HomeMy WebLinkAboutResolution - 2500 STATE OF CALIFORNIA ) RESOLUTION NO. 2500
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY OF SAN JACINTO TO AUTHORIZE THE
AMENDMENT OF ARTICLE 19(c) OF THE AMENDED AND RESTATED
JOINT POWERS AGREEMENT ("JPA") OF THE PUBLIC ENTITY RISK
MANAGEMENT AUTHORITY ("PERMA") TO INCREASE THE NOTICE
REQUIRED FOR A MEMBER'S WITHDRAWAL FROM A COVERAGE
PROGRAM FROM NINETY (90) DAYS TO SIX (6) MONTHS AND
VESTING WITH THE EXECUTIVE COMMITTEE THE AUTHORITY TO
ASSESS AN EARLY-WITHDRAWAL CHARGE TO A MEMBER THAT
DOES NOT PROVIDE THE REQUIRED SIX (6) MONTH NOTICE.
EFFECTIVE JULY 1, 2004
WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government
Code permits two or more public agencies by agreement to exercise jointly powers
common to the contracting parties; and
WHEREAS, California Government Code Section 990.4 provides that a local
public entity may self-insure, purchase insurance through an authorized carrier, or
purchase insurance through a surplus line broker, or any combination of these; and
WHEREAS, Article 24 of the JPA allows the JPA to be amended at any time by a
vote of two-thirds of the member organizations, acting through their governing boards;
a n d
WHEREAS, PERMA currently has 26 members, thus requiring 18 members to
vote to amend the JPA to make an amendment effective;
WHEREAS, the City Council of the City of San Jacinto is the Governing Board of
a member of PERMA; and
WHEREAS, Article 19(c) of PERMA's amended and restated Joint Powers
Agreement currently states:
Any member having completed three (3) years as a party to this
Agreement may withdraw from its status as a member only at the end of a
policy year for the program, and only if it gives the Authority at least ninety
(90) days' advance written notice of such action.
WHEREAS, this Governing Board desires to have Article 19(c) of PERMA's
Amended and Reinstated Joint Powers Agreement amended to increase the notice
required for a member's withdrawal from a coverage program from ninety (90) days to
six (6) months and to vest with the Executive Committee the authority to determine and
assess at its discret on an early-withdrawal charge to a member that does not provide
the required six (6) months notice; and
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WHEREAS, this amendment will become effective on the day that PERMA
receives the eiyhteenth (18th) affirmative member vote to make this amendment to the
r. JPA.
NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City
Council of the City of San Jacinto, California, as follows:
Section 1) Amend Article 19(c) of PERMA's JPA to state as follows:
Any member having completed three (3) years as a party to this
Agreement may withdraw from its status as a participant in a program
only at the end of a policy year for the program, and only if it gives the
Authority at least six (6) months advance written notice of such action.
The Authority may assess an early-withdrawal charge for any such
member that withdraws from a program without providing six (6) months
advance written notice. The early-withdrawal charge is to be determined
in the discretion of the Executive Committee based upon all costs and
damages resulting to the Authority because of the member's withdrawal
on short notice. The early-withdrawal charge shall not exceed the
withdrawing member's annual premium for the program from which it is
withdrawing.
Section 2) the City Council of the City of San Jacinto, California, authorizes and
directs the Finance Director, as the PERMA Board Member, to execute an
amended and restated JPA incorporating the amendments set forth above.
APPROVED AND ADOPTED this 18t" day of December, 2003, by the following
vote:
Ayes: Carlson-Buydos, Conner, Shaw, Ayres
Nays: None
Absent: Stubblefield
Abstain, None
City of San Jacinto
B m Ayre , Mayor
ATTEST:
~' orothy L. C uinard, City Clerk
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