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RESOLUTION NO. 2003-87
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH AMENDING THE LIABILITY RISK COVERAGE AGREEMENT
AND THE JOINT POWERS AGREEMENT CREATING THE BIG
INDEPENDENT CITIES EXCESS POOL JOINT POWERS AUTHORITY,
APPROVING THE PREPAYMENT OF BASIC PREMIUM,AND
AUTHORIZING, RATIFYING, AND APPROVING CERTAIN OTHER
DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH
WHEREAS,the City of Huntington Beach is a municipal corporation organized and
existing under and by virtue of the constitution and laws of the State of California(the"City';
and
The Cities of Huntington Beach, Oxnard, Pomona, San Bernardino, and Santa Ana
formed the Big Independent Cities Excess Pool Joint Powers Authority, a joint exercise of
powers entity organized and existing under the laws of the State of California(the"Authority");
and
The Authority and the Cities of Huntington Beach, Oxnard, Pomona, San Bernardino,
and Santa Ana entered into the Liability Risk Coverage Agreement dated as of October 1, 1988
(the"Original Agreement"), as amended by the First Amendment to Liability Risk Coverage
Agreement dated as of December 1, 1988 (the "First Amendment"), by and among the
Authority and the Cities of Huntington Beach, Oxnard, Pdlnona, San Bernardino, and Santa Ana,
and by Resolution No. 95-1, adopted by the Board of Directors of the Authority (the "Board")
on November 25, 1995 (the "Second Amendment") (the Original Agreement, as amended by
the First Amendment and the Second Amendment, is referred to herein as the "Agreement"); .
and
The City of Pomona("Pomona")has been expelled from Coverage (as defined in the
Agreement) as a Participant(as defined in the Agreement)under the Agreement, effective as of
August 18, 2003; and
The City has been informed that the City of West Covina("West Covina") has delivered
to the Authority an application to be admitted as a new Participant; and
In connection with the admission of West Covina as a new Participant and the expulsion
of Pomona from Coverage as a Participant under the Agreement, certain provisions of the
Agreement and the exhibits thereto are required to be amended, supplemented, or waived, as
applicable; and
The City proposes to enter into a Third Amendment to Liability Risk Coverage
Agreement (the "Third Amendment") by and among the Authority and the Cities of Huntington
Beach, Oxnard, San Bernardino, Santa Ana, and West Covina,to provide for, among other
things, the admission of West Covina as a new Participant; and
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Res. No. 2003-87
In connection with the admission of West Covina as a new Participant, West Covina is
required under the Agreement, among other things,to become a member of the Authority under
the Joint Powers Agreement Creating the Big Independent Cities Excess Pool Joint Powers
Authority(the "JPA Agreement"), executed by each of the Cities of Huntington Beach, Oxnard,
Pomona, San Bernardino, and Santa Ana in September 1998; and
In connection with the expulsion of Pomona from Coverage as a Participant under the
Agreement, Pomona shall be deemed under Article 17 of the JPA Agreement to have withdrawn
from the JPA Agreement and shall no longer be a party to the JPA Agreement; and
In connection with the admission of West Covina as a member of the Authority and the
withdrawal of Pomona as a member of the Authority, certain provisions of the JPA Agreement
are required to be amended or supplemented, as applicable; and
The City proposes to enter into a First Amendment to Joint Powers Agreement Creating
the Big Independent Cities Excess Pool Joint Powers Authority(the "JPA Amendment") by and
among the Cities of Huntington Beach, Oxnard, San Bernardino, Santa Ana, and West Covina, to
provide for, among other things,the admission of West Covina as a member of the Authority and
the acknowledgement of the withdrawal of Pomona as a member of the Authority; and
Section 11.2 of the Agreement permits all Participants (i.e., the Cities of Huntington
Beach, Oxnard, San Bernardino, and Santa Ana), with at least two-thirds approval of the
members of the Board, to exercise as a group the option to prepay the Basic Premium (as defined
in the Agreement) of all Participants pursuant to Section 11.1 or 11.3 of the Agreement, as
applicable, in the manner and upon the terms set forth in such applicable section; and
The City desires to approve the prepayment of its Basic Premium, subject to the
conditions set forth herein; and
The City desires to approve, ratify, and confirm in all respects all previous actions taken
by the City or any member of this City Council of this City(the "City Council")or any other
officer or staff member of the City with respect to the foregoing and
The forms of the following documents are on file with the City Clerk of the City (the
"City Clerk") and have been submitted to this City Council, and the Risk Manager of the City
(the "Risk Manager"), in consultation with the City Attorney of the City (the"City Attorney"),
has examined and approved each document and has recommended that this City Council direct
the completion, where appropriate, and the execution and delivery of such documents and the
consummation of the foregoing recitals:
(a) the Third Amendment; and
(b) : the JPA Amendment;
NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby
find, determine, resolve and order as follows:
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Res. No. 2003-87
SECTION 1. The foregoing recitals, and each of them, are true and correct.
SECTION 2. The Third Amendment is approved in substantially the form presented at
this meeting. Each of the Mayor of the City (the "Mayor") and the Mayor Pro Tem of the City
(the"Mayor Pro-Tem"), acting alone, is hereby authorized and directed, for and in the name of
the City,to execute and deliver the Third Amendment with such changes, insertions, and
omissions as such officer or the Risk Manager shall require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
SECTION 3. The JPA Amendment is approved in substantially the form presented at
this meeting. Each of the Mayor and the Mayor Pro Tem, acting alone, is hereby authorized and
directed, for and in the name of the City, to execute and deliver the JPA Amendment with such
a changes, insertions, and omissions as such officer or the Risk Manager shall require or approve,
such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 4. The option to prepay all of the City's Basic Premium at any time pursuant
to Section 11.2 of the Agreement is approved, without further action by this City Council;
provided that all of the following conditions are satisfied: (a) all Participants(i.e.,the Cities of
Huntington Beach, Oxnard, San Bernardino, and Santa Ana) shall have approved such option to
prepay, so that such option shall be exercised by all such Participants as a group; (b) at least two-
thirds of the members of the Board shall have so approved the exercise of such option to prepay
all Basic Premium; (c)Undesignated Reserves (as defined in the Agreement) in the Claims
Payment Fund (as defined in the Agreement), moneys in the Debt Service Reserve Fund (as
defined in the Agreement), or any other lawfully available moneys shall be used for such
prepayment; and (d) notwithstanding the last paragraph of Section 11.2 of the Agreement,the
majority of the Participant members of the Board shall have determined that the Authority's
pooled self-insurance program shall not terminate by virtue of such prepayment of Basic
Premium. The Board shall determine the time that any such optional prepayment of Basic
Premium shall be made under Section 11.2 of the Agreement and whether any such optional
prepayment shall be exercised pursuant to Section 11.1 or 11.3 of the Agreement, in the manner
and upon the terms set forth in such applicable section.
SECTION 5. The Mayor, the Mayor Pro Tem,the Risk Manager, the City Clerk,the
City Attorney, and any other proper officer of the City are hereby authorized and directed,jointly
and severally, to do any and all things and to execute and deliver any and all documents
necessary or proper for carrying out the transactions contemplated by this Resolution or any of
the documents referred to herein, and to execute and deliver any and all certificates,
representations, opinion letters, and other documents necessary or desirable to accomplish the
transactions described in such documents or herein.
SECTION 6. Any document, the execution of which by the Mayor, the Mayor Pro Tem,
the Risk Manager, the City Clerk, the City Attorney, or any other proper officer of the City is
authorized by this Resolution, shall, in the absence or inability to act of such officer, be executed
by any authorized designee of such officer, such authorization to be given in writing.
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Res.No. 2003-87
SECTION 7. All actions previously taken by this City Council and by the officers and
staff of the City with respect to the matters addressed by this Resolution are hereby approved,
ratified, and confirmed in all respects, including, without limitation, all actions necessary or
desirable to provide for Coverage for West Covina, effective as of July 1, 2003.
SECTION 8. This Resolution shall take effect from and after its date of adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 1st day of December , 2003.
Ma
ATTEST: APPROVED AS TO FORM:
City Clerk City ttorney t
REVIEWED AND APPROVED: INITIATED AND APPROVED:
C�2� &2--4 e-�� 6
City Aeninistrator Director of inistrative ices
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Res. No. 2003-87
STATE OF CALIFORNIA
COUNTY OF ORANGE } ss:
CITY OF HUNTINGTON BEACH }
I, CONNIE BROCKWAY the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the 1st
day of December, 2003 by the following vote:
AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio Qlerk of the
City Council of the City of
Huntington Beach, California