HomeMy WebLinkAbout6314RESOLUTION NO. 6314
A RESOLUTION APPROVING THE CITY OF PUEBLO'S
PARTICIPATION IN COLORADO INTERGOVERNMENTAL
RISK SHARING AGENCY FOR WORKERS' COMPENSATION
AND AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE ALL AGREEMENTS REQUIRED
THEREFOR
WHEREAS, the City of Pueblo has authority under Article XIV,
Section 18(2)(a) of the Colorado Constitution, and Sections 8-44 -
101(1)(c) and (3), 8 -44 -110, and 29 -1 -201, et sew. Colorado
Revised Statutes, as amended, to form and participate in a self -
insurance pool for workers' compensation coverages;
WHEREAS, the City Council of the City of Pueblo has reviewed
contracts to cooperate with other Colorado cities and towns to
form a self- insurance pool for workers' compensation coverages,
copies of which are attached hereto as Exhibits A and B
incorporated into this Resolution; and,
WHEREAS, the City Council finds that participation in such a
pool would be in the best interest of the City, its employees, and
its taxpayers; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO; that:
SECTION 1
The contract entitled Bylaws and Intergovernmental Agreement,
Colorado Intergovernmental Risk Sharing Agency for Workers' Com-
pensation, a copy of which is attached hereto as Exhibit A, and
incorporated into this Resolution by this reference, is hereby
approved.
SRCTTON 9-
The contract entitled Agreement for Management Services, a
copy of which is attached hereto as Exhibit B, and incorporated
into this Resolution by this reference, is hereby approved.
SECTION 3
The President of the City Council of the City of Pueblo is
r
hereby authorized and directed to execute Exhibits A and B on
behalf of the City of Pueblo.
CVOMTnM d
The City is hereby directed to transmit to Colorado Inter-
governmental Risk Sharing Agency for Workers' Compensation, c/o
Jack McHugh, Assistant Director, CIRSA /WC, 950 South Cherry
Street, Suite 800, Denver, Colorado, 80222, executed and attested
copies of this Resolution and Exhibits A and B.
SECTION 5
Ralph A. Williams is hereby designated as the initial Voting
Representative to the Colorado Intergovernmental Risk Sharing
Agency for Workers' Compensation and Bret Kelly is hereby desig-
nated as the initial Alternate Voting Representative for the City
of Pueblo.
INTRODUCED: December 27, 1988
B DOUGLAS L. RING
Councilman
ATTEST: APPROVED:
C'ty clerk Vice -Pr s' e t of t e ity Council
TJ 32.53
-2-
M
EXHIBIT A
BYLAWS AND INTERGOVERNMENTAL AGREEMENT
COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY
FOR WORKERS' COMPENSATION
CIRSA /WC
(06 -88)
so
v
BYLAWS AND INTERGOVERNMENTAL AGREEMENT
COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY
FOR WORKERS' COMPENSATION
CIRSA /WC
(06 -88)
M
BYLAWS AND INTERGOVERNMENTAL AGREEMENT
COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY
FOR WORKERS' COMPENSATION
ARTICLE I . Definitions As used in this agreement, the
following terms shall have the meaning hereinafter set out:
(1) BOARD Board of Directors of CIRSA /WC.
(2) BYLAWS This Bylaws and Intergovernmental Agreement,
Colorado Intergovernmental Risk Sharing Agency for Workers'
Compensation.
(3) CIRSA Colorado Intergovernmental Risk Sharing Agency.
(4) CIRSA /WC The Colorado Intergovernmental Risk Sharing
Agency for Workers' Compensation established pursuant to the
Constitution and the statutes of Colorado by this
intergovernmental agreement.
(5) CLAIM YEAR. Any twelve consecutive month period
established by the Board.
(6) DIRECTOR A Director on the Board.
(7) EXCESS INSURANCE Insurance purchased by CIRSA /WC from an
insurance company approved by the Insurance Commissioner of the
State of Colorado.
(8) EXECUTIVE DIRECTOR Executive Director of CIRSA /WC.
(9) FISCAL YEAR , January 1 to December 31.
(10) LOSS FUND A fund of money established by the Board for a
claim year to pay losses and loss adjustment expeses covered in
that claim year.
(11) MEMBER A municipality which enters into this
intergovernmental agreement.
ARTICLE II Creation of CIRSA /WC The Colorado
Intergovernmental Risk Sharing Agency for Workers' Compensation,
a separate and independent governmental and legal entity, is
hereby formed by intergovernmental agreement by Members pursuant
to the provisions of 29 -1 -201 et seg ., C.R.S. as amended, 8-44 -
101(1)(c) and (3), and 8 -44 -110, C.R.S., as amended, and Colorado
Constitution, Article XIV, Section 18(2).
CIRSA /WC 07/88 2
ARTICLE III Purposes (1) The purposes of CIRSA /WC are to
provide Members a workers' compensation self - insurance pool to
provide defined coverages, and claims and risk management
services related thereto.
(2) It is the intent of the Members of CIRSA /WC to create an
entity to defend and indemnify, in accordance with these Bylaws,
any Member of CIRSA /WC against stated liability or loss, to the
limit of the financial resources of CIRSA /WC available'to pay
such liability on loss. It is also the intent of the Members to
have CIRSA /WC provide continuing stability and availability of
needed coverages at reasonable costs.
(3) All income and assets of CIRSA /WC shall be at all times
dedicated to the exclusive benefit of its Members.
ARTICLE IV Source of Money; Non - Waiver of Immunity (1) All
CIRSA /WC monies are monies plus earned interest derived from its
Members which are municipalities within the State of Colorado.
(7) T *_ is the intent of the Members that, by entering into
this intergovernmental agreement, they do not waive and are not
waiving any immunity provided to the Members or their employees
by any law.
ARTICLE V . CIRSA /WC Powers (1) The powers of CIRSA /WC to
perform and accomplish the purposes set forth above shall be the
following, to be exercised within the budgetary limits of
CIRSA /WC and subject to the procedures set forth in these Bylaws:
(a) Retain agents, employees and independent contractors.
(b) Purchase, sell, encumber and lease real property and
purchase, sell, encumber and lease e i - _
personal property. � p mkt � machine z`Y. and _ - --
(c) Invest money as allowed by Colorado statutes for
municipalities in 24 - 75 - 601 through 603, and 24 - 75 - 701
through 702, C.R.S., as amended, and such other statutes as
may from time to time apply to investments by Colorado
municipalities; or as allowed by Colorado statutes for
commercial insurance companies licensed in the State of
Colorado, whichever types of statutes are the more
restrictive.
(d) Carry out educational and other programs relating to
risk management.
CIRSA /WC 07/88 3
(e) Purchase aggregate or specific excess insurance, or
both, or reinsurance, to supplement any loss fund, as the
Board deems prudent.
(f) Establish reasonable and necessary loss reduction and'
prevention procedures to be followed by the Members.
(g) Provide risk management and claim adjustment
services, or contract for such services, including the defense
and settlement of claims.
(h) Carry out such other activities as are necessarily
implied or required to carry out the purposes of CIRSA /WC or
the specific powers enumerated in this Article.
(i) Sue and be sued.
(j) Enter into contracts.
(k) Reimburse Directors for reasonable and approved
expenses, including expenses incurred in attending Board
meetings.
(1) Purchase fidelity bonds from an insurance company
approved by the Insurance Commissioner of Colorado to do
business in Colorado.
ARTICLE VI . Participation (1) The membership of CIRSA /WC
shall be limited to municipalities which are members of the
Colorado Municipal League and which properly enter into and adopt
these Bylaws.
(2) New Members shall be admitted only by a vote of the Board,
subject to the payment of such sums and under such conditions as
the Board shall in each case or from time -to -time establish.
(3) The Members shall be notified in writing of each proposed
new Member. Ten percent (10 %) of the Members may request a
membership meeting to consider admission of a new Member. The
request shall be in writing and must be received at the CIRSA /WC
offices no later than fifteen days after mailing of the notice.
If such request is timely received, a membership meeting shall be
called by the Chairman and the new Member shall be admitted only
by a two - thirds (2/3) vote of the Members present at the meeting.
CIRSA /WC 07/88 4
Y
ARTICLE VII Members' Powers and Meetings
meeting thereof shall have -the power to:
(1) The Members at a
(a) Amend the Bylaws by a two - thirds (2/3) vote of the
Members present at a meeting, but no amendment shall take
effect sooner than sixteen (16) days after adoption of the
amendment. Written notice of any proposed amendment shall be
provided to each Member at least fifteen days in advance of a
vote on the amendment. If required_ by regulations or
guidelines issued by the Insurance Commissioner of'Colorado
no amendment shall take effect until a copy of the proposed or
adopted amendment has been filed with the Insurance
Commissioner of Colorado and has been approved by him, but
approval shall be considered given by the Commissioner thirty
days after such filing with the Commissioner unless prior
Commissioner notice has been received.
(b) Admit Members as provided in Article VI, and
determine expulsion appeals pursuant to Article XV.
(c) Remove a Director by a two - thirds (2/3) vote of the
Members present at a meeting.
.(2) Meetings of the Members shall be held as follows:
(a) Members shall meet at least semi - annually at a time
and place to be set by the Board, with notice mailed to each
Member at least fifteen (15) days in advance.
(b) Special meetings may be called by the Board or by a
petition of one -third (1/3) of the Members. Notice of special
meetings shall be mailed to each Member at least fifteen (15)
days in advance.
(c) The Chairman of the Board will preside at the
meetings.
(d) Thirty (30) percent of the total number of Members of
CIRSA /WC as of the date of any meeting shall constitute a
quorum to do business during that meeting.
(e) No absentee or proxy voting shall be allowed.
(f) Each Member shall be entitled to one vote on each
issue.
CIRSA /WC 07/88 5
ARTICLE VIII Obligations of Members (1) The obligations of
Members of CIRSA /WC shall be as follows:
(a) Pay promptly all annual and supplementary
contributions or other payments to CIRSA /WC at such times and
in such amounts as shall be established by the Board pursuant
to these Bylaws. Any delinquent payments shall be paid with
interest which shall be equivalent to the prime interest rate
on the date of delinquency of the bank which invests the
majority of the CIRSA /WC funds. Payments will be considered
delinquent forty -five (45) days following the due date.
(b) Designate a voting representative and alternate for
the Members' meetings. A Members' voting representative must
be an employee or officer of the Member, but may be changed
from time -to -time.
(c) Allow CIRSA /WC and its agents, officers and employees
reasonable access to all facilities of the Member and all
Member records, including but not limited to financial
records, as required for the administration of CIRSA /WC.
(d) Allow CIRSA /WC to make decisions regarding, and to
designate attorneys to represent the Member in, the
investigation, settlement and litigation of any claim made
against the Member within the scope of loss protection
furnished by CIRSA /WC.
(e) Cooperate fully with CIRSA /WC's attorneys, claims
adjusters and any other agent, employee, or officer of
CIRSA /WC in activities relating to the purposes and powers of
CIRSA /WC.
(f) Follow the loss reduction and prevention procedures
established by CIRSA /WC.
(g) Report to CIRSA /WC, in' he form required by the Board
and as promptly as possible, all incidents or occurrences
which could reasonably be expected to result in CIRSA /WC being
required to consider a claim against the Member, its agents,
officers, or employees, within the scope of coverages
undertaken by CIRSA /WC.
(h) Adopt a risk management statement approved by the
Board.
(i) Maintain an active safety committee or safety
coordinator.
CIRSA /WC 07/88 6
(j) Report to CIRSA /WC as soon as reasonably possible,
the addition of new programs and facilities or the significant
reduction or expansion of existing programs and facilities or
other acts which may cause material changes in the Member's
exposures.
(k) Participate in coverage of losses and pay
contributions as established and in the manner set forth by
the Board.
(1) Contract with CIRSA for management services, the
contract to specify the management services to be provided and
the manner of establishing and paying the cost of such
services.
ARTICLE IX . Contributions (1) The Board shall establish
contributions to be paid by the Members.
(2) The contributions may include contributions to a reserve
fund. The reserve fund may be used only to pay claims, and
expenses related thereto, accepted by the Board pursuant to
Article XI(1)(p) for which previous contributions for a claim
year are insufficient. If the reserve fund is used to pay
claims, and expenses related thereto, accepted by the Board
pursuant to Article XI(1)(p), the Board shall require the Members
and any former Members for the particular claim year to replenish
the reserve fund by the levy of one or more additional
contributions. Such contributions shall be in the same
proportions as the initial contributions for the particular claim
year of all such Members. All Members and former Members shall
pay such contributions and, by virtue of their membership during
any claim year, waive the right to assert that the levy of
additional contributions pursuant to this Article for such claim
year is barred by any statute of limitations.
(3) The Board shall annuall review and. report to the Members
the contributions to the reserve fund, the earnings thereon and
the expenditures therefrom. The Board shall credit Members and
former Members making such contributions, in the same proportions
as the contributions were made, all amounts in excess of the
amounts which the Board reasonably determines to be necessary to
pay claims and expenses related thereto, including sufficient
funds for payments which might be made pursuant to Article
XI(1)(p). Credits shall be made against future contributions of
Members and shall be paid to former or withdrawing Members. No
credit shall be given to any Member or paid to any former or
withdrawing Member which owes any amount to CIRSA /WC or CIRSA
until the amount owing is paid, and any credit or payment to be
made under this Article IX may be used to pay such amount.
CIRSA /WC 07/88 7
(4) Any money contributed for a claim year to the loss fund
and not needed for that claim year may be credited to the reserve
fund or may be credited against future contributions of Members
and paid to former or withdrawing Members which were Members
during that claim year, or both, as the Board may determine,
except as otherwise specifically provided in these Bylaws or in
policies adopted by the Members as authorized in these Bylaws.
All credits and payments shall be in similar proportions as the
contributions paid by the Members for the particular claim year.
The Board shall reasonably determine whether money is available
for reserve fund credit or contribution credit and payment, or
both, and the timing and amount thereof. No credit shall be
given to any Member or paid to any former or withdrawing Member
which owes any amount to CIRSA /WC or CIRSA until the amount owing
is paid, and any credit or payment to be made under this Article
IX may be used to pay such amount.
(5) Members shall have the obligation to repay CIRSA for its
reasonable costs incurred in the creation of CIRSA /WC within such
time and in such amounts as the Board may provide, and for the
expenses reasonably associated.with CIRSA's administration of
CIRSA /WC during 1988 which exceed the amount of .$79,700, within
such time and in such manner as the Members and Board may agree.
ARTICLE X. Board of Directors (1) The Board will be composed
of those persons who, from time to time, comprise the Board of
Directors of CIRSA. The term of each Director shall coincide
with the Director's term on the Board of Directors of CIRSA.
(2) The officers of CIRSA /WC will be those persons who, from
time to time, comprise the offices of CIRSA. The term of each
officer shall coincide with the officer's term as an officer of
CIRSA. z
(3) A vacancy shall exist on the Board at the same time the
person vacates the position on the Board of Directors of CIRSA.
The vacancy shall be filled by the person filling the position on
the Board of Directors of CIRSA.
(4) Sections (1), (2) and (3) of this Article X are repealed
on January 1, 1990.
(5) During 1989, the - members shall elect persons to the Board
of Directors who shall assume office did January 1, 1990. At that
election, the Director receiving the largest number of votes in
each population category set out in section (6) of this Article X
shall be elected for a two -year term, with the remaining
CIRSA /WC 07/88 8
it
Directors serving one -year terms. The successors of each shall
be elected for two -year terms.
(6) Effective January 1, 1990, the Board of Directors will be
composed of seven (7) Directors, each from a different member,
elected from among the Members' voting representatives as
follows:
(a) Two Directors, each from a different Member under ten
thousand (10,000) population.
(b) Two Directors, each from a different Member of ten
thousand (10,000) to forty thousand (40,000) population.
(c) Two Directors, each from a different Member above
forty thousand (40,000) population.
(d) One director at large.
(e) Every year population will be determined by the
population figures then most recently used by the Colorado
Municipal League to calculate its membership dues.
(f) No person shall be removed from office as a Director
by reason of any change, during the term of office for which such
person was elected or appointed, in the population categories
described in (6)(a), (b) and (c) of this Article X or in the
population of the Director's municipality.
(g) Terms of the Directors will be two -year- staggered
terms, except as provided in Section (5) of this Article X.
(7) The election of Directors will be made by the members at
their annual meeting in 1989 and each year thereafter. A
Director shall assume office at the first Board meeting following
his or her election, ecept_as provided in Section (5) of this
Article X.
(8) At the first Board meeting following January 1, 1990, and
thereafter at the first Board Meeting following each annual
meeting, the Board shall elect a chairman, vice - chairman,
secretary /treasurer and other officers as appropriate. Each
officer shall serve until his or her successor is elected, but
there shall be no limit on the number of terms served by any
person.
(9) The Board may fill vacancies in the Board by majority vote
of the remaining directors for the unexpired term.
CIRSA /WC 07/88 9
k
(10) If CIRSA dissolves prior to January 1, 1990, the persons
serving on the CIRSA /WC Board of Directors at the time of
dissolution shall continue to serve on the Board until January 1,
1990. This section 10 is repealed effective January 1, 1990.
ARTICLE XI Powers and Duties of the Board of Directors (1) The
Board shall have the power to:
(a) Admit new Members as provided in Article VI and adopt
criteria for new Members.
(b) Establish contributions to be paid by the Members, at
such time or times and in such amounts as the Board deems
necessary to protect the solvency of CIRSA /WC and appropriate for
the operation of CIRSA /WC.
(c) Establish the types of losses to be covered, limits
of liability on any excess insurance or reinsurance policies, and
the types of deductions which CIRSA /WC provides.
(d) Select all service providers necessary for the
administration of CIRSA /WC.
(e) Set the dates, places and provide an agenda for Board
and Members' meetings.
(f) Exercise all powers of CIRSA /WC except powers
reserved to the Members.
(g) Hire and discharge personnel or delegate such
authority to the Executive Director of CIRSA /WC.
(h) Make reports to the Members at their meetings.
(i) Provi4t.. for claims and loss control procedures,
establish conditions which must be met prior to the payment or
defense of a claim, and deny a claim or the defense of a claim if
the conditions are not met.
(j) Provide for the investment (subject to the limits of
Article V (1) (c)) and disbursement of funds.
(k) Establish rules governing its own conduct and
procedure and the powers and duties of its officers, consistent
with these Bylaws.
(1) Form committees and provide other services as needed
by CIRSA /WC. The Board shall determine the method of appointment
and terns of committee members.
CIRSA /WC 07/88 10
(m) Do all acts necessary or proper for the operation of
CIRSA /WC and implementation of these Bylaws subject to the limits
of the Bylaws and not in conflict with these Bylaws.
(n) Dissolve CIRSA /WC and disburse its assets by a two -
thirds (2/3) vote of the entire membership, but a notice of
intent to dissolve CIRSA /WC shall be given to the Insurance
Commissioner of Colorado at least ninety (90) days prior to the
effective date. No such plan to dissolve CIRSA /WC shall be
effective until approved by the Insurance Commissioner. Upon
dissolution of CIRSA /WC, the assets of CIRSA /WC not used or
needed for the purposes of CIRSA /WC,'as determined by the Board
and subject to approval by the Insurance Commissioner of
Colorado, shall be distributed exclusively to municipalities
which are members of CIRSA /WC prior to dissolution to be used for
one or more public purposes.
(o) Delegate to the Executive Director, by motion
approved by the Board, any of the Board's powers and duties,
except that the Board may not so delegate its powers to admit new
Members, establish contributions by the Members, adopt CIRSA /WC's
budget, establish conditions which must be met prior to the
payment or defense of a claim, or dissolve CIRSA/WC-
(p) Notwithstanding any other provision of these Bylaws
or any limitation on CIRSA /WC coverages, for any claim year the
Board may accept and pay those claims and expenses related
thereto which would otherwise be denied for the reason that
payment would exceed the sum of the Pool's loss fund and any
aggregate stop loss insurance for that claim year, but no such
acceptance or payment shall cause CIRSA /WC to become insolvent.
Any such payment shall be consistent with such policy as the
Members may adopt by a two - thirds (2/3) vote of the Members
present at a meeting.
r�
(q) Amend any contract with CIRSA for management services
which is executed by the Members and CIRSA pursuant to Article
vIII (1) of these Bylaws.
(2) The Board shall have the duty to:
(a) Provide to Members annually, the budget for CIRSA /WC;
an audit of the financial affairs of CIRSA /WC to be made by a
certified public accountant at the end of each fiscal year in
accordance with generally accepted auditing principles and state
law; and, a report of operations.
CIRSA /WC 07/88 11
r
(b) Provide for payment of covered claims and expenses
related thereto in the order in which the amounts become due,
until money available for such payment is depleted.
ARTICLE XII Meetings of the Board of Directors (1) The Board
may set a time and place for regular meetings which may be held
without further notice, and shall establish procedures for notice
of special meetings.
(2) Three (3) Directors shall constitute a quorum to do
business. All acts of the Board shall require approval of a
majority vote of the Directors present.
(3) One or more or all. -Directors on the Board may participate
in any meeting of the Board by means of a conference telephone or
similar communications equipment by which all persons
participating in the meeting can hear each other at the same
time. Participation by such means shall constitute presence at
the meeting.
(4) Any action of the Board may be taken without a meeting if
consent in writing setting forth the action so taken is signed by
all Directors then serving on the Board. Such consent shall have
the same effect as a unanimous vote and may be executed in
counterparts.
ARTICLE XIII Liability of Board of Director or Officers The
Directors and officers of CIRSA /WC should use ordinary care and
reasonable diligence in the exercise of their power, and in the
performance of their duties hereunder; they shall not be liable
for any mistake of judgment or other action made, taken or
omitted by them in good faith; nor for any action taken or
omitted by any agent, employee or independent contractor selected
with reasonable care. No Director shall be liable for any action
taken or'`itted by any other Director. ' CIRSA /WC shall obtain a
bond or other security to guarantee the faithful performance of
each Director's, officer's and the Executive Director's duties
hereunder. The loss fund for the appropriate claim year may be
used to defend and indemnify any Director, officer, or employee
for actions taken by each such person in good faith within the
scope of his or her authority for CIRSA /WC.. CIRSA /WC may
purchase insurance providing similar coverage for such Directors,
officers and employees.
CIRSA /WC 07/88 12
ARTICLE XIV Withdrawal from Membership (1) Any Member may
withdraw from CIRSA /WC by giving prior notice in writing to the
Board of the prospective effective date of its withdrawal.
(2) If the effective date of a Member's withdrawal is a date
other than a January 1, the withdrawing Member shall not be
entitled to receive any refund of contributions made for
administrative (e.g. non - reserve fund, non -loss fund) costs for
the claim year of withdrawal. The withdrawing Member shall be
entitled to receive within forty -five days after the effective
date of withdrawal, a proportionate return of its contribution to
the loss fund for the claim year of withdrawal. The proportion
shall be that percentage which the number of days remaining
(after the effective date of withdrawal) in the claim year of
withdrawal bears to the total number of days in that claim year.
Any return of other loss fund contributions for the claim year of
withdrawal shall be subject to Article IX (4) and any return of
reserve fund contributions shall be subject to Article IX (3).
(3) If the effective date of a Member's withdrawal is a
January 1 but the Member's written notice of withdrawal is
received by CIRSA /WC more than thirty days after the date on
which CIRSA /WC mailed a preliminary quote of the contribution to
be assessed the Member for the year beginning on that January 1,
the withdrawing Member shall be obligated to pay its share of
CIRSA /WC's administrative (e.g., non -loss fund and non - reserve
fund) costs for the year beginning on that January 1.
(4) The Members may, by a two - thirds (2/3) vote of the Members
present at a meeting, adopt or amend a policy establishing
additional conditions applicable to Members which withdraw.
ARTICLE XV . Expulsion of Members (1) A Member which fails to
make any contribution or other payment due to CIRSA /WC shall be
Z Q automatically expelled from CIRSA /WC on the sixtieth day
following the due date, unless time for payment is extended by
the Board and payment is made within any extended period. A
notice of failure to make a contribution or other payment due to
CIRSA /WC shall be mailed to the Member at least thirty (30) days
prior to the first date of automatic expulsion. If time for
payment is extended by the Board and payment is not made within
any extended period, the automatic expulsion shall occur on a
date, no later than twenty (20) days after the last day of the
extended period set by the Board. An expulsion under this
subsection (1) shall not be subject to the provisions of
subsection (2).
CIRSA /WC 07/88 13
(2) A Member may be expelled by the Board for failure to carry
out any other obligation of the Member subject to the following:
(a) The Member shall receive notice from the Board of the
alleged failure and not less than thirty (30) days in which to•
cure the alleged failure, along with notice that expulsion may
result if the failure is not so cured.
(b) The Member shall receive at least thirty (30) days
prior notice from the Board of the date, place and time when
the Board will consider expelling the Member from the Pool,
and the Member shall be entitled to be present at that meeting
and to present evidence and reasons why it should not be
expelled. The decision of the Board shall be effective as of
the date and upon the terms and conditions set forth in the
Bylaws and applicable excess or reinsurance policies and as
otherwise specified by the Board, except as provided in
paragraph (c) of this Article XV (2).
(c) The Member may appeal the Board's decision to the
membership. Notice of the appeal shall be provided to each
Member. The appeal shall be considered by the Members only if
twenty (20) percent of the Members request the Board, in
writing, to schedule a membership meeting on the appeal;
otherwise the appeal shall be considered denied. If the
appeal will be considered by the Members, the Chairman of the
Board shall schedule a membership meeting and each Member,
including the appealing Member, shall be provided at least ten
(10) days prior written notice of the date, time and place of
the meeting. The appealing Member shall be entitled to be
Q
present at that meeting and to present evidence and reasons
why it should not be expelled and the Board may present
evidence and reasons why expulsion is proper. The appealing
Member shall not be counted in determining the number of votes
required, nor shall the appealing Member be entitled to vote
on the appeal. The decision of the Members shall be by
majority vote of those present at the meeting and shall be
final, and any expulsion shall be effective as of the date and
upon the terms and conditions'set forth in the Bylaws and
applicable excess or reinsurance policies, and as otherwise
specified by the Members.
(3) The Members may, by a two - thirds (2/3) vote of the Members
present at a meeting, adopt or amend a policy establishing
requirements applicable.to Members which are expelled.
CIRSA /WC 07/88
14
ARTICLE XVI Miscellaneous (1) This document shall constitute
an intergovernmental contract among those municipalities which
become Members of CIRSA /WC. The terms of this contract may be
enforced in court by CIRSA /WC itself or by any of its Members.
(2) The consideration for the duties herewith imposed upon the
Members to take certain actions and to refrain from certain other
actions shall be based upon the mutual promises and agreements of
the Members set forth herein.
(3) These Bylaws may be executed in counterparts. A certified
copy of the ordinance, resolution or other document of approval
for each Member, accompanied by an attorney's certification of
proper authority and adoption, shall be attached to the Member's
Bylaws on file with CIRSA /WC.
(4) Except to the extent of the limited financial
contributions to CIRSA /WC agreed to herein or such additional
obligations as may come about through amendments to these Bylaws,
no Member agrees or contracts herein to be held responsible for
any claims in tort, contract, or otherwise made against any other
Member. The contracting parties intend in the creation of
CIRSA /WC to establish an organization,.only within the scope
herein set out, and have not herein created as. between Member and
Member any relationship of surety, indemnification or
responsibility for the debts of or claims against any other
Member.
(5) In the event that any article, provision, clause or other
part of these Bylaws is held invalid or unforceable by a court of
competent jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability with respect to other
articles, provisions, clauses, applications or occurrences, and
Bylaws are expressly declared to be severable.
(6) The provisions of these Bylaws and the assets of CIRSA /WC
are for the benefit of the Members of CIRSA /WC, and no other
persons or entities shall have any rights or interest in these
Bylaws or in any such assets, as third party beneficiary or
otherwise. The assets of CIRSA /WC shall not be subject to
attachment, garnishment, or any equitable proceeding.
(7) The Insurance Commissioner of Colorado shall have such
authority with respect to the formation and operation of CIRSA /WC
as is provided by applicable Colorado law.
(8) Except as permitted in these Bylaws, and amendments
hereto, neither the Board nor any other person or entity is
authorized to incur liabilities or obligations or enter into
contracts on behalf of the Members.
CIRSA /WC 07/88 15
(9) If required by regulations or guidelines issued by the
Insurance Commissioner of Colorado, "insolvency" as applied to
CIRSA /WC shall have the meaning as defined in 10 -3 -212, C.R.S.,
as amended.
(10) The statutory reporting period for CIRSA /WC shall be the
calendar year.
ARTICLE XVII Commencement of CIRSA /WC The Board of Directors
of CIRSA shall determine, no later than December 29, 1987,
whether there has been deposited with or committed to CIRSA /WC as
a first year's payment an amount of money sufficient to satisfy
the minimum start -up level of CIRSA /WC, which shall include three
hundred thousand dollars ($300,000) initial paid -in surplus,
unless the Insurance Commissioner of Colorado approves a lower
amount of initial paid -in surplus. If the Board of Directors of
CIRSA determines that the amount is sufficient, then these Bylaws
shall become effective, CIRSA /WC shall commence, and coverage
will be provided on the date or dates specified by such Board of
Directors. No time deadlines contained within these Bylaws shall
apply to actions first taken after formation of CIRSA /WC if
compliance with the time deadline would detrimentally affect the
formation and initial operation of CIRSA /WC. This paragraph
shall be automatically repealed effective January 1, 1989.
ATTEST: By:
q)t7OLLd_
Na Title
/a 01,9RK
Title City /Town
d")
Date Date
CIRSA /WC 07/88 16
POLICIES ADOPTED BY THE MEMBERS PURSUANT
TO CIRSA /WC BYLAWS, ARTICLES IX, XI, XIV AND XV
1. Payment of excess losses (a) Any payment for claims and
expenses related thereto made pursuant to CIRSA /WC Bylaws,
Article XI (1) (p) shall be made only from a reserve fund
established pursuant to CIRSA /WC Bylaws, Article IX (2)
(hereafter "reserve fund ") and shall be subject to the conditions
and requirements of Article IX (2).
(b) The Board shall not pay any claims or expenses related
thereto pursuant to Article XI (1) (p) in excess of the amount
in the reserve fund.
(c) Within twelve months after any payment is made pursuant
to Article XI (1) (p) , the Board shall determine the total
amount of payments so made and shall levy contributions against
the Members specified in Article IX (2) in an amount necessary
to replenish the reserve fund for those payments. For any claim
year in which a reserve fund contribution was not made or was
insufficient to cover claims and expenses related thereto, the
amount levied by the Board shall include the amount of interest
which the reserve fund did not earn as a result of the payments
made therefrom, as reasonably calculated by CIRSA /WC's
controller.
2. Conditions and requirements aA licable to all withdrawing and
expelled Members. (a) A withdrawn or expelled Member shall
remain obligated for all amounts owing prior to withdrawal or
expulsion from CIRSA /WC and for all amounts which thereafter
become owing pursuant to CIRSA /WC Bylaws and policies adopted by
the Members which are in effect at the time of withdrawal or
expulsion including, but not limited to, contributions levied
pursuant to Article IX (2) of the CIRSA /WC Bylaws.
(b) A withdrawn or expelled Member is considered a Member of
CIRSA /WC for the purpose of payment of the Member's claims and
expenses related thereto which remain covered under the terms of
CIRSA /WC's excess policies. A withdrawn or expelled Member
shall remain subject to all conditions of coverage and
obligations of a Member under CIRSA /WC's Bylaws, excess or
reinsurance policies, and policies adopted by the Members which
are in effect at the time of withdrawal or expulsion. A
withdrawn or expelled Member shall have no right to vote on any
matter pending before the CIRSA /WC membership.
(c) A withdrawn Member shall retain all rights of a
withdrawn Member under CIRSA /WC's Bylaws and policies adopted by
the Members which are in effect at the time of the withdrawal.
An expelled Member shall retain all rights of an expelled Member
under CIRSA /WC's Bylaws and policies adopted by the Members
which are in effect at the time of the expulsion. No withdrawn
or expelled Member may be adversely affected by any change in
such Bylaws or policies adopted subsequent to the effective date
of the Member's withdrawal or expulsion.
EXHIBIT B
AGREEMENT FOR MANAGEMENT SERVICES
As amended through 11-29 -88
This agreement is made by and between the Colorado Intergovernmen-
tal Risk Sharing Agency (hereafter "CIRSA"), and the members of the
Colorado Intergovernmental Risk Sharing Agency for Worker's
Compensation ( hereafter "CIRSA /WC"). In consideration of the
mutual covenants herein contained, the parties agree as follows:
1. Term This agreement shall take effect on the date CIRSA /WC
begins operation and shall continue in force until terminated. If
permitted by CIRSA /WC's Bylaws and Intergovernmental Agreement,
this agreement may be terminated by CIRSA or the Board of Directors
of CIRSA /WC (hereafter "CIRSA /WC Board "), on any January 1 by
either giving at least ninety (90) days prior written notice to the
other. Upon termination, CIRSA shall promptly transfer all files
and documents of CIRSA /WC to such person or entity as the CIRSA /WC
Board may direct.
2. Office Space CIRSA /WC shall occupy space provided by CIRSA,
the rental value of which is included in the annual sum owed to
CIRSA.
3. Services CIRSA shall retain an Executive Director and other
staff members to provide or arrange for provision of management
services to CIRSA /WC including the following:
Z.3
(a) Bookkeeping services.
(b) Preparing financial statements.
(c) Preparing necessary reports on claims, incidences and
loss prevention not provided by other service providers.
(d) Recording and depositing of payments.
(e) Providing information to potential members.
(f) Responding to inquiries from existing and potential
members.
(g) Reviewing claims with members.
mgtserv.88 -1-
(h) Reviewing and making recommendations on all CIRSA /WC
contracts.
(i) Maintaining a complaint register in a format acceptable
to the Insurance Commissioner of Colorado.
(j) Acting as a liaison with state authorities and responding
to inquiries from state authorities.
(k) Computing and providing membership contribution billings.
(1) Preparing and filing required forms and reports with the
Insurance Commissioner of Colorado and other state
authorities, including a statutory annual statement with
the Division of Insurance.
(m) Maintaining appropriate files.
(n) Assisting the Pool's auditor and actuary as necessary.
(o) Reviewing the performance of all contract service
providers.
(p) Handling banking functions, deposits, reconciliations.
(q) Providing necessary notices of CIRSA /WC Board and member
meetings.
(r) Supplying resource material for member and CIRSA /WC Board
meetings.
(s) Attending member and CIRSA /WC Board meetings and other
meetings necessary to the administration of CIRSA /WC.
(t) Keeptng detailed minutes of member and CIRSA /WC Board and
committee meetings.
(u) Administering committees established by the CIRSA /WC
Board.
(v) Implementing investment policies established by the
CIRSA /WC Board and consistent with CIRSA /WC's Bylaws and
Intergovernmental Agreement, and maintaining a permanent
written record of investment decisions and transactions.
CIRSA shall provide access to CIRSA /WC's securities when
required by the Insurance Commissioner of Colorado. In
addition, CIRSA shall provide to CIRSA /WC, at least
monthly, a written summary of investment activity in such
form and detail as the CIRSA /WC Board may require.
mgtserv.88 -2-
(w) Developing and implementing a risk management program for
CIRSA /WC, subject to approval of the CIRSA /WC Board.
(x) Maintaining the accounts, books and records of the Pool
in a manner consistent with generally accepted accounting
principles and consistent with sound insurance accounting
principles, including a full and complete set of
statutory accounting records (general ledger, cash
receipts and disbursement journals, and other subsidiary
records necessary to maintain all financial information).
(y) Obtaining fidelity coverage for the Executive Director
of and staff providing services to CIRSA /WC in an amount
mutually acceptable to the parties hereto, and supplying
a copy of the bond to the CIRSA /WC Board and the
Insurance Commissioner of Colorado. The bond must
include a thirty day notice of termination by registered
mail to the Insurance Commissioner of Colorado.
(z) Annually preparing a draft budget for consideration by
the CIRSA /WC Board, to be completed on such date as the
CIRSA /WC Board may direct.
(aa) Maintaining or providing for the maintenance of necessary
claim files and supporting reports.
(bb) Providing the Insurance Commissioner of Colorado access
to all accounts and records by CIRSA /WC and providing
accommodations during any examination.
(cc) Subject to the direction of the CIRSA /WC Board, doing and
performing such other, further and additional things,
acts and duties as are generally done and performed by
persons or entities administering and implementing self -
insurance pools of this nature. r1
4. Other Service Providers Nothing in this agreement is
intended to make CIRSA, its officers or employees, liable for the
errors, omissions, negligence, or other torts of CIRSA /WC's claims
administration service or of any other contract service provider
to CIRSA /WC; and no such liability shall exist. CIRSA shall not
be responsible for the duties assigned to CIRSA /WC's other service
providers pursuant to contract or decision of the CIRSA /WC Board.
5. Amendments This Agreement may be amended by written
agreement of the CIRSA Board of Directors (hereafter "CIRSA Board ")
and the CIRSA /WC Board.
mgtserv.88 -3-
6. Reimbursement for Services
(a) CIRSA /WC shall pay CIRSA, for all services rendered under
this Agreement on and after January 1, 1989, a total
annual sum which shall consist of all expenses reasonably
associated with CIRSA's administration of CIRSA /WC, as
determined annually and approved by the CIRSA Board and
the CIRSA /WC Board. Services rendered under this
Agreement in 1988 only, CIRSA /WC shall pay CIRSA a total
annual sum of $79,700.00. The CIRSA Board shall
determine no later than January 31, 1989, whether the
expenses reasonably associated with CIRSA's
administration of CIRSA /WC during 1988 exceeded the sum
of $79,700.00 and the amount of any such excess.
Notwithstanding any other provision of this agreement or
of CIRSA /WC's Bylaws and Intergovernmental Agreement,
that amount shall be an obligation of and be paid by the
members of CIRSA /WC, which were members during 1988.
Such payment shall be made only by deduction from any
credits given members pursuant to Article IX of the
CIRSA /WC Bylaws and Intergovernmental Agreement or
otherwise, unless a member withdraws or is expelled prior
to any such credit being given, in which event the
payment from that member shall be immediately due.
(b) CIRSA /WC shall pay CIRSA an amount for 1988 administra-
tive services, in addition to the $79,700 established in
paragraph (a) of this paragraph 6, to be collected from
municipalities which are not among the thirty -eight
initial members 'of CIRSA /WC but which join CIRSA /WC in
1988, that amount to be equal to 7.54% of each such
municipality's contribution to CIRSA /WC's loss fund.
(c) In determining by January 31, 1989 whether CIRSA's
expeK�-.es reasonably associated with CIRSA's administra-
tion of CIRSA /WC during 1988 exceed the sum of $79,700,
as provided in paragraph (a) of this paragraph 6, the
sum of $79,700 shall first be increased by an amount
collected pursuant to paragraph (b). Any excess amount
to be paid by the 1988 members of the CIRSA /WC shall be
allocated among those members in proportion to their
initial contribution to administrative expenses for 1988
and shall be collected as provided in paragraph (a).
7. Cancellation Upon cancellation or termination, at least
thirty (30) days advance written notice will be provided to the
Insurance Commissioner of Colorado by CIRSA /WC.
8. Counterparts This Agreement may be executed in counterparts.
mgtserv.88 -4-
9. General Provisions This agreement contains all agreements,
understandings, and arrangements between the parties and no others
exist. All previous agreements, understandings, and arrangements
between the parties are terminated by the Agreement.
By these signatures, the parties agree to all the terms, condi-
tions, and provision of the Agreement.
CITY /TOWN OF
, COLORADO
By: - � Date: /��a Sz'
OP rMC-
Title
Date
COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY
By: Date:
Chairman
mgtserv.88 -5-
TO:
FROM:
City of Pueblo
Timothy A. GreOr
Executive Director, CIRSA /WC
MUST BE RECEIVED AT CIRSA /WC BY DECEMBER 30, 1988
(Contact CIRSA /WC if you have not received your SCIA quote by this
date; an extension of time may be granted by the CIRSA /WC Board of
Directors to return this form).
Please sign and return the form on this page to CIRSA /WC if
your municipality has decided to accept CIRSA /WC's proposed
coverage and preliminary quote for 1989.
ACCEPTANCE OF PRELIMINARY QUOTATION
This is to notify CIRSA /WC that the City of Pueblo accepts the
preliminary quotation of $ 819,763 for 1989. The City of Pueblo
also chooses the special contribution plan: X YES
$ 25,000 Deductibl
We understand this preliminary quotation is subject to change
depending upon the number and size of municipalities which choose
to participate in CIRSA /WC for 1989 and the actual coverages
obtained.
I am authorized to accept this preliminary quotation for
coverage with CIRSA /WC on behalf of the City of Pueblo
Signature
(Mus be the Mayor, Manager or Clerk)
C ITY CLERK
Title
12 -29 -88
Date
ptnforml.1188
City of Pueblo
P uebl o was rated No. 1 for quality of life by University of Kentucky researchers in a three -year study released in March, 1988.
December 29, 1988
State Compensation Insurance Authority
950 Broadway
Denver, Colorado 80203
RE: POLICY NO. 001945 5
CITY OF PUEBLO
This letter is to notify you that the City of Pueblo, policy number referenced
above, has decided not to renew its Workers Compensation insurance coverage with
the SCIA for 1989.
Pueblo City Council voted to place coverage through Colorado Intergovernmental
Risk Sharing Agency Workers Compensation Pool.
The City of Pueblo would like to thank the State Compensation Insurance
Authority for a fine relationship over many years.
Sincerely yours,
7 0 &/ /;' *15Z
M rian D. Mead
City Clerk
cc: Kenneth F. Hunter, President of City Council
Lewis A. Quigley, City Manager
Thomas Jagger, City Attorney
MDM:gld
P.O. Box 1427 Pueblo, Colorado 81002 -1427 (719) 545 -0561