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01/12/2010 - Regular - Packetw gI'..,; t ~ City Council Meeting Agenda January 12, 2010 CITY OF PORT ORCHARD 7:oo p.m. Mayor: Lary Coppola EFFECTIVE January 1, 2010, Meetings will ONLY be available for viewing on Administrative Official the City's Website at www.cityofportorchard.us Councilmembers: Fred Chang Chair: Lodging Tax Advisory 1. CALL TO ORDER Committee A. Pledge of Allegiance Tourism Committee Staff: Clerk's Office 2. CITIZENS COMMENTS Jerry Chair: Tourism a Committee Please limit your comments to g minutes for items not up for Public Hearing. When St . ClerlrisO Staff: Clerk's Office recognized b the Mayor, lease state our name and address or the official record 9 y y P y f ,� (please complete the sign -in sheet located in the hallway). John Clauson Chair: Finance Committee staff: CStyT easurer 3. APPROVAL OF AGENDA Utilities Committee r Jim Colebank 4. CONSENT AGENDA Tourism Committee (Approval of Consent Agenda passes all routine items listed below, which have been Public Property Committee distributed to each Councilmember for reading and study. Consent Agenda items are not Fred Olin considered separately unless a Councilmember so requests. In the event of such a request, Utilities committee the item is returned to Business Items.) Public Property Committee A. Approval of Claim Warrants, Payroll & Treasurer's check book Carolyn Powers B. Approval of the December 15, 2009, Work Study Session Minutes Chair: Public Property Committee C. Approval of the December 22, 2009, Council Meeting Minutes Staff: Plamting Department Finance D. Approval of Public Event Application: Cub Scout Day Camp (Kirkpatrick) Rob Putaansun Chair: Utilities Committee E. Adoption of Resolution No. ooI-lo, Amending Resolution No. 1797, Staff: Public Works Department a Policy for the Display of Banners from the Marquee over SR-166 Finance (Kirkpatrick) Department Director: Patti Kirkpatrick F. Adoption of Resolution No. 002-10 Authorizingthe Mayor to p � Y Administrative Services Execute an Agreement with AllianceOne for Port Orchard Municipal City clerk Court's Collection Services (Hunt) Allan Martin City Treasurer 5, PRESENTATION Debbie Hunt A. Holiday Lights Contest Awards Presentation (Mayor/Council) Court Administrator B. Records Management (Kirkpatrick) James Weaver Development Director 6. PUBLIC HEARING - NONE At Townsend Police Chief 7. BUSINESS ITEMS Mark Dorsey, P.E. A. Appointment of Mayor Pro-Tempore for 2010 (Kirkpatrick) Public Works Director B. Adoption of Resolution No. 003-10, Authorizing the Mayor to City Engineer Execute an Interlocal Agreement with the Association of Washington Contact Cities Risk Management Service Agency (Kirkpatrick) g g Y ( P ) u6 Prospect Street Prospect Port Orchard, WA 98366 (36o)876-4407 Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required Meeting materials are available on the City's website at: www.cityofportorchard.us or by contacting the City Clerk's office, 360.876.4407 You may now view City Council Meetings from the City's website: www.cityofportorchard.us January 12, 2oto, Meeting Agenda Page t of 2 C. Discussion: Council Retreat Date (Mayor) 8. REPORTS OF COUNCIL COMMITTEES 9. REPORT OF MAYOR io. REPORT OF DEPARTMENT HEADS 11. CITIZEN COMMENTS (Please limit your comments to 3 minutes for items not up for Public Hearing. When recognized by the Mayor, please state your name and address for the official record. It is asked that you do not speak on the same matter twice.) 12. EXECUTIVE SESSION: Pursuant to RCW 42.30.lio, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 13. ADJOURNMENT COMMITTEE MEETINGS Date &Time Location Finance Committee January 22, 2010 Myhre's 7:30 a.m. Tourism Committee March 10, 2010 City Hall 5:30 p.m. Utilities Committee January 15, 2010 Myhre's 7:30 a.m. Sewer Advisory Committee (SAC) January20, 2010 S.K.W.R.F. 6:30 p.m. Public Property Committee January 14, 2010 City Hall 3:00 p.m. Work Study Session January19, 2010 City Hall 7:00 p.m. Please turnoff cell phones during meeting and hold your questions for staff until the meeting has been adjourned The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required Meeting materials are available on the City's website at: w w.cityofportorchard.us or by contacting the City Clerk's office, 36o.876.4407 You may now view City Council Meetings from the CiWs website: www.cityofportorchard.us January 12, 2010, Meeting Agenda Page 2 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No. Consent Agenda 4D Meeting Date: Subject: Approval of Public Event Application: Prepared by: Cub Scout Day Camp Atty Routing No: Atty Review Date: January 12, 2010 Patti Kirkpatrick, CMC Citv Clerk NA Summary: Each year several organizations request permission to close certain City streets; request the use of City parking lots; or use City Parks. The Cub Scout Day Camp has submitted their application for a public event from July 11, 2009 to July 24, 2010 at the Van Zee Park, excluding the tennis courts. City departments, as well as the Fire Department, have reviewed the application and have submitted their recommendation and/or comments. The applicant submitted their request early in order to be able to print their brochures and have adequate time to advertise well before the event takes place. This Public Event Application is not a new event; they have been granted permission to host their event in the City Park for the past two years. Recommendation: Staff recommends approving the Public Event application. Motion for consideration: I move to approve the Public Event application for the Cub Scout Day Camp from July 11, 2009 to July 24, 2010 at the Van Zee Park. Alternatives: Deny the application or approve with conditions. Attachments: Application Comments from City Departments and Fire Department t City Clerk's Office 216 Prospect Street Port Orchard, WA 98366 roma - 360-876-4407 * 360-895-9029 (fax) Public Event Application NOTE: Acceptance of this application by the City Clerk's Office does NOT indicate or guarantee approval of the application or the dates requested. Each application will be reviewed by City staff and Council Committee. Additional information may be requested by city personnel prior to submittal of the application to the City Council for final consideration. No statement made by city staff or elected official prior to final consideration by the City Council shall obligate the City Council in any manner. Name Name of Sponsoring I Name of Person Completing This Application: / n- i/ kc p— k •l f/ Point of Contact: &t P4Lt/ /, C P� K Street Dates of Event Location of Event: Telephone:)/U—/f of — Z?c5J City State Zip Code Have Multiple Ac(hities and Locations, List On Separate Sheet) Anticipated Number Of Exhibitors: Time Open To Public: AM Anticipated Number Of Visitors: Time Open To Vendors: d 7t) 6 Closing Time: ) 7U 0 This application form was designed for use by applicants for various types of events. Please answer all questions; you may attach additional pages if necessary. 1. Describe typ j of event and how this event will benefit the community: �Ct ry M c g u1— y Ca NY;? 2. What is expected traffic pattern for the event? Attach a site map indicating location of each activity/vendor(s), fire lanes, garbage, and restroom/sani-can(s): 3. Describe how public safety, traffic and crowd control will be providgd How many police officers do you anticipate will be needed for (1) traffic control and (2) crowd control? //��// 4. 5. How many participants and visitor cars are anticipated and where will parking be provided? f 6. How have City Clerk's Office 216 Prospect Street Port Orchard, WA 98366 360-876-4407* 360-895-9029 been coordinated with the neighbors (residential and/or business)? 7. Has shuttle service/park and ride lots been coordinated with Kitsap Transit? Describe locations, frequency of service and namVntact at Kitsap Transit. Attach written verification of commitment for service from Kitsap Transit:_ 8. Describe how fire lanes be identified and kept open: Yh o-r ked wT U w a )h y - r 9. Will this event reVe the closure of any street? If so, list street name with date and time of requested closure: 10. If any event activity or vendor requires electrica(yonnections or otherIaccommodation to operate, indicate location and how you anticipate meeting their needs: /S U e A/eeci eel 11. How will the vent area be cleaned efore during and after the event?� r t i Pa n tS a�tc I er V,6 Ji �ej, 12. If your event requires vehicles to be towed, your organization must accept responsibility and indemnify the City of Port Orchard and other authorizing property owner(s) by agreeing to pay tow/storage charges or damage claims which result from the vehicle being towed, if a court rules in favor of the registered owner and orders payment of such charges or damage claims. Do you accept this responsibility? ❑ Yes ❑ .ij^ If yes, name of person responsible for rendering payment of tow/storage charges. If no, explain why: /! 13. When specifying location of event activity/vendor(s), do you anticipate utilizing any area not owned or managed by the City of Port Orchard? ❑ yes X no If yes, the ownerlmanager of subject property must complete and sign the following: (Please ask for additional forms if multiple properties are being used and have different owners.) Name of property owner: Authorizing authority: Address: Signature of authorizing authority: Title: Telephone: A. If the City of Port Orchard approves this application for public event, will your organization grant permission for the sponsoring organization to use your property on the dates specified, for the purpose and activities described in this application? ❑ Yes ❑ No If yes, please complete the following: B. Are there any limitations or restrictions on use of your property? ❑ Yes ❑ No If yes, please describe in detail: .a111 City Clerk's Office 216 Prospect Street Port Orchard, WA 98366 360-876-4407* 360-895-9029 C. Do you require the event sponsor list you as an Additional Named Insured and provide an insurance certificate to your organization prior to the event date? ❑ Yes ❑ No If yes, please indicate coverage limits you require for general liability, property damage and or personal injury? 14. If nature of this event requires event workers to stay overnight (such as carnival or other event workers) where and how do you anticipate providing their lodging? If you anticipate utilizing private property(s) for lodging or other pure es the owner of the subject roe s ust om let and Si n the fgllgqwing: a c A�L ,a oJi re'c- rs wl be 9TMyinff InparroJI a-1 49M en S inT' Q J ry O pl'aVr'd�G�CUNi7y Name of property owner: -Pvr th e- ea mp o. n c) ou r e'qr lP `n en Authorizing authority: _ Address: Signature of authorizing e Title: Telephone: A. Are there any limitations or restrictions on use of your property? ❑ Yes ❑ No If yes, please describe in detail: B. Do you require the event sponsor list you as an Additional Named Insured and provide an insurance certificate to your organization prior to the event date? ❑ Yes ❑ No If yes, please indicate coverage limits you require for general liability, property damage and or personal injury? C. How will use of your property by event workers impact neighboring property owners? Describe steps that will be taken to mitigate any adverse impact(s): 15. Plepse provide any other you believe, will assist the. city in thg review 16. INSURANCE REQUIREMENTS: Sponsoring organization must provide an insurance certificate, 10 days prior to the event, with the City of Port Orchard and other applicable parties shown as Additional Named Insured. Minimum coverage to be as follows: $1,000,000 Liability; $1,000,000 Bodily Injury A. Can you provide this Insurance Certificate? yes SIGNATURE OF APPLICANT:Date: /a CITY OF PORT ORCHARD Public Works Director 216 Prospect Street, Port Orchard, WA 98366 Voice: (36o) 876-4991 • Fax: (36o) 876-498o mdorsey@cityofportorchard.us www.cityofportorchard.us PUBLIC EVENT APPLICATION REVIEW TO: City Clerk's Office FROM: Mark R. Dorsey, P.E. - Public Works Director/City Engineer DATE: December 22, 2009 RE: Public Event Application - Cub Scout Day Camp 2009 In response to the above referenced Public Event Application dated 12/2/2009, the City of Port Orchard Public Works Department approves the event application with the following requirements: 1. Due to issues from last year's event, the public restroom will be closed. Provision for additional SaniCans will be required. 2. Proposed tent stake locations will need to coordinated with the Parks Department prior to driving of stakes (contact Bill Theile @ 535.2492) C:\Documents and Settings\dkwalker\Local Settings\Temporary Internet Files\Content.Out look\72G263WF\Event Review 122209.doc Memo To: Brandy Rinearson, City Clerk Office From: Greg Rogers, Fire Prevention Manager CC: Date: December 22, 2009 Re: Cub Scout Day Camp The South Kitsap Fire & Rescue Prevention/Education Office has completed a review of the application for public event dated received December 22, 2009 for the Cub Scout Day Camp, located at Van Zee Park, and approves the plans with the following comments and stipulations: • A burn permit will be required for any recreational burning during the event. o The recreational burning shall not exceed a pile greater than 3 feet long by 3 feet wide, and 2 feet high. Burning shall consist of cut firewood or charcoal only. A permit may be applied for at the Headquarters Station of South Kitsap Fire & Rescue, located at 1974 Fircrest Drive SE, Port Orchard. Nothing in this review is intended to authorize or approve of any aspect of the design that does not comply with all applicable codes and standards. Should additional information become available, these comments may require modification. Please insure that additional information regarding this project is forwarded to our office. If you have any questions, please contact me at 871-2411. Sincerely, Greg Rogers Fire Prevention Manager Page 1 of 1 Permit Review DATE: DECEMBER 31, 2009 TO: CITY CLERKS OFFICE FROM: CHIEF TOWNSEND SUBJECT: SPECIAL EVENT PERMIT - CUB SCOUT CAMP The Port Orchard Police Department approves of the special event permit application with the following requirements: 1. Report any problems or suspicious activity to the Port Orchard Police immediately. 2. Comply with all city ordinances and regulations. 3. Volunteers should be provided to ensure safe crossing from the parking at Bethany Lutheran across Tremont to the park. The volunteers should be in highly visible vests and shall NOT direct traffic. They should only ensure that pedestrians use the crosswalk and traffic signal control. 4. A police officer can be provided for the above at the off -duty rate of $40 per hour with a 3 hour minimum. City Council has declared which events are paid for by tax dollars and this event is not included per council resolution. In turn, the services would be at the applicant's expense. City Clerk's Office 216 Prospect Street \ /! Port Orchard, WA 98366 cirr "-= 360-876-4407 * 360-895-9029 Fort NOTE: This section to be competed by City staff after application is submitted to the City. REVIEW AND COMMENT BY POLICE DEPARTMENT: REVIEW AND COMMENT BY FIRE REVIEW AND COMMENT BY PUBLIC WORKS: + ' REVIEW AND COMMENT BY FINANCE DEPARTMENT: N REVIEW AND COMMENT BY ADMINISTRATIVE DEPARTMENT: REVIEW AND COMMENT BY PLANNING DEPARTMENT: DATE APPLICATION RECEIVED: DECISION OF CITY COUNCIL: ❑ APPROVE ❑ DISAPPROVE DATE OF DECISION: CONDITIONS: Approved By Patricia J. Kirkpatrick, CMC City Clerk/Assistant to the Mayor Revised 03/0312009 Brandy Rinearson From: James Weaver Sent: Tuesday, December 22, 2009 4:23 PM To: Brandy Rinearson Subject: RE: Public Event: Cub Scout Day Camp Planning has no issues with the event. Thank you. James R. Weaver, AICP City Development Director City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 Phone: 360-876-4991 Fax: 360-876-4980 Email: iweaver(a)cimort-orchard.wams Website: www.citvofoortorchard.us From: Brandy Rinearson Sent: Tuesday, December 22, 2009 11:01 AM To: 'Rogers, Greg'; Mark Dorsey; James Weaver; Allan Martin; Alan Townsend Cc: Patricia J. Kirkpatrick; 'Shepherd, Shawn'; Donna Phipps; Jay Cookson Subject: Public Event: Cub Scout Day Camp Boy Scouts of America is requesting approval of their public event application at this time, due to their publication for advertising deadline being at the end of January. Please review the attached Public Event application for the Cub Scout Day Camp and return your comments to me no later than January 4, 2010. Please let me know if you have any questions. Best Wishes, Brandy Rinearson, Deputy City Clerk Administrative Services Direct (36o) 876-7030 Fax (36o) 895-9029 Please be aware that e-mails which pertain to City business may be considered public records and may be subject to public disclosure laws. If you think that you have received this e-mail message in error, please notify the sender via e-mail or telephone at 360.876.7030. City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No. Consent Agenda 4E Subject: Adoption of Resolution No. oo1-1o, Amending Resolution No. 1797, a Policy for the Display of Banners from the Marquee over SR 166 Meeting Date: January 12, 2010 Prepared by: Patti Kirkpatrick, CMC Citv Clerk Atty Routing No: NA Atty Review Date: NA Summary: Resolution No. 1797 was established on March 23, 1998, setting the policy for the display of banners from the Marquee over SR-166. Section 7.1 specifically states, all applications to hang a banner shall be submitted to Fire Authority at Station 31 located at aoo Tremont Street. Currently, the location of the main office for the fire authority, South Kitsap Fire and Rescue, has moved from its location on Tremont Street to the facility on Fircrest. Chief Senter has requested that the policy be updated to reflect banners shall be delivered to the administrative offices of South Kitsap Fire and Rescue. Recommendation: Staff recommends adoption of Resolution No. ow-ro, amending Resolution No. 1797, a Policy for Banners from the Marquee over SR 166, Section 7.1 to reflect all applications to hang a banner shall be submitted to the Administrative Offices of South Kitsap Fire and Rescue. Motion for consideration: I move to adopt Resolution No. oo1-1o, amending Resolution No. 1797, amending Section 7.1 to reflect all applications to hang a banner shall be submitted to the Administrative Offices of South Kitsap Fire and Rescue. Fiscal Impact: None. Alternatives: Not approve the changes and list incorrect address for dropping off of banners. Attachments: Resolution No. oo1-10 Resolution No. 1797 Introduced by: City Clerk Requested by: City Clerk Drafted by: City Clerk Introduced: January 12, 2010 Adopted: RESOLUTION NO. ooi-io A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING RESOLUTION NO. 1797, A POLICY FOR THE DISPLAY OF BANNERS FROM THE MARQUEE OVER SR 166 WHEREAS, the City of Port Orchard has allowed banners to be installed over State Road 166; and WHEREAS, historically the South Kitsap Fire and Rescue has installed and removed these banners; and WHEREAS, it is the desire of the City of Port Orchard to amend the location for applications to be delivered to, now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVE THAT RESOLUTION NO. 1797 IS HEREBY AMENDED TO READ AS FOLLOWS: Section 1. Section 7.1 of Resolution No. 1797 is hereby amended as follows: 7.1 All applications to hang a banner shall be submitted to the Administrative Offices of the South Kitsap Fire and Rescue. The Fire Authority will forward a copy of all applications to the City Clerk's office at City Hall for evaluation and monitoring of compliance with the resolution. Section 2. All other Sections of Resolution No. 1797 shall remain in full force and effect. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 12th day of January 2olo. LARY COPPOLA, MAYOR ATTEST: Patricia J. Kirkpatrick, CMC, City Clerk Resolution No. 1797 Page Two of Two SECTION 5. Banners shall be delivered to Fire Station 31, 200 Tremont Street at a minimum of three (3) days prior to installation. The banner shall not be installed until the Fire Authority approves its construction. SECTION 6. AUTHORITY TO ESTABLISH REGULATIONS: (1) The Fire Authority is authorized to establish regulations relative to banner design/ specification to assure public safety is maintained. (2) The City Council shall retain authority to establish regulations governing eligibility of banner placement. SECTION 7. MINIMUM PROCEDURES (1) All applications to hang a banner shall be submitted to Fire Authority at Station 31 located at 200 Tremont Street. The Fire Authority will forward a copy of all applications to the City Clerk's Office at City Hall for evaluation and monitoring of compliance with this resolution. (2) Applications will be reviewed on the following criteria (a) Eligibility of group and/or event. (b) Availability of requested time period for banner to be displayed. SECTION 8. The Fire Chief of the Fire Authority is responsible for the implementation of this policy. Appeals may be made to the City Council. SECTION 9. Resolution No. 1571 is hereby repealed. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 23rd day of March, 1998. LESLIEJ. WEATHERILL, MAYOR ATTEST: Patricia Parks, City Clerk RESOLUTION NO. 1797 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, REPEALING RESOLUTION NO. 1571 AND RE- ESTABLISHING A POLICY FOR THE DISPLAY OF BANNERS FROM THE MARQUEE OVER SR166 WHEREAS, the City of Port Orchard has allowed banners to be installed over State Road 166, and WHEREAS, historically the Volunteer Fire Department of the City of Port Orchard has installed and removed these banners, and WHEREAS, the City of Port Orchard and Kitsap County Fire District No. 7 have entered into an Agreement for the District to provide fire protection to the City commencing January 3, 1998, and WHEREAS, it is the desire of the City of Port Orchard to revise established procedures for requesting a banner be hung across Bay Street, now therefore THE CITY COUNCIL OF THE CITY OF PORT ORCHARD DOES HEREBY RESOLVE THAT RESOLUTION NO. 1571 IS HEREBY AMENDED TO READ AS FOLLOWS: SECTION 1. Policies and procedures are hereby adopted to regulate the placement of banners from the marquee over State Road 166. (1) The purpose of the banner is to provide a means to advertise a community event to the public at a minimum cost. (2) Priority for the banners will be for those events held within the city limits. SECTION 2. Applications for the placement of banners will be made to the Fire Authority. The Fire Authority is authorized, at their discretion, to set a fee or request a donation to compensate for installation and removal of the banner. SECTION 3. Banner placement is limited to nonprofit organizations such as service clubs, charitable organizations and community events. The names of the commercial sponsors may be placed on the banner, but that advertising must be smaller and less noticeable than the name of the event. A nonprofit organization shall be limited to installation of two (2) banners in a calendar year. Each banner must promote a distinctly different community event. SECTION 4. Nonprofit organizations would be defined as those complying with either the Internal Revenue Service or the State of Washington definition of nonprofit. Community events sponsored by a church would be eligible. Resolution No. 1797 Page Two of Two SECTION 5. Banners shall be delivered to Fire Station 31, 200 Tremont Street at a minimum of three (3) days prior to installation. The banner shall not be installed until the Fire Authority approves its construction. SECTION 6. AUTHORITY TO ESTABLISH REGULATIONS: (1) The Fire Authority is authorized to establish regulations relative to banner design/ specification to assure public safety is maintained. (2) The City Council shall retain authority to establish regulations governing eligibility of banner placement. SECTION 7. MINIMUM PROCEDURES (1) All applications to hang a banner shall be submitted to Fire Authority at Station 31 located at 200 Tremont Street. The Fire Authority will forward a copy of all applications to the City Clerk's Office at City Hall for evaluation and monitoring of compliance with this resolution. (2) Applications will be reviewed on the following criteria (a) Eligibility of group and/or event. (b) Availability of requested time period for banner to be displayed. SECTION 8. The Fire Chief of the Fire Authority is responsible for the implementation of this policy. Appeals may be made to the City Council. SECTION 9. Resolution No. 1571 is hereby repealed. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 23rd day of March, 1998. LESLIE J. WEATHERILL, MAYOR ATTEST: Patricia Parks, City Clerk City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No. Consent Agenda 4F Subject Adoption of Resolution No. 002-10, Authorizing the Mayor to Execute an Agreement with AllianceOne for Port Orchard Municipal Court's Collection Services Meeting Date: January 12, 2010 Prepared by: Deborah M Hunt Court Administrator Atty Routing No. 156-o9 Atty Review Date January 4, 2010 Summary: The Municipal Court has a Collection Services Agreement with AllianceOne to collect unpaid municipal court obligations. AllianceOne has submitted an updated agreement to standardize the language and format of all of its court agreements in Washington State and is requesting that the attached agreement replace Port Orchard's existing agreement. All services and rates remain unchanged. Municipal Court is requesting the City Council authorize the Mayor to execute Contract No. C013-10, with AllianceOne for Collection Services for the Port Orchard Municipal Court. The City Attorney has reviewed the contract and has approved as to form. Recommendation: Authorize the Mayor to execute Contract No. C013-10, with AllianceOne for collection services for the Port Orchard Municipal Court. Motion for consideration: I move to adopt Resolution No. 002-io, authorizing the Mayor to execute Contract No. C013-10, with AllianceOne for collection services for the Port Orchard Municipal Court. Fiscal Impact: No fiscal impact. Alternatives: Current Agreement remains active. Attachments: Resolution No. 002-10 Contract No. C013-10; AllianceOne Introduced by: Court Administrator Requested by: Court Administrator Drafted by: Court Administrator Introduced: January 12,2010 Adopted: RESOLUTION NO. oo2-io A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH ALLIANCEONE FOR PORT ORCHARD MUNICIPAL COURT'S COLLECTION SERVICES. WHEREAS, The Port Orchard Municipal Court has the authority to use the services of a collection agency for the purpose of collecting unpaid penalties, fines, costs, assessments, forfeitures, fees, and any other monetary obligation owed to the Municipal Court, pursuant to RCW 3.62.04o and RCW 3.50.100(1), now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council hereby approves the AllianceOne Collection Services Agreement No. C013-io, attached hereto as Exhibit A and by this reference incorporated herein. THAT: The Mayor is authorized to execute, on behalf of the City, the AllianceOne Collection Services Agreement No. C013-10, for Port Orchard Municipal Court collection services. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 12th day of January 2010. Lary Coppola, Mayor ATTEST: Patricia J. Kirkpatrick, CMC, City Clerk COLLECTION SERVICES AGREEMENT COPO Contract No. C013-10 THIS AGREEMENT (the "Agreement") effective the day of 20 ("Effective Date"), is entered into between The City of Port Orchard on behalf of Port Orchard Municipal Court ("COURT") and AllianceOne Receivables Management, Inc. ("ARMI"). For and in consideration of the compensation herein described and the covenants and conditions herein contained, the parties agree as follows: Term and Termination. This Agreement is continuing and will remain in effect until terminated by either party. Any assignments by COURT and work performed by ARMI prior to the signing of this Agreement is specifically approved by the parties and ratified by this Agreement. This Agreement may be terminated in whole or in part from time to time when deemed by COURT or ARMI to be in its best interest. Termination of work hereunder shall be effected by delivering to a party a Notice of Termination thirty (30) days prior to the specified termination date, detailing the extent to which performance of work under this Agreement is terminated. 2. Assignment of Accounts. COURT will assign to ARMI for collection such delinquent accounts, hereinafter called "accounts," as COURT deems appropriate. 3. Collection Efforts. ARMI will use commercially reasonable efforts to collect said accounts, and will confine its efforts to the highest standard of ethical practice. COURT and ARMI recognize that the appropriate level of activity may vary according to the type of account, the account balance and the information available. 4. Debts Just and Owing. COURT certifies that every account referred will contain accurate information and will be just and owing, and will not be subject to any valid defense, set-off or counterclaim, including that such account or the obligor of such account will not, to the COURT's actual knowledge, be subject to any bankruptcy proceeding, stay or discharge as of the time of referral. COURT shall promptly inform ARMI, in writing, of any notice it receives concerning any bankruptcy filing by any debtor. 5. Compliance with Law. ARMI's collection activities shall comply with federal, state and local laws, including the Fair Debt Collection Practices Act (FDCPA), where applicable. 6. Legal Action. No legal action will be commenced on any account without written permission, first obtained, from COURT. Legal action commenced under this agreement shall be in the name of ARMI and not COURT. ARMI will promptly advise COURT if any legal action is contested. COURT will provide evidence as requested by ARMI to support approved legal action, including providing a witness or witnesses for live testimony if requested. Unless otherwise agreed, legal costs and fees will be paid by ARMI and not COURT, and will be recoverable from the DEBTOR where allowed by applicable law, out of first monies recovered. 7. Insurance. ARMI shall obtain and keep in force continually during the term of the contract comprehensive general liability insurance coverage in the amount of at least One Million Dollars ($1,000,000.00). 8. Claims against Client. Neither ARMI nor ARMI's attorneys shall be responsible for providing COURT with legal representation to defend COURT against any claims, counterclaims or third -party claims asserted against COURT, whether asserted in response to a collection lawsuit initiated by ARMI or otherwise. COLLECTION SERVICES AGREEMENT Page 2 9. Cancellation of Accounts. To the extent practicable and unless otherwise agreed, COURT will consult with ARMI prior to recalling any assigned account. For any account on which COURT has approved legal action by ARMI, COURT shall not cancel such account without first consulting with ARMI. 10. Hold Harmless and Indemnification. ARMI will indemnify and hold harmless COURT, and its elected officials, present and former employees, predecessors, successors, assigns, affiliates, clients, subcontractors, insurers, principals, agents, owners, attorneys and employees from any claim, loss, cost, damage, expense, attorneys' fees, and liability of whatsoever nature or kind (collectively the "Claims"), arising out of or as a result of the negligent acts or omissions of ARMI, its employees or agents. COURT will indemnify and hold harmless ARMI, its parent, subsidiary, sister and affiliated companies and divisions, and their officers, directors, shareholders, members, limited and general partners, present and former employees, predecessors, successors, assigns, affiliates, clients, subcontractors, insurers, principals, agents, owners, attorneys and employees from any Claims arising out of or as a result of the negligent acts or omissions of COURT, its employees or agents; and specifically agrees to indemnify and hold ARMI harmless from and against all Claims resulting from errors in account information furnished to ARMI by COURT when such error is the result of negligence. The indemnities provided for herein shall survive the termination of this Agreement. it. Compensation and Method of Payment. For services provided pursuant to this Agreement ARMI shall be entitled to compensation as follows: A. Pre -Collection Demand Letter: No Charge B. Court Costs for Collection Fees: COURT will assess a court cost for ARMI's collection fee pursuant to RCW 3.02.045. COURT directs ARMI to perform the ministerial act of adding this cost to the account balance on its computer system at the time the account in entered into its computer, in the following amounts: A 19% add -on fee (0.1597 retained) for new accounts assigned to ARMI on and after the effective date of this contract. Previously -assigned accounts will remain at their existing rates. C. Partial Payments: Partial payments made on assigned accounts shall be remitted to COURT based upon the same pro rata formula applied to accounts that are paid in full. By way of illustration, and assuming a 19% add -on fee: $100 fine x 19% = $119 new balance to be collected; a $50 payment received would be remitted as follows: $42.02 to COURT; $7.98 to ARMI ($7.98 = .1597 of $50). D. Interest on Accounts: Upon assignment to collection, interest shall accrue on all account amounts, including court costs for collection fees, at the rate of twelve percent per annum. The interest shall be added to the account by ARMI, collected by ARMI, and remitted in full by ARMI to COURT on COURT's portion of the account (interest on the collection fee portion will be retained by ARMI). E. Signal Credit Management Services Program (Signal): If COURT desires to offer a time - payment program to defendants with non -delinquent obligations, ARMI will administer a monthly -payment collection service (the Signal Credit Management Services Program) for COURT. COURT will assess as court costs for this service and ARMI will add such costs (also called "Service Fees") to the accounts as follows: 1. $15.00 Account Set -Up Fee: a one-time charge per obligor per COURT of limited jurisdiction (fee charged only once while defendant remains in an active Signal program, even should new cases from the same COURT be added to the active program; setting up a new Signal program after a program has been completed or discontinued requires another Set-up fee). 2. $4.75 Monthly Fee: one charge per defendant with one current case. 09-02-09 WA COURT COLLECTION SERVICES AGREEMENT Page 3 3. $8.25 Monthly Fee: one charge per defendant with two or more current cases. 4. $7.75 Monthly Fee: one charge per defendant in "past due status" with one case. 5. $11.25 Monthly Fee: one charge per defendant in "past due status" with two or more cases. ARMI will collected and retain all Signal Service Fees. Where a Signal account is assigned to full collection, Service Fees shall not be added to the principal amount of the debt for purposes of calculating ARMI'S Collection Fee authorized in sub- paragraph B above, but can otherwise be collected. F. Remittance Method: ARMI shall deduct its compensation from recoveries prior to remitting COURT's portion to COURT. G. Change in Law: Should there be changes in laws or COURT policies which prescribe/allow a different method for recovering Collection Fees, ARMI shall modify its methods accordingly, upon instruction from COURT. H. Electronic payments. COURT authorizes ARMI to charge a party making an electronic payment a reasonable convenience fee for processing the electronic payment unless prohibited by state law. 12. Payments to Court from Other Source. A payment made on behalf of a debtor directly to COURT on an assigned account will be promptly reported to ARMI by COURT. 13. Negotiable Instruments. COURT authorizes ARMI to endorse checks or other instruments payable to COURT and deposit same into a trust account separately maintained by ARMI. COURT further authorizes ARMI to send notices of dishonor or other notices on COURT's behalf for dishonored instruments, to assess and collect any permissible dishonored instrument fees, and to retain any recovered fees, whether such instruments were issued before or after assignment of the account. 14. Bankruptcy. Where an account becomes subject to bankruptcy proceedings, ARMI will, at its option, either (a) cancel the account back to COURT, or (b) file a claim on behalf of COURT. If COURT desires that ARMI file a claim, ARMI will retain the "fee -added" amount of the account whether or not that fee is allowed by the bankruptcy COURT as an allowable claim (i.e., if the principal obligation is allowed, but the collection fee is not, ARMI will deduct its fee from the allowed principal claim on a pro-rata basis). 15. Assignments. Neither party to this Agreement shall assign this Agreement, nor any interest, right or responsibility arising herein, without the written consent of the other party; provided that ARMI can forward individual accounts to out-of-state collection agencies if deemed prudent by ARMI to effect collection. If ARMI forwards an account to an out-of- state agency, said agency must agree to comply with the terms of this agreement, and ARMI will indemnify and defend the City should a claim arise as the result of the conduct of said agency. 15. Waiver. Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. 17. Severability. In the event any term or condition of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other terms, conditions, or applications of this Agreement which can be given effect without the invalid term, condition, or application. To this end the terms and conditions of this Agreement are declared severable. 09-02-09 WA COURT COLLECTION SERVICES AGREEMENT Page 4 18. Notices. All notices, requests, demands, consents and other communications hereunder (excepting those day-to-day communications necessary or desirable in the ordinary course of performing or facilitating the performance of the services contemplated by this Agreement) shall be in writing and shall be deemed to have been duly given when either (a) personally delivered; or (b) when deposited via certified mail, return receipt requests, postage prepaid to the intended recipient set forth below: If to ARMI: Harry Neerenberg, CFO AllianceOne Receivables Management Inc. 4850 E. Street Road, Suite 300 Trevose, PA 19053 With a copy to: Renee Linnabary, SVP AllianceOne Receivables Management Inc. 6565 Kimball Drive, Suite 200 Gig Harbor, WA 98335 If to COURT: Deborah M. Hunt, Court Administrator Port Orchard Municipal Court 216 Prospect Street Port Orchard, WA 98366 19. Taxes. COURT agrees to pay all sales, use or similar taxes as may be applicable to the services rendered by ARMI. 20. Account Audits. COURT may audit ARMI's records pertaining to accounts assigned for collection upon reasonable notice. 21. Non-discrimination. ARMI, in its collection efforts, will not discriminate against any DEBTOR on the basis of race, color, creed, religion, sex, national origin or other protected status. ARMI will comply with the requirements of the Americans with Disabilities Act of 1992, and all regulations interpreting or enforcing said Act. 22. Beneficiaries to Contract. This Agreement is entered into for the benefit of COURT and ARMI. No third -party beneficiaries are intended to be created or are created hereunder, and no other party can derive any benefit herefrom. 23. Enforcement of Underlying Rights of Court. Not withstanding anything in this Agreement to the contrary, ARMI is specifically granted the right in any dispute, claim, controversy or action asserted against ARMI by an account debtor or third party, to enforce any right COURT might have to compel arbitration, or to prohibit a jury trial or class action. ARMI is authorized to exercise any right COURT might have to call or contact any wireless telephone or other wireless device manually or by automated means; or to call or contact any person using a pre-recorded or artificial voice. To the extent provided in this section, ARMI shall be considered an "agent" of COURT. 24. Entire Agreement. This Agreement constitutes the entire understanding between ARMI and COURT regarding collection services provided to COURT by ARMI, and may not be modified except by written agreement signed by both parties. This agreement supersedes any prior Agreement, unless incorporated herein by reference. 25. Choice of Law and Venue. This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. 09-02-09 WA COURT COLLECTION SERVICES AGREEMENT Page 5 26. License. ARMI will supply to CLIENT a copy of its collection agency license within 30 days of the execution of the Agreement. IN WITNESS WHEREOF, the parties have executed this contract on the date last written below. AllianceOne Receivables Management, Inc. TITL ADDRESS: 6565 Kimball Drive, Suite 200 P. O. Box 2449 Gig Harbor, WA 98335-4449 09-02-09 WA COURT City of Port Orchard IN TITLE: ADDRESS: 216 Prospect Street Port Orchard, WA 98366 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No. Business Item 7A Meeting Date: Subject: Appointment of Mayor Pro-Tempore Prepared by: For 2010 Atty Routing No: Atty Review Date: January 12, 2010 Patti Kirkpatrick, CMC Citv Clerk NA Summary: According to RCW 35.23.191 the City Council at their first meeting of each calendar year shall appoint a Mayor Pro-Tempore from the current Councilmembers. RCW R5.2.'JAo1 reads: City council -- Mayor pro tempore. The members of the city council, at their first meeting each calendar year and thereafter whenever a vacancy occurs in the office of mayor pro-tempore, shall electfrom among their number a mayor pro-tempore, who shall hold office at the pleasure of the council and in case of the absence of the mayor, perform the duties of mayor except that he or she shall not have the power to appoint or remove any officer or to veto any ordinance. If a vacancy occurs in the office of mayor, the city council at their next regular meeting shall elect from among their number a mayor, who shall serve until a mayor is elected and certified at the next municipal election. The mayor and the mayor pro-tempore shall have the power to administer oaths and affirmations, take affidavits and certify them. The mayor or the mayor pro- tempore when acting as mayor shall sign all conveyances made by the city and all instruments which require the seal of the city. Recommendation: Elect a Mayor Pro-Tempore for 2010. Motion for consideration: I move to elect 2010. as the Mayor Pro-Tempore for City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 0 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No. Business Item 7B Subject: Adoption of Resolution No. oo3-10 Authorizing the Mayor to Execute an Interlocal Agreement with the Association of Washington Cities Risk Management Service Agency Meeting Date: January 12, 2010 Prepared by: Patti Kirkpatrick, CMC City Clerk Atty Routing No: 198-o9 Atty Review Date: January 4, 2010 Summary: The Association of Washington Cities/Risk Management Service Agency has proposed an update to the 1989 Interlocal Agreement, which established the Risk Management Service Agency. The Association of Washington Cities offers coverage to its members providing cost stability and long-term savings for property and liability coverage. The proposed language allows AWC RMSA to deal with the day-to-day operations of the risk management service agency portion. The City Attorney has reviewed the contract. Recommendation: Staff recommends adoption of Resolution No. 003-1o, authorizing the Mayor to execute Interlocal Agreement No. C014-10, with the Association of Washington Cities Risk Management Service Agency commencing January 1, 2010. Motion for consideration: I move to adopt Resolution No. 003-10, authorizing the Mayor to execute an Interlocal Agreement No. C014-10, with the Association of Washington Cities Risk Management Service Agency commencing January 1, 2010. Fiscal Impact: None. Alternatives: Not approve the contract and provide direction to staff. Attachments: Resolution No. 003-10 Interlocal Agreement No. C014-10 Introduced by: City Clerk Requested by: City Clerk Drafted by: City Clerk Introduced: January 12, 2010 Adopted: RESOLUTION NO. 003-10 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING AN INTERLOCAL AGREEMENT WITH THE ASSOCIATION OF WASHINGTON CITIES (AWC) RISK MANAGEMENT SERVICE AGENCY (RMSA) WHEREAS, the Risk Management Service Agency (RMSA) is a municipal self- insurance pool formed January 1, 1989, under RCW 48.62, to provide property and liability insurance coverage to participating members of the AWC; and WHEREAS, the City of Port Orchard has been a member of the RMSA self- insurance pool since 1989; and WHEREAS, the Association of Washington Cities (AWC) RMSA has proposed an update to the 1989 Interlocal Agreement, which established the Risk Management Service Agency, and the new proposed Interlocal Agreement adds language to deal with the day-to-day workings of the RMSA; and WHEREAS, the AWC RMSA offers coverage for its members to provide cost stability and the potential for long-term savings for property and liability coverage; and WHEREAS, the RMSA is sponsored by the Association of Washington Cities as a service to Washington cities and towns; and WHEREAS, the City of Port Orchard has determined that the Interlocal Agreement would be beneficial in managing the municipal risks involved in providing services to its citizens, now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: the City of Port Orchard hereby agrees to enter into and abide by the Interlocal Agreement No. 0003-10, (attached hereto as Exhibit A and incorporated herein by reference) which constitutes a contract between the City of Port Orchard and the AWC RMSA commencing January 1, 2010, and the Mayor is hereby authorized to execute such documents as are necessary pursuant to this resolution. Resolution No. 003-10 Page 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 12th day of January 2010. Lary Coppola, Mayor ATTEST: Patricia J. Kirkpatrick, CMC, City Clerk INTERLOCAL AGREEMENT OF THE ASSOCIATION OF WASHINGTON CITIES RISK MANAGEMENT SERVICE AGENCY Contract No. 003-10 Revised 2009 TABLE OF CONTENTS .......................................................................................................... Page PREAMBLE................................................................................................................1 RECITALS................................................................................................................1 ARTICLE1 Definitions................................................................................................ 3 ARTICLE2 Purposes................................................................................................. 4 ARTICLE3 Agency Offices........................................................................................ 5 ARTICLE 4 Parties to Agreement............................................................................... 5 ARTICLE 5 Term of Agreement.................................................................................. 5 ARTICLE 6 Financial Obligations of Agency............................................................... 5 ARTICLE 7 Powers of the Agency............................................................................. 5 ARTICLE 8 The Board of Directors & their Powers & Responsibilities ........................ 6 ARTICLE 9 Operating Committee............................................................................... 7 ARTICLE10 Coverage.................................................................................................7 ARTICLE 11 Bond Requirements.................................................................................7 ARTICLE 12 Responsibility of the Agency.................................................................... 7 ARTICLE 13 Responsibilities of Members.................................................................... 8 ARTICLE14 New Members......................................................................................... 9 ARTICLE 15 Defense of Agents................................................................................... 9 ARTICLE16 Withdrawal...............................................................................................9 ARTICLE 17 Termination by Agency.......................................................................... 10 ARTICLE 18 Effect of Withdrawal or Termination....................................................... 10 ARTICLE 19 Termination and Distribution.................................................................. 10 ARTICLE 20 Bylaws and Manual................................................................................ 11 ARTICLE21 Notices.................................................................................................. 11 ARTICLE22 Amendment........................................................................................... 11 ARTICLE23 Enforcement.......................................................................................... 11 1 ARTICLE 24 Prohibition Against Assignment............................................................. 11 ARTICLE 25 Severability............................................................................................ 11 ARTICLE 26 Agreement Complete............................................................................. 12 ARTICLE 27 Signature in Counterparts .................................... ............................... 12 ARTICLE 28 Authorization of Signature...................................................................... 12 .a INTERLOCAL AGREEMENT: OF THE ASSOCIATION OF WASHINGTON CITIES RISK MANAGEMENT SERVICE AGENCY PREAMBLE THIS AGREEMENT is made and entered into in the State of Washington by and among the members organized and existing under the Constitution or laws of the State of Washington, hereinafter collectively referred to as "Members", and individually as "Member", which are parties signatory to this Agreement. Said Members are sometimes referred to herein as "Parties". RECITALS WHEREAS, Ch. 48.62 RCW provides that two or more local governmental agencies may, by Interlocal Agreement, provide insurance for any purpose by one or more of certain specified methods; WHEREAS, the Association of Washington Cities, the sponsoring entity, of the Risk Management Service Agency ("Agency"), would like to maintain the long-standing relationship that has been achieved over the years because of the mutual goals of both entities, which is to support all cities and towns in Washington State; WHEREAS, the Association of Washington Cities as sponsor of the Agency desires to provide its Members, as well as other Local Governmental Entities, the opportunity to jointly self -insure or pool their primary risks to enhance their ability to control their insurance programs and coverages; WHEREAS, each of the parties to this Agreement desires to join together with the other parties for the purpose of pooling their self -insured losses and jointly purchasing excess insurance and administrative services in connection with a joint protection program for said parties; and WHEREAS, it appears economically feasible and practical for the parties to this Agreement to do so; NOW, THEREFORE, in consideration of all of the mutual benefits, covenants and agreements contained herein the parties hereto agree as follows: ARTICLE 1 Definitions The following definitions shall apply to the provisions of this Agreement: 1.1 "Administrative Agent," shall mean the Association of Washington Cities that provides third party administration (TPA) services to the Agency. 1.2 "Agency" shall mean the Association of Washington Cities Risk Management Service Agency (RMSA). 1.3 "Assessment' shall mean the moneys paid by the members to the Agency. 1.4 "Association" shall mean the Association of Washington Cities. 1.5 `Board of Directors" or "Board" shall mean the governing body of the Risk Management Service Agency (RMSA) as duly elected by the members of the Agency. 1.6 "Claims" shall mean demands made against the Agency arising out of occurrences which are within the Agency's Joint Protection Program as developed by the Board of Directors. 1.7 "Excess insurance" shall mean that insurance purchased or other financing arrangements made on behalf of the Agency to protect the funds of the Agency against catastrophes or against an unusual frequency of losses during a single year. 1.8 "Fiscal Year" shall mean that period of 12 months, from January 1 to December 31, which is established as the fiscal year of the Agency. 1.9 "Insurance" shall mean and include self-insurance through a funded program and/or commercial insurance contract. 1.10 "Joint Protection Program" shall mean the program established by the Board of Directors and intended to address the general operation of the Agency. 1.11 "Local Governmental Entity" shall mean every unit of local government, both general purpose and special purpose, and shall include, but not be limited to, counties, cities, towns, port districts, public utility districts, water districts, sewer districts, fire protection districts, irrigation districts, metropolitan municipal corporations, conservation districts, and other political subdivisions, governmental subdivisions, municipal corporations, and quasi municipal corporations. 1.12 "Operating Committee" shall mean the standing committee of the Agency. 1.13 "Signatory" or "Signatories" shall mean those parties who sign this Agreement, including execution by Counterpart, thereby becoming a Member of the Agency bound by the terms of this Agreement. ARTICLE 2 Purposes 2.1 This Agreement is entered into by the Members to provide for self-insurance pooling and/or the economical purchase of primary Insurance and/or Excess Insurance coverage for all forms of Insurance available or required by law for Local Governmental Entities and for which state law authorizes the formation of pooling organizations to provide such Insurance, to reduce the amount and frequency of the Members' losses, and to decrease the cost incurred by the Members in the handling and litigation of claims. This purpose shall be accomplished through the exercise of the powers of the Members jointly in the creation of a separate public Agency, the Association of Washington Cities Risk Management Services Agency, to direct and administer a Joint Protection Program wherein the Members will engage in certain activities, including but not limited to the following: 2.1.1 Pool their losses and Claims; 2.1.2 Jointly purchase Excess Insurance; and 2.1.3 Jointly purchase administrative and other services including: 2.1.1.1 Claims adjusting; 2.1.1.2 Data processing; 2.1.1.3 Risk management consulting; 2.1.1.4 Loss prevention; 2.1.1.5 Legal; and 2.1.1.6 Miscellaneous related services. 2.2 It is also the purpose of the Agreement to provide, to the extent permitted by law, for the inclusion at a subsequent date of such additional Local Government Entities organized and existing under the Constitution or laws of the State of Washington as may desire to become parties to this Agreement and members of the Agency, subject to approval by the Board of Directors. 2.3 It is also the purpose of this Agreement to provide, to the extent permitted by law, that the Agency may, at the discretion of its Directors, contract with non-member Local Government Entities in the State of Washington. Article 3 Agency Offices 3.1 Principal Executive Office The principal executive office for the transaction of business of the Agency shall be located at 1076 South Franklin, Olympia, WA 98501. The Administrative Agent in cooperation with the Board of Directors of the Agency shall have the authority to change the location of the principal executive office from time to time. 3.2 Other Offices Other business offices may be at any time be established by the Administrative Agent in cooperation with the Board of Directors of the Agency at any place or places where the Agency is qualified to do business. ARTICLE 4 Parties to Agreement Each party to this Agreement certifies that it intends to and does contract with all other parties who are Signatories of this Agreement and, in addition, with such other parties as may later be added to and Signatories of this Agreement pursuant to Article 14. Each party to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to Articles 16 and17, shall not affect this Agreement nor such party's intent to contract as described above with the other parties to the Agreement then remaining. ARTICLE 5 Term of Agreement This Agreement shall become effective on January 1, 2010, and shall be of unlimited duration, but not less than one year, and will continue unless terminated as hereinafter provided in Article 19. ARTICLE 6 Financial Obligations of Agency Pursuant to Ch. 48.62 RCW, of the State of Washington, the debts, liabilities, and obligations of the Agency shall not constitute debts, liabilities, or obligations of any party to this Agreement. ARTICLE 7 Powers of the Agency 7.1 Agency shall have the powers provided for by law and is hereby authorized to do all acts necessary for the exercise of said powers, including, but not limited to, any or all of the following: 7.1.1 Contract or otherwise provide for risk management and loss control services; 7.1.2 Contract or otherwise provide legal counsel for the defense of Claims and/or other legal services; 7.1.3 Consult with the Washington State Risk Manager and State Auditor; 7.1.4 Jointly purchase Insurance coverage in such form and amount as the organization's participants may by contract agree; 7.1.5 Incur debts, liabilities, or obligations; 7.1.6 Acquire, receive, hold, or dispose of property, funds, services, and other forms of assistance from persons, firms, corporations, and governmental entities; 7.1.7 Sue and be sued in its own name; 7.1.8 Hire employees and agents; and 7.1.9 Exercise all powers necessary and proper to carry out the terms and provisions of this Agreement, or otherwise authorized by law. 7.2 Said powers shall be exercised to the terms hereof and in the manner provided by law. ARTICLE 8 The Board of Directors and their Powers and Responsibilities 8.1 The Agency, its funds and service programs shall be administered by a Board of Directors. 8.2 Number of Directors There shall be seven (7) Directors of the Agency, who shall be elected officials representing members of the Agency. 8.3 Acceptance of Appointment by Directors Each Director shall sign a document accepting their appointment as Director and agreeing to abide by the terms and provisions of this Interlocal Agreement and the Bylaws. 8.4 Powers and Responsibilities of the Board of Directors The Board of Directors of the Agency shall have the following powers and functions: 8A.1 The Board shall have the power to review, amend, modify, adopt, override, or reject the Operating Committee's recommendations. 8.4.2 The Board shall review, modify if necessary, and approve the annual operating budget of the Agency. The Board shall receive and review periodic accountings of all funds of the Agency. 8.4.3 Annually the Board shall review, amend, adopt, or reject the Operating Committee's recommendation of the assessment rate to be charged to the members of the Agency. 8.4.4 The Board shall review, modify if necessary, and approve the Joint Protection Program (JPP), which identifies Agency and Member coverages, the Agency's Bylaws, and manuals. 8.4.5 The Board shall have the power to conduct all business on behalf of the Agency, which the Agency may conduct under the provisions hereof and pursuant to law. 8.4.6 The Board shall determine and select all necessary Insurance, including Excess Insurance, necessary to carry out the Joint Protection Program of the Agency. 8.4.7 The Board shall have authority to contract for or develop various services for the Agency, including, but not limited to, an administrative agent, claims adjusting, loss control, risk management consulting services, independent actuary services, independent claims auditing services, and general counsel. 8.4.8 The Board shall have such other powers and functions as are provided for in this Agreement or those which are necessary to implement the purposes of this Agreement, including, but not limited to, the power to authorize contracts. ARTICLE 9 Operating Committee The Operating Committee shall consist of nine (9) representatives from Member entities participating in the Agency. All members of the Operating Committee shall be appointed officials not elected officials. It is the Board's intent that the committee assists the Board and/or the Administrative Agent, with the operations of the Agency and to keep the Board advised on all aspects of Agency operations including professional standards. ARTICLE 10 Coverage 10.1 The type and limits of the Insurance coverage provided for Members by the Agency shall be established by the Board of Directors. 10.2 The Board may arrange purchase of a group policy for Members interested in obtaining additional types or limits of coverage at additional cost to those participating Members. Such additional cost may include an administrative fee for the Agency's services. 10.3 The Board may arrange for the purchase of any other Insurance or services deemed necessary to protect the Agency or funds held by the Agency against catastrophe. ARTICLE 11 Bond Requirements The Board may require that the Administrative Agent authorized to disburse funds of the Agency, provide a fidelity bond in the amount as set by the Board, and provide that such bond be paid by the Agency. ARTICLE 12 Responsibility of the Agency The Agency shall perform the following functions in discharging its responsibilities under this Agreement: 12.1 Provide Insurance coverage as deemed necessary, including but not limited to a self-insurance fund and commercial insurance, as well as excess coverage and other insurance, such insurance, to be arranged by negotiation or bid, and/or purchase, as necessary; 12.2 Assist each Member's designated risk manager with the implementation of the risk management functions within the Member entity; 12.3 Provide loss prevention, safety, and consulting services to Members as required; 12.4 Provide Claims adjusting and subrogation services for Claims covered by the Agency's Joint Protection Program; 12.5 Provide loss analysis by the use of statistical studies, data processing, and record and file - keeping services, to identify high exposure operations and to evaluate proper levels of self - retention and deductibles; 12.6 Assist Members, as requested, with review of their contracts to determine sufficiency of indemnity and Insurance provisions; 12.7 Conduct risk management audits to review the participation of each Member in the program. The audit shall be performed by appointed Agency staff or, at the discretion of the administrative agency, and/or an independent auditor may be retained by contract to conduct the audits; 12.8 Provide for the defense of any civil action or proceeding brought against any officer, employee, Board member, or other agent of the Agency, in their official or individual capacity or both, on account of an act or omission within the scope of their agency as an agent of the Agency; 12.9 Abide by the rules and regulations as stated or hereinafter amended of RCW 48.62 and WAC 82- 60; and 12.10 The Agency shall have such other responsibilities as deemed necessary by the Board of Directors in order to carry out the purposes of the Agreement. ARTICLE 13 Responsibilities of Members Members shall have the following responsibilities: 13.1 All Agency members must maintain membership in the Association of Washington Cities. 13.2 Each member shall appoint an employee of the member entity to be responsible for the risk management function within that member entity and to serve as a liaison between the Member and the Agency as to risk management. 13.3 Each Member shall maintain an active safety officer and/or committee, and shall consider all recommendations of the Agency concerning the development and implementation of a loss control policy to prevent unsafe practice(s). 13.4 Each Member shall maintain its own set of records, as a loss log, in all categories of loss to insure accuracy of the Agency's loss reporting system. 13.5 Each Member shall promptly pay its assessment and any readjusted amount promptly to the Agency when due. After withdrawal or termination, each Member shall pay promptly to the Agency its share of any additional assessment and accrued interest at a rate determined by the Board, when and if required of it by the Board. 13.6 Each Member shall provide the Agency with such other information or assistance as may be necessary for the Agency to carry out the Joint Protection Program under this Agreement. 13.7 Each Member shall in any and all ways cooperate with and assist the Agency, and any insurer of the Agency, in all matters relating to this Agreement and covered losses, and will comply with all Bylaws, rules, and regulations adopted by the Board of Directors. 13.8 All members shall cooperate with the Agency and assist with investigations, making settlements, and defense or prosecution of suits; cooperate and assist the Agency in enforcing any right of contribution, indemnity or subrogation in which the Agency may have an interest by virtue of a payment made pursuant to the Bylaws, interlocal agreement or the Joint Protection Program (JPP); attend hearings and trials and assist in the securing and giving evidence and obtaining the attendance of witnesses; use due diligence and do and concur in doing all things reasonably practicable to avoid or diminish any loss of or damage to the property herein insured. ARTICLE 14 New Members 14.1 Additional Members shall be permitted to become Signatories to this Agreement, and to the Joint Protection Program. All potential members to the Agency must be members of the Association of Washington Cities or become members prior to acceptance into the Agency. The Directors shall allow entry into the program of new members approved by the Board of Directors at such time during the year as the Board deems appropriate. 14.2 Members entering under this Article may be required to pay their share of expenses as determined by the Board, including those necessary to analyze their loss data and determine their assessment. ARTICLE 15 Defense of Agents For purposes of this article, "agent" means any person who is or was: a Director, an Operating Committee member, an officer, or an agent acting on behalf of the Agency or Administrative Agent. 15.1 The Agency shall provide for the defense of any agents and paying of any valid judgments and claims brought against any such agent arising from their actions or conduct in their official or individual capacity or both, on account of an act or omission within the scope of their responsibility; provided, however, this section shall not apply to those occurrences covered by an Agency policy of liability insurance or if the claim or judgment results from the intentional misconduct of said agent. ARTICLE 16 Withdrawal 16.1 A Member signing this Agreement may not withdraw as a party to this Agreement and as a Member of the Agency for a one-year period commencing on the date said Member signs the Agreement. 16.1.1 After the initial one-year non -cancellable commitment provided pursuant to this Agreement, a Member may withdraw only at the end of any Fiscal Year, provided it has given the Agency a 12-month written notice of its intent to withdraw from this Agency. 16.2 A Member shall be entitled to withdraw from the Agency where it presents to the Board of Directors evidence demonstrating a material breach of contract by the Agency as regards its obligations to the Member. The Member shall be allowed to withdraw from the agency within ninety (90) days of any finding by the Board of Directors that a material breach of contract by the Agency has occurred. The withdrawal of any Member under the conditions identified here shall not however free it from any and all requirements made of any withdrawing Member. ARTICLE 17 Termination by Agency 17.1 The Agency shall have the right to terminate any Member's participation in the Joint Protection Program upon a motion approved by three-quarters (75%) vote of the entire Board of Directors. The Board of Directors may, prior to taking action on such a motion, request that the Operating Committee review and make recommendations to the Board on any allegation giving rise to the request to terminate, including failure to: comply with a written condition, disregard of safety or risk management standards, noncompliance with any provision of this Interlocal and/or the Bylaws of the Agency. 17.2 Any Member so cancelled shall be given one hundred eighty (180) days notice prior to the effective date of the cancellation. Any Member so cancelled shall have a period of up to six (6) months coverage under the terms of this or may affect alternate insurance or self-insurance arrangements if it so desires. Any Member so cancelled shall be treated as if it had voluntarily withdrawn. ARTICLE 18 Effect of Withdrawal or Termination 18.1 The withdrawal of any Member from this Agreement shall not terminate the same. 18.2 No Member by withdrawing shall be entitled to payment or return of any assessment, consideration of property paid, or donated by the Member to the Agency, or to any distribution of assets. 18.3 The withdrawal of any Member shall not terminate its responsibility to contribute its share or assessment or funds to any fund or Insurance program created by the Agency until all Claims, or other unpaid liabilities, covering the period the Member was Signatory hereto have been finally resolved and a determination of the final amount of payments due by the Member or credits to the Member for the period of its membership has been made by the Board of Directors. In connection with this determination, the Board may exercise similar powers to those provided for in Article 17, Termination by Agency, of this Agreement. 18.4 Any withdrawing or terminated Member shall not be permitted to rejoin the Agency for a period of three (3) years. ARTICLE 19 Termination and Distribution 19.1 This Agreement may be terminated at any time by the written consent of three -fourths (75%) of the Members, provided, however, that this Agreement and Agency shall continue to exist for the purpose of paying all debts and liabilities, disposing of all Claims, distributing net assets, and otherwise winding up and liquidating the affairs of the Agency. The Board of Directors is vested with all powers of the Agency during such winding up and liquidation, including the power to require Members, including those which are Members at the time the claim arose or at the time the loss was incurred, to pay their share of any additional amount of assessment deemed necessary by the Board for final disposition of all Claims, losses, and liabilities covered by this Agreement. Such additional assessment shall be determined and thereafter adjusted, if necessary. 10 19.2 Upon termination of this Agreement, all assets of the Agreement shall be distributed only among the parties that are Members of the Joint Protection Program, in accordance with and proportionate to their cash payments and property contributions made during the term of this Agreement. The Board shall determine such distribution within six (6) months after the last pending claim or loss covered by this Agreement has been finally disposed of. 19.3 The Board is vested with all powers of the Agency for the purpose of winding up and dissolving the business affairs of the Agency. These powers shall include the power to require Members, including those which were Members at the time the claim arose or at the time the loss was incurred, to pay their share of any additional amount of assessment deemed necessary by the Board for final disposition of all Claims and losses covered by this Agreement. A Member's share of such additional assessment shall be determined on the same basis as that provided for annual assessments, and shall be treated as if it were the next year's annual assessment for that Member. ARTICLE 20 Bylaws and Manual The Board has developed Agency Bylaws and a policy and procedure manual that governs the day-to-day operations of the Agency. Each Member shall receive a copy of any Bylaws, policy statement, or manual developed under this Article. ARTICLE 21 Notices Notices to Members hereunder shall be sufficient if mailed to the last address, or electronic mail, provided to the Agency by the respective Member postal mail will be deemed received three (3) days after mailing. ARTICLE 22 Amendment This Agreement may be amended at any time by the written approval of three-quarters (75%) of all Members of the Agency. ARTICLE 23 Enforcement The Agency is hereby granted the authority to enforce this Agreement. In the event action is instituted to enforce any term of this Agreement or any term of the Bylaws against any City Member which signed this Agreement, the substantially prevailing party in such dispute shall be entitled to its costs and reasonable attorney's fees. ARTICLE 24 Prohibition Against Assignment No Member may assign any right, claim, or interest it may have under this Agreement, except to a successor entity following reorganization. No creditor, assignee, or third -party beneficiary of any Member shall have any right, claim, or title to any part, share, interest, fund, assessment, or asset of the Agency. Should any participating Member reorganize in accordance with the statutes of the State of Washington, the successor in interest, or successors in interest, may be substituted as a Member upon approval by the Board. ARTICLE 25 Severability In the event that any article, provision, clause, or other part of this Agreement should be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not 11 affect the validity or enforceability with respect to other articles, clauses applications, or occurrences, and this Agreement is expressly declared to be severable. ARTICLE 26 Agreement Complete The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing herein. ARTICLE 27 Signature in Counterparts This Agreement may be executed in any number of Counterparts and each of such Counterparts shall for all purposes constitute one Agreement, binding on all Members, notwithstanding that all Members are not Signatories to the same Counterpart. All references herein to this Agreement are deemed to refer to all such Counterparts. ARTICLE 28 Authorization of Signature Each Member signing this Agreement has passed the required Ordinance or Resolution authorizing and approving this Agreement, a certified copy of which Ordinance or Resolution is attached hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by authorized officials thereof. Association of Washington Cities (AWC) Risk Management Service Agency (RMSA) B �r Y (Member Name) am , Mayor (Printed name) Date /,2 i0o 7 Date 12