or allegedly due under the terms of any contract or
agreement; or
(iii) Arising out of or as a consequence of the failure, refusal, or inability of a
Protected Party or anyone acting on behalf of a Protected Party to enter
into or renew any contract or agreement.
However, this Exclusion P. shall not apply to Tort Liability imposed by law for
Damages caused by, arising out of, or as a consequence of failure or delay by a
Protected Party or anyone acting on behalf of a Protected Party to fully perform
any duties or obligations under any contract or agreement.
As used in this Exclusion P., the term "contract or agreement' shall include but not
be limited to a Protected Contract or Limited Protected Contract.
R. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for declaratory,
injunctive, equitable or other relief, writs of mandate or prohibition or other
prerogative writs, or other relief not seeking Damages. This includes any expense
or cost incurred by a Protected Party arising from the cost of reasonable
accommodation of any disabled person, including any Employee.
S. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Personal
Injury or Broadcast/Publication Injury directly or indirectly caused by or arising
out of any:
(i) Oral or written publication of material, if done by or at the direction of the
Protected Party with knowledge of its falsity;
(ii) Oral or written publication of material whose first publication took place
before the beginning of the Protection Period; or
(iii) Act, omission, or offense committed by a Protected Party with actual malice.
T. Any liability for which the Protected Party is obligated to pay damages by reason
of liability assumed in a contract or agreement. This Exclusion does not apply to
liability for Bodily Injury or Property Damage:
Memorandum of Liability Coverage Page 17 of 25 July 1, 2011— July 1, 2012
(i) Assumed in a contract or agreement that is a Protected Contract or Limited
Protected Contract; or
(ii) That the Protected Party would have independent of a written contract or
agreement.
U. Any Claim or Suit by a Member against a Protected Party, except that this
section shall not apply to a Claim or Suit brought against the Authority.
V. Any Claim or Suit by a Member against another Member.
W. Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon or
arising out of:
(i) Loss of, loss of use of, injury to, destruction of, diminution of value of,
disappearance of, or costs of recovery of any money or securities, or any
financial loss or default;
(ii) Refunds of taxes, fees, or assessments;
(iii) The issuance, management of proceeds or repayment of bonds, notes or other
debt instruments by any Member or any agent acting on behalf of such
Member; or
(iv) The purchase, transfer, or sale of any securities by any Member or agent
acting on behalf of such Member.
X. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Public
Officials Errors and Omissions Liability based upon or arising out of:
(i) Liability of any Protected Party arising out of estimates of probable costs or
cost estimates being exceeded or for faulty preparation of bid specifications or
plans including liability for mechanic's lien claims, stop notice claims, change
order claims, site differential claims, or similar claims for the value of services
or materials provided; this exclusion extends to such claims, however
denominated, including claims of breach of oral or written contract, third
party beneficiary claims, quantum meruit claims, and/or open account claims;
(ii) Any Protected Party obtaining remuneration or financial gain to which the
Protected Party is or was not legally entitled;
(iii) Liability assumed by a Protected Party in a contract or agreement, but this
exclusion does not apply to liability for Damages that the Protected Party
would have independent of the contract or agreement; or
(iv) Willful violation of penal code or ordinance committed by or with the
knowledge or consent of any Protected Party.
Y. Under Employment Practices Injury, any Claim, Suit, liability, alleged liability,
loss, cost, or expense that:
(i) Constitutes benefits due or to become due or the equivalent value of such
benefits, including but not limited to perquisites, fringe benefits, payments in
connection with an employee benefits plan, or any other payment other than
Memorandum of Liability Coverage Page 18 of 25 July 1, 2011 — July 1, 2012
salary or wages to or for the benefit of an Employee arising out of the
employment relationship;
(ii) Is representative of back salary either unpaid in whole or part or paid at an
improper rate to an Employee by the Member;
(iii) Is based upon, arises from, or is in consequence of the employment
reinstatement of the claimant by the Member or the continued employment of
the claimant;
(iv) Is based upon, arises from, or is a consequence of an Occurrence that began
prior to this Memorandum's Protection Period;
(v) Constitutes front pay, future damages or other future economic relief or the
equivalent thereof, if the Member is ordered to reinstate the Employee
pursuant to a judgment or other final adjudication, but fails to do so; or
(vi) Is based upon, arises from or is in consequence of an actual or alleged
violation of the responsibilities, obligations or duties imposed by the
Employee Retirement Income Security Act of 1974, the Fair Labor Standards
Act, the National Labor Relations Act, the Worker Adjustment and Retraining
Notification Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, the Occupational Safety and Health Act, rules or regulations
promulgated there under and amendments thereto or similar provisions of any
federal, state, or local statutory law or common law.
However, with respect to the exclusions listed in items (i) through (vi) immediately
above, no fact pertaining to or knowledge possessed by any Protected Party shall
be imputed to any other Protected Party to determine if protection is available
under this Memorandum.
Z. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Employee
Benefit Administration Liability based upon or arising out of:
(i) Any dishonest, fraudulent, criminal or malicious act, libel, slander,
discrimination, or humiliation;
(ii) Failure of performance of contract by an insurer;
(iii) Failure of any investment plan to perform as represented by a Protected
Party;
(iv) Advice given by a Protected Party to an Employee to participate or not
participate in subscription plans; or
(v) The inability of any Employee Benefits Program to meet its obligations due
to insolvency or inadequacy of funding.
AA. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for termination of
a City Manager's employment based upon or arising out of:
(i) Termination for Cause;
(ii) Lack of a duly executed Waiver; or
(iii) Lack of a duly executed Certification.
Memorandum of Liability Coverage Page 19 of 25 July 1, 2011— July 1, 2012
5. CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Protected Party's
property and operations at any time. Neither the Authority's right to make inspections
nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of
or for the benefit of the Protected Party or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulations. The Authority may examine and audit the Protected Party's books and
records at any time during the Protection Period and extensions thereof and within three
years after the final termination of this Program, as far as they relate to the subject
matter of this Memorandum.
B. Severability of Interest
The term Protected Party is used severally and not collectively, and the protection
afforded applies to each Protected Party against whom a Claim is made as if a separate
Memorandum were issued to it, but the inclusion herein of more than one Protected
Party shall not operate to increase the per Member Protection Limit.
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
(i) In the event of any Occurrence, written notice containing particulars
sufficient to identify the Protected Party and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and the
names and addresses of the injured and of available witnesses, shall be given
by or for the Protected Party to the Authority's Claims Administrator as
soon as practicable.
(ii) If a Claim is made against a Protected Party, the Protected Party shall
immediately forward to the Authority's Claims Administrator every demand,
notice, summons or other process received by the Protected Party or the
Protected Party's representative.
(iii) The Authority's Claims Administrator will review the Claim, undertake
whatever investigation is indicated, and take appropriate action, depending on
the circumstances. A Claim may be returned to claimant as "insufficient," if
it does not contain minimum and essential information about the incident or
the identity of the claimant. A Claim may also be returned as "late," if the
prescribed time for filing has been exceeded. The Claims Administrator may
request that the Member reject the Claim, or take no action until further
notice, or such actions may be taken by the Claims Administrator if claims
handling authority has been delegated to the Authority by the Member.
(iv) The Protected Party shall cooperate with the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of Suits, and
in enforcing any right of contribution or indemnity against any person or
organization who may be liable to the Protected Party because of injury or
damage with respect to which protection, including any Defense obligation, is
Memorandum of Liability Coverage Page 20 of 25 July 1, 2011 — July 1, 2012
afforded under this Memorandum; and the Protected Party shall not, except
at the Protected Party's own cost, voluntarily make any payment, assume
any obligation or incur any expense. No Claim shall be settled without the
prior written consent of the Authority, and the Authority shall not be
required to contribute to any settlement to which it has not consented.
D. Other Protection
If collectible insurance or any other coverage or protection with any insurer, any
permissibly self-insured general employer, joint powers insurance authority or any other
source is available to the Protected Party covering a loss also protected hereunder
(whether on a primary, excess or contingent basis), the protection hereunder (including
any Defense obligation) shall be in excess of, and shall not contribute with, such
insurance or other coverage or protection, provided that this clause does not apply with
respect to any insurance purchased by a Protected Party specifically to be in excess of
this Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such insurance,
coverage, or other protection, unless agreed to by the Member through a written
agreement approved by the Authority through the issuance of an evidence of coverage
letter prior to a loss.
E. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance with the
Joint Powers Agreement and Bylaws of the Authority.
F. Changes
Notice to any agent or knowledge possessed by any agent of the Authority or by any
other person shall not effect a waiver of or a change in any part of this Memorandum,
nor shall the terms of this Memorandum be waived or changed, except by a written
addendum issued by the Authority to form a part of this Memorandum.
G. Subrogation
The Authority shall reserve the right to subrogate for any payments made hereunder and
to assume the Protected Party's recovery rights. The Protected Party shall do nothing
after loss to prejudice such rights and shall do everything necessary to secure such rights.
The Protected Party may waive subrogation rights, but only through written agreement
executed before the Occurrence giving rise to the loss. The Authority shall have
standing to seek subrogation recovery in its own name or in the name of the Protected
Party, and the Protected Party shall cooperate with and assist the Authority in pursuing
such recovery, including assigning its right to recover subrogated amounts, and if
necessary executing a written agreement to effect such assignment. Any amount so
recovered shall be apportioned as follows:
(i) The Authority shall be reimbursed to the extent of all payment under this
Memorandum. Any remaining balance shall be applied to reimburse the
Protected Party;
Memorandum of Liability Coverage Page 21 of 25 July 1, 2011 —July 1, 2012
(ii) The expenses of such recovery proceedings shall be apportioned in the ratio of
respective recoveries. If there is no recovery in proceedings conducted solely by
the Authority, the Authority shall bear the expenses thereof.
H. Assignment
Assignment of interest under this Memorandum shall not bind the Authority until its
consent is endorsed hereon; if, however, the Member shall be adjudged bankrupt or
insolvent, such protection and Defense obligations as are afforded by this Memorandum
shall apply (a) to Member's legal representative, as the Member, but only while acting
within the scope of said representative's duties as such, and (b) with respect to the
property of the Member, to the person having proper temporary custody thereof, as a
Protected Party, but only until the appointment and qualification of a legal
representative.
I. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms and
provisions of the Agreement creating the Authority, and in the event of any conflict
between the terms and provisions of said Agreement and this Memorandum, the terms
and provisions of the Agreement shall control.
Appeal of Disputes
No party is entitled to appeal or arbitrate claims under this Memorandum other than the
Member. Specifically, Employees are not intended to be third party beneficiaries of this
agreement and shall have no right to bring an action against the Authority for a
declaration of rights to protection under this Memorandum. The sole remedy of any
Employee shall be the Employee's right to defense or indemnity against the employing
Member under the provisions of the California Government Code.
Any disputes concerning coverage, protection, Defense obligations, or procedures of the
Program, as interpreted by the Authority's staff, shall be appealed to the Authority's
Executive Committee in accordance with the following procedures.
(i) A written notice that a Claim is not covered by the Memorandum will
normally be provided to the Member by the Claims Administrator. A
Member may request any determination of a lack of coverage made by the
Claims Administrator to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of the
written notice from the Claims Administrator.
(ii) Upon request, the Chief Executive Officer shall review a determination of a
lack of coverage made by the Claims Administrator or Authority staff and
shall send to the Member a written determination of coverage.
(iii) If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees. Appeals
must be in writing within 90 days of the date of the Chief Executive Officer's
written decision. The appeal request must state why the Member disagrees
Memorandum of Liability Coverage Page 22 of 25 July 1, 2011— July 1, 2012
with the denial, and the Member should present any information that may
have a bearing on the ultimate determination of coverage.
(iv) The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall notify
the Member in advance of the meeting at which its appeal will be presented.
(v) If the Member would like to personally address the Appeals Committee, the
Member or the Member's representative may attend the meeting and speak
to the issue.
(vi) The Appeals Committee may refer the appeal to the Coverage Committee and
consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's decision
in writing.
(vii) Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
Occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in this paragraph
J., upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
If a Member disputes a coverage issue, then, during the course of the administrative and
arbitration proceedings provided herein, the Authority shall defend the Claim against the
Member and have the right to control any settlement of that Claim, subject to the right
of the Authority to recover from the Member any amounts paid out by the Authority
for such defense or settlement which are finally determined by the Appeals Committee,
or as a result of the Binding Arbitration Process, not to be owed by the Authority under
the Program.
K. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5.J. Appeal of
Disputes and disagrees with the final determination of the Appeals Committee, the
Member may request consideration of the coverage issue through the Authority's
Binding Arbitration Process.
The Arbitration process shall be as follows:
(i) Following a decision by the Appeals Comrnittee, the appealing Member shall
notify the Chief Executive Officer in writing, within 30 days of the Appeals
Committee's final decision, that it wishes to participate in Binding Arbitration
and shall submit a non-refundable $1,000 arbitration appeal fee. The written
notice shall specify the grounds for the arbitration.
Memorandum of Liability Coverage Page 23 of 25 July 1, 2011 — July 1, 2012
(ii) Following payment of the arbitration appeals fee, the name of each Member,
other than the appealing Member and the Members represented on the
Appeals Committee, shall be placed in an unmarked envelope. Each envelope
shall be placed in a box and eleven envelopes shall be drawn by the Chief
Executive Officer. A representative of the appealing Member may be present
at the drawing.
(iii) The City Managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their City Managers shall
be given in writing to the appealing Member.
(iv) The appealing Member shall have the right to strike two or less names from
the pool for any reason which shall not be disclosed. The Authority shall
have the right to strike two or less names from the pool for any reason which
shall not be disclosed. The appealing Member and the Authority must strike
names within five business days of the drawing. The right of either party to
strike names shall lapse at 5:00 PM on the fifth day following the drawing.
Notice of names stricken by either party shall be given in writing to the other
party prior to 5:00 PM on the fifth day following the drawing.
(v) The remaining City Managers shall be contacted by the Chief Executive
Officer to determine their willingness to serve on the arbitration panel. If
more than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be the
arbitration panel and they shall be disclosed in writing to the appealing
Member.
(vi) If only five are willing to serve, they shall be the arbitration panel.
(vii) If fewer than five are willing to serve, the name of each member not drawn in
the previous selection drawing shall be placed in an unmarked envelope, put
in a box, and four envelopes shall be drawn for each arbitration panel position
needed to have a five -member panel. A representative of the appealing
Member may be present at the drawing. The names drawn shall be disclosed
to the appealing Member who may reject, for any reason which shall not be
disclosed, one name for each four names drawn. The Authority may also
reject one name for each four names drawn and shall not disclose the reason.
Names rejected by the appealing Member and the Authority must be rejected
within 48 -hours of the drawing. The right to reject names shall lapse 48 -hours
following the drawing.
(viii) The City Managers of the Members remaining shall be contacted by the
Chief Executive Officer to determine their willingness to serve on the
arbitration panel. The names of those willing to serve shall be placed in
unmarked envelopes, put in a box, and the number necessary to fill out the
arbitration panel shall be drawn by the Chief Executive Officer and disclosed
in writing to the appealing Member. A representative of the appealing
Member may be present at the drawing.
Memorandum of Liability Coverage Page 24 of 25 July 1, 2011 — July 1, 2012
(ix) This process shall be repeated until five members are obtained for the
arbitration panel.
(x) The arbitration panel members shall be compensated at the rate of $125 per
half-day or portion thereof. If a panel member is required to stay away from
home overnight, lodging shall be paid by the Authority. Necessary meals
shall be provided for all panel members. Mileage costs shall be reimbursed by
the Authority at its standard rate.
(xi) The cost of the arbitration panel shall be borne by the Authority. The cost of
presentation by the appealing Member, including preparation, exhibits,
attorneys, and all other costs of the Member shall be paid by the Member.
(xii) The arbitration panel may request legal counsel that shall be selected by the
Chief Executive Officer and paid for by the Authority. Legal counsel shall
not be the counsel for the Authority that has advised the staff and Executive
Committee. However, counsel for the Authority may participate in or make
the presentation to the arbitration panel on behalf of the Authority, as
requested by the Chief Executive Officer.
(xiii) The parties to the arbitration shall not be governed by formal rules of
evidence.
(xiv) The arbitration panel's decision shall be final and binding on the Member and
the Authority. Decisions of the arbitration panel shall be by majority vote.
(xv) The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future arbitration
panels for precedent.
Memorandum of Liability Coverage Page 25 of 25 July 1, 2011 —July 1, 2012
Memorandum of Workers' Compensation and
Employer's Liability Coverage
Issued to the City of Rosemead
Effective July 1, 2011— July 1, 2012
Administered by the California Joint Powers Insurance Authority
j Effective July 1, 2011— July 1, 2012, as a joint protection program authorized pursuant to
Article I I(a) of the California JPIA joint powers agreement
CALIFORNIA
Providing Innovative Risk Management Solutions For Our Public Agency Partners v - I - A
MEMORANDUM OF WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS:
Workers' Compensation: Statutory
Employer's Liability: $10,000,000 per occurrence
PROTECTION PERIOD: From July 1, 2011 at 12:01 a.m. Pacific Time until July 1,
2012 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South El Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
M
California JPIA
President
1.
2.
3.
4.
5.
INTRODUCTION
COVERAGE
A. Workers' Compensation
B. Employer's Liability
C. Other Coverages
DEFINITIONS
EXCLUSIONS
CONDITIONS AND RESPONSIBILITIES
ii
1
2
2
3
6
6
8
9
MEMORANDUM OF WORKERS' COMPENSATION
AND EMPLOYER'S LIABILITY
COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of workers' compensation and employer's liability are
administered by the Authority and shared by its Members pursuant to the Joint Powers
Agreement creating the Authority under the provisions of §6500 et seq. of the
Government Code.
As provided in §990.8 of the Government Code, pooling of losses in this Program is not
insurance. The sole duty of the Authority is to administer the Program adopted by the
Members. The Authority will pay on behalf of members the liability only for Claims or
losses which are pooled under the terms of this Memorandum and the Joint Powers
Agreement.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors at a regular meeting or at a special
meeting called for that purpose.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Member or
the Authority. Any controversy or dispute arising out of or related to an interpretation or
breach of this Memorandum shall be settled in accordance with the appeals procedures
as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. Definitions.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 1 of 15 July 1, 2011 — July 1, 2012
2. COVERAGE
In consideration for Member's payment of the required primary deposit for participation
in this Program, and subject to all terms and conditions set forth in this Memorandum,
the Program agrees to provide the following protection:
A. Workers' Compensation
The Program will pay on behalf of the Member workers' compensation benefits
for bodily injury by accident or occupational disease, including resulting death,
deemed compensable under the laws of the State of California, and sustained by
an Employee.
The Program will provide for the administration and defense of Claims for
workers' compensation benefits, including investigation, payment of benefits,
compliance with reporting requirements for Claims administration, and
settlement. The Program, at its discretion, will choose and manage service
providers necessary to fulfill its objectives; including third party Claims
administrators, medical management providers, defense attorneys, investigators,
etc.
Coverage is subject to the following conditions:
Bodily injury by accident must arise out of and in the course of
employment by the Member and must occur during the Protection
Period.
2. Occupational disease must be caused by or aggravated by the conditions
of employment, and the exposure must occur during the Protection
Period.
Bodily injury or occupational disease from presumptive causations
contained in Labor Code §3212 et seq. or other California governmental
codes must occur during the Protection Period.
4. Coverage is limited to amounts the Member is legally liable to pay after
apportionment to pre-existing, concurrent or subsequent injuries or
illnesses as defined by law.
The Program will pay temporary disability, permanent disability and
death benefits at the statutory rates defined in the California Labor Code
(Labor Code Division 4, Part 2, Chapter 2, Articles 3, 4, 4.5 and 5). If the
Member pays the Employee for periods of temporary disability per a
salary continuation plan under a collective bargaining agreement,
memorandum of understanding or other employment agreement, the
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 2 of 15 July 1, 2011 — July 1, 2012
Program will reimburse the Member at the statutory temporary disability
benefit rate for those periods paid by the Member.
6. If the Employee is eligible to receive salary continuation in lieu of
temporary disability under Labor Code §4850 et seq., the Program will
reimburse the Member at the statutory rate for temporary disability
benefits that the Member would be obligated to pay if Labor Code §4850
et seq. did not apply.
7. Employees on temporary assignment or traveling for Member business
outside the State of California who sustain an injury or occupational
disease are covered for benefits under this Program. Benefits will be paid
on behalf of the Member up to the amount payable under the workers'
compensation laws of the State of California, regardless of the jurisdiction
selected by the Employee.
B. Employer's Liability
The Program will indemnify the Member, where permitted by law, for Loss
arising from bodily injury or occupational disease, including resulting death.
1. Coverage is subject to the following conditions:
(a). Bodily injury by accident must arise out of and in the course of
employment by the Member. Occupational disease must be caused
by or aggravated by the conditions of employment. The accident
or period of exposure must occur during the Protection Period.
Bodily injury does not include emotional distress, anxiety,
discomfort, inconvenience, depression, dissatisfaction or shock to
the nervous system, unless caused by either a manifest physical
injury or a disease with physical dysfunction or condition resulting
in treatment by a licensed physician or surgeon.
(b). Bodily injury or occupational disease suffered by Employee is not
covered by workers' compensation law.
(c). The Employee's duties are necessary or incidental to work
conducted by the Member.
(d). The Member timely and fully pursues all available remedies for
contribution or indemnification from any and all other available
sources.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 3 of 15 July 1, 2011 — July 1, 2012
(e). The original Claim or Suit and related legal actions for damages
are brought in the State of California or under the laws of the State
of California.
2. Subject to the foregoing provision of B. Employer's Liability, the
Program shall:
(a). Indemnify the Member for all sums legally payable as damages
under this section. Damages include:
Amounts for which the Member is liable to a third party by
reason of a Claim, Suit or proceeding against the Member
to recover damages suffered by the third party; or
ii. Damages for care and loss of services of an injured
employee of the Member; or
iii. Damages for consequential bodily injury to a spouse, child,
parent, or sibling of the Employee, provided that such
damages are the direct consequence of injury or disease
arising out of and in the course of the Employee's
employment by Member.
iv. Injury or disease to an Employee arising out of and in the
course of employment, claimed against the Member in a
capacity other than as Employer.
(b). Defend, at the Program's expense, any Claim, proceeding or Suit
against the Member for damages payable under this section. The
Program has the right to investigate and settle these Claims,
proceedings and Suits. The Program has no duty to defend any
Claim, proceeding or Suit that is not covered by this Program.
The Program has no duty to defend or continue defending after
the Program has paid its maximum amount of coverage.
(c). Pay the following costs, in addition to the other amounts payable
under this section, as part of any Claim, proceeding or Suit the
Program defends:
ii.
Reasonable expenses incurred at the Program's expense,
but not loss of earnings;
Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to twice the maximum amount
of coverage under this Program;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 4 of 15 July 1, 2011— July 1, 2012
iii. Litigation costs taxed against the Member;
iv. Interest on a judgment as required by law; and
V. Other expenses incurred by the Program in discharging the
obligation of the Program or its members under this
section.
The following are excluded from coverage under this section:
(a). Damages arising out of the actual or alleged discharge; coercion;
criticism; demotion; evaluation; reassignment; discipline;
defamation; harassment; humiliation; discrimination against;
termination of; wrongful dismissal or discharge; breach of any oral
or written employment contract or quasi -employment contract;
misrepresentation; violation of employment discrimination laws;
workplace sexual or other harassment; wrongful failure to employ
or promote; wrongful discipline; negligent evaluation; wrongful
demotion; wrongful deprivation of a career opportunity;
employment-related invasion of privacy, defamation or wrongful
infliction of emotional distress; or any other personnel practices,
policies, acts or omissions, of any Employee, including Claims
brought under Americans with Disabilities Act, Family Medical
Leave Act, Pregnancy Disability Leave Act, Equal Opportunities
Act, Fair Employment and Housing Act, Fair Labor Standards Act;
or any other such State or Federal act;
(b). Any obligation of any type that is imposed by a workers'
compensation, occupational disease, unemployment compensation,
occupational health and safety law, or disability benefits law, or
any similar law;
(c). Damages for any injury or disease for any Employee engaged in
work subject to the Longshore and Harbor Workers' Compensation
Act, the Outer Continental Shelf Lands Act, the Defense Base Act,
the Jones Act, the Federal Employers Liability Act, or any other
Federal workers' compensation or occupational disease law, or any
international workers' compensation law;
(d). Punitive or exemplary damages, however characterized, or
damages, fines or penalties imposed under the Migrant and
Seasonal Agricultural Worker Protection Act, or for violation of
any other Federal, state, county or other law, regulation or
ordinance;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 5 of 15 July 1, 2011 —July 1, 2012
C. Other Coverages
1. Defense of Serious & Willful Misconduct Allegation (Labor Code §4553)
or Alleged Discrimination Prohibited by Labor Code § 132a.
The Authority may, at its own discretion, elect to defend a Member
against Claims alleging Serious & Willful Misconduct or a violation of
§ 132a. Such defense will be provided by an attorney assigned by the
Authority. Any penalties awarded for Serious & Willful Misconduct or
violation of § 132a will be the responsibility of the Member. The
Member may elect to defend itself with counsel of its own choosing, at its
own expense.
3. DEFINITIONS
A. Authority means the California Joint Powers Insurance Authority.
B. Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
C. Claim means a notice, demand, or Suit against a Member to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing or any other administrative or regulatory agency.
D. Damages means compensation in money recovered by a party for loss or
detriment it has suffered. Damages does not include defense of Claims or any
punitive, exemplary or multiplied damages or non -monetary relief or redress or
injunctive relief.
E. Defense Costs means all fees and expenses incurred in connection with the
administration, investigation, defense, and appeal of a Claim covered hereunder,
including attorney fees, court costs, premiums for appeal bonds, and interest on
judgments accruing after the entry of judgment, and also shall include the costs of
any Claims administrator or defense counsel assigned by the Authority to
respond to any Claim on behalf of the Authority. Defense Costs shall not
include the office expenses of the Member, nor the salaries of employees or
officials of the Member, nor expenses of any Claims administrator engaged by
the Member. Defense Costs also do not include any fee or expense relating to
coverage issues between the Authority and any Member.
F. Discrimination means injury caused by or arising out of:
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 6 of 15 July 1, 2011 — July 1, 2012
Unlawful discrimination because of race, sex, color, age, religion, or
national origin, or membership in any similarly legally protected class; or
2. Violation of the discrimination prohibitions of the Americans with
Disabilities Act of 1990, any rules or regulations promulgated thereunder
and amendments thereto or similar provisions of any Federal, state, or
local statutory law or common law.
G. Employee includes any person falling within the definition of "employee" under
Labor Code Division 4, Chapter 2, Article 2, beginning with §3351. Volunteers
are considered employees under this Memorandum only if the Member has a
resolution in effect, and passed prior to the date of injury or illness at issue,
providing workers' compensation coverage to volunteers under Labor Code
§3363.5, and while performing specific functions in the course and scope of
authorized activities under the direction and control of the Member.
H. Loss means amounts actually paid by the Program for statutory workers'
compensation benefits, employer's liability Claims and allocated costs for
investigation, administration and defense of Claims under this Memorandum of
Coverage.
I. Member means the entity, including all of its departments and constituent
agencies, which has adopted a resolution to participate in the Program and
become a signatory to the Joint Powers Agreement creating the Authority as may
be amended from time to time, whose name appears on the Cover Page of this
Memorandum. Member includes any other agency for which the Member's
governing board or council acts as the governing board, and also includes any
commissions, agencies, districts, authorities, redevelopment agencies, boards, or
similar entities coming under the Member's direction and control. Member shall
include any other agency authorized by the Authority's Board of Directors. The
Member must be approved for self-insurance by the Office of Self Insurance
Plans and maintain its qualification for self-insurance during the Protection
Period.
Memorandum means this Memorandum of Workers' Compensation and
Employer's Liability Coverage authorized by the Joint Powers Agreement of the
Authority specifying the terms and conditions of the Program.
K. Occurrence means a single accident or event causing bodily injury to one or
more employees; or occupational disease sustained by one or more employees as
a result of an outbreak of the same communicable disease, or sudden and
accidental exposure to the same environmental hazard.
L. Program means the California Joint Powers Insurance Authority's Workers'
Compensation and Employer's Liability Program described by this
Memorandum and the Agreement of the Members creating the Authority. The
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 7 of 15 July 1, 2011 — July 1, 2012
Program is a fund created by the Members for the purpose of pooling self-
insured losses.
M. Protection Period means the time period shown on the Cover Page of this
Memorandum.
N. Suit means a civil proceeding in which a Member is named as a defendant or
cross-defendatit, or an arbitration proceeding or alternative -dispute resolution
proceeding to which a Member submits with the Authority's written consent.
4. EXCLUSIONS
This Memorandum, including any obligation to indemnify, defend or pay Defense
Costs, does not apply to:
A. The Member's obligation to pay salary in lieu of temporary disability benefits
under Labor Code §4850, except to the extent that the Member would be
obligated to pay temporary disability benefits in the absence of the mandate of
§4850.
B. The Member's obligations under Labor Code §4856 to provide health benefits.
C. Injury or disease to an Employee while knowingly employed in violation of law;
D. Injury or disease intentionally caused or aggravated by or at the direction of the
Member;
E. Penalties or fines imposed for violation of Labor Code 132a or Labor Code §4553
(Serious & Willful Misconduct);
F. Penalties or self-imposed benefit increases for violations of Labor Code §5814 et
seq. attributable to the Member's actions;
G. Damages arising out of, or in any way related to, operations with respect to which
the Member:
has violated or failed to comply with any workers' compensation law, or
any provision thereof, or
2. has rejected any workers' compensation law.
H. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages
or fines or other damages imposed primarily for the sake of example and by way
of punishing the Member, including liability of a Member to defend or pay
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 8 of 15 July 1, 2011— July 1, 2012
damages where the governing body thereof has elected to provide a defense or
pay damages for a Claim, action or judgment for punitive or exemplary damages.
I. Any liability for which the Member is obligated to pay damages by reason of
liability assumed in a contract or agreement.
5. CONDITIONS AND RESPONSIBILITIES
A. General Obligations
The Member agrees to abide by all employment, equal opportunity, anti-
discrimination, health and safety laws, statutes and regulations. It understands
that, among other obligations, it has a non -delegable duty to provide employees
with a safe place to work, and training in safe work practices. The Member
agrees to abide by all applicable wage and hour laws, collective bargaining
agreements, memoranda of understanding, and other statutes and regulations
regarding working conditions.
The Member agrees to immediately report every occupational injury or illness
which results in medical treatment, or any claim by an Employee for workers'
compensation benefits, to the Authority or the Authority's designated
administrator, but in no instance to cause the delay of such report of injury, illness
or claim more than five days after date of knowledge or as otherwise required by
Labor Code §6409.1. The Member agrees to give every employee a claim form
pursuant to Labor Code 5401 within one working day of receiving notice or
knowledge of a claim or potential claim. In the event of an injury or illness, the
Member agrees to provide first aid or arrange for appropriate immediate medical
care. The Member agrees to provide suitable temporary modified or alternate
duty whenever possible for employees with workers' compensation injuries, and
agrees to conduct interactive accommodation meetings as required by AB 2222.
B. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Member's
records, property and operations at any time. Neither the Authority's right to
make inspections, nor the making thereof, nor any report hereon 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 or healthful, or are
in compliance with any law, rule or regulations. The Authority may examine and
audit the Member's books and records at any time during the Protection Period
and extensions thereof, and within three years after the final termination of this
Program, as far as they relate to the subject matter of this Memorandum.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 9 of 15 July 1, 2011— July 1, 2012
C. Member's Duties in the Event of Occurrence, Claim or Suit
In the event of any Occurrence, written notice containing particulars
sufficient to identify the Member and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and
the names and addresses of the injured and of available witnesses, shall be
given by or for the Member to the Authority's claims administrator as
soon as practicable, but no later than required by statute or regulation.
2. If a Claim is made against a Member, the Member shall immediately
forward to the Authority's claims Administrator every demand, notice,
summons or other process received by the Member or the Member's
representative.
3. The Authority's claims Administrator will review the Claim, and under
the direction of the Authority, undertake the administration of the Claim,
including investigation, defense and settlement, as appropriate.
4. The Member shall cooperate with the Authority and, upon the
Authority's request, assist as appropriate in the resolution of the Claim,
including enforcing any right of contribution or indemnity against any
person or organization who may be liable to the Member because of
injury or damage to an Employee or Member property. The Member
shall not voluntarily make any payment, assume any obligation or incur
any expense.
D. Privacy and Confidentiality of Claim Records
All Claim records, including Claim files, examiners notes, medical reports,
subpoenaed records, correspondence, tapes and films, and whether electronic or
hard files, are the property of the Authority. Because these records may contain
confidential or private medical and/or psychological information related to
workers' compensation Claims administered by or on behalf of the Authority,
access to Claim files and the information contained therein is restricted to the
Authority and its agents and assignees, with the exception that the Member is
entitled to medical information limited to the diagnosis of the mental or physical
condition for which workers' compensation is being claimed and the treatment
provided for this condition, or what is necessary for the Member to have in order
to provide temporary or permanent modification or accommodation of the
employee's work duties.
E. Change in conditions
If a Member experiences a significant change in operations or conditions, the
Member shall notify the Authority as soon as practicable, and the Authority has
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 10 of 15 July 1, 2011— July 1, 2012
the right to an underwriting review and to collect additional primary deposits as
may be appropriate to reflect the added exposure to the Program. The additional
primary deposit must be paid within ninety days of notice.
F. Other Protection
If collectible insurance or any other coverage or protection with any insurer, self-
insured employer, joint powers authority or any other source, is available to the
Member covering a loss also protected hereunder (whether on a primary, excess
or contingent basis), the protection hereunder (including any Defense obligation)
shall be in excess of, and shall not contribute with, such insurance or other
coverage or protection, provided that this clause does not apply with respect to
any insurance purchased by a Member specifically to be in excess of this
Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such
insurance, coverage, or other protection.
G. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance
with the Joint Powers Agreement and Bylaws of the Authority.
H. Changes to Memorandum
Notice to any agent or knowledge possessed by any agent of the Authority or by
any other person shall not effect a waiver of or a change in any part of this
Memorandum, nor shall the terms of this Memorandum be waived or changed,
except by a written addendum issued by the Authority to form a part of this
Memorandum.
Subrogation and Recovery
The Authority shall be subrogated to the extent of any payment hereunder to all
the Member's rights of recovery thereof. This section applies to all recoveries
from third parties or governmental agencies, including recoveries for state
mandate reimbursements pursuant to SB 90 or other statute or regulation.
The Member shall do nothing after loss to prejudice such rights and shall do
everything necessary to secure such rights. The Authority shall have standing to
seek subrogation recovery in its own name or in the name of the Member, and
the Member shall cooperate with and assist the Authority in pursuing such
recovery, including assigning its right to recover subrogated amounts, and if
necessary, executing a written agreement to effect such assignment. Any amount
so recovered shall be credited to the workers' compensation file.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 11 of 15 July 1, 2011 — July 1, 2012
J. Assignment
There is no assignment of interest permitted under this Memorandum.
K. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms
and provisions of the Agreement creating the Authority, and in the event of any
conflict between the terms and provisions of said Agreement and this
Memorandum, the terms and provisions of the Agreement shall control.
L. Appeal of Disputes
Should a dispute arise between the Member and the Program, the following
conditions will apply:
1. No party is entitled to appeal or arbitrate Claims under this Memorandum
other than the Member.
2. Any disputes concerning coverage, protection, Defense obligations, or
procedures of the Program, as interpreted by the Authority's staff, shall
be appealed to the Authority's Executive Committee in accordance with
the following procedures.
3. A Member may request any determination of a lack of coverage made by
the Authority to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of
notice from the Claims Administrator.
4. Upon request, the Chief Executive Officer shall review a determination of
a lack of coverage made by the Claims Administrator or Authority staff
and shall send to the Member a written determination of coverage.
5. If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees.
Appeals must be in writing within 90 days of the date of the Executive
Director's written decision. The appeal request must state why the
Member disagrees with the denial, and the Member should present any
information that may have a bearing on the ultimate determination of
coverage.
6. The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 12 of 15 July 1, 2011 — July 1, 2012
notify the Member in advance of the meeting at which its appeal will be
presented.
7. If the Member would like to personally address the Appeals Committee,
the Member or the Member's representative may attend the meeting and
speak to the issue.
8. The Appeals Committee may refer the appeal to the Coverage Committee
and consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's
decision in writing.
9. Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in section,
upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
10. If a Member disputes a coverage issue, then, during the course of the
administrative and arbitration proceedings provided herein, the Authority
shall defend the Claim against the Member and have the right to control
any settlement of that Claim, subject to the right of the Authority to
recover from the Member any amounts paid out by the Authority for
such defense or settlement which are finally determined by the Appeals
Committee, or as a result of the Binding Arbitration Process, not to be
owed by the Authority under the Program.
M. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5L.
Appeal of Disputes and disagrees with the final determination of the Appeals
Committee, the Member may request consideration of the coverage issue through
the Authority's binding arbitration process.
The Arbitration process shall be as follows:
1. Following a decision by the Appeals Committee, the appealing Member
shall notify the Chief Executive Officer in writing, within thirty days of
the Appeals Committee's final decision, that it wishes to participate in
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 13 of 15 July 1, 2011— July 1, 2012
Binding Arbitration and shall submit a non-refundable $1,000 arbitration
appeal fee. The written notice shall specify the grounds for the arbitration.
2. Following payment of the arbitration appeals fee, the name of each
Member, other than the appealing Member and the Members
represented on the Appeals Committee, shall be placed in an unmarked
envelope. Each envelope shall be placed in a box and eleven envelopes
shall be drawn by the Chief Executive Officer. A representative of the
appealing Member may be present at the drawing.
3. The managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their managers shall
be given in writing to the appealing Member.
4. The appealing Member shall have the right to strike two or less names
from the pool for any reason which shall not be disclosed. The Authority
shall have the right to strike two or less names from the pool for any
reason which shall not be disclosed. The appealing Member and the
Authority must strike names within five business days of the drawing.
The right of either party to strike names shall lapse at 5:00 PM on the fifth
business day following the drawing. Notice of names stricken by either
party shall be given in writing to the other party prior to 5:00 PM on the
fifth day following the drawing.
5. The remaining managers shall be contacted by the Chief Executive Officer
to determine their willingness to serve on the arbitration panel. If more
than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be
the arbitration panel and they shall be disclosed in writing to the appealing
Member.
6. If only five are willing to serve, they shall be the arbitration panel.
If fewer than five are willing to serve, the name of each Member not
drawn in the previous selection drawing shall be placed in an unmarked
envelope, put in a box, and four envelopes shall be drawn for each
arbitration panel position needed to complete a five -Member panel. A
representative of the appealing Member maybe present at the drawing.
The names drawn shall be disclosed to the appealing Member who may
reject, for any reason which shall not be disclosed, one name for each four
names drawn. The Authority may also reject one name for each four
names drawn and shall not disclose the reason. Names rejected by the
appealing Member and the Authority must be rejected within 48 hours of
the drawing. The right to reject names shall lapse 48 hours following the
drawing.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 14 of 15 July 1, 2011— July 1, 2012
8. The managers or chief executive officers of the Members remaining shall
be contacted by the Chief Executive Officer to determine their willingness
to serve on the arbitration panel. The names of those willing to serve shall
be placed in unmarked envelopes, put in a box, and the number necessary
to fill out the arbitration panel shall be drawn by the Chief Executive
Officer and disclosed in writing to the appealing Member. A
representative of the appealing Member may be present at the drawing.
9. This process shall be repeated until five Members are obtained for the
arbitration panel.
10. The arbitration panel Members shall be compensated at the rate of $125
per half-day or portion thereof. If a panel Member is required to stay
away from home overnight, lodging shall be paid by the Authority.
Necessary meals shall be provided for all panel Members. Mileage costs
shall be reimbursed by the Authority at its standard rate.
11. The cost of the arbitration panel shall be borne by the Authority. The
cost of presentation by the appealing Member, including preparation,
exhibits, attorneys, and all other costs of the Member shall be paid by the
Member.
12. The arbitration panel may request legal counsel that shall be selected by
the Chief Executive Officer and paid for by the Authority. Legal counsel
shall not be the counsel for the Authority that has advised the staff and
Executive Committee. However, counsel for the Authority may
participate in or make the presentation to the arbitration panel on behalf of
the Authority, as requested by the Chief Executive Officer.
13. The parties to the arbitration shall not be governed by formal rules of
evidence.
14. The arbitration panel's decision shall be final and binding on the Member
and the Authority. Decisions of the arbitration panel shall be by majority
vote.
15. The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future
arbitration panels for precedent.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 15 of 15 July 1, 2011 — July 1, 2012
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Memorandum of Workers' Compensation and
Employer's Liability Coverage
Issued to the City of Rosemead
Effective July 1, 2010—July 1, 2011
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July 1, 2010— July 1, 2011, as a joint protection program authorized pursuant to
Article 1 I (a) of the California JPIA joint powers agreement
Pr viding Innovative Risk Management Solations For Our Public Agency Partners
CALIFORNIA
COVER PAGE
MEMORANDUM OF WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS:
Workers' Compensation: Statutory
Employer's Liability: $10,000,000 per occurrence
PROTECTION PERIOD: From July 1, 2010 at 12:01 a.m. Pacific Time until July 1,
2011 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South El Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
CalifomiaJPIA
President
1.
2.
3.
4.
5.
TABLE OF CONTENTS
INTRODUCTION
COVERAGE
A. Workers' Compensation
B. Employer's Liability
C. Other Coverages
DEFINITIONS
EXCLUSIONS
CONDITIONS AND RESPONSIBILITIES
0
2
2
3
6
6
8
9
MEMORANDUM OF WORKERS' COMPENSATION
AND EMPLOYER'S
t
COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of workers' compensation and employer's liability are
administered by the Authority and shared by its Members pursuant to the Joint Powers
Agreement creating the Authority under the provisions of §6500 et seq. of the
Government Code.
As provided in §990.8 of the Government Code, pooling of losses in this Program is not
insurance. The sole duty of the Authority is to administer the Program adopted by the
Members. The Authority will pay on behalf of members the liability only for Claims or
losses which are pooled under the terms of this Memorandum and the Joint Powers
Agreement.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors at a regular meeting or at a special
meeting called for that purpose.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Member or
the Authority. Any controversy or dispute arising out of or related to an interpretation or
breach of this Memorandum shall be settled in accordance with the appeals procedures
as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. Definitions.
2. COVERAGE
In consideration for Member's payment of the required primary deposit for participation
in this Program, and subject to all terms and conditions set forth in this Memorandum,
the Program agrees to provide the following protection:
A. Workers' Compensation
The Program will pay on behalf of the Member workers' compensation benefits
for bodily injury by accident or occupational disease, including resulting death,
deemed compensable under the laws of the State of California, and sustained by
an Employee.
The Program will provide for the administration and defense of Claims for
workers' compensation benefits, including investigation, payment of benefits,
compliance with reporting requirements for Claims administration, and
settlement. The Program, at its discretion, will choose and manage service
providers necessary to fulfill its objectives; including third party Claims
administrators, medical management providers, defense attorneys, investigators,
etc.
Coverage is subject to the following conditions:
1. Bodily injury by accident must arise out of and in the course of
employment by the Member and must occur during the Protection
Period.
2. Occupational disease must be caused by or aggravated by the conditions
of employment, and the exposure must occur during the Protection
Period.
3. Bodily injury or occupational disease from presumptive causations
contained in Labor Code §3212 et seq. or other California governmental
codes must occur during the Protection Period.
4. Coverage is limited to amounts the Member is legally liable to pay after
apportionment to pre-existing, concurrent or subsequent injuries or
illnesses as defined by law.
5. The Program will pay temporary disability, permanent disability and
death benefits at the statutory rates defined in the California Labor Code
(Labor Code Division 4, Part 2, Chapter 2, Articles 3, 4, 4.5 and 5). If the
Member pays the Employee for periods of temporary disability per a
salary continuation plan under a collective bargaining agreement,
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 2 of 16 July 1, 2010 — July 1, 2011
memorandum of understanding or other employment agreement, the
Program will reimburse the Member at the statutory temporary disability
benefit rate for those periods paid by the Member.
1,
If the Employee is eligible to receive salary continuation in lieu of
temporary disability under LaboriCode §4850 et seq., the Program will
reimburse the Member at the statutory rate for temporary disability
benefits that the Member would be obligated to pay if Labor Code §4850
et seq. did not apply.
Employees on temporary assignment or traveling for Member business
outside the State of California who sustain an injury or occupational
disease are covered for benefits under this Program. Benefits will be paid
on behalf of the Member up to the amount payable under the workers'
compensation laws of the State of California, regardless of the jurisdiction
selected by the Employee.
B. Employer's Liability
The Program will indemnify the Member, where permitted by law, for Loss
arising from bodily injury or occupational disease, including resulting death.
Coverage is subject to the following conditions:
(a). Bodily injury by accident must arise out of and in the course of
employment by the Member. Occupational disease must be caused
by or aggravated by the conditions of employment. The accident
or period of exposure must occur during the Protection Period.
Bodily injury does not include emotional distress, anxiety,
discomfort, inconvenience, depression, dissatisfaction or shock to
the nervous system, unless caused by either a manifest physical
injury or a disease with physical dysfunction or condition resulting
in treatment by a licensed physician or surgeon.
(b). Bodily injury or occupational disease suffered by Employee is not
covered by workers' compensation law.
(c). The Employee's duties
conducted by the Mem
(d). The Member timely and
contribution orindernmE
sources.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 3 of 16
necessary or incidental to work
pursues all available remedies for
t from any and all other available
July 1, 2010—July 1, 2011
(e). The original Claim or Suit and related legal actions for damages
are brought in the State of California or under the laws of the State
of California.
i
2. Subject to the foregoing provision of B. Employer's Liability, the
Program shall:
(a). Indemnify the Member for all sums legally payable as damages
under this section. Damages include:
Amounts for which the Member is liable to a third party by
reason of a Claim, Suit or proceeding against the Member
to recover damages suffered by the third party; or
ii. Damages for care and loss of services of an injured
employee of the Member; or
iii. Damages for consequential bodily injury to a spouse, child,
parent, or sibling of the Employee, provided that such
damages are the direct consequence of injury or disease
arising out of and in the course of the Employee's
employment by Member.
iv. Injury or disease to an Employee arising out of and in the
course of employment, claimed against the Member in a
capacity other than as Employer.
(b). Defend, at the Program's expense, any Claim, proceeding or Suit
against the Member for damages payable under this section. The
Program has the right to investigate and settle these Claims,
proceedings and Suits. The Program has no duty to defend any
Claim, proceeding or Suit that is not covered by this Program.
The Program has no duty to defend or continue defending after
the Program has paid its maximum amount of coverage.
(c). Pay the following costs, in addition to the other amounts payable
under this section, as part of any Claim, proceeding or Suit the
Program defends:
Reasonable expenses incurred at the Program's expense,
but not loss of earnings;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 4 of 16 July 1, 2010 — July 1, 2011
ii. Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to twice the maximum amount
of coverage under this Program;
iii. Litigation costs taxed against the Member;
iv. Interest on a judgment as required by law; and
V. Other expenses incurred by the Program in discharging the
obligation of the Program or its members under this
section.
The following are excluded from coverage under this section:
(a). Damages arising out of the actual or alleged discharge; coercion;
criticism; demotion; evaluation; reassignment; discipline;
defamation; harassment; humiliation; discrimination against;
termination of, wrongful dismissal or discharge; breach of any oral
or written employment contract or quasi -employment contract;
misrepresentation; violation of employment discrimination laws;
workplace sexual or other harassment; wrongful failure to employ
or promote; wrongful discipline; negligent evaluation; wrongful
demotion; wrongful deprivation of a career opportunity;
employment-related invasion of privacy, defamation or wrongful
infliction of emotional distress; or any other personnel practices,
policies, acts or omissions, of any Employee, including Claims
brought under Americans with Disabilities Act, Family Medical
Leave Act, Pregnancy Disability Leave Act, Equal Opportunities
Act, Fair Employment and Housing Act, Fair Labor Standards Act;
or any other such State or Federal act;
(b). Any obligation of any type that is imposed by a workers'
compensation, occupational disease, unemployment compensation,
occupational health and safety law, or disability benefits law, or
any similar law;
(c). Damages for any injury or disease for any Employee engaged in
work subject to the Longshore and Harbor Workers' Compensation
Act, the Outer Continental Shelf Lands Act, the Defense Base Act,
the Jones Act, the Federal Employers Liability Act, or any other
Federal workers' compensation or occupational disease law, or any
international workers' compensation law;
(d). Punitive or exemplary damages, however characterized, or
damages, fines or penalties imposed under the Migrant and
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 5 of 16 July 1, 2010 - July 1, 2011
Seasonal Agricultural Worker Protection Act, or for violation of
any other Federal, state, county or other law, regulation or
ordinance;
C. Other Coverages
Defense of Serious & Willful Misconduct Allegation (Labor Code §4553)
or Alleged Discrimination Prohibited by Labor Code § 132a.
The Authority may, at its own discretion, elect to defend a Member
against Claims alleging Serious & Willful Misconduct or a violation of
§ 132a. Such defense will be provided by an attorney assigned by the
Authority. Any penalties awarded for Serious & Willful Misconduct or
violation of § 132a will be the responsibility of the Member. The
Member may elect to defend itself with counsel of its own choosing, at its
own expense.
3. DEFINITIONS
A. Authority means the California Joint Powers Insurance Authority.
B. Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
C. Claim means a notice, demand, or Suit against a Member to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing or any other administrative or regulatory agency.
D. Damages means compensation in money recovered by a party for loss or
detriment it has suffered. Damages does not include defense of Claims or any
punitive, exemplary or multiplied damages or non -monetary relief or redress or
injunctive relief.
E. Defense Costs means all fees and expenses incurred in connection with the
administration, investigation, defense, and appeal of a Claim covered hereunder,
including attorney fees, court costs, premiums for appeal bonds, and interest on
judgments accruing after the entry of judgment, and also shall include the costs of
any Claims administrator or defense counsel assigned by the Authority to
respond to any Claim on behalf of the Authority. Defense Costs shall not
include the office expenses of the Member, nor the salaries of employees or
officials of the Member, nor expenses of any Claims administrator engaged by
Memorandum of Workers' Compensation
and Employer'sLiability Coverage Page 6 of 16 July 1, 2010 — July 1, 2011
the Member. Defense Costs also do not include any fee or expense relating to
coverage issues between the Authority and any Member.
F. Discrimination means injury caused by:or arising out of:
Unlawful discrimination because of race, sex, color, age, religion, or
national origin, or membership in any similarly legally protected class; or
Violation of the discrimination prohibitions of the Americans with
Disabilities Act of 1990, any rules or regulations promulgated thereunder
and amendments thereto or similar provisions of any Federal, state, or
local statutory law or common law.
G. Employee includes any person falling within the definition of "employee" under
Labor Code Division 4, Chapter 2, Article 2. Volunteers are considered
employees under this Memorandum only if the Member has a resolution in
effect, and passed prior to the date of injury or illness at issue, providing workers'
compensation coverage to volunteers under Labor Code §3363.5, and while
performing specific functions in the course and scope of authorized activities
under the direction and control of the Member.
H. Loss means amounts actually paid by the Program for statutory workers'
compensation benefits, employer's liability Claims and allocated costs for
investigation, administration and defense of Claims under this Memorandum of
Coverage.
1. Member means the entity, including all of its departments and constituent
agencies, which has adopted a resolution to participate in the Program and
become a signatory to the Joint Powers Agreement creating the Authority as may
be amended from time to time, whose name appears on the Cover Page of this
Memorandum. Member includes any other agency for which the Member's
governing board or council acts as the governing board, and also includes any
commissions, agencies, districts, authorities, redevelopment agencies, boards, or
similar entities coming under the Member's direction and control. Member shall
include any other agency authorized by the Authority's Board of Directors. The
Member must be approved for self-insurance by the Office of Self Insurance
Plans and maintain its qualification for self-insurance during the Protection
Period.
Memorandum means this Memorandum of Workers' Compensation and
Employer's Liability Coverage authorized by the Joint Powers Agreement of the
Authority specifying the terms and conditions of the Program.
K. Occurrence means a single accident or event causing bodily injury to one or
more employees; or occupational disease sustained by one or more employees as
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 7 of 16 July 1, 2010 - July 1, 2011
a result of an outbreak of the same communicable disease, or sudden and
accidental exposure to the same environmental hazard.
L. Program means the California Joint Powers Insurance Authority's Workers'
Compensation and Employer's Liability Program described by this
Memorandum and the Agreement of the Members creating the Authority. The
Program is a fund created by the Members for the purpose of pooling self-
insured losses.
M. Protection Period means the time period shown on the Cover Page of this
Memorandum.
N. Suit means a civil proceeding in which a Member is named as a defendant or
cross-defendant, or an arbitration proceeding or alternative -dispute resolution
proceeding to which a Member submits with the Authority's written consent.
4. EXCLUSIONS
This Memorandum, including any obligation to indemnify, defend or pay Defense
Costs, does not apply to:
A. The Member's obligation to pay salary in lieu of temporary disability benefits
under Labor Code §4850, except to the extent that the Member would be
obligated to pay temporary disability benefits in the absence of the mandate of
§4850.
B. The Member's obligations under Labor Code §4856 to provide health benefits.
C. Injury or disease to an Employee while knowingly employed in violation of law;
D. Injury or disease intentionally caused or aggravated by or at the direction of the
Member;
E. Penalties or fines imposed for violation of Labor Code 132a or Labor Code §4553
(Serious & Willful Misconduct);
Penalties or self-imposed benefit increases for violations of Labor Code §5814 et
seq. attributable to the Member's actions;
G. Damages arising out of, or in any way related to, operations with respect to which
the Member:
has violated or failed to comply with any workers' compensation law, or
any provision thereof, or
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 8 of 16 July 1, 2010 — July 1, 2011
has rejected any workers' compensation law.
H. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages
or fines or other damages imposed primarily for the sake of example and by way
of punishing the Member, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or
pay damages for a Claim, action or judgment for punitive or exemplary damages.
I. Any liability for which the Member is obligated to pay damages by reason of
liability assumed in a contract or agreement.
5. CONDITIONS AND RESPONSIBILITIES
A. General Obligations
The Member agrees to abide by all employment, equal opportunity, anti-
discrimination, health and safety laws, statutes and regulations. It understands
that, among other obligations, it has a non -delegable duty to provide employees
with a safe place to work, and training in safe work practices. The Member
agrees to abide by all applicable wage and hour laws, collective bargaining
agreements, memoranda of understanding, and other statutes and regulations
regarding working conditions.
The Member agrees to immediately report every occupational injury or illness
which results in medical treatment, or any claim by an Employee for workers'
compensation benefits, to the Authority or the Authority's designated
administrator, but in no instance to cause the delay of such report of injury, illness
or claim more than five days after date of knowledge or as otherwise required by
Labor Code §6409.1. The Member agrees to give every employee a claim form
pursuant to Labor Code 5401 within one working day of receiving notice or
knowledge of a claim or potential claim. In the event of an injury or illness, the
Member agrees to provide first aid or arrange for appropriate immediate medical
care. The Member agrees to provide suitable temporary modified or alternate
duty whenever possible for employees with workers' compensation injuries, and
agrees to conduct interactive accommodation meetings as required by AB 2222.
B. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Member's
records, property and operations at any time. Neither the Authority's right to
make inspections, nor the making thereof, nor any report hereon 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 or healthful, or are
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 9 of 16 July 1, 2010 — July 1, 2011
in compliance with any law, rule or regulations. The Authority may examine and
audit the Member's books and records at any time during the Protection Period
and extensions thereof, and within three years after the final termination of this
Program, as far as they relate to the subject matter of this Memorandum.
C. Member's Duties in the Event of Occurrence, Claim or Suit
In the event of any Occurrence, written notice containing particulars
sufficient to identify the Member and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and
the names and addresses of the injured and of available witnesses, shall be
given by or for the Member to the Authority's claims administrator as
soon as practicable, but no later than required by statute or regulation.
2. If a Claim is made against a Member, the Member shall immediately
forward to the Authority's claims Administrator every demand, notice,
summons or other process received by the Member or the Member's
representative.
3. The Authority's claims Administrator will review the Claim, and under
the direction of the Authority, undertake the administration of the Claim,
including investigation, defense and settlement, as appropriate.
The Member shall cooperate with the Authority and, upon the
Authority's request, assist as appropriate in the resolution of the Claim,
including enforcing any right of contribution or indemnity against any
person or organization who may be liable to the Member because of
injury or damage to an Employee or Member property. The Member
shall not voluntarily make any payment, assume any obligation or incur
any expense.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 10 of 16 July 1, 2010 — July 1, 2011
D. Privacy and Confidentiality of Claim Records
All Claim records, including Claim files, examiners notes, medical reports,
subpoenaed records, correspondence, tapes and films, and whether electronic or
hard files, are the property of the Authority. Because these records may contain
confidential or private medical and/or psychological information related to
workers' compensation Claims administered by or on behalf of the Authority,
access to Claim files and the information contained therein is restricted to the
Authority and its agents and assignees, with the exception that the Member is
entitled to medical information limited to the diagnosis of the mental or physical
condition for which workers' compensation is being claimed and the treatment
provided for this condition, or what is necessary for the Member to have in order
to provide temporary or permanent modification or accommodation of the
employee's work duties.
E. Change in conditions
If a Member experiences a significant change in operations or conditions, the
Member shall notify the Authority as soon as practicable, and the Authority has
the right to an underwriting review and to collect additional primary deposits as
may be appropriate to reflect the added exposure to the Program. The additional
primary deposit must be paid within ninety days of notice.
F. Other Protection
If collectible insurance or any other coverage or protection with any insurer, self-
insured employer, joint powers authority or any other source, is available to the
Member covering a loss also protected hereunder (whether on a primary, excess
or contingent basis), the protection hereunder (including any Defense obligation)
shall be in excess of, and shall not contribute with, such insurance or other
coverage or protection, provided that this clause does not apply with respect to
any insurance purchased by a Member specifically to be in excess of this
Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such
insurance, coverage, or other protection.
G. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance
with the Joint Powers Agreement and Bylaws of the Authority.
H. Changes to Memorandum
Notice to any agent or knowledge possessed by any agent of the Authority or by
any other person shall not effect a waiver of or a change in any part of this
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 11 of 16 July 1, 20 10 — July 1, 2011
Memorandum, nor shall the terms of this Memorandum be waived or changed,
except by a written addendum issued by the Authority to form a part of this
Memorandum.
1. Subrogation and Recovery
The Authority shall be subrogated to the extent of any payment hereunder to all
the Member's rights of recovery thereof. This section applies to all recoveries
from third parties or governmental agencies, including recoveries for state
mandate reimbursements pursuant to SB 90 or other statute or regulation.
The Member shall do nothing after loss to prejudice such rights and shall do
everything necessary to secure such rights. The Authority shall have standing to
seek subrogation recovery in its own name or in the name of the Member, and
the Member shall cooperate with and assist the Authority in pursuing such
recovery, including. assigning its right to recover subrogated amounts, and if
necessary, executing a written agreement to effect such assignment. Any amount
so recovered shall be credited to the workers' compensation file.
J. Assignment
There is no assignment of interest permitted under this Memorandum.
K. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms
and provisions of the Agreement creating the Authority, and in the event of any
conflict between the terms and provisions of said Agreement and this
Memorandum, the terms and provisions of the Agreement shall control.
L. Appeal of Disputes
Should a dispute arise between the Member and the Program, the following
conditions will apply:
No party is entitled to appeal or arbitrate Claims under this Memorandum
other than the Member.
2. Any disputes concerning coverage, protection, Defense obligations, or
procedures of the Program, as interpreted by the Authority's staff, shall
be appealed to the Authority's Executive Committee in accordance with
the following procedures.
3. A Member may request any determination of a lack of coverage made by
the Authority to be reviewed by the Chief Executive Officer. Such a
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 12 of 16 July 1, 2010 — July 1, 2011
request shall be in writing and must be made within 90 days of the date of
notice from the Claims Administrator.
4. Upon request, the Chief Executive Officer shall review a determination of
a lack of coverage made by the Claims Administrator or Authority staff
and shall send to the Member a written determination of coverage.
5. If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees.
Appeals must be in writing within 90 days of the date of the Executive
Director's written decision. The appeal request must state why the
Member disagrees with the denial, and the Member should present any
information that may have a bearing on the ultimate determination of
coverage.
6. The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall
notify the Member in advance of the meeting at which its appeal will be
presented.
7. If the Member would like to personally address the Appeals Committee,
the Member or the Member's representative may attend the meeting and
speak to the issue.
8. The Appeals Committee may refer the appeal to the Coverage Committee
and consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's
decision in writing.
9. Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. lithe new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in section,
upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to t �e Member of the new Claim or cause of
action.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 13 of 16 July 1, 2010 — July 1, 2011
10. If a Member disputes a coverage issue, then, during the course of the
administrative and arbitration proceedings provided herein, the Authority
shall defend the Claim against the Member and have the right to control
any settlement of that Claim, subject to the right of the Authority to
recover from the Member any amounts paid out by the Authority for
such defense or settlement which are finally determined by the Appeals
Committee, or as a result of the Binding Arbitration Process, not to be
owed by the Authority under the Program.
M. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5_L.
Appeal of Disputes and disagrees with the final determination of the Appeals
Committee, the Member may request consideration of the coverage issue through
the Authority's binding arbitration process.
The Arbitration process shall be as follows:
Following a decision by the Appeals Committee, the appealing Member
shall notify the Chief Executive Officer in writing, within thirty days of
the Appeals Committee's final decision, that it wishes to participate in
Binding Arbitration and shall submit a non-refundable $1,000 arbitration
appeal fee. The written notice shall specify the grounds for the arbitration.
Following payment of the arbitration appeals fee, the name of each
Member, other than the appealing Member and the Members
represented on the Appeals Committee, shall be placed in an unmarked
envelope. Each envelope shall be placed in a box and eleven envelopes
shall be drawn by the Chief Executive Officer. A representative of the
appealing Member may be present at the drawing.
The managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their managers shall
be given in writing to the appealing Member.
4. The appealing Member shall have the right to strike two or less names
from the pool for any reason which shall not be disclosed. The Authority
shall have the right to strike two or less names from the pool for any
reason which shall not be disclosed. The appealing Member and the
Authority must strike names within five business days of the drawing.
The right of either party to strike names shall lapse at 5:00 PM on the fifth
business day following the drawing. Notice of names stricken by either
party shall be given in writing to the other party prior to 5:00 PM on the
fifth day following the drawing.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 14 of 16 July 1, 2010 — July 1, 2011
The remaining managers shall be contacted by the Chief Executive Officer
to determine their willingness to serve on the arbitration panel. If more
than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be
the arbitration panel and they shall be disclosed in writing to the appealing
Member.
6. If only five are willing to serve, they shall be the arbitration panel.
7. If fewer than five are willing to serve, the name of each Member not
drawn in the previous selection drawing shall be placed in an unmarked
envelope, put in a box, and four envelopes shall be drawn for each
arbitration panel position needed to complete a five -Member panel. A
representative of the appealing Member may be present at the drawing.
The names drawn shall be disclosed to the appealing Member who may
reject, for any reason which shall not be disclosed, one name for each four
names drawn. The Authority may also reject one name for each four
names drawn and shall not disclose the reason. Names rejected by the
appealing Member and the Authority must be rejected within 48 hours of
the drawing. The right to reject names shall lapse 48 hours following the
drawing.
The managers or chief executive officers of the Members remaining shall
be contacted by the Chief Executive Officer to determine their willingness
to serve on the arbitration panel. The names of those willing to serve shall
be placed in unmarked envelopes, put in a box, and the number necessary
to fill out the arbitration panel shall be drawn by the Chief Executive
Officer and disclosed in writing to the appealing Member. A
representative of the appealing Member may be present at the drawing.
9. This process shall be repeated until five Members are obtained for the
arbitration panel.
10. The arbitration panel Members shall be compensated at the rate of $125
per half-day or portion thereof. If a panel Member is required to stay
away from home overnight, lodging shall be paid by the Authority.
Necessary meals shall be provided for all panel Members. Mileage costs
shall be reimbursed by the Authority at its standard rate.
11. The cost of the arbitration panel i hall be bome by the Authority. The
cost of presentation by the appealing Member, including preparation,
exhibits, attorneys, and all other costs of the Member shall be paid by the
Member.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 15 of 16 July 1, 2010 — July 1, 2011
12. The arbitration panel may request legal counsel that shall be selected by
the Chief Executive Officer and paid for by the Authority. Legal counsel
shall not be the counsel for the Authority that has advised the staff and
Executive Committee. However, counsel for the Authority may
participate in or make the presentation to the arbitration panel on behalf of
the Authority, as requested by the Chief Executive Officer.
13. The parties to the arbitration shall not be governed by formal rules of
evidence.
14. The arbitration panel's decision shall be final and binding on the Member
and the Authority. Decisions of the arbitration panel shall be by majority
vote.
15. The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future
arbitration panels for precedent.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 16 of 16 July 1, 2010 — July 1, 2011
CALIFORNIA JPIA
MEMORANDUM
To: City Manager/Town Manager/Chief Executive Officer
From: Jonathan Shull, Chief Executive Officer
Date: July 27, 2010
Subject: Certificates of Protection for July 1, 2010 — June 30, 2011 and
2010-2011 Memoranda of Coverage
Enclosed is your agency's Certificate of Liability Protection for the 2010-2011 coverage period
and, if applicable, your agency's Certificate of Workers' Compensation Protection for the same
coverage period.
Also enclosed is the 2010-2011 Memorandum of Liability Coverage and, if applicable, the 2010-
2011 Memorandum of Workers' Compensation and Employer's Liability Coverage.
Recent changes, as approved by the Executive Committee at its meeting on June 23, 2010 include
changes to dates of coverage only in the Memorandum of Workers' Compensation and Employer's
Liability Coverage, and as summarized below in the Memorandum of Liability Coverage:
1. Exclusion J, page 15 — language clarification exempting animal care and control clinics
from this exclusion
2. Exclusion K, page 15-16; Definitions; page 16 — language added to incorporate wayside
horns in the definition of Quiet Zone and its exclusion
3. Exclusion N, page 16 — language added to exclude coverage for misconduct under
intentional acts committed with willful disregard for the safety and well being of others or
with malice; maintains coverage for member for its vicarious liability for acts for which it
was unaware
4. Exclusion Y, page 18-19 — amendment to exclude salary from pooled coverage when
member fails to pay their employee or render payment in the correct amount
5. Certification, page 5; Waiver, page 12-13 — amendment to exclude late presentation of
claim filed under Termination to City Manager's Employment Liability Protection
6. Exclusion U, page 17 — language clarification ensuring liability protection for the Authority
In the next few weeks, you and your agency's California JPIA Director, Risk Manager, and
Finance Director will receive an email with a website link to the same documents in electronic
format. In addition, coverage summaries for all of the programs available through the California
JPIA will be available on the website. The Programs include: Liability, Workers' Compensation,
Property, Pollution & Remediation Legal Liability, Crime Coverage, and Special Events.
Please contact me at (562) 467-8787 or at jshull@cjpia.org if you have questions.
Memorandum of Liability Coverage
Issued to the City of Rosemead
Effective July 1, 2010 — July 1, 2011
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July 1, 2010 —July 1, 2011, as a joint protection program authorized pursuant to
Article 11(a) of the California JPIA joint powers agreement
Providing Innovative Risk Management Solutions For Our Public Agency Partners
r n I Irnu nne
A
COVER PAGE
a
MEMORANDUM OF LIABILITY COVERAGE
FOR THE
CALIFORNIA .JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
RosemeadCA91770-1787
PROTECTION LIMITS: Primary layer: $15,000,000
PROTECTION PERIOD: From July 1, 2010 at 12:01 a.m. Pacific Time until July 1, 2011 at
12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which certain
specified and limited self-insured risks of liability are administered by the Authority and shared by its
Members. This Memorandum is not an insurance policy. As provided in Section 990.8 of the California
Government Code and appellate court cases of Orange County Water District v. Association of California
Water Agencies JPIA (1997) and City of South El Monte v. Southern California Joint Powers Insurance
Authority (1995), the pooling of self-insured claims or losses among the Members of the Authority shall
not be considered insurance nor be subject to regulation under the Insurance Code.
Lo
CALIFORNIA JPIA
President
i
TABLE OF CONTENTS
1. INTRODUCTION
1
2. PROTECTION PROVIDED
1
A. Payments on Behalf of Protected Parties
1
B. Defense and Settlement
2
C. Protection Limit
3
D. Statutory Limitations
3
E. Territorial Limitation
4
3. DEFINITIONS
4
4. EXCLUSIONS
13
5. CONDITIONS AND RESPONSIBILITIES
19
A. Inspection and Audit
19
B. Severability of Interest
20
C. Protected Parry's Duties in the Event of Occurrence, Claim or Suit
20
D. Other Protection
20
E. Termination or Amendment
21
F. Changes
21
G. Subrogation
21
K Assignment
21
L Joint Powers Agreement
22
J. Appeal of Disputes
22
K Arbitration
23
L
MEMORANDUM
for the
COVERAGE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of liability are administered by the Authority and shared
by its Members pursuant to the Joint Powers Agreement creating the Authority under
the provisions of Section 6500 et seq. of the Government Code.
As provided in Section 990.8 of the Government Code, pooling of losses in this Program
is not insurance. The sole duty of the Authority, is to administer the Program adopted
by the Members. The Authority can indemnify only Claims or losses, which are pooled
under the terms of this Memorandum and the Joint Powers Agreement. There is no
transfer of risk from the Member or any Protected Party to the Authority nor
assumption of risk by the Authority.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Protected
Party or the Authority. Any controversy or dispute arising out of or related to an
interpretation or breach of this Memorandum shall be settled in accordance with the
appeals procedures as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. DEFINITIONS.
2. PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
Subject to all provisions of this Memorandum, the Authority will cause the Program to
pay on behalf of the Protected Party all sums that the Protected Party shall become
Memorandum of Liability Coverage Page l of 25
July 1, 2010—July I, 2011
legally obligated to pay as Damages by reason of Tort Liability imposed by law, or the
Tort Liability of others assumed in a Protected Contract, because of:
(i) Bodily Injury or Property Damage;
(ii) Personal Injury;
(iii) Public Officials Errors and Omissions;
(iv) Broadcast/Publication Injury;
(v) Employment Practices Injury;
(vi) Employee Benefit Administration Liability; or
(vii) Tennination of City Manager's Employment Liability
caused by an Occurrence to which this Memorandum applies.
B. Defense and Settlement
The Authority, at the shared expense of its Members, and out of funds of the Program
deposited or obligated to be deposited by its Members, shall investigate, negotiate, settle,
or Defend, at the Authority's sole discretion, any Claim or Suit which has been
tendered to the Authority and which in the sole opinion of the Authority is encompassed
by this Program. The Authority shall control selection of defense counsel. Defense
Costs incurred by the Protected Party prior to the tender of the Claim or Suit, as
required by 5. CONDITIONS AND RESPONSIBILITIES, to the Authority are the sole
obligation of the Protected Party. The date of the tender of the Claim or Suit shall be
the date written notice of said Claim or Suit is received at the Authority's offices (or its
designated Claims Administrator).
The obligation of the Authority as described above shall cease to apply after the
Protection Limit has been exhausted by any combination of payments hereunder for
judgments, settlements, or Defense Costs, or if the Authority tenders the Protection
Limit on behalf of any Protected Party. For purposes of excess insurance or
reinsurance, any Defense Costs incurred prior to the tender of the Protection Limit shall
be deducted from the Protection Limit that is tendered.
With respect to any Claim or Suit or part thereof which has been tendered to the
Authority and over which the Authority assumes full or partial responsibility or charge
of the settlement or Defense, the Authority shall, if applicable, cause the Program to
pay:
(i) All expenses incurred by the Authority on behalf of a Protected Party;
(ii) Costs taxed against a Protected Party in the Suit; and
(iii) Other reasonable expenses incurred by a Protected Party at the Authority's
request to assist the Authority in the investigation or Defense of the Claim or
Suit; but this shall not include the office expenses of the Protected Party, the
salaries of Employees or officials of the Protected Party, nor expenses of
any claims administrator engaged by the Protected Party.
With respect to a Claim or Suit for which the Authority has determined that only a
portion is encompassed by this Program, the Authority shall cause the Program to fund
Memorandum of Liability Coverage Page 2 of 25 July 1, 2010 - July 1, 2011
any Defense to the Claim or Suit against the Member and any settlement or final
judgment of that Claim or Suit, subject to the reservation by the Authority of the right to
recover from the Member any amounts paid by the Authority for such settlement or
final judgment which are paid to claimants for Claims or Suits, or portions thereof, not
encompassed by the Program.
With respect to a Claim or Suit for which the Authority has determined that no portion
is encompassed by this Program, the Claim or, Suit shall be referred, in its entirety, back
to the Protected Party.
The payment of Defense Costs will reduce the Protection Limit under this Program.
C. Protection Limit
The Protection Limit shown on the Cover Page and the rules below determine the most
the Program will pay, inclusive of Defense Costs, regardless of the number of:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) Persons or organizations that sustain injuries or Damages.
The Protection Limit stated on the Cover Page is the most the Program will pay per
Member for the sum of Damages, Defense Costs and expenses as included in B.
Defense and Settlement under any or all or any combination of Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Injury, or Termination of City Manager's Employment Liability
arising out of any one Occurrence.
For the purpose of determining the Protection Limit all Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Liability, or Termination of City Manager's Employment Liability
arising out of exposure to substantially the same general condition(s) shall be considered
as arising out of one Occurrence.
Any actual or alleged loss of use of tangible property not physically injured or destroyed
shall be deemed to occur at the time of the Occurrence that caused such loss of use. Any
other injury or damage occurring or alleged to have occurred over more than one
Protection Period shall be deemed to have occurred during the Protection Period when
the Occurrence began.
D. Statutory Limitations
Notwithstanding sections 2.A. and 2.B. above, the defense and/or indemnity protections
afforded by this agreement to a past or present elected or appointed official or Employee
of a Member are not broader than the Member's own duty to defend and indemnify its
official or Employee under California Government Code sections 825, et seq. and 995, et
seq. All immunities, defenses, rights, and privileges of the Member under the
Government Code apply to the Program as well, including any defense that the official
or Employee acted outside the course and scope of employment or acted with fraud,
Memorandum of Liability Coverage Page 3 of 25 July 1, 2010 — July I, 2011
corruption or actual malice, or any defense that the action or proceeding or type of
damage sought is not the type for which the Member is obligated to provide defense
and/or indemnity. The defense and/or indemnity protections are also subject to all the
terms, conditions, and Exclusions of this Memorandum and do not apply if not covered
by this Memorandum, even if an obligation to defend and/or indemnify would exist
under the Government Code.
E. Territorial Limitation
This Memorandum applies only to Claims made in the courts of the United States or of
any State.
3. DEFINITIONS
Administration under Employee Benefits Administration Liability means:
A. Giving counsel to employees with respect to the Employee Benefits Programs;
B. Interpreting the Employee Benefits Programs;
C. Handling of records in connection with the Employee Benefits Programs; or
D. Effecting enrollment, termination, or cancellation of employees under the
Employee Benefits Programs, provided all such acts are authorized by the
Member.
Aircraft means any vehicle designed to transport people or property through the air.
Airport means any locality either on land or water which is adopted for the landing and
taking off of Aircraft, including all land, water, buildings, structures, equipment or other
improvements necessary or convenient in the establishment and operation of an Airport.
Authority means the California Joint Powers Insurance Authority.
Automobile means a land motor vehicle, trailer, or semi -trailer.
Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
Broadcast/Publication Injury means injury caused by or arising out of:
A. Any form of defamation or other tort related to disparagement or harm to the
character, reputation or feelings of any natural person or organization including but
not limited to libel, slander, product disparagement, trade libel, infliction of
emotional distress, outrage, or outrageous conduct;
B. Any form of invasion of, infringement of, or interference with rights of privacy or
publicity; including but not limited to false light, public disclosure of private facts,
intrusion, and commercial appropriation of name or likeness;
C. Infringement of copyright or trademark;
D. Plagiarism or piracy or misappropriation of ideas under implied contract;
Memorandum of Liability Coverage Page 4 of 25 July 1, 2010— July 1, 2011
E. Unauthorized use of names, trade names, trademarks, service marks, titles, formats,
ideas, characters, character names, characterizations, perfonnances, plots, musical
compositions, slogans, program material, or any other similar material; or
F. Denial of access to broadcast facilities based upon application of judgment or
standards relating to the acceptability of material for public broadcast; committed in
the course of the Protected Party's broadcast or publication activities.
Certification means a signed statement by a City Manager that he or she is entitled to
the Unemployment Protection Payment because he or she is unemployed or is
employed but at a specified lower salary than he or she was earning at the time of the
Occurrence and has not retired under a retirement program in which the City Manager
earned benefits as a public employee. The initial executed Certification must be
received within 60 days following the Waiting Period.
City Manager means the governing body -appointed chief administrative officer of a
Protected Party whether called City Manager, Chief Administrative Officer, General
Manager or other title designating the highest appointed official of the governmental
entity.
Claim means a notice, demand, or Suit against a Protected Party to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing.
Dam means a structure described by California Water Code sections 6002 through 6004.
Damages means compensation in money recovered by a party for loss or detriment it has
suffered through the acts of a Protected Party. Damages does not include defense of
Claims or any punitive, exemplary or multiplied damages or non -monetary relief or
redress or injunctive relief.
Defense Costs means all fees and expenses incurred in connection with the adjustment,
investigation, defense, and appeal of a Claim covered hereunder, including attorney fees,
court costs, premiums for appeal bonds, and interest on judgments accruing after the
entry of judgment, and also shall include the costs of any claims administrator or defense
counsel assigned by the Authority to respond to any Claim on behalf of the Authority.
Defense Costs shall not include the office expenses of the Protected Party, nor the
salaries of employees or officials of the Protected Party, nor expenses of any claims
administrator engaged by the Protected Party. Defense Costs also do not include any
fee or expense relating to coverage issues between the Authority and any Protected
Party.
Discrimination means injury caused by or arising out of:
A. Unlawful discrimination because of race, sex, color, age, religion, or national origin,
or membership in any similar legally protected class; or
B. Violation of the discrimination prohibitions of the Americans with Disabilities Act
of 1990, any rules or regulations promulgated thereunder and amendments thereto
or similar provisions of any federal, state, or local statutory law or common law.
Memorandum of Liability Coverage Page 5 of 25 July 1, 2010 —July 1, 2011
Employee includes any person falling within the definition of "employee" under section
810.2 of the Government Code. That section provides: "Employee includes an
officer... employee, or servant, whether or not compensated, but does not include an
independent contractor." Employee also includes any volunteer designated by the
Member to perform specific functions in the course and scope of authorized activities
under the direction and control of the Member.
Employee Benefit Administration Liability means liability for injury or damage caused
by or arising out of any negligent act, error or omission of the Protected Party in the
Administration of the Member's Employee Benefits Programs.
Employee Benefits Program means group life insurance or self-insurance, group
medical, dental or vision -care insurance or self-insurance, pension plans, retirement
plans, deferred compensation plans, workers' compensation, unemployment insurance,
social benefits, disability benefits, and other similar employee benefits.
Employment Practices Injury means injury arising out of the following offenses:
A. Wrongful dismissal, discharge, or termination of employment;
B. Breach of any oral or written employment contract or quasi -employment contract;
C. Employment-related coercion or misrepresentation;
D. Violation of employment discrimination laws;
E. Workplace sexual or other harassment;
F. Wrongful failure to employ or promote;
G. Wrongful discipline, negligent evaluation, or wrongful demotion;
H. Wrongful deprivation of a career opportunity; or
1. Employment-related:
(i) Invasion of privacy,
(ii) Defamation, or
(iii) Wrongful infliction of emotional distress.
Fungi means any type or form of fungus, including mold or mildew and any mycotoxins,
spores, scents, or byproducts produced or released by fungi.
Hostile Fire means a fire that becomes uncontrollable and breaks out from where it is
intended to be.
Levee means a permanent embankment intentionally constructed for the purpose of
preventing overflow of a watercourse or body of water.
Medical Benefit means the cost of all benefits to which a City Manager is entitled under
the Comprehensive Omnibus Budget Reconciliation Act of 1986 (COBRA).
Member means the entity, including all of its departments and constituent agencies, that
is a signatory to the Joint Powers Agreement creating the Authority as may be amended
from time to time, which has adopted a resolution to participate in the Program, and
Memorandum of Liability Coverage Page 6 of 25 July 1, 2010—July 1, 2011
whose name appears on the Cover Page of this Memorandum. Member includes any
other agency for which the Member's governing board or council acts as the governing
board, and also includes any commissions, agencies, districts, authorities, redevelopment
agencies, boards, or similar entities coining under the Member's direction and control.
Member shall include any other agency authorized by the Authority's Executive
Committee or Board of Directors.
Memorandum means this Memorandum of Liability Coverage authorized by the Joint
Powers Agreement of the Authority specifying the terms and conditions of the Program
through which certain specified and limited self-insured risks of liability are administered
by the Authority and shared by its Members.
Nuclear Material means "source material," "special nuclear material," or "by-product
material" as those terns are given meaning in the Atomic Energy Act of 1954 or any law
amendatory thereto.
Occurrence means:
A. With respect to Bodily Injury or Property Damage, an accident, including
continuous or repeated exposure to conditions, that first occurs during the
Protection Period and that results in Bodily Injury or Property Damage neither
expected nor intended from the standpoint of the Protected Party;
B. With respect to Public Officials Errors and Omissions, actual or alleged conduct
described in the definition of Public Officials Errors and Omissions during the
Protection Period;
C. With respect to Employee Benefits Administration Liability, actual or alleged
conduct described in the definition of Employee Benefits Administration Liability
during the Protection Period;
D. With respect to Personal Injury, Broadcast/Publication Injury, and Employment
Practices Liability, an offense described in the definitions of those terms; or
E. With respect to Termination of City Manager's Employment Liability, injury
arising out of: .
(i) Dismissal, discharge, or termination of the employment of a City Manager;
or
(ii) Failure to renew an employment contract which results in termination of the
employment of a City Manager
for which liability on the part of a Protected Party can be settled through the
acceptance by the City Manager of an Unemployment Protection Payment in
exchange for a Waiver and Certification.
All claims based on or arising out of Harassment or similar conduct (including
molestation or sexual abuse) by an Employee, or more than one Employee acting in
concert, will be considered arising out of one Occurrence and shall be deemed to have
been committed at the time of the first of such acts or alleged acts, regardless of the
number of:
(i) Protected Parties;
Memorandum of Liability Coverage Page 7 of 25 July 1, 2010—July 1, 2011
(ii) Claims made or Suits brought; or
(iii) persons or organizations that sustain injuries or Damages.
If a series of wrongful acts committed by one Employee, or more than one Employee
acting in concert, takes place over more than one Protection Period, the wrongful acts
will be deemed to have been committed during the first Protection Period and only the
Protection Limit for that Protection Period shall apply.
Personal Injury means injury, other than Bodily Injury, Property Damage or Public
Officials Errors and Omissions, resulting from one or more of the following offenses:
A. False arrest, detention, or imprisonment;
B. The use of force for the purpose of protecting persons or property;
C. Malicious prosecution or abuse of process;
D. Wrongful entry by any employee of the Member into a room, dwelling, or other
similar premises that a person occupies;
E. Wrongful eviction by any employee of the Member of a person from a room,
dwelling, or other similar premises that such person occupies;
F. The publication or utterance of a libel or slander, including statements that
disparage a person's or organization's goods, products, or services;
G. A publication or utterance that violates a person's right of privacy;
H. Interference with an existing or prospective economic advantage, contract, or
agreement;
Discrimination;
Violation of civil rights; or
K. Infliction of emotional distress.
Pollutants/Hazardous Materials includes without limitation:
A. Any flammable or explosive substances, radioactive materials, asbestos, poly-
chlorinated biphenyls, chemicals, substances known to cause cancer or reproductive
toxicity, pollutants, contaminants, hazardous wastes, toxic substances, or related
materials which are regulated by or under any federal, state, or local environmental
law;
B. Any material identified as hazardous in Sections 66261.10 through 66261.126 of
Title 22 of the California Code of Regulations, as amended from time to time
(collectively);
C. Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste. The term "waste" includes
materials to be recycled, reconditioned, or reclaimed; and
D. Fungi and bacteria of any kind, unless caused by an otherwise covered Occurrence.
Program means the California Joint Powers Insurance Authority Liability Protection
Program described by this Memorandum and the Agreement of the Members creating
Memorandum of Liability Coverage Page 8 of 25 July 1, 2010 — July 1, 2011
the Authority. The Program is a fund created by the Members for the purpose of
pooling self-insured losses.
Property Damage means:
A. Physical injury to or destruction of tangible property which occurs during the
Protection Period, including the loss of use thereof at any time resulting there
from; or
B. Loss of use of tangible property that has not been physically injured or destroyed
provided such loss of use is caused by an Occurrence during the Protection
Period.
Protected Contract means a written agreement that satisfies all of the following:
A. The agreement pertains to the Member's operations and by the contract terms the
Member assumes the Tort Liability of another to pay damages because of Bodily
Injury or Property Damage to a third person or organization;
B. The agreement is entered into prior to the Bodily Injury or Property Damage for
which a Claim is made; and
C. The agreement, including its value, is reported by the Member and approved by the
Authority through issuance of an evidence of coverage letter prior to the Bodily
Injury or Property Damage and the value is added to the Member's annual
payroll for use in any retrospective deposit or annual contribution computation.
A Protected Contract may cover an architect, engineer, or surveyor for his or her
role as a Public Official, except for the application of paragraphs B.(i) and B.(ii)
below. Protected Contracts may apply to contract public works directors, building
officials, planning directors, City Managers, city attorneys, city prosecutors,
redevelopment directors, or other contracted Public Officials for occurrences arising
out of their official duties, but this coverage applies only to the named contract
Public Official and does not extend to other individuals within the contractor's firm.
A Protected Contract does not include any part of any contract or agreement:
A. That indemnifies any person or organization for injury or damages caused by or
arising out of the ownership, operation, maintenance or use of any Aircraft,
Airport or Watercraft;
B. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply
in the instance where an individual is under an exclusive contract as a contract
Public Official solely for the benefit of the Member (i.e., no work is performed by
the person for any other person or entity), for injury or damage arising out of:
(i) Preparing, approving, or failing to prepare or approve maps, drawings,
opinions, reports, surveys, change orders, designs or specifications; or
(ii) Giving or failing to give directions or instructions, if that is the primary cause
of the injury or damage;
C. Under which the Protected Party, if an architect, engineer, or surveyor, assumes
liability for injury or damage arising out of the Protected Party's rendering or
Memorandum of Liability Coverage Page 9 of 25 July I, 2010 — July 1, 2011
failing to render professional services, including those listed in B. above and
supervisory, inspection, or engineering services;
D. That indemnifies any person or organization for damages by fire, explosion, or
water damage to premises rented or loaned to the Member; or
E. That indemnifies any person or organization in connection with the establishment,
designation, or implementation of a Quiet Zone.
Limited Protected Contract means a written agreement in which:
A. The Member is merely seeking to utilize real or personal property and by the
contract terms assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third person and Authority staff has
determined in its sole discretion that any risks assumed in the agreement do not
significantly increase the Member's risk exposure; or
B. The Member is obligated to provide evidence of coverage for a third party to
participate in a funding program administered by another government or evidence of
coverage required by bond indentures entered into by the Member if Authority
staff has determined in its sole discretion that any risks assumed in the agreement do
not significantly increase the Member's risk exposure;
and which is entered into and approved by the Authority prior to the Bodily Injury or
Property Damage for which a Claim is made.
A Limited Protected Contract does not include any part of any contract or agreement
that indemnifies any person or organization for injury or damages caused by the sole
negligence of such person or organization, or that cannot be included in a Protected
Contract.
Protected Party means:
A. The Member named on the Cover Page;
B. Persons who are, or were, elected or appointed officials or Employees of the
Member, whether or not compensated, while acting within the scope of their duties
or employment as such, including while acting on outside committees,
commissions, or boards at the direction of the Member, except that the protection
so provided does not apply to Bodily Injury to another official or employee of the
Member in the course of and arising out of his or her duties to or employment by
the same Member;
C. Any nonprofit California corporation or unincorporated association under written
contract, approved by the Member's governing board or council, to perform
specified functions under the Member's direction and control. The corporation or
unincorporated association is a Protected Party only for Occurrences arising out
of the functions described in the contract. For the purposes of this section, direction
and control means the authority of the Member to be involved in decision making
and to overturn decisions;
D. Any person or entity identified as an additional Protected Party in a letter
certifying such additional Protected Party status issued by the Authority, for
Memorandum of Liability Coverage Page 10 of 25 July 1, 2010 — July 1, 2011
Occurrences during the time period identified in the letter; if a particular activity is
identified in the letter, the person or entity is a Protected Party only for
Occurrences arising out of the described activity. Additional Protected Party
status will apply only where required by the terms of a Protected Contract or
Limited Protected Contract;
E. Any person while using an Automobile owned, hired, or leased by a Member, and
any person or organization legally responsible for the use thereof, provided the use
is with the express permission of the Member, and only for Bodily Injury and
Property Damage. This protection does not apply to:
(i) Any person or organization, or any agent or employee thereof, engaged in
selling, repairing, servicing, delivering, testing, road testing, parking or
storing, Automobiles, with respect to any Occurrence arising out of any such
occupation or activity;
(ii) With respect to any hired automobile, to the owner or a lessee thereof, other
than the Member, or to any agent or employee of such owner or lessee; or
(iii) Any person or organization or to any agent or employee thereof engaged in a
business of operating buses or other Automobiles for the transport of
members of the public unless that business is owned by the Member and
operated by its employees.
(This Memorandum does not provide Underinsured or Uninsured Motorist
coverage.); or
F. The Authority, its officers and employees while acting in the course and scope of
their duties or employment.
No person or entity is a Protected Party with respect to the conduct of any current or
past partnership, joint venture or joint powers authority (including any separate entity
created pursuant to a joint powers agreement). However, for any person who is an
official or Employee of a Member, who participates in the activities of a partnership,
joint venture, or joint powers authority and is acting for or on behalf of the Member at
the time of the Occurrence, protection is afforded by this Memorandum. Such
coverage shall be in excess of, and shall not contribute with, any collectible insurance,
self-insurance or other coverage provided to the other joint powers authority, agency or
entity.
Protection Period means the time period shown on the Cover Page of this
Memorandum.
Public Officials Errors and Omissions means any act, error, omission, misstatement,
misleading statement, neglect, or breach of duty by any Protected Party in the discharge
of that individual's duties for the Member; or any matter claimed against any Protected
Party solely by reason of the individual being or having been an employee of the
Member. Public Officials Errors and Omissions does not include Bodily Injury,
Property Damage, Personal Injury, Broadcast/Publication Injury, or Employment
Practices Injury.
Memorandum of Liability Coverage Page 11 of 25 July 1, 20 10 — July 1, 2011
Quiet Zone means a segment of a rail line, within which is situated one or a number of
consecutive public highway -rail crossings at which locomotive horns are not routinely
sounded. Quiet Zone includes partial quiet zone, a segment of a rail line within which is
situated one or a number of consecutive public highway -rail grade crossings at which
locomotive horns are not routinely sounded for a specified period of time during the
evening and/or nighttime hours. Quiet Zone also includes all vehicle or pedestrian
crossings wherein the Protected Party has agreed to provide localized or "wayside"
horns at the crossing in lieu of a locomotive sounding its horn.
Radioactive Contamination Injury means Bodily Injury or Property Damage caused
by or arising from ionizing radiations or contamination by radioactive material.
Suit means a civil proceeding in which a Protected Party is named as a defendant or
cross defendant, or an arbitration proceeding or alternative -dispute resolution proceeding
to which a Protected Party submits with the Authority's written consent.
Termination for Cause means dismissal, discharge, termination of employment, or
failure to renew a contract for the reasons stated in 29 USC § 1111 of the Employee
Retirement Income Security Act of 1974. This includes ending the employment of a City
Manager because the City Manager has been convicted of robbery, bribery, extortion,
embezzlement, fraud, grand larceny, burglary, arson, a felony violation of a state or
federal law regulating a controlled substance (felony drug conviction), murder, rape,
kidnapping, perjury, assault with intent to kill, or any felony involving abuse or misuse of
the City Manager's position to obtain illegal personal gain.
Tort Liability means civil liability that would be imposed by law in the absence of any
agreement or contract.
Unemployment Protection Payment means a payment that shall be paid once a month,
for a time period not to exceed six months (the "Payment Period") following the Waiting
Period, that shall equal the amount of the City Manager's salary at the time of the
termination of employment Occurrence plus payment of the Medical Benefit less any
amount of compensation earned, while self-employed or as an employee, or any other
payment received as a result of the Occurrence during the Payment Period.
"Salary," for purposes of this Unemployment Protection Payment, means the
regular monthly compensation of the City Manager, whether paid monthly, bi-
weekly, semi-monthly, or otherwise, and does not include Benefits, bonuses, car
allowances, expenses, or other allowances, contributions to the Public Employees
Retirement System or any deferred compensation payments made on behalf of the
City Manager by the Protected Party.
Waiting Period means a period of time after the termination of employment Occurrence
equal to the greater of (1) six months or (2) the number of months of salary received by
the City Manager as a severance payment from the Member.
Waiver means a full and complete relinquishment by a City Manager of any and all
rights to sue a Protected Party for any Benefit, compensation, injury, or damages,
known or unknown, past, present or future, arising out of the employment of, termination
of the employment of, or failure to employ the City Manager. The Waiver must be
Memorandum of Liability Coverage Page 12 of 25 July 1, 2010 —July 1, 2011
signed and returned to the Authority within 60 days following the tennination of
employment.
Watercraft means a vessel, more than 25 feet in length, designed to transport persons or
property in, on, or through water.
4. EXCLUSIONS
This Memorandum, including any obligation to defend or to pay Defense Costs, does
not apply to:
A. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of the ownership, maintenance, use or operation of any Watercraft,
Aircraft, or Airport. Protection does apply to use of an Aircraft or Watercraft, if
the Aircraft or Watercraft is not owned in whole or in part by the Member and the
Member exercises no part in the servicing or maintenance of the Aircraft or
Watercraft. However, this limited protection does not apply to:
(i) Loss, loss of use of, or damage to the Aircraft or Watercraft; or
(ii) Use of any Aircraft or Watercraft for hire or reward.
B. Any Claim, Suit, obligation or alleged obligation for which a Protected Party or
any insurance company as his/her/its insurer may be held liable under any workers'
compensation, unemployment compensation or disability benefits law, or under any
similar law.
C. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Bodily Injury
to:
(i) An employee of the Protected Party arising out of and in the course of
employment by the Protected Party; or
(ii) The spouse, child, parent, brother, or sister of that employee as a consequence
of paragraph (i) above.
This Exclusion C. applies whether the Protected Party may be liable as an
employer or in any other capacity, and to any obligation to share damages with or
repay someone else who must pay damages because of the injury. However, this
exclusion does not apply to liability assumed in a Protected Contract or Limited
Protected Contract.
D. Injury to or destruction of.-
(i)
f:(i) Property owned by the Protected Party;
(ii) Property rented to or leased to the Protected Party where it has assumed
liability under any contract for damage to or destruction of such property
unless the Protected Party, would have been liable in the absence of such
assumption of liability; or y
(iii) Property in the care, custody, or control of any Protected Party.
Memorandum of Liability Coverage Page 13 of 25 July 1, 2010—July 1, 2011
E. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, arising
out of or in any way connected with the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation, by whatever name
called, whether such liability accrues directly against the Protected Party or by
virtue of any agreement entered into by or on behalf of the Protected Party. This
exclusion E. shall not apply to liability, loss, cost or expense arising from property
damage caused by earth movement, subsidence of land, flooding not caused by the
failure of a Dam or Levee, or sewer backup, even though a legal theory upon which
a claimant seeks recovery is the principle of inverse condemnation.
F. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
actual, alleged or threatened discharge, dispersal, seepage, migration, release,
escape, or any other forms of exposure to or the presence of Pollutants/Hazardous
Materials including any Claim, Suit, liability, alleged liability, loss, cost or
expense directly or indirectly caused by or arising out of any:
(i) Request, demand, or order that any Protected Party or others test for,
monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any
way respond to, or assess the effects of Pollutants/Hazardous Materials;
(ii) Claim or Suit by or on behalf of a governmental authority or any other entity
or person for costs of or damages because of testing for, monitoring, cleaning
up, removing, containing, treating, detoxifying, or neutralizing, or in any way
responding to, or assessing the effects of Pollutants/Hazardous Materials; or
(iii) Actions or steps taken to mitigate damages or to relocate persons, property or
business as a result of Pollutants/Hazardous Materials.
EXCEPTION TO EXCLUSION, PROTECTION FOR CERTAIN ACCIDENTAL
POLLUTION INJURIES. However this Exclusion F. does not apply to Bodily
Injury or Property Damage arising out of or caused by any actual, alleged or
threatened discharge, dispersal, seepage, migration, release or escape of
Pollutants/Hazardous Materials if:
(i) It was directly caused by Hostile Fire, explosion, lightning, windstorm,
vandalism or malicious mischief or collision, overturning or upset of a motor
vehicle or railroad vehicle; and
(ii) It was accidental and was neither expected nor intended by the Protected
Party; and
(iii) It was instantaneous and was demonstrable as having commenced at a specific
time and date during the term of this Memorandum; and
(iv) Its commencement became known to the Protected Party within seven days;
and
(v) Its commencement was reported in writing to the Authority within twenty
days of becoming known to the Protected Party; and
Memorandum of Liability Coverage Page 14 of 25 July 1, 2010 — July 1, 2011
(vi) Reasonable efforts were expended by the Protected Party to correct or
tenninate the discharge, dispersal, seepage, migration, release, or escape of
Pollutants/Hazardous Materials. ,
Nothing contained in this EXCEPTION TO EXCLUSION, PROTECTION FOR
CERTAIN ACCIDENTAL POLLUTION INJURIES shall operate to provide any
protection or obligation to defend or pay Defense Costs with respect to:
(i) Any site or location used by others on the Protected Party's behalf for the
handling, storage, disposal, dumping, processing, or treatment of waste
material. This exclusion applies whether or not the action by others was
known to the Protected Party;
(ii) Any clean-up costs mandated by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and any similar laws
or statutes;
(iii) Clean up, removal, containment, treatment, detoxification or neutralization of
Pollutants/Hazardous Materials situated on premises the Protected Party
currently owns, rents or occupies; or
(iv) Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon
or arising out of Personal Injury or Public Officials Errors and Omissions.
G. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly based on or arising out of the hazardous properties of Nuclear Material.
However, this exclusion does not apply to Radioactive Contamination Injury.
H. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly caused by any complete or partial failure, interruption or surge in the
supply of water, electrical power, gas or fuel, unless such failure, interruption or
surge results from sudden and accidental physical destruction of tangible property
which is caused by the Protected Party.
I. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
partial or complete structural failure of a Dam or Levee.
Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, or
arising out of, or in connection with the operation of any hospital, clinic (including a
mobile clinic), or established health-care facility owned or operated by the
Protected Party, but protection does apply to liability arising out of the rendering
of emergency medical aid by paramedics, emergency medical technicians, or other
Protected Parties who are not acting in the course of their employment by a
hospital, clinic, or established health-care facility. Protection also applies for
liability arising out of the operation of any hospital, clinic (including a mobile
clinic) or established health care facility, owned and operated by the Protected
Party for animal care and control purposes.
K. Any Claim, Suit, liability, alleged liability; loss, cost, or expense caused by or
arising out of or in connection with:
(i) the ownership, maintenance, use, or operation by the Protected Party, of any
railroad; or
Memorandum of Liability Coverage Page 15 of 25 July 1, 2010 — July 1, 2011
(ii) the establishment, designation, or implementation of a Quiet Zone.
(iii) the use of localized or "wayside" horns by the Protected Party in lieu of a
locomotive using its horn as a warning at pedestrian or vehicle crossings
L. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, based
upon or arising out of the Employee Retirement Income Security Act of 1974,
Public Law 93-406, or any amendment or addition thereto, or any statute or
common law rule which imposes fiduciary duties and responsibilities with respect to
employee benefits or retirement plans; however this exclusion does not apply to
liability protected under Employee Benefit Administration Liability.
M. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages or
fines or other damages imposed primarily for the sake of example and by way of
punishing the Protected Party, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or pay
damages for a Claim, action or judgment for punitive or exemplary damages.
N. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by the
intentional conduct of a Protected Party with willful and conscious disregard of the
rights or safety of other or with malice. However, where the Protected Party did
not authorize, ratify, participate in, consent to or have knowledge of such conduct
by its past or present Employee, elected or appointed official or volunteer and the
claim against the Protected Party is based solely on its vicarious liability arising
from its relationship with such Employee, elected or appointed official or volunteer,
this exclusion does not apply to that Protected Party.
O. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of any violation of state or federal antitrust or restraint -of -trade laws.
P. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of:
(i) the adoption or administration of any ordinance, resolution or regulation; or
(ii) the approval or disapproval of any land -use entitlement including but not
limited to general plan amendments, zoning amendments, conditional -use
permits, tract maps, development agreements, owner -participation
agreements, or disposition -and -development agreements; or
(iii) the approval or disapproval of any rent control ordinance, outdoor advertising
ordinance, or adult bookstore ordinance.
This exclusion shall not apply to claims of neglect or failure to enforce any law.
Q. Any Claim, Suit, liability, alleged liability, loss, cost, or expense including Tort
Liability:
(i) Arising out of or as a consequence of an actual or alleged breach of any
contract or agreement;
(ii) For any amount actually or allegedly due under the terms of any contract or
agreement; or
Memorandum of Liability Coverage Page 16 of 25 July 1, 2010 — July 1, 2011
(iii) Arising out of or as a consequence of the failure, refusal, or inability of a
Protected Party or anyone acting on behalf of a Protected Party to enter
into or renew any contract or agreement.
However, this Exclusion P. shall not apply to Tort Liability imposed by law for
Damages caused by, arising out of, or as a consequence of failure or delay by a
Protected Party or anyone acting on behalf of a Protected Party to fully perform
any duties or obligations under any contract or agreement.
As used in this Exclusion P., the term "contract or agreement' shall include but not
be limited to a Protected Contract or Limited Protected Contract.
R. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for declaratory,
injunctive, equitable or other relief, writs of mandate or prohibition or other
prerogative writs, or other relief not seeking Damages. This includes any expense
or cost incurred by a Protected Party arising from the cost of reasonable
accommodation of any disabled person, including any Employee.
S. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Personal
Injury or Broadcast/Publication Injury directly or indirectly caused by or arising
out of any:
(i) Oral or written publication of material, if done by or at the direction of the
Protected Party with knowledge of its falsity;
(ii) Oral or written publication of material whose first publication took place
before the beginning of the Protection Period; or
(iii) Act, omission, or offense committed by a Protected Party with actual malice.
T. Any liability for which the Protected Party is obligated to pay damages by reason
of liability assumed in a contract or agreement. This Exclusion does not apply to
liability for Bodily Injury or Property Damage:
(i) Assumed in a contract or agreement that is a Protected Contract or Limited
Protected Contract; or
(ii) That the Protected Party would have independent of a written contract or
agreement.
U. Any Claim or Suit by a Member against a Protected Party, except that this
section shall not apply to a Claim or Suit brought against the Authority.
V. Any Claim or Suit by a Member against another Member.
W. Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon or
arising out of:
(i) Loss of, loss of use of, injury to, destruction of, diminution of value of,
disappearance of, or costs of recovery of any money or securities, or any
financial loss or default;
(ii) Refunds of taxes, fees, or assessments;
Memorandum of Liability Coverage Page 17 of 25 July 1, 2010 — July 1, 2011
(iii) The issuance, management of proceeds or repayment of bonds, notes or other
debt instruments by any Member or any agent acting on behalf of such
Member; or
(iv) The purchase, transfer, or sale of any securities by any Member or agent
acting on behalf of such Member.
X. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Public
Officials Errors and Omissions Liability based upon or arising out of:
(i) Liability of any Protected Party arising out of estimates of probable costs or
cost estimates being exceeded or for faulty preparation of bid specifications or
plans including liability for mechanic's lien claims, stop notice claims, change
order claims, site differential claims, or similar claims for the value of services
or materials provided; this exclusion extends to such claims however
denominated, including claims of breach of oral or written contract, third
party beneficiary claims, quantum meruit claims, and/or open account claims;
(ii) Any Protected Party obtaining remuneration or financial gain to which the
Protected Party is or was not legally entitled;
(iii) Liability assumed by a Protected Party in a contract or agreement, but this
exclusion does not apply to liability for Damages that the Protected Party
would have independent of the contract or agreement; or
(iv) Willful violation of penal code or ordinance committed by or with the
knowledge or consent of any Protected Party.
Y. Under Employment Practices Injury, any Claim, Suit, liability, alleged liability,
loss, cost, or expense that:
(i) Constitutes benefits due or to become due or the equivalent value of such
benefits, including but not limited to perquisites, fringe benefits, payments in
connection with an employee benefits plan, or any other payment other than
salary or wages to or for the benefit of an employee arising out of the
employment relationship;
(ii) Is representative of back salary either unpaid in whole or part or paid at an
improper rate to an Employee by the Protected Party.
(iii) Is based upon, arises from, or is in consequence of the employment
reinstatement of the claimant by the Member or the continued employment of
the claimant;
(iv) Is based upon, arises from, or is a consequence of an Occurrence that began
prior to this Memorandum's Protection Period;
(v) Constitutes front pay, future damages or other future economic relief or the
equivalent thereof, if the Member has the option pursuant to a judgment or
other final adjudication but fails to reinstate the claimant as an employee; or
(vi) Is based upon, arises from or is in consequence of an actual or alleged
violation of the responsibilities, obligations or duties imposed by the
Employee Retirement Income Security Act of 1974, the Fair Labor Standards
Memorandum of Liability Coverage Page 18 of 25 July 1, 2010 — July 1, 2011
5.
Act, the National Labor Relations Act, the Worker Adjustment and Retraining
Notification Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, the Occupational Safety and Health Act, rules or regulations
promulgated there under and amendments thereto or similar provisions of any
federal, state, or local statutory law or common law.
However, with respect to the exclusions listed in items (i) through (vi) immediately
above, no fact pertaining to or knowledge possessed by any Protected Party shall
be imputed to any other Protected Party to determine if protection is available
under this Memorandum.
Z. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Employee
Benefit Administration Liability based upon or arising out of:
(i) Any dishonest, fraudulent, criminal or malicious act, libel, slander,
discrimination, or humiliation;
(ii) Failure of performance of contract by an insurer;
(iii) Failure of any investment plan to perform as represented by a Protected
Party;
(iv) Advice given by a Protected Party, to an Employee to participate or not
participate in subscription plans; or
(v) The inability of any Employee Benefits Program to meet its obligations due
to insolvency or inadequacy of funding.
AA. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for termination of
a City Manager's employment based upon or arising out of:
(i) Termination for Cause;
(ii) Lack of a duly executed Waiver; or
(iii) Lack of a duly executed Certification.
CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Protected Party's
property and operations at any time. Neither the Authority's right to make inspections
nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of
or for the benefit of the Protected Party or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulations. The Authority may examine and audit the Protected Party's books and
records at any time during the Protection Period and extensions thereof and within three
years after the final termination of this Program, as far as they relate to the subject
matter of this Memorandum.
Memorandum of Liability Coverage Page 19 of 25 July 1, 2010 —July 1, 2011
B. Severability of Interest
The term Protected Party is used severally and not collectively, and the protection
afforded applies to each Protected Party against whom a Claim is made as if a separate
Memorandum were issued to it, but the inclusion herein of more than one Protected
Party shall not operate to increase the per Member Protection Limit.
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
(i) In the event of any Occurrence, written notice containing particulars
sufficient to identify the Protected Party and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and the
names and addresses of the injured and of available witnesses, shall be given
by or for the Protected Party to the Authority's Claims Administrator as
soon as practicable.
(ii) If a Claim is made against a Protected Party, the Protected Party shall
immediately forward to the Authority's Claims Administrator every demand,
notice, summons or other process received by the Protected Party or the
Protected Party's representative.
(iii) The Authority's Claims Administrator will review the Claim, undertake
whatever investigation is indicated, and take appropriate action, depending on
the circumstances. A Claim may be returned to claimant as "insufficient," if
it does not contain minimum and essential information about the incident or
the identity of the claimant. A Claim may also be returned as "late," if the
prescribed time for filing has been exceeded. The Claims Administrator may
request that the Member reject the Claim, or take no action until further
notice, or such actions may be taken by the Claims Administrator if claims
handling authority has been delegated to the Authority by the Member.
(iv) The Protected Party shall cooperate with the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of Suits, and
in enforcing any right of contribution or indemnity against any person or
organization who may be liable to the Protected Party because of injury or
damage with respect to which protection, including any Defense obligation, is
afforded under this Memorandum; and the Protected Party shall not, except
at the Protected Party's own cost, voluntarily make any payment, assume
any obligation or incur any expense. No Claim shall be settled without the
prior written consent of the Authority, and the Authority shall not be
required to contribute to any settlement to which it has not consented.
D. Other Protection
If collectible insurance or any other coverage or protection with any insurer, any
permissibly self-insured general employer, joint powers insurance authority or any other
source is available to the Protected Party covering a loss also protected hereunder
(whether on a primary, excess or contingent basis), the protection hereunder (including
any Defense obligation) shall be in excess of, and shall not contribute with, such
insurance or other coverage or protection, provided that this clause does not apply with
respect to any insurance purchased by a Protected Party specifically to be in excess of
Memorandum of Liability Coverage Page 20 of 25 July 1, 2010 —July 1, 2011
this Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such insurance,
coverage, or other protection, unless agreed to by the Member through a written
agreement approved by the Authority through the issuance of an evidence of coverage
letter prior to a loss.
E. Termination orAmendment
This Memorandum may be tenninated or amended at any time in accordance with the
Joint Powers Agreement and Bylaws of the Authority.
F. Changes
Notice to any agent or knowledge possessed by any agent of the Authority or by any
other person shall not effect a waiver of or a change in any part of this Memorandum,
nor shall the terns of this Memorandum be waived or changed, except by a written
addendum issued by the Authority to form a part of this Memorandum.
G. Subrogation
The Authority shall reserve the right to subrogate for any payments made hereunder and
to assume the Protected Party's recovery rights. The Protected Party shall do nothing
after loss to prejudice such rights and shall do everything necessary to secure such rights.
The Protected Party may waive subrogation rights, but only through written agreement
executed before the Occurrence giving rise to the loss. The Authority shall have
standing to seek subrogation recovery in its own name or in the name of the Protected
Party, and the Protected Party shall cooperate with and assist the Authority in pursuing
such recovery, including assigning its right to recover subrogated amounts, and if
necessary executing a written agreement to effect such assignment. Any amount so
recovered shall be apportioned as follows:
(i) The Authority shall be reimbursed to the extent of all payment under this
Memorandum. Any remaining balance shall be applied to reimburse the
Protected Party;
(ii) The expenses of such recovery proceedings shall be apportioned in the ratio of
respective recoveries. If there is no recovery in proceedings conducted solely by the
Authority, the Authority shall bear the expenses thereof.
H. Assignment
Assignment of interest under this Memorandum shall not bind the Authority until its
consent is endorsed hereon; if, however, the Member shall be adjudged bankrupt or
insolvent, such protection and Defense obligations as are afforded by this Memorandum
shall apply (a) to Member's legal representative, as the Member, but only while acting
within the scope of said representative's duties as such, and (b) with respect to the
property of the Member, to the person having proper temporary custody thereof, as a
Protected Party, but only until the appointment and qualification of a legal
representative.
Memorandum of Liability Coverage Page 21 of 25 July 1, 2010 — July 1, 2011
Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms and
provisions of the Agreement creating the Authority, and in the event of any conflict
between the terms and provisions of said Agreement and this Memorandum, the terms
and provisions of the Agreement shall control.
Appeal of Disputes
No party is entitled to appeal or arbitrate claims under this Memorandum other than the
Member. Specifically, Employees are not intended to be third party beneficiaries of this
agreement and shall have no right to bring an action against the Authority for a
declaration of rights to protection under this Memorandum. The sole remedy of any
Employee shall be the Employee's right to defense or indemnity against the employing
Member under the provisions of the California Government Code.
Any disputes concerning coverage, protection, Defense obligations, or procedures of the
Program, as interpreted by the Authority's staff, shall be appealed to the Authority's
Executive Committee in accordance with the following procedures.
(i) A written notice that a Claim is not covered by the Memorandum will
normally be provided to the Member by the Claims Administrator. A
Member may request any determination of a lack of coverage made by the
Claims Administrator to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of the
written notice from the Claims Administrator.
(ii) Upon request, the Chief Executive Officer shall review a determination of a
lack of coverage made by the Claims Administrator or Authority staff and
shall send to the Member a written determination of coverage.
(iii) If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees. Appeals
must be in writing within 90 days of the date of the Chief Executive Officer's
written decision. The appeal request must state why the Member disagrees
with the denial, and the Member should present any information that may
have a bearing on the ultimate determination of coverage.
(iv) The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall notify
the Member in advance of the meeting at which its appeal will be presented.
(v) If the Member would like to personally address the Appeals Committee, the
Member or the Member's representative may attend the meeting and speak
to the issue.
(vi) The Appeals Committee may refer the appeal to the Coverage Committee and
consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Memorandum of Liability Coverage Page 22 of 25 July 1, 2010 - July 1, 2011
i
Authority staff will notify the Member of the Appeals Committee's decision
in writing.
(vii) Following a final detennination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
Occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in this paragraph
J., upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
If a Member disputes a coverage issue, then, during the course of the administrative and
arbitration proceedings provided herein, the Authority shall defend the Claim against the
Member and have the right to control any settlement of that Claim, subject to the right
of the Authority to recover from the Member any amounts paid out by the Authority
for such defense or settlement which are finally detennined by the Appeals Committee,
or as a result of the Binding Arbitration Process, not to be owed by the Authority under
the Program.
K. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5.J. Appeal of
Disputes and disagrees with the final determination of the Appeals Committee, the
Member may request consideration of the coverage issue through the Authority's
Binding Arbitration Process.
The Arbitration process shall be as follows:
(i) Following a decision by the Appeals Committee, the appealing Member shall
notify the Chief Executive Officer in writing, within 30 days of the Appeals
Committee's final decision, that it wishes to participate in Binding Arbitration
and shall submit a non-refundable $1,000 arbitration appeal fee. The written
notice shall specify the grounds for the arbitration.
(ii) Following payment of the arbitration appeals fee, the name of each Member,
other than the appealing Member and the Members represented on the
Appeals Committee, shall be placed in an unmarked envelope. Each envelope
shall be placed in a box and eleven envelopes shall be drawn by the Chief
Executive Officer. A representative of the appealing Member may be present
at the drawing.
(iii) The City Managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their City Managers shall
be given in writing to the appealing Member.
(iv) The appealing Member shall have the right to strike two or less names from
the pool for any reason which shall not be disclosed. The Authority shall
have the right to strike two or less names from the pool for any reason which
shall not be disclosed. The appealing Member and the Authority must strike
Memorandum of Liability Coverage Page 23 of 25 July I, 2010 — July 1, 2011
names within five business days of the drawing. The right of either party to
strike names shall lapse at 5:00 PM on the fifth day following the drawing.
Notice of names stricken by either party shall be given in writing to the other
party prior to 5:00 PM on the fifth day following the drawing.
(v) The remaining City Managers shall be contacted by the Chief Executive
Officer to determine their willingness to serve on the arbitration panel. If
more than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be the
arbitration panel and they shall be disclosed in writing to the appealing
Member.
(vi) If only five are willing to serve, they shall be the arbitration panel.
(vii) If fewer than five are willing to serve, the name of each member not drawn in
the previous selection drawing shall be placed in an unmarked envelope, put
in a box, and four envelopes shall be drawn for each arbitration panel position
needed to have a five -member panel. A representative of the appealing
Member may be present at the drawing. The names drawn shall be disclosed
to the appealing Member who may reject, for any reason which shall not be
disclosed, one name for each four names drawn. The Authority may also
reject one name for each four names drawn and shall not disclose the reason.
Names rejected by the appealing Member and the Authority must be rejected
within 48 -hours of the drawing. The right to reject names shall lapse 48 -hours
following the drawing.
(viii) The City Managers of the Members remaining shall be contacted by the
Chief Executive Officer to determine their willingness to serve on the
arbitration panel. The names of those willing to serve shall be placed in
unmarked envelopes, put in a box, and the number necessary to fill out the
arbitration panel shall be drawn by the Chief Executive Officer and disclosed
in writing to the appealing Member. A representative of the appealing
Member may be present at the drawing.
(ix) This process shall be repeated until five members are obtained for the
arbitration panel.
(x) The arbitration panel members shall be compensated at the rate of $125 per
half-day or portion thereof. If a panel member is required to stay away from
home overnight, lodging shall be paid by the Authority. Necessary meals
shall be provided for all panel members. Mileage costs shall be reimbursed by
the Authority at its standard rate.
(xi) The cost of the arbitration panel shall be borne by the Authority. The cost of
presentation by the appealing Member, including preparation, exhibits,
attorneys, and all other costs of the Member shall be paid by the Member.
(xii) The arbitration panel may request legal counsel that shall be selected by the
Chief Executive Officer and paid for by the Authority. Legal counsel shall
not be the counsel for the Authority that has advised the staff and Executive
Memorandum of Liability Coverage Page 24 of 25 July I, 2010 — July I, 2011
Committee. However, counsel for the Authority may participate in or make
the presentation to the arbitration panel on behalf of the Authority, as
requested by the Chief Executive Officer.
(xiii) The parties to the arbitration shall not be governed by formal rules of
evidence.
(xiv) The arbitration panel's decision shall be final and binding on the Member and
the Authority. Decisions of the arbitration panel shall be by majority vote.
(xv) The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future arbitration
panels for precedent.
Memorandum of Liability Coverage Page 25 of 25 July I, 2010 — July I, 2011
Joint Powers Agreement
California Joint Powers Insurance Authority
Adopted August 20, 2009
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INTEGl1TY
EXCELLENCE
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TEAMWORK
CALIFORNIA
Providing Innovative Risk Management Solutions For Our Public Agency Partners ) r ' I A
TABLE OF CONTENTS
ARTICLE1 - DEFINITIONS....................................................................................................................................2
ARTICLE2 - PURPOSES..........................................................................................................................................3
ARTICLE3 - PARTIES TO AGREEMENT............................................................................................................3
ARTICLE4 - TERM OF AGREEMENT.................................................................................................................4
ARTICLE5 - CREATION OF AUTHORITY.........................................................................................................4
ARTICLE 6 - POWERS OF AUTHORITY.............................................................................................................4
ARTICLE7 - BOARD OF DIRECTORS.................................................................................................................5
ARTICLE 8 - POWERS OF THE BOARD OF DIRECTORS...............................................................................5
ARTICLE 9 - MEETINGS OF THE BOARD OF DIRECTORS...........................................................................6
ARTICLE 10 - EXECUTIVE COMMITTEE..........................................................................................................6
ARTICLE 11 - POWERS OF THE EXECUTIVE COMMITTEE........................................................................6
ARTICLE 12 - MEETINGS OF THE EXECUTIVE COMMITTEE....................................................................7
ARTICLE 13 - CLAIMS COMMITTEE..................................................................................................................8
ARTICLE 14 - OFFICERS OF THE AUTHORITY...............................................................................................8
ARTICLE 15 - ADVISORY COMMITTEES...........................................................................................................9
ARTICLE16 - COVERAGE......................................................................................................................................9
ARTICLE 17 - DEVELOPMENT OF THE JOINT PROTECTION PROGRAMS.....:.......................................9
ARTICLE 18 - ACCOUNTS AND RECORDS......................................................................................................10
ARTICLE 19 - RESPONSIBILITY FOR MONIES..............................................................................................11
ARTICLE 20 - RESPONSIBILITIES OF THE AUTHORITY............................................................................11
ARTICLE 21 - RESPONSIBILITIES OF MEMBERS.........................................................................................12
ARTICLE 22 - NEW MEMBERS............................................................................................................................13
ARTICLE 23 - PROGRAM PARTICIPATION....................................................................................................13
ARTICLE 24 - WITHDRAWAL.............................................................................................................................14
ARTICLE 25 - EFFECT OF WITHDRAWAL......................................................................................................14
ARTICLE 26 - CANCELLATION OF PROGRAM PARTICIPATION.............................................................15
ARTICLE 27 - CANCELLATION OF MEMBERSHIP.......................................................................................15
ARTICLE 28 - CANCELLATION FOR NON-PAYMENT..................................................................................16
ARTICLE 29 - ATTORNEY FEES AND COSTS OF COLLECTION...............................................................16
ARTICLE 30 - TERMINATION AND DISTRIBUTION.....................................................................................16
ARTICLE 31 - PROVISION FOR BYLAWS.........................................................................................................17
ARTICLE32 - NOTICES.........................................................................................................................................17
ARTICLE33 - AMENDMENT................................................................................................................................17
ARTICLE 34 - PROHIBITION AGAINST ASSIGNMENT.................................................................................18
ARTICLE35 - AGREEMENT COMPLETE.........................................................................................................18
JOINT POWERS AGREEMENT
CREATING THE CALIFORNIA
JOINT POWERS INSURANCE AUTHORITY
THIS AGREEMENT is made and entered into by and among the public entities
organized and existing under the Constitution or laws of the State of California, hereinafter
collectively referred to as "Members" and individually as "Member" which are parties signatory
to this Agreement. Said Members are sometimes referred to herein as "parties."
RECITALS:
WHEREAS, California Government Code Section 6500 et seq. provides that two or more
public agencies may by agreement jointly exercise any power common to the contracting parties;
and
WHEREAS, California Government Code Section 990.4 provides that a local public
entity may self -insure, purchase insurance through an authorized carrier, or purchase insurance
through a surplus line broker, or any combination of these; and
WHEREAS, California Government Code Section 990.8 provides that two or more local
public entities may, by ajoint powers agreement, provide insurance for any purpose by any one
or more of the methods specified in Government Code Section 990.4; and
WHEREAS, each of the parties to this Agreement desires to join together with the other
parties for the purpose of pooling their self-insured losses and jointly purchasing excess
insurance and administrative services in connection with one or more joint protection programs
for said parties; and
WHEREAS, it appears economically feasible and practical for the parties to this
Agreement to do so;
NOW, THEREFORE, for and in consideration of all of the mutual benefits, covenants
and agreements contained herein, the parties hereto agree as follows:
Joint Powers Agreement Page I of 18 Adopted August 20, 2009
ARTICLE l - DEFINITIONS
The following definitions shall apply to the provisions of this Agreement:
(a) "Advisory Committee" shall mean the Managers Committee, Finance Officers
Committee, and any other committee created by the Board of Directors or Executive Committee
for the purpose of providing specialized advice to the Board of Directors or Executive
Committee on the subject matter brought before it.
(b) "Authority" shall mean the California Joint Powers Insurance Authority created
by this Agreement.
(c) 'Board of Directors" or 'Board" shall mean the governing body of the Authority.
(d) "Chief Executive Officer" shall mean that employee of the Authority who is
appointed by the Executive Committee, and is granted authority and responsibility for the
management and administration of the Authority and its joint protection programs.
(e) "Claims" shall mean demands made against the Authority, a Member, or
Members arising out of occurrences, which are within an Authority joint protection program as
developed by the Executive Committee.
(f) "Deposit" shall mean an annual dollar amount determined by the Executive
Committee, which is to be paid by the Member as its established share of funding required to
cover the financial obligations of each joint protection program in which the member
participates.
(g) "Director" shall mean that person selected by and from the legislative body of
each Member to represent the Member on the Board of Directors pursuant to Article 7 of this
Agreement.
(h) "Executive Committee" shall mean the Executive Committee of the Board of
Directors of the Authority.
(i) "Finance Officers Committee" shall mean the committee of the Authority
composed of the Finance Directors or chief finance officers of the Members by whatever title
locally designated.
0) "Fiscal Year" shall mean that period of twelve months which is established as the
fiscal year of the Authority.
(k) "Insurance" shall mean and include self -pooled insurance through a funded
program and/or any commercial insurance, excess insurance, or re -insurance contract purchased
Joint Powers Agreement Page 2 of 18 Adopted August 20, 2009
on behalf of the Authority to protect the funds of the Authority against catastrophes or an
unusual frequency of losses during a specific coverage period.
(1) "Managers Committee" shall mean the committee of the Authority composed of
the City Managers, City Administrators, or chief executive officers of the Members by whatever
title locally designated.
(m) "Secretary" shall mean the person selected by the Executive Committee from
among its members to serve as Secretary of the Authority.
(n) "Treasurer" shall mean the person selected by the Executive Committee to serve
as Treasurer of the Authority.
ARTICLE 2 - PURPOSES
This agreement is entered into by the Members pursuant to the provisions of California
Government Code Sections 990, 990.4, 990.8, and 6500 et seq. in order to provide more
comprehensive and economical protection from financial loss, to reduce the amount and
frequency of their losses, and to decrease the cost incurred in the handling and litigation of
claims. This purpose shall be accomplished through the exercise of the powers of the Members
jointly in the creation of a separate entity, the California Joint Powers Insurance Authority (the
Authority), to administer joint protection programs wherein Members will pool their losses and
claims, jointly purchase insurance and administrative and other services, including claims
adjusting, data processing, risk management consulting, loss prevention, training, legal, and
related services.
It is also the purpose of this Agreement to provide, to the extent permitted by law, for the
inclusion at a subsequent date of such additional public entities organized and existing under the
Constitution or laws of the State of California as may desire to become parties to this Agreement.
ARTICLE 3 - PARTIES TO AGREEMENT
Each party to this Agreement certifies that it intends to and does contract with all other
parties who are signatories of this Agreement and, in addition, with such other parties as may
later be added as parties to and signatories of this Agreement pursuant to Article 22. Each party
to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to
Joint Powers Agreement Page 3 of 18 Adopted August 20, 2009
Articles 24, 26, 27, or 28 shall not affect this Agreement nor such party's intent to contract as
described above with the other parties to the Agreement then remaining.
ARTICLE 4 - TERM OF AGREEMENT
This Agreement became effective on June 29, 1977 and shall continue until and unless
terminated as hereinafter provided.
ARTICLE 5 - CREATION OF AUTHORITY
Pursuant to Section 6500 et sea• of the California Government Code, there is hereby
created a public entity separate and apart from the parties hereto, to be known as the California
Joint Powers Insurance 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 party to this Agreement.
ARTICLE 6 - POWERS OF AUTHORITY
(a) The Authority shall have the powers common to its Members and is hereby
authorized to do all acts necessary for the exercise of said common powers, including, but not
limited to, any or all of the following:
To make and enter into contracts;
To incur debts, liabilities or obligations;
To acquire, hold or dispose of property, contributions and donations of
property, funds, services and other forms of assistance from persons, firms, corporations and
governmental entities;
To sue and be sued in its own name; and
To exercise all powers necessary and proper to carry out the terms and
provisions of this Agreement, or otherwise authorized by law.
(b) Said powers shall be exercised pursuant to the terms hereof and in the manner
provided by law and are subject to the restrictions upon the manner of exercising the powers of
the City of Lakewood.
Joint Powers Agreement Page 4 of 18 Adopted August 20, 2009
ARTICLE 7 - BOARD OF DIRECTORS
(a) The Authority shall be governed by the Board of Directors which is hereby
established and which shall be composed of one representative Director from each Member, who
shall be selected from the legislative body of that Member by the process chosen by the Member.
(b) Each legislative body, in addition to appointing its Director of the Board, shall
appoint at least one alternate who shall be an officer or employee of the Member. The alternate
shall have the authority to attend, participate in, and vote at any meeting of the Board when the
regular Director for whom he or she is an alternate is absent from said meeting.
ARTICLE 8 - POWERS OF THE BOARD OF DIRECTORS
The Board of Directors of the Authority shall have the following powers and functions:
(a) The Board shall elect from its members pursuant to Article 10 of this Agreement
an Executive Committee to which it may give authority to make and implement any decisions,
including those involving the administration of the Authority, except those decisions that would
require an amendment of this Agreement, under Article 33 herein.
(b) The Board may review all acts of the Executive Committee, including
development of the memoranda of coverage and the operating budget, and shall have the power
to modify and/or override any decision or action of the Executive Committee upon a majority
vote of a quorum of the Board of Directors.
(c) The Board shall receive and review periodic accountings of all funds under
Articles 18 and 19 of this Agreement.
(d) The Board shall have the power to conduct on behalf of the Authority all business
of the Authority, including that assigned to the Executive Committee, which the Authority may
conduct under the provisions hereof and pursuant to law.
(e) The Board shall have such other powers and functions as are provided for in this
Agreement.
(f) The Board shall not have the power to overturn the decisions of the Claims
Committee in regard to the settlement of claims.
Joint Powers Agreement Page 5 of 18 Adopted August 20, 2009
ARTICLE 9 - MEETINGS OF THE BOARD OF DIRECTORS
(a) Meetings. The Board shall provide for its regular, adjourned regular and special
meetings; provided, however, that it shall hold at least one regular meeting annually at a time and
place determined by the Executive Committee.
(b) Minutes. The Secretary of the Authority shall cause minutes of regular, adjourned
regular and special meetings to be kept and shall, as soon as possible after each meeting, cause a
copy of the minutes to be forwarded to each member of the Board.
(c) Quorum. A majority of the Directors of the Board shall constitute a quorum for
the transaction of business, except that less than a quorum may adjourn from time to time. A
vote of the majority of those Directors present at a meeting shall be sufficient to constitute action
by the Board.
(d) Compliance with the Brown Act. All meetings of the Board, including, without
limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and
conducted in accordance with the provisions of the Ralph M. Brown Act, California Government
Code Section 54950 et seq.
ARTICLE 10 - EXECUTIVE COMMITTEE
There shall be an Executive Committee of the Board of Directors which shall consist of
nine (9) members, exclusive of any current Past President Ex Officio Executive Committee
Member. Two of the members of the Executive Committee shall be the President and Vice
President of the Board of Directors. The other members of the Executive Committee shall be
elected by the Board of Directors at the Annual Meeting for the terms provided in the Bylaws.
The President of the Authority, or the Vice President in his or her absence, shall serve as the
Chairperson of the Executive Committee.
ARTICLE 11 - POWERS OF THE EXECUTIVE COMMITTEE
The Executive Committee of the Board of Directors shall have the following powers:
(a) The Executive Committee shall determine and select joint protection programs for
the Authority including adoption of language of the Memoranda of Coverage and any limitations
or endorsements to such Memoranda.
Joint Powers Agreement Page 6 of 18 Adopted August 20, 2009
(b) The Executive Committee shall determine and select all insurance necessary to
carry out the joint protection programs of Authority.
(c) The Executive Committee shall have the authority to approve membership in the
Authority and Member participation in one or more joint protection programs in accordance with
Articles 22 and 23.
(d) The Executive Committee shall have the authority to cancel Member participation
in one or more joint protection programs in accordance with Articles 26 and 28.
(e) The Executive Committee shall adopt the operating budget of the Authority.
(f) The Executive Committee shall have authority to contract for or develop various
services for the Authority, including, but not limited to, claims adjusting, loss control, and risk
management consulting services.
(g) The Executive Committee shall receive and act upon reports of the Advisory
Committees and the Chief Executive Officer.
(h) The Executive Committee shall appoint the Treasurer and Chief Executive Officer
of the Authority.
(i) The Executive Committee shall have the power to hire such persons as the
Executive Committee deems necessary for the administration of the Authority.
Q) The Executive Committee shall have the general supervisory and policy control
over the day-to-day decisions and administrative activities of the Chief Executive Officer of the
Authority.
(k) The Executive Committee shall have such other powers and functions as are
provided for in this Agreement or as delegated by the Board of Directors, including the power to
create committees it deems necessary.
ARTICLE 12 - MEETINGS OF THE EXECUTIVE COMMITTEE
The meetings of the Executive Committee shall be held and conducted in the same
manner as the meetings of the Board of Directors, provided for in Article 9 of this Agreement
In addition, the Committee shall make periodic reports to the Board of Directors, advising the
Board of its decisions and activities concerning the implementation of the joint protection
programs of the Authority.
Joint Powers Agreement Page 7 of 18 Adopted August 20, 2009
ARTICLE 13 - CLAIMS COMMITTEE
The Executive Committee members, together with the Chairs of the Managers Committee
and the Finance Officers Committee, shall sit as the Claims Committee of the Authority. The
Claims Committee shall have authority to make all determinations regarding defense, indemnity,
and settlement of claims under the Memoranda of Coverage. Decisions of the Claims
Committee regarding settlement of claims shall be final and not subject to further review.
Decisions regarding coverage for defense or indemnity of claims shall be final, but subject to the
Member's appeal rights as detailed in the applicable Memorandum of Coverage.
ARTICLE 14 - OFFICERS OF THE AUTHORITY
(a) President and Vice President. The Board shall elect a President and Vice
President of the Authority, each to hold office for a two-year term, except as hereinafter
provided, and until a successor is elected. The election of the President and Vice President shall
be on alternate years. In the event the President or Vice President so elected ceases to be a
member of the Board, or for other reasons is unable to serve, the resulting vacancy in the office
of President or Vice President shall be filled at the next meeting of the Board held after such
vacancy occurs. In the absence or inability of the President to act, the Vice President shall act as
President. The immediate Past President shall serve as an ex officio, non-voting member of the
Executive Committee for a term of two years, and as long as he or she remains a member of the
Board of Directors.
(b) Chief Executive Officer. The Chief Executive Officer shall be authorized and
responsible for the overall management and administration of the Authority and its joint
protection programs and shall select and appoint all employees.
(c) Secretary. The Secretary shall be responsible for all minutes, notices and records
of the Authority and shall perform such other duties as may be assigned by the Executive
Committee.
(d) Treasurer. The duties of the Treasurer are set forth in Articles 18 and 19 of this
Agreement.
(e) Attorney. The Executive Committee shall select an attorney for the Authority.
The attorney shall serve at the pleasure of the Executive Committee.
Joint Powers Agreement Page 8 of 18 Adopted August 20, 2009
(f) The Executive Committee shall have the power to appoint such other officers as
may be necessary in order to carry out the purposes of this Agreement.
ARTICLE 15 - ADVISORY COMMITTEES
The Board of Directors or Executive Committee may establish Advisory Committees as deemed
necessary. Such Committees shall meet from time to time as deemed necessary by them, and
shall make recommendations to the Executive Committee based upon their expertise.
ARTICLE 16 - COVERAGE
(a) The coverage provided for Members through the Authority's joint protection
programs may include protection for Personal Injury, Errors and Omissions, Contractual and
Comprehensive Liability, Workers' Compensation and such other areas of coverage as the
Executive Committee may determine. Such coverage may be through insurance as defined in
Article 1.
(b) The Authority shall maintain limits of coverage for Members determined by the
Executive Committee to be adequate. The Executive Committee may arrange for a group policy
to be issued for Members interested in obtaining additional coverage above the limits of
coverage at an additional cost to those participating Members.
(c) The Executive Committee shall arrange for the purchase of insurance it deems
necessary to protect the funds of the Authority against catastrophes. The Executive Committee
shall have the authority to discontinue purchase of this insurance, if at a future time the
Executive Committee determines that it is no longer needed to protect the Authority's funds.
ARTICLE 17 - DEVELOPMENT OF THE JOINT PROTECTION PROGRAMS
(a) The joint protection programs provided by the Authority shall extend to agencies
or authorities as determined in the Memoranda of Coverage.
(b) The cost allocation formula for each joint protection program shall be adopted by
the Executive Committee.
(c) The deposit for each Member's participation in a joint protection program shall be
determined by the Executive Committee.
Joint Powers Agreement Page 9 of 18 Adopted August 20, 2009
(d) The cost allocation formula adopted by the Executive Committee for each joint
protection program may provide for retrospective deposit adjustments, and each Member shall
pay any additional deposit required by such retrospective adjustment.
(e) The Executive Committee may provide for payment of a portion of such deposits
to be made over a period of time on terms set by the Executive Committee.
(f) The Executive Committee may expand the Authority's offerings of joint
protection programs to make available for Members' protection in addition to that which is
provided for in this Agreement.
(g) Deposits held by the Authority for each joint protection program shall be
accounted for separately, so that only Members participating in the program will share in pooled
losses and expenses of that program. This separate accounting shall not prohibit the Authority
from commingling deposits for purposes of investment, nor from paying losses or expenses when
due from all available funds.
ARTICLE 18 - ACCOUNTS AND RECORDS
(a) Budget. The Authority shall adopt an operating budget, pursuant to Article 11(e)
of this Agreement.
(b) Funds and Accounts. The Treasurer of the Authority shall establish and maintain
such funds and accounts as may be required by good accounting practice or by the Executive
Committee. Books and records of the Authority in the hands of the Treasurer shall be open to
any inspection at all reasonable times by representatives of a Member.
(c) Treasurer's Report. The Treasurer, within 270 days after the close of each fiscal
year, shall give a complete written report of all financial activities for such fiscal year to the
Board and to each Member.
(d) Annual Audit. The Executive Committee shall provide for a certified, annual
audit of the accounts and records of the Authority which audit shall conform to generally
accepted auditing standards. When such an audit of the accounts and records is made by a
Certified Public Accountant, a report thereof shall be filed as a public record with each of the
Members. Such report shall be filed within nine months of the end of the year under
examination.
Joint Powers Agreement Page 10 of 18 Adopted August 20, 2009
(e) Costs. Any costs of the audit, including contracts with, or employment of,
Certified Public Accountants, in making an audit pursuant to this Article, shall be home by the
Authority and shall be considered included within the term "administrative costs."
ARTICLE 19 - RESPONSIBILITY FOR MONIES
(a) The Treasurer of the Authority shall have the custody of and disburse the
Authority's funds. He or she shall have the authority to delegate the signatory function of
Treasurer to such persons as are authorized by the Executive Committee.
(b) A bond in the amount determined by the Executive Committee to be adequate
shall be required of all officers and personnel authorized to disburse funds of the Authority, such
bond to be paid for by the Authority.
(c) The Treasurer of the Authority shall perform the duties described in California
Government Code Sections 6505.5 and 6505.6 pertaining to the receipt, safekeeping, payment,
and reporting of Authority funds.
ARTICLE 20 - RESPONSIBILITIES OF THE AUTHORITY
The Authority shall perform the following functions in discharging its responsibilities
under this Agreement:
(a) Provide loss protection as necessary, through various means including but not
limited to insurance or other financial risk transfer, by negotiation or bid and purchase.
(b) Assist Members in obtaining coverage for risks not included within the joint
protection programs of the Authority.
(c) Assist each Member's assigned risk manager with the implementation of that
function within the Member.
(d) Provide loss prevention and safety and consulting services to Members as
required.
(e) Provide claims adjusting and subrogation services for claims covered by the
Authority's joint protection programs.
(f) Provide loss control and analysis by the use of statistical analysis, data processing,
and record and file keeping services, in order to identify high exposure operations and to
evaluate proper levels of self -retention and deductibles.
Joint Powers Agreement Page 11 of 18 Adopted August 20, 2009
(g) Provide contract review when requested by Members to determine sufficiency of
indemnity and insurance provisions.
(h) Conduct risk management evaluations of each Member to encourage
implementation of best risk management practices.
(i) The Authority shall have standing and shall pursue recovery in its own name or in
the name of a Member for losses covered by a joint protection program. Such recovery may be
through subrogation, cross complaint, or salvage, as appropriate.
0) The Authority shall have such other responsibilities as deemed necessary by the
Board of Directors or Executive Committee in order to carry out the purposes of this Agreement.
ARTICLE 21 - RESPONSIBILITIES OF MEMBERS
Members shall have the following responsibilities:
(a) The legislative body of each Member shall appoint a representative and at least
one alternate representative to the Board of Directors, pursuant to Article 7 of this Agreement.
(b) Each Member shall appoint an employee to be responsible for the risk
management function of that Member, and to serve as a liaison between the Member and the
Authority as to risk management.
(c) Each Member shall maintain an active safety officer and/or committee, and shall
consider all recommendations of the Authority concerning unsafe practices or exposures.
(d) Each Member shall pay its deposit and any readjusted amount promptly to the
Authority when due. After withdrawal or termination, each Member shall pay promptly to the
Authority its share of any additional deposit, when and if required of it by the Executive
Committee under Articles 24, 25, 26, 27, and 28 of this Agreement.
(e) Each Member shall report all claims to the Authority in accordance with the
policies and procedures governing the joint protection program to which the claim applies.
(f) Each Member shall provide the Authority with such other information or
assistance as may be necessary for the Authority to carry out the joint protection programs under
this Agreement.
(g) Each Member shall cooperate with and assist the Authority in the pursuit of
recoveries for losses covered by a joint protection program, including assigning its right to
Joint Powers Agreement Page 12 of 18 Adopted August 20, 2009
recover subrogated amounts, and if necessary, executing a written agreement to effect such
assignment.
(h) Each Member shall in any and all ways cooperate with and assist the Authority,
and any insurer of a joint protection program, in all matters relating to this Agreement and
covered losses, and will comply with all bylaws, rules and regulations adopted by the Board of
Directors and Executive Committee.
(i) Each Member shall actively participate in the Authority's Risk Management
Evaluation and Loss Control Action Plan (LossCAP) programs.
ARTICLE 22 - NEW MEMBERS
The Authority shall allow entry of new Members approved by the Executive Committee.
Executive Committee approval for new Members shall be according to the following procedure:
(1) investigation of each potential member by Authority staff and preparation of a report; (2)
review of the report by the Underwriting Committee, which shall then be forwarded to all
Directors for review and comment; (3) review by the Directors and submittal of comments to the
Chief Executive Officer during the comment period; (4) approval by a two-thirds vote of the
Executive Committee; (5) Membership is effective immediately upon approval by the Executive
Committee and execution of an agreement by the new Member to join the Authority.
A Member entering under this Article may be required to pay its share of organization
expenses as determined by the Executive Committee including those necessary to analyze their
loss data and determine their deposits.
Should the Board of Directors rescind the membership approval made by the Executive
Committee pursuant to Article 8(b), the Member shall be given at least ninety days advance
notice of the effective date of termination of Membership, and the Member shall be treated as if
it had withdrawn on the effective date, and shall have the same responsibilities as if the Member
had voluntarily withdrawn on the effective date.
ARTICLE 23 - PROGRAM PARTICIPATION
The Authority shall allow for the participation of Members in the joint protection
programs as approved by the Executive Committee. Executive Committee approval for new
Members shall be according to the following procedure: (1) investigation of a potential
Joint Powers Agreement Page 13 of 18 Adopted August 20, 2009
participant by Authority staff and preparation of a report; (2) consideration of the report by the
Underwriting Committee with a recommendation to the Executive Committee, (3) approval by a
two-thirds vote of the Executive Committee; (4) program participation is effective immediately
upon approval by the Executive Committee and execution of appropriate resolutions and/or other
documents by the new participant allowing participation in the joint protection program.
A Member entering into a joint protection program may be required to pay its share of
program development expenses as determined by the Executive Committee including those
necessary to analyze their loss data and determine their deposits.
Should the Board of Directors rescind the program participation approval made by the
Executive Committee pursuant to Article 8(b), the Member shall be given at least ninety days
advance notice of the effective date of termination of program participation, and the Member
shall be treated as if it had withdrawn on the effective date, and shall have the same
responsibilities as if the Member had voluntarily withdrawn on the effective date.
ARTICLE 24 - WITHDRAWAL
(a) A Member which enters into this Agreement may not withdraw as a party to this
Agreement and as a Member of the Authority for a one-year period commencing on the effective
date of its membership.
(b) A Member which enters into a joint protection program may not withdraw as a
participant in that program for a one-year period commencing on the effective date of its
participation in the joint protection program.
(c) After the initial one-year non -cancellable commitment to membership in the
Authority or participation in a joint protection program, a Member may withdraw only at the end
of any protection period, provided it has given the Authority a twelve-month written notice of its
intent to withdraw from this Agreement and/or any joint protection programs in which it
participates.
ARTICLE 25 - EFFECT OF WITHDRAWAL
(a) The withdrawal of any Member from this Agreement shall not terminate the
Agreement, and no Member by withdrawing shall be entitled to payment or return of any
Joint Powers Agreement Page 14 of 18 Adopted August 20, 2009
deposits, consideration or property paid, or donated by the Member to the Authority, or to any
distribution of assets.
(b) The withdrawal of any Member from participation in a joint protection program
shall not terminate the Member's responsibility to contribute its share of deposits or funds to the
program until all claims, or other unpaid liabilities, covering the period the Member was
signatory hereto have been finally resolved and a determination of the final amount of payments
due from the Member or credits to the Member for the period of its participation has been made
by the Executive Committee. In connection with this determination, the Executive Committee
may exercise similar powers to those provided for in the Article 30(c) of this Agreement.
ARTICLE 26 - CANCELLATION OF PROGRAM PARTICIPATION
The Executive Committee shall have the right to cancel any Member's participation in one or
more joint protection programs. The process for Program cancellation for a Member may
include the following elements: (1) review of the Member's risk management standards and
practices; (2) development of a performance improvement plan for presentation to the
Underwriting Committee; (3) review and approval of the plan by the Executive Committee; (4)
performance improvement plan implementation with the Member; (5) adequate time, as
determined by the Executive Committee, for the Member to improve performance; (6) a progress
report, and any written or verbal information prepared by the Member, will be presented to the
Underwriting Committee and Executive Committee; (7) Executive Committee decision.
Any Member so cancelled shall on the effective date of the cancellation be treated the
same and shall have the same responsibilities as if the Member had voluntarily withdrawn from
the joint protection program.
ARTICLE 27 - CANCELLATION OF MEMBERSHIP
The Board of Directors shall have the right to cancel the membership of any Member
based upon a three-fourths vote of the entire Board of Directors. Any Member so cancelled shall
on the effective date of the cancellation be treated the same as if the Member had voluntarily
withdrawn from membership, said Member and shall have the same responsibilities.
Cancellation, as specified above, shall be within the sole discretion of the Board of Directors and
Joint Powers Agreement Page 15 of 18 Adopted August 20, 2009
may occur with or withoutcause, and the Board's discretion shall not be subject to any further
review or appeal.
ARTICLE 28 - CANCELLATION FOR NON-PAYMENT
In the absence of a payment plan as authorized in Article 17(e), any Member's
participation in a joint protection program may be cancelled automatically in the event of a
failure of the Member to pay any deposit amount as required in this Agreement. Should any
deposit amount remain unpaid more than thirty (30) days after receipt of notice by the Member,
the Authority will send a notice advising the Member that it is in default under the terms of this
Agreement, and that the Member's participation will be cancelled within thirty (30) additional
days unless full payment is received. Failure to make full payment as required in the notice of
default shall be considered a withdrawal by the Member from the program effective on the date
of cancellation specified in the notice of default; and no coverage shall apply to any claims
submitted subsequent to the effective date of cancellation that arise from occurrences taking
place during the current program year. A Member cancelled for non-payment shall remain liable
for a prorated share of the current year's deposits and for all readjusted or retrospective deposit
amounts through the date of cancellation and attributable to prior years of coverage in which it
participated.
ARTICLE 29 - ATTORNEY FEES AND COSTS OF COLLECTION
Should any Member or former Member fail to pay any deposit, readjusted deposit, or
retrospective deposit when due, the Member shall also be liable to the Authority for attorney fees
and costs incurred by the Authority in pursuing collection of such sums.
ARTICLE 30 - TERMINATION AND DISTRIBUTION
(a) This Agreement may be terminated by the written consent of three-fourths of the
Members; provided, however, that this Agreement and the Authority shall continue to exist for
the purpose of disposing of all claims, distribution of assets and all other functions necessary to
wind up the affairs of the Authority.
(b) Upon termination of this Agreement, all assets of the Authority shall be
distributed only among the parties that have been Members of a joint protection program,
Joint Powers Agreement Page 16 of 18 Adopted August 20, 2009
including any of those parties which previously withdrew pursuant to Article 24 of this
Agreement, in accordance with and proportionate to their cash (including deposits) payments and
property (at market value when received) contributions made reduced by their share of losses and
expenses paid during the term of this Agreement. The Executive Committee shall determine
such distribution within six months after the last pending claim or loss covered by this
Agreement has been finally disposed of.
(c) The Executive Committee is vested with all powers of the Authority for the
purpose of winding up and dissolving the business affairs of the Authority. These powers shall
include the power to require Members, including those which were Members at the time a claim
arose or at the time a loss was incurred, to pay their share of any additional amount of deposit
deemed necessary by the Executive Committee for final disposition of all claims and losses
covered by this Agreement. A Member's share of such additional deposits shall be determined
on the same basis as that provided for annual deposits in Article 17 of this Agreement, and shall
be treated as if it were the next year's annual deposit for that Member.
(d) In the absence of an Executive Committee, the Secretary shall exercise all powers
and authority under this Article. The decision of the Executive Committee or Secretary under
this Article shall be final.
ARTICLE 31 - PROVISION FOR BYLAWS
The Board shall cause to be developed Authority Bylaws. Each Member shall receive a
copy of any Bylaws developed under this Article.
ARTICLE 32 - NOTICES
Notices to Members hereunder shall be sufficient if delivered to the
administrative office of the respective Member. Delivery may be by U.S. Mail, email or other
form of notice acceptable under the Ralph M. Brown Act.
ARTICLE 33 - AMENDMENT
With the exception of Article 27, this agreement may be amended by a two-thirds vote of
the Directors present at a duly. held Board of Directors meeting, or by a two-thirds vote of the
entire Board of Directors for an amendment placed before the Membership by mailed ballot.
Joint Powers Agreement Page 17 of 18 Adopted August 20, 2009
Amendment to Article 27 shall require a three-fourths vote of the entire Board of Directors,
whether at a meeting or by mailed ballot.
ARTICLE 34 - PROHIBITION AGAINST ASSIGNMENT
With the exception of Article 21 (g), no Member may assign any right, claim or interest it
may have under this Agreement, and no creditor, assignee or third party beneficiary of any
Member shall have any right, claim or title to any part, share, interest, fund, deposit or asset of
the Authority.
ARTICLE 35 - AGREEMENT COMPLETE
The foregoing constitutes the full and complete Agreement of the parties. There are no
oral understandings or agreements not set forth in writing herein.
IN WITNESS WHEREOF, the parties hereto have first executed this Agreement by
authorized officials thereof on the date indicated below.
Date:
MEMBER:
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Joint Powers Agreement Page 18 of 18 Adopted August 20, 2009
Bylaws
California Joint Powers Insurance Authority
Adopted July 15, 2009
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BYLAWS
TABLE OF CONTENTS
ARTICLEI — OFFICES.............................................................................................................. 1
Section 1.
Principal Executive Office. 1
Section 2.
Other Offices. 1
ARTICLE II
- BOARD OF DIRECTORS................................................................................. I
Section 1.
Composition and Selection. I
Section 2.
Vacancies. 1
Section 3.
Annual Meeting. 2
Section 4.
Special Meetings. 2
Section 5.
Place of Meetings. 3
Section 6.
Quorum. 3
Section 7.
Adjourned Meetings. 3
Section 8.
Voting. 3
Section 9.
Inspectors of Election. 4
ARTICLE III
- EXECUTIVE COMMITTEE........................................................................... 5
Section 1.
Number of Members. 5
Section 2.
Composition, Selection and Term of Office. 5
Section 3.
Vacancies. 5
Section 4.
Resignation. 6
Section 5.
Removal of Executive Committee or its Individual Members by Board of Directors._ 6
Section 6.
Regular Meetings. 6
Section 7.
Special Meetings. 7
Section 8.
Actions at Meetings. 7
Section 9.
Adjourned Meetings. 7
ARTICLE IV
— CLAIMS COMMITTEE.................................................................................. 8
Section 1.
Composition. 8
Section 2.
Meetings. 8
ARTICLE V - ADVISORY COMMITTEES............................................................................. 8
Section 1.
Managers Committee. 8
Section 2.
Finance Officers Committee. 8
Section 3.
Underwriting Committee. 9
Section 4.
Other Committees
9
Section 5.
Meetings.
9
ARTICLE VI - OFFICERS AND EMPLOYEES...................................................................... 9
Section 1.
Officers.
9
Section 2.
Election and Term of Office.
9
Section 3.
Other Officers and Employees.
9
Section 4.
Vacancies.
10
Section 5.
Removal and Resignation.
10
Section 6.
President.
10
Section 7.
Vice President.
10
Section 8.
Secretary.
11
Section 9.
Treasurer.
1 I
Section 10.
Chief Executive Officer
11
ARTICLEVII - MISCELLANEOUS.......................................................................................11
Section 1.
Rules and Regulations of Joint Protection Programs.
11
Section 2.
Annual Report.
12
Section 3.
Defense of Agents of the Authority.
12
Section 4.
Inspection of Authority Records.
12
Section 5.
Checks and Drafts.
12
Section 6.
Register of Demands.
12
Section 7.
Execution of Contracts.
13
Section 8.
Rules of Procedure for Meetings.
13
ARTICLE VIII - AMENDMENTS TO BYLAWS..................................................................13
Section 1.
Power of Board of Directors.
13
Section 2.
Power of Executive Committee.
13
ff
BYLAWS
FOR THE REGULATION, EXCEPT AS OTHERWISE PROVIDED BY
STATUTE, OR THE AGREEMENT CREATING THE AUTHORITY, OF THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
ARTICLE I — OFFICES
Section 1. Principal Executive Office.
The principal executive office for the transaction of the business of the Authority is
hereby fixed and located at 8081 Moody Street, La Palma, California 90623. The Executive
Committee of the Authority shall have the authority to change the location of the principal
executive office from time to time. Any such change shall be noted on the Bylaws by the
Secretary, opposite this section, or this section may be amended to state the new location.
Section 2. Other Offices.
Other business offices may at any time be established by the Executive Committee at
any place or places where the Authority is qualified to do business.
ARTICLE II - BOARD OF DIRECTORS
Section 1. Composition and Selection.
The Board of Directors shall be composed of one Director from each Member of the
Authority, who shall be a member of and selected by the legislative body of that Member, as
provided for in the Agreement creating the Authority. Each legislative body shall also appoint at
least one alternate, who shall be an officer or employee of that Member. The alternate may
attend meetings and vote in the absence of the Director. One person may be duly appointed by
more than one Member as the Director representing those Members. "Absence," as the term is
used in this section, includes "vacancy" as defined in Section 2 of this Article II. "Director" as
the term is used in these Bylaws includes an "alternate" serving in the absence of the Director.
If a Member's membership in the Authority is terminated for whatever reason and by
whatever method, that Member shall no longer have a representative on the Board of Directors,
Executive Committee, or any other Committee of the Authority.
Section 2. Vacancies.
A vacancy or vacancies on the Board of Directors shall be deemed to exist in case of
death, resignation, expiration of term, removal by the Member that made the appointment, or
when the Director ceases to be a member of the legislative body of the appointing Member.
Vacancies in the positions of Director or alternate or alternates shall be filled in the manner
provided for regular appointment of such persons in the Agreement creating the Authority and
the Bylaws.
Bylaws Page I of 13 Adopted July 15, 2009
Section 3. Annual Meeting.
(a) Time Held and Business to be Transacted.
The annual meeting of the Board of Directors shall be held in July of each
year or at such other time as may be designated by the Executive Committee. At such meeting
the President and Vice President of the Authority and other members of the Executive
Committee shall be elected as provided in Article III, reports of the affairs of the Authority shall
be considered, and any other business may be transacted which is within the powers of the Board
of Directors.
(b) Notice.
Written notice of each annual meeting shall be given to each Member of
the Authority by mail, email, or other means of written communication, in the manner provided
by the Ralph M. Brown Act, California Government Code Section 54950, et seq. Such notice
shall specify:
(1) the place, the date, and the hour of such meeting;
(2) those matters which are intended to be presented for action or review by
the Board of Directors;
(3) if officers and members of the Executive Committee are to be elected, the
names of nominees intended at the time of the notice to be presented for election;
(4) the general nature of any proposal to be presented for action with respect
to approval of (i) a new Member, (ii) a contract or other transaction of the Authority with an
interested Member, (iii) amendment of the Agreement creating the Authority, (iv) the
cancellation of a Member's participation in a joint protection program, (v) voluntary termination
of the Agreement creating the Authority, or (vi) a distribution of program assets upon program
dissolution; and
(5) such other matters, if any, as may be expressly required by statute or by
the Agreement creating the Authority.
Section 4. Special Meetings.
Special meetings of the Board of Directors, for the purpose of taking any action permitted
by statute and the Agreement creating the Authority, may be called at any time by the President,
or by the Vice President in the absence or disability of the President, or by the Executive
Committee of the Authority or by not less than ten (10) Members. Upon request in writing that a
special meeting of the Board of Directors be called for any proper purpose, directed to the
President, Vice President, or Secretary of the Authority, by any person or persons entitled to call
a special meeting of the Board of Directors, the officer receiving such request forthwith shall
cause notice to be given to the Members that a meeting will be held at a time requested by the
person or persons calling the meeting, not less than fifteen (15) nor more than sixty (60) days
Bylaws Page 2 of 13 Adopted July 15, 2009
after receipt of the request. Notice of any special meeting shall be given in compliance with the
Ralph M. Brown Act, California Government Code Section 54950, et .seq. Such notice shall
specify the place, date and hour of such meeting, and, if applicable, the names of nominees for
officers or members of the Executive Committee intended at the time of the notice to be
presented for election and the nature of the business to be transacted. No business other than that
specified in the notice of the special meeting may be transacted at that meeting.
Section 5. Place of Meetings.
All annual or other meetings of the Board of Directors shall be held at a place within the
State of California designated by the Executive Committee by resolution.
Section 6. Quorum.
At any meeting, the presence in person or by approved teleconference by the
Director or alternate of a majority of the Members shall constitute a quorum for the transaction
of business.
Section 7. Adjourned Meetings.
(a) Adjournment.
Any meeting of the Board of Directors may be adjourned from time to time by the
vote of a majority of the Directors present.
(b) Notice.
When any meeting of the Board of Directors is adjourned for forty-five (45) days
or more, notice of the adjourned meeting shall be given as in the case of an original meeting.
Except as specifically provided herein, or by the Ralph M. Brown Act, it shall not be necessary
to give any notice of the time and place of the adjourned meeting or of the business to be
transacted thereat, other than by announcement of the time and place thereof at the meeting at
which such adjournment is taken.
Section S. Voting.
Unless a record date for voting purposes is fixed by the Executive Committee,
Members which are Members on the day of the meeting of the Board of Directors shall be
entitled to vote at such meeting. Such vote may be by voice vote or ballot; provided, however,
that all elections for officers or members of the Executive Committee must be by ballot upon
demand made by a Director at any election and before the voting begins. If a quorum is present,
the affirmative vote of the majority of the Members represented at the meeting shall be the act of
the Board, unless the vote of a greater number is required by the Agreement creating the
Authority or by statute. A meeting at which a quorum is initially present may continue to
transact business notwithstanding the withdrawal of Directors, provided that any action taken is
approved by a number of Directors at least equal to a majority (or greater number if required) of
Bylaws Page 3 of 13 Adopted July 15, 2009
the number required for a quorum for such meeting. Every Member shall have one vote to be
exercised by its Director. If one person has been duly appointed by more than one Member as
the Director representing those Members, said person shall have the right to cast votes equal to
the number Members for which he or she has been appointed as Director.
Ballots shall have imprinted on them, the name of the Member on whose behalf a ballot
is cast. Ballots shall be open to inspection and public disclosure. A Director has the right to
change his or her vote up to the time the vote is finally announced, and thereafter only with
permission of the Board of Directors prior to adjournment. No Director may change his or her
vote, nor may anyone challenge the vote of any Director after the results have been announced,
except by the consent of the Board of Directors, and then only prior to adjournment of the
meeting at which the vote was cast. Written proxies or powers of attorney casting the vote for
any Director, directing any Director to vote in a particular fashion, or acting in the place and
stead of any Director, are not acceptable. The vote of each Director or his or her alternate shall
not be challenged on the basis that said Director or alternate voted contrary to the express will of
the legislative body of the Member for which he or she acts.
Section 9. Inspectors of Election.
(a) Appointment.
In advance of any meeting of the Board of Directors, the Executive Committee
may appoint any persons, other than nominees for office, as inspectors of election to act at such
meeting or any adjournment thereof. If inspectors of election are not so appointed, the President,
or Vice President in his or her absence, may, and on the request of any Director or alternate, shall
make such appointment at the meeting. The number of inspectors shall be either one (1) or three
(3), at least one of whom shall be a member of the Board of Directors. In case any person
appointed as inspector fails to appear or fails or refuses to act, the vacancy may, and on the
request of any Director, shall be filled by appointment by the Executive Committee in advance of
the meeting, or at the meeting by the President, or the Vice President in his or her absence.
(b) Duties.
The duties of such inspectors shall include: Determining the current number of
Members, the Members represented at the meeting, and the existence of a quorum; receiving
votes, ballots or consents; hearing and determining all challenges and questions in any way
arising in connection with the right to vote; counting and tabulating all votes or consents;
determining when the polls shall close; determining the result; and such acts as may be proper to
conduct the election or vote with fairness to all Members.
(c) Procedure.
The inspectors of election shall perform their duties impartially, in good faith, to
the best of their ability and as expeditiously as is practical. The decision, act or certificate of a
majority of the inspectors shall be effective in all respects as the decision, act or certificate of all.
Any report or certificate made by the inspectors of election is prima facie evidence of the facts
stated therein.
Bylaws Page 4 of 13 Adopted July 15, 2009
ARTICLE III - EXECUTIVE COMMITTEE
Section 1. Number of Members.
The authorized number of members of the Executive Committee shall be nine (9), until
and unless changed by amendment of this Section, duly adopted by the vote or written consent of
a majority of the Board of Directors, and subject to the limitations in the Agreement creating the
Authority.
Section 2. Composition, Selection and Term of Office.
The Executive Committee shall consist of the President, Vice President and seven other
members elected by the Board of Directors from the members of the Board. In addition, the
Immediate Past President shall serve as an ex officio non-voting member of the Executive
Committee for two years, provided the Immediate Past President's membership on the Board of
Directors continues without interruption.
The terms of office of the Executive Committee members shall be for a term of two
years or until he or she resigns or is removed or otherwise disqualified to serve. Members of the
Executive Committee shall hold office until their successors are elected.
The President, or in his or her absence, the Vice President, shall serve as Chairperson of
the Executive Committee.
Section 3. Vacancies.
(a) Creation of Vacancies.
A vacancy or vacancies in the Executive Committee shall be deemed to
exist in case of the death, resignation, expiration of term, termination of membership on the
Board of Directors, removal of any Executive Committee member by the Board of Directors,
declaration of unsound mind by order of court, conviction of a felony, increase in the authorized
number of members by amendment of the Agreement creating the Authority, or if the Board of
Directors fail, at any annual or special meeting of the Board at which any members of the
Executive Committee are elected, to elect the full authorized number of Executive Committee
members to be voted for at that meeting. A vacancy in the Executive Committee may further be
created by removal of any member by the Executive Committee when such member has been
absent from two or more regular meetings of the Executive Committee without advance excuse
approved by the Executive Committee during any one year (from July 1 to June 30), and the
Executive Committee determines, after reviewing the circumstances of said absences, that such
member should be removed.
(b) Vacancies Filled by Executive Committee.
Vacancies in the Executive Committee, except for a vacancy created by the
removal of an Executive Committee member, may be filled by appointment by a majority of the
remaining members of the Executive Committee, though less than a quorum, or by a sole
Bylaws Page 5 of 13 Adopted July 15, 2009
remaining member of the Executive Committee, and each member so appointed shall hold office
until the expiration of the term of the vacated seat.
(c) Vacancies Filled by Board of Directors.
The Board of Directors may elect a member of the Executive Committee at any
time to fill any vacancy or vacancies or seat filled on an interim basis by the Executive
Committee. A vacancy in the Executive Committee created by the removal of a member by the
Board of Directors may be filled only by the vote of a majority of the Directors present at a duly
held meeting of the Board of Directors.
Section 4. Resignation.
Any Executive Committee member may resign effective upon written notice to the
President, the Vice President, the Secretary or the Board of Directors of the Authority, unless the
notice specifies a later time for the effectiveness of such resignation. If the Executive Committee
receives the resignation of one of its members, tendered to take effect at a future time, the Board
of Directors shall have the power to elect a successor to take office when the resignation
becomes effective, or the Executive Committee may do so on an interim basis pending such
Board Action.
Section 5. Removal of Executive Committee or its Individual Members by Board
of Directors.
The entire Executive Committee or any of its individual members may be removed from
office by a two-thirds vote of the Directors present at a duly held meeting of the Board of
Directors.
Section 6. Regular Meetings.
(a) Regular Meetings.
The Executive Committee shall hold a regular monthly meeting. In the event a
meeting date falls on a holiday or conflicts with another activity of the Authority or its Members,
the President and Chief Executive Officer may confer and the President will reschedule the
monthly meeting to a more convenient date, giving notice to all Members.
(b) Call and Notice.
No further call or notice of regular meetings need be given, except as is
required to comply with the Ralph M. Brown Act, California Government Code Section 54950 et
seq.
Bylaws Page 6 of IJ Adopted July 15, 2009
Section 7. Special Meetings.
(a) Call.
Special meetings of the Executive Committee for any purpose or purposes may be
called at any time by the President, the Vice President, the Secretary, any two members of the
Executive Committee, or the Chief Executive Officer.
(b) Notice.
Notice of the time and place of special meetings shall be given in writing to the
members of the Executive Committee, delivered personally, by mail, email, or other approved
method of delivery to each member at least 24 hours before the time of such meeting. Such
notice shall specify the business to be transacted at the meeting and no business other than that
specified in the notice shall be transacted at that meeting. Said notice shall be given in
compliance with the Ralph M. Brown Act, California Government Code Section 54950 et seq.
Section 8. Actions at Meetings.
The President, or in his or her absence, the Vice President shall serve as the Chairperson
of the Executive Committee. The presence of a majority of the authorized number of Committee
members at a meeting constitutes a quorum for the transaction of business, except as hereinafter
provided. Members of the Committee may participate in a meeting through use of conference
telephone or similar communications equipment, so long as all members participating in such
meeting can hear one another; such participation in a meeting constitutes presence in person at
such meeting. Every act or decision done or made by a majority of the Committee members
present at a meeting duly held at which a quorum is present shall be regarded as the act of the
Executive Committee, unless a greater number is required by law, by the Agreement creating the
Authority, or by these Bylaws. A meeting at which a quorum is initially present may continue to
transact business notwithstanding the withdrawal of members, provided that any action taken is
approved by a number of members at least equal to a majority (or greater number if required) of
the number required for a quorum for such meeting.
Section 9. Adjourned Meetings.
(a) Adjournment.
A quorum of the members of the Executive Committee may adjourn any
Executive Committee meeting to a stated day, hour and place; provided, however, that in the
absence of a quorum a majority of the Executive Committee members present at any meeting
may adjourn from time to time to a time not later than the time fixed for the next regular meeting
of the Executive Committee.
(b) Notice of Adjournment.
If a meeting is adjourned for more than 24 hours, at least 24 -hours written notice
of such adjournment to another time or place shall be given prior to the time of the adjourned
Bylaws Page 7 of 13 Adopted July 15, 2009
meeting to the Executive Committee members who were not present at the time of adjournment.
Otherwise, notice of the time and place of holding an adjourned meeting need not be given if the
time and place are fixed at the time of adjournment, except that the provisions of the Ralph M.
Brown Act, California Government Code Sections 54950 et seq., shall be complied with.
ARTICLE IV — CLAIMS COMMITTEE
Section 1. Composition.
The Claims Committee shall be composed of each member of the Executive Committee,
the Managers Committee Chair, and the Finance Officers Committee Chair.
Section 2. Meetings.
The President shall appoint an Executive Committee member to serve as the Chair of the
Claims Committee. The Chair, or in his or her absence the President, shall preside over the
meetings. The presence of a majority of the authorized number of Committee members at a
meeting constitutes a quorum for the transaction of business, except as hereinafter provided.
Members of the Committee may participate in a meeting through use of conference telephone or
similar communications equipment, so long as all members participating in such meeting can
hear one another; such participation in a meeting constitutes presence in person at such meeting.
Every act or decision done or made by a majority of the Committee members present at a
meeting duly held at which a quorum is present shall be regarded as the act of the Claims
Committee, unless a greater number is required by law, by the Agreement creating the Authority,
or by these Bylaws. A meeting at which a quorum is initially present may continue to transact
business notwithstanding the withdrawal of members, provided that any action taken is approved
by a number of members at least equal to a majority of the number required for a quorum for
such meeting.
ARTICLE V - ADVISORY COMMITTEES
Section 1. Managers Committee.
Pursuant to the Agreement creating the Authority, the Managers Committee shall be
composed of one representative from each Member, who shall be the City Manager, City
Administrator or the Chief Executive Officer of that Member. An alternate may be designated in
writing to serve in place of and may vote for that representative in his or her absence. At any
meeting, the presence in person or by approved teleconference of at least seven Managers or
alternates shall constitute a quorum for the transaction of business. In the absence of a quorum, a
majority of the Committee members present at any meeting may adjourn from time to time to a
time not later than the time fixed for the next regular meeting of the Committee.
Section 2. Finance Officers Committee.
Pursuant to the Agreement creating the Authority, the Finance Officers Committee shall
be composed of one representative from each Member, who shall be the Finance Director or
Chief Finance Officer of that Member. An alternate may be designated in writing to serve in
Bylaws Page 8 of 13 Adopted July 15, 2009
place of and may vote for that representative in his or her absence. At any meeting, the presence
in person or by approved teleconference of at least seven Finance Officers or alternates shall
constitute a quorum for the transaction of business. In the absence of a quorum, a majority of
the Committee members present at any meeting may adjourn from time to time to a time not later
than the time fixed for the next regular meeting of the Committee.
Section 3. Underwriting Committee.
Pursuant to the Agreement creating the Authority, the Underwriting Committee shall be
composed of the Managers Committee Chainand Vice Chair, the Finance Officers Committee
Chair and Vice Chair, and the Chief Executive Officer of the Authority. Three representatives
shall constitute a quorum. In the absence of a quorum, a majority of the Committee members
present at any meeting may adjourn.
Section 4. Other Committees
Other committees may be created by the Executive Committee for the purpose of
providing specialized advice to the Executive Committee on the subject matter brought before it.
The committee's purpose, composition, quorum requirements, and meeting schedule may be
defined by the Executive Committee or delegated by the Executive Committee to the advisory
committee itself.
Section 5. Meetings.
Such Committees shall meet from time to time and shall elect their respective
Chairpersons, Vice Chairpersons and other officers as deemed necessary by them. All meetings
shall be noticed in compliance with the Ralph M. Brown Act, California Government Code
Section 54950, et seq.
ARTICLE VI - OFFICERS AND EMPLOYEES
Section 1. Officers.
The officers of the Authority shall be a President, a Vice President, a Secretary, and a
Treasurer. The Executive Committee may, in addition, provide for other officers as it deems
necessary for the performance of the business of the Authority.
Section 2. Election and Term of Office.
The President and Vice President of the Authority shall be elected by the Board of
Directors at its annual meeting, and each shall hold office for a term of two years or until he or
she resigns or is removed or otherwise disqualified to serve, and until his or her successor is
elected.
Section 3. Other Officers and Employees.
The Executive Committee shall appoint, or may empower the President to appoint,
subject to ratification by the Executive Committee, all officers other than the President and Vice
Bylaws Page 9 of 13 Adopted July 15, 2009
President. Except as may otherwise be provided in the Agreement creating the Authority or the
Bylaws, such officers shall hold office until replaced by action of the Executive Committee. The
Executive Committee shall also appoint a Chief Executive Officer and Authority Attorney who
shall serve at the pleasure of the Executive Committee or for such term as the Executive
Committee may provide by agreement. All officers and employees shall have such authority and
perform such duties as are provided in the Agreement creating the Authority, or the Bylaws or as
the Executive Committee may from time to time determine. The Executive Committee may
provide for the payment of compensation to officers or employees for their services to the
Authority.
Section 4. Vacancies.
A vacancy in any office because of death, resignation, removal, disqualification,
expiration of term, or any other cause shall be filled in the manner prescribed in the Agreement
creating the Authority and the Bylaws for regular appointments to such office.
Section 5. Removal and Resignation.
(a) Removal.
The President, Vice President or any Executive Committee member may be
removed, without cause, by the Board of Directors, at any regular or special meeting thereof. An
officer chosen by the Executive Committee may be removed, without cause, by that Committee
or by any officer upon whom such power of removal may be conferred by the Committee,
(subject, in each case, to the rights, if any, of an officer under any contract of employment).
(b) Resignation.
Any officer may resign at any time by giving written notice to the Executive
Committee or to the President, or to the Secretary of the Authority, without prejudice, however,
to the rights, if any, of the Authority under any contract to which such officer is a party. Any
such resignation shall take effect at the date of the receipt of such notice or at any later time
specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall
not be necessary to make it effective.
Section 6. , President.
The President shall preside at all meetings of the Board of Directors and the Executive
Committee. He or she shall be a member of all of the Executive Committee standing
committees, and shall have the powers and duties as may be prescribed by the Board of
Directors, the Agreement creating the Authority, or the Bylaws.
Section 7. Vice President.
In the absence or disability of the President, the Vice President shall perform all the
duties of the President, and when so acting shall have all the powers of, and be subject to all the
Bylaws Page 10 of 13 Adopted July 15, 2009
restrictions upon, the President. The Vice President shall have such other powers and perform
such other duties as from time to time may be prescribed by the Board of Directors or the
Bylaws.
Section 8. Secretary.
The Secretary shall record or cause to be recorded, and shall keep or cause to be kept, at
the principal executive office or such other place as the Executive Committee may order, a book
of minutes of actions taken at all meetings of the Board of Directors and Executive Committee,
whether regular or special, (and, if special, how authorized), the notice thereof given, the names
of those present at the meetings, and the proceedings thereof.
The Secretary shall keep, or cause to be kept, at the principal executive office of the
Authority a list of all designated Directors and alternates of each Member.
The Secretary shall give, or cause to be given, notice of all the meetings of the Board of
Directors and of the Executive Committee required by the Bylaws or by law to be given, and
shall have such other powers and perform such other duties as may be prescribed by the
Executive Committee, the Agreement creating the Authority, or by the Bylaws.
Section 9. Treasurer.
The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and
correct financial records of the Authority, including accounts of its assets, liabilities, receipts,
and disbursements, and shall have such other duties as are provided for in the Agreement
creating the Authority.
Section 10. Chief Executive Officer
The Chief Executive Officer shall be authorized and responsible for the overall
management and administration of the Authority and its joint protection programs and shall
select and appoint all employees. The Chief Executive Officer shall have such other and related
duties as may be prescribed by the Executive Committee or the Bylaws.
ARTICLE VII - MISCELLANEOUS
Section 1. Rules and Regulations of Joint Protection Programs.
As soon as practicable after development of the details of a joint protection program of
the Authority, the specific rules and regulations for the implementation of the program shall be
adopted by the Executive Committee, which shall cause them to be set forth in written form and
a copy thereof distributed to each Member. Such rules and regulations shall be included in any
procedure manual prepared by the Authority for the Members.
Bylaws Page 11 of 13 Adopted July 15, 2009
Section 2. Annual Report.
The Executive Committee of the Authority shall cause an annual report to be sent to the
Members not later than 270 days after the close of each fiscal year. Such report shall contain a
balance sheet as of the end of such fiscal year and an income statement and statement of changes
in financial position for such fiscal year, and shall be accompanied by the annual audit report
thereon and such other information as may be required by law.
Section 3. Defense of Agents of the Authority.
(a) For the purpose of this Article, "agent" means any person who is or was an
officer, employee or other agent of the Authority.
(b) The Authority shall provide for the defense of any civil action or
proceeding brought against any such agent of the Authority in his or her official or individual
capacity or both, on account of an act or omission within the scope of his or her agency as an
agent of the Authority, and to the extent of such defense as is provided for in California
Government Code Section 995 et seq.
Section 4. Inspection of Authority Records.
The accounting, books and records, the list of Members' designated Directors and
alternates, and minutes of proceedings of the Board of Directors and the Executive Committee
and all other committees of the Authority shall be open to the inspection of any Member at any
reasonable time. Such inspection by a Member may be made in person or by agent or attorney,
and the right of inspection includes the right to copy and make extracts.
Section 5. Checks and Drafts.
All checks, drafts or other orders for payment of money, notes or other evidences of
indebtedness, issued in the name of or payable to the Authority, shall be signed or endorsed by
the President and Treasurer or by such person or persons and in such manner as, from time to
time, shall be determined by the Executive Committee.
Section 6. Register of Demands.
A register of all demands shall be submitted to the Executive Committee for payment
approval, and shall have attached thereto the affidavit or declaration of the Chief Executive
Officer certifying as to the accuracy of the demands and the availability of funds for payment
thereof. The Executive Committee shall not hear, consider, allow or approve any bill or demand
against the Authority unless the same is itemized giving names, dates, and particular services
tendered, and any other pertinent details as the case may be. Demands for salaries and wages of
officers and employees of the Authority may, but need not be, presented to the Executive
Committee prior to payment but shall appear on the next register of demands for approval.
Bylaws Page 12 of 13 Adopted July 15, 2009
After approval of the register of demands by the Executive Committee, the public officer
performing the function of Treasurer shall sign the warrant authorizing payment of the demands
so approved. Signatures on warrants may be by facsimile.
Section 7. Execution of Contracts.
The Executive Committee may authorize any officer or officers, agent or agents, to enter
into any contract or execute any instrument in the name of and on behalf of the Authority, and
such authorization may be general or confined to specific instances. Unless so authorized by the
Executive Committee, no officer, agent or employee shall have any power or authority to bind
the Authority by any contract or engagement or to pledge its credit or to render it liable for any
purpose or to any amount. The Chief Executive Officer is authorized to enter into any contract
or execute any instrument in the name of, and on behalf of, the Authority for services and
programs approved by the Executive Committee or Board of Directors, subject to limitations
(including budget limitations) set by the Executive Committee or the Board of Directors.
Section 8. Rules of Procedure for Meetings.
All meetings of the Board of Directors, Executive Committee and any other Committees
of the Authority shall be conducted in accordance with Robert's Rules of Order, except where
such are in conflict with California law, the Agreement creating the Authority, or the Bylaws,
whereupon the latter two shall govern over said Rules of Order.
ARTICLE VIII - AMENDMENTS TO BYLAWS
Section 1. Power of Board of Directors.
New Bylaws may be adopted or these Bylaws may be amended or repealed by the
affirmative vote of a majority of the entire Board of Directors, except as otherwise provided by
the Agreement creating the Authority.
Section 2. Power of Executive Committee.
Subject to the right of the Board of Directors as provided in Section 1 of this Article VIII
to adopt or amend Bylaws, Bylaws other than a bylaw or amendment thereof changing the
authorized number of members of the Executive Committee may be adopted or amended by the
Executive Committee. Any amendment by the Executive Committee shall be on the agenda of
the next meeting of the Board of Directors for ratification. An affirmative vote by a majority of
the quorum shall constitute ratification of the amendment.
Bylaws Page 13 of 13 Adopted July 15, 2009
IXVXg%PX,
CALIFORNIA JPIA JUL 2 3 2009
MEMORANDUM By ---------------------
To:
- -- --
To: City Manager/Town Manager/Chief Executive Officer
From: Jonathan Shull, Chief Executive icer
Date: July 21, 2009
Subject: Certificates of Protection for July 1, 2009 — June 30, 2010 and
2009-2010 Memoranda of Coverage
Enclosed is your agency's Certificate of Liability Protection for the 2009-2010 coverage period
and, if applicable, your agency's Certificate of Workers' Compensation Protection for the same
coverage period.
Also enclosed is the 2009-2010 Memorandum of Liability Coverage and, if applicable, the 2009-
2010 Memorandum of Workers' Compensation and Employer's Liability Coverage.
In the next few weeks, you and your agency's California JPIA Director, Risk Manager, and
Finance Director will receive an email with a website link to the same documents in electronic
format. In addition, coverage summaries for all of the programs available through the California
JPIA will be available on the website. The Programs include: Liability, Workers'
Compensation, Property, Pollution & Remediation Legal Liability, Crime Coverage, and Special
Events.
Please contact me at (562) 467-8787 or at jshull@cjpia.org if you have questions.
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Memorandum of Liability Coverage
Issued to the City of Rosemead
Effective July I, 2009 — July 1, 2010
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July], 2009—July 1, 2010, as ajoint protection program authorized pursuant to
Article I l(a) of the California JPIA joint powers agreement
Providing lnnovalivc Risk Management Solutions For Our Public AgencJl Partners
CALIFORNIA
1 A
COVER PAGE
MEMORANDUM OF LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS: Primary layer: $10,000,000
PROTECTION PERIOD: From July 1, 2009 at 12:01 a.m. Pacific Time until July 1, 2010 at
12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which certain
specified and limited self-insured risks of liability are administered by the Authority and shared by its
Members. This Memorandum is not an insurance policy. As provided in Section 990.8 of the California
Government Code and appellate court cases of Orange County Water District v. Association of California
Water Agencies JPIA (1997) and City of South EI Monte v. Southern California Joint Powers Insurance
Authority (1995), the pooling of self-insured claims or losses among the Members of the Authority shall
not be considered insurance nor be subject to regulation under the Insurance Code.
CALIFORNIA JPIA
M
President
TABLE OF CONTENTS
1. INTRODUCTION
1
2. PROTECTION PROVIDED
1
A. Payments on Behalf of Protected Parties
1
B. Defense and Settlement
2
C. Protection Limit
3
D. Statutory Limitations
3
E. Territorial Limitation
4
3. DEFINITIONS
4
4. EXCLUSIONS
13
5. CONDITIONS AND RESPONSIBILITIES
19
A. Inspection and Audit
19
B. Severability of Interest
19
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
19
D. 011ier Protection
20
E. Termination or Amendment
20
F. Changes
20
G. Subrogation
20
K Assignment
21
L Joint Powers Agreement
21
J. Appeal of Disputes
21
K. Arbitration
22
MEMORANDUM OF LIABILITY COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of liability are administered by the Authority and shared
by its Members pursuant to the Joint Powers Agreement creating the Authority under
the provisions of Section 6500 et seq. of the Government Code.
As provided in Section 990.8 of the Government Code, pooling of losses in this Program
is not insurance. The sole duty of the Authority is to administer the Program adopted
by the Members. The Authority can indemnify only Claims or losses, which are pooled
under the terms of this Memorandum and the Joint Powers Agreement. There is no
transfer of risk from the Member or any Protected Party to the Authority nor
assumption of risk by the Authority.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Protected
Party or the Authority. Any controversy or dispute arising out of or related to an
interpretation or breach of this Memorandum shall be settled in accordance with the
appeals procedures as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. DEFINITIONS.
2. PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
Subject to all provisions of this Memorandum, the Authority will cause the Program to
pay on behalf of the Protected Party all sums that the Protected Party shall become
Memorandum of Liability Coverage Page 1 of 24 July 1, 2009 — July 1, 2010
legally obligated to pay as Damages by reason of Tort Liability imposed by law, or the
Tort Liability of others assumed in a Protected Contract, because of:
(i) Bodily Injury or Property Damage;
(ii) Personal Injury;
(iii) Public Officials Errors and Omissions;
(iv) Broadcast/Publication Injury;
(v) Employment Practices Injury;
(vi) Employee Benefit Administration Liability; or
(vii) Termination of City Manager's Employment Liability
caused by an Occurrence to which this Memorandum applies.
B. Defense and Settlement
The Authority, at the shared expense of its Members, and out of funds of the Program
deposited or obligated to be deposited by its Members, shall investigate, negotiate, settle,
or Defend, at the Authority's sole discretion, any Claim or Suit which has been
tendered to the Authority and which in the sole opinion of the Authority is encompassed
by this Program. The Authority shall control selection of defense counsel. Defense
Costs incurred by the Protected Party prior to the tender of the Claim or Suit, as
required by 5. CONDITIONS AND RESPONSIBILITIES, to the Authority are the sole
obligation of the Protected Party. The date of the tender of the Claim or Suit shall be
the date written notice of said Claim or Suit is received at the Authority's offices (or its
designated Claims Administrator).
The obligation of the Authority as described above shall cease to apply after the
Protection Limit has been exhausted by any combination of payments hereunder for
judgments, settlements, or Defense Costs, or if the Authority tenders the Protection
Limit on behalf of any Protected Party. For purposes of excess insurance or
reinsurance, any Defense Costs incurred prior to the tender of the Protection Limit shall
be deducted from the Protection Limit that is tendered.
With respect to any Claim or Suit or part thereof which has been tendered to the
Authority and over which the Authority assumes full or partial responsibility or charge
of the settlement or Defense, the Authority shall, if applicable, cause the Program to
pay:
(i) All expenses incurred by the Authority on behalf of a Protected Party;
(ii) Costs taxed against a Protected Party in the Suit; and
(iii) Other reasonable expenses incurred by a Protected Party at the Authority's
request to assist the Authority in the investigation or Defense of the Claim or
Suit; but this shall not include the office expenses of the Protected Party, the
salaries of Employees or officials of the Protected Party, nor expenses of
any claims administrator engaged by the Protected Party.
With respect to a Claim or Suit for which the Authority has determined that only a
portion is encompassed by this Program, the Authority shall cause the Program to fund
Memorandum of Liability Coverage Page 2 of 24 July 1, 2009 — July 1, 2010
any Defense to the Claim or Suit against the Member and any settlement or final
judgment of that Claim or Suit, subject to the reservation by the Authority of the right to
recover from the Member any amounts paid by the Authority for such settlement or
final judgment which are paid to claimants for Claims or Suits, or portions thereof, not
encompassed by the Program.
With respect to a Claim or Suit for which the Authority has determined that no portion
is encompassed by this Program, the Claim or Suit shall be referred, in its entirety, back
to the Protected Party.
The payment of Defense Costs will reduce the Protection Limit under this Program.,
C. Protection Limit
The Protection Limit shown on the Cover Page and the rules below determine the most
the Program will pay, inclusive of Defense Costs, regardless of the number of:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) Persons or organizations that sustain injuries or Damages.
The Protection Limit stated on the Cover Page is the most the Program will pay per
Member for the sum of Damages, Defense Costs and expenses as included in B.
Defense and Settlement under any or all or any combination of Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadeast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Injury, or Termination of City Manager's Employment Liability
arising out of any one Occurrence.
For the purpose of determining the Protection Limit all Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Liability, or Termination of City Manager's Employment Liability
arising out of exposure to substantially the same general condition(s) shall be considered
as arising out of one Occurrence.
Any actual or alleged loss of use of tangible property not physically injured or destroyed
shall be deemed to occur at the time of the Occurrence that caused such loss of use. Any
other injury or damage occurring or alleged to have occurred over more than one
Protection Period shall be deemed to have occurred during the Protection Period when
the Occurrence began.
D. Statutory Limitations
Notwithstanding sections 2.A. and 2.13. above, the defense and/or indemnity protections
afforded by this agreement to a past or present elected or appointed official or Employee
of a Member are not broader than the Member's own duty to defend and indemnify its
official or Employee under California Government Code sections 825, et seq. and 995, et
seq. All immunities, defenses, rights, and privileges of the Member under the
Government Code apply to the Program as well, including any defense that the official
or Employee acted outside the course and scope of employment or acted with fraud,
Memorandum of Liability Coverage Page 3 of 24 July 1, 2009 -July 1, 2010
corruption or actual malice, or any defense that the action or proceeding or type of
damage sought is not the type for which the Member is obligated to provide defense
and/or indemnity. The defense and/or indemnity protections are also subject to all the
terms, conditions, and Exclusions of this Memorandum and do not apply if not covered
by this Memorandum, even if an obligation to defend and/or indemnify would exist
under the Government Code.
E. Territorial Limitation
This Memorandum applies only to Claims made in the courts of the United States or of
any State.
3. DEFINITIONS
Administration under Employee Benefits Administration Liability means:
A. Giving counsel to employees with respect to the Employee Benefits Programs;
B. Interpreting the Employee Benefits Programs;
C. Handling of records in connection with the Employee Benefits Programs; or
D. Effecting enrollment, termination, or cancellation of employees under the
Employee Benefits Programs, provided all such acts are authorized by the
Member.
Aircraft means any vehicle designed to transport people or property through the air.
Airport means any locality either on land or water which is adopted for the landing and
taking off of Aircraft, including all land, water, buildings, structures, equipment or other
improvements necessary or convenient in the establishment and operation of an Airport.
Authority means the California Joint Powers Insurance Authority.
Automobile means a land motor vehicle, trailer, or semi -trailer.
Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
Broadcast/Publication Injury means injury caused by or arising out of:
A. Any form of defamation or other tort related to disparagement or harm to the
character, reputation or feelings of any natural person or organization including but
not limited to libel, slander, product disparagement, trade libel, infliction of
emotional distress, outrage, or outrageous conduct;
B. Any form of invasion of, infringement of, or interference with rights of privacy or
publicity; including but not limited to false light, public disclosure of private facts,
intrusion, and commercial appropriation of name or likeness;
C. Infringement of copyright or trademark;
D. Plagiarism or piracy or misappropriation of ideas under implied contract;
Memorandum of Liability Coverage Page 4 of 24 July 1, 2009 — July 1, 2010
E. Unauthorized use of names, trade names, trademarks, service marks, titles, formats,
ideas, characters, character names, characterizations, performances, plots, musical
compositions, slogans, program material, or any other similar material; or
F. Denial of access to broadcast facilities based upon application of judgment or
standards relating to the acceptability of material for public broadcast; committed in
the course of the Protected Party's broadcast or publication activities.
Certification means a signed statement by a City Manager that he or she is entitled to
the Unemployment Protection Payment because he or she is unemployed or is
employed but at a specified lower salary than he or she was earning at the time of the
Occurrence and has not retired under a retirement program in which the City Manager
earned benefits as a public employee.
City Manager means the governing body -appointed chief administrative officer of a
Protected Party whether called City Manager, Chief Administrative Officer, General
Manager or other title designating the highest appointed official of the governmental
entity.
Claim means a notice, demand, or Suit against a Protected Party to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing.
Dam means a structure described by California Water Code sections 6002 through 6004.
Damages means compensation in money recovered by a party for loss or detriment it has
suffered through the acts of a Protected Party. Damages does not include defense of
Claims or any punitive, exemplary or multiplied damages or non -monetary relief or
redress or injunctive relief.
Defense Costs means all fees and expenses incurred in connection with the adjustment,
investigation, defense, and appeal of a Claim covered hereunder, including attorney fees,
court costs, premiums for appeal bonds, and interest on judgments accruing after the
entry of judgment, and also shall include the costs of any claims administrator or defense
counsel assigned by the Authority to respond to any Claim on behalf of the Authority.
Defense Costs shall not include the office expenses of the Protected Party, nor the
salaries of employees or officials of the Protected Party, nor expenses of any claims
administrator engaged by the Protected Party. Defense Costs also do not include any.
fee or expense relating to coverage issues between the Authority and any Protected
Party.
Discrimination means injury caused by or arising out of:
A. Unlawful discrimination because, of race, sex, color, age, religion, or national origin,
or membership in any similar legally protected class; or
B. Violation of the discrimination prohibitions of the Americans with Disabilities Act
of 1990, any rules or regulations promulgated thereunder and amendments thereto
or similar provisions of any federal, state, or local statutory law or common law.
Memorandum of Liability Coverage Page 5 of 24 July 1, 2009 - July 1, 2010
Employee includes any person falling within the definition of "employee" under section
810.2 of the Government Code. That section provides: "Employee includes an
officer ... employee, or servant, whether or not compensated, but does not include an
independent contractor." Employee also includes any volunteer designated by the
Member to perform specific functions in the course and scope of authorized activities
under the direction and control of the Member.
Employee Benefit Administration Liability means liability for injury or damage caused
by or arising out of any negligent act, error or omission of the.Protected Party in the
Administration of the Member's Employee Benefits Programs.
Employee Benefits Program means group life insurance or self-insurance, group
[medical, dental or vision -.care insurance or self-insurance, pension plans, retirement
plans, deferred compensation plans, workers' compensation, unemployment insurance,
social benefits, disability benefits, and other similar employee benefits.
Employment Practices Injury means injury arising out of the following offenses:
A. Wrongful dismissal, discharge, or termination of employment;
B. Breach of any oral or written employment contract or quasi -employment contract;
C. Employment-related coercion or misrepresentation;
D. Violation of employment discrimination laws;
E. Workplace sexual or other harassment;
F. Wrongful failure to employ or promote;
G. Wrongful discipline, negligent evaluation, or wrongful demotion;
H. Wrongful deprivation of a career opportunity; or
I. Employment-related:
(i) Invasion of privacy,
(ii) Defamation, or
(iii) Wrongful infliction of emotional distress.
Fungi means any type or form of fungus, including mold or mildew and any mycotoxins,
spores, scents, or byproducts produced or released by fungi.
Hostile Fire means a fire that becomes uncontrollable and breaks out from where it is
intended to be.
Levee means a permanent embankment intentionally constructed for the purpose of
preventing overflow of a watercourse or body of water.
Medical Benefit means the cost of all benefits to which a City Manager is entitled under
the Comprehensive Omnibus Budget Reconciliation Act of 1986 (COBRA).
Member means the entity, including all of its departments and constituent agencies, that
is a signatory to the Joint Powers Agreement creating the Authority as may be amended
from time to time, which has adopted a resolution to participate in the Program, and
Memorandum of Liability Coverage Page 6 of 24 July 1, 2009 —July 1, 2010
whose name appears on the Cover Page of this Memorandum. Member includes any
other agency for which the Member's governing board or council acts as the governing
board, and also includes any commissions, agencies, districts, authorities, redevelopment
agencies, boards, or similar entities coming under the Member's direction and control.
Member shall include any other agency authorized by the Authority's Executive
Committee or Board of Directors.
Memorandum means this Memorandum of Liability Coverage authorized by the Joint
Powers Agreement of the Authority specifying the terms and conditions of the Program
through which certain specified and limited self-insured risks of liability are administered
by the Authority and shared by its Members.
Nuclear Material means "source material," "special nuclear material," or "by-product
material" as those terms are given meaning in the Atomic Energy Act of 1954 or any law
amendatory thereto.
Occurrence means:
A. With respect to Bodily Injury or Property Damage, an accident, including
continuous or repeated exposure to conditions, that first occurs during the
Protection Period and that results in Bodily Injury or Property Damage neither
expected nor intended from the standpoint of the Protected Party;
B. With respect to Public Officials Errors and Omissions, actual or alleged conduct
described in the definition of Public Officials Errors and Omissions during the
Protection Period;
C. With respect to Employee Benefits Administration Liability, actual or alleged
conduct described in the definition of Employee Benefits Administration Liability
during the Protection Period;
D. With respect to Personal Injury, Broadcast/Publication Injury, and Employment
Practices Liability, an offense described in the definitions of those terns; or
E. With respect to Termination of City Manager's Employment Liability, injury
arising out of:
(i) Dismissal, discharge, or termination of the employment of a City Manager;
or
(ii) Failure to renew an employment contract which results in termination of the
employment of a City Manager
for which liability on the part of a Protected Party can be settled through the
acceptance by the City Manager of an Unemployment Protection Payment in
exchange for a Waiver and Certification.
All claims based on or arising out of Harassment or similar conduct (including
molestation or sexual abuse) by an Employee, or more than one Employee acting in
concert, will be considered arising out of one Occurrence and shall be deemed to have
been committed at the time of the first of such acts or alleged acts, regardless of the
number of:
(i) Protected Parties;
Memorandum of Liability Coverage Page 7 of 24 July 1, 2009 —July 1, 2010
(ii) Claims made or Suits brought; or
(iii) persons or organizations that sustain injuries or Damages.
If a series of wrongful acts committed by one Employee, or more than one Employee
acting in concert, takes place over more than one Protection Period, the wrongful acts
will be deemed to have been committed during the first Protection Period and only the
Protection Limit for that Protection Period shall apply.
Personal Injury means injury, other than Bodily Injury, Property Damage or Public
Officials Errors and Omissions, resulting from one or more of the following offenses:
A. False arrest, detention, or imprisonment;
B. The use of force for the purpose of protecting persons or property;
C. Malicious prosecution or abuse of process;
D. Wrongful entry by any employee of the Member into a room, dwelling, or other
similar premises that a person occupies;
E. Wrongful eviction by any employee of the Member of a person from a room,
dwelling, or other similar premises that such person occupies;
F. The publication or utterance of a libel or slander, including statements that
disparage a person's or organization's goods, products, or services;
G. A publication or utterance that. violates a person's right of privacy;
H. Interference with an existing or prospective economic advantage, contract, or
agreement;
I. Discrimination;
J. Violation of civil rights; or
K. Infliction of emotional distress.
Pollutants/Hazardous Materials includes without limitation:
A. Any flammable or explosive substances, radioactive materials, asbestos, poly-
chlorinated biphenyls, chemicals, substances known to cause cancer or reproductive
toxicity, pollutants, contaminants, hazardous wastes, toxic substances, or related
materials which are regulated by or under any federal, state, or local environmental
law;
B. Any material identified as hazardous in Sections 66261.10 through 66261.126 of
Title 22 of the California Code of Regulations, as amended from time to time
(collectively);
C. Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste. The term "waste" includes
materials to be recycled, reconditioned, or reclaimed; and
D. Fungi and bacteria of any kind, unless caused by an otherwise covered Occurrence.
Program means the California Joint Powers Insurance Authority Liability Protection
Program described by this Memorandum and the Agreement of the Members creating
Memorandum of Liability Coverage Page 8 of 24 July 1, 2009 — July 1, 2010
the Authority. The Program is a fund created by the Members for the purpose of
pooling self-insured losses.
Property Damage means:
A. Physical injury to or destruction of tangible property which occurs during the
Protection Period, including the loss of use thereof at any time resulting there
from; or
B. Loss of use of tangible property that has not been physically injured or destroyed
provided such loss of use is caused by an Occurrence during the Protection
Period.
Protected Contract means a written agreement that satisfies all of the following:
A. The agreement pertains to the Member's operations and by the contract terms the
Member assumes the Tort Liability of another to pay damages because of Bodily
Injury or Property Damage to a third person or organization;
B. The agreement is entered into prior to the Bodily Injury or Property Damage for
which a Claim is made; and
C. The agreement, including its value, is reported by the Member and approved by the
Authority through issuance of an evidence of coverage letter prior to the Bodily
Injury or Property Damage and the value is added to the Member's annual
payroll for use in the annual retrospective deposit computation.
A Protected Contract may cover an architect, engineer, or surveyor for his or her
role as a Public Official, except for the application of paragraphs B.(i) and B.(ii)
below. Protected Contracts may apply to contract public works. directors, building
officials, planning directors, City Managers, city attorneys, city prosecutors,
redevelopment directors, or other contracted Public Officials for occurrences arising
out of their official duties, but this coverage applies only to the named contract
Public Official and does not extend to other individuals within the contractor's firm.
A Protected Contract does not include any part of any contract or agreement:
A. That indemnifies any person or organization for injury or damages caused by or
arising out of the ownership, operation, maintenance or use of any Aircraft,
Airport or Watercraft;
B. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply
in the instance where an individual is under an exclusive contract as a contract
Public Official solely for the benefit of the Member (i.e., no work is performed by
the person for any other person or entity), for injury or damage arising out of
(i) Preparing, approving, or failing to prepare or approve maps, drawings,
opinions, reports, surveys, change orders, designs or specifications; or
(ii) Giving or failing to give directions or instructions, if that is the primary cause
of the injury or damage;
C. Under which the Protected Party, if an architect, engineer, or surveyor, assumes
liability for injury or damage arising out of the Protected Party's rendering or
Memorandum of Liability Coverage Page 9 of 24 July I, 2009 - July 1, 2010
failing to render professional services, including those listed in B. above and
supervisory, inspection, or engineering services;
D. That indemnifies any person or organization for damages by fire, explosion, or
water damage to premises rented or loaned to the Member; or
E. That indemnifies any person or organization in connection with the establishment,
designation, or implementation of a Quiet Zone.
Limited Protected Contract means a written agreement in which:
A. The Member is merely seeking to utilize real or personal property and by the
contract terms assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third person and Authority staff has
determined in its sole discretion that any risks assumed in the agreement do not
significantly increase the Member's risk exposure; or
B. The Member is obligated to provide evidence of coverage for a third party to
participate in a funding program administered by another govermnent or evidence of
coverage required by bond indentures entered into by the Member if Authority
staff has determined in its sole discretion that any risks assumed in the agreement do
not significantly increase the Member's risk exposure;
and which is entered into and approved by the Authority prior to the Bodily Injury or
Property Damage for which a Claim is made.
A Limited Protected Contract does not include any part of any contract or agreement
that indemnifies any person or organization for injury or damages caused by the sole
negligence of such person or organization, or that cannot be included in a Protected
Contract.
Protected Party means:
A. The Member named on the Cover Page;
B. Persons who are, or were, elected or appointed officials or Employees of the
Member, whether or not compensated, while acting within the scope of their duties
or employment as such, including while acting on outside committees,
commissions, or boards at the direction of the Member, except that the protection
so provided does not apply to Bodily Injury to another official or employee of the
Member in the course of and arising out of his or her duties to or employment by
the same Member;
C. Any nonprofit California corporation or unincorporated association under written
contract, approved by the Member's governing board or council; to perform
specified functions under the Member's direction and control. The corporation or
unincorporated association is a Protected Party only for Occurrences arising out
of the functions described in the contract. For the purposes of this section, direction
and control means the authority of the Member to be involved in decision making
and to overturn decisions;
D. Any person or entity identified as an additional Protected Party in a letter
certifying such additional Protected Party status issued by the Authority, for
Memorandum of Liability Coverage Page 10 of 24 July 1, 2009 — July 1, 2010
Occurrences during the time period identified in the letter; if a particular activity is
identified in the letter, the person or entity is a Protected Party only for
Occurrences arising out of the described activity. Additional Protected Party
status will apply only where required by the terms of a Protected Contract or
Limited Protected Contract;
E. Any person while using an Automobile owned, hired, or leased by a Member, and
any person or organization legally responsible for the use thereof, provided the use
is with the express permission of the Member, and only for Bodily Injury and
Property Damage. This protection does not apply to:
(i) Any person or organization, or any agent or employee thereof, engaged in
selling, repairing, servicing, delivering, testing, road testing, parking or
storing, Automobiles, with respect to any Occurrence arising out of any such
occupation or activity;
(ii) With respect to any hired automobile, to the owner or a lessee thereof, other
than the Member, or to any agent or employee of such owner or lessee; or
(iii) Any person or organization or to any agent or employee thereof engaged in a
business of operating buses or other Automobiles for the transport of
members of the public unless that business is owned by the Member and
operated by its employees.
(This Memorandum does not provide Underinsured or Uninsured Motorist
coverage.); or
F. The Authority, its officers and employees while acting in the course and scope of
their duties or employment.
No person or entity is a Protected Party with respect to the conduct of any current or
past partnership, joint venture or joint powers authority (including any separate entity
created pursuant to a joint powers agreement). However, for any person who is an
official or Employee of a Member, who participates in the activities of a partnership,
joint venture, or joint powers authority and is acting for or on behalf of the Member at
the time of the Occurrence, protection is afforded by this Memorandum. Such
coverage shall be in excess of, and shall not contribute with, any collectible insurance,
self-insurance or other coverage provided to the other joint powers authority, agency or
entity.
Protection Period means the time period shown on the Cover Page of this
Memorandum.
Public Officials Errors and Omissions means any act, error, omission, misstatement,
misleading statement, neglect, or breach of duty by any Protected Party in the discharge
of that individual's duties for the Member; or any matter claimed against any Protected
Party solely by reason of the individual being or having been an employee of the
Member. Public Officials Errors and Omissions does not include Bodily Injury,
Property Damage, Personal Injury, Broadcast/Publication Injury, or Employment
Practices Injury.
Memorandum of Liability Coverage Page 11 of 24 July 1, 2009 - July 1, 2010
Quiet Zone means a segment of a rail line, within which is situated one or a number of
consecutive public highway -rail crossings at which locomotive homs are not routinely
sounded. Quiet Zone includes partial quiet zone, a segment of a rail line within which is
situated one or a number of consecutive public highway -rail grade crossings at which
locomotive horns are not routinely sounded for a specified period of time during the
evening and/or nighttime hours.
Radioactive Contamination Injury means Bodily Injury or Property Damage caused
by or arising from ionizing radiations or contamination by radioactive material.
Suit means a civil proceeding in which a Protected Party is named as a defendant or
cross defendant, or an arbitration proceeding or alternative -dispute resolution proceeding
to which a Protected Party submits with the Authority's written consent.
Termination for Cause means dismissal, discharge, termination of employment, or
failure to renew a contract for the reasons stated in 29 USC § 1111, of the Employee
Retirement Income Security Act of 1974. This includes ending the employment of a City
Manager because the City Manager has been convicted of robbery, bribery, extortion,
embezzlement, fraud, grand larceny, burglary, arson, a felony violation of a state or
federal law regulating a controlled substance (felony drug conviction), murder, rape,
kidnapping, perjury, assault with intent to kill, or any felony involving abuse or misuse of
the City Manager's position to obtain illegal personal gain.
Tort Liability means civil liability that would be imposed by law in the absence of any
agreement or contract.
Unemployment Protection Payment means a payment that shall be paid once a month,
for a time period not to exceed six months (the "Payment Period") following the Waiting
Period, that shall equal the amount of the City Manager's salary at the time of the
termination of employment Occurrence plus payment of the Medical Benefit less any
amount of compensation earned, while self-employed or as an employee, or any other
payment received as a result of the Occurrence during the Payment Period.
"Salary," for purposes of this Unemployment Protection Payment, means the
regular monthly compensation of the City Manager, whether paid monthly, bi-
weekly, semi-monthly, or otherwise, and does not include Benefits, bonuses, car
allowances, expenses, or other allowances, contributions to the Public Employees
Retirement System or any deferred compensation payments made on behalf of the
City Manager by the Protected Party.
Waiting Period means a period of time after the termination of employment Occurrence
equal to the greater of (1) six months or (2) the number of months of salary received by
the City Manager as a severance payment from the Member.
Waiver means a full and complete relinquishment by a City Manager of any and all
rights to sue a Protected Party for any Benefit, compensation, injury, or damages,
known or unknown, past, present or future, arising out of the employment of, termination
of the employment of, or failure to employ the City Manager.
Watercraft means a vessel, more than 25 feet in length, designed to transport persons or
property in, on, or through water.
Memorandum of Liability Coverage Page 12 of 24 July 1, 2009 — July 1, 2010
4. EXCLUSIONS
This Memorandum, including any obligation to defend or to pay Defense Costs, does
not apply to:
A. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of the ownership, maintenance, use or operation of any Watercraft,
Aircraft, or Airport. Protection does apply to use of an Aircraft or Watercraft, if
the Aircraft or Watercraft is not owned in whole or in part by the Member.and the
Member exercises no part in the servicing or maintenance of the Aircraft or
Watercraft. However, this limited protection does not apply to:
(i) Loss, loss of use of, or damage to the Aircraft or Watercraft; or
(ii) Use of any Aircraft or Watercraft for hire or reward.
B. Any Claim, Suit, obligation or alleged obligation for which a Protected Party or
any insurance company as his/her/its insurer may be held liable under any workers'
compensation, unemployment compensation or disability benefits law, or under any
similar law.
C. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Bodily Injury
to:
(i) An employee of the Protected Party arising out of and in the course of
employment by the Protected Party; or
(ii) The spouse, child, parent, brother, or sister of that employee as a consequence
of paragraph (i) above.
This Exclusion C. applies whether the Protected Party may be liable as an
employer or in any other capacity, and to any obligation to share damages with or
repay someone else who must pay damages because of the injury. However, this
exclusion does not apply to liability assumed in a Protected Contract or Limited
Protected Contract.
D. Injury to or destruction of:
(i) Property owned by the Protected Party;
(ii) Property rented to or leased to the Protected Party where it has assumed
liability under any contract for damage to or destruction of such property
unless the Protected Party would have been liable in the absence of such
assumption of liability; or
(iii) Property in the care, custody, or control of any Protected Party.
E. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, arising
out of or in any way connected with the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation, by whatever name
called, whether such liability accrues directly against the Protected Party or by
virtue of any agreement entered into by or on behalf of the Protected Party. This
exclusion E. shall not apply to liability, loss, cost or expense arising from property
Memorandum of Liability Coverage Page 13 of 24 July 1, 2009 — July 1. 2010
damage caused by earth movement, subsidence of land, flooding not caused by the
failure of a Dam or Levee, or sewer backup, even though a legal theory upon which
a claimant seeks recovery is the principle of inverse condemnation.
F. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
actual, alleged or threatened discharge, dispersal, seepage, migration, release,
escape, or any other forms of exposure to or the presence of Pollutants/Hazardous
Materials including any Claim, Suit, liability, alleged liability, loss, cost or
expense directly or indirectly caused by or arising out of any:
(i) Request, demand, or order that any Protected Party or others test for,
monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any
way respond to, or assess the effects of Pollutants/Hazardous Materials;
(ii) Claim or Suit by or on behalf of a governmental authority or any other entity
or person for costs of or damages because of testing for, [monitoring, cleaning
up, removing, containing, treating, detoxifying, or neutralizing, or in any way
responding to, or assessing the effects of Pollutants/Hazardous Materials; or
(iii) Actions or steps taken to mitigate damages or to relocate persons, property or
business as a result of Pollutants/Hazardous Materials.
EXCEPTION TO EXCLUSION, PROTECTION FOR CERTAIN ACCIDENTAL
POLLUTION INJURIES. However this Exclusion F. does not apply to Bodily
Injury or Property Damage arising out of or caused by any actual, alleged or
threatened discharge, dispersal, seepage, migration, release or escape of
Pollutants/Hazardous Materials if:
(i) It was directly caused by Hostile Fire, explosion, lightning, windstorm,
vandalism or malicious mischief or collision, overturning or upset of a motor
vehicle or railroad vehicle; and
(ii) It was accidental and was neither expected nor intended by the Protected
Party; and
(iii) It was instantaneous and was demonstrable as having commenced at a specific
time and date during the term of this Memorandum; and
(iv) Its commencement became known to the Protected Party within seven days;
and
(v) Its commencement was reported in writing to the Authority within twenty
days of becoming known to the Protected Party; and
(vi) Reasonable efforts were expended by the Protected Party to correct or
terminate the discharge, dispersal, seepage, migration, release, or escape of
Pollutants/Hazardous Materials.
Nothing contained in this EXCEPTION TO EXCLUSION, PROTECTION FOR
CERTAIN ACCIDENTAL POLLUTION INJURIES shall operate to provide any
protection or obligation to defend or pay Defense Costs with respect to:
Memorandum of Liability Coverage Page 14 of 24 July I, 2009 —July I, 2010
(i) Any site or location used by others on the Protected Party's behalf for the
handling, storage, disposal, dumping, processing, or treatment of waste
material. This exclusion applies whether or not the action by others was
known to the Protected Party;
(ii) Any clean-up costs mandated by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and any similar laws
or statutes;
(iii) Clean up, removal, containment, treatment, detoxification or neutralization of
Pollutants/Hazardous Materials situated on premises the Protected Party
currently owns, rents or occupies; or
(iv) Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon
or arising out of Personal Injury or Public Officials Errors and Omissions.
G. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly based on or arising out of the hazardous properties of Nuclear Material.
However, this exclusion does not apply to Radioactive Contamination Injury.
H. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly caused by any complete or partial failure, interruption or surge in the
supply of water, electrical power, gas or fuel, unless such failure, interruption or
surge results from sudden and accidental physical destruction of tangible property
which is caused by the Protected Party.
1. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
partial or complete structural failure of a Dam or Levee.
J., Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, or
arising out of, or in connection with the operation of any hospital, clinic (including a
mobile clinic), or established health-care facility owned or operated by the
Protected Party, but protection does apply to liability arising out of the rendering
of emergency medical aid by paramedics, emergency medical technicians, or other
Protected Parties who are not acting in the course of their employment by a
hospital, clinic, or established health-care facility.
K. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of or in connection with:
(i) the ownership, maintenance, use, or operation by the Protected Party of any
railroad; or
(ii) the establishment, designation, or implementation of a Quiet Zone.
L. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, based
upon or arising out of the Employee Retirement Income Security Act of 1974,
Public Law 93-406, or any amendment or addition thereto, or any statute or
common law rule which imposes fiduciary duties and responsibilities with respect to
employee benefits or retirement plans; however this exclusion does not apply to
liability protected under Employee Benefit Administration Liability.
Memorandum of Liability Coverage Page 15 of 24 July 1, 2009 —July 1, 2010
M. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages or
fines or other damages iinposed primarily for the sake of example and by way of
punishing the Protected Party, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or pay
damages for a Claim, action or judgment for punitive or exemplary damages.
N. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of any violation of state or federal antitrust or restraint -of -trade laws.
O. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of:
(i) the adoption or administration of any ordinance, resolution or regulation; or
(ii) the approval or disapproval of any land -use entitlement including but not
limited to general plan amendments, zoning amendments, conditional -use
permits, tract maps, development agreements, owner -participation
agreements, or disposition -and -development agreements; or
(iii) the approval or disapproval of any rent control ordinance, outdoor advertising
ordinance, or adult bookstore ordinance.
This exclusion shall not apply to claims of neglect or failure to enforce any law.
P. Any Claim, Suit, liability, alleged liability, loss, cost, or expense including Tort
Liability:
(i) Arising out of or as a consequence of an actual or alleged breach of any
contract or agreement;
(ii) For any amount actually or allegedly due under the terms of any contract or
agreement; or
(iii) Arising out of or as a consequence of the failure, refusal, or inability of a
Protected Party or anyone acting on behalf of a Protected Party to enter
into or renew any contract or agreement.
However, this Exclusion P. shall not apply to Tort Liability imposed by law for
Damages caused by, arising out of, or as a consequence of failure or delay by a
Protected Party or anyone acting on behalf of a Protected Party to fully perform
any duties or obligations under any contract or agreement.
As used in this Exclusion P., the term "contract or agreement' shall include but not
be limited to a Protected Contract or Limited Protected Contract.
Q. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for declaratory,
injunctive, equitable or other relief, writs of mandate or prohibition or other
prerogative writs, or other relief not seeking Damages. This includes any expense
or cost incurred by a Protected Party arising from the cost of reasonable
accommodation of any disabled person, including any Employee.
R. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Personal
Injury or Broadcast/Publication Injury directly or indirectly caused by or arising
out of any:
Memorandum of Liability Coverage Page 16 of 24 July 1, 2009 — July 1, 2010
(i) Oral or written publication of material, if done by or at the direction of the
Protected Party with knowledge of its falsity;
(ii) Oral or written publication of material whose first publication took.place
before the beginning of the Protection Period; or
(iii) Act, omission, or offense committed by a Protected Party with actual malice.
S. Any liability for which the Protected Party is obligated to pay damages by reason
of liability assumed in a contract or agreement. This Exclusion does not apply to
liability for Bodily Injury or Property Damage:
(i) Assumed in a contract or agreement that is a Protected Contract or Limited
Protected Contract; or
(ii) That the Protected Party would have independent of a written contract or
agreement.
T. Any Claim or Suit by a Member against a Protected Party.
U. Any Claim or Suit by a Member against another Member.
V. Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon or
arising out of:
(i) Loss of, loss of use of, injury to, destruction of, diminution of value of,
disappearance of, or costs of recovery of any money or securities, or any
financial loss or default; -
(ii) Refunds of taxes, fees, or assessments; -
(iii) The issuance, management of proceeds or repayment of bonds, notes or other
debt instruments by any Member or any agent acting on behalf of such
Member; or
(iv) The purchase, transfer, or sale of any securities by any Member or agent
acting on behalf of such Member.
W. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Public
Officials Errors and Omissions Liability based upon or arising out of:
(i) Liability of any Protected Party arising out of estimates of probable costs or
cost estimates being exceeded or for faulty preparation of bid specifications or
plans including liability for mechanic's lien claims, stop notice claims, change
order claims, site differential claims, or similar claims for the value of services
or materials provided; this exclusion extends to such claims however
denominated, including claims of breach of oral or written contract, third
party beneficiary claims, quantum meruit claims, and/or open account claims;
(ii) Any Protected Party obtaining remuneration or financial gain to which the
Protected Party is or was not legally entitled;
(iii) Liability assumed by a Protected Party in a contract or agreement, but this
exclusion does not apply to liability for Damages that the Protected Party
would have independent of the contract or agreement; or
Memorandum of Liability Coverage Page 17 of 24 July 1, 2009 — July 1, 2010
(iv) Willful violation of penal code or ordinance committed by or with the
knowledge or consent of any Protected Party.
X. Under Employment Practices Injury, any Claim, Suit, liability, alleged liability,
loss, cost, or expense that:
(i) Constitutes benefits due or to become due or the equivalent value of such
benefits, including but not limited to perquisites, fringe benefits, payments in
connection with an employee benefits plan, or any other payment other than
salary or wages to or for the benefit of an employee arising out of the
employment relationship;
(ii) Is based upon, arises from, or is in consequence of the employment
reinstatement of the claimant by the Member or the continued employment of
the claimant;
(iii) Is based upon, arises from, or is a consequence of an Occurrence that began
prior to this Memorandum's Protection Period;
(iv) Constitutes front pay, future. damages or other future economic relief or the
equivalent thereof, if the Member has the option pursuant to a judgment or
other final adjudication but fails to reinstate the claimant as an employee; or
(v) Is based upon, arises from or is in consequence of an actual or alleged
violation of the responsibilities, obligations or duties imposed by the
Employee Retirement Income Security Act of 1974, the Fair Labor Standards
Act, the National Labor Relations Act, the Worker Adjustment and Retraining
Notification Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, the Occupational Safety and Health Act, rules or regulations
promulgated there under and amendments thereto or similar provisions of any
federal, state, or local statutory law or common law.
However, with respect to the exclusions listed in items (i) through (v) immediately
above, no fact pertaining to or knowledge possessed by any Protected Party shall
be imputed to any other Protected Party to determine if protection is available
under this Memorandum.
Y. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Employee
Benefit Administration Liability based upon or arising out of:
(i) Any dishonest, fraudulent, criminal or malicious act, libel, slander,
discrimination, or humiliation;
(ii) Failure of performance of contract by an insurer;
(iii) Failure of any investment plan to perform as represented by a Protected
Party;
(iv) Advice given by a Protected Party to an Employee to participate or not
participate in subscription plans; or
(v) The inability of any Employee Benefits Program to meet its obligations due
to insolvency or inadequacy of funding.
Memorandum of Liability Coverage Page 18 of 24 July 1, 2009 —July 1, 2010
Z. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for termination of
a City Manager's employment based upon or arising out of:
(i) Termination for Cause;
(ii) Lack of a duly executed Waiver; or
(iii) Lack of a duly executed Certification.
5. CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Protected Party's
property and operations at any time. Neither the Authority's right to make inspections
nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of
or for the benefit of the Protected Party or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulations. The Authority may examine and audit the Protected Party's books and
records at any time during the Protection Period and extensions thereof and within three
years after the final termination of this Program, as far as they relate to the subject
matter of this Memorandum.
B. Severabilityoflnterest
The term Protected Party is used severally and not collectively, and the protection
afforded applies to each Protected Party against whom a Claim is made as if a separate
Memorandum were issued to it, but the inclusion herein of more than one Protected
Party shall not operate to increase the per Member Protection Limit.
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
(i) In the event of any Occurrence, written notice containing particulars
sufficient to identify the Protected Party and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and the
names and addresses of the injured and of available witnesses, shall be given
by or for the Protected Party to the Authority's Claims Administrator as
soon as practicable.
(ii) If a Claim is made against a Protected Party, the Protected Party shall
immediately forward to the Authority's Claims Administrator every demand,
notice, summons or other process received by the Protected Party or the
Protected Party's representative.
(iii) The Authority's Claims Administrator will review the Claim, undertake
whatever investigation is indicated, and take appropriate action, depending on
the circumstances. A Claim may be returned to claimant as "insufficient," if
it does not contain minimum and essential information about the incident or
the identity of the claimant. A Claim may also be returned as "late," if the
prescribed time for filing has been exceeded. The Claims Administrator may
request that the Member reject the Claim, or take no action until further
Memorandum of Liability Coverage Page 19 of 24 July 1, 2009 - July 1, 2010
notice, or the such actions may be taken by the Claims Administrator if claims
handling authority has been delegated to the Authority by the Member.
(iv) The Protected Party shall cooperate with the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of Suits, and
in enforcing any right of contribution or indemnity against any person or
organization who may be liable to the Protected Party because of injury or
damage with respect to which protection, including any Defense obligation, is
afforded under this Memorandum; and the Protected Party shall not, except
at the Protected Party's own cost, voluntarily make any payment, assume
any obligation or incur any expense. No Claim shall be settled without the
prior written consent of the Authority, and the Authority shall not be
required to contribute to any settlement to which it has not consented.
D. Other Protection
If collectible_ insurance or any other coverage or protection with any insurer, any
permissibly self-insured general employer, joint powers insurance authority or any other
source is available to the Protected Party covering a loss also protected hereunder
(whether on a primary, excess or contingent basis), the protection hereunder (including
any Defense obligation) shall be in excess of, and shall not contribute with, such
insurance or other coverage or protection, provided that this clause does not apply with
respect to any insurance purchased by a Protected Party specifically to be in excess of
this Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such insurance,
coverage, or other protection, unless agreed to by the Member through a written
agreement approved by the Authority through the issuance of an evidence of coverage
letter prior to a loss.
E. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance with the
Joint Powers Agreement and Bylaws of the Authority.
F. Changes
Notice to any agent or knowledge possessed by any agent of the Authority or by any
other person shall not effect a waiver of or a change in any part of this Memorandum,
nor shall the terms of this Memorandum be waived or changed, except by a written
addendum issued by the.Authority to form a part of this Memorandum.
G. Subrogation
The Authority shall reserve the right to subrogate for any payments made
hereunder and to assume the Protected Party's recovery rights. The Protected
Party shall do nothing after loss to prejudice such rights and shall do everything
necessary to secure such rights. The Protected Party may waive subrogation
rights, but only through written agreement executed before the Occurrence giving
rise to the loss. The Authority shall have standing to seek subrogation recovery in
its own name or in the name of the Protected Party, and the Protected Party shall
cooperate with and assist the Authority in pursuing such recovery, including
assigning its right to recover subrogated amounts, and if necessary executing a
Memorandum of Liability Coverage Page 20 of 24 July 1, 2009 — July 1, 2010
written agreement to effect such assignment. Any amount so recovered shall be
apportioned as follows:
(i) The Authority shall be reimbursed to the extent of all payment under this
Memorandum. Any remaining balance shall be applied to reimburse the
Protected Party;
(ii) The expenses of such recovery proceedings shall be apportioned in the ratio of
respective recoveries. If there is no recovery in proceedings conducted solely by the
Authority, the Authority shall bear the expenses thereof.
H. Assignment
Assignment of interest under this Memorandum shall not bind the Authority until its
consent is endorsed hereon; if, however, the Member shall be adjudged bankrupt or
insolvent, such protection and Defense obligations as are afforded by this Memorandum
shall apply (a) to Member's legal representative, as the Member, but only while acting
within the scope of said representative's duties as such, and (b) with respect to the
property of the Member, to the person having proper temporary custody thereof, as a
Protected Party, but only until the appointment and qualification of a legal
representative.
I. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms and
provisions of the Agreement creating the Authority, and in the event of any conflict
between the terms and provisions of said Agreement and this Memorandum, the terms
and provisions of the Agreement shall control.
Appeal of Disputes
No party is entitled to appeal or arbitrate claims under this -Memorandum other than the
Member. Specifically, Employees are not intended to be third party beneficiaries of this
agreement and shall have no right to bring an action against the Authority for a
declaration of rights to protection under this Memorandum. The sole remedy of any
Employee shall be the Employee's right to defense or indemnity against the employing
Member under the provisions of the California Government Code.
Any disputes concerning coverage, protection, Defense obligations, or procedures of the
Program, as interpreted by the Authority's staff, shall be appealed to the Authority's
Executive Committee in accordance with the following procedures.
(i) A written notice that a Claim is not covered by the Memorandum will
normally be provided to the Member by the Claims Administrator. A
Member may request any determination of a lack of coverage made by the
Claims Administrator to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of the
written notice from the Claims Administrator.
(ii) Upon request, the Chief Executive Officer shall review a determination of a
lack of coverage made by the Claims Administrator or Authority staff and
shall send to the Member a written determination of coverage.
Memorandum of Liability Coverage Page 21 of 24 July 1, 2009 -July 1, 2010
(iii) If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees. Appeals
must be in writing within 90 days of the date of the Chief Executive Officer's
written decision. The appeal request must state why the Member disagrees
with the denial, and the Member should present any information that may
have a bearing on the ultimate determination of coverage.
(iv) The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall notify
the Member in advance of the meeting at which its appeal will be presented.
(v) If the Member would like to personally address the Appeals Committee, the
Member or the Member's representative may attend the meeting and speak
to the issue.
(vi) The Appeals Committee may refer the appeal to the Coverage Committee and
consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's decision
in writing.
(vii) Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
Occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in this paragraph
J., upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
If a Member disputes a coverage issue, then, during the course of the administrative and
arbitration proceedings provided herein, the Authority shall defend the Claim against the
Member and have the right to control any settlement of that Claim, subject to the right
of the Authority to recover from the Member any amounts paid out by the Authority
for such defense or settlement which are finally determined by the Appeals Committee,
or as a result of the Binding Arbitration Process, not to be owed by the Authority under
the Program.
K. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5.J. Appeal of
Disputes and disagrees with the final determination of the Appeals Committee, the
Member may request consideration of the coverage issue through the Authority's
Binding Arbitration Process.
The Arbitration process shall be as follows
Memorandum of Liability Coverage Page 22 of 24 July I, 2009 — July 1, 2010
(i) Following a decision by the Appeals Committee, the appealing Member shall
notify the Chief Executive Officer in writing, within 30 days of the Appeals
Committee's final decision, that it wishes to participate in Binding Arbitration
and shall submit a non-refundable $1,000 arbitration appeal fee. The written
notice shall specify the grounds for the arbitration.
(ii) Following payment of the arbitration appeals fee, the name of each Member,
other than the appealing Member and the Members represented on the
Appeals Committee, shall be placed in an unmarked envelope. Each envelope
shall be placed in a box and eleven envelopes shall be drawn by the Chief
Executive Officer. A representative of the appealing Member may be present
at the drawing.
(iii) The City Managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their City Managers shall
be given in writing to the appealing Member.
(iv) The appealing Member shall have the right to strike two or less names from
the pool for any reason which shall not be disclosed. The Authority shall
have the right to strike two or less names from the pool for any reason which
shall not be disclosed. The appealing Member and the Authority must strike
names within five business days of the drawing. The right of either party to
strike names shall lapse at 5:00 PM on the fifth day following the drawing.
Notice of names stricken by either party shall be given in writing to the other
party prior to 5:00 PM on the fifth day following the drawing.
(v) The remaining City Managers shall be contacted by the Chief Executive
Officer to determine their willingness to serve on the arbitration panel. If
more than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be the
arbitration panel and they shall be disclosed in writing to the appealing
Member.
(vi) If only five are willing to serve, they shall be the arbitration panel.
(vii) If fewer than five are willing to serve, the name of each member not drawn in
the previous selection drawing shall be placed in an unmarked envelope, put
in a box, and four envelopes shall be drawn for each arbitration panel position
needed to have a five -member panel. A representative of the appealing
Member may be present at the drawing. The names drawn shall be disclosed
to the appealing Member who may reject, for any reason which shall not be
disclosed, one name for each four names drawn. The Authority may also
reject one name for each four names drawn and shall not disclose the reason.
Names rejected by the appealing Member and the Authority must be rejected
within 48 -hours of the drawing. The right to reject names shall lapse 48 -hours
following the drawing.
(viii) The City Managers of the Members remaining shall be contacted by the
Chief Executive Officer to determine their willingness to serve on the
Memorandum of Liability Coverage Page 23 of 24 July 1, 2009 - July 1, 2010
M
arbitration panel. The names of those willing to serve shall be placed in
unmarked envelopes, put in a box, and the number necessary to fill out the
arbitration panel shall be drawn by the Chief Executive Officer and disclosed
in writing to the appealing Member. A representative of the appealing
Member may be present at the drawing.
(ix) This process shall be repeated until five members are obtained for the
arbitration panel.
(x) The arbitration panel members shall be compensated at the rate of $125 per
half-day or portion thereof. If a panel member is required to stay away from
home overnight, lodging shall be paid by the Authority. Necessary meals
shall be provided for all panel members. Mileage costs shall be reimbursed by
the Authority at its standard rate.
(xi) The cost of the arbitration panel shall be borne by the Authority. The cost of
presentation by the appealing Member, including preparation, exhibits,
attorneys, and all other costs of the Member shall be paid by the Member.
(xii) The arbitration panel may request legal counsel that shall be selected by the
Chief Executive Officer and paid for by the Authority. Legal counsel shall
not be the counsel for the Authority that has advised the staff and Executive
Committee. However, counsel for the Authority may participate in or make
the presentation to the arbitration panel on behalf of the Authority, as
requested by the Chief Executive Officer.
(xiii) The parties to the arbitration shall not be governed by formal rules of
evidence.
(xiv) The arbitration panel's decision shall be final and binding on the Member and
the Authority.. Decisions of the arbitration panel shall be by majority vote.
(xv) The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future arbitration
panels for precedent.
Memorandum of Liability Coverage Page 24 of 24 July 1, 2009 — July 1, 2010
Memorandum of Workers' Compensation and
Employer's Liability Coverage
Issued to the City of Rosemead
Effective July 1, 2009 — July 1, 2010
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July 1, 2009 —July I, 2010, as a joint protection program authorized pursuant to
Article I I (a) of the California JPIA joint powers agreement
Providing Innovative Risk Alcuzngement Solalions For Our Public Agency Partners
CALIFORNIA
COVER PAGE
MEMORANDUM OF WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS:
Workers' Compensation: Statutory
Employer's Liability: $10,000,000 per occurrence
PROTECTION PERIOD: From July 1, 2009 at 12:01 a.m. Pacific Time until July 1,
2010 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South EI Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
W
CalifomiaJPIA
President
TABLE OF CONTENTS
1. INTRODUCTION
2. COVERAGE
A. Workers' Compensation
B. Employer's Liability
C. Other Coverages
3. DEFINITIONS
4. EXCLUSIONS
5. CONDITIONS AND RESPONSIBILITIES
1
2
2
3
6
6
8
9
MEMORANDUM OF WORKERS' COMPENSATION
AND EMPLOYER'S LIABILITY
COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
1. INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of workers' compensation and employer's liability are
administered by the Authority and shared by its Members pursuant to the Joint Powers
Agreement creating the Authority under the provisions of §6500 et seq. of the
Government Code.
As provided in §990.8 of the Government Code, pooling of losses in this Program is not
insurance. The sole duty of the Authority is to administer the Program adopted by the
Members. The Authority will pay on behalf of members the liability only for Claims or
losses which are pooled under the terms of this Memorandum and the Joint Powers
Agreement.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors at a regular meeting or at a special
meeting called for that purpose.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Member or
the.Authority. Any controversy or dispute arising out of or related to an interpretation or
breach of this Memorandum shall be settled in accordance with the appeals procedures
as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. Definitions.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page I of 15 July 1. 2009 —July 1. 2010
2. COVERAGE
In consideration for Member's payment of the required primary deposit for participation
in this Program, and subject to all terms and conditions set forth in this Memorandum,
the Program agrees to provide the following protection:
A. Workers' Compensation
The Program will pay on behalf of the Member workers' compensation benefits
for bodily injury by accident or occupational disease, including resulting death,
deemed compensable under the laws of the State of California, and sustained by
an Employee.
The Program will provide for the administration and defense of Claims for
workers' compensation benefits, including investigation, payment of benefits,
compliance with reporting requirements for Claims administration, and
settlement. The Program, at its discretion, will choose and manage service,
providers necessary to fulfill its objectives; including third party Claims
administrators, medical management providers, defense attorneys, investigators,
etc.
Coverage is subject to the following conditions:
Bodily injury by accident must arise out of and in the course of
employment by the Member and must occur during the Protection
Period.
2.' Occupational disease must be caused by or aggravated by the conditions
of employment, and the exposure must occur during the Protection
Period.
3. Bodily injury or occupational disease from presumptive causations
contained in Labor Code §3212 et seq. or other California governmental
codes must occur during the Protection Period.
4. Coverage is limited to amounts the Member is legally liable to pay after
apportionment to pre-existing, concurrent or subsequent injuries or
illnesses as defined by law.
5. The Program will pay temporary disability, permanent disability and
death benefits at the statutory rates defined in the California Labor Code
(Labor Code Division 4, Part 2, Chapter 2, Articles 3, 4, 4.5 and 5). If the
Member pays the Employee for periods of temporary disability per a
salary continuation plan under a collective bargaining agreement,
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 2 of 15 July I, 2009—July 1, 2010
memorandum of understanding or other employment agreement, the
Program will reimburse the Member at the statutory temporary disability
benefit rate for those periods paid by the Member.
6. If the Employee is eligible to receive salary continuation in lieu of
temporary disability under Labor Code §4850 et seq., the Program will
reimburse the Member at the statutory rate for temporary disability
benefits that the Member would be obligated to pay if Labor Code §4850
et seq. did not apply.
7. Employees on temporary assignment or traveling for Member business
outside the State of California who sustain an injury or occupational
disease are covered for benefits under this Program. Benefits will be paid
on behalf of the Member up to the amount payable under the workers'
compensation laws of the State of California, regardless of the jurisdiction
selected by the Employee.
B. Employer's Liability
The Program will indemnify the Member, where permitted by law, for Loss
arising from bodily injury or occupational disease, including resulting death.
Coverage is subject to the following conditions:
(a). Bodily injury by accident must arise out of and in the course of
employment by the Member. Occupational disease must be caused
by or aggravated by the conditions of employment. The accident
or period of exposure must occur during the Protection Period.
Bodily injury does not include emotional distress, anxiety,
discomfort, inconvenience, depression, dissatisfaction or shock to
the nervous system, unless caused by either a manifest physical
injury or a disease with physical dysfunction or condition resulting
in treatment by a licensed physician or surgeon.
(b). Bodily injury or occupational disease suffered by Employee is not
covered by workers' compensation law.
(c). The Employee's duties are necessary or incidental to work
conducted by the Member.
(d). The Member timely and fully pursues all available remedies for
contribution or indemnification from any and all other available
sources.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 3 of 15 July I, 2009 — July I, 2010
(e). The original Claim or Suit and related legal actions for damages
are brought in the State of California or under the laws of the State
of California.
2. Subject to the foregoing provision of B. Employer's Liability, the
Program shall:
(a). Indemnify the Member for all sums legally payable as damages
under this section. Damages include:
Amounts for which the Member is liable to a third party by
reason of a Claim, Suit or proceeding against the Member
to recover damages suffered by the third party; or
ii. Damages for care and loss of services of an injured
employee of the Member; or
iii. Damages for consequential bodily injury to a spouse, child,
parent, or sibling of the Employee, provided that such
damages are the direct consequence of injury or disease
arising out of and in the course of the Employee's
employment by Member.
iv. Injury or disease to an Employee arising out of and in the
course of employment, claimed against the Member in a
capacity other than as Employer.
(b). Defend, at the Program's expense, any Claim, proceeding or Suit
against the Member for damages payable under this section. The
Program has the right to investigate and settle these Claims,
proceedings and Suits. The Program has no duty to defend any
Claim, proceeding or Suit that is not covered by this Program.
The Program has no duty to defend or continue defending after
the Program has paid its maximum amount of coverage.
(c). Pay the following costs, in addition to the other amounts payable
under this section, as part of any Claim, proceeding or Suit the
Program defends:
Reasonable expenses incurred at the Program's expense,
but not loss of earnings;
Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to twice the maximum amount
of coverage under this Program;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 4 of 15 July I, 2009 — July 1, 2010
iii. Litigation costs taxed against the Member;
iv. Interest on a judgment as required by law; and
Other expenses incurred by the Program in discharging the
obligation of the Program or its members under this
section.
The following are excluded from coverage under this section:
(a). Damages arising out of the actual or alleged discharge of coercion;
criticism; demotion; evaluation; reassignment; discipline;
defamation; harassment; humiliation; discrimination against;
termination of; wrongful dismissal or discharge; breach of any oral
or written employment contract or quasi -employment contract;
misrepresentation; violation of employment discrimination laws;
workplace sexual or other harassment; wrongful failure to employ
or promote; wrongful discipline; negligent evaluation; wrongful
demotion; wrongful deprivation of a career opportunity;
employment-related invasion of privacy, defamation or wrongful
infliction of emotional distress; or any other personnel practices,
policies, acts or omissions, of any Employee, including Claims
brought under Americans with Disabilities Act, Family Medical
Leave Act, Pregnancy Disability Leave Act, Equal Opportunities
Act, Fair Employment and Housing Act, or any other such State or
Federal act;
(b). Any obligation of any type that is imposed by a workers'
compensation, occupational disease, unemployment compensation,
occupational health and safety law, or disability benefits law, or
any similar law;
(c). Damages for any injury or disease for any Employee engaged in
work subject to the Longshore and Harbor Workers' Compensation
Act, the Outer Continental Shelf Lands Act, the Defense Base Act,
the Jones Act, the Federal Employers Liability Act, or any other
Federal workers' compensation or occupational disease law, or any
international workers' compensation law;
(d). Punitive or exemplary damages, however characterized, or
damages, fines or penalties imposed under the Migrant and
Seasonal Agricultural Worker Protection Act, or for violation of
any other Federal, state, county or other law, regulation or
ordinance;
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 5 of 15 July I, 2009 — July 1, 2010
C. Other Coverages
Defense of Serious & Willful Misconduct Allegation (Labor Code §4553)
or Alleged Discrimination Prohibited by Labor Code § 132a.
The Authority may, at its own discretion, elect to defend a Member
against Claims alleging Serious & Willful Misconduct or a violation of
§ 132a. Such defense will be provided by an attorney assigned by the
Authority. Any penalties awarded for Serious & Willful Misconduct or
violation of § 132a will be the responsibility of the Member. The
Member may elect to defend itself with counsel of its own choosing, at its
own expense.
3. DEFINITIONS
A. Authority means the California Joint Powers Insurance Authority.
B. Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
C. Claim means a notice, demand, or Suit against a Member to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing or any other administrative or regulatory agency.
D. Damages means compensation in money recovered by a party for loss or
detriment it has suffered. Damages does not include defense of Claims or any
punitive, exemplary or multiplied damages or non -monetary relief or redress or
injunctive relief.
E. Defense Costs means all fees and expenses incurred in connection with the
administration, investigation, defense, and appeal of a Claim covered hereunder,
including attorney fees, court costs, premiums for appeal bonds, and interest on
judgments accruing after the entry of judgment, and also shall include the costs of
any Claims administrator or defense counsel assigned by the Authority to
respond to any Claim on behalf of the Authority. Defense Costs shall not
include the office expenses of the Member, nor the salaries of employees or
officials of the Member, nor expenses of any Claims administrator engaged by
the Member. Defense Costs also do not include any fee or expense relating to
coverage issues between the Authority and any Member.
Discrimination means injury caused by or arising out of:
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 6 of 15 July I, 2009 — July I, 2010
Unlawful discrimination because of race, sex, color, age, religion, or
national origin, or membership in any similarly legally protected class; or
Violation of the discrimination prohibitions of the Americans with
Disabilities Act of 1990, any rules or regulations promulgated thereunder
and amendments thereto or similar provisions of any Federal, state, or
local statutory law or common law.
G. Employee includes any person falling within the definition of "employee" under
Labor Code Division 4, Chapter 2, Article 2. Volunteers are considered
employees under this Memorandum only if the Member has a resolution in
effect, and passed prior to the date of injury or illness at issue, providing workers'
compensation coverage to volunteers under Labor Code §3363.5, and while
performing specific functions in the course and scope of authorized activities
under the direction and control of the Member.
H. Loss means amounts actually paid by the Program for statutory workers'
compensation benefits, employer's liability Claims and allocated costs for
investigation, administration and defense of Claims under this Memorandum of
Coverage.
I. Member means the entity, including all of its departments and constituent
agencies, which has adopted a resolution to participate in the Program and
become a signatory to the Joint Powers Agreement creating the Authority as may
be amended from time to time, whose name appears on the Cover Page of this
Memorandum. Member includes any other agency for which the Member's
governing board or council acts as the governing board, and also includes any
commissions, agencies, districts, authorities, redevelopment agencies, boards, or
similar entities coming under the Member's direction and control. Member shall
include any other agency authorized by the Authority's Board of Directors. The
Member must be approved for self-insurance by the Office of Self Insurance
Plans and maintain its qualification for self-insurance during the Protection
Period.
J. Memorandum means this Memorandum of Workers' Compensation and
Employer's Liability Coverage authorized by the Joint Powers Agreement of the
Authority specifying the terms and conditions of the Program.
K. Occurrence means a single accident or event causing bodily injury to one or
more employees; or occupational disease sustained by one or more employees as
a result of an outbreak of the same communicable disease, or sudden and
accidental exposure to the same environmental hazard.
L. Program means the California Joint Powers Insurance Authority's Workers'
Compensation and Employer's Liability Program described by this
Memorandum and the Agreement of the Members creating the Authority. The
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 7 of 15 July I. 2009 — July 1. 2010
Program is a fund created by the Members for the purpose of pooling self-
insured losses.
M. Protection Period means the time period shown on the Cover Page of this
Memorandum.
N. Suit means a civil proceeding in which a Member is named as a defendant or
cross-defendant, or an arbitration proceeding or alternative -dispute resolution
proceeding to which a Member submits with the Authority's written consent.
4. EXCLUSIONS
This Memorandum, including any obligation to indemnify, defend or pay Defense
Costs, does not apply to:
A. The Member's obligation to pay salary in lieu of temporary disability benefits
under Labor Code §4850, except to the extent that the Member would be
obligated to pay temporary disability benefits in the absence of the mandate of
§4850.
B. The Member's obligations under Labor Code §4856 to provide health benefits.
C. Injury or disease to an Employee while knowingly employed in violation of law;
D. Injury or disease intentionally caused or aggravated by or at the direction of the
Member;
E. Penalties or fines imposed for violation of Labor Code 132a or Labor Code §4553
(Serious & Willful Misconduct);
F. Penalties or self-imposed benefit increases for violations of Labor Code §5814 et
seq. attributable to the Member's actions;
G. Damages arising out of, or in any way related to, operations with respect to which
the Member:
1. has violated or failed to comply with any workers' compensation law, or
any provision thereof, or
2. has rejected any workers' compensation law.
H. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages
or fines or other damages imposed primarily for the sake of example and by way
of punishing the Member, including liability of a Member to defend or pay
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 8 of 15 July I, 2009 — July I, 2010
damages where the governing body thereof has elected to provide a defense or
pay damages for a Claim, action or judgment for punitive or exemplary damages.
Any liability for which the Member is obligated to pay damages by reason of
liability assumed in a contract or agreement.
5. CONDITIONS AND RESPONSIBILITIES
A. General Obligations
The Member agrees to abide by all employment, equal opportunity, anti-
discrimination, health and safety laws, statutes and regulations. It understands
that, among other obligations, it has a non -delegable duty to provide employees
with a safe place to work, and training in safe work practices. The Member
agrees to abide by all applicable wage and hour laws, collective bargaining
agreements, memoranda of understanding, and other statutes and regulations
regarding working conditions.
The Member agrees to immediately report every occupational injury or illness
which results in medical treatment, or any claim by an Employee for workers'
compensation benefits, to the Authority or the Authority's designed
administrator, but in no instance to report such injury, illness or claim more than
five days after date of knowledge or as otherwise required by Labor Code
§6409.1. The Member agrees to give every employee a claim form pursuant to
Labor Code 5401 within one working day of receiving notice or knowledge of a
claim or potential claim. In the event of an injury or illness, the Member agrees
to provide first aid or arrange for appropriate immediate medical care. The
Member agrees to provide suitable temporary modified or alternate duty .
whenever possible for employees with workers' compensation injuries, and agrees
to conduct interactive accommodation meetings as required by A132222.
B. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Member's
records, property and operations at any time. Neither the Authority's right to
make inspections, nor the making thereof, nor any report hereon 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 or healthful, or are
in compliance with any law, rule or regulations. The Authority may examine and
audit the Member's books and records at any time during the Protection Period
and extensions thereof, and within three years after the final termination of this
Program, as far as they relate to the subject matter of this Memorandum.
Memorandum of Workers' Compensation
and Employer's Liability Coverage, Page 9 of 15 July I, 2009 — July I, 2010
C. Member's Duties in the Event of Occurrence, Claim or Suit
In the event of any Occurrence, written notice containing particulars
sufficient to identify the Member and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, anc
the names and addresses of the injured and of available witnesses, shall be
given by or for the Member to the Authority's claims administrator as
soon as practicable, but no later than required by statute or regulation.
2. If a Claim is made against a Member, the Member shall immediately
forward to the Authority's claims Administrator every demand, notice,
summons or other process received by the Member or the Member's
representative.
3. The Authority's claims Administrator will review the Claim, and under
the direction of the Authority, undertake the administration of the Claim,
including investigation, defense and settlement, as appropriate.
4. The Member shall cooperate with the Authority and, upon the
Authority's request, assist as appropriate in the resolution of the Claim,
including enforcing any right of contribution or indemnity against any
person or organization who may be liable to the Member because of
injury or damage to an Employee or Member property. The Member
shall not voluntarily make any payment, assume any obligation or incur
any expense.
D. Privacy and Confidentiality of Claim Records
All Claim records, including Claim files, examiners notes, medical reports,
subpoenaed records, correspondence, tapes and films, and whether electronic or
hard files, are the property of the Authority. Because these records may contain
confidential or private medical and/or psychological information related to
workers' compensation Claims administered by or on behalf of the Authority,
access to Claim files and the information contained therein is restricted to the
Authority and its agents and assigns, with the exception that the Member is
entitled to medical information limited to the diagnosis of the mental or physical
condition for which workers' compensation is being claimed and the treatment
provided for this condition, or what is necessary for the Member to have in order
to provide temporary or permanent modification or accommodation of the
employee's work duties.
E. Change in conditions
If a Member experiences a significant change in operations or conditions, the
Member shall notify the Authority as soon as practicable, and the Authority has
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 10 of 15 July I, 2009— July I, 2010
the right to an underwriting review and to collect additional primary deposits as
may be appropriate to reflect the added exposure to the Program. The additional
primary deposit musrbe paid within ninety days of notice.
F. Other Protection
If collectible insurance or any other coverage or protection with any insurer, self-
insured employer, joint powers authority or any other source, is available to the
Member covering a loss also protected hereunder (whether on a primary, excess
or contingent basis), the protection hereunder (including any Defense obligation)
shall be in excess of, and shall not contribute with, such insurance or other
coverage or protection, provided that this clause does not apply with respect to
any insurance purchased by a Member specifically to be in excess of this
Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such
insurance, coverage, or other protection.
G. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance
with the Joint Powers Agreement and Bylaws of the Authority.
H. Changes to Memorandum
Notice to any agent or knowledge possessed by any agent of the Authority or by
any other person shall not effect a waiver of or a change in any part of this
Memorandum, nor shall the terms of this Memorandum be waived or changed,
except by a written addendum issued by the Authority to form a part of this
Memorandum.
1. Subrogation and Recovery
The Authority shall be subrogated to the extent of any payment hereunder to all
the Member's rights of recovery thereof. This section applies to all recoveries
from third parties or governmental agencies, including recoveries for state
mandate reimbursements pursuant to SB 90 or other statute or regulation.
The Member shall do nothing after loss to prejudice such rights and shall do
everything necessary to secure such rights. The Authority shall have standing to
seek subrogation recovery in its own name or in the name of the Member, and
the Member shall cooperate with and assist the Authority in pursuing such
recovery, including assigning its right to recover subrogated amounts, and if
necessary executing a written agreement to effect such assignment. Any amount
so recovered shall be credited to the workers' compensation file.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page I I of 15 July I, 2009 — July I, 2010
Assignment
There is no assignment of interest permitted under this Memorandum.
K. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms
and provisions of the Agreement creating the Authority, and in the event of any
conflict between the terms and provisions of said Agreement and this
Memorandum, the terms and provisions of the Agreement shall control.
L. Appeal of Disputes
Should a dispute arise between the Member and the Program, the following
conditions will apply:
No party is entitled to appeal or arbitrate Claims under this Memorandum
other than the Member.
2. Any disputes concerning coverage, protection, Defense obligations, or
procedures of the Program, as interpreted by the Authority's staff, shall
be appealed to the Authority's Executive Committee in accordance with
the following procedures.
A Member may request any determination of a lack of coverage made by
the Authority to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of
notice from the Claims Administrator.
Upon request, the Chief Executive Officer shall review a determination of
a lack of coverage made by the Claims Administrator or Authority staff
and shall send to the Member a written determination of coverage.
5. If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees.
Appeals must be in writing within 90 days of the date of the Executive
Director's written decision. The appeal request must state why the
Member disagrees with the denial, and the Member should present any
information that may have a bearing on the ultimate determination of
coverage.
6. The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 12 of 15 July I, 2009 — July I, 2010
notify the Member in advance of the meeting at which its appeal will be
presented.
If the Member would like to personally address the Appeals Committee,
the Member or the Member's representative may attend the meeting and
speak to the issue.
8. The Appeals Committee may refer the appeal to the Coverage Committee
and consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's
decision in writing.
9. Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
occurrence is presented. to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in section,
upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
10. If a Member disputes a coverage issue, then, during the course of the
administrative and arbitration proceedings provided herein, the Authority
shall defend the Claim against the Member and have the right to control
any settlement of that Claim, subject to the right of the Authority to
recover from the Member any amounts paid out by the Authority for
such defense or settlement which are finally determined by the Appeals
Committee, or as a result of the Binding Arbitration Process, not to be
owed by the Authority under the Program.
M. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5_L.
Appeal of Disputes and disagrees with the final determination of the Appeals
Committee, the Member may request consideration of the coverage issue through
the Authority's binding arbitration process.
The Arbitration process shall be as follows:
1. Following a decision by the Appeals Committee, the appealing Member
shall notify the Chief Executive Officer in writing, within thirty days of
the Appeals Committee's final decision, that it wishes to participate in
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 13 of 15 July 1, 2009 — July I. 2010
Binding Arbitration and shall submit a non-refundable $1,000 arbitration
appeal fee. The written notice shall specify the grounds for the arbitration.
Following payment of the arbitration appeals fee, the name of each
Member, other than the appealing Member and the Members
represented on the Appeals Committee, shall be placed in an unmarked
envelope. Each envelope shall be placed in a box and eleven envelopes
shall be drawn by the Chief Executive Officer. A representative of the
appealing Member may be present at the drawing.
3. The managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their managers shall
be given in writing to the appealing Member.
4. The appealing Member shall have the right to strike two or less names
from the pool for any reason which shall not be disclosed. The Authority
shall have the right to strike two or less names from the pool for any
reason which shall not be disclosed. The appealing Member and the
Authority must strike names within five business days of the drawing.
The right of either party to strike names shall lapse at 5:00 PM on the fifth
business day following the drawing. Notice of names stricken by either
party shall be given in writing to the other party prior to 5:00 PM on the
fifth day following the drawing.
5. The remaining managers shall be contacted by the Chief Executive Officer
to determine their willingness to serve on the arbitration panel. If more
than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be
the arbitration panel and they shall be disclosed in writing to the appealing
Member.
If only five are willing to serve, they shall be the arbitration panel.
If fewer than five are willing to serve, the name of each Member not
drawn in the previous selection drawing shall be placed in an unmarked
envelope, put in a box, and four envelopes shall be drawn for each
arbitration panel position needed to complete a five -Member panel. A
representative of the appealing Member may be present at the drawing.
The names drawn shall be disclosed to the appealing Member who may
reject, for any reason which shall not be disclosed, one name for each four
names drawn. The Authority may also reject one name for each four
names drawn and shall not disclose the reason. Names rejected by the
appealing Member and the Authority must be rejected within 48 hours of
the drawing. The right to reject names shall lapse 48 hours following the
drawing.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 14 of 15 July I, 2009- July I, 2010
8. The managers or chief executive officers of the Members remaining shall
be contacted by the Chief Executive Officer to determine their willingness
to serve on the arbitration panel. The names of those willing to serve shall
be placed in unmarked envelopes, put in a box, and the number necessary
to fill out the arbitration panel shall be drawn by the Chief Executive
Officer and disclosed in writing to the appealing Member. A
representative of the appealing Member may be present at the drawing.
9. This process shall be repeated until five Members are obtained for the
arbitration panel.
10. The arbitration panel Members shall be compensated at the rate of $125
per half-day or portion thereof. if a panel Member is required to stay
away from home overnight, lodging shall be paid by the Authority.
Necessary meals shall be provided for all panel Members. Mileage costs
shall be reimbursed by the Authority at its standard rate.
11. The cost of the arbitration panel shall be borne by the Authority. The
cost of presentation by the appealing Member, including preparation,
exhibits, attorneys, and all other costs of the Member shall be paid by the
Member.
12. The arbitration panel may request legal counsel that shall be selected by
the Chief Executive Officer and paid for by the Authority. Legal counsel
shall not be the counsel for the Authority that has advised the staff and
Executive Committee. However, counsel for the Authority may
participate in or make the presentation to the arbitration panel on behalf of
the Authority, as requested by the Chief Executive Officer.
13. The parties to the arbitration shall not be governed by formal rules of
evidence.
14. The arbitration panel's decision shall be final and binding on the Member
and the Authority. Decisions of the arbitration panel shall be by majority
vote.
15. The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future
arbitration panels for precedent.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 15 of 15 July 1, 2009 - July 1. 20 10
V
1
OCT 16 2008.
BY
CALIFORNIA
J P • I • A
October 14, 2008
Oliver Chi, City Manager
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91 770-1 787
Dear Mr. Chi:
In August the California JPIA mailed your agency's Certificate of Liability Protection for the
2008-2009 coverage period to your agency's risk manager. If applicable, a Certificate of
Workers' Compensation Protection was also mailed. Duplicate copies of these documents may
be printed by visiting the Coverage Summary section of our website.
This mailing includes the Memorandum of Liability Coverage effective July 1, 2008, for you to
share with your agency's legal counsel. It is important to note that while the Memorandum of
Liability Coverage is a description of the self-insurance program, the excess liability insurance
layers may contain differences in insuring agreements, definitions, exclusions, and conditions.
These documents are available upon request.
Please note the following substantive changes:
1. The protection limits reflect primary coverage from $0 to $10 million (which includes the
pool's self-insured retention and a layer of reinsurance), and excess coverage from $10 -
$50 million.
2. Language was inserted into the Occurrences definition found on page 9 to indicate how
harassment -type claims involving multiple events would be handled.
3. Language was added throughout the document to clarify the Authority's intent to provide
each member the full limit of coverage for each occurrence when multiple members are
involved in one occurrence.
4. An end date was added to the document (it previously stated, "...until superseded or
terminated.").
5. Language was added to Exclusion V to further protect the pool from claims or suits that
may result from parties claiming the Member misrepresented the financial condition of
the Member pre -bankruptcy.
Also included in this mailing, if applicable, is a Memorandum of Workers' Compensation
Coverage. This is the first time the Authority has drafted a coverage document for the Workers'
Compensation Program. While patterned after the Memorandum of Liability Coverage, less
flexibility is available because most workers' compensation issues are governed by state law.
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
8081 MOODY STREET, LA PALMA, CA 90623 TEL(562)467-8700 FAX(562)860-4992
Memoranda of Coverage
October 14, 2008
Earlier in the month your agency's risk manager also received an email with a website link to the
program summaries. These programs include: General Liability, Workers' Compensation,
Property, Pollution and Remediation Legal Liability, Crime Coverage, and Special Events.
If you have questions, please contact Norm Lefmann, Assistant Executive Officer, or me at (562)
467-8700. You may also email us atjshull@cjpia.orgornlefinann@cjpia.org.
Sincerely,
Jonathan R. Shull
Chief Executive Officer
Distribution with Enclosures:
California JPIA Director
City Manager
Risk Manager
0 0
Memorandum of Workers' Compensation and
Employer's Liability Coverage
Issued to the City of Rosemead
Effective July I, 2008 — July 1, 2009
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July], 2008 —July 1, 2009, as ajoint protection program authorized pursuant to
Article 11(a) of the California JPIA joint powers agreement 11
Providing Innovative Risk Manage tent Solutions For Our Public Agency Partners
CALIFORNIA
r i n
9
COVER PAGE
MEMORANDUM OF WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER:
MAILING ADDRESS:
PROTECTION LIMITS:
Workers' Compensation:
California JPIA Pool:
Excess Insurance:
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91770-1787
Statutory
$2,000,000 per occurrence
Statutory, excess of Pool Retention
Employer's Liability: $10,000,000 per occurrence
California JPIA Pool: $2,000,000 per occurrence
Excess Insurance: $2,000,000 per occurrence, excess of California JPIA Pool
Retention
California JPIA Pool: $6,000,000 per occurrence, excess of California JPIA Pool and
underlying Excess Insurance
PROTECTION PERIOD: From July 1, 2008 at 12:01 a.m. Pacific Time until July 1,
2009 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South EI Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
California JPIA
BY
President
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3.
4.
5.
TABLE OF CONTENTS
INTRODUCTION
COVERAGE
A. Workers' Compensation
B. Employer's Liability
C. Other Coverages
DEFINITIONS
EXCLUSIONS
CONDITIONS AND RESPONSIBILITIES
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MEMORANDUM OF WORKERS' COMPENSATION
AND EMPLOYER'S LIABILITY
COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of workers' compensation and employer's liability are
administered by the Authority and shared by its Members pursuant to the Joint Powers
Agreement creating the Authority under the provisions of §6500 et seq. of the
Government Code.
As provided in §990.8 of the Government Code, pooling of losses in this Program is not
insurance. The sole duty of the Authority is to administer the Program adopted by the
Members. The Authority will pay on behalf of members the liability only for Claims or
losses which are pooled under the terms of this Memorandum and the Joint Powers
Agreement.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors at a regular meeting or at a special
meeting called for that purpose.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Member or
the Authority. Any controversy or dispute arising out of or related to an interpretation or
breach of this Memorandum shall be settled in accordance with the appeals procedures
as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. Definitions.
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2. COVERAGE
In consideration for Member's payment of the required primary deposit for participation
in this Program, and subject to all terms and conditions set forth in this Memorandum,
the Program agrees to provide the following protection:
A. Workers' Compensation
The Program will pay on behalf of the Member workers' compensation benefits
for bodily injury by accident or occupational disease, including resulting death,
deemed compensable under the laws of the State of California, and sustained by
an Employee.
The Program will provide for the administration and defense of Claims for
workers' compensation benefits, including investigation, payment of benefits,
compliance with reporting requirements for Claims administration, and
settlement. The Program, at its discretion, will choose and manage service
providers necessary to fulfill its objectives; including third party Claims
administrators, medical management providers, defense attorneys, investigators,
etc.
Coverage is subject to the following conditions:
Bodily injury by accident must arise out of and in the course of
employment by the Member and must occur during the Protection
Period.
2. Occupational disease must be caused by or aggravated by the conditions
of employment, and the exposure must occur during the Protection
Period.
Bodily injury or occupational disease from presumptive causations
contained in Labor Code §3212 et seq. or other California governmental
codes must occur during the Protection Period.
4. Coverage is limited to amounts the Member is legally liable to pay after
apportionment to pre-existing, concurrent or subsequent injuries or
illnesses as defined by law.
5. The Program will pay temporary disability, permanent disability and
death benefits at the statutory rates defined in the California Labor Code
(Labor Code Division 4, Part 2, Chapter 2, Articles 3, 4, 4.5 and 5). If the
Member pays the Employee for periods of temporary disability per a
salary continuation plan under a collective bargaining agreement,
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memorandum of understanding or other employment agreement, the
Program will reimburse the Member at the statutory temporary disability
benefit rate for those periods paid by the Member.
6. If the Employee is eligible to receive salary continuation in lieu of
temporary disability under Labor Code §4850 et seq., the Program will
reimburse the Member at the statutory rate for temporary disability
benefits that the Member would be obligated to pay if Labor Code §4850
et seq. did not apply.
Employees on temporary assignment or traveling for Member business
outside the State of California who sustain an injury or occupational
disease are covered for benefits under this Program. Benefits will be paid
on behalf of the Member up to the amount payable under the workers'
compensation laws of the State of California, regardless of the jurisdiction
selected by the Employee.
B. Employer's Liability
The Program will indemnify the Member, where permitted by law, for Loss
arising from bodily injury or occupational disease, including resulting death.
Coverage is subject to the following conditions:
(a). Bodily injury by accident must arise out of and in the course of
employment by the Member. Occupational disease must be caused
by or aggravated by the conditions of employment. The accident
or period of exposure must occur during the Protection Period.
Bodily injury does not include emotional distress, anxiety,
discomfort, inconvenience, depression, dissatisfaction or shock to
the nervous system, unless caused by either a manifest physical
injury or a disease with physical dysfunction or condition resulting
in treatment by a licensed physician or surgeon.
(b). Bodily injury or occupational disease suffered by Employee is not
covered by workers' compensation law.
(c). The Employee's duties are necessary or incidental to work
conducted by the Member.
(d). The Member timely and fully pursues all available remedies for
contribution or indemnification from any and all other available
sources.
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(e). The original Claim or Suit and related legal actions for damages
are brought in the State of California or under the laws of the State
of California.
2. Subject to the foregoing provision of B. Employer's Liability, the
Program shall:
(a). Indemnify the Member for all sums legally payable as damages
under this section. Damages include:
i. Amounts for which the Member is liable to a third party by
reason of a Claim, Suit or proceeding against the Member
to recover damages suffered by the third party; or
ii. Damages for care and loss of services of an injured
employee of the Member; or
iii. Damages for consequential bodily injury to a spouse, child,
parent, or sibling of the Employee, provided that such
damages are the direct consequence of injury or disease
arising out of and in the course of the Employee's
employment by Member.
iv. Injury or disease to an Employee arising out of and in the
course of employment, claimed against the Member in a
capacity other than as Employer.
(b). Defend, at the Program's expense, any Claim, proceeding or Suit
against the Member for damages payable under this section. The
Program has the right to investigate and settle these Claims,
proceedings and Suits. The Program has no duty to defend any
Claim, proceeding or Suit that is not covered by this Program.
The Program has no duty to defend or continue defending after
the Program has paid its maximum amount of coverage.
(c). Pay the following costs, in addition to the other amounts payable
under this section, as part of any Claim, proceeding or Suit the
Program defends:
ii.
Reasonable expenses incurred at the Program's expense,
but not loss of earnings;
Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to twice the maximum amount
of coverage under this Program;
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iii. Litigation costs taxed against the Member;
iv. Interest on ajudgment as required by law; and
V. Other expenses incurred by the Program in discharging the
obligation of the Program or its members under this
section.
The following are excluded from coverage under this section:
(a). Damages arising out of the actual or alleged discharge of coercion;
criticism; demotion; evaluation; reassignment; discipline;
defamation; harassment; humiliation; discrimination against;
termination of; wrongful dismissal or discharge; breach of any oral
or written employment contract or quasi -employment contract;
misrepresentation; violation of employment discrimination laws;
workplace sexual or other harassment; wrongful failure to employ
or promote; wrongful discipline; negligent evaluation; wrongful
demotion; wrongful deprivation of a career opportunity;
employment-related invasion of privacy, defamation or wrongful
infliction of emotional distress; or any other personnel practices,
policies, acts or omissions, of any Employee, including Claims
brought under Americans with Disabilities Act, Family Medical
Leave Act, Pregnancy Disability Leave Act, Equal Opportunities
Act, Fair Employment and Housing Act, or any other such State or
Federal act;
(b). Any obligation of any type that is imposed by a workers'
compensation, occupational disease, unemployment compensation,
occupational health and safety law, or disability benefits law, or
any similar law;
(c). Damages for any injury or disease for any Employee engaged in
work subject to the Longshore and Harbor Workers' Compensation
Act, the Outer Continental Shelf Lands Act, the Defense Base Act,
the Jones Act, the Federal Employers Liability Act, or any other
Federal workers' compensation or occupational disease law, or any
international workers' compensation law;
(d). Punitive or exemplary damages, however characterized, or
damages, fines or penalties imposed under the Migrant and
Seasonal Agricultural Worker Protection Act, or for violation of
any other Federal, state, county or other law, regulation or
ordinance;
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C. Other Coverages
Defense of Serious & Willful Misconduct Allegation (Labor Code §4553)
or Alleged Discrimination Prohibited by Labor Code § 132a.
The Authority may, at its own discretion, elect to defend a Member
against Claims alleging Serious & Willful Misconduct or a violation of
§132a. Such defense will be provided by an attorney assigned by the
Authority. Any penalties awarded for Serious & Willful Misconduct or
violation of § 132a will be the responsibility of the Member. The
Member may elect to defend itself with counsel of its own choosing, at its
own expense.
DEFINITIONS
A. Authority means the California Joint Powers Insurance Authority.
B. Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
C. Claim means a notice, demand, or Suit against a Member to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing or any other administrative or regulatory agency.
D. Damages means compensation in money recovered by a party for loss or
detriment it has suffered. Damages does not include defense of Claims or any
punitive, exemplary or multiplied damages or non -monetary relief or redress or
injunctive relief.
E. Defense Costs means all fees and expenses incurred in connection with the
administration, investigation, defense, and appeal of a Claim covered hereunder,
including attorney fees, court costs, premiums for appeal bonds, and interest on
judgments accruing after the entry of judgment, and also shall include the costs of
any Claims administrator or defense counsel assigned by the Authority to
respond to any Claim on behalf of the Authority. Defense Costs shall not
include the office expenses of the Member, nor the salaries of employees or
officials of the Member, nor expenses of any Claims administrator engaged by
the Member. Defense Costs also do not include any fee or expense relating to
coverage issues between the Authority and any Member.
F. Discrimination means injury caused by or arising out of:
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Unlawful discrimination because of race, sex, color, age, religion, or
national origin, or membership in any similarly legally protected class; or
Violation of the discrimination prohibitions of the Americans with
Disabilities Act of 1990, any rules or regulations promulgated thereunder
and amendments thereto or similar provisions of any Federal, state, or
local statutory law or common law.
G. Employee includes any person falling within the definition of "employee" under
Labor Code Division 4, Chapter 2, Article 2. Volunteers are considered
employees under this Memorandum only if the Member has a resolution in
effect, and passed prior to the date of injury or illness at issue, providing workers'
compensation coverage to volunteers under Labor Code §3363.5, and while
performing specific functions in the course and scope of authorized activities
under the direction and control of the Member.
H. Loss means amounts actually paid by the Program for statutory workers'
compensation benefits, employer's liability Claims and allocated costs for
investigation, administration and defense of Claims under this Memorandum of
Coverage.
Member means the entity, including all of its departments and constituent
agencies, which has adopted a resolution to participate in the Program and
become a signatory to the Joint Powers Agreement creating the Authority as may
be amended from time to time, whose name appears on the Cover Page of this
Memorandum. Member includes any other agency for which the Member's
governing board or council acts as the governing board, and also includes any
commissions, agencies, districts, authorities, redevelopment agencies, boards, or
similar entities coming under the Member's direction and control. Member shall
include any other agency authorized by the Authority's Board of Directors. The
Member must be approved for self-insurance by the Office of Self Insurance
Plans and maintain its qualification for self-insurance during the Protection
Period.
Memorandum means this Memorandum of Workers' Compensation and
Employer's' Liability Coverage authorized by the Joint Powers Agreement of the
Authority specifying the terms and conditions of the Program.
K. Occurrence means a single accident or event causing bodily injury to one or
more employees; or occupational disease sustained by one or more employees as
a result of an outbreak of the same communicable disease, or sudden and
accidental exposure to the same environmental hazard.
L. Program means the California Joint Powers Insurance Authority's Workers'
Compensation and Employer's Liability Program described by this
Memorandum and the Agreement of the Members creating the Authority. The
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Program is a fund created by the Members for the purpose of pooling self-
insured losses.
M. Protection Period means the time period shown on the Cover Page of this
Memorandum.
N. Suit means a civil proceeding in which a Member is named as a defendant or
cross-defendant, or an arbitration proceeding or alternative -dispute resolution
proceeding to which a Member submits with the Authority's written consent.
4. EXCLUSIONS
This Memorandum, including any obligation to indemnify, defend or pay Defense
Costs, does not apply to:
A. The Member's obligation to pay salary in lieu of temporary disability benefits
under Labor Code §4850, except to the extent that the Member would be
obligated to pay temporary disability benefits in the absence of the mandate of
§4850.
B. The Member's obligations under Labor Code §4856 to provide health benefits.
C. Injury or disease to an Employee while knowingly employed in violation of law;
D. Injury or disease intentionally caused or aggravated by or at the direction of the
Member;
E. Penalties or fines imposed for violation of Labor Code 132a or Labor Code §4553
(Serious & Willful Misconduct);
F. Penalties or self-imposed benefit increases for violations of Labor Code §5814 et
seq. attributable to the Member's actions;
G. Damages arising out of, or in any way related to, operations with respect to which
the Member:
has violated or failed to comply with any workers' compensation law, or
any provision thereof, or
has rejected any workers' compensation law.
H. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages
or fines or other damages imposed primarily for the sake of example and by way
of punishing the Member, including liability of a Member to defend or pay
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damages where the governing body thereof has elected to provide a defense or
pay damages for a Claim, action or judgment for punitive or exemplary damages.
I. Any liability for which the Member is obligated to pay damages by reason of
liability assumed in a contract or agreement. .
5. CONDITIONS AND RESPONSIBILITIES
A. . General Obligations
The Member agrees to abide by all employment, equal opportunity, anti-
discrimination, health and safety laws, statutes and regulations. It understands
that, among other obligations, it has a non -delegable duty to provide employees
with a safe place to work, and training in safe work.practices. The Member
agrees to abide by all applicable wage and hour laws, collective bargaining
agreements, memoranda of understanding, and other statutes and regulations
regarding working conditions.
The Member agrees to immediately report every occupational injury or illness
which results in medical treatment beyond first aid, or any claim by an Employee
for workers' compensation benefits, to the Authority or the Authority's designed
administrator, but in no instance to report such injury, illness or claim more than
five days after date of knowledge or as otherwise required by Labor Code
§6409.1. The Member agrees to give every employee a claim form pursuant to
Labor Code 5401 within one working day of receiving notice or knowledge of a
claim or potential claim. In the event of an injury or illness, the Member agrees
to provide first aid or arrange for appropriate immediate medical care. The
Member agrees to provide suitable temporary modified or alternate duty
whenever possible for employees with workers' compensation injuries, and agrees
to conduct interactive accommodation meetings as required by A132222.
B. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Member's
records, property and operations at any time. Neither the Authority's right to
make inspections, nor the making thereof, nor any report hereon 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 or healthful, or are
in compliance with any law, rule or regulations. The Authority may examine and
audit the Member's books and records at any time during the Protection Period
and extensions thereof, and within three years after the final termination of this
Program, as far as they relate to the subject matter of this Memorandum.
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C. Member's Duties in the Event of Occurrence, Claim or Suit
In the event of any Occurrence, written notice containing particulars
sufficient to identify the Member and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and
the names and addresses of the injured and of available witnesses, shall be
given by or for the Member to the Authority's claims administrator as
soon as practicable, but no later than required by statute or regulation.
If a Claim is made against a Member, the Member shall immediately
forward to the Authority's claims Administrator every demand, notice,
summons or other process received by the Member or the Member's
representative.
The Authority's claims Administrator will review the Claim, and under
the direction of the Authority, undertake the administration of the Claim,
including investigation, defense and settlement, as appropriate.
4. The Member shall cooperate with the Authority and, upon the
Authority's request, assist as appropriate in the resolution of the Claim,
including enforcing any right of contribution or indemnity against any
person or organization who may be liable to the Member because of
injury or damage to an Employee or Member property. The Member
shall not voluntarily make any payment, assume any obligation or incur
any expense.
D. Privacy and Confidentiality of Claim Records
All Claim records, including Claim files, examiners notes, medical reports,
subpoenaed records, correspondence, tapes and films, and whether electronic or
hard files, are the property of the Authority. Because these records may contain
confidential or private medical and/or psychological information related to
workers' compensation Claims administered by or on behalf of the Authority,
access to Claim files and the information contained therein is restricted to the
Authority and its agents and assigns, with the exception that the Member is
entitled to medical information limited to the diagnosis of the mental or physical
condition for which workers' compensation is being claimed and the treatment
provided for this condition, or what is necessary for the Member to have in order
to provide temporary or permanent modification or accommodation of the
employee's work duties.
E. Change in conditions
If a Member experiences a significant change in operations or conditions, the
Member shall notify the Authority as soon as practicable, and the Authority has
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the right to an underwriting review and to collect additional primary deposits as
may be appropriate to reflect the added exposure to the Program. The additional
primary deposit must be paid within ninety days of notice.
Other Protection
If collectible insurance or any other coverage or protection with any insurer, self-
insured employer, joint powers authority or any other source, is available to the
Member covering a loss also protected hereunder (whether on a primary, excess
or contingent basis), the protection hereunder (including any Defense obligation)
shall be in excess of, and shall not contribute with, such insurance or other
coverage or protection, provided that this clause does not apply with respect to
any insurance purchased by a Member specifically to be in excess of this
Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such
insurance, coverage, or other protection.
G. Termination or Amendment
This Memorandum may be terminated or amended at any time in accordance
with the Joint Powers Agreement and Bylaws of the Authority.
H. Changes to Memorandum
Notice to any agent or knowledge possessed by any agent of the Authority or by
any other person shall not effect a waiver of or a change in any part of this
Memorandum, nor shall the terms of this Memorandum be waived or changed,
except by a written addendum issued by the Authority to form a part of this
Memorandum.
1. Subrogation and Recovery
The Authority shall be subrogated to the extent of any payment hereunder to all
the Member's rights of recovery thereof. This section applies to all recoveries
from third parties or governmental agencies, including recoveries for state
mandate reimbursements pursuant to SB 90 or other statute or regulation.
The Member shall do nothing after loss to prejudice such rights and shall do
everything necessary to secure such rights. The Authority shall have standing to
seek subrogation recovery in its own name or in the name of the Member, and
the Member shall cooperate with and assist the Authority in pursuing such
recovery, including assigning its right to recover subrogated amounts, and if
necessary executing a written agreement to effect such assignment. Any amount
so recovered shall be credited to the workers' compensation file.
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Assignment
There is no assignment of interest permitted under this Memorandum.
K. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms
and provisions of the Agreement creating the Authority, and in the event of any
conflict between the terns and provisions of said Agreement and this
Memorandum, the terns and provisions of the Agreement shall control.
L. Appeal of Disputes
Should a dispute arise between the Member and the Program, the following
conditions will apply:
No party is entitled to appeal or arbitrate Claims under this Memorandum
other than the Member.
2. Any disputes concerning coverage, protection, Defense obligations, or
procedures of the Program, as interpreted by the Authority's staff, shall
be appealed to the Authority's Executive Committee in accordance with
the following procedures.
A Member may request any determination of a lack of coverage made by
the Authority to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of
notice from the Claims Administrator.
4. Upon request, the Chief Executive Officer shall review a determination of
a lack of coverage made by the Claims Administrator or Authority staff
and shall send to the Member a written determination of coverage.
5. If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees.
Appeals must be in writing within 90 days of the date of the Executive
Director's written decision. The appeal request must state why the
Member disagrees with the denial, and the Member should present any
information that may have a bearing on the ultimate determination of
coverage.
6. The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall
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notify the Member in advance of the meeting at which its appeal will be
presented.
If the Member would like to personally address the Appeals Committee,
the Member or the Member's representative may attend the meeting and
speak to the issue.
8. The Appeals Committee may refer the appeal to the Coverage Committee
and consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's
decision in writing.
9. Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in section,
upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
10. If a Member disputes a coverage issue, then, during the course of the
administrative and arbitration proceedings provided herein, the Authority
shall defend the Claim against the Member and have the right to control
any settlement of that Claim, subject to the right of the Authority to
recover from the Member any amounts paid out by the Authority for
such defense or settlement which are finally determined by the Appeals
Committee, or as a result of the Binding Arbitration Process, not to be
owed by the Authority under the Program.
M. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in 5L.
Appeal of Disputes and disagrees with the final determination of the Appeals
Committee, the Member may request consideration of the coverage issue through
the Authority's binding arbitration process.
The Arbitration process shall be as follows:
Following a decision by the Appeals Committee, the appealing Member
shall notify the Chief Executive Officer in writing, within thirty days of
the Appeals Committee's final decision, that it wishes to participate in
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Binding Arbitration and shall submit a non-refundable $1,000 arbitration
appeal fee. The written notice shall specify the grounds for the arbitration.
Following payment of the arbitration appeals fee, the name of each
Member, other than the appealing Member and the Members
represented on the Appeals Committee, shall be placed in an unmarked
envelope. Each envelope shall be placed in a box and eleven envelopes
shall be drawn by the Chief Executive Officer. A representative of the
appealing Member may be present at the drawing.
The managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their managers shall
be given in writing to the appealing Member.
4. The appealing Member shall have the right to strike two or less names
from the pool for any reason which shall not be disclosed. The Authority
shall have the right to strike two or less names from the pool,for any
reason which shall not be disclosed. The appealing Member and the
Authority must strike names within five business days of the drawing.
The right of either party to strike names shall lapse at 5:00 PM on the fifth
business day following the drawing. Notice of names stricken by either
party shall be given in writing to the other party prior to 5:00 PM on the
fifth day following the drawing.
5. The remaining managers shall be contacted by the Chief Executive Officer
to determine their willingness to serve on the arbitration panel. If more
than five are willing to serve, each name shall be placed in an unmarked ,
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be
the arbitration panel and they shall be disclosed in writing to the appealing
Member.
6. If only five are willing to serve, they shall be the arbitration panel.
If fewer than five are willing to serve, the name of each Member not
drawn in the previous selection drawing shall be placed in an unmarked
envelope, put in a box, and four envelopes shall be drawn for each
arbitration panel position needed to complete a five -Member panel. A
representative of the appealing Member may be present at the drawing.
The names drawn shall be disclosed to the appealing Member who may
reject, for any reason which shall not be disclosed, one name for each four
names drawn. The Authority may also reject one name for each four
names drawn and shall not disclose the reason. Names rejected by the
appealing Member and the Authority must be rejected within 48 hours of
the drawing. The right to reject names shall lapse 48 hours following the
drawing.
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The managers or chief executive officers of the Members remaining shall
be contacted by the Chief Executive Officer to determine their willingness
to serve on the arbitration panel. The names of those willing to serve shall
be placed in unmarked envelopes, put in a box,.and the number necessary
to fill out the arbitration panel shall be drawn by the Chief Executive
Officer and disclosed in writing to the appealing Member. A
representative of the appealing Member may be present at the drawing.
9. This process shall be repeated until five Members are obtained for the
arbitration panel.
10. The arbitration panel Members shall be compensated at the rate of $125
per half-day or portion thereof. If a panel Member is required to stay
away from home overnight, lodging shall be paid by the Authority.
Necessary meals shall be provided for all panel Members. Mileage costs
shall be reimbursed by the Authority at its standard rate.
11. The cost of the arbitration panel shall be bome by the Authority. The
cost of presentation by the appealing Member, including preparation,
exhibits, attorneys, and all other costs of the Member shall be paid by the
Member.
12. The arbitration panel may request legal counsel that shall be selected by
the Chief Executive Officer and paid for by the Authority. Legal counsel
shall not be the counsel for the Authority that has advised the staff and
Executive Committee. However, counsel for the Authority may
participate in or make the presentation to the arbitration panel on behalf of
the Authority, as requested by the Chief Executive Officer.
13. The parties to the arbitration shall not be governed by formal rules of
evidence.
14. The arbitration panel's decision shall be final and binding on the Member
and the Authority. Decisions of the arbitration panel shall be by majority
vote.
15. The decision of the arbitration panel shall be written and shall govern the
issue decided but may be referred to by the Authority and future
arbitration panels for precedent.
Memorandum of Workers' Compensation
and Employer's Liability Coverage Page 15 of 15
July 1, 2008 — July 1, 2009
Memorandum of Liability Coverage
Issued to the City of Rosemead
Effective July I, 2008 — July 1, 2009
Administered by the California Joint Powers Insurance Authority
INTEGRITY
EXCELLENCE
INNOVATION
TEAMWORK
Effective July I, 2008 —July I, 2009, as ajoint protection program authorized pursuant to
Article 1 I (a) of the California JPIA joint powers agreement
Pr viding Innovative Risk Management Solutions For Our Public Agency Partners
CALIFORNIA
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COVER PAGE
MEMORANDUM OF LIABILITY COVERAGE
FOR THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
MEMBER: City of Rosemead
MAILING ADDRESS: 8838 East Valley Boulevard
Rosemead, CA 91770-1787
PROTECTION LIMITS: Primary layer: $10,000,000
PROTECTION PERIOD: From July 1, 2008 at 12:01 a.m. Pacific Time until July 1,
2009 at 12:01 a.m. Pacific Time.
This Memorandum is a description of the terms and conditions of the Program through which
certain specified and limited self-insured risks of liability are administered by the Authority and
shared by its Members. This Memorandum is not an insurance policy. As provided in Section
990.8 of the California Government Code and appellate court cases of Orange County Water
District v. Association of California Water Agencies JPIA (1997) and City of South El Monte v.
Southern California Joint Powers Insurance Authority (1995), the pooling of self-insured claims
or losses among the Members of the Authority shall not be considered insurance nor be subject
to regulation under the Insurance Code.
CALIFORNIA JPIA
President
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TABLE OF CONTENTS
INTRODUCTION
PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
B. Defense and Settlement
C. Protection Limit
D. Statutory Limitations
E. Territorial Limitation
DEFINITIONS
CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
B. Severability of Interest
C. Protected Party's Duties in the Event of Occurrence, Clain: or Suit
D. Other Protection
E. Termination orAmendment
R Changes
G. Subroeation
H. Assignment
L Joint Powers Agreement
J. Appeal of Disputes
K. Arbitration
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MEMORANDUM OF LIABILITY COVERAGE
for the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
INTRODUCTION
This Memorandum is a description of the terms and conditions of the Program through
which certain self-insured risks of liability are administered by the Authority and shared
by its Members pursuant to the Joint Powers Agreement creating the Authority under
the provisions of Section 6500 et seq. of the Government Code.
As provided in Section 990.8 of the Government Code, pooling of losses in this Program
is not insurance. The sole duty of the Authority is to administer the Program adopted
by the Members. The Authority can indemnify only Claims or losses, which are pooled
under the terms of this Memorandum and the Joint Powers Agreement. There is no
transfer of risk from the Member or any Protected Party to the Authority nor
assumption of risk by the Authority.
The provisions of the Program are subject to and subordinated to the Joint Powers
Agreement or any action taken by the Executive Committee or the Board of Directors in
connection with the Program. This Program has been adopted pursuant to action taken
by the Executive Committee, and is subject to any amendment, modification or extension
by the Executive Committee or the Board of Directors.
The terms of this Memorandum shall be construed in an evenhanded fashion in
accordance with the principles of California contract law. If the language of this
Memorandum is alleged to be ambiguous or unclear, the issue of how the protection
should apply shall be resolved in a manner most consistent with the relevant terms of this
Memorandum without regard to authorship of the language and without any
presumption of arbitrary interpretation or construction in favor of either the Protected
Party or the Authority. Any controversy or dispute arising out of or related to an
interpretation or breach of this Memorandum shall be settled in accordance with the
appeals procedures as set forth in this Memorandum.
Throughout this Memorandum, words and phrases that appear in bold print are defined
in 3. DEFINITIONS.
2. PROTECTION PROVIDED
A. Payments on Behalf of Protected Parties
Subject to all provisions of this Memorandum, the Authority will cause the Program to
pay on behalf of the Protected Party all sums that the Protected Party shall become
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legally obligated to pay as Damages by reason of Tort Liability imposed by law, or the
Tort Liability of others assumed in a Protected Contract, because of:
(i) Bodily Injury or Property Damage;
(ii) Personal Injury;
(iii) Public Officials Errors and Omissions;
(iv) Broadcast/Publication Injury;
(v) Employment Practices Injury;
(vi) Employee Benefit Administration Liability; or
(vii) Termination of City Manager's Employment Liability
caused by an Occurrence to which this Memorandum applies
B. Defense and Settlement
The Authority, at the shared expense of its Members, and out of funds of the Program
deposited or obligated to be deposited by its Members, shall investigate, negotiate, settle,
or Defend, at the Authority's sole discretion, any Claim or Suit which has been
tendered to the Authority and which in the sole opinion of the Authority is encompassed
by this Program. Defense Costs incurred by the Protected Party prior to the tender of
the Claim or Suit, as required by 5. CONDITIONS AND RESPONSIBILITIES, to the
Authority are the sole obligation of the Protected Party. The date of the tender of the
Claim or Suit shall be the date written notice of said Claim or Suit is received at the
Authority's offices (or its designated Claims Administrator).
The obligation of the Authority as described above shall cease to apply after the
Protection Limit has been exhausted by any combination of payments hereunder for
judgments, settlements, or Defense Costs, or if the Authority tenders the Protection
Limit on behalf of any Protected Party. For purposes of excess insurance or
reinsurance, any Defense Costs incurred prior to the tender of the Protection Limit shall
be deducted from the Protection Limit that is tendered.
With respect to any Claim or Suit or part thereof which has been tendered to the
Authority and over which the Authority assumes full or partial responsibility or charge
of the settlement or Defense, the Authority shall, if applicable, cause the Program to
pay:
(i) All expenses incurred by the Authority on behalf of a Protected Party;
(ii) Costs taxed against a Protected Party in the Suit; and
(iii) Other reasonable expenses incurred by a Protected Party at the Authority's
request to assist the Authority in the investigation or Defense of the Claim or
Suit; but this shall not include the office expenses of the Protected Party, the
salaries of Employees or officials of the Protected Party, nor expenses of
any claims administrator engaged by the Protected Party.
With respect to a Claim or Suit for which the Authority has determined that only a
portion is encompassed by this Program, the Authority shall cause the Program to fund
any Defense to the Claim or Suit against the Member and any settlement or final
Memorandum of Liability Coverage Page 2 of 24 July 1, 2008 - July 1, 2009
judgment of that Claim or Suit, subject to the reservation by the Authority of the right to
recover from the Member any amounts paid by the Authority for such settlement or
final judgment which are paid to claimants for Claims or Suits, or portions thereof, not
encompassed by the Program.
With respect to a Claim or Suit for which the Authority has determined that no portion
is encompassed by this Program, the Claim or Suit shall be referred, in its entirety, back
to the Protected Party.
The payment of Defense Costs will reduce the Protection Limit under this Program.
C. Protection Limit
The Protection Limit shown on the Cover Page and the rules below determine the most
the Program will pay, inclusive of Defense Costs, regardless of the number of:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) Persons or organizations that sustain injuries or Damages.
The Protection Limit stated on the Cover Page is the most the Program will pay per
Member for the sum of Damages, Defense Costs and expenses as included in B.
Defense and Settlement under any or all or any combination of Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Injury, or Termination of City Manager's Employment Liability
arising out of any one Occurrence.
For the purpose of determining the Protection Limit all Bodily Injury, Property
Damage, Personal Injury, Public Officials Errors and Omissions,
Broadcast/Publication Injury, Employment Practices Injury, Employee Benefit
Administration Liability, or Termination of City Manager's Employment Liability
arising out of exposure to substantially the same general condition(s) shall be considered
as arising out of one Occurrence.
Any actual or alleged loss of use of tangible property not physically injured or destroyed
shall be deemed to occur at the time of the Occurrence that caused such loss of use. Any
other injury or damage occurring or alleged to have occurred over more than one
Protection Period shall be deemed to have occurred during the Protection Period when
the Occurrence began.
D. Statutory Limitations
Notwithstanding sections 2.A. and 2.13. above, the defense and/or indemnity protections
afforded by this agreement to a past or present elected or appointed official or Employee
of a Member are not broader than the Member's own duty to defend and indemnify its
official or Employee under California Government Code sections 825, et seq. and 995, et
seq. All immunities, defenses, rights, and privileges of the Member under the
Government Code apply to the Program as well, including any defense that the official
or Employee acted outside the course and scope of employment or acted with fraud,
corruption or actual malice, or any defense that the action or proceeding or type of
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damage sought is not the type for which the Member is obligated to provide defense
and/or indemnity. The defense and/or indemnity protections are also subject to all the
terms, conditions, and Exclusions of this Memorandum and do not apply if not covered
by this Memorandum, even if an obligation to defend and/or indemnify would exist
under the Government Code.
E. Territorial Limitation
This Memorandum applies only to Claims made in the courts of the United States or of
any State.
3. DEFINITIONS
Administration under Employee Benefits Administration Liability means:
A. Giving counsel to employees with respect to the Employee Benefits Programs;
B. Interpreting the Employee Benefits Programs;
C. Handling of records in connection with the Employee Benefits Programs;
D. Effecting enrollment, termination, or cancellation of employees under the
Employee Benefits Programs, provided all such acts are authorized by the
Member.
Aircraft means any vehicle designed to transport people or property through the air.
Airport means any locality either on land or water which is adopted for the landing and
taking off of Aircraft, including all land, water, buildings, structures, equipment or other
improvements necessary or convenient in the establishment and operation of an Airport.
Authority means the California Joint Powers Insurance Authority.
Automobile means a land motor vehicle, trailer, or semi -trailer.
Bodily Injury means bodily injury, sickness, or disease sustained by any person,
including death resulting from any of these at any time.
Broadcast/Publication Injury means injury caused by or arising out of:
A. Any form of defamation or other tort related to disparagement or harm to the
character, reputation or feelings of any natural person or organization including but
not limited to libel, slander, product disparagement, trade libel, infliction of
emotional distress, outrage, or outrageous conduct;
B. Any form of invasion of, infringement of, or interference with rights of privacy or
publicity; including but not limited to false light, public disclosure of private facts,
intrusion, and commercial appropriation of name or likeness;
C. Infringement of copyright or trademark;
D. Plagiarism or piracy or misappropriation of ideas under implied contract;
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E. Unauthorized use of names, trade names, trademarks, service marks, titles, formats,
ideas, characters, character names, characterizations, performances, plots, musical
compositions, slogans, program material, or any other similar material; or
F. Denial of access to broadcast facilities based upon application of judgment or
standards relating to the acceptability of material for public broadcast; committed in
the course of the Protected Party's broadcast or publication activities.
Certification means a signed statement by a City Manager that he or she is entitled to
the Unemployment Protection Payment because he or she is unemployed or is
employed but at a specified lower salary than he or she was earning at the time of the
Occurrence and has not retired under a retirement program in which the City Manager
earned benefits as a public employee.
City Manager means the governing body -appointed chief administrative officer of a
Protected Party whether called City Manager, Chief Administrative Officer, General
Manager or other title designating the highest appointed official of the governmental
entity.
Claim means a notice, demand, or Suit against a Protected Party to recover Damages.
Claim does not include an administrative claim filed with the Equal Opportunity
Employment Commission or the California Department of Fair Employment and
Housing.
Dam means a structure described by California Water Code sections 6002 through 6004.
Damages means compensation in money recovered by a party for loss or detriment it has
suffered through the acts of a Protected Party. Damages does not include defense of
Claims or any punitive, exemplary or multiplied damages or non -monetary relief or
redress or injunctive relief.
Defense Costs means all fees and expenses incurred in connection with the adjustment,
investigation, defense, and appeal of a Claim covered hereunder, including attorney fees,
court costs, premiums for appeal bonds, and interest on judgments accruing after the
entry of judgment, and also shall include the costs of any claims administrator or defense
counsel assigned by the Authority to respond to any Claim on behalf of the Authority.
Defense Costs shall not include the office expenses of the Protected Party, nor the
salaries of employees or officials of the Protected Party, nor expenses of any claims
administrator engaged by the Protected Party. Defense Costs also do not include any
fee or expense relating to coverage issues between the Authority and any Protected
Party.
Discrimination means injury caused by or arising out of:
A. Unlawful discrimination because of race, sex, color, age, religion, or national origin,
or membership in any similar legally protected class; or
B. Violation of the discrimination prohibitions of the Americans with Disabilities Act
of 1990, any rules or regulations promulgated thereunder and amendments thereto
or similar provisions of any federal, state, or local statutory law or common law.
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Employee includes any person falling within the definition of "employee" under section
810.2 of the Government Code. That section provides: "Employee includes an
officer... employee, or servant, whether or not compensated, but does not include an
independent contractor." Employee also includes any volunteer designated by the
Member to perform specific functions in the course and scope of authorized activities
under the direction and control of the Member.
Employee Benefit Administration Liability means liability for injury or damage caused
by or arising out of any negligent act, error or omission of the Protected Party in the
Administration of the Member's Employee Benefits Programs.
Employee Benefits Program means group life insurance or self-insurance, group
medical, dental or vision -care insurance or self-insurance, pension plans, retirement
plans, deferred compensation plans, workers' compensation, unemployment insurance,
social benefits, disability benefits, and other similar employee benefits.
Employment Practices Injury means injury arising out of the following offenses:
A. Wrongful dismissal, discharge, or termination of employment;
B. Breach of any oral -or written employment contract or quasi -employment contract;
C. Employment-related coercion or misrepresentation;
D. Violation of employment discrimination laws;
E. Workplace sexual or other harassment;
Wrongful failure to employ or promote;
G. Wrongful discipline, negligent evaluation, or wrongful demotion;
H. Wrongful deprivation of a career opportunity; or
Employment-related:
(i) Invasion of privacy,
(ii) Defamation, or
(iii) Wrongful infliction of emotional distress.
Fungi means any type or form of fungus, including mold or mildew and any mycotoxins,
spores, scents, or byproducts produced or released by fungi.
Hostile Fire means a fire that becomes uncontrollable and breaks out from where it is
intended to be.
Medical Benefit means the cost of all benefits to which a City Manager is entitled under
the Comprehensive Omnibus Budget Reconciliation Act of 1986 (COBRA).
Member means the entity, including all of its departments and constituent agencies, that
is a signatory to the Joint Powers Agreement creating the Authority as may be amended
from time to time, which has adopted a resolution to participate in the Program, and
whose name appears on the Cover Page of this Memorandum. Member includes any
other agency for which the Member's governing board or council acts as the governing
board, and also includes any commissions, agencies, districts, authorities, redevelopment
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agencies, boards, or similar entities coming under the Member's direction and control.
Member shall include any other agency authorized by the Authority's Executive
Committee or Board of Directors.
Memorandum means this Memorandum of Liability Coverage authorized by the Joint
Powers Agreement of the Authority specifying the terms and conditions of the Program
through which certain specified and limited self-insured risks of liability are administered
by the Authority and shared by its Members.
Nuclear Material means "source material," "special nuclear material," or "by-product
material" as those terms are given meaning in the Atomic Energy Act of 1954 or any law
amendatory thereto.
Occurrence means:
A. With respect to Bodily Injury or Property Damage, an accident, including
continuous or repeated exposure to conditions, that first occurs during the
Protection Period and that results in Bodily Injury or Property Damage neither
expected nor intended from the standpoint of the Protected Party;
B. With respect to Public Officials Errors and Omissions, actual or alleged conduct
described in the definition of Public Officials Errors and Omissions during the
Protection Period;
C. With respect to Employee Benefits Administration Liability, actual or alleged
conduct described in the definition of Employee Benefits Administration Liability
during the Protection Period;
D. With respect to Personal Injury, Broadcast/Publication Injury, and Employment
Practices Liability, an offense described in the definitions of those terms; or
E. With respect to Termination of City Manager's Employment Liability, injury
arising out of:
(i) Dismissal, discharge, or termination of the employment of a City Manager;
or
(ii) Failure to renew an employment contract which results in termination of the
employment of a City Manager
for which liability on the part of a Protected Party can be settled through the
acceptance by the City Manager of an Unemployment Protection Payment in
exchange for a Waiver and Certification.
F. All claims based on or arising out of Harassment or similar conduct (including
molestation or sexual abuse) by an Employee, or more than one Employee acting in
concert, will be considered arising out of one Occurrence and shall be deemed to
have been committed at the time of the first of such acts or alleged acts, regardless
of the number of:
(i) Protected Parties;
(ii) Claims made or Suits brought; or
(iii) persons or organizations that sustain injuries or Damages.
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If a series of wrongful acts committed by one Employee, or more than one
Employee acting in concert, takes place over more than one Protection Period, the
wrongful acts will be deemed to have been committed during the first Protection
Period and only the Protection Limit for that Protection Period shall apply.
Personal Injury means injury, other than Bodily Injury, Property Damage or Public
Officials Errors and Omissions, resulting from one or more of the following offenses:
A. False arrest, detention, or imprisonment;
B. The use of force for the purpose of protecting persons or property;
C. Malicious prosecution or abuse of process;
D. Wrongful entry by any employee of the Member into a room, dwelling, or other
similar premises that a person occupies;
E. Wrongful eviction by any employee of the Member of a person from a room,
dwelling, or other similar premises that such person occupies;
F. The publication or utterance of a libel or slander, including statements that
disparage a person's or organization's goods, products, or services;
G. A publication or utterance that violates a person's right of privacy;
H. Interference with an existing or prospective economic advantage, contract, or
agreement;
Discrimination;
J. Violation of civil rights; or
K. Infliction of emotional distress.
Pollutants/Hazardous Materials includes without limitation:
A. Any flammable or explosive substances, radioactive materials, asbestos, poly-
chlorinated biphenyls, chemicals, substances known to cause cancer or reproductive
toxicity, pollutants, contaminants, hazardous wastes, toxic substances, or related
materials which are regulated by or under any federal, state, or local environmental
law;
B. Any material identified as hazardous in Sections 6626 1. 10 through 66261.126 of
Title 22 of the California Code of Regulations, as amended from time to time
(collectively);
C. Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste. The term "waste" includes
materials to be recycled, reconditioned, or reclaimed; and
D. Fungi and bacteria of any kind, unless caused by an otherwise covered Occurrence.
Program means the California Joint Powers Insurance Authority Liability Protection
Program described by this Memorandum and the Agreement of the Members creating
the Authority. The Program is a fund created by the Members for the purpose of
pooling self-insured losses.
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Property Damage means:
A. Physical injury to or destruction of tangible property which occurs during the
Protection Period, including the loss of use thereof at any time resulting there
from; or
B. Loss of use of tangible property that has not been physically injured or destroyed
provided such loss of use is caused by an Occurrence during the Protection
Period.
Protected Contract means a written agreement that satisfies all of the following:
A. The agreement pertains to the Member's operations and by the contract terms the
Member assumes the Tort Liability of another to pay damages because of Bodily
Injury or Property Damage to a third person or organization;
B. The agreement is entered into prior to the Bodily Injury or Property Damage for
which a Claim is made;
C. The agreement, including its value, is reported by the Member to the Authority
prior to the Bodily Injury or Property Damage and the value is added to the
Member's annual payroll for use in the annual retrospective deposit computation.
A Protected Contract may cover an architect, engineer, or surveyor for his or her
role as a Public Official, except for the application of paragraphs B.(i) and B.(ii)
below. Protected Contracts may apply to contract public works directors, building
officials, planning directors, City Managers, city attorneys, city prosecutors,
redevelopment directors, or other contracted Public Officials for occurrences arising
out of their official duties, but this coverage applies only to the named contract
Public Official and does not extend to other individuals within the contractor's firm.
A Protected Contract does not include any part of any contract or agreement:
A. That indemnifies any person or organization for injury or damages caused by or
arising out of the ownership, operation, maintenance or use of any Aircraft,
Airport or Watercraft;
B. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply
in the instance where an individual is under an exclusive contract as a contract
Public Official solely for the benefit of the Member (i.e., no work is performed by
the person for any other person or entity), for injury or damage arising out of:
(i) Preparing, approving, or failing to prepare or approve maps, drawings,
opinions, reports, surveys, change orders, designs or specifications; or
(ii) Giving or failing to give directions or instructions, if that is the primary cause
of the injury or damage;
C. Under which the Protected Party, if an architect, engineer, or surveyor, assumes
liability for injury or damage arising out of the Protected Party's rendering or
failing to render professional services, including those listed in B. above and
supervisory, inspection, or engineering services; or
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D. That indemnifies any person or organization for damages by fire, explosion, or
water damage to premises rented or loaned to the Member.
Limited Protected Contract means a written agreement in which:
A. The Member is merely seeking to utilize real or personal property and by the
contract terms assumes the Tort Liability of another to pay damages because of
Bodily Injury or Property Damage to a third person and Authority staff has
determined in its sole discretion that any risks assumed in the agreement do not
significantly increase the Member's risk exposure; or
B. The Member is obligated to provide evidence of coverage for a third party to
participate in a funding program administered by another government or evidence of
coverage required by bond indentures entered into by the Member if Authority
staff has determined in its sole discretion that any risks assumed in the agreement do
not significantly increase the Member's risk exposure;
and which is entered into and approved by the Authority prior to the Bodily Injury or
Property Damage for which a Claim is made.
A Limited Protected Contract does not include any part of any contract or agreement
that indemnifies any person or organization for injury or damages caused by the sole
negligence of such person or organization, or that cannot be included in a Protected
Contract.
Protected Party means:
A. The Member named on the Cover Page;
B. Persons who are, or were, elected or appointed officials or Employees of the
Member, whether or not compensated, while acting within the scope of their duties
or employment as such, including while acting on outside committees,
commissions, or boards at the direction of the Member, except that the protection
so provided does not apply to Bodily Injury to another official or employee of the
Member in the course of and arising out of his or her duties to or employment by
the same Member;
C. Any nonprofit California corporation or unincorporated association under written
contract with the Member to perform specified functions under the Member's
direction and control;
D. Any person or entity identified as an additional Protected Party in a letter
certifying such additional Protected Party status issued by the Authority, for
Occurrences during the time period identified in the letter; if a particular activity is
identified in the letter, the person or entity is a Protected Party only for
Occurrences arising out of the described activity. Additional Protected Party
status will apply only where required by the terms of a Protected Contract or
Limited Protected Contract;
E. Any person while using an Automobile owned, hired, or leased by a Member, and
any person or organization legally responsible for the use thereof, provided the use
is with the express permission of the Member, and only for Bodily Injury and
Property Damage. This protection does not apply to:
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(i) Any person or organization, or any agent or employee thereof, engaged in
selling, repairing, servicing, delivering,'testing, road testing, parking or
storing, Automobiles, with respect to any Occurrence arising out of any such
occupation or activity;
(ii) With respect to any hired automobile, to the owner or a lessee thereof, other
than the Member, or to any agent or employee of such owner or lessee; or
(iii) Any person or organization or to any agent or employee thereof engaged in a
business of operating buses or other Automobiles for the transport of
members of the public unless that business is owned by the Member and
operated by its employees.
This Memorandum does not provide Underinsured or Uninsured Motorist
coverage.
F. The Authority, its officers and employees while acting in the course and scope of
their duties or employment.
G. No person or entity is a Protected Party with respect to the conduct of any current
or past partnership, joint venture or joint powers authority (including any separate
entity created pursuant to a joint powers agreement). However, for any person who
is an official or Employee of a Member, who participates in the activities of a
partnership, joint venture, or joint powers authority and is acting for or on behalf of
the Member at the time of the Occurrence, protection is afforded by this
Memorandum. Such coverage shall be in excess of, and shall not contribute with,
any collectible insurance, self-insurance or other coverage provided to the other
joint powers authority, agency or entity.
Protection Period means the time period shown on the Cover Page of this
Memorandum.
Public Officials Errors and Omissions means any act, error, omission, misstatement,
misleading statement, neglect, or breach of duty by any Protected Party in the discharge
of that individual's duties for the Member; or any matter claimed against any Protected
Party solely by reason of the individual being or having been an employee of the
Member. Public Officials Errors and Omissions does not include Bodily Injury,
Property Damage, Personal Injury, Broadcast/Publication Injury, or Employment
Practices Injury.
Radioactive Contamination Injury means Bodily Injury or Property Damage caused
by or arising from ionizing radiations or contamination by radioactive material.
Suit means a civil proceeding in which a Protected Party is named as a defendant or
cross defendant, or an arbitration proceeding or alternative -dispute resolution proceeding
to which a Protected Party submits with the Authority's written consent.
Termination for Cause means dismissal, discharge, termination of employment, or
failure to renew a contract for the reasons stated in 29 USC § 1 111, of the Employee
Retirement Income Security Act of 1974. This includes ending the employment of a City
Manager because the City Manager has been convicted of robbery, bribery, extortion,
embezzlement, fraud, grand larceny, burglary, arson, a felony violation of a state or
Memorandum of Liability Coverage Page 11 of 24 July 1, 2008 — July 1, 2009
federal law regulating a controlled substance (felony drug conviction), murder, rape,
kidnapping, perjury, assault with intent to kill, or any felony involving abuse or misuse of
the City Manager's position to obtain illegal personal gain.
Tort Liability means civil liability that would be imposed by law in the absence of any
agreement or contract.
Unemployment Protection Payment means a payment that shall be paid once a month,
for a time period not to exceed six months (the "Payment Period") following the Waiting
Period, that shall equal the amount of the City Manager's salary at the time of the
termination of employment Occurrence plus payment of the Medical Benefit less any
amount of compensation earned, while self-employed or as an employee, or any other
payment received as a result of the Occurrence during the Payment Period.
"Salary," for purposes of this Unemployment Protection Payment, means the
regular monthly compensation of the City Manager, whether paid monthly, bi-
weekly, semi-monthly, or otherwise, and does not include Benefits, bonuses, car
allowances, expenses, or other allowances, contributions to the Public Employees
Retirement System or any deferred compensation payments made on behalf of the
City Manager by the Protected Party.
Waiting Period means a period of time after the termination of employment Occurrence
equal to the greater of (1) six months or (2) the number of months of salary received by
the City Manager as a severance payment from the Member.
Waiver means a full and complete relinquishment by a City Manager of any and all
rights to sue a Protected Party for any Benefit, compensation, injury, or damages,
known or unknown, past, present or future, arising out of the employment of, termination
of the employment of, or failure to employ the City Manager.
Watercraft means a vessel, more than 25 feet in length, designed to transport persons or
property in, on, or through water.
4. EXCLUSIONS
This Memorandum, including any obligation to defend or to pay Defense Costs, does
not apply to:
A. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of the ownership, maintenance, use or operation of any Watercraft,
Aircraft, or Airport. Protection does apply to use of an Aircraft or Watercraft, if
the Aircraft or Watercraft is not owned in whole or in part by the Member and the
Member exercises no part in the servicing or maintenance of the Aircraft or
Watercraft. However, this limited protection does not apply to:
(i) Loss, loss of use of, or damage to the Aircraft or Watercraft; or
(ii) Use of any Aircraft or Watercraft for hire or reward.
B. Any Claim, Suit, obligation or alleged obligation for which a Protected Party or
any insurance company as his/her/its insurer may be held liable under any workers'
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compensation, unemployment compensation or disability benefits law, or under any
similar law.
C. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Bodily Injury
to:
(i) An employee of the Protected Party arising out of and in the course of
employment by the Protected Party; or
(ii) The spouse, child, parent, brother, or sister of that employee as a consequence
of paragraph (i) above.
This Exclusion C. applies whether the Protected Party may be liable as an
employer or in any other capacity, and to any obligation to share damages with or
repay someone else who must pay damages because of the injury. However, this
exclusion does not apply to liability assumed in a Protected Contract or Limited
Protected Contract.
D. Injury to or destruction of:
(i) Property owned by the Protected Party;
(ii) Property rented to or leased to the Protected Party where it has assumed
liability under any contract for damage to or destruction of such property
unless the Protected Party would have been liable in the absence of such
assumption of liability; or
(iii) Property in the care, custody, or control of any Protected Party.
E. Any Claim, Suit, liability; alleged liability, loss, cost, or expense caused by, arising
out of or in any way connected with the operation of the principles of eminent
domain, condemnation proceedings, or inverse condemnation, by whatever name
called, whether such liability accrues directly against the Protected Party or by
virtue of any agreement entered into by or on behalf of the Protected Party. This
exclusion E. shall not apply to liability, loss, cost or expense arising from property
damage caused by earth movement, subsidence of land, sewer backup, or flooding,
even though a legal theory upon which a claimant seeks recovery is the principle of
inverse condemnation.
F. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
actual, alleged or threatened discharge, dispersal, seepage, migration, release,
escape, or any other forms of exposure to or the presence of Pollutants/Hazardous
Materials including any Claim, Suit, liability, alleged liability, loss, cost or
expense directly or indirectly caused by or arising out of any:
(i) Request, demand, or order that any Protected Party or others test for,
monitor, clean up, remove, contain, treat, detoxify, or neutralize, or in any
way respond to, or assess the effects of Pollutants/Hazardous Materials;
(ii) Claim or Suit by or on behalf of a governmental authority or any other entity
or person for costs of or damages because of testing for, monitoring, cleaning
up, removing, containing, treating, detoxifying, or neutralizing, or in any way
responding to, or assessing the effects of Pollutants/Hazardous Materials; or
Memorandum of Liability Coverage Page 13 of 24 July 1, 2008 — July 1, 2009
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(iii) Actions or steps taken to mitigate damages or to relocate persons, property or
business as a result of Pollutants/Hazardous Materials.
EXCEPTION TO EXCLUSION, PROTECTION FOR CERTAIN ACCIDENTAL
POLLUTION INJURIES. However this Exclusion F. does not apply to Bodily
Injury or Property Damage arising out of or caused by any actual, alleged or
threatened discharge, dispersal, seepage, migration, release or escape of
Pollutants/Hazardous Materials if:
(i) It was directly caused by Hostile Fire, explosion, lightning, windstorm,
vandalism or malicious mischief or collision, overturning or upset of a motor
vehicle or railroad vehicle; and
(ii) It was accidental and was neither expected nor intended by the Protected
Party; and
(iii) It was instantaneous and was demonstrable as having commenced at a specific
time and date during the term of this Memorandum; and
(iv) Its commencement became known to the Protected Party within seven days;
and
(v) Its commencement was reported in writing to the Authority within twenty
days of becoming known to the Protected Party; and
(vi) Reasonable efforts were expended by the Protected Party to correct or
terminate the discharge, dispersal, seepage, migration, release, or escape of
Pollutants/Hazardous Materials.
Nothing contained in this EXCEPTION TO EXCLUSION, PROTECTION FOR
CERTAIN ACCIDENTAL POLLUTION INJURIES shall operate to provide any
protection or obligation to defend or pay Defense Costs with respect to:
(i) Any site or location used by others on the Protected Party's behalf for the
handling, storage, disposal, dumping, processing, or treatment of waste
material. This exclusion applies whether or not the action by others was
known to the Protected Party;
(ii) Any clean-up costs mandated by the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and any similar laws
or statutes; or
(iii) Clean up, removal, containment, treatment, detoxification or neutralization of
Pollutants/Hazardous Materials situated on premises the Protected Party
currently owns, rents or occupies.
(iv) Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon
or arising out of Personal Injury or Public Officials Errors and Omissions.
G. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly based on or arising out of the hazardous properties of Nuclear Material.
However, this exclusion does not apply to Radioactive Contamination Injury.
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H. Any Claim, Suit, liability, alleged liability, loss, cost, or expense directly or
indirectly caused by any complete or partial failure, interruption or surge in the
supply of water, electrical power, gas or fuel, unless such failure, interruption or
surge results from sudden and accidental physical destruction of tangible property
which is caused by the Protected Party.
1._ Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of the
partial or complete structural failure of a Dam.
J. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, or
arising out of, or in connection with the operation of any hospital, clinic (including a
mobile clinic), or established health-care facility owned or operated by the
Protected Party, but protection does apply to liability arising out of the rendering
of emergency medical aid by paramedics, emergency medical technicians, or other
Protected Parties who are not acting in the course of their employment by a
hospital, clinic, or established health-care facility.
K. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of or in connection with the ownership, maintenance, use, or operation
by the Protected Party of any railroad.
L. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by, based
upon or arising out of the Employee Retirement Income Security Act of 1974,
Public Law 93-406, or any amendment or addition thereto, or any statute or
common law rule which imposes fiduciary duties and responsibilities with respect to
employee benefits or retirement plans; however this exclusion does not apply to
liability protected under Employee Benefit Administration Liability.
M. Any Claim, Suit, liability, or alleged liability for punitive or exemplary damages or
fines or other damages imposed primarily for the sake of example and by way of
punishing the Protected Party, including liability of a Member to defend or pay
damages where the governing body thereof has elected to provide a defense or pay
damages for a Claim, action or judgment for punitive or exemplary damages.
N. Any Claim, Suit, liability, alleged liability, loss, cost, or expense caused by or
arising out of any violation of state or federal antitrust or restraint -of -trade laws.
O. Any Claim, Suit, liability, alleged liability, loss, cost, or expense arising out of:
(i) the adoption or administration of any ordinance, resolution or regulation; or
(ii) the approval or disapproval of any land -use entitlement including but not
limited to general plan amendments, zoning amendments, conditional -use
permits, tract maps, development agreements, owner -participation
agreements, or disposition -and -development agreements; or
(iii) the approval or disapproval of any rent control ordinance, outdoor advertising
ordinance, or adult bookstore ordinance.
This exclusion shall not apply to claims of neglect or failure to enforce any law.
P. Any Claim, Suit, liability, alleged liability, loss, cost, or expense including Tort
Liability:
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(i) Arising out of or as a consequence of an actual or alleged breach of any
contract or agreement;
(ii) For any amount actually or allegedly due under the terms of any contract or
agreement; or
(iii) Arising out of or as a consequence of the.failure, refusal, or inability of a
Protected Party or anyone acting on behalf of a Protected Party to enter
into or renew any contract or agreement.
However, this Exclusion P. shall not apply to Tort Liability imposed by law for
Damages caused by, arising out of, or as a consequence of failure or delay by a
Protected Party or anyone acting on behalf of a Protected Party to fully perform
any duties or obligations under any contract or agreement.
As used in this Exclusion P., the term "contract or agreement" shall include but not
be limited to a Protected Contract or Limited Protected Contract.
Q. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for declaratory,
injunctive, equitable or other relief, writs of mandate or prohibition or other
prerogative writs, or other relief not seeking Damages. This includes any expense
or cost incurred by a Protected Party arising from the cost of reasonable
accommodation of any disabled person, including any Employee.
R. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Personal
Injury or Broadcast/Publication Injury directly or indirectly caused by or arising
out of any:
(i) Oral or written publication of material, if done by or at the direction of the
Protected Party with knowledge of its falsity;
(ii) Oral or written publication of material whose first publication took place
before the beginning of the Protection Period; or
(iii) Act, omission, or offense committed by a Protected Party with actual malice.
Any liability for which the Protected Party is obligated to pay damages by reason
of liability assumed in a contract or agreement. This Exclusion does not apply to
liability for Bodily Injury or Property Damage:
(i) Assumed in a contract or agreement that is a Protected Contract or Limited
Protected Contract; or
(ii) That the Protected Party would have independent of a written contract or
agreement.
T. Any Claim or Suit by a Member against a Protected Party.
U. Any Claim or Suit by a Member against another Member.
V. Any Claim, Suit, liability, alleged liability, loss, cost, or expense based upon or
arising out of.
(i) Loss of, loss of use of, injury to, destruction of, diminution of value of,
disappearance of, or costs of recovery of any money or securities, or any
financial loss or default; or
Memorandum of Liability Coverage Page 16 of 24 July 1, 2008 — July 1, 2009
�J
E
(ii) Refunds of taxes, fees, or assessments; or
(iii) The issuance, management of proceeds or repayment of bonds, notes or other
debt instruments by any Member or any agent acting on behalf of such
Member; or
(iv) The purchase, transfer, or sale of any securities by any Member or agent
acting on behalf of such Member.
W. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Public
Officials' Errors and Omissions Liability based upon or arising out of:
(i) Liability of any Protected Party arising out of estimates of probable costs or
cost estimates being exceeded or for faulty preparation of bid specifications or
plans including liability for mechanic's lien claims, stop notice claims, change
order claims, site differential claims, or'similar claims for the value of services
or materials provided; this exclusion extends to such claims however
denominated, including claims of breach of oral or written contract, third
party beneficiary claims, quantum meruit claims, and/or open account claims;
(ii) Any Protected Party obtaining remuneration or financial gain to which the
Protected Party is or was not legally entitled;
(iii) Liability assumed by a Protected Party in a contract or agreement, but this
exclusion does not apply to liability for Damages that the Protected Party
would have independent of the contract or agreement; or
(iv) Willful violation of penal code or ordinance committed by or with the
knowledge or consent of any Protected Party.
X. Under Employment Practices Injury, any Claim, Suit, liability, alleged liability,
loss, cost, or expense that:
(i) Constitutes benefits due or to become due or the equivalent value of such
benefits, including but not limited to perquisites, fringe benefits, payments in
connection with an employee benefits plan, or any other payment other than
salary or wages to or for the benefit of an employee arising out of the
employment relationship;
(ii) Is based upon, arises from, or is in consequence of the employment
reinstatement of the claimant by the Member or the continued employment of
the claimant;
(iii) Is based upon, arises from, or is a consequence of an Occurrence that began
prior to this Memorandum's Protection Period;
(iv) Constitutes front pay, future damages or other future economic relief or the
equivalent thereof, if the Member has the option pursuant to a judgment or
other final adjudication but fails to reinstate the claimant as an employee; or
(v) Is based upon, arises from or is in consequence of an actual or alleged
violation of the responsibilities, obligations or duties imposed by the
Employee Retirement Income Security Act of 1974, the Fair Labor Standards
Act, the National Labor Relations Act, the Worker Adjustment and Retraining
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Notification Act, the Consolidated Omnibus Budget Reconciliation Act of
1985, the Occupational Safety and Health Act, rules or regulations
promulgated there under and amendments thereto or similar provisions of any
federal, state, or local statutory law or common law.
However, with respect to the exclusions listed in items (i) through (v) immediately
above, no fact pertaining to or knowledge possessed by any Protected Party shall
be imputed to any other Protected Party to determine if protection is available
under this Memorandum.
Y. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for Employee
Benefit Administration Liability based upon or arising out of:
(i) Any dishonest, fraudulent, criminal or malicious act, libel, slander,
discrimination, or humiliation;
(ii) Failure of performance of contract by an insurer;
(iii) Failure of any investment plan to perform as represented by a Protected
Party;
(iv) Advice given by a Protected Party to an Employee to participate or not
participate in subscription plans; or
(v) The inability of any Employee Benefits Program to meet its obligations due
to insolvency or inadequacy of funding.
Z. Any Claim, Suit, liability, alleged liability, loss, cost, or expense for termination of
a City Manager's employment based upon or arising out of:
(i) Termination for Cause;
(ii) Lack of a duly executed Waiver; or
(iii) Lack of a duly executed Certification.
5. CONDITIONS AND RESPONSIBILITIES
A. Inspection and Audit
The Authority shall be permitted but not obligated to inspect the Protected Party's
property and operations at any time. Neither the Authority's right to make inspections
nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of
of for the benefit of the Protected Party or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulations. The Authority may examine and audit the Protected Party's books and
records at any time during the Protection Period and extensions thereof and within three
years after the final termination of this Program, as far as they relate to the subject
matter of this Memorandum.
B. Severability of Interest
The term Protected Party is used severally and not collectively, and the protection
afforded applies to each Protected Party against whom a Claim is made as if a separate
Memorandum of Liability Coverage Page 18 of 24 July 1, 2008 — July 1, 2009
Memorandum were issued to it, but the inclusion herein of more than one Protected
Party shall not operate to increase the per Member Protection Limit.
C. Protected Party's Duties in the Event of Occurrence, Claim or Suit
(i) In the event of any Occurrence, written notice containing particulars
sufficient to identify the Protected Party and also reasonably obtainable
information with respect to the time, place, and circumstances thereof, and the
names and addresses of the injured and of available witnesses, shall be given
by or for the Protected Party to the Authority's Claims Administrator as
soon as practicable.
(ii) If a Claim is made against a Protected Party, the Protected Party shall
immediately forward to the Authority's Claims Administrator every demand,
notice, summons or other process received by the Protected Party or the
Protected Parity's representative.
(iii) The Authority's Claims Administrator will review the Claim, undertake
whatever investigation is indicated, and take appropriate action, depending on
the circumstances. A Claim may be returned to claimant as "insufficient," if
it does not contain minimum and essential information about the incident or
the identity of the claimant. A Claim may also be returned as "late," if the
prescribed time for filing has been exceeded. The Claims Administrator may
request that the Member reject the Claim, or take no action until further
notice, or the such actions may be taken by the Claims Administrator if claims
handling authority has been delegated to the Authority by the Member.
(iv) The Protected Party shall cooperate with the Authority and, upon the
Authority's request, assist in making settlements, in the conduct of Suits, and
in enforcing any right of contribution or indemnity against any person or
organization who may be liable to the Protected Party because of injury or
damage with respect to which protection, including any Defense obligation, is
afforded under this Memorandum; and the Protected Party shall not, except
at the Protected Party's own cost, voluntarily make any payment, assume
any obligation or incur any expense. No Claim shall be settled without the
prior written consent of the Authority, and the Authority shall not be
required to contribute to any settlement to which it has not consented.
D. Other Protection
If collectible insurance or any other coverage or protection with any insurer, any
permissibly self-insured general employer, joint powers insurance authority or any other
source is available to the Protected Party covering a loss also protected hereunder
(whether on a primary, excess or contingent basis), the protection hereunder (including
any Defense obligation) shall be in excess of, and shall not contribute with, such
insurance or other coverage or protection, provided that this clause does not apply with
respect to any insurance purchased by a Protected Party specifically to be in excess of
this Memorandum. Under no circumstances shall the protection afforded by this
Program be considered primary, pro rata, concurrent or co -existent with such insurance,
coverage, or other protection.
Memorandum of Liability Coverage Page 19 of 24 July 1, 2008 — July 1, 2009
E. Termination orAmendment
This Memorandum may be terminated or amended at any time in accordance with the
Joint Powers Agreement and Bylaws of the Authority.
Changes
Notice to any agent or knowledge possessed by any agent of the Authority or by any
other person shall not effect a waiver of or a change in any part of this Memorandum,
nor shall the terms of this Memorandum be waived or changed, except by a written
addendum issued by the Authority to form a part of this Memorandum.
G. Subrogation
The Authority shall be subrogated to the extent of any payment hereunder to all the
Protected Party's rights of recovery thereof. The Protected Party shall do
nothing after loss to prejudice such rights and shall do everything necessary to
secure such rights. The Authority shall have standing to seek subrogation recovery
in its own name or in the name of the Protected Party, and the Protected Party
shall cooperate with and assist the Authority in pursuing such recovery, including
assigning its right to recover subrogated amounts, and if necessary executing a
written agreement to effect such assignment. Any amount so recovered shall be
apportioned as follows:
(i) The Authority shall be reimbursed to the extent of all payment under this
Memorandum. Any remaining balance shall be applied to reimburse the
Protected Party;
(ii) The expenses of such recovery proceedings shall be apportioned in the ratio of
respective recoveries. If there is no recovery in proceedings conducted solely
by the Authority, the Authority shall bear the expenses thereof.
H. Assignment
Assignment of interest under this Memorandum shall not bind the Authority until its
consent is endorsed hereon; if, however, the Member shall be adjudged bankrupt or
insolvent, such protection and Defense obligations as are afforded by this Memorandum
shall apply (a) to Member's legal representative, as the Member, but only while acting
within the scope of said representative's duties as such, and (b) with respect to the
property of the Member, to the person having proper temporary custody thereof, as a
Protected Party, but only until the appointment and qualification of a legal
representative.
I. Joint Powers Agreement
The provisions of this Memorandum are subject to and subordinate to the terms and
provisions of the Agreement creating the Authority, and in the event of any conflict
between the terms and provisions of said Agreement and this Memorandum, the terms
and provisions of the Agreement shall control.
Appeal of Disputes
No party is entitled to appeal or arbitrate claims under this Memorandum other than the
Member. Specifically, Employees are not intended to be third party beneficiaries of this
Memorandum of Liability Coverage Page 20 of 24 July 1, 2008 — July 1, 2009
• 0
agreement and shall have no right to bring an action against the Authority for a
declaration of rights to protection under this Memorandum. The sole remedy of any
Employee shall be the Employee's right to defense or indemnity against the employing
Member under the provisions of the California Government Code.
Any disputes concerning coverage, protection, Defense obligations, or procedures of the
Program, as interpreted by the Authority's staff, shall be appealed to the Authority's
Executive Committee in accordance with the following procedures.
(i) A written notice that a Claim is not covered by the Memorandum will
normally be provided to the Member by the Claims Administrator. A
Member may request any determination of a lack of coverage made by the
Claims Administrator to be reviewed by the Chief Executive Officer. Such a
request shall be in writing and must be made within 90 days of the date of the
written notice from the Claims Administrator.
(ii) Upon request, the Chief Executive Officer shall review a determination of a
lack of coverage made by the Claims Administrator or Authority staff and
shall send to the Member a written determination of coverage.
(iii) If a Member disagrees with the coverage determination by the Chief
Executive Officer, the Member may appeal the decision to the Appeals
Committee. The Appeals Committee consists of the Executive Committee
and the chairs of the Managers and Finance Officers Committees. Appeals
must be in writing within 90 days of the date of the Chief Executive Officer's
written decision. The appeal request must state why the Member disagrees
with the denial, and the Member should present any information that may
have a bearing on the ultimate determination of coverage.
(iv) The appeal request shall be presented by Authority staff to the Appeals
Committee, on a regularly scheduled Executive Committee meeting day,
allowing time for sufficient review and agenda deadlines. Staff shall notify
the Member in advance of the meeting at which its appeal will be presented.
(v) If the Member would like to personally address the Appeals Committee, the
Member or the Member's representative may attend the meeting and speak
to the issue.
(vi) The Appeals Committee may refer the appeal to the Coverage Committee and
consider the recommendation of the Coverage Committee during its
deliberation on the appeal. The Appeals Committee's decision is final.
Authority staff will notify the Member of the Appeals Committee's decision
in writing.
(vii) Following a final determination regarding a Claim, consideration of the
decision may be reopened at the request of the Member if circumstances
change as follows: (1) a new and distinct Claim arising out of the prior
Occurrence is presented to the Member, or (2) new and distinct causes of
action are added to the Claim. If the new Claim or causes of action are
reasonably thought by the Member to be covered, the Appeals Committee
will reconsider the issue, in accordance with the procedure in this paragraph
Memorandum of Liability Coverage Page 21 of 24 July 1, 2008 — July 1, 2009
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J., upon request. Any request for such reconsideration must be in writing
within 90 days of the notice to the Member of the new Claim or cause of
action.
If a Member disputes a coverage issue, then, during the course of the administrative and
arbitration proceedings provided herein, the Authority shall defend the Claim against the
Member and have the right to control any settlement of that Claim, subject to the right
of the Authority to recover from the Member any amounts paid out by the Authority
for such defense or settlement which are finally determined by the Appeals Committee,
or as a result of the Binding Arbitration Process, not to be owed by the Authority under
the Program.
K. Arbitration
If the Member has followed the coverage Appeals Procedure outlined in S.J. Appeal of
Disputes and disagrees with the final determination of the Appeals Committee, the
Member may request consideration of the coverage issue through the Authority's
Binding Arbitration Process.
The Arbitration process shall be as follows:
(i) Following a decision by the Appeals Committee, the appealing Member shall
notify the Chief Executive Officer in writing, within 30 days of the Appeals
Committee's final decision, that it wishes to participate in Binding Arbitration
and shall submit a non-refundable $1,000 arbitration appeal fee. The written
notice shall specify the grounds for the arbitration.
(ii) Following payment of the arbitration appeals fee, the name of each Member,
other than the appealing Member and the Members represented on the
Appeals Committee, shall be placed in an unmarked envelope. Each envelope
shall be placed in a box and eleven envelopes shall be drawn by the Chief
Executive Officer. A representative of the appealing Member may be present
at the drawing.
(iii) The City Managers of the eleven Members shall be the pool of potential
arbitrators. The eleven Members and the names of their City Managers shall
be given in writing to the appealing Member.
(iv) The appealing Member shall have the right to strike two or less names from
the pool for any reason which shall not be disclosed. The Authority shall
have the right to strike two or less names from the pool for any reason which
shall not be disclosed. The appealing Member and the Authority must strike
names within five business days of the drawing. The right of either party to
strike names shall lapse at 5:00 PM on the fifth day following the drawing.
Notice of names stricken by either party shall be given in writing to the other
party prior to 5:00 PM on the fifth day following the drawing.
(v) The remaining City Managers shall be contacted by the Chief Executive
Officer to determine their willingness to serve on the arbitration panel. If
more than five are willing to serve, each name shall be placed in an unmarked
envelope, put in a box, and the Chief Executive Officer shall draw five
envelopes from the box. The individuals whose names are drawn shall be the
Memorandum of Liability Coverage Page 22 of 24 July 1, 2008 — July 1, 2009
arbitration panel and they shall be disclosed in writing to the appealing
Member.
(vi) If only five are willing to serve, they shall be the arbitration panel.
(vii) If fewer than five are willing to serve, the name of each member not drawn in
the previous selection drawing shall be placed in an unmarked envelope, put
in a box, and four envelopes shall be drawn for each arbitration panel position
needed to have a five -member panel. A representative of the appealing
Member may be present at the drawing. The names drawn shall be disclosed
to the appealing Member who may reject, for any reason which shall not be
disclosed, one name for each four names drawn. The Authority may also
reject one name for each four names drawn and shall not disclose the reason.
Names rejected by the appealing Member and the Authority must be rejected
within 48 -hours of the drawing. The right to reject names shall lapse 48 -hours
following the drawing.
(viii) The City Managers of the Members remaining shall be contacted by the
Chief Executive Officer to determine their willingness to serve on the
arbitration panel. The names of those willing to serve shall be placed in
unmarked envelopes, put in a box, and the number necessary to fill out the
arbitration panel shall be drawn by the Chief Executive Officer and disclosed
in writing to the appealing Member. A representative of the appealing
Member may be present at the drawing.
(ix) This process shall be repeated until five members are obtained for the
arbitration panel.
(x) The arbitration panel members shall be compensated at the rate of $125 per
half-day or portion thereof. If a panel member is required to stay away from
home overnight, lodging shall be paid by the Authority. Necessary meals
shall be provided for all panel members. Mileage costs shall be reimbursed by
the Authority at its standard rate.
(xi) The cost of the arbitration panel shall be bome by the Authority. The cost of
presentation by the appealing Member, including preparation, exhibits,
attorneys, and all other costs of the Member shall be paid by the Member.
(xii) The arbitration panel may request legal counsel that shall be selected by the
Chief Executive Officer and paid for by the Authority. Legal counsel shall
not be the counsel for the Authority that has advised the staff and Executive
Committee. However, counsel for the Authority may participate in or make
the presentation to the arbitration panel on behalf of the Authority, as
requested by the Chief Executive Officer.
(xiii) The parties to the arbitration shall not be governed by formal rules of
evidence.
(xiv) The arbitration panel's decision shall be final and binding on the Member and
the Authority. Decisions of the arbitration panel shall be by majority vote.
Memorandum of Liability Coverage Page 23 of 24 July 1, 2008 — July 1, 2009
•
(xv) The decision of the arbitration panel shall be written and shall govem the
issue decided but may be referred to by the Authority and future arbitration
panels for precedent.
Memorandum of Liability Coverage Page 24 of 24 July 1, 2008 — July 1, 2009
CALIFORNIA
J P , I - A
To: CALIFORNIA JPIA DIRECTOR
c/o City/Town Clerk or Clerk of the Boa d
From: Jonathan Shull, Executive Director
Date: December 18, 2006
Subject: Approval of Membership for Area B Disaster Management
The Executive Committee at its meeting of December 13, 2006, recommended approval of
Area B Disaster Management (Area B), for membership in the CALIFORNIA JPIA beginning
February 1, 2007.
i
The primary deposit for the General Liability Program covering the period February 1, 2007
through June 30, 2007 was prorated at $3,318, with an annual deposit of $7,963. Area B has no
employees and is therefore not applying for participation in the Workers' Compensation
Program.
We are requesting that each Member Clerk deliver the enclosed materials to the CALIFORNIA
JPIA Director appointed by its governing body, and expedite the return of the form to this office
no later than January 15, 2006. If the Director is unavailable, the duly appointed Alternate may
execute the Consent.
The CALIFORNIA JPIA Bylaws permit the independent judgment and action of your Director (or
Alternate) on this matter, so that admissions may be accomplished in a timely manner. If your
procedures require action by your governing body on the matter, please arrange for this item to
be given special handling at its next meeting.
Thank you in advance for your assistance in expediting the return of the Consent Form by
January 15, 2007. Please feel free to call me if you have any questions at (562) 467-8700
1
Enclosure
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
8081 MOODY STREET, LA PALMA, CA 90623 TEL (562) 467-8700 FAX (562) 860-4992
CALIFORNIA
CALIFORNIA JPIA
8081 Moody Street, La Palma, California
(800) 229-2343 • Fax (562) 860-4992
Voting Member
City of Rosemead
Area B Disaster Management
The application of Area B Disaster Management for membership in the
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, having
been duly considered and recommended by the Executive Committee, is
hereby:
Q Approved
Q Disapproved
Date:
Director/Alternate Signature
Area B Disaster Management
Membership Application and
Report of Initial Risk Management Evaluation
Area B Disaster Management
Application for Membership
0
0
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
8081 Moody Street, La Palma, California 90623
(562) 467-8700 • FAX (562) 402-8692
90`FO
CALIFORNIA RNIA Agency Name
I ' F I A APPLICATION FOR MEMBERSHIP
INSTRUCTIONS: Please complete the following underwriting information. You may attach
additional sheets, if necessary, to amplify your answers. The application should be signed by
the General Manager. Please type your answers. �}
Date of Application: I I i q k6
Date of Incorporation: 112 & /DL
AGENCY: V eot� ll(:5aVia/ �/fY�0UNTY OF:
ADDRESS:
MAIN PHONE: &'Jj) L % ( 3 3 MAIN FAX: l2�D5)
W EBSfl'E: 0114
APPLICATION COMPLETED BY: G55 (n- PHONE.(3(� • �j.3 j
FUNCTIO&d tylo'I Salutation Name Actual Title Phone Email
General Manager: ° '(Vls• —tr an- • ri55�Psr Cia o iY �B�Si ')i3 "s ca�ra �
Finance Officer:
Public Works Director:
Parks & Rec Director:
Planning Director:
Clerk:
Agency Attorney:
Risk Manager:
Police Chief:
Fire Chief:
Personnel Director:
1. POPULATION SERVED:
2. AREA SERVED:
3. TOTAL OPERATING BUDGET (FY 2005-2006):
(please provide a copy ofyour adopted budget)
Page 1 of 9
0
4. EMPLOYEE CENSUS:
FT PT
(Positions) (FT Equiv)
Clerical Office
(8810)
Municipal Non -Manual
(9410)
All Other Municipal
(9420)
Fire Fighters
(7706)
Volunteer Fire Fighters
(7707)
Police Officers
(7720)
Volunteer Police Officers
(7722)
Bus Operators
(7382)
Pilots
(7424)
Animal Services
(8831)
Water Works
(7520)
Sanitation Employees
(7580)
All Other
(9999)
TOTAL EMPLOYEES & GROSS PAYROLL
(Calendar year 2005)
5. CURRENT INSURANCE PROGRAM (or last insured year):
In addition, please submit the face sheets of all current policies.
A.
0
Gross Payroll for
Calendar year 2005
VOL (include non-taxable
(People) compensation&F1)
GENERAL LIABILITY COVERAGE: (Claims made or occurrence, please specify)
1. Primary Coverage:
Carrier: ��rf
Policy Period:
Occurrence Limit: $
Premium: $
Deductible/Retention: $
Claims Administrator:
EXCESS LIABILITY COVERAGE:
C
Carrier:
Policy Period:
Premium:
Carrier:
Policy Period:
Premium:
$
Excess of $
Excess of $
Excess of S
Page 2 of 9
0 •
Carrier:
Policy Period:
Premium:
Page 3 of 9
0 •
B. WORKERS' COMPENSATION COVERAGE:
1. Primary Coverage:
Carrier: 0 f /i
Policy Period:
Premium: $
Employers Liability Limit: $
Deductible/Retention: $
Claims Administrator:
2. Excess Workers' Compensation Coverage:
S Excess of $
Carrier: .
Policy Period:
Premium:
C. PROPERTY INSURANCE:
M
1. Coverage: (Replacement cost or other, please specify)
Insured values:
Buildings:
Contents:
Vehicles:
Other:
Total Values
Carrier:
Policy Period:
Premium:
Page 4 of 9
0/11
E,
0
0
6. LOSS EXPERIENCE SUMMARY: (Past five completed years)
A. GENERAL LIABILITY INCURRED LOSSES:
Year Number of Losses Amount of Losses
B. WORKERS' COMPENSATION INCURRED LOSSES:
11 Year I Number of Losses I Amount of Losses 11
C. INSURED PROPERTY INCURRED LOSSES:
Year Number of Losses Amount of Losses
Page 5 of 9
7. GENERAL EXPOSURES (owned/maintained by the agency):
Number
A. Waterfront Property: 014
B. Cemeteries:
C. Housing:
D. Libraries and/or Museums:
E. Developed Parks and Playgrounds:
F. Auditoriums and/or Exhibition Halls:
G. Community Centers:
H. Buildings Leased to Others:
I. Land Leased to Others:
J. Buildings and/or Land Leased by Organization:
K. Motorpools / Garages:
L. Underground Storage Tanks:
8. VEHICLE EXPOSURES (operated by the agency): Number
A. General Vehicles:
Passenger Sedans (non -police):
Motorcycles
Pickups & other maintenance vehicles:
Construction/Heavy Equipment:
Other - (please describe):
B. Emergency Vehicles
Police:
Passenger:
j
Motorcycles:
Pickups/Vans:
Fire:
Passenger:
PickupsfVans:
Apparatus:
C. Public Transit Vehicles:
Mini BusesNans:
l
Buses:
D. Watercraft: ^' /
.... Type: /V
Page 6 of 9
Area
9. ROADWAY AND TRAFFIC EXPOSURES (owned/maintained by the agency):
A. City Streets: (miles)
B. County Roads: (miles)
C. State Highway: (miles)
D. Traffic Signals: (number)
E. Parking Lots: (number)
F. Parking Meters: (number)
G. Sidewalks: (miles)
10. POLICE SERVICES EXPOSURES (operated by agency):
A. Number of Sworn Officers:
Full-time:
Part-time:
B. Number of Reserves:
Level I:
Level II:
C. Number of Police Stations:
D. Number of Jail. Facilities: -
Number of Cells:
E. . Is there a Policy and Procedures Manual?
F. is there a written Pursuit Policy?
G. Is there a written Policy on the use of Firearms?
H. Is there a written Policy on the use of Canines?
11. FIRE SERVICES EXPOSURES (operated by the agency):
A. Number of Sworn Fire Personnel: �nt
Full-time: 177
Part-time:
Volunteers:
Paramedics:
B. Number of Fire Stations:
12. UTILITY SERVICES EXPOSURES (owned/maintained by the agency):
A. Water Department:
Please submit an inundation map showing location and describe each dam.
1. Number of Employees:
2. Amount produced annually in acre feet:
Acre feet/year:
3. Source of supply:
4. Dams:
Number:
Capacity:
Type:
Page 7 of 9
V 1A
0 •
5. Reservoirs: �' n
Number: I tt
Capacity:
Type:
6. Storage tanks: ` 'n
Number:
Capacity:
Type:
B. Sanitary Sewer Service (owned/maintained by the agency):
Number of employees:
Average daily treatment, millions gallons/day:
Level of treatment:
Effluent discharged to:
C. Service Suppliers:
Electrical Power:
Natural Gas:
Telephone:
Cable Television: -
Water: (if private) -
Solid Waste Disposal:
13. Please include material information not requested on this form.
ACKNOWLEDGEMENT (To be completed by General Manager):
All of the above information, including attachments, has been £idly disclosed. The
CALIFORNIA JPIA may rely on these answers, including attachments, when considering
this application for membership.
DATE:
SIGNATURE:
SS
Page 9 of 9
Area B Disaster Management
Report of Initial Risk Management Evaluation
1.
II.
0 •
CALIFORNIA JPIA
MEMBERSHIP APPLICATION
.0000..
REPORT OF INITIAL RISK MANAGEMENT EVALUATION
of the
Area B Disaster Management
....0.0
RECOMMENDATION
It is recommended that Area B Disaster Management's (Area B) application for
membership in the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY be approved with
an initial General Liability Program primary deposit, covering the period February 1,
2007 through June 30, 2007 prorated at $3,318, with an annual deposit of $7,963. Area B
has no employees and is therefore not applying for participation in the Workers'
Compensation Program.
GENERAL INFORMATION
A. Date of Survey: November 20, 2006
B. Participants in Survey:
1. For CALIFORNIA JPIA: Jim Gross, Senior Risk Consultant
2. For Area B: Tracy Fessler, Area Coordinator
Debbie Larson, Risk Management Analyst, City of
Calabasas
Donna Nuzzi, Emergency Services Supervisor, City
of Santa Clarita
Page - 1
0 •
C. Description of Applicant:
In March 2004, Los Angeles County and eight cities entered into a formal joint
powers agreement to create Area B. This Los Angeles County Operational Area
was organizing under the California Standardized Emergency Management
System (SEMS). Five Area B member cities are also members of the CALIFORNIA
JPIA.
Area B plays a role in improving emergency preparedness on a cooperative and
economical basis for all JPA members, and serves as a coordination link between
the local, county, state and federal governments. Responsibilities of Area B
include:
• Assist cities in preparation of emergency plans, required documentation,
drills and exercises
• Conduct emergency management training programs for city staff
• Liaison and share information among members and county, state, and
federal government
• Conduct monthly meetings between city Emergency Management
Coordinators, County agencies, and other service agencies
• Provide public information and educational materials
• Following disasters, serve as a coordination link between cities, the
county, and the state
• Assist cities in post -disaster recovery efforts
• Represent Area members on special committees, at workshops, and
meetings
Area B's Board of Directors meets monthly (10 times per year) and consists of
one appointed staff member from each member agency.
Area B's 2006-2007 operating budget was approximately $78,000, having no
payroll expense. All funding is through federal Emergency Management
Performance Grants.
During the survey, Ms. Fessler and other support staff displayed knowledge and
concern about risk management issues. This attitude was reflected in Area B's
favorable loss history of zero losses over the past three years.
III. CURRENT INSURANCE PROGRAM
Area B does not have general liability or workers' compensation coverage.
Page - 2
IV. EXPERIENCE AND LOSS DATA
Area B has not experienced any liability losses since inception, and does not have
workers' compensation exposure.
V. APPLICATION FEE AND DEPOSIT COMPUTATIONS
A. Application Fee:
Area B has paid an application fee of $1,000. This fee will be applied toward the
primary deposit if Area B is approved as a member or refunded if membership is
not approved.
B. General Liability Deposit:
The initial primary deposit covering the period February 1, 2007 through June 30,
2007 was prorated at $3,318, with an annual deposit of $7,963. The deposit was
established based upon a pro forma analysis of the Area B's claims history
covering the period July 1, 2004 to June 30, 2006.
VI. PHYSICAL INSPECTION AND COMMENTS
A. Administrative Office
Area B operates from the Area Coordinator's home office in addition to
temporary use of office space within its member agency facilities as needed.
VII. SUMMARY AND EVALUATION
It is the CALIFORNIA JPIA staff's conclusion that the highly favorable loss histories,
physical inspection, committed leadership, and interest expressed qualify Area B Disaster
Management for consideration for membership in the CALIFORNIA JPIA.
We also find that membership will benefit Area B by providing reliable and economical
coverage, and it will be advantageous to the CALIFORNIA JPIA by expanding its ability to
spread pooled losses and costs.
Page - 3
Page 1 of 1
DONALD WAGNER • •
From: Nady Maechling [NMaechli@SAN.LACITY.ORGj
Sent: Friday, July 23, 2004 12:18 PM
To: petersenk@accessduarte.com; david.oeffling@adelphia.net; Draftman3@aol.com; etseng@aol.com;
MEFinlay@aol.com; JGarcia@beverlyhills.org; dirklovett@caaprofessionals.com;
howard mortis@ci.pomona.ca.us; binman@ci.sierra-madre.ca.us; DArrula@ci.sierra-madre.ca.us;
dhilbrants@citymb.info; nmiller@citymb.info; Sdidier@citymb.info; Imoreno@cityofartesia.org;
mdadian@cityofartesia.org; BILL CROWE; DONALD WAGNER; citymanager@hiddenhillscity.org;
0 Landers@ lynwood. ca. us; grace _huizar@redondo.org; Jon_Emerson@redondo.org; sylvia.glazer@redondo.org;
LaurenR@rpv.com; MEstrada@rwglaw.com; JLopez@sogate.org
Cc: Joe Maturino; Karen Coca
Subject: COPIES OF LARAs SIGNED JPAs
Hello,
Attached please find copies of the signed Joint Powers Agreement of all the original 14 LARA members.
I hope everyone is having a nice summer.
Cheers,
Nady Maechling, LARA Lead Administrator`
Phone: (213) 473 - 8232'
FAX : (213) 473 - 8232
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST: Crit' RANCE
By. By:
Sue City. Clerk Dan Walker, Mayor
APPROVED AS TO FORM:
JOHN L. FELLOWS III
CITY ATTORNEY '
r
CARRY
CITY OF LOS
By: , By:
Vale ..Lynne Shaw,' President.
ofPubtic Works
Date:
APPROVED AS TO FORM:
ROCKARDJ.DELOADEL
City Attorney '
By: .
17
IN WITNESS WHEREOF, the-Parties.have executed this Agreement as of the.
Date and .year above set forth.
.ACKNOWLEDGED:
By: `
APPROVED AS TO FORM:
ro
By:
ATTEST:
J.CHAEL CAREY
City C
By:
Date:
APPROVED AS TO FORM:
ROCKARD ]: DGLGADIL
City Attorney
By
CTTX OFF SOUTHGATE
B ( XoXoclult Ruvalcaba, Mayor
CITY OF LOS
m
Valerie Lynne Shaw, President
Board of Public Works
IN WITNESS WHEREOF, The parties have executed this Agreement as of the
date and year above set forth. '
ATTEST:
NANCY S. SHOLLENBERGER
City Clerk .
APPROVED AS TO FORM:
CHARLES MARTIN
City Attorney
By:
ATTES
CHAEL' CAREY
t Clerk
By:.
Date:
APPROVED AS TO
ROCKARD J. DELL
City Attorney
By:
Assistant
Date:
CITY OF SIERRA MADRE
By: "
Tamara S. Gates
City Manager
CITY OF LOS
Valerie. Lynne Shaw
President, Board of Public
Works
0
u
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST:
By:��
Title: Ci" ty Clerk
APPROVED AS TO FORM:
2
District Counsel
ATTEST:
J. NIICI"IAEL CAkEY
City Clerk
0
Date:
APPROVED AS TO FORM:
ROCKARD J. DELGADILLO
City Attorney
Assistant
Date:
C
CIT
m
PKAW1.241. 46 7
�wAw
I-
�
Byj:
City Attorney
CITY OF LOS ANGELES
Valerie Lynne Shaw, President
Board of Public Works
IN WTTNPSWHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
CITY OF REDONDO BEACH
7
Mayor
APPROVED AS TO FORM: ATTEST:
b3S ttorney ty Cl rk
ATTEST:
\7. MICHAEL CAREY
City Clerk > CTIY OF LOS ALES
By:
Date: _
APPROVED AS TO
ROCKARD J. DEL
Cy
City Attorney
Assistant
Date:
0
17
Lynne Shaw, Pr
of Public Works'
CO2 -17g
IN WITNESS WHEREOF, the Parties have. executed this Agreement as of the
date and year above set forth:
ATTEST: CITY OF Rancho Palos Verdes
By: C�sno2.�..�. �� P� _ By:
City*Clerk Maydr
APPROVED AS TO FORM:
By:
District Counsel
ATTEST:
J. CHAEL CAREY
City
By:
Date:
APPROVED AS TO
ROCKARD J. DFk>;
City Attorney
Date:
CITYXLOS ANGELES
Valerie Lynne Shaw, P.
Board of Public Works
V
0
IN WITNESS WHEREOF, the Panics have executed this Agreement as of the
date and year above set forth.
`ATTEST:
By:
4
city
APPROVED AS TO FORM:
By: By:
District Counsel city. y,
J. M
City
By- _
Date:
W.
APPROVED AS ,ORM:
RO .DELGADILLO
By:
Assistant
Date -
1
l7
CITY OF LOS
Valerie Lynne Shaw, President
Board of Public Works
0
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date -and year above set forth.
ATTEST: CITY OF � 13eA�
By: !/! By: J
APPROVED AS TO FORM:
IM
0
ATTEST:.
ICAEL CAREY
City rk CITY OF LOS
a
Date:
APPROVED AS TO
ROCKARDJ.D
City Attome
Assistant
Date:
M
s Lynne Shaw, President
of Public Works
PASSAPPROVED AND ADOPTED this -,�Ay of
Sep=ber 2002.-
ATTEST:
002.
ATTEST:
ANDREA L. HOOPER, City Clerk
City of Lynwood
APPROVED AS TO FORM:
City Aiforney r
STATE OF CALIFORNIA, }
) ss.
COUNTY OF LOS ANGELES )
ARTURO REYES, Wyor
City of Lynwood
APPROVED AS TO CONTENT:
Faustt onzal
City anager
J eph Y. ng, .E.
hector of Environmental Services/
City Engineer
I, the undersigned,, City Clerk of the City of Lynwood, do hereby certify that the above
and foregoing resolution was duty adopted by the City Council of the City of Lynwood at a
regular meeting held in the City Hall of said City on the 17th day of September
JIM, and passed by the following vote: .
AYES: COUNCIWtN BYRD, PEDROZA, RICHARDS, ROORIGUEZ, REYES
NOES: NONE
ABSENT: NONE
/�-
City Clerk, City of Lynwood
IN WITNESS WHEREOF, the Patties have executed this Agreement as of the
date and year above set forth.
ATTEST: CAITYOF
By: e By:
APPROVED AS TO FORM:
Bv:
District Counsel
ATTEST:
I. WCHA
City Clerk
By:
Date:
APPROVED AS TO
ROCKARDI. G.
City Attotn
Assistant
Date:
CITY OF JZS ANGELES
By:
Valerie Lynne Shaw, President
Board of Public Works
rN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST:
By: 14-
ATTF,ST-
J. MICHAEL CAREY .
City Clerk
CITY OF: DUARTE
By: City Manager
CITY OF LOS ANGELES
By: -By:
Valerie Lynne Shaw, President
Board of Public Works
Dater
APPROVED AS TO FORM:
ROCKARD J..DELGADILLO
City Attorney
By:
Assistant
Date:
Printed on Recycled Content Paper
17
Adopted: October 8, 2002
CITY OF BEVERLY
unicipal Co rai
EE LDM
Mayor of the City of
Beverly Hills, CalifoC
ATTEST:
[�v (SEAL)
NIN WEBSTER
City Clerk
City Attomey
Approved as to (content:
I t •\ NLUNWAIUMMU .
cW
e0785\0001\708742.1 -2- 10/1/02
L'J
0
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST:
By
6.c—
B W ARA BROWN
City Clerk
Date:
ATTEST:
J.=IerL
CAREY
City
Lm
Date:
APPROVED AS TO FORM//:
ROCKARD J, DELGAD 1 O
City Attorney ��
Date:
CI
CITY OF LOS
By: _
V
Lynne Shaw, President
of Public Works
IN WITNESS WHEREOF, the Parties have executed•this Agreement as of the
date and year above set forth.
ATTEST:
By. See Attachments
APPROVED AS TO rORM:
By: See Attachments
CITY OF: See Attachments
By:. See Attachments
ATTEST:
J. MICHAEL CAREY
City. ClerkC
OF LOS ANGELES
B
Valerie Lynne Shaw, President
Board of Public Works
—
{
4
APPROVED AS TO FORM:
ROCKARDJ.DELGADILLO
City Attorney
By.
Christoplifer M. Westhoff
Assistant City. Attorney
Date:
Printed on Recycled Content Paper
17
.......... ....._....
IN NNTMESS WHEREOF, the Pasties have. executed this Akreeauent as of the
date and year abase set forth.
,ATTEST: CITY OF: Sec Attachments
By: See Attachments By: See Attachments
APPROVED AS TO MILL
By: SeeSee 4tt�§
ATTEST:
J_ MICHAEL CARER
City Clerk
Dr G3 r
APPIZON'FI) AS TO )?omm:
ROCKARD. J. l:)Et.;G A.DI110
Cily Attorncy.
Christap °:.Af.1A esdu�fl
A�istartt City Attozile}°
Date: Ja! !l>�
CitI� (D LOS. AtitfELPS,
Valerie Lpme Shaw, President
Board of Public Wanks
Printed an Recycled Content Pglvr
17
IN VnTNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST:
By:u>.
ADWARAID03—R40W-1�
City Clerk
Date: — p
ATTEST:
7.ri L.CAREY
City Cler
By:
Date:
APPROVED AS TO FORM-
ROCKARD J.. DELGAI7,Ik
City Attorney f
By:
Date:
Cl
B!
CITY OF LOS
By: ,
Lynne Shaw, President
of Public Works
Adopted: October 8, 2002
CITY IF BE HIt
unicipal Co ratio
ME IEE OLDMAI I
Mayor of the City of
Beverly Hills, Califogtia
ATTEST:
(SEAL)
NINX WE,BSTER
City Clerk
City Attorney
ApproVed as to content:
A
DAN N. WEBSTEl2
Deputy City'Manager/Operations
AID00,1(�
(tisk Manager
tnzas^4a 3x4�aa;aa.t -2- 10/1`02
• 0.
IN '%gTNES5 WHEREOF, the I'ariies have executed flus Agreement as of the
date and year above set forth.
A'[ rFST: CFI'Y OF: DUARTE
By: �. C. ��� By: Cit lfanancr
vk
ATTEST:
J. MICHAEI, CARE'Y
City Clerk
By:
Date:'
APPROVED AS TO I+ORM:
ROCKARD J. DELGADILLO
City Attorney
Assistant
Bate:
CrrY'OF LOS ANGELES
Valerie Lynne Shaw, President
Board of Public Works
Frirted on Recycled Content Paper
17
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
AT rEST: CAITYOF
Fay:
,ALPPROV ED AS TO FORM:
By:
District Counsel
I. MICIIA]
City Clerk
By. _....
Date
APPROVED AS TO
fly:
Date:
CrFY OFIA'S. ANvI E.8
Board of Public Works
•
L]
PASSED, APPROVED AND ADOPTED this ma, day of
ATTEST:
ANDREA L. HOOPER, City Clerk
City of Lynwood
APPROVED AS TO FORM:
city k orney
STATE OF CALIFORNIA }
j ss.
COUNTY OF LOS ANGELES )
ARTURO REYES, Wyor
City of Lynwood
APPROVED AS TO CONTENT:
Faustt onzat
City Aanager
J eph Y. �h� n
iraetor of Emrironmerctat Scrviou.1
City Engineer
I, the undersigned, City Clerk of the City of Lynwood, do hereby certity that lite above
and foregoing resolution was duty adopted by the City Council of the City of Lynwood at a
regularmeeting hold in the City Halt of said City on the _17th day of Setomber __,
1W, and passed by the following vote:
AYES: COUNCtLNAN DYRD, PEDR07A, R(CNARDS, RODRIGUEZ, REYES
NOES: NONE
ASSENT: MORE
City Clerk, City of.Lynwood
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
ATTEST: CITY O 'h�, t./; GR.>
By. By- _
APPROVED AS TO FORM:
ATTEST:
NICHAEEL CAREY
City r1krk
By:...,
bate:
APPROVED AS TO
ROCKARD I. 1? * U`
City Attorne
Assistant
Date:
C2"I`Y (7F LOS Ah'C'
By: _....... _ ._..— .
_eV' is Lynne Show, P.
al �' orks
4
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
"AT"TEST: CITY OI txhrxra
I
13y:Alw By:
city City wzger
APPROVED AS TO PC MI,
By:_ try :
�District Counsel
Date:
APPROVED AS' +ORM:
R,�?CLC'AI' . . ITLCAI)ILI.,O
By:
_.._..... _._
Assistant -
Cate.
CITY OF LOS
Board o' Public Works
IN WITNESS WIIF;REOF, the. Parties have. executed this Agreement as of the
date and year above sot forth:
ATTEST: CITY or, Rancho Palos Verdes
City lerk F1aydr.
APPROVED AS TO FORM:
IIy:
District Counsel
ATTEST:
J. CIIAEI, CAMPY
City
By
Iaale:
APPROVED AS TO FF . RI:
R(OCKARD 1. D Abiuo
City Attorney
By: --
Date:
CITY OF'U)S ANGELES
Valerie L, Shaw, I'
Board of Public Works
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date and year above set forth.
CITY OF REDONDO BEACH"
mayor.
APPROVED AS TO FORM: ATT>✓ST:
jyss'L"it�torney tyCyr
t r}
ATTEST:
J. MICHAEL CAREY
0
Date:
APPROVED AS TO 1
ROCKARD J. L)ELCI ,
City Attorney
By
Assistant
Date:
CITY OF., LOS
By:
V, ie Lynne Shaw, President
card of Public Works
17 CO2 -178
IN WITNESS WHEREOF, the Parties Have executed this Agreement as of the
date and year above set forth.
ATTF;ST: CITY O D
By By z
Title: City Clerk it e.
APFRO'4 FD AS TO FORM:
By:
District Counsel City Attorney
ATTEST:
J. MICHAEL CA'REY
City Clerk CITY OF LOS ANGELES
By: ......... ... _ By: ..........
�_.
Valerie Lynne Slvxw, President
Board of Public•W orl s
Dates
APPROVED AS TO FORM:
ROCKARD J. DELGADILLO
City Attorney
Assistant
Date
0
IN WITNESS WHEREOF, The Parties have executed this Agreement as of the
date and year above set forth.
ATTEST:
NANCY S. SIIOLLENBERGER
City Clerk
l
By: �<
D
Date: � �� Ci•?�_._.._.._...
APPROVED :AS TO I+OIUvI:
CHARDS MARTIN
City Attorney
By:
A'I'TZ,S
ICIIAI L CAl _y
Clerk
Thy:'.
Date:
APPROVED AST'O'FORRM::
ROCKARD I. DELGI; LC
City Attorney
By_ .... _..__..._._
Assistant.
Tate:
CITY OF SIERRA NIADRifi
By: '�
Tamara S. Gates
City Manager
CITY OF LOS
B
Valerie, Lynne Shaw
Provident, Board of Public
Work:
I
IN WrINESS WHEREOF, the Parties.have executed this Agreement as of the
Date and .year above set forth.
ACKNOWLEDGED -
By:
CZ4�Z
APPROVED AS TO FORM:
By.
AITEST.
J. mk(,'HAIiLCAK Y
City
By:
Date
APPROVED AS TO FORM:
ROCKAR.D J. DELGADILI
City Attorney
By: 0 -Z—
CITY OF SOUTH GA`I'T:
By.
Xochilt Ruvaleaba, Mayor
CITY OF LOS
By:
Jalede Lynne Shaw, President
Board of Public Works
ks
a
IN WITNESS WHEREOF, (lit Parties have executed this Agrecmcnt as of the
date and year above set forth.
ATTEST: CITY O PAN CE
By: _ a, ,,a _BY':
Slue l'iltrbera, City Cleel Dan Walker., Xdyor,.
APPROVED AS TO FO RAI:
J01Ri L. FELLOWS III
CITY ATT00Et
By;
A1't'ES"T:
1: 41CHAEL CARBY
Date:
APPROVED AS TO FORM:
ROCKARD J. DELGADlV
City Attorney /
By. f
CITY OF LOS
By:
Vat Lynne Shaw. President.
and c f Public Works
1.7
U
0
LAW OFFICES OF
COLLINS, COLLINS, MUIR & STEWART, LLP
KRISTINE L. OLSEN
kolsen@ccros/aw.com
July 23, 2004
nnarque@carlwarren.com
Mr. Richard Marque
CARL WARREN & COMPANY
Post Office Box 25180
Santa Ana, CA 92799-5180
1100 EL CENTRO STREET
POST OFFICE BOX 250
SOUTH PASADENA, CALIFORNIA 91030
(626) 2431100
FAX (626) 243-1111
Re: Rodriguez vs. City of Rosemead, et al.
Member City Rosemead
Carl Warren File # S 134995RQ
Claimant Julio A. Rodriguez
Date of Loss 02-01-03
Our File Number 15391
Dear Mr. Marque:
ORANGE COUNTY OFFICE
620 NEWPORT CENTER DRIVE,
SUITE 200
NEWPORT BEACH, CA 02090-0002
10401 910-4000
FAX 10481 710-4001
The purpose of this letter is to advise you that the Court has ordered this case to mediation.
Slip -and -fall by a 66 -year old male in rainwater at the Rosemead Community Center as he entered a
preschool classroom to pick up his granddaughter.
The Court held a case management status conference on July 22, 2004 and at that time ordered this
matter to mediation with a completion date of October 20, 2004. When the Court has selected a date
for the mediation, I will provide you with the same under separate cover.
Plaintiff has been served with discovery, but we have not yet received his responses. The Plaintiff's
deposition is set for August 5, 2004 and an independent medical examination has been set for
August 9, 2004.
ROMIID:ITEMPWATUSLTR M3 DOC
Mr. Richard Marque
July 26, 2004
Page 2
Should you have any comments or questions, please do not hesitate to contact me.
Very truly yours,
COLLINS, COLLINS, MUIR & STEWART, LLP
Dictated but not read to avoid delay
KRISTINE L. OLSEN
KLO:rdm
cc: Mr. John Bolin/CJPIA
John@cjpia.org
cc: Ms. Nancy Valderrama, City Clerk
CITY OF ROSEMEAD
nvalderrama@cityofrosemead.org
RDM 0:ITEA&MTUSLTR a] DCC
MAYOR:
JOEVASOUE2
MAYOR PRO TEM:
MARGARET CLARK
COUNCILMEMBERS:
JAY T. IMPERIAL
GARY A. TAYLOR
WILLIAM F ALARCON
0
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218 -
MEMORANDUM
TO: Y NANCY VALDERRAMA
MIKE BURBANK
BRAD JOHNSON
KAREN OGAWA
FROM: DONALD WAGNER
DATE: SEPTEMBER 25, 2003
RE: CHANGE IN WORKERS COMPENSATION CARRIER
Effective October 1, 2003 the City will become a member of the California Joint Powers
Insurance Authority's Workers Compensation Insurance Program. All claims that are filed prior
to that date will continue to be administered by the current carrier, State Fund. It should be
noted that all employees will continue to use Kaiser Permanente Medical Center in
Baldwin Park for work related injuries.
Attached are procedures that are to be used in processing claims. Also attached are contacts and
sample forms.
If you have any questions please call me or Jan.
WORKERS' COMPENSATION PROCEDURES
Department is to provide the Employee's Claim for Workers'
Compensation Benefits (DWC Form 1) to the injured employee within 24
hours of knowledge of injury. Employee is to complete Questions 1
through 8. The Department must complete Questions 9 through 13.
Questionl13 requires the date the Department received claim form from
employee. Jan Saavedra shall complete Questions 14 through 18.
Please note that State law requires the employer to give the DWC form to
the employee; however, there is no requirement that the employee return
it.
2. Supervisor is to complete the Supervisor's Report of Injury or Illness form.
In addition, retain witness names and other relevant information. Retain
defectives equipment if it contributed to the injury. If the injury is a result of
someone else's negligence (e.g. an auto accident), gather information on
the responsible party.
3. Department is to submit both the DWC and Supervisor's Report of Injury
forms to Jan Saavedra as soon as received from employee.
4. Jan Saavedra shall complete the Employer's Report of Occupational Injury
or Illness form (5020) within 5 days of knowledge of incident.
6. Jan Saavedra shall electronically submit form 5020 to De Ann Wagner,
Claim Examiner at Southern California Risk Management Associates, Inc
(SCRMA) within 5 days of knowledge of incident.
De Ann Wagner
Claim Examiner
SCRMA
909.608.7171 extension 300
909.608.7165 (fax)
deannw(a)scrma.com
7. Jan Saavedra shall fax the DWC and 5020 forms to De Ann Wagner at
909.608.7165 within 1 day of receipt of forms.
8. Notification of claim submitted shall be directed to Jan Saavedra.
klo. workers complw Irkers comp_procedures.doc 9124/2003 Page 1
0
WORKERS' COMPENSATION CONTACT LIST
California JPIA
Patricia A. France
Senior Risk Manager/Workers' Compensation
Manager
8081 Moody Street
La Palma, CA 90623
(562) 467-8707 (tel)
(562) 402-8692 (fax)
patPcipia.org
Southern California Risk Management Associates, Inc (SCRMA)
Linda L. Tomlinson
Account Manager
313 East Foothill Boulevard
Upland, CA 91786-3952 ,
(909) 608-7171 (tel)
(909) 308-7165 (fax)
lindat(aDscrma(o)com
Southern California Risk Management Associates, Inc (SCRMA)
De Ann Wagner
Claims Examiner
313 East Foothill Boulevard
Upland, CA 91786-3952
(909) 608-7171 extension 300 (tel)
(909) 308-7165 (fax)
deannw(a)scrma.com
klo: workers complworkers comp_procedures.doc 9/24/2003 Page 2
0 0
State of California
Department of Industrial Relations
DIVISION OF WORKERS' COMPENSATION
EMPLOYEE'S CLAIM FOR
WORKERS' COMPENSATION BENEFITS
If you are injured or become ill because of your job, you may be entitled
to workers' compensation benefits.
Complete the "Employee" section and give the form to your employer.
Keep the copy marked" Employee's Temporary Receipt" until you
receive the dated copy from your employer. You may call the Division
of Workers' Compensation at 1.800-736-7401 H you need help in filling
out this form or in obtaining your benefits. An explanation of workers'
compensation benefits is included on the back of this forth.
You should also have received a pamphlet from your employer
describing workers' compensation benefits and the procedures to obtain
them.
Any person who makes or purses to be made any knowingly false or
fraudulentmaterial statement or material representation for the
purpose of obtaining or denying workers' compensation benefits or
payments,ts guilty of a felony.
Employee: Empleado:
1. Name. Nombre. _
2. Home Address. Direction Residential.
3. City. Ciudad.'
4. Date of Injury. Fecha de Is lesion (accidents).
Estado de California
Departamento de Relacionees Industriales
DIVISION DE COMPENSACION AL TRABA-ADOR
PETICION DEL EMPLEADO PARA BENEFICIOS
DE COMPENSACION DEL TRABAJADOR
Si Ud. se ha lesionado o se he entermadc a causa de su trabajo, Ltd.
then derecho a recibir beneficios de compensation at trabatador.
Complete la section "Empleado"y entregue la forma a su empleador.
Ouedese con la Copia designada "Recibo Temporal del Empleado " hasta que
Ltd. reciba la tropia lechade de su empleador. Si Ud. necesita ayuda para
completer esta forma o para obtener sus beneficios, Ltd. puede hablar con
la Division de Compensation at Trabajador Ilamando at 1.800-736-7401. En
la parte de alras de esta forma se encuentra una explication de los
beneficios de compensation al trabajador.
Ud. lambi6n deberia haber recibido de su empleador un tolleto
describiendo los beneficios de compensation al trabajador lesionado
y los procedimientos para oblenerlos.
Today's Date. Feta de hay.
State. Estado. __ _ gyp. Codigo Postal. _
Time of Init/ Hors en qua ocurrio. ____a.m. ___ p.m.
5. Address and description of where injury happened. Direccionllugar donde ic�6 el accidents.
6. Describe injury and part of body affected. Describa la lesion y
7. Social Security Number. Nbmero de Segura, Social
8. Signature of employee. Firma del empleado.
Employer - complete this section and
Empleador - complete esta seccioni
9. Name of employer. Nombre del i
10. Address. Direction.
11. Date employer first kne/de
ur
12. Date claim form was prto
13. Date employer receiveOWOMm to
14. Name and address of insurarSO
de seguros. _
del
a copy immediately as a receipt.
to una Copia al empleado tomo recibo.
que el empleador supo por primera vez de la lesion o accidente.
tee. Fecha an que se le entrego at empleado la petition. —
cha en que el empleado devolvio le petition at empleador__
or adjusting agency. Nombre y direction de la compania de seguros o agencia administradora
15. Insurance P icy Number. EI numero de la poliza del Segura.
16. Signatu of employer representative. Firma del representante del empleador.
17. Title.
Employer: You are required to date this form and provide copies to your
insurer or claim administrator and to the employee, dependent or
representative who filed the claim within one working day of receipt of the
form from the employee.
SIGNING THIS FORM IS NOT AN ADMISSION OF LIABILITY
18. Telephone. Telefono.
Empleador: Se requiere que Ud. /eche esta forma y que provea copies a
su compania de seguros, adminislrador de reclamos, o dependientel
represenlante de reclamos y at empleado que hayan presentado esta
peticidn dentro del plazo de un dig habil desde e) momento de haber sido
recibida Is forma del empleado.
EL FIRMAR ESTA FORMA NO SIGNIFICA ADMISION DE
RESPONSABILIDAD
DWC Fwm 1(Rev 1194) EMPLOYER'S COPY/COPIA DEL EMPLEADOR - owe F. 1 (Rev 11 ,)
WORKERS' COMPENSATION BENEFITS
Medical Care. All medical care for your work injury or illness
will be paid for by your employer or employer's insurance
company. Medical benefits may include treatment by a doctor,
hospital services, physical therapy, lab tests, x-rays, and
medicines. Your employer or employer's insurance company
will pay the cost directly so you should never see a bill.
Payment for Lost Wages. If you can't work because of a job
injury or illness, you will receive "temporary disability" benefit
payments. The payments will stop when your doctor says you
are able to return to work. These benefits are tax-free.
Temporary.disability payments are two-thirds of your average
weekly pay, up to a maximum set by state law. Payments are
not made for the first three days you are off the job unless you
are hospitalized or cannot work for more than 14 days.
Payment for Permanent Disability. If the injury or illness
results in a permanent handicap, permanent disability benefit
payments will be paid after recovery. The amount of benefits
will depend on the type of injury, and your age and occupation.
Rehabilitation. If the injury or illness prevents you from
returning to the same type of job, you may qualify for
"vocational rehabilitation benefits". These benefits include
services to help you get back to work. If you qualify for
vocational rehabilitation, the costs will be paid by your employer
or employer's insurance company, up to a maximum set by
state law.
Death Benefits. If the injury or illness causes death, pay
may be made to relatives of household members who
financially dependent on the worker.
Disclosure of Medical Records. After you make cla for
workers' compensation benefits, your medical re r w I not
have the same privacy that people usually expect for
dical
records. Records of all medical treatment yo ave re
ived,
even for injuries or illnesses that are not cause your
rk,
may be read by a variety of people. If y d gree
to
voluntarily release medical records, they can sub oenaed"
and ordered to be released. A work co nsalion
judge
may "seal" (keep private) certainediecor if the worker
requests privacy. M
For More Information. If you el filling out this form, or
if you have questions about workers' mpensation benefits,
please call an Information and Assi ante Officer in the local
office of the Division of Workers' pensation. You may hear
recorded information aid a list dr local offices by calling this toll
free number' 1-800 6-7401. This is a free service of the
State of California.#Tou may also consult an attorney.
0
BENEFICIOS DE COMPENSACION AL TRABAJADOR
Cuidado Medico. Todd el cuidado medico por'su lesion o
enfermedad causada en el trabajo sera pagado por su
empleadodpatron o su Compania de seguros. Los beneficios
medicos pueden incluir tratamiento por un doctor, servicios de
hospital, fisioterapia, anslisis de laboratoric, rayos-x, y
medicamentos. Su empleador o la compania de seguros de su
empleador pagara directamente el costo, as! Lid. nunca fendra
que ver una cuenta.
Pago por Perdida de Sueldos. Si Lid. no puede trabajar
debido a una enfermedad o lesion causada en el trabajo, Ud.
recibir6 pagos de beneficio de "incapacidad temporal". Los
pagos se detendran cuando su medico indique que Ud. puede
volver a su trabajo. Estos beneficios son libres de impuestos.
Los pagos por incapacidad temporal on dostercios del
promedio de su pago semanal, hasta maximo asignado por
la ley del estado. No se e(ectua pa poi los fres pdmeros dias
que Ltd. esta incapacitado a me que Ud. este hospitalizado 0
no pueda trabajar por rn s de dias.
Pagos por Inc' apacida ermanante, Si los resultados de la
lesion o en) ermedad roducen un impedimento o incapacidad
permanente, se ouarin pagos de incapacidad permanente
despues de 2iltuperaci6n. -
Uitac16n. Si la lesion o enfermedad he impide a Ud.
at mismo trabajo, puede ser que Ud. cali(que para los
cios de rehabilitacion vocacional". Estos beneficios
n servicios para ayudado a que Ud. vuelva a trabajar. Si
lifica para rehabilitacion vocacional, los coslos seran
Is por su empleador o su compania de seguros, hasta un
),asignado por he ley del estado.
Beneficios de Muerte. Si la lesion o enfermedad resulta en
muerte, los pagos pueden ser efectuados a pahentes o a
miembros de la familia quienes dependen financieramente del
trabajador.
Revelacidn de Expedientes Medicos. Despues de que Ud.
efect0a un reclamo para beneficios de compensacion del
trabajador sus expediences medicos no lendran la misma
privacidad que la genie por to general espera de los
expedientes medicos. Un expediente de todos los tratamientos
medicos que Ud. haya recibido, inclusive de lesiones o
enfermedades que no hayan sido causadas por su trabajo,
pueden ser leidos por distintas personas. Si Ud. no esta de
acuerdo a entrega voluntariamenle los archivos medicos,
pueden ser ordenados en un "comparendo" (orden judicial) y
que ordenan su entrega. Un juez de compensaciones at
trabajador, puede "cerrar" (mantenidos en privado) clerics
expedientes medicos si el trabajador solicita privacidad.
Informacidn y Asistencia. Si Ud. necesita ayuda para
completar esta forma, o si Lid. tiene preguntas relacionadas con
sus beneficios, por favor pongase en contacto con un Oficial de
Information y Asistencia en la oficina local de la Division de
Compensecion al Trabajador. Ud. puede escuchar informacion
grabade y una lista de las oficinas locales llamando gratis al
nOmero: 1-800-736-7401. Este es un servicio gratis del Estado
de California. Lid. tambien puede consulter a un abogado.
0 0
Southern California Risk Management Associates, Inc.
SCRMA
313 E. Foothill Blvd., Upland, CA 91786-3952 - Telephone (909) 608-7171
CJPIA
Supervisor's Report of Injury or Illness
(Complete for All Employee -Reported Injuries)
Employer:
Department:
Name of injured employee:
Occupation:
Date of injury or illness:.
Was medical treatment offered? Yes
Nature of business:
Division/Locatio
Time: AM - Pr
No— Was treatment refu Yes _ No
Was employee given a claim form? Yes _ No _ Employee's Sature:
What type of medical treatment was given?
First aid
Hospitalization
Predesignated physician's name (attach form
Was employee required to leave work due to
Has employee returned to work? Yes
Name of person to whom the in fin
Timeliness of reporting: If
Paramedics _ ' Emergency room
Clinic Authorized _
1'
not reported immediately, why not?
Location where accident or explurl occurred:
Was the injury or exposure witnessed? Yes _ No _
WITNESS INFORMATION
Name:
Address:
City/State/Zip:
Telephone:
List property damage, if
Name:
Address:
City/State/Zip:
(continued on reverse)
Date last
yori s? -Yes _ No_
worked:
Date
returned:
No, still off work
irlprl"
not reported immediately, why not?
Location where accident or explurl occurred:
Was the injury or exposure witnessed? Yes _ No _
WITNESS INFORMATION
Name:
Address:
City/State/Zip:
Telephone:
List property damage, if
Name:
Address:
City/State/Zip:
(continued on reverse)
0
Body part injured (check all that apply and indicate left and/or right):
Head
Upper back
_ Finger (which?)
_
Face
Lower back
_ Upper leg
_
Eye
Arm
_ Lower leg
_
Neck
Wrist
_ Knee
Nature of injury or illness
_ Scrape
Burn
Cut
Sprain/strain
_
Puncture
Foreign body
_
Bruise ,_
Poisoning
0
Ankle
Foot
Toe (which?)
Other _
_ Fracture
_ Skin problem
_ Chemical -related problem _
Heat -related problem
What was employee doing at the time of injury or exposure?
Person, object or substance that directly injured
Check any of the following unsafe actions whit
=unsafe speed
Not au
Not authorized
Disregard of instructions
_ Lack of knowiedge/skill/training
_ Failure to use proper equipment
_ Inadequate protective gear
_ Carelessness
I know the injury occukon d
Unsafe 8goipment usage
Defective equipment/tools _
Inattention
Horseplay
Alcohol/drugs
Cold -related problem
Loss of consciousness
Respiratory. problem
Other _
Unsafe lifting
Unsafe position
Running/jumping
Poor housekeeping
Act of other
Physical handicap
Other
I have no specific knowledge that the injury occurred on duty.
What steps have b1ap"ntr recommended to prevent a
Supervisor's signature:
Please complete in tr a (type r if possible). Mail two copies to:
OSHA
State of California Southern California
Case No.
Risk Management Associates, Inc.
EMPLOYER'S REPORT
OF OCCUPATIONAL 313 East Foothill Blvd., Upland, CA 91756-3952
INJURY OR ILLNESS (909) 60S-7171 Fax: (909) 60S-7165
❑ Fatality
NOTICE: California law requires employers to report within five days of knowledge every occupational injury or illness
which results in lost time beyond the dale of the incident o R requires medical treatment beyond first aid. If an employee
subsequently dies as a result of a previously reported injury or illness, the employer must file within five days of knowledoe
an amended report indicating death. In addition, every serious injurylillness or death must be reported immediatelyby
_ telephone or telegraph to the nearest office of the California Division of Occupational Safety and Health.
IA. POLICY NUMBER DO NOT USE
1. FIRM NAME THIS COLUMN
E 2A. PHONE NUM ER Case No.
M 2. MAILING ADDRESS (Number street, City and Zip) _
P 3A. LOCATION CODE Ownership
L 3. LOCATION. IF DIFFERENT FROM MAILING ADDRESS (Number, Street, City and Zip) -
O
Y
4. NATURE OF BUSINESS, e.g., painting wmractoc wholesale Grocer, sawmill, hotel, etc.
5. STATE UNEMPLOYMENT INSURANCE ACCT. N0. Industry
E
R
occupation
6. TYPE OF EMPLOYER
❑ PRIVATE 1-1STATE ❑ CITY [:1COUNTY ❑ SCHOOL DIST. ❑ OTHER GOVERNMENT -SPECIFY
7. DATE OF INJURY OR ONSET OF ILLNESS 6. TIME INJURYIILmILNESS OCCURRED 9. TIME EMPLOYE GAN WORK .(mEMPLOYEE DIED. DATE OF DEATH Sex
mlmyy)
pnmltldlYY) A.M. P.M. P.M.
WORK,
11. UNABLE TO WORK FOR AT LEAST ONE FULL DAV 12, DATE LAST WORKED (mmlddlyy) ;m. YY) ETU NED TO WORK 1A, IF CHECK TIF I 60X
ED
AFTER DATE OF INJURY? El YES 1:1 NO
15. PAID FULL WAGES FOR DAV OF INJURY 16. SALARY BEING CONTINUED? 17. D 'E OF EMPL E 5 KNO LEDGEINOTICE 16. DATE EMPLOYEE WAS PROVIDED Daily hours
RYALLNESS EMPLOYEE CLAIM FORM
I
OF IN
OR LAST DAY WORKED? ❑ YES ❑ NO ❑ YES ❑ NO (mraid ry) annuch lyy)
N
J
19. SPECIFIC INJURYIILLNESS AND PART OF BODY AFFECTED. MEDICAL DIAGNOSIS. If affable, e.g.. s degree burns on right arm, tendonitis of len elbow, lead poisoning. Days per wee:
R21.
20. LOCATION WHERE EVENT OR EXPOSURE OCCURRED (Number. She d Ci 2DA, CUNT ON EMPLOYER'S PREMISES? Weekly Hours
❑vE5 ❑No
Y
22. DEPARTMENT WHERE EVENT OR EXPOSURE OCCURRED, e.g., sh ping immenl, machine shop.
THfB EVEN 1 THER WORKERS INJUREWILL IN Weekly wage
❑ YES ❑ NO
R
24, EQUIPMENT, MATERIALS AND CHEMICALS THE EMPLOYEE USING WH EVENT OR EXPOSURE OCCURRED, e.g., acetylene, welding lurch, farm Irpclor, swllold. County
I
25, SPECIFIC ACTIVITY THE EMPLOYEE WA5 PERFORMING E -V 'TOR EXPOSURE OCCURRED, e.g., welding seams of mNal forms, loading boxes onto Wck. Nature Winnery
L26.
HOW INJURYIILLNESS OCCURRED. DESCRIBE 5
-NCE F EVENTS. SPECIFY OBJECT OR EXPOSURE WHICH DIRECTLY PRODUCED THE INJURYIILLNESS. Pan of body
fresh and bumed right hand. USE SEPARATE SHEET IF NECESSARY.
as worker prepped back to inspect walk and ped an ,
a nor As he fall, he brushed against weld,
N
Sunni
E
S
$ q2] NAME AND ADDRE550f PHY51GIF �"Str Ctya,ia Zlp) £'� § Y»*x e2r� g'* ?��rrq!:'kktj+`k"`-`.-<�y�y"?L2�l,A PHONE NUMB R rb SK§�"r '�1.,Y Event
EI e`si*'p^"Y•, J�t�' 1i'J.°a' 'y -#�Tt£ tt" Sei ~�Ew$ ' "3. jp. i
f(t!
s Tom" S' v k� .
294H0 PITALI2 OASANOUTyy?vvATIEn T,pp1''OVERN T'+„yt �'"-T�'' -mak"£` r �."}arry.ry>F'}28A PHONE NUM2ERyyf,Fy;� Sec. Source
jIFAyE�S THEN IMAM AND ADORE550 HO NLp(N ¢b StAe�etAC yy dZplr. ak �"' o ssPar # 'ST .4[2g EMP,LOYEEITRFATEDIINEMERGENCY�I Enentolmjury
Ws't,.'c'®'YESvi❑NO
ATTENTION This form can s information relating to employee health and must be used in a manner that protects the confidentiality of employees to the extent possible while the information
is being used for asepal safety and health purpose.. See CCR Title B 14300 29(b)(2)(E)1
NOTE: Shaded boxes in a confidential employee information as listed in CCR Title 6 1430035(b)(2)(E)2�'.c �;
°30k MPLOry.Y„ECENAMErre YrrTi•"aPa3q„wt;'2 'NyLy"'1�hvy S31 SIJ{CSIT�CSiFY";"N"'4•'x`.+Y i�'I r3(3 F�ERTH 11f YYt;
I
�b'vf'�"�`h..a
.k JwTY
33 HOM FDS 55 (Numam Snect�Crly an'd Ztp)" t<'.d� 5',rq.till33HON NUMr6 R Y r
M JL' i aittt+::�
�v
'1'tL�Ti`''>f r�B'�7.' R.'
��'�w..,
P 1 610AT O HIRE
134 SEX u � 35. OGCUPFTION Leitch title NO mnials, abbreviations or numbers)
L}�
,r,n '1
nrer.wha>:class .v.e
yo ,
O MAIEz O FEMALE
(yny9,❑ ; of Policy
37A. EMPLOYMENT STATUS (check applice Me status a1 time of Injury) 319. Under what class code of your policy
Y 37 EMPLOYEE USUALLY WORKS
hours days total 'cm we .,Signed,
❑ ❑ ❑ temporary ❑seasonal
E per day - per week _ weekly hours reqular lull -lime pan -time
E 36. GROSS WAGESISALARY 39. OTHER PAYMENTS NOT REPORTED AS WAGES/SALARY (c.9., rips. meals, lodging, overtime, bonuses, etc),
❑
❑ YES. S per NO
S oer
'Confidential intdrmenon may be disclosed only to the employee, former employee, or their personal representative (CCR Title 6 143DD.35), to others for the purpose of processing a workers' compenpalion or
to a consultant hired by the employer (CCR Title 5 14300.30). CCR Title B A0304D requires provision
other insurance claim: and under certain i rcumstances to a public health or taw enforcement agency or
upon request to certain stale and federal workplace salery agencies.
Completed by (type qr print)
Signature
Title Date OnmladlyY)
FORM 5020 (REV. 7)
June 2002 FILING OF -THIS REPORT IS NOT AN ADMISSION OF LIABILITY
E
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: KfILL CROWE, CITY MANAC
DATE: JULY 29, 2003
RE: RESOLUTION NO. 2003-27 TO AUTHORIZE AND APPROVE SELF-
INSURANCE OF WORKERS COMPENSATION FOR IT'S EMPLOYEES
THROUGH THE SELF-INSURANCE AND LOSS POOLING PROGRAM
OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
Attached for your consideration is Resolution No. 2003-27, authorizing the City's participation
in the California Joint Powers Insurance Authority's (CJPIA) Workers Compensation Program.
At the present, the City only participates in the Authority's liability insurance program. Our
current workers compensation carrier is State Compensation Insurance Fund.
The actual workers compensation expenditures for the 2002-03 budget year was $228,067. This
year's budget includes $359,289 for workers compensation coverage. At the budget study
session in June, staff indicated that we would look into the cost of participating in the CJPIA's
Workers Compensation Program. Per the attached letter dated July 22, 2003, the annual deposit
for the City's participation in the CJPIA Program is $61,162. The estimated annual premium
quoted by the State Compensation Insurance Fund in their letter dated July 3, 2003, was
$284,909.
The CJPIA quote is based on the City participating in the $50,000 retention pool. The program's
cost allocation formula, which is similar to the liability program, is as follows:
$0 to $50,000 Charged directly to the City's annual deposit
$50,001 to $100,000 Pooled based on member's share of costs under
$50,000
$100,001 to $2,000,000 Pooled based on payroll
over $2,000,000 Transferred to the excess insurance carrier
COUNCIL AGENDA
AUG 12 2003
ITEM N-
0 0
Pagetwo
Resolution No. 2003-27 California
Joint Powers Insurance Authority
Workers Compensation Program
The $61,162 annual deposit includes $1,281 for the excess pool deposit.
In addition to Resolution No. 2003-27, the CJPIA requires that the Council adopt Resolution
No. 2003- 28, Providing Worker's Compensation Coverage for City volunteers.
Staff is recommending that the Council authorize membership in the program effective October
1, 2003. This will provide staff with sufficient time to process the resolutions, apply for a Public
Entity Certificate of Consent to Self Insure with the Department of Industrial Relations, and brief
employee supervisors on the new program. Since the effective date of the program will be
October 1, 2003, the first year's actual deposit will be $45,872. The State Fund premium for the
first quarter would be $88,445 for a potential savings of $224,972 for fiscal year 2003-04.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2003-27 to Authorize and
Approve Self Insurance of Workers Compensation for its Employees through the Self Insurance
and Loss Pooling Program of California Joint Powers Insurance Authority effective October 1,
2003.
r jpiaworkrscomp
RESOLUTION NO._ 2003-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, TO AUTHORIZE AND APPROVE SELF-
INSURANCE OF WORKERS' COMPENSATION FOR ITS EMPLOYEES
THROUGH THE SELF-INSURANCE AND LOSS POOLING PROGRAM
OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, HEREBY DOES
FIND AND RESOLVE AS FOLLOWS:
WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Section
990.4 and 990.8 of the California Government Code, the CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY was created in 1977; and
WHEREAS, the City of Rosemead has become a member of CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY, and also of its General Liability Program; and
WHEREAS, CALIFORNIA JOINT POWERS INSURANCE AUTHORITY has established
and administered a successful Workers' Compensation Self-insurance and Loss Polling
Program for its members since January 1,1980; and
WHEREAS, there are significant financial and administrative advantages for the
City of Rosemead to provide workers' compensation coverage for its employees
through the said Self-insurance and Loss Pooling Program of CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:
Section 1. Workers' compensation coverage for employees of the City of
Rosemead through the Workers' Compensation Self-insurance and Loss Pooling
Program of CALIFORNIA JOINT POWERS INSURANCE AUTHORITY is hereby authorized and
directed effective October 1, 2003.
Section 2. The City Manager of the City of Rosemead is authorized and
directed to apply to the Department of Industrial Relations for a Certificate of Consent
to Self -insure, and to take such other actions as be necessary to effectuate self-insurance
of workers' compensation for City employees.
Section 3. That an Initial Annual Workers' Compensation Deposit of $61,162,
or such pro -rata part thereof as the Authority might determine for coverage of less than
a fiscal period, is approved and the appropriate officers of the City are authorized to
pay the same to the CALIFORNIA JPIA.
Section 4. That a Loss Retention level of $50,000 per occurrence is approved
for all employees.
Section 5. That the Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Resolution, and thereupon the same shall take effect and
be in force.
Section 6. That the City Clerk is directed to forward a certified copy of this
Resolution to CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, 8081 Moody Street, La
Palma, California 90623.
PASSED AND APPROVED by the City Council of the City of Rosemead this
day of 2003 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor, City of Rosemead
ATTEST:
City Clerk
I hereby certify, under the penalty of perjury, that the above and foregoing is a true and
correct copy of Resolution No. 2003-27 as adopted by the City Council of the City of
Rosemead, on the day of - 2003.
CALIFORNIA
A
1978 -2003
Silver Anniversary
July 22, 2003
Donald Wagner
Assistant City Manager
City of Rosemead
8838 E. Valley Boulevard
Rosemead, CA 91770
Re: California JPIA Workers' Compensation Program
Dear Don,
Celebrating
years of service
to California
local governments
Thank you for. forwarding the City:of Rosemead's.workers' compensation loss
data. Based on that data, the annual primary deposit for participation in the '
program .1
be $59;881; if the City-participates,in the,$50,000-retention pool.
In addition; the excess poolydeposit.is $1;281, a total of $61,162
The California JPIA'workers' compensation program handles all'claiins from the
first dollar without any deductible. The cost allocation formula is similar to that
used for the liability program. Costs up to $50,000 are charged directly to the
member's primary deposit. Costs from $50,000 to $100,000 are pooled based on
the member's share of costs under $50,000, and costs over $100,000 to $2,000,000
are pooled based on payroll. Costs in excess of $2,000,000 are transferred to an
excess insurance carrier. Administrative expenses are paid from California
JPIA's investment earnings.
It is important to note that the primary deposit is only an estimate of the
expected annual cost. If the City of Rosemead applies effective risk management
and loss control techniques, it may receive a retrospective refund (primary
deposit less the City's share of costs). Should the loss experience be worse, the
City would owe additional funds to the workers' compensation pool.
The City's excess pool deposit is $1,281. The excess pool was established due to
the current unpredictability in the excess and reinsurance markets and the -
tcurrent funding level of the Califomia JPIA's,workers, compensation program.
The'assessinent is 0.05% -of the payroll of Ttlie.pkticipatmg member. ,,
Should the City'of Rosemead decide to join the program, there are several items
to address prior to participation.
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
8081 MOODY STREET. LA PALMA. CA 90623 TEL(562)467-8700 FAX(562)860-4992
Donald Wagner
July 22, 2003
Page 2
1. The City Council must adopt a resolution declaring the city is self-insuring
and participating in the California JPIA workers' compensation program.
2. It is suggested that the City Council adopt a resolution to include volunteers
in the workers' compensation program. This would make workers'
compensation the exclusive remedy and should protect the city from potential
civil action taken by volunteers.
3. The attached Application for a.Public Entity Certificate of Consent to Self
ol
Insure and the resutions should be completed and sent to:
Department of Industrial Relations
Self -Insurance Plans
2265 Watt Avenue
Sacramento, CA 95825
The Department will approve the Application and issue a Certificate.
Copies of the Application and sample resolutions are attached. They may also be
downloaded from the California JPIA website, www.cjpia.org.
Please call if you need further assistance.
Sincerely,
Patricia A. France, AIC, ARM, CPDM
Senior Risk Manager/Workers' Compensation Manager
Attachment:
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STATE
COMPENSATION
INS U R A N C E
.FUND
TERMS OF INSURANCE
CITY OF ROSEMEAD
PO BOX 399
ROSEMEAD CA 91770
July 3. 2003
Policy: 228962-2003
Dear Policyholder:
E
Enclosed is the renewal quote effective July I, 2003, with State Fund.
qeECEIVED
CITY OF ROSEMEAD
JUL 0 8 2003
CITY CLERK'S OFFICE
California workers' compensation insurance provides coverage for workers' compensation
losses related to acts of terrorism. You should know that effective November 26, 2002, any
losses caused by certified acts of terrorism would be partially reimbursed by the United States
under a formula established by federal law. Under this formula, the United States pays 90% of
covered terrorism losses exceeding the statutorily established deductible paid by the insurance
company providing the coverage. There is currently no charge in State Compensation Insurance
Fund rates related to the risk of loss due to terrorism.
This policy will automatically renew unless we hear from you otherwise.
If you choose not to renew this account with State Fund, please notify us immediately in
writing. Your notification should include:
. The name and policy number of the account;
• The date that coverage is being replaced;
• The name of the new carrier; and
The signature of the authorized broker/agent who originally placed the account with State
Fund.
We look forward to continuing our service of your workers' compensation needs. Please call us
if you have any questions.
Sincerely,
James Safarian
Paee t of I
Fund
Date
11
STATE
COMPENSATION
I N S U R A N C E
FUND
Applicant Name: CITY OF ROSEMEAD
F
Applicant's
This document does not provide insurance QUOTE
Estimate of Annual Premium
Applicant
412,31£
Name:
CITY OF ROSEMEAD
Address:
PO BOX 399
Rating Plan Modifier
ROSEMEAD, CA 91770
Phone:
(626) 286-6671
Fax:
0.82627
Contact:
0.6841`_
Renewal Quote ID: 857581 BK
Eff Date: 7/1/2003 ARD: 7/1/201)4 Exp Date: 7/1/2004 Prepared: VW003
Employers Liability Limits: 1.000.000 Health Provider: Kaiser
Base Premium
412,31£
Experience Modifier
. 1.01
Standard Premium
416,442
Rating Plan Modifier
0.8280E
Estimated Modified Premium
344,814
Estimated Premium Discount Credit Factor'
0.82627
Interim Billing Factor-
0.6841`_
Estimated Annual Premium
Minimum Premium
State Fund Representative: James Safarian
Phone: (213)479-5315 ext.
Paee 1 of 2
STATE
Applicant's
COMPENSATION
I N S U R A N C E This document does not provide insurance
QUOTE
FUND
Applicant Name: CITY OF ROSEMEAD
Renewal Quote ID: 857581
BK
Class
Base
Estimated
Base
Interim
Billing
Code DescriptionRate
Payroll
Premium
Rate
77211 Detective or Patrol Agencies
18.89
0
0
12.92
88101 Clerical Office Employees
2.44
405.992
9.906
1.67
G 94101 Municipal or County Employees
10.79
1,731.308
186.808
Z38
94201 All Other Municipal or County Employees-NOC
27.69
778,636
215.604
18.94
'Premium Discount: Modified Premium is discounted according to the following schedule.
First $2,500- 0.0%
Above $2,500 - 17.5
This quote is based on information provided to State Fund.
Your experience modification will apply to these interim billing rates.
Interim billing rates shown in this quote will be used on payroll reports. They take into account rating plan credits (or debits) which
will apply at final billing and an estimate of your premium discount as detailed above. The actual discount applied at final billing will
be based on the actual payroll reported on your policy and subject to audit.
Page 2 of 2
0
STATE FUND -KAISER PERMANENTE
Group # (if any)
Business Name
Address
S,ren
0
STATE FUND~KAISER PERMANENT
EMPLOYER AGREEMENT
Policy/Unit #
Policy Year
Phone
Cir
51 zip
Total Number of Employees How Many Full Time? How Many Part Time? How Many Seasonal?
IMPORTANT --Please read and sign below. I
The undersigned policyholder:
1. Confirms that health insurance is offered to a majority of eligible employees; there are at least two
employees; and at least 50 percent of the health plan premium is paid by the employer.
2. Agrees to refer all work-related injuries to a Kaiser Permanente Occupational Health Center
unless the injured worker has pre -designated in writing a physician for all work-related injuries.
3. Agrees to provide State Fund with a copy of the company's early return to work program or to
work with State Fund to develop and implement such a program within 90 days of policy
inception.
4. Understands the State Fund Alliance program may not be available statewide.
s Confirms that the physical location of his/her operations is within a Kaiser Permanente Service
Area.
6. Understands this agreement will continue in effect until revoked, in writing, by the policyholder
or State Fund.
7. Understands that all requirements must be met on an annual basis.
8. Understands that failure to meet the terms of this agreement may result in elimination of the
- discount effective retroactively to policy inception.
Print AantelTitle Signature Date
For State Fund Use Only.
Early Return to Work Consultant visit Requested ❑ Early Return to Work Plan Attached ❑
Writing District
NAD
Servicing District
REP CODE
Rating Record: 2941 01 .90000 EFFD
2941 02 .90000 EFFD
EAP $ BROKERED ACCT ❑
Endorsement: 2429 01
Within Ott hours of receipt of form:
FAX copies of this form to Servicing DO MCL & ERTW Consultant if Writing DO and Servicing DO differ.
cc: 1. Medical Community Liaison, District Claims 4. District Underwriter
2. ERTW Consultant, District Claims 5. Loss Control Representative
3. Home Office Marketing
13771r (Re,. (14101) ORIGINAL'to POLIC)' FILE YELLOW COPYTO EMPLOYER LINK COPY BROKER
1V
MAYOR:'
JOE VASOUEZ
MAYOR PRO TEM:
MARGARETCLARK
COUNCILMEMBERS:
JAY T. IMPERIAL
GARY A. TAYLOR
WILLIAM F ALARCON
9
August 21, 2003
State of California
Department of Industrial Relations
Self Insurance Plans
2265 Watt Avenue, Suite I
Sacramento, CA 95825
0
osemead
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
Re: Application for a Public Entity Certificate of Consent to Self Insure
To Whom it May Concern:
Attached is an application for a Public Entity Certificate of Consent to Self Insure. We are
currently insured with State Compensation Insurance Fund, policy #228962-03. The policy
expiration date is October 1, 2003.
If you have any questions, please call me at (626) 569-2102.
Sincerely
nald J finer
Assistan City anager
State of California sE>� o, ,h Page I
Department of Industrial Relations " e
Self Insurance Plans
2265 Watt Avenue, Suite 1 Ab o
Sacramento, CA 95825
Phone (916) 483-3392
FAX (916) 483-1535 Our File:
APPLICATION FOR A PUBLIC ENTITY
CERTIFICATE OF CONSENT TO SELF INSURE
NOTE: All questions must be answered. If not applicable, enter "N/A".
Workers' compensation insurance must be maintained until certificate is effective.
APPLICANT INFORMATION
Legal Name of Applicant (show exactly as on Charter or other official documents):
City of Rosemead
Street Address of Main Headquarters: -
8838 E. Valley Boulevard
Mailing Address (if different from above): Federal Tax ID No.:
P. O. Box 399 95-2079994
City: State: Zip +4:
Rosemead CA - 91770-0399
TO WHOM DO YOU WANT CORRESPONDENCE REGARDING THIS APPLICATION ADDRESSED?
Name: Donald J. Wagner
Assistant City Manager
Title:
City of Rosemead
Company Name:
8838 E. Valley Boulevard _
Mailing Address:
City:
Rosemead Slate: CA Zip + 4: 91770-0399
Type of Public Entity (check one):
® City and/or County ❑ School District ❑ Police and/or Fire District ❑ Hospital District ❑ Joint Powers Authority
❑ Other (describe):
Type of Application (check one):
® New Application ❑ Reapplication due to Merger or Unification ❑ Reapplication due to Name Change Only
❑ other (specify):
Date Self Insurance Program will begin:
Form No. A4-2 (2/92)
October 1, 2003
0
0
Page 2
CURRENT PROGRAM FOR WORKERS' COMPENSATION LIABILITIES
❑X Currently Insured with State Compensation Insurance Fund, Policy Number: #228962-03
Policy Expiration Date: to be cancelled 10/1/03 Yearly Premium: $ 284,909
Current Yearly Incurred (paid & unpaid) Losses: $ 10,97
❑ Currently Self Insured, Certificate Number
Name of Current Certificate Holder:
❑ Other (describe).
JOINT POWERS AUTHORITY
(FY or CY)
Will the applicant be a member of a workers' compensation Joint Powers Authority for the purpose of pooling workers
compensation liabilities?
IRIYes ❑ No if yes, then complete the following:
Effective date of JPA Membership: July 1, 2002 JPA Certificate No.: 5009
Name and Title of JPA Executive Officer:
Jonathan Shull, Executive Director
Name of Joint Powers .Authority Agency:
California Joint Powers Insurance Authority
Mailing Address of IPA:
8081 Moody Street
City: State: Zip +4:
La Palma CA 90623-2000
Telephone Number:! 562 1467-8700
PROPOSED CLAIMS ADMINISTRATOR
Who will be administering your agency's workers' compensation claims? (check one)
❑ IPA will administer, JPA Certificate No.:
X❑ Third party agency will administer, TPA Certificate No.: 129
❑ Public entity will self administer ❑ Insurance carrier will administer
Name of Individual Claims Administrator:
Linda Tomlinson
Name of Administrative Agency:
Southern California Risk Management Associates, Inc.
Mailing Address:
313 East Foothill Boulevard
City: State: Zip + 4:
Upland CA 91786
Telephone Number:.( 909 ) 608-7171 FAX Number: ( 909 ) 608-7165
�J
0
Page 3
Number of claims reporting locations to be used to handle the agency's claims: One
Rill all agency claims be handled by the administrator listed on previous page? El Yes ❑ No
AGENCY EMPLOYMENT
Current Number of Agency Employees: 37 full time and 90 part time
Number of Public Safety Officers (law enforcement, police or fire): N/A
If a school district, number of certificated employees:
Will all agency employees be included in this self insurance program? ❑ Yes ❑ No
If no, explain who is not included and how workers' compensation coverage is to be provided to the excluded
agency employees:
INJURY AND ILLNESS PREVENTION PROGRAM
Does the agency have a written Injury and Illness Prevention Program? ❑X Yes ❑ No
Individual responsible for agency Injury and Illness Prevention Program:
Name and Title:
Donald J. Wagner
Company or Agency Name:
City of Rosemead.
Mailing Address:
8838 E. Valley Boulevard
City: State: Zip +4:
Rosemead CA 91770-0399
Telephone Number:..( 626 ) 569-2110
SUPPLEMENTAL COVERAGE
Will your self insurance program be supplemented by any insurance or pooled coverage under a standard
workers' compensation insurance policy? ❑ Yes 22], No
If yes, then complete the following:
Name of Carrier or Excess Pool:
Policy Number:
Effective Date of Coverage:
0 0
Page 4
Will your self insurance program be supplemented by any insurance or pooled coverage under a specific excess workers'
compensation insurance policy? X❑ yes ❑ No
If yes, then complete the following:
Name of Carrier or Excess Pooh CSAC Excess Insurance Authority
Policy Number: CREIA n9 FIAtr,._nF
Effective Date of Coverage:
07/01/02
Retention Limits: Statutory Limits Excess of $2,000,000
Will your self insurance program be supplemented by any insurance or pooled coverage under an aggregate excess (stop loss)
workers' compensation insurance policy? ❑ yes X❑ No
If yes, then complete the following:
Name of Carrier or Excess Pool:
Policy Number:
Effective Date of Coverage:
Retention Limits:
See Attached Resolution—Page 5
RESOLUTION OF GOVERNING BOARD
CERTIFICATION
The undersigned on behalf of the applicant hereby applies for a Certificate of Consent to Self Insure the payment of
workers' compensation liabilities pursuant to Labor Code Section 3700. The above information is submitted for the
purpose of procuring said Certificate from the Director of Industrial Relations, State of California. If the Certificate is
issued, the applicant agrees to comply with applicable California statutes and regulations pertaining to the payment of
compensation that may become due to the applicant's employees covered by the Certificate.
SireofAuthorized Offi 'al: Date: a, ")-13
Typed Name. .
Donald J. Wag er Seal
Title:
Assistant City Manager
Agency Name:
City of Rosemead
SHANNON HIDALGO
Cin 01301799
Notary Ptlbft- Califomin
90yCO M
(Emboss seal above or Notarize signature)
RESOLUTION NO. 2003-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, TO AUTHORIZE AND APPROVE SELF-
INSURANCE OF WORKERS' COMPENSATION FOR ITS EMPLOYEES
THROUGH THE SELF-INSURANCE AND LOSS POOLING PROGRAM
OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, HEREBY DOES
FIND AND RESOLVE AS FOLLOWS:
WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Section
990.4 and 990.8 of the California Government Code; the CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY was created in 1977; and
WHEREAS, the City of Rosemead has become a member of CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY, and also of its General Liabilitv Program; and
WHEREAS, CALIFORNIA JOINT POWERS INSURANCE AUTHORITY has established
and administered a successful Workers' Compensation Self-insurance and Loss Polling
Program for its members since January 1, 1980; and
WHEREAS, there are significant financial and administrative advantages for the
City of Rosemead to provide workers' compensation coverage for its employees
through the said Self-insurance and Loss Pooling Program of CALIFORNIA J01NT POWERS
INSURANCE AUTHORITY.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:
Section 1. Workers' compensation coverage for employees of the City of
Rosemead through the Workers' Compensation Self-insurance and Loss Pooling
Program of CALIFORNIA JOINT POWERS INSURANCE AUTHORITY is hereby authorized and
directed effective October.1, 2003.
Section 2. The City Manager of the City of Rosemead is authorized and
directed to apply to the Department of Industrial Relations for a Certificate of Consent
to Self -insure, and to take such other actions as be necessary to effectuate self-insurance
of workers' compensation for City employees.
Section 3. That an Initial Annual Workers' Compensation Deposit of $61,162,
or such pro -rata part thereof as the Authority might determine for coverage of less than
a fiscal period, is approved and the appropriate officers of the City are authorized to
pay the same to the CALIFORNIA JPIA.
Section 4. That a Loss Retention level of $50,000 per occurrence is approved
for all employees.
Section 5. That the Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Resolution, and thereupon the same shall take effect and
be in force.
Section 6. That the City Clerk is directed to forward a certified copy of this
Resolution to CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, 8081 Moody. Street, La
Palma, California 90623.
PASSED AND APPROVED by the City Council of the City of Rosemead this
day of io2 2003 by the following vote:
AYES: ALARCON, IMPERIAL, TAYLOR, CLARK, VASQUEZ
NOES: NONE
ABSENT: NONE
ABSTAIN:
NONE
City Clerk
I hereby certify, under the penalty of perjury, that the above and foregoing is a true and
correct copy of Resolution No. 2003-27 as adopted by the City Council of the City of
Rosemead, on the day of, 2003.
0
NANCY VALDERRAMA
From:
DONALD WAGNER
Sent:
Thursday, August 14, 2003 5:04 PM
To:
'pat@cjpia.org'
Cc:
BILL CROWE; KAREN OGAWA; NANCY VALDERRAMA
Subject:
Workers Compensation
Pat:
The certified copies of the resolutions are in the mail to you. First thing next week we will complete the application for a
public entity certificate of consent to self insure, let you review it, and send it and the resolutions to the Department of
Industrial Relations. If you have any questions please call me on Monday at 626.569.2102.
Don
�Y
Fax
To: Patricia France — CJPIA From: Nancy Valderrama, City Clerk
Fax: 562/402-8692 Pages: 6 plus cover page
Phone: 626 569-2171 Date: August 14, 2003
Re: Workers' Comp. Resolubons CC:
❑ FYI ❑ For Review ❑ Please Comment , ❑ Please Reply ❑ For Your Files
• Comments:
ROSEMEAD CITY HALL, 8838 E. VALLEY BLVD., ROSEMEAD, CA PH: 626/569-2171 FAX: 626/307-9218
MAYOR:
JOEVASOUEZ
MAYOR PRO TEM:
MARGARETCLARK
COUNCLLMEMBERS:
JAY T. IMPERIAL
GARY A. TAYLOR
WILLIAM F. ALARCON
1]
August 14, 2003
Patricia A. France
Senior Risk Manager
C.I.P.I.A.
8081 Moody Street
La Palma, CA 90623
Dear Ms. France:
0
�i l�C� � OSCSi2G&d
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218
At their regular meeting of August 12, 2003, the Rosemead Council adopted Resolutions 2003-
27, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, TO AUTHORIZE AND APPROVE SELF-INSURANCE OF WORKERS'
COMPENSATION FOR ITS EMPLOYEES THROUGH THE SELF-INSURANCE AND
LOSS POOLING PROGRAM OF CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY; and Resolution No. 2003-28, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ROSEMEAD, CALIFORNIA PROVIDING WORKERS' COMPENSATION
COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF
SECTION 3363.5 OF THE LABOR CODE. Attached are Resolutions 2003-27 and 2003-28.
If you have any questions, please give me a call at 626/569-2171.
Sincerely,
NANCY VALDERRAMA
City Clerk
City of Rosemead
Attch.
0
0
To: Patricia France — CJPIA From: Nancy Valderrama, City Clerk
Fax: 562/402-8692 Pages: 6 plus cover page
Phone: 626 569-2171 Date: August 14, 2003
Re: Workers' Comp. Resolutions CC:
❑ FYI ❑ For Review
• Comments:
❑ Please Comment ❑ Please Reply ❑ For Your Files
ROSEMEAD CITY HALL, 8838 E. VALLEY BLVD., ROSEMEAD, CA PH: 626/569-2171 FAX: 626/307-9218
MAYOR:
JOE VASOUEZ
MAYOR PRO TEM:
MARGARET CLARK
COUNCILMEMRERS:
JAY T. IMPERIAL
GARY A. TAYLOR
WILLIAM F ALARCON
5 E M E
0 1* ,
rt C, O
ACOA R&1Eo`�,
Auaust 14, 2003
Patricia A. France
Senior Risk Manager
C.J.P.LA.
8081 Moody Street
La Palma, CA 90623
Dear Ms. France:
C
�i it oscmcad
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAD, CALIFORNIA 91770
TELEPHONE (626) 569-2100
FAX (626) 307-9218 -
At their regular meeting of August 12, 2003, the Rosemead Council adopted Resolutions 2003-
27, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, TO AUTHORIZE AND APPROVE SELF-INSURANCE OF WORKERS'
COMPENSATION FOR ITS EMPLOYEES THROUGH THE SELF-INSURANCE AND
LOSS POOLING PROGRAM OF CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY; and Resolution No. 2003-28, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ROSEMEAD, CALIFORNIA PROVIDING WORKERS' COMPENSATION
COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF
SECTION 3363.5 OF THE LABOR CODE. Attached are Resolutions 2003-27 and 2003-28.
If you have any questions, please give me a call at 626/569-2171.
Sincerely,
NANCY VALDERRAMA
City Clerk
City of Rosemead
Attch.
RESOLUTION NO. 2003-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, TO AUTHORIZE AND APPROVE SELF-
INSURANCE OF WORKERS' COMPENSATION FOR ITS EMPLOYEES
THROUGH THE SELF-INSURANCE AND LOSS POOLING PROGRAM
OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, HEREBY DOES
FIND AND RESOLVE AS FOLLOWS:
WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Section
990.4 and 990.8 of the California Government Code, the CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY was created in 1977; and
WHEREAS, the City of Rosemead has become a member of CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY, and also of its General Liability Program; and
WHEREAS, CALIFORNIA JOINT POWERS INSURANCE AUTHORITY has established
and administered a successful Workers' Compensation Self-insurance and Loss Polling
Program for its members since January 1,1980; and
WHEREAS, there are significant financial and administrative advantages for the
City of Rosemead to provide workers' compensation coverage for its employees
through the said Self-insurance and Loss Pooling Program of CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:
Section 1. Workers' compensation coverage for employees of the City of
Rosemead through the Workers' Compensation Self-insurance and Loss Pooling
Program of CALIFORNIA JOINT POWERS INSURANCE AUTHORITY is hereby authorized and
directed effective October 1, 2003.
Section 2. The City Manager of the City of Rosemead is authorized and
directed to apply to the Department of Industrial Relations for a Certificate of Consent
to Self -insure, and to take such other actions as be necessary to effectuate self-insurance
of workers' compensation for City employees.
Section 3. That an Initial Annual Workers' Compensation Deposit of $61,162,
or such pro -rata part thereof as the Authority might determine for coverage of less than
a fiscal period, is approved and the appropriate officers of the City are authorized to
0 0
pay the same to the CALIFORNIA JPIA.
Section 4. That a Loss Retention level of $50,000 per occurrence is approved
for all employees.
Section 5. That the Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Resolution, and thereupon the same shall take effect and
be in force.
Section 6. That the City Clerk is directed to forward a certified copy of this
Resolution to CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, 8081 Moody Street, La
Palma, California 90623.
PASSED AND APPROVED by the City Council of the City of Rosemead this
day of2003 by the following vote:
AYES: ALARCON, IMPERIAL, TAYLOR, CLARK, VASQUEZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
City Clerk
I hereby certify, under the penalty of perjury, that the above and foregoing is a true and
correct copy of Resolution No. 2003-27 as adopted by the City Council of the City of
Rosemead, on the /,�L_ day of 2003.
RESOLUTION NO. 2003-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, PROVIDING WORKERS'
COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS
PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR
CODE.
WHEREAS, the City of Rosemead finds its best interest will be served by
utilizing volunteers in the provision of certain government services; and
WHEREAS, said volunteers should be eligible for workers' compensation
coverage while on duty;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Rosemead does hereby:
1. Find and determine that the public interest in best served by providing
workers' compensation coverage for City volunteer workers as specified by the City
Manager; and
2. Provide eligibility for said volunteers for workers' compensation benefits
which will be applicable during the time the person actually performs volunteer
services, provided, however, that the rights of volunteers shall be limited as set forth in
the Labor Code.
PASSED, APPROVED AND ADOPTED THIS day of �� , 2003
ATTEST:
City C erk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF ROSEMEAD
I, Nancy Valderrama, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2003-28 being:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, PROVIDING WORKERS' COMPENSATION COVERAGE FOR
CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION
3363.5 OF THE LABOR CODE
was duly adopted at a Regular Meeting of the City Council on the 12'h day of August,
2003, by the following vote to wit:
YES: ALARCON, CLARK, VASQUEZ, IMPERIAL, TAYLOR
NO: NONE
ABSTAIN: NONE
ABSENT: NONE
-
NANCY VALDERRAMA, CITY CLERK
AGEND.A:CERTIFY
To:
From:
Date:
Subject:
CALIFORNIA .IPIA
MEMORANDUM
California JPIA Risk Managers
Jonathan Shull, Chief Executive Officer
August 7, 2008
Certificates of Protection for July 1, 2008 — June 30, 2009
AUG(1 1 2808 !J
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Enclosed is your agency's Certificate of Liability Protection for the 2008-2009 coverage period
and, if applicable, your agency's Certificate of Workers' Compensation Protection for the same
coverage period.
In the next few weeks, your agency's Manager/Chief Executive Officer, California JPIA
Director, and Risk Manager will receive additional coverage information by either mail or email.
The Memorandum of Liability Coverage and the Memorandum of Workers' Compensation
Coverage for the 2008-2009 coverage period will be issued. In addition, coverage summaries for
all of the programs available through the California JPIA will be made available. The Programs
include: General Liability, Workers' Compensation, Property, Pollution Legal Liability, Crime
Coverage, and Special Events.
Your agency will also receive the Joint Powers Agreement and Bylaws revised and adopted at
the annual Board of Directors meeting in July.
Please contact me at (562) 467-8787 or at jshull@cjpia.org if you have questions.
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CALIFORNIA JPIA
MEMORANDUM
To: California JPIA Risk Managers
From: Jonathan Shull, Executive Dire or
Date: July 11, 2006
Subject: Certificates of Coverage for July 1, 2006 — June 30, 2007
Enclosed is your agency's Certificate of Liability Protection for the 2006-2007 coverage
period and if applicable, your agency's Certificate of Workers' Compensation
Protection for the same coverage period.
In August a package will also be mailed to you, your City/ Town Manager or Executive
Director, and your agency's California JPIA Director. The package will include
coverage summaries of all of the programs available through the CALIFORNIA JPIA.
Programs include: General Liability, Workers' Compensation, Property, Pollution
Legal Liability, Blanket Fidelity Bond, and Special Events. The mailing will also include
the Liability Program's Memorandum of Coverage for the coverage period beginning
July 1, 2006.
Please contact me at (562) 467-8787 or at jon@cjpia.org if you have questions.
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JOINT POWERS AGREEMENT TO PROVIDE FOR INTER -AGENCY COOPERATION
IN MAJOR NATURAL OR MAN-MADE DISASTER
DISASTER MANAGEMENT AREA D
Los Angeles County Operational Area
WHEREAS, natural or man-made disasters such as earthquakes, fires, floods, civil unrest,
acts of terrorism or other physical manifestations may affect the peace, health, safety and general
welfare of large numbers of persons and extensive areas; and
WHEREAS, the State of California has adopted the Standardized Emergency Management
System ("SEMS") pursuant to Title 19, Division 2 of the State's Code of Regulations requiring all
local governments within a county geographic area to be organized into a single Operational Area;
WHEREAS, in accordance witn SEMS, the Board of Supervisors of the County of Los
Angeles established the Los Angeles County Operational Area ("Operational Area") on July 5,
1995, with the County of Los Angeles serving as the lead agency of the Los Angeles County
Operational Area; and
WHEREAS, to enable the Los Angeles County Operational Area to accomplish the
objectives of SEMS by promoting greater efficiencies in disaster management, planning, training,
and preparedness, it is essential to coordinate the efforts of the cities within the Los Angeles
County Operational Area; and
WHEREAS, such coordination can be accomplished by cooperative management,
planning, training, and preparedness action through responsible agencies prior to the time
disaster response is required; and
weadjpa.wpd 09/08/98
WHEREAS, there have been established Disaster Management Areas (previously known
as "Civil Defense Areas') within the Los Angeles County Operational Area, each having a Disaster
Management Area Coordinator who serves as a representative on the Operational Area Advisory
Board to facilitate communication between the cities and the Operational Area; and
WHEREAS, the parties to this Agreement are located within Disaster Management Area D
of the Los Angeles County Operational Area and, therefore, have mutual interests and objectives
to accomplish with reference to disaster management, planning, training and preparedness within
said Area D; and
WHEREAS, the power to prepare for and mitigate natural or man-made disasters, and the
power to act in case of emergency or disaster, are all powers common to the parties to this
Agreement; and
WHEREAS, that in order to efficiently and adequately exercise the powers hereinabove
referred to, it is essential that skilled personnel, charged with the duty of coordinating disaster
management efforts, should be provided in order to obtain maximum benefits; and
WHEREAS, that the parties to this Agreement believe the arrangements and provisions
provided by this Agreement will best serve the public peace. health, safety, and general welfare
of said respective parties, and of the Los Angeles County Operational Area and, therefore, shall
supersede any prior agreement concerning Civil Defense Areas or Disaster Management Areas.
NOW THEREFORE, in consideration of the foregoing recitals and of the benefits which will
be derived from the coordination of disaster management, planning, training and preparedness
efforts, and the availability of skilled personnel with adequate knowledge for coordination
purposes, the parties hereto do hereby mutually covenant and agree with each other, under the
madjpa.wpd 09/08/98
power and authority to do so granted under the provisions of Chapter 5 of Division 7 of Title 1
(Section 6500 et seq.) of the Government Code of the State of California, as follows:
1.0 Purpose
1.1 The purpose of this Agreement is to promote the coordination of disaster management,
planning, training and preparedness efforts of the parties by cooperative planning and related
activity under the direction of a Disaster Management Area Board. This Agreement shall
supersede any prior agreement by the parties hereto concerning these matters.
2.0 Creation of Disaster Management Area Board
2.1 There is hereby created the Disaster Management Area D Board ("Governing Board"). The
Govemirig Board at a minimum shall consist of one representative from each party who shall be
appointed to the Governing Board by the governing body of each party, and who may be removed
at any time by such governing body. Each party may appoint an alternate who may act in the
absence of the designated representative. No representative or alternate shall be appointed who
is not an official or employee of the appointing party. At its option. the Governing Board may
create an Executive Board or any standing committees as required. The Executive Board shall
establish rules and procedures for its operation.
3.0 Powers of the Disaster Management Area Board
3.1 Within 60 days after this Agreement is formally approved by a minimum of three(3) parties,
including two (2) cities and the County, the current Coordinator for the existing Civil Defense Area
ueadjpa.wpd 09/08/98
D or Disaster Management Area D, in conjunction with the County Operational Area Office of
Emergency Management, shall assist this Governing Board to provide for implementation of the
provisions of this Agreement.
3.2 The Governing Board shall determine the most appropriate means to provide direct
coordination and communication between the Los Angeles County Operational Area and the
parties to this Agreement. This may include retaining a full-time Disaster Management Area
Coordinator, or designating a lead agency to serve as Disaster Management Area Coordinator
to work cooperatively to strengthen the Disaster Management Area as part of the Operational
Area in disaster management, planning, training and preparedness. If the Governing Board
designates a Coordinator who is not a lead agency or an employee of a party, the terms and
conditions governing the services of the Coordinator shall be established by the Governing Board
who shall designate the administrative practices. The Disaster Management Area Coordinator
shall act as the Governing Board's representative on the Operational Area Advisory Board.
3.3 Standard duties of the Disaster Management Area Coordinator or designated lead agency
functioning in that capacity shall minimally include those identified in the attached "Duty
Statement'. Optional responsibilities listed in the Duty Statement may be modified as necessary
by said Board in meeting its specific needs.
3.4 The Governing Board shall have such powers as are granted by statute to general law
cities to perform the duties specified in this Agreement, and such powers are subject to the same
restrictions upon the manner of exercising the powers as in a general law city.
3.5 The Governing Board shall have the duty and responsibility to determine if personnel will
be employed under this Agreement; the compensation of such personnel; the location of the
weadjpa.wpd 09/08/98
Office Headquarters; all matters relating to policy and finance; and the overall supervision and
direction of the personnel employed.
3.6 Nothing contained in this Agreement shall be construed as granting to any board, person,
or other entity, the responsibility or power of each of the parties hereto to protect against the loss
of life and property solely within their respective jurisdictions. The parties specifically retain such
responsibility and power.
4.0 Rules of the Board
4.1 A simple majority of said Board shall constitute a quorum for the transaction of business
unless otherwise designated by the Governing Board. The Governing Board shall elect one of
its own members as Chair of the Governing Board. The Governing Board shall provide for the
time and place of its owo meetings, shall promulgate its own rules, and c;arlduct its business
according to Robert's Rules of Order. It shall cause to be kept a record of its proceedings and
shall furnish a copy thereof to each of the parties hereto.
5.0 Audit
5.1 If in the process of conducting its duties the Governing Board receives funds, property or
other assets from any source, said Governing Board shall be strictly accountable for those assets
and shall report all receipts and disbursements, as provided in the Addendum to this Agreement.
5.2 Any party shall have the right during regular business hours to examine, inspect, review
and copy, at its own expense, all books, records, accounts and other documents of the Governing
Board relating to this Agreement.
arcadjpampd 09/08/98
6.0 Duration of this Agreement
6.1 This Agreement shall take effect and be in full force as soon as such Agreement shall be
duly executed by a minimum of three (3) parties, including two (2) cities and the County, and shall
continue in full force and effect until such time as the member parties determine it is in the public
interest to dissolve the Disaster Management Area D.
6.2 The parties hereto shall have the right to withdraw from this Agreement effective July 1 of
any calendar year by filing a written notice of intention to so withdraw from said Disaster
Management Area on or before the first day of April of such year. In the event of the withdrawal
from this Agreement of one or more of the parties hereto, this Agreement shall continue and
remain in full force and effect insofar as the remaining parties are concerned. Any costs of the
program provided for herein shall be borne by the remaining parties in accordance with the
Addendum to this Agreement.
7.0 Disposition of Assets
7.1 The party or parties electing to withdraw from this Agreement prior to final termination shall
not Lie entitled to any refund or payment from any properties or assets accumulated as a result
of the joint exercise of powers herein. Upon final termination of this Agreement all property and
any surplus or remaining funds acquired hereunder shall be distributed to the parties to this
Agreement at the time of such termination in proportion to their contributions for the last calendar
year during which the Agreement was effective.
weadjpa.wpd 09/08/98
8.6 Amendments
8.1 This Agreement may be amended from time -to -time by the unanimous agreement of the
parties.
9.0 Counterparts
9.1 This Agreement may be executed in one or more counterparts and may include multiple
signature pages, all of which shall be deemed to be one agreement. Copies of this Agreement
may be used in lieu of the original.
10.0 Liability
10.1 Employees of any party performing disaster management services on behalf of the Disaster
Management Area shall remain employees of that party for the purposes c` workE,;S'
compensation and no other party shall have liability for injury to an employee of another party.
10.2 Pursuant to Government Code Section 895.4, each party hereby assumes the liability
imposed on it, its officers and employees for injury caused by a negligent or wrongful act or
ornission occurring in the performance of that party's obligations under this Agreement to the
same extent that such liability would be imposed in the absence of Government Code Section
895.2. Accordingly, each party shall defend, indemnify and hold harmless the other parties for
any claim, demand, cause of action, loss, liability, damage, cost or expense that may be imposed
on such party solely by virtue of said Section 895.2.
ueadjpa.wpd 09/08/98
IN WITNESS WHEREOF each party has caused this Agreement to be duly executed by
its authorized officer(s) on the date(s) set forth below.
Signature Page _ of
JOINT POWERS AGREEMENT TO PROVIDE FOR INTER -AGENCY COOPERATION
IN MAJOR NATURAL OR MAN-MADE DISASTER
Z
aeadjpa.wpd 09/08/98
DISASTER MANAGEMENT AREA D
Name of P y
Joe Vasquez, Mayor
Name/Title
June 22, 1999
Date
M
ADDENDUM TO JOINT POWERS AGREEMENT
Disaster Management Area D
This addendum is hereby incorporated in the Joint Powers Agreement for Disaster
Management Area D to provide for preparation of annual budgets, assessment of fees to the
member parties and accounting of assets pursuant to this Agreement.
(1) The respective parties hereto, with the exception of the County of Los Angeles, agree
to pay their respective proportionate shares of the costs and expenses incident to the
activities, operations and services covered by this Agreement. Their respective
proportionate shares shall be as their respective populations bear to each other, as
estimated by Urban Research Regional Population Models, as of January 1 of each
year this Agreement is in effect. The shares shall be based on a per capita rate.
(2) The County of Los Angeles shall pass through Emergency Management Assistance
(EMA) grant funding, including funding for unincorporated area populations, in
accordance with the approved EMA distribution plan, as appropriated annually by the
Board of Supervisors.
(3) The annual budgets shall be prepared and adopted by the Disaster Management Area
D Boaid. i he proportional contribution shall be addressed in the budget preparations
and approved by the Disaster Management Area D Board. Minimum assessments
may be established by the Area D Board. Any funds remaining at the end of the fiscal
year shall be carried over to the budget of the next fiscal year.
(4) No funds may be expended or obligated by the Disaster Management Area D Board
in excess of the total amount received from the participating agencies, plus such
grants or gifts as the Board may receive from other sources.
(5) The adopted budget shall be submitted to the respective parties hereto, on or before
the first day of May each year so as to enable legislative bodies of the respective
parties to examine same prior to the beginning of each fiscal year and take such action
with reference thereto, as they may desire, on their respective parts.
(6) Payments by the respective parties are to be made to the Disaster Management Area
D Board on or before July 31 of each year. The Disaster Management Area D Board
shall be strictly accountable for all funds and shall make an annual report of all receipts
and disbursements to the parties hereto for each fiscal year.
Attachment I
Policy Statement—The first priority of any DMAC will be to the cities within his/her ownArea; second
priority will be assistance to the other Areas and cities within and to the Los Angeles County
Operational Area (Op Area) Emergency Operations Center (EOC) (OAEOC) —City Liaison post.
Response to assistance requests will be to Areas of greatest need.
NON -EMERGENCY ROLE
Mission Statement --Coordinate with Area cities in planning for preparedness, mitigation and recovery
from emergencies/disasters.
Minimum Responsibilities/Services
• Disseminate emergency management
information received from the County/County
Op Area to the Area cities.
• Work with the Op Area in development and
submission of required EMA documents.
• Cooperate and particinate with the On Area
and the County Office of Emergency
Management (OEM) in operational
planning, exercises and training affecting
Area jurisdictions.
• Coordinate and communicate with other
disaster services organizations during
disasters.
• Attend pertinent federal, state, Op Area and
other training programs, workshops and
seminars to improve emergency programs;
brief Area cities on essential or relevant
information.
• Represent the Area at appropriate meetings,
including Op Area, state, federal, private and
non-profit organizations.
Optional Responsibilities/Services
as Directed by the Area Board
• Organize, conduct and assist in training
programs, conferences, etc.
• Using available federal, state and local
guidance, coordinate and assist, as
appropriate, in the development of member
cities' emergency piano, programs and
policies.
• Conduct regular board meetings/workshops
on relevant topics.
• Provide public information materials to
member cities, general public, schools and
businesses; respond to public inquiries;
maintain an audio visual library and
maintain information on resources available
during a disaster.
• Assist member cities in preparation and
revisions of necessary ordinances and
resolutions and other paperwork required
by FEMA, State OES and/or Op Area.
• Assist'member cities in planning and
organizing preparedness exercises, as
requested.
Minimum Responsibilities/Services
(Cont.)
• Liaison with the Sheriffs Department,
Emergency Operations Bureau (EOB) and
Station Coordinator; Red Cross Chapter(s);
Los Angeles County (OEM) and other
county departments; State OES and FEMA.
Coordinate with these agencies in special
projects or programs.
• Prepare annual budget information; maintain
all financial records.
• Maintain all records necessary for
participation in EMA funding.
Attachment I
Optional
Responsibilities/Services as Directed by the
Area Board (Cont.)
• Consult with and provide expertise for
member cities who are developing
Emergency Operation Centers (EOCs),
including information on appropriate
displays, supplies, communications
systems, etc., as requested.
• Maintain the Area office, including record
keeping, Area -wide information file,
correspondence, and all clerical and
secretarial duties.
DMAC Mutual Aid
• Subject to availability, provide backup
services for absent Area Coordinator.
Respond to urgent information requests
and disseminate critical information to cities
in the absence of their DMAC.
Note: The amount of time given to any one activity will vary depending on the anrual emergency
management focus and emergency activations.
EIMLRG FEIN' CIVROLE
ME- - 0• a
Mission Statement—Advocate for Area cities and liaison with the Los Angeles County
Operational Area (Op Area) Emergency Operations Center (EOC) (OAEOC) as necessary;
assist other Areas as requested; staff City Liaison post at OAEOC.
• Check in with Area cities to quickly determine the impact of the emergency/disaster.
• Provide a quick Area status report to the OAEOC to supplement individual cities' reports. This
is not a detailed or formal report. It should be considered outside the normal reporting system
and will provide the OAEOC with an indication of where potential problems might exist as well
as indicate which Disaster Management Area Coordinators (DMACs) might be in the best
position to directly provide staffing to assist the most heavily impacted Area(s) and the
OAEOC (staffing may come from the DMAC or from a city within the DMAC's Area).
• Get feedback from the OAEOC as to which DMAC Areas appear to be most heavily impacted
and which appear least impacted. Feedback will include a recommendation from the OAEOC
as to which DMAC should provide staffing to the OAEOC (staffing may come from the DMAC
or from a city within the DMAC's Area).
• DMAC or selected city provides shift staffing to the OAEOC to represent concerns of cities,
to ensure that the needs and concerns of cities are properly represented in the OAEOC, and
to participate, as appropriate, in the development of solutions affecting cities.