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HomeMy WebLinkAbout081 88~ ~~ o~~~-a Gr;~..'fl 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. '''~'~~ }' d.. ~ 't : 6.t 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 iti s p t• ...:- 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 ~~ ~ ~~ i i~1_ ~ 1 f ' 'e_,' ~~ .l G~ th R , ~, ~..~.x..,.,_ ..,,.~..~~..z--. ~.~ :~. P ~t~~~ =~~ =0tis/ ~Y _; ,: ZNTBRI~OC]-L 11GREEMEN'P CRF,~ITING ~•.e.s~e. '' '1'~iE - ~ 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: ~~ ,,_. ?f,.~ ,. ~. ` 14 • INTERLOCAL AGREEMENT CREATING THE WASHINGTON COUNTIES RISK POOL - 1 ` ~ ~~ t~W i.> 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 i,.- _ •~'"''nr' .~ '• 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 ~ 1 ,... ~j %: t~~fi - ::~.,~_ ,_.._._ . ' , 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~ ~~'~;•.~', J - - - .._ -'.'=s~..s.k.~ns•aswc+..+,uraa~s:~su..•--"- - - -iaPi6aa IYtr~iiw~ a •~ 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 } 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 ~ ~ ~~ ~t' •~r, ` iJ. ~ ~ \f /.•1\~.7 ' • t i 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. ~~,. ~~,~1 ~~ INTERLOCAL AGREEMENT CREATING THE WASHINGTON COUNTIES RISK POOL - 6 ~~.,,,~ i i. 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 I t~ ,~. . . ~ ~ .t+.. i 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 ~ •~•~~" ~t a2 1 ~ ~ ~~.`Y........_..~..__Y.. _ -- -_-'~"`fr7Y (iM(~L':.._ _ -- _ ..i7i6-rsl_ - t ~~ • ~~ • 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 ~ 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. 'v_ )~:~~ :_ ~2 f INTERLOCAL AGREEMENT CREATING THE wASHINGTGN CGUNTIES RISK POOL - 9 , ,~ . ~~ ~~ .7 J~! ~ ~ 4 l • ~. 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. i • • • • • • • • : • • • • a • • * • • • • • • • a • s • • • • • • 'v. _ ~fi;'~ ~; Il:TERLOCnL AGREE`".ENT CREATING THE WASHIKGTCti COU::TZES RISK POOL - 10 ~ y _ ` . ' .- ~+, J ~ ~ ~'~ •~L~,r rYt.L4~ ~ ~"%~' iWb l,a"wY Y"'-'_._.. W ~i.i/w14Li .r . 1 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 s ~-_ RGF~ '. BRONP] .~ ~y~' _ +,, ~ I fv :~~~Wy ••'rf~f~ti ~~ . ~ Y ~~~. '~ ..' • ' u ~ O •. ;~^- ~~~r.~. . • • 1 r. ~ /, ~ O 1 • /~,• ACCE TED BY THE OOL this day of -~--~ 19 ~. 1 ~. 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.~ 1 .~~: i 1 J ~ ~ 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 ! r 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 ~- RISK POOL BYLAWS - 3 ,." i ~'~ ~;. • ~~ •~~'~r'"~'~ . •J. 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 ~ ~ ` '~" ~ ~ = ~ • 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 } WASHINGTON COUNTIES ~, e F r~ ;?"'~1. RISK POOL 6YLAWS - 7 « 1 ~ ' ~ ~ . , .,~..r __ _ _...-...~...._....._ --..._.._ ......__ ..~.-__......w.~.-,_....a_nm.....,......_..__..-~_____._w.._-. _._.,.. r.. 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~ ~~ 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 • - .,.ti RZ SK POOL BYLAWS . - 10 ` = - ~ ' • ' ~' -• ~'~ ~ ~ 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'+~~~ I RISK POOL BYLAWS - 12 ' ~ - ~ ~"' ~ ' 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 $ ..•. a. ~. ~ :~ i • ~--. c .,waWGC~ 4~.'~~. : ~ a ~e.m..: ~.,,~i3rs.~rvn. ~.e. _. . ~ s 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