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BOARD OF COUNTY COMMISSIONERS
JEFFERSON COUNTY, WASHINGTON
RESOLUTION NO. 81_88
A RESOLUTION o:r the Board of County Commissioners of
.Tefterson County, Washington, approving the terms of the
interlocal agreement providing for the creation of the Washington
Counties Risk Pool; authorizing and directing the members of the
Board to execute the agreement on behalf of the County and
deliver it to the appropriate party; approving payment of the
County's premium; establishing and funding a cumulative reserve
fund for claims payment; and appointing the County's
representatives in matters relating to the Pool.
WHEREAS, an interlocal agreement ("Agreement"j
providing for the creation of the Washington Counties Risk Pool
("Pool") has been submitted to the Board far its review and
approval, a copy of which is attached hereto as Exhibit A; and
WHEREAS, the Agreement provides for the creation of the
Pool pursuant to Chapter 4~t.62 RCW and Chapter 39.34 RCW to
provide a joint protection program for the benefit of counties;
and
WHEREAS, the Board has determined that is in the best
interest of the County to become a member of the Pool and to
participate in the joint self-insurance and other programs
provided by the Pool;
NOW, THEREFORE, be it resolved by the Board of County
Commissioners of Jefferson County, Washington, as follows:
1. The Board hereby approves the terms of the
Agreement and authorizes and directs the members of the Board to
execute the Agreement on behalf of the County and deliver such
Agreement to the Offices of the Washington State Association of
Counties.
2. The Board hereby approves the payment to the Pool
by August 30, 1988, of the sum of 145,815.46, representing the
County's first year's premium and reserve amounts. The Board
hereby elects to retain a deductible amount of $5,000.00.
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Resolution No. 81-88
Washington Counties Risk Pool
3. The Board hereby establishes a cumulative reserve
fund authorized by RCW 36.33.065 for claims, which shall be used
for paying claims against the County. Such claims fund shall be
reimbursed from any County funds or other funds under the
jurisdiction or control of the County Treasurer or County
Auditor budgeted for such expenditures. The deposits shall be
made in the exact amount of the vouchers paid from the claims
fund. By September 1, 1988 an amount of 100 000.00 shall be
transferred to and deposited in the fund from the Current Expense
fund .
4. As required by the proposed Bylaws of the Pool, the
Board hereby appoints B,G. Brown as the County's representative
arld Gary A. Rowe as the County's alternate representative to the
Board of Directors of the Pool, appoints Gary A. Rowe as the
County Risk Manager, and appoints Gary A. Rowe as the County
Safety Officer. The County's voting rights in the Pool pursuant
to the terms of the Agreement and Bylaws and to act on behalf of
the County with respect to all matters pertaining to the Pool.
ADOPTED and APPROVED by the Board of County
Commissioners of Jefferson County, Washington, at a regular
me~.t~in~'f thereof this ~~ day of 1988, the following
~otn+n~i'~s3.b~~i^~ being present and votin
~; r" ~ - ~ i ~`. JEFFERSON COUNTY, WASHINGTON
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F,y ~: ' ~• ~ ~i + • a B . G . BROWN , Chairman
'~~*~~E.RSO " ~ ~,~' Z R ., ~ NT ON, Member
AT~~ .'~.:. e~
DINE C . BR G LIB ~;~~~~,~2.~-y"'
C erk of the Boar 'GEORGE C BROWN, Member
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WASHINGTON COUNTIES RISK POOL .:`i. ; ...f,. ...~ i ;,~.;:~Gr~
THIS AGREEMENT is made and entered into by a~~ q-4 a ='~~
several counties organized and existing under the Constitution
and laws as political subdivisions of the State of Washington
which are parties signatory to this Agreemen[ (Collectively
"Member Counties", and individually "Member County"):
RBCITALS
WHEREAS, counties in the State of Washington have experi-
enced a trend of vastly increased insurance premiums for the re-
newal of identical insurance policies, fewer insurance carriers
are willing to provide counties with insurance coverage, and some
counties are unable to obtain desired insurance coverage; and
WHEREAS, Chapter 48.62 RCw grants local governmental enti-
ties, including counties, maximum flexibility to enter into
agreements with each other to provide joint programs, which in-
clude programs of joint purchasing of insurance, joint self-in-
suring, and joint contracting for or hiring of personnel to pro-
vide risk management, claims handling, and administrative ser-
vices; and
WHEREAS, Chapter 39.34 RCW permits local governmental units
to make the most efficient use of their powers by enabling them
to cooperate with other localities on a basis of mutual advantage
and thereby to provide services and facilities in a manner and
pursuant to forms of governmental organization that will accord
best with geographic, economic, population. and other factors in-
fluencing the needs and development of local communities; and
WHEREAS, each of the member counties desires to join to-
gether with the other member counties for the purpose of pooling s
self-insured losses and jointly purchasing excess insurance and ;
administrative services; and
1
WHEREAS, it appears economically feasible and practical for
the member counties to do so;
t
j NOW, THEREFORE, for and in consideration of the mutual bene-
fits, covenants and agreements contained herein, the member coun-
ties agree as follows:
Article 1 :
Definitions
s
The following definitions shall apply to the provisions of
this Agreement:
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~. ` 14
• INTERLOCAL AGREEMENT CREATING THE
WASHINGTON COUNTIES RISK POOL - 1 ` ~ ~~ t~W
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tat "Pool" shall mean the Washington Counties Risk Pool
created by this Agreement by the member counties.
Ibl "Executive Committee" shall mean the Executive Comait-
tee of the Board of Directors of the pool.
Ic) "Insurance" shall mean both liability and property
self-insurance through a funded program and/or a commercial
insurance contract.. Liability insurance shall include without
limitation coverage for claims arising from the negligent or
other tortious conduct of the member. counties, their officers,
employees, or agents, or any error or omission on the part of the
member counties, their officers, employees or agents, as a result
of which a claim may be made against a member county.
(d) "Umbrella Insurance" shall mean that insurance pur-
chased on behalf of the Pool over and above the amount of claims
to be satisfied directly from the Pool's resources.
le) "Fiscal Year" shall mean that period of twelve nwnths
which is established as the fiscal year of the Pool.
If) "Board of County Commissioners" shall mean the govern
mental authority empowered to act under the provisions of Chapter
36.32 RCW or a charter adopted by any Bounty of the State of
Washington.
Article 2
Purpose
This Agreement is entered into for the purpose of authoriz-
ing the creation of the Washington Counties Risk Pool, which
shall be organized under Chapters 48.62 and 39.34 RCW to provide
to member counties programs of joint self-insurance, joint pur-
chasing of insurance and joint contracting for or hiring of per-
sonnel to provide risk management, claims handling, and adminis-
trative services.
Article 3
Parties to Agreement
Each party to this Agreement certifies that it intends to
contract with all parties who are signatories of this Agreement
on its effective date and with such other parties as may later be
added to and become signatories to this Agreement. Each party
also certifies that the cancellation or withdrawal of any party
shall not affect this Agreement nor such party's intent to con-
tract pursuant to the terms of this Agreement with the then re-
maining parties.
INTERLc~C:,L AGREEMENT CREATING THE
WAS}iIPtGTGN
COUNTIES RISK POOL - 2
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l~rticle ~
Duration of 1-grees;eat
This Agreement shall become effective when signed by ten
member counties and filed with the Secretary of State. This
Agreement shall have perpetual duration unless terminated as
hereinafter provided.
1-rticle S
M~nbership Composition
Pool membership shall be limited to the sevezal counties of
the State of Washington and shall not include other local gov-
ernmental entities. The Board of Dizectors of the Pool shall
provide for the reasonable admission of new member counties. New
members shall pay a reasonable share of the organizational ex-
penses of the Pool and the costs necessary to analyze their loss
data and determine their premiums, as determined by the Executive
committee.
1lrticle 6
Nature of Pool
The Pool shall be an association of member counties indepen-
dent of all other associations of which the counties are members.
All income and assets of the Pool, including surplus funds, shall
be at all times dedicated to the exclusive benefit of its members
and used solely for Pool purposes. The Pool may contract with
the Washington State Association of Counties for services.
1lrticle 7
Powers of Pool
The Pool shall have the powers and functions to do the fol-
lowing:
(a) Contract or otherwise provide for risk management and
loss control services;
(b) Contract or otherwise provide legal counsel for the
defense of claims and/or other legal services;
(c) Consult with the Washington State Insurance
Commissioner and State Risk Manager;
(d) Jointly purchase insurance coverage in such form and
amount as the Board of Directors may determine; and
(e) Possess any other powers and perform all other
functions reasonably necessary to carzy out the
purposes of Chapter 48.62 RCW.
v>~ ?f~'.~ ., 16
IttTERLOCAL AGREEMENT CREATING THE
W%+SHINGTON COUNTIES RISK POOL - 3
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Article s
Oryaai:atioa
la) Hoard of Directors. The Pool shall be governed by a
Board of Directors l"Board") which shall be composed of one Di-
rector from each member county. Directors and Alternate Direc-
tors shall be officers or employees of member counties, and shall
be appointed by and serve at the pleasure of the Boards of County.
Commissioners of member counties. Alternate Directors shall have
the same authority to attend, participate in, and vote at any
meeting of the Board or a Committee as that member county's Di-
rector when such Director is absent from the meeting. Each Di-
rector or Alternate Director shall have one vote. Proxy votes
from Directors and Alternates not in attendance at a meeting
shall not be permitted.
(b) Officers. The Board shall elect officers to govern the
Pool.
Ic) Meetings. The Board shall provide for regular meetings
and shall be subject to the Open Public Meetings Act, Chapter
42.30 RCW. Pursuant to RCW 48.62.110, the Board shall provide
for private meetings to consider litigation and settlement of
claims.
Article 9
Administrator
The Board shall employ an Executive Director, who shall be
given general administrative responsibility for Pool activities
including risk management, claims handling and administrative
services.
Article 10
Pool Responsibilities
The Pool shall perform the following functions in discharg-
ing its responsibilities under this Agreement:
la) Provide for the management and operation of the Pool]
(b) Provide for umbrella coverage for the member counties]
lc) Provide reinsurance coverage for those claims which the
Pool plans to self-insure, such coverage to be
effective only in the event of the exhaustion of the
Pool's resources for a given fiscal period]
Idl Establish deductibles and/ot limits to any coverage
that is provided;
(e) Provide an annual report of the operation of the Pool
to the member counties, the State Risk Manager, and the
State Insurance Commissioner; and
INTERLOCAL AGREEMENT CREATING THE y'- >r)v~ . ; 17
WASHINGTON COUNTIES RISK POOL - 4 `f~ ~~'~;•.~',
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lf) Provide for other services as deemed necessary by the
Board in order to carry out the purposes of this
Agreement.
J-rticle 11
t~leiober County Responsibilities
Member Counties shall have the following responsibilities:
(a) The Board of County Commissioners shall appoint a
Director and at least ane Alternate Director to the
Board;
(bl Each County shall appoint an employee of the County to
be responsible for the risk management function within
that County ("County Risk Manager"), and to serve as a
liaison between the County and the Pool as to risk i
management;
Ic) Each County shall maintain an active safety officer
1"County Safety Officer") and committee, and shall
consider all recommendations of the Pool concerning the
development and implementation of a loss control policy
to prevent unsafe practices;
(d) Each County shall maintain its own set of records, as a
loss log, in all categories of loss to insure accuracy ~
of the Pool's loss reporting system]
(e) Each County shall pay its premium and any readjusted ~
amount promptly to the Pool when due. After withdrawal
or termination, each County shall pay promptly to the
Pool its share of any additional premium and accrued
interest;
(f) Each County promptly shall provide the Pool with such
other information or assistance as may be necessary for
the Pool to carry out its responsibilities under this i
! Agreement; and
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i (g) Each County shall in any and all ways cooperate with
and assist the Pool, and any insurer of the Pool, in •
all matters relating to this Agreement and covered
losses, and shall comply with all Bylaws., rules and
regulations adopted by the Board.
Article 12 4
Financing
T
(a) Initial Premiums. After the effective date of this
Agreement, but prior to the effective date of joint self-insur-
ance, the Board shall adopt fair and reascnable coverages, ini-
teal premiums, precise cost allocation plans and formulae, the
' ;
INTERLOCAL AGREEMENT CREATING THE '~-. ~fj'l .,, l~
WASHINGTON COUNTIES RISK POOL - 54 ~ ~ ~~
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pro forma financial statement of the Pool and the amounts and
types of excess insurance to be procured. The effective date of
joint self-insurance shall be determined by the Board, and shall
be no later than January 1, 1989.
(bl Subsequent Premiums. Premiums shall be fairly and rea-
sonably adjusted as determined by the Board after considering ac-
tuary studies at the end of the first year of operation and annu-
ally thereafter.
(c) Premium Payments. Member counties shall pay their pre-
miums promptly when due, and reasonable interest on overdue pay-
ments.
Article 11
Budget and.Reeords
(a) Hudget. The Hoard shall establish and maintain annual
budgets for the operation of the Pool.
(bl Audit Report. The Board shall establish and maintain
such funds and accounts as may be required by good accounting
practices and the State Budget Accounting Reporting System
("BARS"1. Financial records of the Pool shall be open to inspec-
tion at all reasonable times by Directors. The Pool shall be
subject to audit by the Washington State Auditor. A complete
written report of the financial activities of the Pool, including
an annual audit of the accounts and records of the Pool, shall be
provided to each Director.
Article It
Joint Self-Insurance
I (a) Self-Insurance. The Pool shall provide joint self-in-
surance coverage for liability claims arising from the negligent
or other tortious conduct of the Pool and member counties, and
their officers, employees or agents, or any error or omission on
the part of the Pool and member counties, and their officers, em-
plojrees or agents. The Pool may also provide joint self-insur-
an~e coverage for property of the Pool and member counties. The
Pool may obtain umbrella insurance or reinsurancQ or join in
other risk sharing pools. Joint self-insurance coverage shall be
~ subject to exclusions and limitations determined by the Board.
(b) Contingent Liabilities and Retroactive Assessments.
Pursuant to RCW 48.62.060, each member county shall have contin-
gent liability fo.r the liabilities of the Pool in the event the
assets of the Pool are not sufficient to cover its liabilities.
Deficits cf the pool shall be financed through fair and reason-
able retroactive assessments levied against each member county as
determined by the Board. Retroactive assessments shall be added
to the annual premiums.
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INTERLOCAL AGREEMENT CREATING THE
WASHINGTON COUNTIES RISK POOL - 6 ~~.,,,~ i
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J-rticle iS
5ubrogatios
In the event the Pool pays any claim on behalf of a member
county, the Pool shall be subrogeted to the extent of such pay-
ment to all the rights of. the member county against any person or
other entity legally responsible for damages arising under the
claim. 'Member counties shall render all reasonable assistance,
other than pecuniary assistance, to effect recovery on the subro-
gated claim.
1-rticle 16
Cancellation and withdrawal
(a) Cancellation. A member county's participation in this
Agreement and the Pool may be cancelled at any time by an affir-
mative vote of three-quarters of the entire Board for (l) failure
to make full and timely premium payments; 12) failure to ade-
quately fulfill the requirements of the risk management programs
(3) failure to notify the Pool of incidents, claims, and lawsuits
as may be required; or (4) failure to fulfill the cooperation and
other requirements of the insurance agreement. The effective
date of cancellation shall be six months after the date of Board
action. Until the effective date, the cancelled member county
shall still benefit from the Pool's services.
tb) withdrawal. No member county may withdraw for sixty
months after joining the Pool. After the initial sixty month pe-
riod, a member county may withdraw at the end of any Pool fiscal
year, provided it has given the Pool a twelve-month written no-
tice of its intent to withdraw.
(c) Effect of Cancellation and withdrawal. The cancella-
tion or withdrawal of one or more member counties shall not ter-
minate this Agreement. No withdrawing or cancelled member county
shall be entitled to payment or return of any premium, property
contributed to the Pool or to any distribution of assets.
td) Unpaid Liabilities. The cancellation or withdrawal of
a member county shall not terminate its resFonsibility to con-
tribute its share of premiums or assessments until all claims and
other unpaid liabilities covering the period of its membership
have been finally resolved and the Board has determined the final
amount of payments due from the withdrawing or cancelled member
county for the period of its membership.
1-rticle 17
Terminatio~a
(a) Initial Period. This Agreement may be terminated any
time during its first sixty months by the written consent of the
Boards of County Commissioners of all member counties. 1-fter the
INTERLOCAL AGREEMENT CREATING THE
WASHINGTON COUNTIES RISK POOL - 7 .~w t
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first sixty months, this Agreement may be terminated by the wzit-
ten consent of the Boards of County Commissioners of three-
fourths of the member counties. Upon termination, this Agreement
and the Pool shall continue for the purpose of disposing of all
claims, distribution of assets and all other functions necessary
to wind up the affairs of the Pool.
{bl Distribution of Assets. Upon termination, assets of
the Pool shall be distributed to terminating member Counties pro-
portionate to their premium payments and property contributions
made during the last thirty-six {36) months of the Pool. The
Board shall distribute the assets to terminating member counties
within six (6) months after the disposition of the last pending
claim or loss covered by the Pool.
(c) Contingent Liabilities. Upon termination, the Board
shall wind up and dissolve the business affairs of the Pool. The
Board shall determine, and member counties shall pay, each
county's fair share of any additional premium amounts necessary
for final disposition of all claims and losses covered by the
Pool. A member county's share of such additional premiums shall
be determined in the same manner as that provided hereinabove for
annual premiums, and shall be treated as if it were the next
year's annual premium for that county.
Article 18
Property of Pool
The Pool shall acquire, hold and dispose of real and pet-
sonal property sub}ect to the same restrictions as any of its
member counties.
7-rticls 19
Notices
Notices to member counties shall be sufficient if mailed
postage prepaid to the Board of County Commissioners of the re-
spective member counties at such addresses as may be given in
writing to the Pool.
Article 20
A~sendments
This Agreement may be amended at any time by the written ap-
proval of the Hoards of County Commissioners of all member coun-
ties.
Article ti
Prohibition Jlgainst 1-s$ignwent
No county may assign any right, claim or interest it may
have under this Agreement. No creditor, assignee or third-party
beneficiary of any county shall have any right, claim or title to
any part, share, interest. fund, premium or asset of the Pool. t
INTERLOCAL AGREEMENT CREATING THE "
WASHINGTON COUNTIES RISK POOL - 8 ~ •~•~~"
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Article 22
Enforcement
The Pool may enforce the terms of this Agreement. In the
event action is instituted to enforce any term of this Agreement
or any term of the Bylaws against any present or previous member
county, the prevailing party shall receive such sums as the court
may fix as reasonable attorneys' fees and costs in the action.
Article 23
Default
If any member county fails to perform any term or condition
of this Agreement and such failure continues for a period of
sixty (60- days after the Pool has given the member county writ-
ten notice of such failure, the member county shall be in default
hereunder. Upon default, the Pool may immediately cancel the
member county's membership effectively immediately without fur-
ther notice, or exercise any remedies herein provided or other-
wise provided by law. The rights and remedies of the Pool are
cumulative in nature and pursuit of any particular remedy shall
not be deemed an election of remedies or a waiver of any other
remedies available hereunder or otherwise available by law.
Article 2~
No waivers
No waiver or forbearance of a breach of any covenant, term, .
or condition of this Agreement shall be construed to be a waiver
or forbearance of any other or subsequent breach of the same or
of any other covenant, term or condition, and the acceptance of
any performance hereunder, or the payment of any .sum of money af-
ter the same has become due or at a time when any other default
exists hereunder, shall not constitute a waiver of the right to
demand payment of all other sums owing or a waiver of any other
default then or thereafter existing.
Article 25 i
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Severability ~
If any tezm or provision of this Agreement shall to any ex-
tent be determined by a court of competent jurisdiction to be in-
valid or unenforceable, the remainder of this Agreement shall not
be affected thereby, and each term and provision in this Agree-
ment shall be valid and be enforceable to the fullest extent per-
mitted by law.
s
Article 26
Time
Time is of the essence in this Agreement and each and every ~
provision hereof.
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INTERLOCAL AGREEMENT CREATING THE
wASHINGTGN CGUNTIES RISK POOL - 9 , ,~ . ~~ ~~ .7 J~!
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1-rticle 27
Headings .
The Article and Section headings in this Agreement are in-
serted for convenience only and are not intended to be used in
the interpretation of the contents of the Articles and Sections
they 'introduce.
i
j ]-rticle 29
Governing I.aw
This Agreement shall be governed by and construed in accor-
dance with the laws of the State of Washington.
Article 29
~ Counterpart Copies
f
This Agreement may be signed in counterpart or duplicate
copies, and any signed counterpart or duplicate copy shall be
equivalent to a signed original for all purposes.
Article 30
Agreement Complete
The foregoing constitutes the full and complete agreement of
the parties. All oral understandings and agreements are set
forth in writing herein.
IN WITNESS WHEREOF, the parties have executed this Agreement
by authorized officials thereof on the dates indicated.
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Il:TERLOCnL AGREE`".ENT CREATING THE
WASHIKGTCti COU::TZES RISK POOL - 10 ~ y _ ` . ' .- ~+,
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INTERLOCAL AGREElQOiT CRPA?I1Ki
THS
W1ISHINGT+ON COUNTIES AIS1C POOL
Interlocal Agreement creating Washington Counties Risk Pool
approved this /S-j'~day of .c __, 1988.
JEFFERSON COUNTY, WASHINGTON
s.c. ROWV, Chairman
2f ~' Esc x.e'alr--
R~~ DEUyISON, Member
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RGF~ '. BRONP]
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ACCE TED BY THE OOL this
day of -~--~ 19 ~.
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Constituting the Hoard of
County Commissioners of
JCFFFRSO?7 County, Washington
Att st:
r
/ Cler of Board
Approved o F rm:
( Prose Attorn
INTERLOCAL AGREEMENT CREATING _
THE WASHINGTON COUNTIES RISK POOL - i¢~ { ~ ~J (J.~
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MI-SAIN6'TON OOIJNTIES 1tZS1C POQi.
1-rticle 1
Offices
1. Principal Office. The initial principal office of 'the
washing[on Counties Risk Pool ("Pool") shall be located in
Thurston County., Washington. The Board of Directors of the Pool
may change the location of the principal office provided, how-
ever, that the office shall always be located within one of the
member counties of the Pool.
2. Other Offices. The Board of Directozs may establish
other business offices at any time at any place within one or
more member counties.
7-rticle 2
Board of Directors
1. General Powers. The affairs of the Pool shall be man-
aged by its Board of Directors ("Board"!.
2. Composition and Selection. The Hoard shall be composed
of one representative ("Director") from each member county, who
shall be an officer or employee of that member county and shall
be appointed by and serve at the pleasure of the Board of County
Commissioners of that member county. Each Board of County
Commissioners shall also appoint at least one Alternate Director,
who shall be an officer or employee of that member county. An
Alternate Director shall attend meetings and vote in the absence
of the Director. "Absence", as the term is used in this section,
includes "vacancy" as defined below in this Article.
Zf a county's membership in the Pool is terminated for any
reason by any method, that county shall no longer have a Director
on the Board or on any Committee created by the Board.
3. Vacancies. A vacancy in the Board shall exist in case
of death, resignation, expiration of term, or removal of a Direc-
tor by the member county that made the appointment, or when .the
Director ceases to be an employee or official of the appointing
county. Vacancies in the positions of Director or Alternate Di-
rector shall be filled in the manner provided by these Bylaws for
regular appointment of such persons.
4. Meetings.
(a) Annual Meetings. The annual meeting of the Board shall
be held in January of each year at a date and time designated by
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WASHINGTON COUNTIES ,~, ' ~,
RISK POOL BYLAWS - 1 •u_ I `i r!= ; S '?''~<<;
the Board. At the meeting the officers of the Pool shall be
elected, reports of the affairs of the Pool shall be considered,
and any other business may be transacted which is within the pow-
ers of the Board.
Ibl Regular Meetings. The Chair of the Board shall estab-
lish the dates for regular quarterly meetings. The annual meet-
ing held in January shall serve as a regular meeting.
lc) Private Meetings. Pursuant to RCW 48.62.110, the Board
may hold private meetings to consider litigation and settlement
of claims when it appears that public discussion of these matters
would impair the Pool's ability to conduct its business effec-
tively. Such private meetings may be held as executive sessions
of regular or special meetings, or may be by means of a confer-
ence telephone or similar communications equipment. All persons
participating in a telephone conference meeting must hear each
other simultaneously'. Participation by such means shall con-
stitute presence in person at the meeting.
5. Special Meetings. Special meetings of the Board, for
the purpose of taking any action which is within the powers of
the Board, may be called at any time by the Chair or by not less
than seven (71 Directors. Upon receipt of a written request that
a special meeting of the Board be called for any proper purpose,
the Chair forthwith shall cause notice to be given to the member
counties that a meeting will be held at a time requested by the
Chair or Directors calling the meeting. The meeting shall be
held not less than twenty-four (241 hours nor more .than sixty
(601 days after receipt of the request. No business other than
that specified in the notice of the special meeting shall be
transacted at that meeting.
6. Action Without Meeting. Any action required by law to
be taken at a meeting of the Directors, or any action which may
be taken at a meeting of Directors, may be taken without a meet-
ing if a consent in writing, setting forth the action so taken,
shall be signed by all Directors entitled to vote with respect to
the subject matter thereof.
7. Notice. Notice of each annual, regular and special
meeting shall be given to each Director by mail or other means of
written communication, in the manner provided by law. Such no-
tice shall specify:
(l) The place, the date, and the hour of such meeting;
!21 Those matters which are intended to be presented for
action by the Board;
13) Such other matters, if any, as may be expressly
required by statute or by the Interlocal Agreement
creating the Pool.
wASHiNGTON COUNTIES ~,~~ ~ :~ ~..- ~~ ;;";' j(;
RISK FOOL BY.T.AWS - 2
8. Place of Meeting. All meetings of the Board shall be
held at the principal office or at a place within the State of
Washington in a member county designated by the Chair.
9. uorum. A majority of the Directors of the Board shall
constitute. a quorum for the transaction of business. Directors
may continue to do business until adjournment, notwithstanding
the withdrawal from the meeting of enough Directors to leave less
than a quorum. Board action may be taken if approved by a number
of Directors equal to at least a majority of Directors required
to constitute a guorum.
10. Adjourned Meetings.
(al Adjournment. Any meeting of the Board, regardless of
whether a quorum is present, may be adjourned from time to time
by the vote of a majority of the Directors present.
(b) Notice. when any meeting of the Board is adjourned for
forty-five (45) days or more, notice of the reconvening of an ad-
journed meeting shall be given as in the case of an original
meeting. when reconvening an adjourned meeting in less than
forty-five (45) days, except as specifically provided herein or
by law, it shall be unnecessary to give any notice of the time
and place or of the business to be transacted thereat, other than
by announcement at the meeting at which such adjournment is taken
of the time and place of reconvening.
11. yo*.ing. Member counties which are members on the day of
a meeting of the Board shall be entitled to vote at the meeting.
Every Director shall have one vote. Proxy votes by Directors not
in attendance at a meeting shall not be permitted. A vote of the
majority of those Directors present at a meeting shall be suffi-
cient to constitute action by the Board.
12. Rule of Procedure for Meetings. All meetings of the
Board shall be conducted in accordance with Robert's Rules of Or-
der, except where such are in conflict with the law, the Inter-
local Agreement creating the Pool, the Articles of Incorporation
or these Bylaws, whereupon the later four in the listed order of
priority shall govern over Robert's Rules of Order.
Article 3
Officers
1. officers. The officers of the Pool shall be a Presi-
dent, Vice President, Treasurer, and Secretary. The Board may in
addition provide for other officers as it deems necessary for the
performance of the business of the Pool.
2. Electicz and Term of Office. Officers of the Pool shall
be elected by the Board from its Directors at the annual meeting
in January. At the January meeting, the President shall retire
WASHINGTON COUNTIES 1
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J
and cease acting as an officer, the vice President shall succeed
the President, the Treasurer shall succeed the vice President,
the Secretary shall succeed the Treasurer, and a new Secretary
shall be elected. An officer shall hold office until the expira-
tion of his/her term unless earlier death, resignation, removal,
disqualification to serve, or other cause and until a successor
is selected.
3. Vacancies. A vacancy in any office shall be filled in
the manner prescribed for regular election to such office.
4. Removal and Resignation.
la) Removal. Any officer may be removed without cause by a
majority vote of the Board at any regular or special meeting at
which a quorum is present.
(b) Resignation. An officer may resign at any time by giv-
ing written notice to the Board or to the President. Any such
resignation shall take effect at the date of the receipt of such
notice or at any later time specified therein. Unless otherwise
specified therein, the acceptance of such resignation shall not
be necessary to make it effective.
5. President. The President shall be the chief executive
officer of the Pool and in general shall supervise and control
all of the business and affairs of the Pool. The President shall
Chair the Board and the Executive and Nominating Committees, and
shall have such other powers and duties as may be prescribed b5f
the Board or these Bylaws.
6. Vice President. In the absence or disabi~ity of the
President or in the event of his/her inability or refusal to act,
the vice President shall perform ail the duties of the President,
and when so acting.shall have all the powers of the President.
The Vice President shall Chair the Planning Committee and shall
have such other powers and duties as may be prescribed by the
Board or these Bylaws.
7. Treasurer. The Treasurer shall keep and maintain ade-
quate and correct financial records of the Pool, including ac-
counts of its assets, liabilities, receipts and disbursements,
shall Chair the. Finance Committee, and shall have such other pow-
ers and duties as may be prescribed by the Board or these Bylaws.
The Treasurer shall report to the Board in writing on the
first day of January, Mpril, July and October of each year the
assets held by the Pool and the amount of receipts and payments
since the last report.
4
WASHINGTON COU.PTIES
RISK POOL BYLAWS.. 4 Y.. _, ~ ~ ~ ~- ;:~! J~
The Treasurer on the advice of the Finance Committee may di-
rectly invest all or a portion of the Pool's assets or may de-
posit such assets with the county treasurer of a member county to
be invested by such county treasurer for the Pool.
8. Secretary. The Secretary shall record and keep a book
of minutes of actions taken at all meetings of the Board, the
notices given thereof, the names of those present at the meetings
and the proceedings thereof, and shall send to each Director
minutes of all meetings of the Board as soon as possible after
each meeting.
The Secretary shall give notice of all the meetings of the
Board.
The Secretary shall keep at the principal executive office
of the Pool the official Pool documents and records, including
the book of minutes of Board meetings and a list of all Directors
and Alternate Directors, shall distribute to the Directors copies
of the same, shall Chair the operations Committee, and shall have
such other powers and duties as may be prescribed by the Board or
these Bylaws.
Article 4
Committees
1. Co*.rmittees. The President shall appoint Directors to•
the following committees to assist the Board with its duties:
Executive, Nominating, Planning, Finance, and Operations. Each
Director shall serve on at least one committee. The designation
and appointment of Committees and the delegation thereto of au-
thority shall not operate to relieve the Board or any individual
Director of any responsibility imposed upon the Board or Director
by law. The President may remove Directors from committees when-
ever in the judgment of the President the best interests of the
Pool shall be served by such removal.
I 2. Executive Committee.
(a) Cc:r~^~ittee. The Executive Committee shall consist Cf €
the President, Vice President, Treasurer, Secretary, and five (51
Directors. The President shall Chair the committee, which shall
meet monthly unless cancelled by the President. j
(b) Duties. The Executive Committee shall have the fol-
lowing powers and duties:
i
(1S. Ta approve new member counties of the Pool and to
determine the amount of the new member fee;
(2) To determine the amount of member county premiums to be i
paid to the Pool;
(31 To determine issues of coverage afforded a member
county andlor person, which decision shall be
t
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~
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•
WASHINGTON COUNTIES ~~
RISK POOL BYLAWS - 5
, A
appealable to the Boazd by any member county]
14- To determine coverage provided by the Pool. including
limits, language, scope of coverage, and the extent of
umbrella insurance to be obtained;
(5- To authorize commencement of lawsuits in the name of
the Pool;
tb) To authorize settlement of any claim or lawsuit made
against the Pool or any member county or person on a
covered claim;
{7) To adopt the budget and co approve the monthly
expenditures upon recommendation of the Executive
DirecCor; and
(8) To conduct or authorize general business of the Pool,
including authorization of employees or agents to enter
into contracts on behalf of the Pool.
tc) Board Review. The Board shall review all acts of the
Executive Committee and a majority of the entire Board shall have
t
the power to modify and/or overrule any decision or action o#.the
Executive Committee.
3. Nominating Committee.
(a) Committee. The Nominating Committee shall consist of s
the President, Vice President, Secretary and Treasurer. The
President shall Chair the Committee and shall call meetings when
necessary.
(b) Duties. The Committee shall nominate at least two i
9
Directors to fill a vacancy in any office.
4. Planning Committee.
(a) Committee. The Planning Committee shall consist of ~
the Vice President and at least six t6) Directors not members of E
the Executive Committee. The Vice President shall Chair the Com-
mittee and shall call meetings when necessary.
I
tb) Duties. The Committee shall engage in long-range
planning for the Pool, and shall: tj
(11 Perform planning research for the Executive Committees
(2) Develop policies and procedures for consideration by '
the Executive Committee;
(3) Recommend membership goals;
14) Recommend umbrella insurance and whether to expand
liability coverage for members;
l5) Examine long-range financial and reserve insurance
planning;
16) Recommend methods of operating in "soft" insurance i
markets;
(7) Recommend whether to provide services to non-member
counties or municipalities;
{8) Research new insurance programs; and f
i
S
WASHINGTON CO[lNTIES ,. ~ ~ ~ a - ~~ ;'! f'y()
RISK POOL BYLAWS - 6 "'~
+ _. _.
(9) Perform other duties and research assignments as
assigned by the President or Executive Committee or as
i requested by the Executive Airector.
5. Finance Committee.
(a) Committee. The Finance Committee shall consist of the
Treasurer and three (3) Directors. The Treasurer shall Chair the
Committee and shall call meetings when necessary.
(b) Duties. The Committee shall consider the finances of
the Pool, and shall:
(1) Assist the Executive Directar in preparing the budget
and in preparing and revising a finance manual.
(2) Recommend the amount of cash reserves required by the
Pool to conduct its operations;
l3) Recommend contingency fund amounts;
(4) Recommend proposals of the Executive Director regarding
staffing and salaries;
(5) Recommend long-range financial goalss
(6) Recommend financial charges for services rendered;
(7) Recommend adjustments of premium assessments charged
members;
IB) Recommend to the Treasurer the placement of investments
and financial assets; and
(9) Perform other duties and research assighments as
assigned by the President, Treasurer oc Executive
Committee or as requested by the Executive Director.
6. operations Committee.
(a) Committee. The operations Committee shall consist of
the Secretary and at least six (6) Directors. The Secretary
shall Chair the Committee and shall call meetings when necessary.
(b) Duties. The Committee shall identify actions by which
financial losses can be controlled, reduced or eliminated, and
shall:
tl) Recommend minimum loss control standards for member
counties;
(2) Recommend risk management, loss control and claims
administration policies and proceduress and
13) Assist the Executive Director in preparing and revising
Risk Management, Loss Control and Claims Administration
manuals.
Article S
Employees
1. Executive Director.
(a) „~eoint~..ent and Removal. The Executi*~e Committee shall
appoint an Executive Director who shall be appointed for an in-
t
5
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WASHINGTON COUNTIES ~, e F r~ ;?"'~1.
RISK POOL 6YLAWS - 7 « 1 ~ '
~ ~
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definite time and be removable at. the will of the Executive Co®-
mittee.
(bl Powers and Duties. The Executive Director shall be the
chief administrator of the Pool. The Executive Director shall
carry out the orders of the Executive Committee and Board and
shall be responsible to the Executive Committee and the Hoard for
the efficient administration of the affairs of the Pool. The Ex-
ecutive Director shall keep the Executive Committee and the Board
advised of the affairs of the Pool. The Executive Director shall
hire all necessary employees and shall have such other powers and
duties as may be determined by the Board.
Icl Compensation. The Executive Director shall receive
such compensation as the Executive Committee shall fix by resolu-
tion.
2. Risk Manager. The Risk Manager shall assist in making
recommendations when appropriate to member counties on the appli-
cation of prudent safety, security, loss prevention and loss min-
imization methods so as to reduce or avoid risk or loss.
3. Loss Control Manager. The Loss Control Manager shall
assist in improving loss control and prevention practices of mem-
ber counties.
4. Claims Administrator. The Claims Administrator shall
assist in administering the defense of claims and suits against
member counties and/or persons.
5. Assistant Treasurer. The Assistant Treasurer shall as-
sist in keeping ar=d maintaining adequate and correct financial
records of the Pool. -
6. "Borrowed" Employees. The Executive Director may con-
tract with member counties to "borrow" management-level employees
to assist in the development phase of Pool programs. The Pool
shall reimburse the me:~ber counties for that employee's time
spent or services rendered on behalf of the Pool and for neces-
sary and incidental expenses incurred.
Article 6
operations
1. Funds and Accounts.
(al Accounts. The Board shall establish and maintain such
funds and accounts as may be required by good accounting prac-
tices and the Washington State Budget Accounting Reportiriq System
("BARS"1.
(b) Audit. The Board shall provide for an annual audit of
the accounts and records of the Pool by either the State Auditor
WASHINGTON COUIv'TIES ' ,~ _ f; ~'~`e%~
RISK POOL BYLAWS 8 =~; 1'- ~ M.._.l~ ..,_._,_........_._.._.__... -.. ...
or a Certified Public Accountant. Such audit shall conform to
generally accepted accounting standards. Audit costs shall be
borne by the Pool as administrative costs.
(c1 Fiscal Year. The fiscal year of the Pool shall be as
set by resolution of the Board.
2. Annual Report. The Board shall send an annual report to
the member counties not later than four t4) months after the
close of each fiscal year. Such report shall contain a balance
sheet as of the end of the fiscal year, an income statement and
statement of changes in financial position for the fiscal year,
the annual audit report, and such other information as may be re-
quired by law.
3. Inspection of Pool Records. The accounting books and
records, the list of member couhties' designated representatives,
and minutes of proceedings of the Eaard of Directors shall be
open to the inspection of any Director at any reasonable time.
Such inspection by a Director may be made in person or by the Di-
rector's agent or attorney. The right of inspection includes the
right to copy and make extracts.
4. Checks and Drafts. All checks, drafts or other orders
for payment of money, notes or other evidences of indebtedness,
issued in the name of or payable to the Pool, shall be signed or
endorsed by an officer and the Executive Director or Assistant
Treasurer, or by two such persons and in such manner as shall be
determined by the Board.
5. Bond. A fidelity bond in an amount set by the Board,
but not less than one million dollars (51,000,000), shall be ac-
quired by the Pool to cover all officers and employees authorized
to disburse funds of the Pool.
i
fi. Register of Expenditures. '.'he Executive Director shall
submit a register of expenditures to the Executive Committee at
its next meeting for its review and approval and shall have at-
tached thereto the declaration of tre Executive Director certify-
, ~ ing the accuracy of the amounts and the availability of budgeted
funds for payment thereof.
7. Execution of Contracts. 'P'te Eoard may authorize an of-
ficer, employee or agent to enter ir.:o any contract or execute
any instrument in the name of and c^ be::alf of the Pool, and such
authorization may be general or cer.f:::ed to specific instances.
Unless so authorized by the Bcard, ro o'_ficer, employee ar agent
shall have any power or authority to bird the Pcol by any con-
tract or engagement or to pledge or to render it liable for any
purpose or to any amount.
WASHINGTON COUNTIES
RZSK POOL BYLAWS - 9 i ~ ~ f~ _ ~ fj~
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8. Compensation. Officers and other members of the Board
shall not receive salaries for their services. Reasonable and
necessary expenses incurred by Officers and other members of the
Board for attendance at meetings of the Board and Committees
shall be reimbursed. Except as provided herein, no member of the
I .Board shall serve the Pool in any other capacity or receive cao-
j pensation therefore.
9. Indemnification. The Pool shall indemnify every person
who was or is a party or is or was threatened to be made a party
to any action, suit, or proceeding, whether civil, criminal. ad-
ministrative or investigative, by reason of the fact that he or
she is or was a director, officer, employee, or agent of the
Pool, or is or was serving at the request of the Pool, or is or
was serving at the request of the Pool as a member, director, of-
ficer, employee, agent, or trustee of another pool, corporation,
partnership, joint venture, trust, employee benefit plan,. or
other enterprise, against ,expenses (including attorneys feesl,
judgments, fines, and amounts paid in settlement actually and
reasonably incurred by him/her in connection with such action,
suit or proceeding, to the full extent permitted by law. Such
indemnification may, in the discretion of the Board, include ad-
vances of his/her expenses in advance of final disposition of
such action, suit or proceedings, subject to the provisions of
any applicable law.
Article 7
New Member Counties
1. New Member Counties.
(a) trembership. A new member, after approval by a major-
' ity vote of the Executive Committee of the Board, shall become an
active participant member of the Pool commencing on the date
specified by the Executive Committee, provided that the new mem-
i ber county has completed the following:
(1) Signed the Interlocal Agreement, signifying the new
member's contractual commitment to abide fully with all
~ prcvisions of the Interlocal Agreement in conjunction
with all other members;
(2) Paid the new member's fee, as determined by the
Executive Committee, in an amount necessary to cover
the new member's share of all organizational expenses,
expenses necessary to analyze its loss data and risk
profile for the determination of its fee and premium;
and
(3) Paid its first annual premium, which payment shall be
made within fifteen (15).days of the month commencing
after signature of the Interlocal Agreement.
Ib) Ratification. Existing member counties need not re-
sign or ratify the Interlocal Agreement in order to allow new
WASHINGTON COUNTIES
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RZ SK POOL BYLAWS . - 10 ` = - ~ ' • ' ~' -• ~'~
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i
{
member counties to join. The new member shall be considered a
member of the Pool to the same extent as all original.and other
members and for all purposes.
(c- Term. New member counties shall become and remain
participants in the Pool for sixty (60) full months following
joining, until and unless terminated as provided for in the In-
terlocal Agreement.
7-rticle S
Coverage Determiaatioa and Jlppeal
1. Coverage Determinations.
(a) Coverage. within a reasonable time after receipt of
notice of a Claim or Summons and Complaint against a member
county or person claiming coverage or protection rights under the
Pool, the Executive Director shall make a determination of cover-
age afforded the member county and/or person ("party."!.
(bl Determination. Upon making a determination of cover-
age, the Executive Director shall notify the affected party in
writing.
(c) Notification. The written determination of coverage
prepared by the Executive Director shall advise the party of one
or more of the following:
(1) whether the Pool will provide the party legal counsel
for defense of the Claim or Complaint;
(2) whether the Pool is reserving any rights to make
subsequent determinations regarding coverage or
protections to be afforded the party; .and
l3) whether the Pool is denying rights to coverage or
protection to the party for one or more of the claims
made in the Claim or Complaint. If coverage is denied,
the Executive Director shall inform the party in
writing of the appeal process contained herein.
Id) written Reasons. If the Executive Director determines
that the Pool should reserve its rights to make subsequent de-
terminations regarding coverages to be afforded a party, or de-
termines that coverages should be denied a party, then the
written notice of such a determination shall also state in a con-
cise form the reasons for any such reservation of rights or de-
nial of rights to coverages. If a later determination confirms
that there is no coverage, the party shall reimburse the Pool for
its costs of defense including, without limitation, attorney's
fees.
WASHINGTON COUNTIES ~~ - ,,,.., ~-
RISK POOL BYLAWS - 11 ~ 1 ~ ~r- ~~ F s.`
.- 7
le) written Reservation. If a final determination of cov-
erages to be afforded a party cannot be made by the Executive Di-
rectoz until after the facts of the Claim or Complaint are de-
termined in a trial in a court of law or other legal forum, th¢
Executive Director shall make a determination of any previously
undetermined issue of coverages within a reasonable time follow-
ing the final judgment of the court or other legal forum respon-
sible for determining the facts of the Claim or Complaint. Such
a determination shall be conveyed in writing to the affected mem-
ber county and/or person and shall contain such necessary infor-
mation as pzovided for above.
(f) Determination Final Unless Appealed. All written de-
terminations by the Executive Director of issues regarding cov-
erages afforded to a party shall be final and binding upon all
parties unless a party files a timely notice of appeal from the
decision to the Executive Committee in the manner specified be-
low.
(g) Nonbinding Advisory Determination. The Executive Di-
rector need not determine coverages afforded by the Pool to a
party until a Summons and Complaint have been served and until
the Pool has received copies thereof. However, the Executive Di-
rector may, in the Executive Director's discretion, issue a non-
binding advisory determination of coverage before then when it
would appear to the Executive Director to be in the best in-
terests of the Pool to do so. Although a nonbinding advisory de-
termination of coverage is made,the Executive Director shall also
provide a subsequent final written determination of coverage af-
ter a Summons and Complaint have been served and copies provided
to the Pool.
(h) Delegation to Claims Administrator. The Executive Di-
rector may delegate to the Claims Administrator the authority to
make reservations regarding rights to coverages on behalf of the
Pool.
1
2. A cal.
(a) Thirty-Day Period. A party aggrieved by the Executive
Director's written determination to deny coverages may appeal to
the Executive Committee. The appeal must be initiated by the ag-
grieved party within thirty (30) days following mailing of the
Executive Director's written determination denying coverage.
(b) Fcrm of Appeal. An appeal shall be initiated when the
aggrieved member county or person serves a written Notice of Ap-
peal upon the Executive Director. The written Notice of Appeal
shall include the following information:
(i) The name of the aggrieved member county or pezson
initiating the appeal.
(2) A brief statement of facts identifying the
WASHINGT-ON COUNTIES ~ ~ ~' ~~r'+~~~
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1.~.,- ,_ .. - ... _~. ., _ _ -. _ _ ..
determination of the Executive Director from which the '
appeal is taken and the reasons why the party.
feels the decision was incorrect. (A copy of the
Executive Director's written determination should be
attached to the Notice of Appeal.)
(3) The signature of the party initiating the appeal.
(c) Hearing Date. within thirty (30) days after an appeal
has been initiated, the President shall convene a meeting of the
Executive Committee to hear the appeal. Notice of the date set
for hearing the appeal shall be mailed to the appealing party not
later than fifteen (15) days prior to the date set for the hear-
ing. The President shall set a hearing date for the appeal and
grant continuance of the hearing date where good cause for con-
tinuance is shown.
(d) uorum. A quorum of the Executive Committee shall be
required for the conduct of a hearing. Meeting and voting re-
quirements shall be as provided in these Bylaws. Provided, how-
ever, if a member county or employee or agent of that county is a
party initiating an appeal, then the Director from the county
shall abstain .from participation and voting on all aspects of the
appeal.
(e) Hearing. The Executive Committee hearing of the appeal
shall proceed as followsz
(1) The President shall conduct the hearing and make all
necessary procedural rulings during the hearing.
(2) The appealing party or legal representatives, if
any, shall proceed first, explaining the reasons why
the party is aggrieved by the decision of the Executive
Director. The appealing party shall present to the
Committee all relevant evidence, testimony, argument
and legal authority in support of the appeal to the
Committee.. Thereafter, the Executive Director and/or
the Counsel to the Pool may present all relevant
evidence, testimony, argument and legal authority
in opposition to the appealing party's position. The
President shall allow one opportunity for rebuttal
evidence and argument to each side thereafter.
(3) Following the presentation of evidence, testimony,
argument and legal authority the Committee may retire
into executive session to discuss the appeal.
Thereafter, the CocrTittee shall reconvene in public
session to consider and vote on any motion made to
determine the appeal. The Committee may vote to uphold
the decision of the Executive Director on to modify or
reverse the decisicn of the Executive Director
determining any issue of coverage afforded the
appealing party. The decision of the Committee shall
be reduced to writing and signed by the President and a
WASHINGTON COUNTIES ~,~ n
RISK POOL BYLAWS - 13 '' ~' ' ` ~ ~ ~ ~ ~ ' ~JIf ,~
copy thereof mailed to the appealing party within seven
(7) days following the final decision of the Committee.
(41 The President may adjourn and reconvene any hearing on
an appeal as may be necessary to preserve a fair
hearing.
(f) Decision. Upon final decision of the Executive Commit-
tee determining an appeal and refusing to grant the relief
sought, the appealing party shall be entitled to seek further, de
novo, review by the Bcard of the disputed issues. The same pro-
cedures as set forth above shall apply, including the requirement
that the appeal be initiated within thirty (301 days following
mailing of the Executive Committee's decision. Exhaustion of
this appeal process shall be a condition precedent to any subse-
quent legal action by an aggrieved party.
Article 9
Conflict of Interest and Appearance of Fairness
The Pool is subject to Washington State law regarding con-
flicts of interest and the appearance of fairness. where con-
flicts of interest or appearance of fairness issues arise, the
affected member counties shall conform to the advice of Pool le-
gal counsel. However, if the affected member county disagrees
with the advice of Pool legal counsel, the Board may by majority
vote exclude a member county Director from a portion of any
executive session where a matter of potential legal conflict be-
tween the Pool and the member county of the Director is to be
discussed.
Article 10
Amendments
New Bylaws may be adopted or these Bylaws may be amended or
repealed by the affirmative vote of a majority of the entire
Board of Directors.
ADOPTED by the Board of Directors on this day of
1988.
WASHINGTON COUNTIES
RISK POOL BYLAWS - 14
WASHINGTON COUNTIES RISK POOL
Chair
Attest:
Secretary
. ~.-ro 6,
J
• A. Pt1RP~OSS
The following procedures have been adopted for reporting in-
cidents and situations is which the county may have some liabil-
ity exposure. This manLai advises all county elected officials,
appointed department hea~s and employees ("county officials and
employees") about the c~~.:^ty's insurance program and explains how
claims against the county shall be handled. In addition, this
manual advises county officials and employees of their re-
sponsibilities. All county officials and employees should re-
ceive and know the provisions of Sections A through F of this
manual.
B. wASHINGTO~t COUNTIES i[ISR POOL
Beginning on Septe~r.Ler 1, 1988, the county joined the Wash-
ington Counties Risk Poc~ ("Pool") for the following areas nor-
mally covered by commerc:ai insurance: general liability, pro-
fessional liability -- Y:nlic officials, professional liability -
- law enforcement, commer=ial automobile liability, and excess
liability (Umbrella), ce~ause of the Pool's retrospective rating
procedure, most of an award paid to an injured person and costs ,
of defense will ultimate: be borne by the county. It is impor- ,
taut that all county oif:~ials and employees be careful in their
actions and not expose the county to unnecessary liability.
C. HAZARDS
1. County officials and employees are the "eyes and ears" of
county government. They should report hazards or other
unsafe conditions to the appropriate office for repsir.
2. Road hazards, da:^aged highway signs and unsafe road
conditions should be reported immediately to the Road
Department at or
3. Unsafe conditic.^.s in any county building should be
reported to.the Facilities Department at
or
4. Other matters s~;culd be reported to the appropriate
department or to the Board of County Commissioners at
or
D. TRAFFIC COLLISIONS ,
1. County officials and employees involved in traffic
collisions during working hours, while on county business
t
WASHINGTON COUNTIES RISK POOL ,~ l~ n '_'''`f~~
CLAIMS MANUAL - 1 '~'
f...r~..........___ .._ ..~.~e __ _. - - _
and/or while in a county vehicle shall not make any
statements at the scene except in private to an
investigating law enforcement officer. No statements
shall be made to, or in the presence of, the other
parties or witnesses. to the accident. "Fault" shall not
be acknowledged. "Fault" is a legal determination that
will be made by the appropriate officials later.
2. Involved county officials and employees shall write down
the names, addresses, and telephone numbers of all
participants in the accident and all witnesses to the
traffic collision. In particular, the driver's license
number, vehicle license number and insurance company of
each party to any traffic collision should be recorded.
Please be observant and accurate, and take pictures if
possible.
3. Traffic collisions occuring within the county shall be
reported immediately to the Sheriff's Office at one of
the following numbers: or
4. Traffic collisions occuring outside of the county shall
be reported immediately to the Washington State Patrol or
the appropriate County Sheriff's Office or City Police
Department.
8. INCIDENT REPOYTS
All traffic collision's and incidents involving county offi-
cials, employees, automobiles or property which might subject the
county to a claim for damages shall be reported by telephone im-
mediately to the head of the county employee's department and to
the County Risk Manager or Deputy Prosecuting Attorney handling
civil claims. Traffic collisions and incidents should be re-
ported by telephone immediately to the Pool and-the Pool's claims
adjuster when:-
(1) Ultimate liability may exceed t100,D00;
(2) Death;
(31 Brain injury, spinal cord damage, real or specific=
(4) Impaired or loss of use of limbs;
(51 Injury significantly affecting the capacity of sight,
taste, smell or hearing;
(61 Significant disfigurement;
(7) Injury to the reproductive organs;
(8) Possible highway design/maintenance liability;
(91 Law enforcement liability;
(10) Potential Errors and Ommissions liability; or
(11) Other incidents that may merit special
notification.
Thereafter, before leaving work on the day of the incident,
the county official or employee involved shall prepare a written
Incident Report, a copy of which is set forth below in Appendix
WASHINGTON COUNTIES RISK POOL ~ •.~-*~(~
CLAIMS MANUAL - 2 1 ~ {''= ~ 1 '' `
A. The Incident Report shall be rev±ewed by such employee's de-
partment head and promptly forwarded to the Office of the Prose-
cuting Attorney. Such Incident Reports are confidential attorney
work product and the contents shall not be copied or divulged to
others. Neither the county official or employee nor the depart-
ment shall retain a copy of the confidsntial Incident Report.
The county official or employee involved and all other county
officials and employees shall. cooperate fully with the investiga-
tion of the incident performed under the direction of the Pool or
the Office of the Prosecuting Attorney.
F. FILIfI(i CLAIMS
Claims are made against the county by filing a written Claim
for Damages, an example of which is set forth below in Appendix
8, with the Clerk of the Board of County Commissioners. Claims
forms aze available only from the Office of the Prosecuting At-
torney and the County Risk Manager. If a department is contacted
by a claimant about making a claim, the department shall not vol-
unteer information and shall refer tY.e claimant to the Office of
the Prosecuting Attorney or the County Risk Manager. No county
official or employee shall assist the claimant in preparing a
claim or review with the claimant a completed claim for legal
sufficiency. No county official or employee shall notarize a
completed claim.
After a claim is filed, the Clerk of the Board of County Com-
missioners shall indicate on such claim the date of filing. The
Clerk shall provide copies to the Pool, the Prosecuting Attorney,
the County~Risk Manager, and to elected officials and department
heads of the offices and departments involved. The appropriate
elected officials and department heads shall assist the Office of
the Prosecuting Attorney by providing necessary reports.
The Prosecuting Attorney's files are kept confidential as at-
torney work product. A department shall not retain a copy of a
confidential written report. If a copy of a confidential report
is kept by a department in its files, it may be subject to
disclosure under the Public Disclosure Law and under court rules
of discovery. The confidentiality of the report is thereby de-
stroyed. Copies of these confidential reports may be obtained by
the office or department after settlement has been made and a li-
ability release has been obtained. However, since these written
reports are confidential as attorney work product until that
time, county officials and employees should freely express them-
selves in reporting on a claim in any confidentially written re-
port requested by and furnished to the Prosecuting Attorney's Of-
fice. Such reports should have the following legend written at
the top:
CONFIDENTIAL ATTORNEY WORK PRODUCT
This report is made at the request of the Prosecuting
WASHINGTON COUNTIES RISK POOL 1 ~ ~ra ;''~'~ 1_
CLAIMS MANUAL - 3 ~.'_ L-i ~':' `~
~ ~
Attorney to prepare a legal defense to a claim that
may be or has been made against the county. As such.
the contents of this report are confidential as part
of the Prosecuting Attorney's work product and shall
not be divulged to others.
d. CLAIM RSVI~M
The Office of the Prosecuting Attorney, with the assistance
of the County Risk Manager, shall promptly 5czeen every Claim for
Damages submitted against the county and advise the Pool and the
Board of County Commissioners about the disposition of all such
claims. The county may ad}ust and settle small claims of up to
one-fifth of the county's deductible amount, or (5,000. whichever
i~ smaller, without using the Pool's claims-adjusting services.
The Board of County Commissioners shall dispose of such small
claims by adoption of an appropriate resolution stating the
Board's findings in the matter. The Board shall promptly give
written notice to the claimant of such disposition. A copy of
the notice and resolution shall also be sent to the Pool, the Of-
~ fice of the Prosecuting Attorney, the County Risk Manager and
elected officials and department heads of the offices and depart-
ments involved.
The Pool shall coordinate claims administration of larger
claims. The Pool shall decide whether a claim will be forwarded
to the Pool's claims adjuster for adjusting or handled in-house
~ by county or Pool staff. The adjuster has authority to settle
any claim up to Twenty Five Thousand Dollars (525,000). The ad-
juster shall inform the County Risk Manager of the progress of
1 the claim and discuss settlement of the claim prior to the final
adjustment. If the county objects to the settlement, the ad-
juster shall try to resolve the disagreement. If the adjuster is
unable to do so, Pool personnel shall confer with :he county and
the adjuster to resolve the disagreement. If the dispute is
still unresolved, the Pool shall have the ultimate authority to
settle the claim.
Settlement of claims of Twenty Five Thousand Dollars
(525,000) and more must be approved bl~ the Executive Committee of
the Pool's Board of Directors. The adjuster shall first contact
the affected county for approval, then present the settlement to
the Executive Committe of the Pool's Board of Directors in Execu-
tive Session. Board review of the larger claims allows .all mem-
ber counties the opportunity to understand the full facts of the
claims and to use the information in their respective loss con-
trol programs.
B. F'AYM®iT OF CLAZMS
Each county shall establish a Claims Fund pursuant to RCW
36.33.Ob5 and fund :t adequately to pay claims and costs as they
come due.'
WASHINGTON COUNTIES RISK POQL
CLAIMS MANUAL - 4 ., . _ ~ .~,,.,w. ~
- - .
,_ . .
By statute, the county is brought into a lawsuit by service
of the Summons and Complaint upon the County Auditor. No county
employee, not even the County Risk Manager or member of the Pros-
ecuting Attorney's Office, is authorized to accept service of
process. Copies of the pleadings shall be sent immediately to
the Pool, the Board of County Commissioners, Office of the Prose-
cuting Attorney, County Risk Manager and elected officials and
department heads of the offices and departments involved.
After reviewing the sufficiency of service of process, the
Prosecuting Attorney shall file a Notice of Appearance for the
county with the court. A copy of the Notice of Appearance shall
be sent to the Pool. The Pool shall decide whether the pleadings
will be forwarded to a Pool Attorney or defended by the Prosecut-
ing Attorney. If a Pool Attorney is assigned, the Prosecuting
Attorney shall appoint the Pool Attorney pursuant to RCW
36.27.040 as a special deputy prosecuting attorney, and the Pool
Attorney shall associate with the Prosecuting Attorney on the
case.
Attorneys shall report quarterly or more regularly to the
Pool. Suits defended by the Pool shall be reviewed periodically
by four t4) person Litigation Review Panels composed of the Exec-
utive Director of the Pool, the Pool's claims adjuster, and two
(21 Prosecuting Attorneys or Deputies appointed by the President
of the Pool, none of whom are representatives of the member
county involved in the disagreement. The Prosecuting Attorney
and the associating Pool Attorney shall resolve in good faith
disputes in case tactics or settlement negotiations. If the at-
torneys are unable to resolve such disputes, the Litigation Re-
view Panel shall attempt to resolve the disagreement. The deci-
sion of the Panel shall be final and enforceable by a court of
competent jurisdiction.
NGTON COUNT +
_ •~~-, -Z
CLAIMS MANUAL IES RISK POOL
~I
COUNTY INCIDENT ItEPOitT
CONFIDENTIAL ATTORNEY WORK PRODUCT
This incident zeport is toade at the request of the Prosecuting Attor~y to
prepare a legal defense to a claim that may be or has been made against the
county: As such, the contents of this report are confidential as part of the
Prosecuting Attorney's work product and shall riot be divulged to others.
a. Claimant's Name?
b. when did the incident occur (date and tines)?
c. Where did it take place? (street address or location in building)
t
d. what happened? Luse back of sheet if necessary)-
i
e. what was damaged?
f. what is the estimated dollar amount?
q. why does the claimant believe the County may be responsible?
i
.~
i
h. Are other persons also responsible? (If so, state names and addresses.)
r
+i
1 ~
i. what defenses are available to the County?
r
j. who witnessed the incident (names, addresses; telephone numbers)?
i
Claimant's witnesses: k, County's witnesses:
1. Date Prepared: m. /s/
Name, Position and Department
n. Date Reviewed: o. /s/
Department Head
p. Date Received: q. /s/
Deputy Prosecuting Attorney
~~ ~I
CONFIDENTIAL ATTORNEY WORK PRODUCT '~-
~ DIX A
APP
TN['I11c*.'T AFPQRT - 1
~ ~
_ , .._._ - ...,_. ~.~o .
CLAIM PEON D
This Claim Form ~s provided solely as an accommodation to
claimants, and the County makes no representations as to its le-
gal sufficiency. Responsibility for complying with all require-
ments of State law regarding claims rests with the claimant. No
County Employee is authorized to advise a claimant in completing
this form or reviewing its sufficiency. The County expressly
disclaims responsibility for any such advice or review. (If more
space is needed to answer any items, attach additional sheets and
specify the item number.)
TO: CLERK OF THE BOARD OF COUNTY COMMISSIONERS,
County Courthouse, MA
STATE OF WASHINGTON 1
ss
COUNTY OF 1
being fizst duly swozn on
sprint full name)
oath, deposes and says that I am the claimant herein and believe
the contents of this_ claim to be true. I hereby present a claim
for damages against County, Washington, based
upon the following information as required by RCW 36.45.020:
1. My actual residence at the time of presenting and filing this.
claim is:
2. My actual residence during the six (6) months immediately
prior to thz time this claim accrued was:
f
3. The incident for which I make claim against the County
occurred on the day of 19,_,
at a.m./p.m.
j 4. The incident occurred at the fallowing location:
CLAIM FOR DAMAGES - 1 APPENDIX $
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5. My injury or damages were caused or happened as follows:
6. The nature of the injury or damages I sustained .are:
f
7. The amount of damages I sustained are itemized. (A billing
or two (2) estimates of the cost of repairs must be attached
to this claim, together with the name of your insurance
agency.l:
t
DATED this day of 19
Claimant
SUBSCRIBED and SWORN to before me this day of
19~
~ Notary Public
s"
(Appointment Expires: )
CLAIM FOR DAMAGES - 2 ~ APPENDIX B