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HomeMy WebLinkAboutORDINANCE 05-850 0 ORDINANCE 5-85 WHEREAS,in April,1985,the Town issued an Invitation for Bids for insurance coverage for the Town to be effective June 27,1985;and WHEREAS,in response to said Invitation,the Town received two bids,one being a bid from First National Insurance of Estes Park,Inc.,and the other from Colorado Intergovernmental Risk Sharing Agency (CIRSA);and WHEREAS,a special meeting of the Board of Trustees of the Town of Estes Park was held on June 18,1985 at 12:00 o’clock P.M.at the Town Hall for the purpose of reviewing said bids;and WHEREAS,after reviewing said bids,the Board of Trustees of the Town of Estes Park has determined that it is in the best interest of the Town to accept the bid for insurance coverage from Colorado Intergovernmental Risk Sharing Agency. NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK,COLORADO: Section 1.The Town of Estes Park hereby accepts the bid of Colorado Intergovernmental Risk Sharing Agency dated June 18,1985,as modified with regard to errors and omissions coverage by Timothy A.Greer,for the period encompassing June 27,1985 through December 31,1985. Section 2.The Town of Estes Park further adopts the Bylaws and Intergovernmental Agreement Colorado Intergovernmental Risk Sharing Agency dated January 1,1985,a copy of which is attached hereto as Exhibit “A”and incorporated herein by reference. Section 3.The Mayor and Town Clerk are hereby authorized to execute the aforementioned Intergovernmental Agreement between Colorado Intergovernmental Risk Sharing Agency and the Town of Estes Park. Section 4.The Board of Trustees of the Town of Estes Park, 0 0 Colorado,herewith finds,determines and designates that this Ordinance is necessary for its immediate preservation of the public peace,health and safety,in order to-provide for continuous insurance coverage;and whereas,in the opinion of the Board of Trustees,an emergency exists in that the Town’s current insurance coverage expires on June 27,1985 and it is necessary to provide insurance coverage for the Town on or before said date, this Ordinance shall take effect and be in force immediately after its passage,adoption and signature of the Mayor. Mayor I hereby certify that the above Ordinance was introduced and read at a special meeting of the Board of Trustees on the 2C day of _____________, 1985,and published in a newspapera of general circulation in the Town of Estes Park,Colorado. Town Clerk —2— BYLAWSANDINTERGOVERNMENTALAGREEMENTCOLORADOINTERGOVERNMENTALRISKSHARINGAGENCYARTICLEI.Definitions.Asusedinthisagreement,thefollowingtermsshallhavethemeaninghereinaftersetout:(1)AGGREGATESTOPLOSSINSURANCE—InsurancepurchasedbyCIRSAfromaninsurancecompanyapprovedbytheInsuranceComissionertounderwritesuchcoverageinColoradoprovidingcertaincoverageuptoacontractedamountforotherwiseuninsuredlossestobebornebythejointriskmanagementpool,whichinanyoneyearaggregatetoapre—setmaximumamountofcoverage.(2)BOARD-BoardofDirectorsofCIRSA(3)CATASTROPHEEXCESSINSURANCE—InsurancepurchasedbyCIRSAfromaninsurancecompanyapprovedbytheInsuranceConinissioneroftheStateofColoradotounderwritesuchcoverageinColoradoprovidingcertaincoverageforlossesoveraprudentamountuptoapre—setmaximumamountofcoverage.(4)CIRSA—.TheColoradoIntergovernmentalRiskSharingAgencyestablishedpursuanttotheConstitutionandthestatutesofthisstatebythisintergovernmentalagreement.(5)EXECUTIVEDIRECTOR—ExecutiveDirectorofCIRSA(6)FISCALYEAR—January1toDecember31(7)JOINTRISKMANAGEMENTPOOL—AfundofpublicmoniesestablishedbyCIRSAtoself—insurecertainrisksjointlywithinadefinedscopeandtopurchasecatastrophe,excessand/oraggregatestoplossinsurancewhendeemedprudent.(8)JOINTSELFINSURANCE—Aself—insuranceprograminwhichmunicipalitiesagreetocontributeannualandwhererequiredsupplementarypaymentstoupportariskmanagementprogramandajointriskmanagementpool.(9)MEMBERS—Themunicipalitieswhichenterintothisintergovernmentalagreement.(10)POLICYYEAR—January1toDecember31(11)RISKMANAGEMENT—Aprogramofidentificationofexposurestoaccidentalloss,reductionorlimitationoflossestomunicipalpropertiesandfrominjuriestopersonsorpropertycausedbytheoperationsofmunicipalities,andprudentfundingoftheserisks.Whereclaimsarise,CIRSAwillprocesssuchclaims,investigatetheirvalidity,settleordefendagainstsuchclaimswithinthefinanciallimitsofthejointriskmanagementpool,tabulatesuchclaims,costsandlossesandcarryoutotherassignedduties. 0(12)SELF—INSURANCE—ThedecisionbyamunicipalitynottopurchaseInsurancecoverageforrisksbelowcertainlimits;toseekallinnunitiesprovidedbylawforanylocalgovernmentandtheofficersandemployeesthereof;torelyuponitsfinancialcapabilitiestopayanylosseswhichoccurforwhichitisliable;andtopurchasesomeinsurancetoprotectagainstcatastrophicoraggregatelosses.ARTICLEII.CreationofCIRSA.TheColoradoIntergoverr.mentalRiskSharingAgency,aseparateandindependentgovernmentalandlegalentity,isherebyformedbyintergovernmentalagreementbymembermunicipalitiespursuanttotheprovisionsof24—10—115.5,C.R.S.(1982REPL.VOL.),asamended,29-1—201etseq.,C.R.S.(1977REPL.VOL.),asamended,29—13—102,C.R.S.(1977REPL.VOL.),asamended,andColoradoconstitution,ArticleXIV,Section18(2).ARTICLEIII.Purposes.(1)ThepurposesofCIRSAaretoprovideajointriskmanagementpoolandtoassistmemberstopreventandreducelossesandinjuriestomunicipalpropertyandtopersonsorpropertywhichmightresultinclaimsbeingmadeagainstmembersofURSA,ortheiremployeesorofficers.(2)ItistheintentofthemembersofCIRSAtocreateanentityinperpetuitywhichwilladministerajointriskmanagementpoolandusefundscontributedbythememberstodefendandindemnify,inaccordancewiththeseBylaws,anymemberofCIRSAagainststatedliabilityorloss,tothelimitofthefinancialresourcesofCIRSA.ItisalsotheintentofthememberstohaveCIRSAprovidecontinuingstabilityandavailabilityofneededcoveragesatreasonablecosts.AllincomeandassetsofURSAshallbeatalltimesdedicatedtotheexclusivebenefitofitsmembers.TheseBylawsshallconstitutethesubstanceoftheintergovernmentalcontractamongthemembers.ARTICLEIV.Non-WaiverofGovernmentalorOtherImmunity.AllfundscontainedwithinthejointriskmanagementpoolarefundsplusearnedinterestderivedfromitsmemberswhicharemunicipalitieswithinthestateofColorado.Itistheintentofthemembersthat,byenteringintothisagreement,theydonotwaiveandarenotwaivinganyimmunityprovidedtothemembersortheiremployeesbyanylaw.ARTJCLEV.CIRSAPowersandDuties.(1)ThepowersofURSAtoperformandaccomplishthepurposessetforthaboveshall,withinthebudgetarylimitsandproceduressetforthintheseBylaws,bethefollowing:(a)Toemployagents,employeesandindependentcontractors.(b)Topurchase,sell,encumberandleaserealpropertyandtopurchase,sell,orleaseequipment,machinery,andpersonalproperty.(c)ToinvestfundsasallowedbyColoradoStatutes.Cd)Tocarryouteducationalandotherprogramsrelatingtoriskmanagement.Ce)Tocreate,collectfundsfor,andadministerajointriskmanagementpool.(f)Topurchaseexcessinsurance,and/orstoplossinsurancetosupplementthejointriskmanagementpool.2 N(g)Toablishreasonableandnecessarylossreduction(preventionprocedurestonefollowedbythemembers.(h)Toprovideriskmanagementandclaimadjustmentortocontractforsuchservices,includingthedefenseandsettlementofclaims.(i)TocarryoutsuchotheractivitiesasarenecessarilyimpliedorrequiredtocarryoutthepurposesofCIRSAspecifiedinArticleIIIorthespecificpowersenumeratedintheArticle.Ci)Tosueandbesued.(k)Toenterintocontracts.(1)Toreimbursedirectorsforreasonableandapprovedexpenses,includingexpensesincurredinattendingBoardmeetings.(m)Topurchasefidelitybondsforallofficers,directors,andemployeesofCIRSA.ARTICI.EVI.Participation.ThemembershipofCIRSAshallbelimitedtomunicipalitieswhicharemembersoftheColoradoMunicipalLeagueandwhichproperlyenterintoandadoptthisintergovernmentalagreementandbylaws.Newmembersshallbeadmittedonlybyatwo—thirds(2/3)voteofthememberspresentatameeting,subjecttothepaymentofsuchsumsandundersuchconditionsasthemembersshallineachcaseorfromtime—to—timeestablish.AnymemberadmittedonorafterJanuary1,1984,unlessexpelledpursuanttoArticleXV,shallremainamemberofCIRSAforaperiodofatleastoneyear.ARTICLEVII.MembersPowersandMeetings.(1)Themembersatameetingthereofshallhavethepowerto:(a)ElectaBoardofDirectorsbyvoteofthememberspresentattheannualmeetina.(b)kuendthebylawsbya2/3voteofthe.nemberspresentatameeting,butnoamendmentshalltakeeffectsoonerthansixteen(16)daysafteradoptionoftheamendment.(c)Admitandexpelmembersbya2/3voteofthememberspresentata--meeting.(d)Adoptandadjustthetypesoflossescovered,limitsofliabilityonexcessinsurancepolicies,andthetypesofdeductibleswhichCIRSAprovidesbya2/3voteofthememberspresentatameeting.Ce)RemoveadirectoroftheBoardofDirectorsbya2/3voteofthememberspresentatameeting.(2)Meetingsofthemembersshallbeheldasfollows:(a)Membersshallmeetatleastsemi—annuallyatatimeandplacetobesetbytheBoard,withnoticemailedtoeachmemberatleast15daysinadvance.(b)Specialmeetingsmaybecalledbythedirectorsorbyapetitionof1/3ofthemembers.Noticeofspecialmeetingsshallbemailedtoeachmemberatleast15daysInadvance.(c)TheChairmanoftheBoardofDirectorswillpresideatthemeetings.(3) o0(d)Fiftypercentofthemembersshallconstituteaquorumtodobusiness.Ce)Noabsenteeorproxyvotingshallbeallowed.(f)Eachmembershallbeentitledtoonevoteoneachissue.ARTICLEVIII.ObligationofMembers.(1)TheobligationsofmembersofCIRSAshallbeasfollows:(a)TopaypromptlyallannualandsupplementarycontributionsorotherpaymentstoCJRSAatsuchtimesandinsuchamountsasshallbeestablishedbytheBoardofDirectorspursuanttotheseBylaws.AnydelinquentpaymentsshallbepaidwithinterestwhichshallbeequivalenttotheprimeinterestrateonthedateofdelinquencyofthebankwhichinveststhemajorityoftheCIRSAfunds.Paymentswillbeconsidereddelinquentforty-five(45)daysfollowingtheduedate.(b)Todesignateavotingrepresentativeandalternateforthemembersmeetings.Amember’svotingrepresentativemustbeanemployeeorofficerofthemembermunicipality,butmaybechangedfromtimetotime.Cc)ToallowCIRSAanditsagents,officersandemployeesreasonableaccesstoallfacilitiesofthememberandallmemberrecords,includingbut•notlimitedtofinancialrecords,asrequiredfortheadministrationofURSA.(d)ToallowattorneysdesignatedbyURSAtorepresentthememberintheinvestigation,settlementandlitigationofanyclaimmadeagainstthememberwithinthescopeoflossprotectionfurnishedbyCIRSA.(e)TocooperatefullywithURSA’sattorneys,claimsadjustersandanyotheragent,employee,orofficerofCIRSAinactivitiesrelatingtothepurposesandpowersofURSA.(f)TofollowthelossreductionandpreventionproceduresestablishedbyURSA.(g)ToreporttoCIRSAaspromptlyaspossibleallincidentsoroccurrenceswhichcouldreasonablybeexpectedtoresultinCIRSAbeingrequiredtoconsideraclaimagainstthemunicipality,itsagents,officers,oremployess,orforcasualtylossestomunicipalpropertywithinthescopeofcoveragesundertakenbyURSA.(h)ToadoptariskmanagementstatementapprovedbytheBoard.Ci)Tomaintainanactivesafetycomitteeorsafetycoordinator.(j)ToreporttoCIRSAassoonasreasonablypossible,theadditionofnewprogramsandfacilitiesorthesignificantreductionorexpansionofexistingprogramsandfacilitiesorotheractswhichwillcausematerialchangesinthemembersaccidentalloss.4 C0(k)ToprovideCIRSAperiodically,asrequested,withinformationonthevalueofbuildingsandcontentsandotherrealandpersonalproperties.(1)ToparticipateincoverageoflossesandtopaycontributionsasestablishedandinthemannersetforthbytheBoard.ARTICLEIX.Contributions.ItistheintentionofCIRSAtolevycontributionstothemembersasestablishedbytheBoard.TheBoardmayincreasecontributionschargedtoanymembertoreflectincreasedriskresultingfromarefusaltoparticipateinorwillfulviolationofsafetyorlosspreventionprogramsorforotherreasonsestablishedbytheBoard.Conversely,theBoardmayreducecontributionsforanymemberthatfaithfullyparticipatesinlosspreventionandsafetyprogramsorforotherreasonsestablishedbytheBoard.ARTICLEX.BoardofDirectors.(1)TheBoardofDirectorswillbecomposedoffive(5)directors.Directorswillbeelectedfromamongthemembersrepresentatives.Therewillbe:(a)Onedirectorfromameiiberunder20,000population.(b)Onedirectorfromamemberof20,000to40,000population.Cc)Twodirectors,eachfromadifferentmemberabove40,000populuation.(d)Onedirectoratlarge.(2)EverytwoyearspopulationwillbedeterminedbythecensusfiguresreportedbytheU.S.BureauofCensus.(3)TheelectionofdirectorswillbemadebythemembersattheannualmeetingtobescheduledinDecemberofeachyear.(4)Termsofthedirectorswillbetwoyearstaggeredterms.ARTICLEXI.PowersandDutiesoftheBoardofDirectors.TheBoardshallhavethefollowingpowersandduties:(1)TaelectduringthefirstBoardmeetingfollowingeachannualmeeting,achairman,vice-chairman,secretary/treasurerandotherofficersasappropriate.Eachofficershallserveuntilhisorhersuccessoriselected,butthereshallbenolimitonthenumberoftermsservedbyanyperson.2)Torecormiendcriteriafornewmembers.(3)Toestablishcontributionsbythemembers.(4)Torecornendtothemembersthetypesoflossestobecovered,limitsofliabilityonexcessinsurancepolicies,andthetypesofdeductionswhichCIRSAprovides.5 0.0(5)ToselectallserviceprovidersnecessaryfortheadministrationofCIRSA.(6)Tosetthedates,placesandprovideanagendaforBoardandmember’smeetings.(7)TofillvacanciesintheBoardbymajorityvoteoftheremainingdirectorsfortheunexpiredterm.(8)ToexerciseallpowersofCIRSAexceptpowersreservedtothemembers.(g)Toprepare,adaptandreportCIRSA’sbudgettothemembers.(10)Tohireanddischargepersonnelortodelegatesuchauthoritytotheexecutivedirector.(11)Tomakereportstothemembersatthequarterlymeetings.(12)Toprovideforclaimsandlosscontrolprocedures,toestablishconditionswhichmustbemetpriortothepaymentordefenseofaclaim,andtodenyaclaimorthedefenseofaclaimiftheconditionsarenotmet.(13)Toprovidefortheinvestmentanddisbursementoffunds.(14)Toestablishrulesgoverningitsownconductandprocedureandthepowersanddutiesofitsofficers,notinconsistentwiththeseBylaws.(15)Toprovidetomembersannually:4.a)AnauditofthefinancialaffairsofCJRSAtobemadebyacertifiedpublicaccountantattheendofeachfiscalyearinaccordancewithgenerallyacceptedauditingprinciplesandstatelaw;and(b)Anannualreportofoperations.(16)ToformcomitteesandprovideotherservicesasneededbyCIRSA.TheBoardshalldeterminethemethodofappointmentandtermsofcomitteemembers.(17)TodoallactsnecessaryandproperfortheoperationofCIRSAandimplementationoftheseBylawssubjecttothelimitsoftheBylawsandnotinconflictwiththeseBylaws..-(18)DissolveCIRSAanddisburseitsassetsbya2/3voteoftheentiremembershipprovidedthatanoticeofintenttodissolveURSAshallbegiventotheInsuranceComissioneratleastninety(90)dayspriortotheeffectivedate.NosuchplantodissolveURSAshallbeeffectiveuntilapprovedbytheInsuranceCommissioner.ARTICLEXII.MeetingsoftheBoardofDirectors.(1)TheBoardmaysetatime-..andplaceforregularmeetingswhichmaybeheldwithoutfurthernotice.aidshallestablishproceduresfornoticeofspecialmeetings.(2)Three(3)directorsshallconstituteaquorumtodobusiness.AllactsoftheBoardshallrequireamajorityvoteofthedirectorspresent.6 CCARTICLEXIII.liabilityofBoardofDirectorsofOfficers.ThedirectorsandofficersofCIRSAshoulduseordinarycareandreasonablediligenceintheexerciseoftheirpower,andintheperformanceoftheirdutieshereunder;theyshallnotbeliableforanymistakeofjudgmentorotheractionmade,takenoromittedbytheningoodfaith;norforanyactiontakenoromittedbyanyagent,employeeorindependentcontractorselectedwithreasonablecare.Nodirectorshallbeliableforanyactiontakenoromittedbyanyotherdirector.CIRSAshallobtainabondorothersecuritytoguaranteethefaithfulperformanceofeachdirector’s,officers’sandtheexecutivedirector’sdutieshereunder.Thejointriskmanagementpoolshallbeusedtodefendandindemnifyanydirector,officer,oremployeeforactionstakenbyeachsuchpersoningoodfaithwithinthescopeofhisorherauthorityforCIRSA.CIRSAmaypurchaseinsuranceprovidingsimilarcoverageforsuchdirectors,officers,andemployees.ARTICLEXIV.WithdrawalfromMembership.AnymembermaywithdrawfromURSAafterthemember’sinitialone(1)yeartermattheendofanypolicyyearbygivingatleastninety(90)daysnoticeinwritingtotheBoardofitsdesiretowithdraw.AnymembermaywithdrawfromCIRSAwithinfifteen(15)daysaftertheadoptionofanamendmenttothesebylawsbygivingnoticeinwritingtotheboardofitsintenttowithdraw.Thewithdrawnmembershallnotbeentitledtoanyreimbursementofcontributionsthataretobepaidorthatshallbecomepayableinthefuture,andshallcontinuetobeobligatedtomakeanypaymentforwhichsuchobligationarosepriortosuchwithdrawal.ARTICLEXV.ExpulsionofMembers.(1)Byatwo-thirds(2/3)voteofthememberspresentatameeting,anymembermaybeexpelled.Suchexpulsion,whichshalltakeeffectsixty(60)daysaftersuchmeeting,maybecarriedoutforoneormoreofthefollowingreasons:(a)FailuretomakeanypaymentsduetoURSA.(b)FailuretoundertakeorcontinuelossreductionandpreventionproceduresadoptedbyCIRSA.(c)FailuretoallowCIRSAreasonableaccesstoallfacilitiesandrecordsofthemembernecessaryforproperadministrationofCIRSA.(d)FailuretofullycooperatewithCIRSA’sattorneys,claimsadjustersorotheragent,employee,orofficerofCIRSA.Ce)FailuretocarryoutanyobligationofamemberwhichimpairstheabilityofCIRSAtocarryoutitspurposeorpowers.—(2)NomembermaybeexpelledexceptafternoticefromtheBoardof.theallegedfailurealongwiththereasonableopportunityofnotlessthanthirty(30)daystocuretheallegedfailure.Themembermayrequestahearingbefore:themembersbeforeanyfinaldecision,whichshallbeheldwithinfifteen(15)daysaftertheexpirationofthetimetocurehaspassed.TheBoardshallpcesentthecaseforexpulsiontothemembers.Thememberaffectedmaypresentitscase.Adecisionbythemembershiptoexpelamemberafternoticeandhearingandfailure.—.tocure•t3allegeddefectshallbefinalandtakeeffectsixty(60)daysafterthedecisiontoexpelisapprovedbythemembers.Afterexpulsion,theformermembershallbeliableforanyunpaidcontributionsorotherchargesproratatotheeffectivedateofexpulsion,andshallnotbeentitledtoreimbursementofcontributionsthataretobepaidorthatshallbecomepayableinthefuture.7 00ARTICLEXVI.ContractualObligation.ThisdocumentshallconstituteanintergovernmentalcontractamongthoseunitsoflocalgovernmentwhichbecomemembersofCIRSA.ThetermsofthiscontractmaybeenfoftedincourtbyCIRSAitselforbyanyofitsmembers.Theconsiderationforthedutiesherewithimposeduponthememberstotakecertainactionsandtorefrainfromcertainotheractionsshallbebaseduponthemutualpromisesandagreementsofthememberssetforthherein.TheseBylawswhenproperlyapprovedbytheproperauthorityofthemembershallbetheintergovernmentalcontract.Acertifiedcopyoftheordinance,.resolutionorotherdocumentofapprovalforeachmemberaccompaniedbyanattorney’scertificationofproperauthorityandadoption,shallbeattachedtotheoriginalBylawsonfilewithCIRSA.Provided,however,thatexcepttotheextentofthelimitedfinancialcontributionstoCIRSAagreedtohereinorsuchadditionalobligationsasmaycomeaboutthroughamendmentstotheseBylaws,nomemberagreesorcontractshereintobeheldresponsibleforanyclaimsintortorcontractmadeagainstanyothermember.ThecontractingpartiesintendinthecreationofCIRSAtoestablishanorganizationforjointriskmanagementonlywithinthescopehereinsetoutandhavenothereincreatedasbetweenmemberandmemberanyrelationshipofsurety,indemnificationorresponsibilityforthedebtsoforclaimsagainstanyothermember.ARTICLEXVII.Severability.Intheeventthatanyarticle,provision,clauseorotherpartoftheseBylawsshouldbeheldinvalidorunenforceablebyacourtofcompetentjurisdiction,suchinvalidityorunenforceabilityshallnotaffectthevalidityorenforceabilitywithrespecttootherarticles,provisions,clauses,applicationsoroccurrences,andtheseBylawsareexpresslydeclaredtobeseverable.