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HomeMy WebLinkAbout94-084 - ResolutionsRESOI//I~ONNO. 94-084 A RESOLUTION OF THE CITY ODUNCIL OF THE CITY OF RANO~O JOINT POWERS AGR~ CREATING THE PUBLIC AG~CY RISK SHARING AUI/40RITY OF CAT,T'FORNIA (PARSAC) ~HEREAS, the City of Rancho Cucamonga is a Member Entity of the California Municipal Insurance Authority ("(I~IA"), a joint powers agency providing risk management services, claims pooling and joint insurance pur~a.~e benefits to its member entities; and WHEREAS, the City of Rancho Cucamonga approved the Revised and Restated Joint Powers Agreement Creating the California Municipal Insurance Authority, dated July 1, 1989; a~d WHEREAS, the Executive C~t,,t~ittee and Board of Directors of OMIA have elected to change the name of the entity to the Public Agency Risk Sharing Authority of California (PARSAC) and such name change makes it necessary to correct the present Joint Powers Agreement to incorporate this change of name; WHEREAS, upon reco~m¥~ndation of its Executive Committee, theBoard of Directors of OMIA on November 19, 1993 approved the RevisedandRestatedJoint Powers ~3reement and reco~tu~_nded to all Member Entities that they approve it as well; and WHEREAS, Article XXIX of the Joint Powers Agreement provides that the A~3reement may be amended by a two-thirds vote of the Board; and WHEREAS, notice of the proposed amendment was mailed to all Member Entities on October 15, 1993 providing at least thirty (30) days notice of the proposed amendment; and WHEREAS, the City Council of the City of Rancho Cucamonga has reviewed the materials provided by PARSAC on the Revised and Restated Joint Powers Agreement and the summary of changes thereto; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Cucamonga that the Revised and Restated Joint Powers Agreement Creating the Public Agency Risk Sharing Authority of California (PARSAC) dated November 19, 1993 be and is hereby approved and adopted. PASSED, APPROVED, and ADOPTED this 4th day of May, 1994. Alexander, Buquet, Gutierrez, Stout, Williams NOES: None ABSENT: None Dennis L. Stout, Mayor Resolution No. 94-084 Page 2 I, Dk~RA J. ADAMS, CITY c~.RRK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing R~solution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, California, at a regular meeting of said City Council held on the 4thday of May, 1994. Executed this 5thday of May, 1994, at Rancho Cucamonga, California. a J. City Clerk Resolution No. 94-084 Page 3 REVISED AND RESTATED JOINT POWERS AGREEMENT CREATING PARSAC Public Agency Risk Sharing Authority of California November 19, 1993 Resolution No. 94-084 Page 4 TABLE OF CONTENTS ARTICLE I ARTICLE I~ ARTICLE III ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTICLE X ARTICLE XI ARTICLE XII ARTICLE XIII ARTICLE XIV ARTICLE XV ARTICLE XVI ARTICLE XVII ARTICLE XVIH ARTICLE XIX ARTICLE XX ARTICLE XXI ARTICLE XXII ARTICLE XXIH Page DEFINITIONS ............................................................2 PARTIES TO AGREEMENT ........................................... 4 PURPOSES. CREATION OF THE PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA ...................................... 5 TERM OF AGREEMENT ............................................... 6 POWERS OF PARSAC .................................................. 6 RESPONSIBILITIES OF MEMBER ENTITIES ..................... 7 BOARD OF DIRECTORS ............................................... 8 OFFICERS .................................................................11 EXECUTIVE COMMFITEE ............................................ 11 ADMINISTRATION ..................................................... 12 BUDGET ...................................................................12 ANNUAL AUDITS AND REVIEWS ................................. 12 ESTABLISHMENT AND ADMINISTRATION OF FUNDS ..... 13 SUPPORT OF PARSAC'S GENERAL EXPENSES ................ 15 DEPOSIT PREMIUMS .................................................. 15 LIABILITY PROGRAM ................................................. 15 MEMORANDUM OF COVERAGE FOR THE LIABILITY PROGRAM ................................... 16 S.I.R. MANDATORY RESERVE ..................................... 16 RETROSPECTIVE PREMIUM ADJUSTMENTS AND ASSESSMENTS ............................. PROGRAMS ...............................................................16 NEW MEMBERS ......................................................... WITHDRAWAL .......................................................... 17 Resolution No. Page5 ARTICLE XXIV ARTICLE XXV ARTICLE XXVI ARTICLE XXVII ARTICLE XXVIII ARTICLE XXIX ARTICLE XXX ARTICLE XXXI ARTICLE XXXH APPENDIX "A" 94-084 EXPULSION .............................................................. 18 EFFECT OF WITHDRAWAL OR EXPULSION ON MEMBER ENTITY'S RESPONSIBILITIES .................... 20 TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS ................................... 21 NOTICES ..................................................................22 PROHIBITION AGAINST ASSIGNMENT .......................... 22 AMENDMENTS .......................................................... 22 SEVERABILITY ..........................................................23 AGREEMENT COMPLETE ............................................ 23 FILING WITH SECRETARY OF STATE ........................... 24 LIST OF MEMBER ENTITIES ........................................ 25 Resolution No. 94-084 Page 6 PUBLIC AGF_,NCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC] JOINT POWERS AGREEMENT THIS AGREEMENT is made in the State of California by and among those municipallilts organized and existing under the laws of the State of California, hereinafter referred to as "Member Entitylies]," which are parties signatory to this Agreement. All such Member Entities are listed in Appendix "A," which is attached hereto and made a part hereof. RECITALS A. California Government Code Section 6500 and following permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties. B. California Government Code Section 900.4 permits a local public entity to self- insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and C. California Government Code Section 990.6 provides that the cost of insurance provided by a local public entity is a proper charge against that local public entity. D. California Government Code Section 990.8 permits two or more local entities to, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and provides that such pooling of self- insured claims or losses does not constitute the business of insurance under the California Insurance Code. E. Labor Code Section 3700[c] permits all political subdivisions of this State, including each member of a pooling arrangement under a joint exercise of powers agreement, to request a certificate of consent from the Division of Industrial Welfare to self-insure against worker compensation claims. F. Each of the Member Entities which is a party to this Agreement desires to join with the other Member Entities to fund programs of insurance for workers' compensation, liability, property and other coverages to be determined and for other purposes set forth in Article HI of this Agreement. Resolution No. 94-084 Page 7 G. The governing body of each Member Entity has determined that it is in its own best interest and in the public interest that this Agreement be executed and that it participate as a member of the Public Agency Risk Sharing Authority of California [PARSAC] created by this Agreem6nt. H. As of the effective date of this Agreement, this Agreement shall replace and supersede the Joint Powers Agreement Creating the Public Agency Risk Sharing Authority of California, dated May 21, 1986, as amended on November 20, 1987, July 1, 1989, and November 19, 1993. Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follows: AGREEMENT ARTICLE I DEFINITIONS The following terms shall have the following definitions: A. "Agreement" shall mean this Revised and Restated Joint Powers Agreement Creating the Public Agency Risk Sharing Authority of California [PARSAC]. B. "Board" or "Board of Directors" shall mean the governing body of PARSAC. C. "Bylaws" shall mean the Bylaws of PARSAC, revised as of November 19, 1993, and as they may be further amended or revised. D. "Claims" shall mean any demand[s] made against a Member Entity to recover for monetary damages within, or alleged to be within, the scope of coverage provided by any of PARSAC's Memorandums of Coverage [or any commercial insurance policy related to a PARSAC Program]. E. "PARSAC" shall mean the Public Agency Risk Sharing Authority of California created by this Agreement. Resolution No. 94-084 Page 8 F. "Covered Layer" shall mean a Program's layer[s] of coverage in exchange for which a Member Entity pays a Deposit Premium. G. "Covered Loss" shall mean any loss resulting from a claim or claims against a Member Entity which is in excess of its Self-Insured Retention and which is covered by any of PARSAC's Memorandums of Coverage [or insurance policy related to a PARSAC Program]. H. "Deposit Premium" shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each Program of PARSAC; I. "Executive Committee" shall mean that committee of the Board, constituted and exercising the authority set forth in this Agreement and in the Bylaws. J. "Fiscal Year" shall mean the period of time ending on June 30 of each year during which PARSAC is in existence. K. "Incurred Loss" shall mean the amount of monies paid and reserved by PARSAC to investigate, defend and satisfy a demand or demands made against a Member Entity. L. "Insurance" shall mean commercial insurance policies which PARSAC may purchase for its Member Entities, from time to time, in order to effect a transfer of risk. The term "Insurance" shall not mean any self-insurance, risk-sharing or pooling of losses or risks. M. "Member Entity" shall mean any California municipality which is a party signatory to this Agreement, including any other agency for which the City Council sits as the Governing board. N. "Memorandum of Coverage" shall mean the document or documents issued by PARSAC specifying the type and amount of coverages provided under any Program to the Member Entities by PARSAC. O. "Municipality" shall mean an incorporated General Law City, deftned by California Government Code Section 34102, or a Charter City, defined by California Government Code Section 34101. Resolution No. 94-084 Page 9 P. "Participation Agreement" shall mean a written agreement between PARSAC and the Member Entities which participate in one of PARSAC's Programs, which Participation Agreement shall incorporate this agreement by reference. Q. "Policy Year" shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments. R. "Pro~ram" shall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims. S. "Retrospective Premium" shall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program. T. "Retrospective Premium Adjustment" shall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount. U. "Self-Insured Retention" or "~IRa shall mean the amount of loss from each occurrence which the Member Entity shall retain and pay directly and which shall not be shared by the Member Entities of PARSAC. ARTICLE H PARTIES TO AGREEMENT Each Member Entity is a party to this Agreement and agrees that it intends to, and does contract with, all other parties who are signatories of this Agreement and with such other parties as may later be added as parties to this Agreement pursuant to Article XXH. Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from this Agreement, pursuant to Article XXIV or XXIII, shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining. R~solution No. 94-084 Page 10 ARTICLE IH PURPOSES This Agreement is entered into by the Member Entities in order to: A. Create the Public Agency Risk Sharing Authority of California to carry out the purposes listed below and to exercise the powers contained in this Agreement; B. Develop effective risk management programs to reduce the amount and frequency of their losses; C. Share some portion, or all, of the cost of their losses; D. $ointly purchase commercial insurance, associate with other insurance pools, or self-insure against risks; E. Jointly purchase administrative and other services including but not limited to underwriting, risk management, loss prevention, claims adjusting, data processing, brokerage, accounting and legal services when related to any of the other purposes; F. Provide other joint powers insurance authorities with risk management and related services; and G. Do all things necessary to carry out the foregoing purposes, as well as all things nec~sary to implement the terms of this Agreement as permitted by law. ARTICLE IV CREATION OF THE PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA Pursuant to Article 1 [commencing with Section 6500] of Chapter 5 of Division 7 of Tire 1 of the California Government Code, the Member Entities hereby create a public entity, separate and apart from the parties to this Agreement, to be know as the Public Agency Risk Sharing Authority of California ["PARSAC"]. Pursuant to Government Code Section 6508.1, the debts, liabilities or obligations of PARSAC shall not constitute debts, liabilities or obligations of any party to this Agreement. However, a Member Entity may separately contract for or assume responsibility for, specific debts, liabilities or obligations of PARSAC. Resolution No. 94-084 Page 11 ARTICLE V TERM OF AGREEMENT This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated in accordance with Article XXVI. ARTICLE VI POWERS OF PARSAC PARSAC shall have the powers common to its Member Entities in California and all additional powers permitted to a joint powers authority by California law, and the parties hereby authorize PARSAC to do all acts necessary to exercise such powers to fulfill the purposes of this Agreement referred to in Article III, including, but not limited to, the following: A. Make and enter into contracts; Incur debts, liabilities and obligations; Acquire, hold, lease or dispose of real and personal property, contributions and donations of property, funds, services and other forms of assistance; D. Sue and be sued in its own name and settle any claim against it; E. Employ agents and employees; F. Acquire, construct, manage, maintain or operate buildings, works or improvements; G. Receive, collect, and disburse monies; and invest its money not required for its immediate necessities, in compliance with Government Code Section 53601; and H. Exercise all powers necessary and proper to carry out the terms and provisions of this Agreement. These powers shall be exercised in the manner provided by applicable law and as set forth in this Agreement. R~solution No. 94-084 Page 12 ARTICLE VH RESPONSIBILITIES OF MEMBER ENTITIES Each Member Entity shall comply with the following responsibilities: A. To sign this Agreement and participate in PARSAC's Liability Program; B. To sign a Membership Resolution and Participation Agreement for each Program; C. To pay Deposit Premiums, Retrospective Premium Adjustments, and any Special Assessments to PARSAC on or before the due date; D. To appoint, elect or remove representatives to serve as director and alternate on the Board as set forth in Article VIII and the Bylaws, which representatives shall act on behalf of the Member Entity on all matters coming before the Board; E. To assure that its representative director or alternate attends at least the annual meeting of the Board; F. To assure that its representative director and alternate keep informed about PARSAC's activities and to assist them in doing so; G. To approve amendments to this Agreement as set forth in Article XXIX; H. To file, in a prompt and timely manner, all statewide, county, and locally- mandated reports and filings, including but not limited to the Fair Political Practices Commission's Statement of Economic Disclosure and the Secretary of State's Public Agency Roster Statement of Facts; I. To undertake an annual risk management audit of its facilities and activities, conducted by a person and/or fu'm approved by PARSAC's Executive Committee, and, based upon such audit report, to evidence correction, elimination and/or clarification of all noted deficiencies or audit recommended corrections to the satisfaction of PARSAC's Executive Committee. Risk management audits may be required by the Executive Committee more frequently than annually. Risk management audits may be paid by PARSAC and charged back to Member Entities as part of the Retrospective Premium Adjustment; Resolution No. 94-084 P~ge 13 J. To provide PARSAC with a copy of its most recent audited annual financial statements prepared by a Certified Public Accountant; or, if not available, provide PARSAC with the most recent set of monthly financial statements [which have not been audited]; and provide any other financial material as may be requested by PARSAC from time to time; K. To cooperate with, communicate and assist, in a timely manner, PARSAC and any insurer, claims adjuster, legal counsel or other service-provider engaged or retained by PARSAC in all matters relating to this Agreement; L. To promptly cooperate with PARSAC to determine and/or clarify any incidents which might become losses, the cause of any and all actual losses, and methods to bring about settlement of claims; and M. To comply with its obligations and responsibilities under this Agreement, the Bylaws, the Memorandum of Coverage, the Risk Management Standards, PARSAC's policies and procedures, and any other contract or requirement [as any of the foregoing may be created or amended] necessary to implement this Agreement or any Program in which the Member Entity participates. ARTICLE VIII BOARD OF DIRECTORS Except as otherwise provided in this Agreement or in the Bylaws, the powers of PARSAC shall be exercised, its property shall be controlled, and its affairs shall be conducted by its Board of Directors, whose meetings, functions and activities shall be governed by the Bylaws. The Board shall be composed of one director who represents and acts on behalf of each respective Member Entity which participates in PARSAC's Liability Program. The number of persons on the Board shall be equal to the number of Member Entities which participate in the Liability Program. In addition, each Member Entity shall appoint a second individual, as alternate director, who shall have the authority to attend, participate in, and vote at any Resolution No. 94-084 Page 14 meeting of the Board when the respective director is absent. Each director and alternate director shall be an elected official or employee of the respective Member Entity, shall be appointed by the respective Member Entity's governing body, and shall serve at its pleasure. If a director ~r alternate ceases to be an employee or elected official of a Member Entity for any reason, his or her position on the Board and any of its committees shall immediately terminate. The Board of Directors shall have the following powers and functions: A. The Board shall exercise all powers and conduct all business of PARSAC, either directly or by delegation of authority to other bodies or persons pursuant to this Agreement and applicable law. B. The Board shall form an Executive Committee from its membership. In the Bylaws the Board shall delegate to that Committee such powers as it sees fit. C. The Board may form such other committees as it deems appropriate in conducting PARSAC's business. D. The Board shall elect PARSAC's officers. E. The Board shall cause to be prepared and adopt PARSAC's annual operating budget. F. The Board shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each of PARSAC's Programs, including all provisions for reinsurance and administrative services necessary to carry out such Program. G. The Board shall contract or otherwise provide for necessary services to PARSAC and to Member Entities. These necessary services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services. H. The Board, either directly or through the Executive Committee, shall provide general supervision and policy direction to PARSAC's General Manager. Resolution No. 94-084 Page 15 I. The Board shall receive and act upon reports of its committees and the General Manager, either directly or through the Executive Committee. J. The Board shall establish monetary limits upon any delegation of the claims payment and settlement authority, beyond which a proposed settlement must be referred to the Board for approval. K. The Board may require that PARSAC review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any Member Entity insofar as those functions are affecting PARSAC's liability or potential liability. The Board may forward any or all such recommendations to the Member Entity with a request for compliance and a statement of potential consequences for noncompliance. L. The Board shall receive, review and act upon periodic reports and audits of PARSAC's funds. M. The Board shall appoint the General Manager as Secretary of PARSAC, to serve at the Board's pleasure. N. The Board may amend, repeal or adopt new Bylaws, this Agreement or other key documents. O. The Board may increase, decrease, or otherwise amend the coverages, limits and other terms of any Memorandum of Coverage. P. The Board shall approve any proposal by the Executive Committee for Special Assessments from the Member Entities before such Special Assessments are billed. Q. The Board may expel a Member Entity from any Program or from membership in PARSAC pursuant to Article XXIV of this Agreement. R. The Board may ratify actions of the Executive Committee, where such ratification is required before the action becomes final. S. The Board may enter into a joint venture or contractual arrangement with any similar entity and may also enter into a merger or acquisition agreement with a similar entity, provided that if PARSAC is not the surviving entity in any such merger or acquisition, such action shall require approval by the vote of three-fourths of the Member Entities. Resolution No. 94-084 Page 16 T. The Board shall have such other powers and functions as are provided for in this Agreement, the Bylaws, and applicable law. ARTICLE IX OFFICERS The officers of PARSAC shall be the President, Vice President, General Manager/Secretary, Treasurer, and Auditor/Controller, and their qualifications and duties shall be those set forth in the Bylaws. ARTICLE X EXECUTIVE COMMITTEE The Board shall create an Executive Committee, all of whose members shall be directors. The Executive Committee shall be composed of nine [9] members, including the elected officers of PARSAC [the President, Vice President, Treasurer, and Auditor/Controller], who shall serve ex-officio, and five [5] other individuals, who shall be elected by a majority vote of the Board for two-year terms at its annual meeting. The General Manager of PARSAC shall attend meetings of the Executive Committee and shall serve as its Secretary but shall have no vote. The authority of the Executive Committee and provisions for its meetings shall be as stated in the Bylaws. Resolution No. 94-084 Page 17 ARTICLE XI ADMINISTRATION PARSAC shall have a General Manager, who may be appointed or terminated by the Executive Committee, and who shall serve as the Secretary of PARSAC. The General Manager shall attend meetings of the Board, the Executive Committee and other committees of the Board but shall have no vote and shall be responsible for the preparation and maintenance of all minutes of meetings of the Board and its Committees, notices of meetings, and records of PARSAC. The General Manager shall also administer and supervise PARSAC's business and activities, subject to the direction and supervision by the Board and the Executive Committee, and shall be responsible for carrying out the duties set forth in the Bylaws. ARTICLE XH BUDGET The Board shall adopt an annual budget as recommended by the Executive Committee prior to the beginning of each Fiscal Year. ARTICLE XHI ANNUAL AUDITS AND REVIEWS A. Financial Audit. The Auditor/Controller shall cause an annual financial audit of the accounts and records to be prepared by a Certified Public Accountant in compliance with California Government Code Sections 6505 and 6505.5 or 6505.6 with respect to all receipts, disbursements, other transactions and entries into the books of PARSAC. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Government Code Section 26909 and shall conform to generally accepted accounting standards. A report of each such audit shall be filed as a public record with the Board, each of the Member Entities, and each county auditor of the county in which each of the Member Entities is located. The report shall be filed within twelve [12] months of the end of the fiscal year under examination. PARSAC shall pay all costs for such financial audits. R~solution No. 94-084 Page 18 B. Actuarial Review. The Board shall cause an annual actuafial review to be prepared for each of the Programs of PARSAC and a report of such actuarial review shall be made available for inspection by the Board and the Member Entities. PARSAC shall pay all costs for sucl~ actuarial reviews. C. Claims Review. The Board sh~ail cause an annual claims review to be prepared of the administration of the claims for each of the Programs of PARSAC. A report of such claims review shall be made available for inspection by the Board and the Member Entities. PARSAC shall pay all costs of such claims reviews. ARTICLE XIV ESTABLISHMENT AND ADMINISTRATION OF FUNDS PARSAC shall be responsible for the strict accountability of all funds and the reporting of all receipts and disbursements in accordance with generally accepted accounting principles. It will comply with all provisions of law relating to this subject, including California Government Code Sections 6505, 6505.1, 6505.5, or 6505.6. The Treasurer of PARSAC shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board. Separate accounts shall be established and maintained for each Program Year of each Program of PARSAC. Books and records of PARSAC in the hands of the Treasurer or other designated person shall be open to inspection at all reasonable times by members of the Board or authorized representatives of the Member Entities. The Treasurer shall have the custody of and disburse PARSAC's funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board to perform that function; provided that, pursuant to Government Code Section 6505.5, the Treasurer shall: A. Receive and acknowledge receipt of all funds of PARSAC and place them in the treasury to the credit of PARSAC; R~solution No. 94-084 Page 19 B. Be responsible upon his or her official bond for the safekeeping and disbursement of PARSAC's funds so held by him or her; C. Pay any sums due from PARSAC as approved for payment by the Board or by any body or person to whom the Board has delegated approval authority, making such payments from PARSAC's funds upon warrants drawn by the Auditor; D. Verify and report in writing to PARSAC and to Member Entities, as of the first day of each quarter of the fiscal year, the amount of money then held for PARSAC, the amount of receipts since the last report, and the amount paid out since the last report; E. Prepare a complete written report of all financial activities within one hundred and twenty [120] days after the close of each fiscal year for such fiscal year to the Board and to each Member Entity; and F. Receive, invest, and disburse funds in accordance with the procedures established by the Board or the Bylaws and in conformity with applicable law. Pursuant to Government Code Section 6505.1, the General Manager, the Treasurer, and such other persons as the Board may designate shall have charge of, handle, and have access to PARSAC's property. PARSAC shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in form specified by the Board covering all officers and employees of PARSAC who are authorized to hold or disburse PARSAC's funds, and all officers and employees who are authorized to have charge of, handle, and have access to PARSAC's property. The Auditor/Controller shall draw warrants to pay demands against PARSAC when the demands have been approved by both the President and the General Manager. Resolution No. 94-084 Page 20 ARTICLE XV SUPPORT OF PARSAC'S GENERAL EXPENSES Costs of staffing and supporting PARSAC [hereinafter called PARSAC's general expenses] sh~l be equitably allocated among the various Programs by the Board, and shall be funded by the Member Entities which participate in such Programs [and ex-Member Entities] in accordance with such allocations. ARTICLE XVI DEPOSIT PREMIUMS The Deposit Premiums for each Member Entity shall be set by PARSAC using various rating and underwriting criteria, such as: [1] The Member Entity's payroll; [2] The Member Entity's exposure base; [3] The results of an on-site underwriting inspection; [4] The Member Entity's prior claims history; [5] Total insurable values; and/or [6] Employee classification ratings. Deposit Premiums shall be billed to the Member Entities at least thirty [30] days prior to the inception of coverage or a new Policy Year. All Deposit Premiums shall be due and payable before the inception of coverage or on or before the first day of a new Policy Year. ARTICLE XVII LIABILITY PROGRAM Member Entities shall participate in PARSAC's Liability Program as a condition of membership in PARSAC. The first Policy Year shall end on June 30, 1987. Subsequent Policy Years shall begin on July 1 of each succeeding year and shall continue through the following June. Retroactive coverage may be provided as approved by the Board and documented on the Declaration Page of the respective Memorandum of Coverage. Resolution No. 94-084 Page 21 ARTICLE XVIII MEMORANDUMS OF COVERAGE The types and amounts of coverage for each Program provided to Member Entities shall be specified in a Memorandum of Coverage which shall be issued by PARSAC to each Member Entity for each Program Year in which the Member Entity has coverage. The Board shall have the power and authority to decrease, increase, or amend the coverage provided by a Memorandum of Coverage. If any such amendment is approved by the Board during a Policy Year, no Member Entity participating in that Policy Year shall be entitled to withdraw by reason of any said amendment prior to the termination of that Policy Year. ARTICLE XIX SIR MANDATORY RESERVES The Board may determine and require that Member Entities establish and maintain mandatory loss reserves for claims which are less than Member Entities' self-insured retention [SIR] or deductible. ARTICLE XX RETROSPECTIVE PREMIUM ADJUSTMENTS AND ASSESSMENTS Retrospective Premium Adjustments for each Program shall be calculated periodically, as determined by the Board and specified in the respective Participation Agreement. The Board may determine and levy special assessments on Member Entities by majority vote. ARTICLE XXl PROGRAMS The coverage for each Policy year of each Program shall be as specified in the respective Participation Agreement and Memorandum of Coverage. All Member Entities shall participate in the Liability Program, and subject to approval by the Board, which approval shall not be unreasonably withheld, each Member Entity may determine in which other Programs it will participate. Resolution No. 94-084 Page 22 ARTICLE XXH NEW MEMBERS Any California municipality may apply for membership in PARSAC and participation in any of P~RSAC's Programs at any time. Liability Program. PARSAC shall review all requests Municipalities must participate in at least the for membership and shall determine which applicants shall be accepted for membership, in which Programs they may participate, and when such participation shall begin. Municipalities shall become new Member Entities as of the effective date of coverage under the Liability Program. Municipalities which are in the process of incorporation shall be covered only as of the effective date of incorporation. Deposit Premiums for coverage which begins during a Policy Year may be prorated for the remainder of the Policy Year, in accordance with the provisions of the respective Participation Agreement. ARTICLE XXHI WITHDRAWAL Member Entities shall be obligated to participate in the Liability Program for rolling three-year periods [the current Policy Year plus the two next consecutive Policy Years]. Participation in other Programs shall be specified in the respective Participation Agreement. In order to withdraw from participation from the Liability Program, a Member Entity shall give PARSAC written notice of its intent to withdraw at any time during a Policy Year, which withdrawal shall be effective on the expiration of the two-year period which begins with the fu'st day of the next Policy Year. Withdrawal from the Liability Program shall terminate coverage under it and shall constitute withdrawal from this Agreement and from membership in PARSAC, subject to the ex-Member Entity's continuing obligations under Article XXV, below. Resolution No. 94-084 Page 23 Any notice of intent to withdraw may be rescinded in writing with Executive Committee consent at any time earlier than ninety days before the expiration of the withdrawal period. [Member Entities' participation in other Programs shall be specified in the respective Participation Agreements.] Any Member Entity which withdraws as a participant in any Program may renew participation in that Program by complying with all Program rules and regulations. ARTICLE XXIV EXPULSION Regardless of its three-year commitment under the Liability Program, a Member Entity may be expelled from PARSAC or a Program either with or without cause. The General Manager shall review any lack of satisfactory performance or other problem with the Member Entity and shall attempt to resolve the matter. If the General Manager determines that the Member Entity is unwilling or unable to correct the problem, the General Manager shall present the matter to the Executive Committee. The Executive Committee may recommend to the Board that the Member Entity be expelled, either for cause or without cause. Action by the Board shall require the vote of a majority of the total number of directors. A. Expulsion Without Cause. The Executive Committee may decide to recommend that a Member Entity be expelled without cause [for no stated cause]. Written notice of the Executive Committee's recommendation for expulsion shall be delivered to the Member Entity by certified mail at least fourteen [14] days before the Board meeting at which the matter will be discussed. Resolution No. 94-084 Page 24 B. Expulsion for Cause. If the Executive Committee's recommendation is to expel a Member Entity for cause, the Board shall appoint a hearing officer to conduct a hearing on the matter, and the hearing officer shall be responsible for all notices, procedures and reports ih connection with the hearing. Written notice of the date, time and place of the hearing, along with a summary of the reasons supporting the expulsion for cause shall be delivered to the Member Entity at least fourteen [14] days before the hearing, by certified mail. The notice shall also include any guidelines concerning the procedures to be followed at the hearing. The hearing officer shall preside at the hearing and shall be responsible for the conduct of the hearing and all rulings on procedure, evidence and law during the hearing. Both the Member Entity and PARSAC shall be represented by legal counsel at the hearing. Both parties may present written and oral evidence. A transcript of the proceedings shall be kept, either by a court reporter or by a good quality tape recorder, a written transcription of which may be prepared at the requesting party's expense. Within thirty [30] days after the hearing is declared closed by the hearing officer, he or she shall prepare written rulings of fact and law, with a recommendation for further action by the Board, and shall deliver the decision to the Member Entity and PARSAC. Within thirty [30] days after receipt of the hearing officer's decision, the Board shall consider and act on the hearing officer's recommendation. The Board shall permit the Member Entity to present a written response to the hearing officer's recommendations. The Board's decision shall be final, and if it decides to expel the Member Entity, it shall also state the effective date on which coverage terminates. C. Opportunity to Remedy. In considering the expulsion of a Member Entity, the Executive Committee shall allow the affected Member Entity a reasonable opportunity to address and remedy the reasons, if any, for the proposed expulsion. The period of time so allowed shall be within the sole discretion of the Executive Committee. If such a reasonable opportunity is allowed, PARSAC may require quarterly audits to monitor the affected Member Entity's remedial actions or any other conditions to its continued participation in PARSAC or its Programs. Resolution No. 94-084 Page 25 D. Alternative Coverage. A Member Entity which is the subject of a proposed expulsion shall be responsible for investigating the availability of alternate coverage. On the request of the Member Entity, the Board may permit the Member Entity a reasonable time to make arrangements for alternative coverage, but such period of time shall be at the Board's sole discretion. ARTICLE XXV EFFECT OF WITHDRAWAL OR EXPULSION ON MEMBER ENTITY'S RESPONSIBILITIES The withdrawal or expulsion of any Member Entity [the ex-Member Entity] after its participation in any Program shall not terminate its responsibility with respect to the following: A. Provide PARSAC with such statistical and loss experience data and other information as may be necessary for PARSAC to carry out the purposes of this Agreement; B. Pay to PARSAC when due any Deposit Premiums or Retrospective Premium Adjustments for each Policy Year of each Program in which it participated; C. Cooperate fully with PARSAC in determining the cause of losses in the settlement of claims; D. Cooperate with and assist PARSAC and any insurer, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to this Agreement or a Participation Agreement; and E. Comply with the Bylaws, Participation Agreements, and all policies and procedures of PARSAC not inconsistent with the provisions of this Agreement and not inconsistent with its withdrawal from PARSAC. Resolution No. 94-084 Page 26 In addition, PARSAC may retain all Deposit Premiums, assessments, property or other charges paid or transferred to PARSAC, and the ex-Member Entity is obligated to pay any future assessments made with respect to the Policy Years of any Program in which it participated, ~ntil all claims relating to such Policy Year[s] and Program[s] are settled, paid or resolved, at which time PARSAC shall refund to the ex-Member Entity any premiums, deposits, or property which it has retained and which were not expended in settling, paying or otherwise resolving claims against the ex-Member Entity. ARTICLE XXVI TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS This Agreement shall continue in full force and effect until terminated. Termination of this Agreement shall also constitute the termination of all Participation Agreements and all Programs. This Agreement may be terminated at any time by the vote of three-fourths of the Member Entities; provided, however, that this Agreement and PARSAC shall continue to exist for the purpose of disposing of all claims, the distribution of assets, and any other functions necessary to wind up the affairs of PARSAC. Upon termination of this Agreement, all assets of each Program of PARSAC shall be distributed among the Member Entities [and ex-Member Entities which previously withdrew or were expelled] which participated in such Programs, in accordance with and proportionate to their net premium payments made during the term of this Agreement. Such distributions shall be determined within six [6] months after the disposal of the last pending claim or other liability covered by each Program. Following the termination of this Agreement, any Member Entity which was a participant in any Program of PARSAC shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member Entity's period of participation. R~.solution No. 94-084 Page 27 The Board is vested with all powers of PARSAC for the purpose of concluding and dissolving the business affairs of PARSAC. The Board may designate legal counsel and any committee or person to carry out a plan of dissolution adopted by the Board. ARTICLE XXVII NOTICES Notices to Member Entities under this Agreement, a Participation Agreement, or the Bylaws shall be sufficient if mailed to their respective addresses on file with PARSAC. Notices to PARSAC shall be sufficient if mailed to the address of the principal executive office of PARSAC, addressed to the General Manager. ARTICLE XXVIII PROHIBITION AGAINST ASSIGNMENT No Member Entity may assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any Member Entity shall have any right, claim or title to any part, share, interest, fund, premium or asset of PARSAC. ARTICLE XXIX AMENDMENTS This Agreement may be amended by a two-thirds vote of the Board at any duly convened regular or special meeting; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Any such amendment shall become effective immediately, unless otherwise stated therein. Resolution No. 94-084 Page 28 ARTICLE XXX SEVERABILITY Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby. ARTICLE XXXI 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, except as noted with respect to the Bylaws, Participation Agreements, and Memorandums of Coverage. If any provision of this Agreement conflicts with a provision of the Bylaws, a Participation Agreement, a Memorandum of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern. Resolution No. 94-084 Page 29 ARTICLE XXXII FILING WITH SECRETARY OF STATE A notice of this Agreement and any amendments thereto shall be prepared and filed with the California Secretary of State within thirty [30] days of the effective date of this Agreement or any amendment. The notice shall contain the name of each public agency which is a party to the Agreement, the date upon which the Agreement became effective, a statement of purpose of the Agreement or the power to be exercised, and a description of the amendment or amendments made to the Agreement, if any. In witness whereof, the authorized officials of the parties hereto have executed this Agreement as of the date indicated below. Public Agency Risk Sharing Authority of California ["PARSAC"] DATE: Nov. 19, 1 993 BY: General Manager ATTEST: · Secretary, PARSAC Member Entity CITY OF RAIIC~O CIIC~!Ol~G~ DATE: BY: Signature/Title ATTEST: City/Town Clerk Resolution No. 94-084 Page 30 APPENDIX "A" LIST OF MEMBER ENTITIES City of Alturas City of Avalon City of Blue Lake City of Calistoga City of Canyon Lake City of Carlsbad City of Clearlake City of Coalinga City of Ferndale City of Grass Valley City of Highland City of Nevada City City of Pacific Grove Cit of Placentia City of Placerville City of Plymouth City of Point Arena City of Rancho Cucamonga City of Rialto City of Ridgecrest City of South Lake Tahoe City of Tehama City of Trinidad City of Twentynine Palms City of Wheatland Town of Yountville City of Yucaipa Town of Yucca Valley Resolution No. 94-084 Page 31 PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC] PARTICIPATION AGREEMENT FOR THE LIABILITY PROGRAM Adopted by the PARSAC Board of Directors, November 19, 1993 Resolution No. 94-084 Page 32 PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA LIABILITY PROGRAM Participation Agreement THIS PARTICIPATION AGREEMENT is entered into by and between the Public Agency Risk Sharing Authority of California [PARSAC], a joint powers authority duly organized under the laws of the State of California, and the City/Town of , which is duly incorporated or chartered under the laws of the State of California and which is, or becomes concurrently with the date of this Agreement, a signatory to the Revised and Restated Joint Powers Agreement creating the Public Agency Risk Sharing Authority of California, dated November 19, 1993, as it may be amended (the 'Joint Powers Agreement'), and a member of PARSAC (the 'Member Entity'). RECITALS A. PARSAC has been established under the Joint Powers Agreement and pursuant to California Government Code Section 6500 et seq., which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties. B. California Government Code Section 990.4 permits a local public entity to self-insure, purchase insunmce through an authorized carrier, or purchase insurance through a surplus lines broker, or any combination of these. C. California Government Code Section 990.6 provides that the cost of insurance provided by a local public entity is a proper charge against that local public entity. D. California Government Code Section 990.8 permits two or more local entities to enter into a joint powers agreement to provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and also provides that such pooling of self-insured claims or losses does not constitute the businesz of insurance under the California Insurance Code. Resolution No. 94-084 Page 33 E. The Member Entity, which is a party to the Joint Powers Agreement, desires to join with PARSAC's other Member Entities to fund a program for general liability coverage. F. The governing body of the Member Entity has determined that it is in its own best interests and in the public interest that the Joint Powers Agreement and this Participation Agreement be executed and that it participate as a member of PARSAC. G. This Agreement hereby incorporates by reference the Joint Powers Agreement and makes it a part hereof, and as of the effective date of this Agreement, this Agreement shall replace and supersede any conflicting provisions with respect to PARSAC's Liability Program contained in the Joint Powers Agreement Creating the California Municipal Insurance Authority, dated May 21, 1986, as amended on November 20, 1987, July I, 1989, and November 19, 1993, as well as those contained in PARSAC's Bylaws prior to the amendment and restatement of the Bylaws adopted on November 19, 1993. H. This Agreement governs only the terms and conditions of the Member Entity's participation in PARSAC's Liability Program. ~solution No. 94-084 Page 34 AGREEMENT 1. Definitions. Capitalized terms used in this Agreement without definition shall have the meanings assig~ to them in the Joint Powers Agreement. 2. Covernne. The Member Entity shall pay PARSAC the annual Deposit Premium (the initial one of which is stated on Appendix 'A" hereof) which is calculated by PARSAC pursuant to Paragraph 8 hereof for coverage of the Covered Losses stated in the Memorandum of Liability Coverage for the Public Agency Risk Sharing Authority of California ("Memorandum of Coverage'), which is attached hereto and is incorporated into this Agreement. 3. Term. The term of this Agreement is three years. Coverage under this Agreement shah commence on its effective date, but only if the Deposit Premium has been paid, and shall renew for a subsequent three-year period at the commencement of each Policy Year unless withdrawal occurs. 4. lnitinl Covernne. Coverage of a new Member Entity by PARSAC's Liability Program, or of an existing Member Entity which wishes to change its SIR or other terms of the Memorandum of Coverage, shah begin on the date indicated on Appendix "A' hereof, provided that all of the following have been satisfactorily complete4 or submitted to PARSAC: a. Information requested by PARSAC, including but not limited to: Liability Exposure Questionnaire, questionnaires from the excess liability carrier or the reinsurer, and copies of the threz prior years' b. An underwriting inspection and satisfactory conclusions or recommmdations by a safety and loss control engineer designated by PARSAC and, if applicable, satisfactory corrections or explanations regarding any deficiencies revealed by such inspection. c. Timely submission of loss data for the five most recent years in a form which PARSAC can use to calculate the initial Deposit Premium. R~solution No. 94-084 Page 35 d. Evaluation by PARSAC of all information submitted by the Member Entity and a recommendation from PARSAC's General Manager to the Executive Committee concerning the Member Entity's participation in PARSAC's Liability Program, including a proposed initial Deposit Premium. e. If requested by PARSAC, a meeting with the Member Entity's governing board with PARSAC's General Manager or designee, to discuss PARSAC's Liability Program and membership in PARSAC. f. Approval of the Member Entity's participation in PARSAC's Liability Program by PARSAC's Underwriting Committee or Executive Committee (which approval shall be ratified by PARSAC's Board of Directors, but such ratification shall not be a condition precedent to the Member Entity's coverage). Execution by duly authorized representatives of PARSAC and the Member Entity of.' (i) (ii) (iii) New Member Re. solution (in a form to be supplied by PARSAC); The Joint Powers Agreement; and This Agreement and any addenda or supporting documents. h. Delivery to PARSAC of the Member Entity's check issued to PARSAC in the amount of the Deposit Premium, including the Member Entity's contribution to PARSAC's Catastrophic Loss Fund. 5. Oblieation to Participate. The Member Entity agrees that participation in PARSAC's Liability Program is a condition precedent to membership in PARSAC, and that withdrawal or expulsion from the Liability Program constitutes withdrawal or expulsion from PARSAC as provided for in the Joint Powers Agreement. 6. Member Entitv's Resoomibilities. In addition to the foregoing and the duties contained in the $oint Powers Agreement and the Memorandum of Coverage, the Member Entity shall comply with the following: a. Pay all Deposit Premiums, Retrospective Premium Adjustments, and any Special Assessments to PARSAC on or before the due date; Resolution No. 94-084 Page 36 b. Undertake an annual risk management audit of its facilities and activities, conducted by a person and/or firm approved by PARSAC's Executive Committee, and based upon such audit report, to evidence correction, elimination and/or clarification of all noted deficiencies or recormnended corrections to the satisfaction of~ARSAC's' Executive Committee. Risk management audits may be required by the Executive Committee more frequently than annually. Risk Management audits may be paid by PARSAC and charged back to Member Entities as part of the Retrospective Premium Adjustment; c. Provide PARSAC with a copy of its three most recent years' audited annual financial statements prepared by a Certified Public Accountant; or, if not available, provide PARSAC with the most recent set of monthly financial statements (which have not been audited); and provide any other financial material as may be requested by PARSAC from time to time; d. Cooperate with, communicate with and assist, in a timely manner, PARSAC and any insurer, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to the Liability Program and this Agreement; e. Promptly cooperate with PARSAC to determine and/or clarify any incidents which might become losses, the cause of any and all actual losses, and methods to bring about settlement of claims; 'and f. Comply with its obligations and responsibilities under this Agreement, the $oint Powers Agreement, the Bylaws, the Memorandum of Coverage, PARSAC's policies and procedures, and any other contract or requirement (as any of the foregoing may be created or amended) necessary to implement this Agreement or the Liability Progn'am. 7. 5elf-lmnn-ed Retention ~$.I.R.) Reserved Fund Balanee. The Member Entity must establish, by resolutiun, a "Fund Balance Reserve' ('Reserve') equal to three times (3) the designated 5.I.R. or for any underlying insurance dednctible chosen, and approved for the Member Entity by PARSAC. Tim Re,rye will be recorded and maintained in the appropriate Member Entity Fund in ~¢ordance with Generally Acc_--gtable Accounting Principles. R~solution No. 94-084 Page 37 PARSAC will be notified of any proposed adjustment to the Reserve prior to the Member Entity's adoption of such a resolution. PARSAC may request certification, by the Member Entity, of the balance in the Reserve account at any time. Applicants establishing coverage with PARSAC after July 1, 1989 shall be required to submit the "Fund Balance Reserve Resolution" prior to coverage inception. Member Entities participating in the PARSAC Liability Program prior to July 1, 1989 shall establish the correct Reserve within three (3) years from the effective date of this Agreement. Any Member Entity which does not desire to establish a local Fund Balance Reserve at the required three-times its S.I.R. or underlying insurance deductible amount, may contract for an actuarial study of its losses and reserves by a Fellow of the Casualty Actuary Society (FCAS), to ascertain and represent to the PARSAC adequate below S.I.R. Reserves. Such below S.I.R. amount shall be established as the correct Reserve for that Member Entity. 8. De~mosit Premiums. The Deposit Premiums for the Liability Program shall be set at a level estimated to be sufficient to cover PARSAC's budget for each Policy Year of the Liability Program. The Deposit Premiums for the Member Entity shall be established for each Policy Year and shall be based on: (a) the Member Entity's prior claims history; (b) the Member Entity's total payroll; (c) the Member Entity's exposure base; and (d) the results of an on-site underwriting inspection. Deposit premiums for the Liability Program shall be billed by PARSAC to the Member Entity at least thirty (30) days prior to the inception of coverage or of a new Policy Year. 9. Retrosoective Premium Adiustments and Assessments. A financial reconciliation or audit of each Policy Year will be made by PARSAC to determine whether the Deposit Premium collected for that Policy Year was sufficient to cover the costs, expenses and coverage. Resolution No. 94-084 Page 38 Retrospective Premium Adjustments for the Liability Program shall be calculated eighteen months after the conclusion of each Policy Year and annually thereafter until all applicable claims are finalized. In addition, the Board may have special Retrospective Premium Adjustments calculated at any time if, m its opinion, it becomes advisable. The results of the Retrospective Premium Adjustments shall be communicated to the Member Entities within one month following each calculation. Any Retrospective Premium Adjustments indicating additional premiums due from any Member Entity shall be billed to that Member Entity at least one month in advance of when they shall be due and payable. The Adjustments resulting from the regularly scheduled calculations shall be due and payable in conjunction with the next set of Deposit Premiums billed. The Adjustments resulting from special calculations authorized by tim Board shall be due as specified by the Board. Likewise, any Retrospective Premium Adjustments conducted which indicate an excess of Deposit Premiums collected, resulting in a credit to the Member Entity, shall be conveyed in writing to the Member Entity at the same time the other Retrospective Premium Adjustments are conveyed to Member Entities (one month in advance of when the Deposit Premiums and Retrospective Premium Adjustznents, where applicable, am due and payable). However, if a Member Entity has withdrawn from the Liability Program and PARSAC, or was expelled from the Liability Program and PARSAC, any Retrospective Premium Adjustment credit shah remain with PARSAC until all claims have been settled for the particular Policy Year(s) being reconciled. The Retrospective Premium Adjustment for each Policy Year of the Liability Program shall be calculated for each Member Entity by adding the sums of "A' and 'B" below, less premiums on hand: An amount equal to the individual Member Entity's Incurred Losses and share of expenses and inter~ income for such layer; provided, however, that such amount shall not be grmter than 150% of the Deposit Premium for that layer, nor less than 75 % of the Deposit Premium for that layer. Resolution No. 94-084 Page 39 Bo Each Member Entity's proportionate share (based upon the amounts determined pursuant to 'A' above) of the difference between the sum of the individual amounts calculated pursuant to 'A' above, and the total of all Incurred Losses, reserves, expenses and interest income for such layer. 10. Withdrawal. The period of commitment by a Member Entity to participation in the Liability Program is three years; that is, the current Policy Year plus the next two consecutive Policy Years. Notice of intent to withdraw from the Liability Program may be tendered in writing by a Member Entity at any time. Such notice will become effective and withdrawal will occur after the last day of coverage of the next two consecutive full Policy Years. Such notice can be rescinded with Executive Committee consent at any time at least ninety (90) days before the end of the last Policy Year. A Member Entity can seek reinstatement at any time after withdrawal. 11. Notices. Notices to the Member Entity under this Agreement shall be sufficient if mailed to its respective address on file with PARSAC. Notices to PARSAC shall be sufficient if mailed to the address of the principal executive office of PARSAC, addressed to the General Manager. 12. Assignment. The Member Entity shall not assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of the Member Entity shall have any right, claim or title to any part, share, interest, fund, premium or asset of PARSAC. 13. Amendments. This Agreement may be amended only by an agreement in writing between PARSAC and the Member Entity. Any such amendment shall become effective immediately, unless otherwise stated therein. 14. Severability. Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby. Resolution No. 94-084 Page 40 15. Comvlete Anreement. The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except with respect to PARSAC's Bylaws and the $oint Powers Agreement. If any provision of this Agreement conflicts with a provision of the Joint Powers A~reement, such conflicting provisions shall be interpreted to avoid any such conflict, but the Ioint Powers Agreement shall govern. In witness and recognition of the above, the authorized officials of the parties hereto have executed this Agreement as of the date indicated below: Public Agency Risk Sharing Authority of California ["PARSAC"] DATE: Nov. 19, 1993 BY: · ' ATTEST: General Manager Secretary, PARSAC Member Entity DATE: BY: Signature/Title A'I'rEST: City/Town Clerk