INTERLOCAL
AGREEMENT
FOR THE
PUBLIC
UTILITY RISK MANAGEMENT SERVICES (“PURMS”)
JOINT
SELF-INSURANCE FUND
Amended and Restated
as of
TABLE OF CONTENTS
1. Predecessor Self-Insurance
Agreements
2. Amended and Restated Self-Insurance
Agreement
4. Status of the Parties, Purpose of
Agreement and Authority of the Fund.
4.1 Nature of Parties/Purpose and
Existence of Fund
4.2 Authority of Fund/Independent
Legal Entity
4.3 The Fund Distinguished from the
System
4.4 The Fund’s Joint Operation of the
Risk Pools.
4.4.1 Participation in or Withdrawal
from Risk Pools at Members’ Choice
4.4.2 Common Board of Directors/Right
to Vote
4.4.3 Separate Assessments and
Accountings for Risk Pools
4.4.4 SIA Provisions Applicable to “The
Fund” Govern the Risk Pools
4.5 Risk Pools Entitled to Beneficial
Use of Their Respective Assets
4.6 Members Have No Direct Ownership
Interest in Fund or Risk Pool Assets
4.8 Fund May Not Obligate Members
Directly
4.9 Service of Process on Fund
5. Program Documents, Amendment
Procedures and Voting Standards
5.1 Basic Self-Insurance Program
Documents
5.1.1 The Self-Insurance Agreement
5.1.2 Appendices to Self-Insurance
Agreement
5.1.5 Inter-Relation of Program
Documents
5.2.2 Warrant of Authority and Voting
Standards for Amending Program Documents
5.3 Provisions Subject to Amendment
Only by Unanimous Vote and Authorizing Resolutions
5.4.2 Rules Regarding Amendments Having
Retroactive Effect
5.5 Authorizing Resolutions by Members
5.6 Adoption of the SIA and
Operational Rules
6.1.3 Authority of Employee Designees
6.2 Specific Authority and Duties of
Board
7.1.2 Permitted Action/Agenda Issues
7.4 Meeting Agendas/Member Submission
of Issues for Decision by Board
7.5 Waiver of Defects in Agenda or
Notice of Meeting
7.6 Decisions on Issues Not on Agenda
or in Notice of Meeting
7.8 Rules of Conduct for Meetings
7.9 Open Meetings, Executive Sessions
and Maintenance of Confidentiality and Privileges
7.11 Members Involved in Pending or
Potential Litigation with the Fund
8.1 Enumeration and Qualifications
8.2 Term of Office, Vacancies and
Removal
9.1 Special Purpose Committees
9.2.2 Executive Committee Meetings
9.2.3 Additional Executive Committee
Authority for Initial Operation of H&W Pool
9.3.1 Composition and Duties of
Committee Members
9.3.2 Duties of Operations Committee
9.4.3 Authority and Responsibilities
9.4.4 Primary Jurisdiction and
Delegation of Authority
10.1.2 Procedures Governing Selection or
Renewal of Administrator
11. Fund Records and Board and
Committee Meeting Minutes.
11.2 Custodian and Right to Inspect
Records
11.3 Board and Executive and Operations
Committee Minutes
11.4 Minutes of Administrative Committee
Meetings
12. Fund Auditor, Fund Accounting and
Financial Reporting Requirements.
12.1 Auditor’s Authority and Duties
12.2 Fund’s Investment Policy and
Procedures
12.4 Fund Disbursement Procedures
12.5 Accounting Guidelines, Financial
Statements and Fiscal Year
12.6 Fund’s Monthly Receipts and
Expenditures Analyses
12.7 Financial Reporting Requirements
12.8 Separate Accountings of Risk Pools’
Income and Expenses
13. Fund and Risk Pool Financing and
Assessment Methodology.
13.1 Liability and Property Risk Pool
Balances
13.1.1 Designated Risk Pool Balance
13.1.2 Actual Risk Pool Balance
13.1.4 Distribution of Surplus to Members
13.1.5 Allocation of Administrative
Expenses Among Risk Pools
13.2.1 H&W Pool Reserves Funded by
Initial Deposits
13.2.2 Adjustments to Amounts of Initial
Deposits
13.2.3 Monthly H&W Assessments to
Maintain H&W Pool Reserves
13.2.4 Ownership of Initial Deposits and
Uses of the H&W Pool Reserves
13.2.5 Determination of Amount and Use or
Disposition of “Surplus” Money Held on Behalf of H&W Pool
13.3 Short-Term Inter-Pool Loans;
Authority for Financing the Development of Additional Programs
13.3.1 Short-Term Inter-Pool Loans
13.3.2. Authority for Financing the
Development of Expanded or Additional Programs
13.4.1 Interim Automatic General
Assessments re Liability and Property Pools
13.4.2 Annual Automatic General
Assessments re Liability and Property Pools
13.4.3 Discretionary General Assessments
re All Risk Pools
13.4.4 Special Purpose Account, Special
Purpose Assessments and Other Funding Mechanisms
13.4.5 Monthly H&W Assessments for
H&W Pool
13.5.1 General Assessment Formulas
13.5.2 Premium Assessment Formulas
13.5.3 Reserves Assessment Formula for
Property Pool
13.6 Payment of Assessments/Interest
13.7 Remedies for Unpaid Assessments
13.8.1 Limit on General Assessments for
Liability and Property Pools
14.1 Mandatory Primary Excess and Other
Excess Coverages for Liability and Property Pools
14.1.1 Minimum Excess Coverage/Mandatory
Member Participation
14.1.2 Multiple-Layer Primary Excess
Coverage
14.1.3 Establishment of Different Coverage
Limits for Specific Types of Fund Coverages
14.2 Supplemental Excess Coverage for
Liability and Property Pools
14.2.2 Compulsory Participation in Other
Excess Insurance
14.3 Mandatory Stop Loss Insurance for
H&W Pool
14.4 Allocation of Expenses Relating to
Fund Excess Insurance and Stop Loss Insurance
14.5 Board Authority to Provide Coverage
for Gaps Relating to Primary Excess Insurance
15 Coverage Litigation with Excess
or Stop Loss Carriers.
15.1 Right to Invoke Fund’s Coverage
Litigation Obligations
15.2 Authority of Board and Committees
15.6 Joint Prosecution of Coverage Litigation
Under Reservation of Rights
15.8 Settlement of Coverage Litigation
15.9 Payment of Recovery Proceeds
16.1 Subgroup Procedures and Establishing
Subgroup Participants
17.1 Authority and Adoption of Programs
17.2 Formulation and Adoption of Loss
Control Guidelines
17.3 Members’ Actions Constituting
Violation of Risk Management Program
17.4 Compliance Procedures and Board
Remedies for Violation of Risk Management Program
17.4.1 Consultation with Member/Issuance
of Remediation Letter
17.4.2 Effect of Issuance of Remediation
Letter and Board Remedies for Violation
19 Appeal Procedures and
Administrative Committee’s Primary Jurisdiction
19.1 Primary Jurisdiction of
Administrative Committee and Exceptions Thereto
19.2.1 Issues Subject to Mandatory Appeal
Procedures
19.2.2 Exception to Appeal Procedures
19.2.4 Modification of Requirements
19.2.6 Appeal Representation and Legal
Counsel
19.2.7 Processing of the Appeal
19.2.8 Exhaustion of Appeal Procedures as
Prerequisite to Arbitration
20 Withdrawal From a Risk Pool
20.1 Notice of Intent to Withdraw
20.1.1 Notice with Respect to Liability
and Property Pools
20.1.2 Notice with Respect to H&W Pool
20.2 Obligations of Former Member to the
Fund
20.2.1 Obligations to Former Member with
Respect to Liability and Property Pools
20.2.2 Obligations of Former H&W
Member With Respect to the H&W Risk Pool