1997-032 Terminating FIRMA Interlocal Agreement
RESOLUTION NO. 32-97
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTfi PALM BEACH, FLORIDA, WITHDRAWING FROM AND
TERMINATING THE INTERLOCAL AGREEMENT, FIRMA-
EMPLOYEE BENEFITS DIVISION, DATED JULY 13, 1989,
BETWEEN THE VILLAGE OF NORTH PALM BEACH, CITY OF
GREENACRES, TOWN OF JUPITER AND TOWN OF LAKE PARK,
WHICII AGREEMENT IS ATTACHED AS EXHIBIT "A"; AND,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,.the Village of North Palm Beach, City of Greenacres,
Town of Jupiter and Town of Lake Park entered into an Interlocal
Agreement for the purpose of providing for health care benefits,
life insurance benefits and related benefits for their respective
employees and retirees; and
WHEREAS, all of the member municipalities other than the
Village of North Palm Beach have withdrawn from the Agreement, and
there are no consulting or service agencies providing services
under the Agreement to the Village.
B1? IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH,
FLORIDA:
Section 1. The Village Council of the Village of North
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Palm Beach does hereby withdraw from and terminate the Interlocal
Agreement FIRMA-Employee Benefits Division, dated July 13, 1989,
between the Village of North Palm Beach, City of Greenacres, Town
of Jupiter and Town of Lake Park, which Agreement is attached as
Exhibit "A".
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Section 2
upon its adoption.
This Resolution shall take effect immediately
PASSED AND ADOPTED THIS 22nd DAY OF MAY, 1997.
(Village Seal) ~~,~ _ ~~ ~,\L
MA OR
ATTEST:
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AMENDED IN1'E RLO CAL AOREEFIE NT
. FIRMA - Property Casualty Division
TI1I5 AGREEMENT entered into this ~~ day of
,1y89, hereby auperoedea the former Interlocal
Agreeme t by and between several munlolpalltlea creating the
Florida Intergovernmental Riak Management Aasooiation originally
!n 1940, as amended from ,time. Seven (7) municipal corporations,
all organized and oonatltuted in aooordanoe wl th the laws of the
State of Florida, speolfloelly, CITY OF CREENA ORES CITY, 1'0 WN OF
JUPI'fGR, 1'0 WN OF LAKE CLARKE SHORES, TUWN OF LAKE PARK, .CITY OP
LAKE WORTH, 'TOWN OF LAN1'ANA and VILLAGE OF NORTfI PALM BEACH,
oollectively known as the Florida Intergovernmental Rtsk
Managarnent Asaoelation and hereinafter referred to as "FIRMA"
all enter into this Agreement on the date first written above,
W ITN BSS B T H
WHEREAS, the following seven (7) munio3pel oorporations,
. CITY OF ~UREENACRES CI'f Y, 'TOWN OF JUPITER, TUWN UP LAKE CI,A RKC
SHORES, TOWN OF LAKE PARK, CITY OF LAKE WORTH, TOWN OF LA N'CANA,
and VIL LA OE OF NORTH PALM BEACH desire to make the most efflclenL
use of their reaouroea In order to provide a comprehensive Rlsk
1-0ahagement Plan relative to Property/Casualty hoaxes for each and
all of the seven munlelpalitlea inoluding but not llm,ited to,
.Claims Administration, Insurance Consulting and related services;
and
WHEREAS, Chapter 163, Florida Statutes, per•inlts local
governmental unite to oooperate with ~o ther gover mnental units-on
the balls of mutual advantage; and
HHEREAS, eaoh of the seven (7) munlolpall ties named herein
have Aetermined that it la Sn the beat interests of the citizens
of eaoh of the munielpalltiea that they cooperate to provide
colleotlvely for Inaurenae Couaulting, Claims Adminiatratl on, and
• Rlak'Management aervloeaj and
WHEREAS, in order to better provide for the I,reservatlon of
the general well being of the SnhaAltanta of~eaeh of the
Fage 1 of 4
municipalities and for all, collectively, the seven (7)
munloipalities desire to replaoe the formerInterlocal Agreement
whioh oreated FIRMA in order to update its practices and
• prooedures and to better implement a Comprehensive Aisk
Management Plan to benefit eaoh of the seven (7) municipalities.
NOW, THEREFORE, for and in consideration of the mutual
covenants and promises herelnafte r~' oontalned to be kept and
performed by the parties hereto, and for the mutual welfare of
the res ld ants of the CITY OF CAGENACRES CITY, TOWN OF JUP I'fER,
TOWN OF LAKE CLARKE SHORES, TOWN OF LAKE PARK, CITY OF LAKE
WORTH, TOWN 'OF LANTANA, and the VILLAGE OF NOATH PALM BEACH, the
herein named munioipal oorporationa hereinafter sometimes
referred to as "partlolpating muniolpalities or members"
hereby
,
exeoute this Amended Interlooal Agreement to revise certain of
the former polioiae and praotioea of FIRMA relative to the
Property/Casualty Division and hereby agree as follows:
1. PURPOSE. That the purpose of this Agreement is to
effectuate a Comprehensive Risk Management Program relative to
Property/Casualty Losses, for all member munlcipalltles,
inoluding the provision of Insuranoe Consulting 'S cruises, Claims
AdminiatratSon Servloes and any and ell other aervioes required
to manage the various Property/Casualty risks of the member
muniolpalitSea.
2. AMENDMENT. The Intergovernmental Aisk Management
Program was originally oreated by interloeal Agreement in January
of 1980, and ishereby auperoeded by this Amended Interlocal
Agreement - FIRMA Property/Casualty DSvislon which hereby repeals
and supersedes any and all prior Interlocal Agreements and shall
become effeotiva upon the date of exeouti on.
3. DURATION 0['~MEFI6BR$F1IP,. Eaoh of the participating
munioipalitiea hereby agrees to remain in the program for a
minimum of one (1) year after the execution of this agreement.
>a. TERMINATION. Any participating municipality may
withdraw from this Amended Interlooal Agreement - FIRMA
• Property/Casualty Division and-terminate all rights and
reaponsibSlitSea .hereunder on April 1 of any auoceeding year upon
sixty (60) days prior written notioe to each and every other
member and to any and all outside consulting agencies which
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provide services to the participating members, including but not
limited to, Insurance Consulting Agency, Risk Management Agency,
and Claims Administration Aganoy. A list of such consulting
agencies shall be provided to eaoh member Dy~the Chairman at the
annual organization meeting and updated, as necessary. Notice-as
stated herein shall be considered sufficient when a written
statement of intent to terminate is sent by certified mail to the
Manager of eaoh member munioipality and to the President or
equivalent of eaoh consulting or service agency currently
providing services to FIRMA for its Property/Casualty Division as
set forth on the list provided for herein.
S. OBLIGATIONS. Should a partloipating municipality
desire to terminate membership as herelnbefore set forth, such
member munioipality shall not be relieved of its obligation to
make complete payment for the full annual contribution period
ending with March 31 of the fiscal year of termination and no
member terminating participation under this agreement will be
eligible for any return of premium that may be due end/or that
hasalready been paid for that annual period. Each municipality
shall be responsible for payment of deterred premiums and/or
assessments levied to cover losses for such municipality for all
prior fiscal years during whioh the municipality was a
participant regardless of whether the munioipality Sa currently a
member or has withdrawn from FIRMA - Property/Casualty Division.
6. BOARD OF DIRECTORS. FIRMA shall be governed by the
Board of Direotora whioh shell be comprised of one (i)
representative from eaoh partioipating municipality. In
addition, eaoh munioipal manager shall also appoint one (1)
alternate to serve in the place and stead of its representative
should the repreaentatlve be unable to serve, for any reason.
7. QUALIFICATIONS OF BOARD OF DIRECTORS. The
representative of eaoh partioipating munioipality who shall serve
as a member of the Board of Direotora shall be the municipal
manager or his designee, who shall be a senior full time
employee who 1a on the member's adminiatratlve staff. The
munioipal manager shall also appoint an alternate who shall serve
as noted above in paragraph 6.
8. VOTING. Esoh munioipality shall have one
vote through !ta rapreaentative on the Hoard of Directors and all
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matters shall be determined by ma~orlty vote. Four members shall
oonstituta a quorum which shall be neoessary to conduct any
business.
9. BY-LAWS,. The Board of Dlraotora shall establish By-
Laws oonsSatent with the Comprehensive Risk Management Program -
Property/Casualty Diviaionundertaken by the seven (~)
munio'ipalitles. The By-Laws shall set forth the policies and
procedures by whloh the Boe rd of Direotors shall be governed;
which By-Laws shall not oonfliot with municipal ordinances or
charters of any of the member munioipalitiea nor shall the By-
Laws oonflSot with State Statutes. The by-laws shall set forth
in detail the prooedurea to be followed by additional
munioipalities desiring to partioipate in the FIRMA Risk
Management Program and shall delineate apeoitio procedures to be
followed by the Board of Direotors of FIAMA inorder to remove
any partloipating munioipality and shall set forth what causes
shall be deemed suffioient for rOmoval of a participating
municipality.
10. PAOFESSIOjiAL SFyRVICES,. The Doard of Directors shall
have the power to enter into oontra ota in order to provide for
professional servioea for the Comprehensive Riak Management
Program in aooordanoe with Chapter 163, Florida Statutes. The
Board of Direotors shall be responsible for contraoting~ for any
and ell neoessary servioea, including eooountanta, aotuarles,
attorneys, insurance consultants, oleime administrators, etc., to
provide the eeaiatanoe neoessary to carry out the goals of the
Comprehensive Riak Management Program.
11. FISCAL YEAR. The FIRMA Riak Management Program -
Property/Casualty Division shall operate on a fiscal year of
' April 1 through March 31 of each year.
12. ORGANIZATION. Tha Board~of Direotors shall hold an
organizational meeting once per year ea close as possible to the
commencement of the fiscal year, that being April tat of each
year and shall,. at that time, elect a Chairman, Vibe Chairman,
and Secretary. The Board of Direotors shall also adopt a set of
by-laws as noted harelnabove in Paragraph 9 which may be amended
from time to time, as neoessary. All meetings shall be held in
public 1n aooordanoe with the Sunshine Laws of the State of
Florida.
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13. ANNUAL ACCOUNTING. .The Claim; Administrator and/or any
other persona hired by FIRMA shall file an annual accounting with
eaoh partio'ipating municipality within sixty (60) days after
• Maroh 31st of eaoh year setting forth all assets and
liabilities of FIRMA and detailing all inoome and expenses for
the previous fisoel year. Conourrent with Sta accounting, the
Claims Administrator and/or any other persona hired by FIRMA
shall recommend to the -oerd of Direotora whether or not any
surplus funds should be returned to the participating members, on
~a
what dates, and in what amounts. The Cleima Administrator and/or
any other persona hired by FIRMA shall also present a proyection
of contributlona for eaoh municipality for the next CSscal year
such that the muhiolpalitles~may include these pro,jeoted amounts
in their Sndlvidual budget analyses. After the annual accounting
~~ is presented to the Board of Direotora oontribution
, projections
for the succeeding year for eaoh participating member shall be
discussed and the eotua~ oontribution amount finalized.
_ 14. PAYMENT OF CONTRIBUTION AMOUNTS. Each member
_ participating Sn the Property/Casualty Division shall pay seventy
• ~ five (75F) Der cent of its annual oontribution amount ss
determined by the Board of Direotora by April 1, with the balance
due by July 1 of that year.
15. AUDIT,. Tha members of FIRMA shall have the right to an
audit of the Claims Administration Agency accounting and/or an
Audit of the accounting of any of the other professional agencies
hiredto perform services for FIRMA at the discretion of the
Board of Direotora of FIRMA.
16. ENFORCEMENT,. In the event it becomes necessary for
FIRMA to employ counsel to enforce the terms of this agreement or
of the by~-laws, rules, regulations, policies or procedures
ad op tad by FIRMA to implement this Comprehensive Risk Management
Program - Property/Casualty DSvlaioh against another member,
whether or not suit ba brought, the prevailing party shall
rebover reasonable attorneys tees and costa, including fees and
• ~ costa on appeal.
17. NON ASSIGNMENT. This Agraeroent shall not be assigned
or~tranaferred by any party hereto.
18. NON TItANS['E1t~OF POWERS. Nothing contained in this
agreement shall be construed to constitute a transfer of powers
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Sn any way whatsoever. This agreement is solely an Interlocal
Agreement for provision of Comprehensive RSak Management Services
• - Property/Casoalty Division 'to each and every munioipality on a
oooperative-basis. Eaoh and every governmental entity which
' oomprises the assoolation of seven (~.) municipalities known as
- the FIRMA _ Property/Casualty Division shall each retain all
legislative authority with regard to their respective governing
body.
19• SEVERABILITY. Should any provision of this agreement
be declared invalid, by a court of competent ~uriadtetion, same
shall be deemed stricken herefrom and all other terms and
oonditiona of this agreement shall continue in full force and
effect as if auoh Invalid provision had never been a part hereof.
20. NON NAIVE'R. No delay by FIRMA Sn enforcing any
covenant or right hereunder shall be deemed a waiver of such
covenant or right, and no waiver of any particular provision
-. hereof shall be deemed as a waiver of any other provisions or a
continuing waiver of eaoh particular provision, and except as so
• - expressly waived, all provislona hereof shall continue in full
force and effect.
21. PRIVILEGES AND IMMUNITIES. It is the specific intent
and agreement among the p artiea that any immunities and
privileges granted to eaoh governmental entity as a municipal
corporation will inure to the benefit of FIRMA.
22. ENTIRE AGREEMENT. This agreement constitutes the
entire understanding of the parties with respect to provision of
Comprehenalve Riak Management Services and Self Insurance -
~6 Property/Casualty Division of the seven (7) governmental
entities. It may not be modified nor any of its provisions
waived, unless auoh modification and%or waiver is in writing and
is agreed to and signed by all parties herein.
~IN WITNESS WHEREOF, the undersigned seven (7)
~, municipalities by eso h~authorSzed Mayor or Vioe Mayor, have
signed this Amended Interlooal Agreement and have had the
• appropriate municipal seal .affixed hereto Sn ~~eight (8) original
copies auoh that eaoh municipality may retain one (1) original
for Sts records and tl la one (1) original with the Clerk of the
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Circuit Court in acoordanoe with Chapter 163, Florida Statutes.
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DATED THIS ~ DAY OF _~~~~, 1989.
ATTEST:
/c.
i C erk
(Seal)
ATTEST
n C erk "-"'
(Seal)
ATTESTt
~~~,0
n Clerk
(Seal)
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ATTEST
Town er
(Seal)
CITY OF GREENACRES CITY
Ey ~ ...
TOWN OF JUPITER
Sy=~ i
TOWN OF LAKE CLARKE SHORES
aye ~m °~° ~~
TOWN OF LAKE PARK
By ~ C ~ O~ ~r~ tc,..,..,
Page 7 of 8
ATTESTc
y e r c ~~.kQ~1 C97` ° --
(Seal)
ATTESTc
loan ~rTc
(Seal)
ATTEST
V aged erk
(Seal)
CITYOt~Fy//~=-/L~A~K~E WORTH
BY c~~~M1~{~D~K~~~r ~~~cIC>
~U
TOWN OF A
Bye
Ayce
VILLAGE OF NORTH PALM B H
By:
Paae 8 of 8
FLORIDA INTERCOYERNMENTAL RISK MANAGEMENT ASSOCIATION
• BY-LA NS
PROPERTY/CASUALTY DIVISION
ARTICLE I - PURPOSE
1. It 1s the intent of the participating members who have
executed the applloaDle Interlooal Agreements by and between
seven local municipal corporations to create a Comprehensive Rlsk
Management Program to provide for Property/Casualty Losses of the
member munlolpalitles and to work together aolleotively in order
to utilize each mamba is resources Sn the moat of tlolent manner.
Funds shall be contributed by the members In aooorUance with ttie
Interlooal Agreement and Dy-Laws adopted by the Board of
Dlrectoraj which funds will be utilized to defend and protect the
members against Property/Casualty liabilit-iea or losses. These
By-Laws, once adopted by the Board of Directors, shall constitute
the policy direction and substance of the ASak Management
• Program. These By-Laws do not, inany way, constitute any type
of insurance coverage. ~
ARTICLE II_- DEFINITIONS
1. AGREEMENT - As used herein the term "Agreement" will
refer to the Interlooal Agreement/between the participating
members dated the ~7 day of , 1989, with regard to the
Property/Casualty Division of FIRMA.
2. AUDIT / FINANCE COtdh1ITTEE - A ooromittee made up of
representatives of participating members and selected by the
Board of Directors. This committee shall review the finances of
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FIRMA - Property/Casualty Division and shall make reoommen tle tt ons
relative to same.
• 3. CLAIMS ADMINISTRATOR or CLAIMS ADMINISTRATION AGENCY -
An individual or company approved by the State of Florida
Department of Labor to administer Self Insurance Programs
selected by the Board of Directors. The Board may enter Snto
contracts with a oompany or individual under auoh terms and
conditions as era consistent with State Law and deemed Vrudent by
the Board Sn order to implement the goals and polloles oC FIRMA -
Property/Casualty Division.
4. CONSULTINO and/or SERVICING AGENCY - Any Consulting
and/or Servioing Agenoy aeleoted by the Hoard of Directors to
assist !n implementing the Comprehensive Riak Management goals of
the Board of Direotora as allowed by Florida Statutes.
5. FIRMA - Florida Intergovernmental Riak Management
Asaooiation oonaiating of munioipal corporations who have
executed the Interlooal•Agreement, as amended, creating FIRMA.
FIRMA has, at this time, two (2) divislona~ those being the
Property/Casualty Division and the Employee Denetlta Division.
Eaoh division Ss governed by a separate Interlocal Agreement
executed and filed in aooordanoe with Chapter 163, Florida
Statutes and separate By-Laws adopted by the Doard of Directors
of the reapeotive division.
6. INSURANCE CONSULTANT - An individual or company
selected by the Board of Direotora to perform such services and
under such terms and conditions as are aonsiatent with State Law
and deemed prudent by the Board of Directors in order to
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Implement the goals and policies of FI Rh1A - Property/Casualty
Division.
• 7. JOINT RISK MANACEMEtiT POOL/PflOPERTY CASUALTY DIVISION -
The Joint Rlak Management Pool shall consist of the total
contributions collected from each member along with any
subrogation and/or re-i nauranoe ~oonlea collected by the Claims
Administrator or other service agencies and shall comprise the
monies necessary to contrast for services needed and to pay
assessments, if any.
B. MEMBERS - The municipal corporations who originally
signed the Interlooal Agreement creating FIRMA who~have not
terminated membership and any public entity who later Joins by
entering into an amended Interlocal Agreement as required by the
Board of Directors of FIRMA.
9. OPERATIONS REVIEW COMMITTEE - A committee made up of
representatives of participating members selected by the Board of
• Directors. This oommittae shall review operations and made
recommendations with regard to policies and day to day operations
procedures.
10. RISK MANACEMENT - The Riak Management Program adopted
by the Board of Directors to reduce or limit law suite, control
costa and of teotuate a common long range plan for members to
economically control their exposure to law salts.
11. RISK MANAGEMENT CONSULTANT - An individual or company
selected by the Board of Directors to perform such services and
under such terms and conditions as are consistent with State Law
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and deemed prudent by the Board of Directors Sn order to
implement the goals and policies of FIRMA - Property/Casualty
• Division.
ARTICLE III- AOWBA$~AND DUTIES
i. Claims Administration Agenoy or Claims Administrator.
A Claims Administration Agenoy or Claims Administrator shall be
selected by the Board of DSreotora in aooordance with State Law
and shall perform all funotiona as set forth in the contract
negotiated by and between the Claims Administration Agency and
FIRMA _ Property/Casualty Division. Such functions may Snelude
but are not limited to the following services: Budget
Preparation, determination of oontributlons, reports required by
the Board and any and other activities as directed by the Board
and set forth in the oontraot between the agency and FIRMA.
FIRMA requires an annual acoounting to be provided by any
Consulting Agency within sixty (60) days after March 31 of each
year. The Claims Administrator or Claims Administration Agency
• will meet with and oooparate with the Audit/Finance Committee and
the Operations Review Committee in order to implement the most
efficient procedures possible.
2. Insurance - Riak Management Consultant. The Insurance
and/or Risk Management Consultant shall be aeleoted by the Board
of Directors and may be elthar an individual or a company
qualified to perform all funotiona neoeasary for FIRMA to operate
including but not limited to the following~ Loss Prevention and
Safety, Insurance Coverages, Data Processing, Reports as required
by the Board.
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3. Audit - Finance Committee. The Audit - Finance
• Committee shall be made up of partlolpating members and shall be
selected by the Board of Direotors for the purpose of reviewing
the finances and making reeommendatlone relative to same.
4. Operations Review Committee. The Operations-Review
Committee shall be made up of representatives of participating
members and shall De aeleoted by the Board~of Directors for the
purpose of reviewing operations and mak ing recommendations
relative to polloiea and day to day operations procedures.
ARTICLE IV - PARTICIPATION
1. liemberahlp Ss sat forth in the Amended Interlocal
Agreement dated the ~~day of , 1989. New members will
be accepted only upon Joint reoomm ndation by the Operations
Review Committee and the Audit/Finanoe Committee and approval by
an eighty (80x) per oent vote of the entire Board of Directors.
• In order to determine the aooeptability of potential members, the
Board of Dlreotora may request written evaluations to be
submitted by the Claims Administrator, Riak t1anager, and/or
Insurance Conaultanta. These evaluations relative to potential
members shall inolude but may not be limited to the Collowing~
a) Comparison of the Proposed Members Current Risk
Management Program with those programs provided through FIRMA~s
Property/Casualty Division.
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b) Analysis of the loss records of the proposed members
• for the past five (5) Years. These records shall be current.
The reoords shall Include all areas of insuranoe coverages as
well as areas not covered by insuranoe in the past which will be
oovered by the Self-Inauranoe pr ovlded through FIRMA's
Property/Casualty Division. If loss reoords are not available
from the insuranoe oompaniea utilized by the proposed member, the
Board may acoept a latter from an offloial representing the
proposed member certifying that the losses submitted are correct.
c) An evaluation of the Loas Prevantl~on Program currently
in affect relatlva to the proposed member.
d) Coplea of insuranoe poliaiea, loss records and
finanoial data of any proposed member.
ARTICLE V - CUMMENCEMENT_AND~TEflM
1. It is the intent of the members that the FIRh1A -
Property/Casualty Division continue fOr an indeflnita period of
• time. It Ss also the intent of the members that membership
remain open to those puDlio entities whose Rlak Management goals
are in accord with FIRMA's R1ak Management philosophy. In the
event a new member Sa accepted Sn aeoordanoe with the procedures
set forth !n these By-Laws, an amended Interlocal Agreement shall
ba executed by all members, Snoluding the new member.
ARTICLE VI - BOARD ~OF DIRECTORS
1. The Board of Ulreetora shall be established as set
forth in~the Interlocal Agreement. Members agree
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on the Board is important and oonoesalona will be made to attempt
to keep the turnover of tt~e Board Members to a minimum. Officers
shall be eleoted at the annual Board of Directora meeting as set
• forth in Paragraph 12 of the Interlooal Agreements hou ever,
neither the Chairman or Vice-Charrman shall serve for more than
two (2) suoeesalve yea ra. It is the intent of the members that
eaoh member be represented at eaoh Board of Directors meeting.
Should a member fail t,o send a representative or its alternate
for three (3) oonaeautlve meetings, the Chairman of the Board
shall write a letter to the member rePueating that the
representative who hsa failed to attend three (3) consecutive
meetings be removed and replaoed in the beat interests of the
partioipating member.
2. The Board of Directora shall determine the policy of
the association. It will set bond reQulrements and approve all
amendment to By-Laws as well as the provisions for aoaepting new
members, budgets, loss prevention prooedurea, annual and
supplementary payments to the Risk Management Pool, rules on
• oonduet and prooedures, and will oontraot with all consulting
personnel neoessary to carry out the goals of the Riak Management
Program.
3. FIRMA - Property/Casualty Division and/or its Board of
Directors will have no employees as auoh. Needed services shall
be provided by oontraot with independent oontractors and/or
firms. No compensation will be paid to the Board members.
4. Any proposed return of oontrlbutlona to a participating
member shall be approved by the Board of Direotora. In order to
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be eligible for a return of contr3DUtlons ors partial return of
contributions, a member must have losses less than contributions
• to the loss fund. In any one annual period, a member's total
lnourred lose (amount paid plus amount reserved) cannot exceed
the member's loss fund contribution for that same period. There
will be an aaoounting for each year as set forth in paragraph
(13) of bhe Agreement and a pro~eoted oredit issued. No actual
return of money will be made until twenty four (24) months after
the fiscal year for the accounting has ended.
5. Tha Doard shall require that the Claims Administrator
and/or any other persona hired by FIRt1A substantiate all
reoommendationa with regard to return of oontrlbutions by
providing an analysis including the amount paid versus the amount
of loss lnourred by the member. The analysis must also include
all oosta incurred by FIRMA for the year 1n question as well as
any investment inoome that may have been earned.
ARTICLE MY -~BOAAD OF DIRECTORS~~MEBTINOS
• i. Regular meetings will be held every two (2) months.
2. The time, date and location of the meeting will be
announced fourteen (iq) days in advanoe by the Chairman.
3. Robert's Rules or Order shall govern.
L. Minutes of the Board shall be kept and the Secretary of
the Board shall reoord motions and votes by setting forth the
name of the parson making the ~ootion, aeoonding the motion and
the vote oC eaoh member. However, the Minutes of the Board need
not be kept verbatim.
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AflTICLE VIII - FINANCES
1. The flsoal year for the Property/Casualty Division oC
FIRMA shall commenoe April 1 of each year.
2. The Clalma Administrator shall to rniah eaoh member with
estimated costa for budget purposes by April tat of each year.
Eaoh oonsulting servioe agenoy shall have its budget approved by
the Board in final form by April 15 of eaoh year.
3. Contributions by each member shall be made in the
manner and at the time as set forth Sn the Interlooal Agreement
and approved by the Board of Direotora.
ARTICLE-I% - SCOPE~~OF~LOSS PROTECTION
1. FIRMA - Property/Casualty Division shall provide for
each member proteotion for loeaea in exoesa of the deductible
amount as established by the Riak Management Program implemented
by the Board of Direotora. Losaea protected and maximum amount
of protection for members shall be defined in the current
program. Those loeaea whioh exoeed the FIRMA Program will be the
reapona1bi11ty of the individual member. Errors and omissions
coverage will be maintained at a limit of five million
($5,000,000.00) dollars with no one member allowed to utilize
more than two million ($2,000,000.00) dollars in any one (i)
fisoal year unless apeoifioally approved by the Board.
ARTICLE % - ODLICATIONS OF FIBHBBIiS
Members are Obliged
7. To promptly pay all annual contribution payments in
acoordance with the Agreement.
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C:
2. To aeleot a rep reaentative and an alternate to the
Board of Directors, by Resolution.
3. To allow the Claims Administration Agenoy and/other
service agenoiea reason able aooesa to reoorda.
4. To oooperate with attorneys employed by the Board of
Directors to represent the member.
5. To furnish full oooperation to the conaulting agency,
its employees, and Sta agents.
6. To follow loss reduotion and prevention procedures
established by the Board.
7. To furnish neoeasary audits to the Claims
Administration Agenoy and/or other Insurance conaulting Agenoles
hired by the Board.
8. To report to the Claims Administrator and/or Claims
Administration Agenoy as promptly ae possible all incidents which
could result in a olaim.
ARTICLE XI - LIABILITY OF THE BOARD OF DIflECTORS
1. The Board should use ordinary and reasonable
diligence in implementing the policies of FIRt~tA as set forth
herein. No Board member shall personally be liable in tort or
named as a party defendant in any action for damage suffered ~as a
result of any act, event, or omission of action in the scope of
his employment or funotion unless such Board member acted in bad
faith or with malioious purpose or in a manner exhibiting wanton
Page 10 of 14
L`
and wilful disregard of human ri glue, safety or property fn
accordance with Section 768.28 (9)(a), Florida Statutes.
ARTICLE 7CII - ADDITIONAL INSURANCE,
1. Membership in FIRMA shall not preclude any member from
purchasing additional coverage. The Clalma Administration Agency
and/or Insuranoe. Consultant Agency shall make its facilities
available to the members in this regard but there shall be no
obligation upon any member to purohase additional Snsurance from
any consulting or servioe agenoy.
ARTICLE XI II - OPTIONAL DEFENSEBY MEMBERS
1. Each member through its FIRMA - Property / Casualty
Representative shall be granted a reasonable opportunity to
prevent the Claims Administrator or Claims Administration Agency
from settling a case or olaim in a manner contrary to the wishes
of the member. Should a member exercise this privilege to
prevent the aettlamant of a olaim, such member shall be
responsible for any later Judgment in an amount greater than the
settlement whloh was previously reaohed or could have been
reached between the claimant/plaintiff, the Operations Review
Committee and the Clalma Administrator or Claims Administration
Agency.
ARTICLE XIV - BY LAWS AND INTERLOCAL AOREEHENT GOVERN
1. These By-Laws shall constitute the governing charter
for FIRMA and all transactions shall be conducted in accordance
with these By-Laws which may be amended from time to time by a
ma,Jority vote of the Board of DSreotora.
Page 11 of 14
•
2. Other than the liroited financial contributions agreed
to herein or such additional obligation as may arise through
amendments to these By-Laws or to the Interlooal Agreement, no
member agrees or contracts herein to be held responsible for any
claim in tort or contract made against the other member.
ARTICLE XV - EXPULSION OF FIEMBERS
1. No member may be expelled except after notice and a
reasonable opportunity of not less than thirty (30) days to cure
the alleged failure. Disputes will be settled by a hearing
before the Doard of Directors and its deoieion shall be final.
2. Expulsion of a member shall be by an eighty (80$) per
cent vote of the entire Board of Directors with the exception oC
the member chose expulsion is being considered.
3. Just cause for expulsion of a member may Snelude but is
1~
u
not limited to the tollowing~
a) Failure to make payments when duet
b) Failure to adopt lose prevention procedures based on
recognized safety standards and polices approved by
the Boa rdl
o) Failure to coopers to with Board approved consulting
agencies.
ARTICLE %VI - TERMINATION OF THE~ASSO~CIATION
1. The Association will continue unless terminated by the
members. Withdrawing members will be fully obligated for their
Page 12 of 14
•
portion of any annual contributions to the Alak Management Pooi
created during the term of their membership as set forth Sn the
• Interlooal Agreement. Withdraaing members may belong to the
Board of Directors but shall vote only on matters affecting their
limited continuing lnterest.
APPROVED this ~~ ay of -_-~ 1989, by the
FIRPIA Board of Directors - Property/Casualty Division.
CITY OF GREENACRES CITY
TOWN OF JUPITER
_..; .... 4f~~.
TOWN OF LAKE CLARKE SHORES
i
TOWN OF LAKE PARK
Y~
Page 13 of 14
•
• CITY OF LAKE WORTH
y.
TOWN OF L'ANTANA
VILLAGE OF NORTH PALI1 BEACH
~'
Y~~
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