City of Culver City, California
Agenda Item Report
Meeting Date: 9/26/11 Item Number: C-8
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving the Amended
Joint Powers Agreement Forming the California Transit Systems Joint Powers
Authority
Contact Person/Dept.: Art Ida
/Transportation
Phone Number: 310-253-6535
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Agenda and Meetings – City Council (09/21/11)
Department Approval:
Art Ida (9/1/2011)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/19/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (09/20/11)
City Manager Approval:
John M. Nachbar (09/20/11)
RECOMMENDATION:
Staff recommends the City Council adopt a resolution approving the amended joint
powers agreement forming the California Transit Systems Joint Powers Authority.
BACKGROUND:
On April 20, 1987, the City Council authorized the City of Culver Cityto join the
California Transit Systems Joint Powers Authority (CalTIP or Authority) to obtain
liability coverageand risk management services through jointly pooling resources
with the other transit agencies that are members of the Authority. CalTIP has
provided competitive and stable rates and needed risk management services over
the years. CalTIP, as were many other self-insurance pools, was formed in 1987
during a time when public entities found it difficult to obtain coverage from the
insurance market. Although the difficulty of obtaining insurance from the standard
markets eventually waned, the coverage provided by the insurance industry usually
was not tailored to the specific needs of public entities and did not provide tailored
risk management services.
CalTIP was formed through the execution of a joint powers agreement (Agreement)
by each of its member agencies. TheAgreement was drafted in 1987 and has not
been changed since. Although the Agreement has not changed, CalTIP has. It has
added a vehicle physical damage program, a more robust safety and loss control
program, and a morerefined means of accounting for funds, expenses and claims City of Culver City, California
Agenda Item Report
costs. Additionally, it now participates in a larger public entity self-insurance pool for
higher limits of liability. Because of the growth of activities, committees were formed
with certain authorities that align with the current activities of the Authority. In
addition to CalTIP changing, there have been changes in the laws pertaining to joint
powers authorities, such as specifically allowing distribution of excess contributions
based on the claims and losses paid and acknowledging that the withdrawal of one
member does not cancel the contract as respects to the other signatories or parties
to the Agreement. In addition, the original Agreement was restrictive in that it
provided detailed information on the liability program for which the joint powers
authority was initially created. It did not specifically recognize the addition of new
programs developed to meet the needs of the members. Thus, the Board of
Directors of CalTIP believed it was time to update the Agreement by reflecting the
changes that have occurred in the last twenty-four years and have a document that
will be responsive to future changes in CalTIP, the legal environment, and its
members.
DISCUSSION:
The revised Agreement was reviewed by the CalTIP Oversight Committee and the
Board of Directors. The Agreement was distributed to all the members for comment.
The comments were brought back to the Oversight Committee and revisions were
made to the Agreement. Then the Agreement was taken to the Board of Directors,
who commented further and moved to have the Agreement sent to the members’
governing bodies for adoption.
The Agreement needs to be adopted by the governing bodies of at least three-
fourths of the members of CalTIP. Although not all members’ adoption is needed,
CalTIP believes it best to have all members adopt the amended Agreement. The
amendments will bring the Agreement up-to-date with current laws and best
practices within the risk management joint powers authorities. It will also provide
flexibility to the Board of Directors to change its structure and function from time to
time as needed. Each member, including the Cityof Culver City, has representation
on the CalTIP Board of Directors
FISCAL ANALYSIS:
Adoption of the resolution approving the amended Agreement has no fiscal impact.
The annual costs for participation in the program have been authorized through the
budget process, and are not expected to change as a result of the approval of the
updated Agreement.
ATTACHMENTS:
Proposed Resolution. City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
Adopt aResolution approving the amended joint powers agreement forming the
California Transit Systems Joint Powers Authority.
MEETING DATE:
AGENDA ITEM:
9/26/11
Adoption of a Resolution Approving the Amended Joint
Powers Agreement Forming the California Transit
Systems Joint Powers Authority and Authorizing the City
Manager to Sign the Amended Agreement
ATTACHMENTS
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RESOLUTION NO. 2011-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING THE
AMENDED JOINT POWERS AGREEMENT FORMING THE
CALIFORNIA TRANSIT SYSTEMS JOINT POWERS
AUTHORITY
WHEREAS, on April 20, 1987, the City Council approved entering into an
agreement that provided for the creation of the California Transit Systems Joint Powers
Insurance Authority (hereinafter CalTIP) for the purpose of jointly funding tort liabilities
and other losses and providing risk management services to reduce such losses; and
WHEREAS, CalTIP has provided the City of Culver City coverage for such
liabilities at stable and overall cost-effective pricing; and
WHEREAS, the City Council of City of Culver City finds it in the best
interest of the City of Culver City to continue its participation in CalTIP and obtain
liability coverage and risk management services from CalTIP; and
WHEREAS, the joint powers agreement of CalTIP has retained its original
form as drafted in 1987, and there have been changes in laws and the operations of
CalTIP since that time; and
WHEREAS, the City Council recognizes these changes and the need to
amend the CalTIP joint powers agreement to enable CalTIP to benefit from the changes
in laws, adapt to changes in the environment that CalTIP operates, and to benefit from
the developments in managerial and operational techniques of the joint powers authority
for the purpose of jointly funding tort liabilities and other losses facing the parties to the
agreement in the future.
NOW, THEREFORE, the City Council of the City of Culver City, DOES
HEREBY RESOLVE as follows:
1. Accepts the changes to the joint powers agreement as presented
and approves the amended joint powers agreement, attached to this Resolution as
Exhibit A and incorporated herein by this reference, and
2. Authorizes the City Manager or his or her designee to execute the
amended joint powers agreement that shall enable the City of Culver City to continue to
-1- APPROVED AS TO F' !
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OL A. SCHWAB
Attorney
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enjoy the joint self-insurance and risk management programs provided by CalTIP.
APPROVED and ADOPTED this day of , 2011.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk
Al 1-00631
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