Loading...
HomeMy WebLinkAbout91-047A RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF AN AMENDMENT TO JOINT POWERS AGREEMENT, AND APPROVING PARTICIPATION IN A LIABILITY INSURANCE PROGRAM AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO RESOLVED, by the Board of Supervisors of the County of Butte (The "County"): WHEREAS, the County is a member county of the CSAC Excess Insurance Authority (the "Authority") a joint exercise of powers authority established pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the California Government Code (The "JPA Law") and the provisions of that certain Joint Powers Agreement Creating the CSAC Excess Insurance Authority adopted October 5, 1979, as amended (the "Agreement"); and WHEREAS, the Authority has developed, and desires to fund and implement a revised excess insurance program for coverage for comprehensive liability insurance (the '+Liability Program") pursuant to the provisions of Article 14 of the Agreement, which Liability Program will, in part, revise the funding of the Comprehensive Liability Program established pursuant to Article 15 of the Agreement; and WHEREAS, the Liability Program contemplates the issuance by the Authority of revenue bonds of the Authority pursuant to the provisions of the JPA Law; and WHEREAS, the Authority has notified the County of the revision of the Liability Program pursuant to the Notice of the Revision of the Excess Insurance Program in the form attached hereto as Exhibit A (the "Program Notice"); WHEREAS, pursuant to Article 28 of the Agreement, the Agreement may be amended at any tithe by vote of two-thirds of the member counties, acting through their boards of supervisors; - 2- WHEREAS, the Authority desires to amend the Agreement pursuant to a Fourth Amendment to the Agreement in substantially the form attached hereto as Exhibit B, (the "Amendment") in conjunction with revising the Liability program; and WHEREAS, the County wishes to elect to enter the Liability Program to be implemented substantially as set forth in the Program Notice and to consent to the amendment of the Agreement as contemplated by the Amendment; NOW, THEREFORE, it is hereby ORDERED and DETERMINED by the Board of Supervisors of the County of Butte as follows: Section 1. The County hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to the public affairs of the County. Section 2. The County hereby elects to continue in the excess insurance program, as such program is revised and described in the Notice of Excess Insurance Program attached hereto as Exhibit A and to the extent such Program becomes effective, and the Chairman, County Administrative Officer or any other designated representative of the County is hereby authorized and directed to consent to any changes, additions or deletians to the provision of such Excess Insurance Program as may be subsequently presented to the County, such consent to act as conclusive evidence of said official's agreement, on behalf of the County, to such changes, additions or deletions. Section 3. The County hereby consents to the amendment of the Agreement, substantially as set forth in the Fourth Amendment to Joint Powers Agreement attached hereto as Exhibit B, and the Chairman, County Administrative Officer or any other designated representative of the County is hereby authorized and directed to execute said amendment, with such changes, insertions and omissions as may be approved by such official, said execution to act as conclusive evidence of said official's agreement, on behalf of the County, to such changes, insertions or omissions, and the Clerk of the Board of Supervisors is authorized to attest to such official's signature. -- 3- Section 4. The Chairman, County Administrative Officer, County Auditor/Controller, Clerk of the Board of Supervisors and all other designated officials of the County are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution. Section 5. This Resolution shall take effect upon its adoption by this Board of Supervisors. THE FOREGOING RESOLUTION was introduced by Supervisors Fulton , seconded by Supervisors McLauahlin and carried on this 23rd day of q~']^, 1991, by the fallowing vote: AYES: Supervisors McInturf, Campbell, McLaughlin, Fulton and Chair Dolan NOES : None ABSENT: None WHEREUPON, the Chairman declared the resolution adopted, AND SO ORDERED. ~.....~~ ty Board of Supervisors ATTEST: WILLIAM RANDOLPH, Chief Adminis~rat-de and Clerk of t Board By: Officer ~~# ~ a~i' ~:~urar~t ~ ~ ~~ 4 ,..~ .., _.~ .._ °~ Exhibit A NOTICE OF THE REVISION OF THE EXCESS Il~'SURANCE PROGRAM Pursuant to Article 14 of the Joint Powers Agreement Creating the CSAC Excess Insurance Program, as amended (the "JPA Agreement"), the member counties are hereby notified of the revision of the comprehensive liability excess insurance program {the "Program"). The revisions will amend the funding of the existing Comprehensive Liability Program establish by the Authority pursuant to Liability Risk Coverage Agreement dated June 1, 19$7 (the "COP Program") and governed by Article 15 of the JPA Agreement. This revision of the Program does not affect the Memorandum of Liability Coverage in effect on the date hereof. The revised Program will be implemented on behalf of all member counties which are currently participating in the COP Program, which election shall be evidenced by a resolution of the board of supervisors of such member counties. If the Program is implemented, member counties which currently aye not participating in the COP Program may elect to participate in the Program pursuant to a resolution of the board of supervisor of such member counties. The Program includes the issuance of tax-exempt revenue bonds by the Authority (the "Program Tax-Exempt Bonds"}, the proceeds of which, together with a portion of the proceeds of the existing Certificates of Participation (the "COPS"} issued in conjunction with the COP Program and now held in trust, will be used to defease the obligation of the Authority, and any obligation of the participating member counties in the COP Program, with respect to the existing COPS. The proceeds of the existing COPS remaining in u-ust upon such defeasance would be transferred to the Authority and used by the Authority for the establishment of a debt service reserve, if required, far the Program Tax-Exempt Bonds and payment of comprehensive liability claims. By electing to participate in the Program, each pai~icipating member county in the existing COP Program shall direct any benefits, financial or otherwise, which have accrued under the COP Program to be transferred to the Authority. The principal of and interest an the Program Tax-Exempt Bonds will be paid from annual premiums paid by the participating member counties to the Authority pursuant to Article 14 of the JPA Agreement. In addition to the Program Tax-Exempt Bonds, the Authoi~ty would issue taxable revenue bonds (the "Program Taxable Bonds"}, the proceeds of which, together with any investment earnings thereon, will be used for the payment of comprehensive liability claims, administration costs, excess comprehensive liability insurance premiums, and establishing reserves. The principal of and interest on the Program Taxable Bonds will be paid from annual premiums paid by the participating member counties to the Authority pursuant to Article 14 of the JPA Agreement. Each member county shall elect to participate in the Program by providing to the Authority within thirty {30) days of the date hereof a certified copy of a resolution of such member county which includes the election of such county to participate in the Program and approving the amendment of the JPA Agreement as set forth in the Fourth Amendment to the Joint Powers Agreement Creating the CSAC Excess Insurance Authority provided herewith. Dated: CSAC Excess Insurance Authority By: Exhibit B FOURTH AMENDMENT TO 10INT POWERS AGREEMENT CREATING THE CSAC EXCESS INSURANCE AUTHORITY This Fourth Amendment to Joint Powers Agreement Creating The CSAC Excess Insurance Authority {the '`Fourth Amendment `} is executed in the State of California by and among those counties organized anti existing under the Canstitution of the State of Califarnia which are parties signatory to the Joint Powers Agreement Creating The CSAC Excess Insurance Authority, as amended (the "Agreement"}. RECITALS WHEREAS, Article 28 of the Agreement provides that the Agreement may be amended at any time by vote of two-thirds of the member counties, acting through their board of supervisors; WHEREAS, two-thirds of the member counties of the Authority, acting through their boards of supervisors, have voted to amend the Agreement pursuant to the provisions of this Fourth Amendment; NOW THEREFORE, the parties agree as follows: Section 1. Amendments of the,Agreement. (A) The concluding sentence of the first paragraph of subsection (b)(2) of Article 14 is hereby amended and restated it its entirety as follows: ~ '`The premium for each participating county shall include that county's share of expected program losses, program reinsurance costs, and program administrative costs for the year, plus that county s share of the Authority's general expenses allocated to the program by the Board." Any premium paid by a participating county pursuant to this Article 14 may be pledged to the payment of obligations of the Authority, the proceeds of which may be used to fund insurance programs of the Authority. (B) Article 15 is hereby deleted in its entirety and any reference to Article 15 and the provisions thereof in this Agreement are also deleted in their entirety and shall be null and void. (C) The ftrst sentence of subsection (b) of Article 23 is hereby amended by the addition thereto of the following words at the end thereof: '`... or to any benefits, financial or otherwise, accruing as a result of such county's participation in any excess insurance program of the Authority." (D) The first sentence of subsection (c) of Article 23 is hereby amended and restated in its entirety to read as follows: '`(c) Except as provided in (d) below, a county shall pay any premium charges, program administrative costs and program reinsurance costs which the Baard of Directors determines are due from the county for losses and costs incurred during the entire coverage year in which the county was a participant in such program regardless of the date of entry into such program." Such premium charges, program administrative casts and pragram reinsurance costs may be used by the Authority to pay debt service an obligations of the Authority, the proceeds of which may be used to fund insurance programs of the Authority. (E) Subsection (a) of Article 2~ is hereby amended and restated in its entirety as follows: "(a} This Agreement may be terminated by three-fourths of the member counties, acting through their boards of supervisors; provided, however, so long as obligations of the Authority remain outstanding, this Agreement and the Authority shall continue to exist until such time as such obligations are paid and discharged in full or provisions have been made far the payment and discharge in full of such obligation; and further provided, however, that this Agreement and the Authority shall continue to exist after such election for the purpose of disposing of all claims, distributing all asseu, and performing all other functions necessary to conclude the affairs of the Authority." {F) Article 28 is hereby amended and restated in its entirety as follows: "This Agreement may be amended at any time by vote of two-thirds of the member counties, acting through their boards of supervisors; provided, however, such amendment shall not adversely affect payments of obligations of the Authority." {G) The numbering of the Articles of this Agreement is hereby amended and restated in their entirety in order to give effect to the amendment of this Agreement contained in Section 1(B} hereof. Section 2. Execution in Caunte ans. This Fourth Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 3. Applicable Law. This Fourth Amendment shall be governed by and construed in accordance with the laws of the State of California. Section 4. Effective Date. The provisions of this Fourth Amendment and the amendments made hereby shall take affect upon the Authority receiving notice of the approval by the board of supervisors of two-thirds of the member caunues and the issuance and delivery of obligations of the Authority, the proceeds of which are used to defease any obligations executed and delivered pursuant to Article l5 {prior to the amendment hereof) of this Agreement. IN WITNESS WHEREOF, the undersigned party hereto has executed the Fourth Amendment on the date indicated below. DATE: APr ~-~ 23 ~ ~ 9 9 ~ COUNTY OF B N, Chair ~i ~3~ s ~ y ' ~c~1 -~y _ ., ::i ~..~:~ .. ~.._..-r... f~i i....:f .. .~ _ .. .. ~. ~~.. ~~~ I