HomeMy WebLinkAboutResolution 88-034 IGA to participate in the Arizona Municipal Rsk Retention PoolRESOLUTION NO. 88.34
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
Ma~%NA A~PROVING A CERTAIN INTERGOVERNMENTAL AGP. EEMENT
BETWEEN 'a'~ TOWN OF MARANA AND TH~ STATE OF AHIZONA T~I~OUGH
ITS DEPARTMENT OF ADMINISTRATION ~?.r~NING THE TOWN OF MARANA
TO PARTICIPATE IN THE STATE OF ARIZONA Mu~4ICIPAL RISK
R~TENTION POOL AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGI~EEMENT; AND DECLARING AN EMERGENCY.
WHEP. EAS, Arizona law permits two or more public agencies to
enter into contracts or agreements to pool retention of their
risks for property and liability losses and to provide for the
payment of losses or claims of liability made against any member
of the pool on a cooperative or contract basis with one another;
and
WHEREAS, the State of Arizona through its Department of
Administration is authorized pursuant to ARS 41-621 (B) to
develop a Risk Retention Pool, has the expertise to establish and
administer such a Pool, and is willing to provide such service to
the Town of Marana; and
WHEREAS, the Town of Marana desires to enter into an
Intergovernmental Agreement for the purpose of participation in
such Risk Retention Pool;
NOW, THEREFORE BE IT RESOLVED by the Mayor and Common
Council of the Town of Marana as follows:
The Town Council will hereby approve that certain
"Intergovernmental Agreement;" between the Town of
Marana and the State of Arizona through its Department
of Administration which provides for the participation
of the Town of Marana in the State of Arizona Municipal
Risk Retention Pool.
2. The Mayor is hereby authorized to execute such agreement
on behalf of the Town of Marana.
The immediate operation of this Resolution is necessary
for the Preservation of the public peace, health, and
safety, and therefore an emergency is hereby declared
to exist, and this Resolution shall be in full force
and effect immediately after its passage and adoption.
PASSED AND ADOPTED by the Mayor and Common Council of the
Town of Marana, Arizona, this 6th day of December, 1988.
ATTEST:
MAYOR
APPROVED AS TO FORM:
",.41'
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A.G. CONTRACT N~ ~~~1~~_~I~~~~J~lV
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AGREEl-iENT 1-.0.
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1. ~~E!i~s. The parties to this Intergovernmental Agreement
(the ftAgreementft) are the State of Arizona through its
Department of Administration (the ftStateft) and______________
_____!~~_~!__~~~~~~_________________________, a Municipality
located in_____~i~e____________County, the State of Arizona
(the ftMunicipality").
2. ~~fl!~Js. This Agreement is based upon certain under-
standings and in furtherance of certain purposes, as follows:
'~
2.1 Arizona law permits two or more public agencies to
enter into contracts or agreements to pool retention of
their risks for property and liability losses and to
provide for the payment of property losses or claims of
liability made against any member of the Pool on a
cooperative or contract basis with one another.
2.2 The Municipality and certain other Municipalities
desire to enter into intergovernmental agreements for
the purpose of establishing such a risk retention pool.
2.3 The State through its Department of Administration is
authorized pursuant to A.R.S. Section 4l-62l(B) to
develop such a risk retention pool, has the expertise
to establish and administer such a pool, and is willing
to provide such service to the Municipalities desiring
to participate therein.
c~t
3. ~~!!j2j~~t!Q~. Based on such understandings and in
furtherance of such purposes, the State and the Municipality
agree to establish and participate in the State of Arizona
Municipal Risk Retention Pool (the WpoolW) as set forth
herein, on the terms and conditions as described in this
Agreement. The specific risks covered by the Pool, the
procedure for making claims against the Pool, the means and
procedures for defending against such claims, the persons or
entities to be indemnified by such Pool, the limitations and
exclusions on coverage, and various other matters necessary
or appropriate to the functioning of the Pool are more
particularly described in the Coverage Agreement attached
hereto as Appendix wAn, which is deemed incorporated herein
by this reference and which is made a part of this Agreement.
The terms of the Coverage Agreement may be amended by
majority vote of the Board of Trustees for the Pool (the
wBoardW) from time to time upon: provided, that the
Municipality shall be given at least ninety (98) days prior
written notice thereof: and provided further, that the form
of the Coverage Agreement shall be similarly amended at the
same time for all participants.
3.1 Q~!~!j2~. This Agreement shall be effective as of the
date set forth in the Coverage Agreement, or, if later,
on the date the Agreement is filed with the Secretary
of State and shall continue for a term of ten (18)
years thereafter, unless earlier terminated as provided
herein.
3.2 This Agreement may not be terminated by either party
during the initial twelve (12) months after the
effective date hereof, except that coverage may be
suspended or terminated as provided herein for
nonpayment of premiums or other violations by the
Municipality of the terms of this Agreement.
2.
I
3.3 This Agreement may be terminated by the Board or the
State at any time after the initial twelve (12) months,
effective as of any anniversary of the effective date,
by written notice of termination given at least ninety
(ge) days prior to such anniversary date.
3.4 This Agreement may be terminated by the Municipality at
any time following the initial twelve (12) months by
written notice given at least ninety (ge) days prior to
such termination.
~~2 This Agreement may be renewed for additional ten (Ie)
year terms by mutual agreement of the Municipality and
the State prior to the expiration of the original or
any renewal term of this Agreement as provided by
A.R.S. Section 11-952(G).
3.6 In the event the Municipality shall terminate this
Agreement for any reason, or in the event the Board or
the State shall terminate this Agreement as a result of
the breach of the terms hereof by the Municipality
prior to the expiration of the original (Ie) year term
hereof, the Municipality shall thereupon forfeit any
and all rights to the return of any surplus, unearned
contributions, or other distributions from the Pool.
4. !~!~jE~_~~Q~_2f_f221. The Pool shall be terminated upon the
first to occur of the following:
(a) When all participants in the Pool shall have
ceased to participate;
(b) At such time as the Board shall determine that the
number of participants and/or the size of the Pool
is too small to adequately indemnify against the
risks specified in the Coverage Agreement.
3.
~
Any termination pursuant to (b) above shall not be effective
until the Board shall have given each participant at least
one (1) year advance written notice of such termination.
Upon termination of the Pool, adequate provision shall be
made for all pending and anticipated claims, the property and
the liabilities of the Pool shall be liquidated, a final
accounting shall be made and the funds thereafter remaining
in the Pool shall be distributed among the then existing
participants in the Pool in proportion to the contributions
made to the Pool by each of the ten existing participants
during the preceding ten (10) years. In the event there are
inadequate funds to meet all claims and expenses of the Pool,
an assessment shall be made pursuant to paragraph 8 of this
Agreement and A.R.S. Section 41-622.01(C).
5. ~2~!~j2_~t~2~~. As of the effective date of this Agreement,
and as of the first day of each fiscal year of the Pool
thereafter, the anticipated liabilities and expenses of the
Pool for the following fiscal year or portion thereof shall
be calculated by the administrator of the Pool based on the
determination of the Pool's actuary. Such liabilities and
expenses shall include the cash needs of the Pool to pay its
current claim and allocated expense liabilities, an allowance
for claims reported but not expected to be paid in said
fiscal year, an allowance for claims incurred but not
reported, and an allowance for the general administrative
overhead of the Pool. Such liabilities and expenses shall be
allocated among the Pool's participants based on the pro rata
exposure of each participant as that participant's exposure
relates to the total exposure of the Pool. The amount of
each participant's exposure shall be determined by the Pool's
actuary based upon criteria and rating assumptions uniformly
applied to each participant. The Municipality agrees to
furnish the Board all information requested by the Pool's
actuary to enable the actuary to determine the exposure of
4.
\
~he Municipality, and to promptly reply to all other
correspondence or inquiries from the State or its
representatives relating in any way to this Agreement. The
Board shall advise each participant of the amount of the
Pool's total liabilities and expenses for the following year,
and the amount of liabilities and expenses allocated to each
participant, on or before March 15 of each calendar year.
The Municipality shall pay its allocated share of such
expenses and liabilities for the whole year to the Pool in
cash within thirty (3~) days of such notification, or by such
later date as shall be specified in the notice.
6. Q!~!sj_~~tiQ~_pJ_~_~~~~~. At the end of the tenth (l~th)
fiscal year of the Pool's existence and at the end of each
fiscal year thereafter, any surplus funds in the Pool over
and above those necessary to payor reserve against the
expenses and liabilities of the Pool attributable to the
first year of the ten (l~) preceding fiscal years shall be
distributed among the then existing participants in the Pool
who were participants during such first year of the ten (l~)
preceding fiscal years. Such distribution shall be allocated
among such participants in proportion to the contributions
made by each such participant during the first year of the
ten (l~) preceding fiscal years of the Pool.
7. ~~~p~~_~ion. In the event the Municipality shall fail to make
its contribution as specified herein, or shall fail to comply
with any of the other terms of this Agreement, the Board may,
if such default is not cured within ten (l~) days written
notice to the Municipality, suspend the Municipality's
coverage under this Agreement for a period of up to
forty-five (45) days without further notice or action.
During such forty-five (45) day suspension period, the Board
shall determine if the suspension shall be made permanent, in
which case this Agreement shall be deemed terminated
effective as of the date of suspension, or the circumstances,
5.
if any, under which the Municipality's participation in the
Pool and the effectiveness of this Agreement may be restored.
Should the Municipality be permanently suspended and this
Agreement terminated, the Municipality shall forfeit all
rights to any distribution of Pool surpluses or property upon
the termination of the Pool. Regardless of such termination,
however, the Municipality's liability for ordinary
contributions under Section 5 above shall be unaffected, and
its liability for additional contributions shall continue to
the extent provided in Section 8 below.
8. ~~~~3~_~~nt. If the pool becomes insolvent or is otherwise
unable to discharge its legal liabilities and other
obligations, the Municipality may be assessed by the Board
for an additional contribution equal to its contribution for
the then current fiscal year divided by the contribution of
all participants for such year, times the amount of such
deficiency: provided, however, that (a) the amount of such
assessment may not exceed the amount of the Municipality's
original required annual contribution to the Pool for the
year in which the assessment is made: (b) no more than one
such assessment may be made during each fiscal year of the
Pool: and (c) each other participant shall be simultaneously
assessed its pro rata share of such deficiency. Each such
assessment, and the manner of calculating the same, shall be
given to the Municipality in writing, and the Municipality
shall thereafter have sixty (6e) days in which to pay the
amount of such assessment. The Municipality shall remain
liable for such assessments, regardless of the Municipality's
withdrawal from participation or the termination of this
Agreement, for liabilities of the Pool incurred during the
Municipality's period of membership.
6.
9. ~2~!P__~t_!E~~~~~s. The Pool shall be operated by a Board of
Trustees (the "Board") consisting of at least five (5)
persons who are elected officials or employees of public
entities within the State of Arizona. The Assistant Director
for Risk Management of the Arizona Department of
Administration shall automatically be a member of the Board.
The remaining four members shall be elected by the
participants in the Pool at the annual meeting of the
participants held as provided in the Bylaws. The initial
Board, in addition to the Assistant Director for Risk
Management, shall consist of the following four persons who
shall serve until the first Annual Meeting or until their
successors shall have been duly elected and qualified:
Ben F. Williams, Jr., Mayor of Douglas;
President, League of Arizona Cities and Towns
Harry E. Mitchell, Mayor of Tempe; Vice President,
League of Arizona Cities and Towns
Gail M. Piggott, Mayor of Coolidge; Treasurer,
League of Arizona Cities and Towns
George R. Renner, Mayor of Glendale; Past President,
League of Arizona Cities and Towns
The four members elected by the participants in the Pool
shall serve for a term of one (1) year, coincident with the
fiscal year of the Pool, or until their successors shall have
been duly elected and qualified. In the event of a vacancy
among the seats held by the elected members, the remaining
members shall appoint his successor by majority vote to serve
as such for the remainder of the unfilled term. In the event
no person holds the office of Assistant Director for Risk
Management of the Arizona Department of Administration, the
Director of the Arizona Department of Administration shall
automatically become a member. If there is no Director, the
7.
Acting Director or a senior Assistant Director shall become a
member in the place and stead of the Director. The number of
members may be changed by a vote of a majority of the Board,
provided that the Board shall always consist of at least five
(5) members and no more than nine (9) members. Each
participant in the Pool shall be entitled to one vote in any
election of members to the Board. The State Treasurer, or
his designee, shall be an ex-officio, non-voting member of
the Board.
9.1 In accordance with A.R.S. Section 11-952.91(B), the
Board shall:
(a) Establish terms and conditions of coverage within
the Pool including exclusions of coverage.
(b) Insure that all claims for which each member
incurs liability during each member's period of
membership are paid promptly.
(c) Take all necessary precautions to safeguard the
assets of the Pool.
(d) Maintain minutes of its meetings.
(e) Designate an administrator to. carry out the
policies established by the Board and to provide
day-to-day management of the Pool and delineate in
the written minutes of its meetings the areas of
authority it delegates to the administrator.
(f) Notify the Arizona Director of Insurance of the
existence of the Pool and file with him and with
the Arizona Attorney General a copy of this
Agreement, which the Attorney General shall file
with the Secretary of State as prescribed by
A.R.S. Section 11-952.
8.
9.2 In accordance with A.R.S. Section 11-952.01(C), the
Board shall not:
(a) Extend credit to participants for payment of a
premium, except pursuant to payment plans
established by the Board.
(b) Borrow any monies from the Pool or in the name of
the Pool except in the ordinary course of
business.
10. ~!~J~__~~tt~~~~E~__~~t~2E!~Y. The administrator of the Pool
may settle any claim against the Pool for which the Pool is
responsible pursuant to the terms of the Coverage Agreement
up to the amount of $25,000.00, or such higher amount as may
be established by the Board. The administrator may settle
any such claim of more than $25,000.00 (or of such amount
higher than that established by the Board) only with the
approval of the Board or of a claims committee established by
the Board.
11. !n~p~2~_~~~_~~p_~~_~it. The State and its representatives
shall be permitted, but shall not be obligated, to inspect
the Municipality's properties and operations at any time.
Neither the State's right to make inspections nor the making
thereof shall constitute an undertaking, on behalf of or for
the benefit of the Municipality or others to determine or
warrant that such property or operations are safe or are in
compliance with any law, rule, or regulation.
11.1 The State may examine and audit the Municipalityls
books and records at any time during the period this
Agreement is in effect, and during any extensions
hereof, and within five years after the final
termination of this Agreement, insofar as said books
and records may relate to the subject matter of this
Agreement.
9.
11.2 The Pool shall be audited annually at the expense of
the Pool by a certified public accountant, and a copy
of the report shall be submitted to the governing board
of the Municipality and of each other participant in
the Pool, and to the Director of the Department of
Insurance. The Board shall obtain an appropriate
actuarial evaluation of the claim reserves of the Pool
including an estimate of the incurred but not reported
claims. The Pool also shall pay the cost of any
examination of the Pool and its reserves by the
Director of the Arizona Department of Insurance as
permitted by A.R.S. Section 11-952.0l(F).
12. ~Y1EY3__~~q_g~1~~__~t_QE~!~!j2~. The Board may make bylaws and
rules pertaining to the exercise of its purpose and powers.
The initial Bylaws for the Pool shall be in the form attached
hereto as Appendix "B", which is incorporated herein by this
reference. The Board may, from time to time, propose
revisions to said Bylaws, which shall become effective only
upon approval by a majority of the members of the Board and
the ratification by a majority of the participants of the
Pool. The Board may also from time to time adopt policies,
rules, and procedures for the administration and operation of
the Pool by majority vote of the Board without ratification
by the participants so long as such policies, rules and
procedures are not inconsistent with this Agreement or the
Bylaws. No provision of the Bylaws, policies, rules, or
procedures shall be inconsistent with the terms of this
Agreement.
13. ~1~E~__~t_~~~iE~~s. The Pool shall have its principal place
of business at the offices of the Arizona Department of
Administration, Risk Management Division, or at such other
place or places as may be established by the Board from time
to time. The Board may employ necessary staff and may
purchase, lease, or rent real property and personal in order
to carry out the business and purposes of the Pool.
10.
14. ~!2J~~_~~~Q~!_~~sy_~~es. The Board may retain the services of
such legal counsel, actuaries, aUditors, engineers, private
consultants and advisors as it deems necessary in order to
carry out the business and purposes of the Pool.
15. E~~E~~~~~_~~~_~EP_~~~q_e~!yj2~s. Financial management of the
Pool shall be provided by the State of Arizona Office of the
Treasurer which shall act as "Trustee" for the Pool, and will
accept, hold, invest and disburse all monies paid into the
Pool in accordance with the provisions of Appendix "D", a
copy of which is attached hereto and is incorporated herein
by this reference. The Office of the Treasurer may carry out
its duties through its own resources or through banks and
financial institutions selected by the Office of the
Treasurer. The Pool may issue checks in its own name. The
Pool shall advance funds to the Office of the Treasurer
quarterly to cover the administrative costs incurred by the
Office of the Treasurer in rendering such services.
16. ~9~jpj_~~~~t!2~. Administration and risk management services
shall be provided by the Arizona Department of
Administration. The Pool shall advance funds quarterly to
the Arizona Department of Administration to cover costs
incurred by the Arizona Department of Administration in
rendering such services.
17. ~2~E_~_~~~~Q!. The Municipality agrees to maintain a program
of loss control in conformance with the Loss Control Program
Standards for Members, a copy of which is attached hereto as
Appendix "Cn and is incorporated herein by this reference.
The State will provide professional loss control consulting
services to aid in the establishment, implementation, and
administration of the loss control program by the
Municipality.
11.
18. Standard of Care. The State and the Board shall use their
-----------------
best efforts to perform the services described herein in
accordance with the provisions of this Agreement. For
purposes of this Agreement, the term "best efforts" shall
mean the exercise of that standard of skill and care which a
skilled, competent, experienced, and prudent administrator
would use to perform and ~omplete the requirements of this
Agreement in a timely manner, exercising the degree of
skills, care, competence, and prudence customarily imposed on
an administrator performing similar work pursuant to A.R.S.
Sections 11-952, ll-952.~1, 41-621 and 4l-622.~1.
19. ~~Pf9~~~iQ~. In the event a recovery is obtained against a
third party pursuant to the right of subrogation set forth in
the Coverage Agreement, such recovery shall first be applied
to the costs of recovery, and the balance, if any, shall be
apportioned between the Pool and the Municipality in
proportion to their respective losses from the occurrence
giving rise to such recovery.
2~. ~2~J2~_~ity_~~~E_~~w. In the event any term or provision of
this Agreement shall be in conflict with the laws and
statutes of the State of Arizona as they now exist or are
hereafter amended, this Agreement shall be automatically
deemed amended to conform to such laws and statutes.
12.
21. ~~~E2~_~~~~_~~P!~~_~~~~~!Y~. The state and the Municipality
shall each designate a representative authorized to act on
their behalf in all matters pertaining to this Agreement.
The following representatives shall be the initial repre-
sentatives:
For the State:
Fred Cuthbertson
Assistant Director of Risk Management
Arizona Department of Administration
801 E. Jefferson St., Suite 201
Phoenix, Arizona 85034
Phone: (602) 255-2198
For the Municipality:
~L__
Name
Mayor
----------------- - ---------------------------
Title
12775 North Sanders Road
Address
Marana,
Arizona
85653
City
State
Zip Code
~~3~~1_______________________.
Phone
Such representatives and/or addresses may be changed by either
party from time to time by written notice to the other.
13.
22. ~i~S2]__~~~E. The fiscal year of the Pool shall begin on
January 1 of each year and end on December 3~ of each year.
23. ~~~E2~_~~~~9_~s!j2n. This Agreement shall become effective
only upon: (a) the execution and delivery of this Agreement
by the Director of the Arizona Department of Administration
on behalf of the State: (b) the execution and delivery of
this Agreement by an authorized representative of the
Municipality on behalf of the Municipality: (c) the delivery
to the State of a certified copy of a resolution of the
action of the governing board of the Municipality approving
the execution of this Agreement by such representative of
the Municipality: (d) the approval of the establishment of
the Pool described herein by the Arizona Joint Legislative
Budget Committee as required by A.R.S. Section 4l-62l(B) if
such approval has not heretofore been given: (e) the
determinations of the Attorney General and the
Municipality's attorney required by A.R.S. Section
ll-952(D): (f) the filing of a fully executed copy of the
Agreement with the Director of Insurance and the Attorney
General as required by A.R.S. Section ll-952.~1(B) (6), and
(g) the filing of a copy of this Agreement with the Arizona
Secretary of State by the Attorney General pursuant to
A.R.S. Section ll-952(E) and Section ll-952.~1(B) (6).
24. ~i~pj]_~~. Neither the State nor any of its departments or
political subdivisions other than the Municipality shall
have any liability pursuant to this Agreement except to
disburse the funds in the Pool in accordance with the terms
of this Agreement and the other similar agreements between
the State and other participants in the Pool. The State
shall have no obligation to payor defend claims except from
the funds in the Pool, and in the event there are
insufficient funds in the Pool for this purpose after paying
the expenses and obligations of the Pool as set forth herein
and after collecting all assessments from the participants
14.
as set forth herein, the State shall have no further
obligation to defend or pay said claims.
24.1 No participant in the Pool shall, by reason of this
Agreement, have any liability for claims brought by
third parties against any other participant, other than
the obligation to contribute certain funds to the Pool
as expressly provided herein. The liability for any
claim against the Municipality shall remain the sole
and exclusive liability of the Municipality; the
obligation of the State and the Pool is to indemnify
the Municipality against such loss as provided in the
Coverage Agreement to the extent and under the
conditions contained therein, and only to the extent
there are funds in the Pool for this purpose.
25. !n~~Jj~_~ty_Q!_~_Y_~~. The parties agree that in the event
any term, covenant or condition herein contained should be
held to be invalid or void by a court of competent
jurisdiction, the invalidity of any such term, covenant or
condition shall in no way affect any other term, covenant or
condition of this Agreement.
26. Qi~p~s~s. Pursuant to A.R.S. Section l2-l5l8(B), the
parties shall make use of arbitration if they are subject to
mandatory arbitration pursuant to rules adopted pursuant to
A.R.S. Section 12-133.
27. ~Q~JJj~_~_~~_!~!~~_~st. All parties acknowledge that this
Agreement is subject to cancellation by the Governor of
Arizona pursuant to A.R.S. Section 38-511, the provisions of
which are incorporated herein.
28. ~!~Ejp_~~~~~_~9~jp_~~_~!~~!j~jp_~t!Q~. In the event that it
applies, the parties agree to comply with the Arizona
15.
Governor's Executive Order No. 75.5, entitled -Prohibition
of Discrimination in State Contracts - Non-Discrimination in
Employment by Government Contractors and Subcontractors.-
29. Q2Y~~P_~~~_~~~_2EE__~~~~~. This Agreement shall be construed
under the laws of the State of Arizona. Any arbitration,
administrative action or other action arising out of this
Agreement, whether for the enforcement thereof or otherwise,
shall be brought in Maricopa County, State of Arizona.
16.
".
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the dates set forth below.
STATE OF ARIZONA,
DEPARTMENT OF ADMI
By___
Max
Director of the
Department of Administration
Date:___~Jt~_~J[1___________________
Town of Marana
________________________MUNICIPALITY,
State of Arizona
Its Mayor
BLf~Z:
-----------------------------------
Date: December 6, 1988
--------------------------------
-; ..
ATTORNEY GENERAL
INTERGOVERNMENTAL AGREEMENT
-----------------------------
DETERMINATION
Pursuant to A.R.S. Sections 11-952 and ll-952.Bl(B) (6), the
foregoing Intergovernmental Agreement, being Attorney General
Contract No. RSK:KR87-B54l-CIV, has been submitted to the
Attorney General as the attorney for the Department of
Administration.
The undersigned Assistant Attorney General had determined
that said agreement is in proper form and is within the powers
and authority granted under the laws of the State of Arizona to
the Department of Administration.
DATED this_~~~day Of~f~~~_~_____. 1987.
ROBERT K. CORBIN
The Attorney General
~4#-;!j1@~~
nnis T. Fenwick
Attorney General
;',--/ ('
~
APPENDIX A
COMPREHENSIVE MUNICIPAL COVERAGE
ARIZONA MUNICIPAL RISK RETENTION POOL
Various provisions in this Appendix A restrict coverage. Read
the entire coverage agreement carefully to determine rights,
duties and what is and is not covered.
Throughout this Appendix A the words "you" and "your" refer to
the "municipality" shown in the Declarations. The words
"we", "us", and "our" refer to the Arizona Municipal Risk
Retention Pool hereinafter referred to as the Pool. The
words "municipality" and "covered party" are defined under
SECTION II - WHO IS COVERED.
Other words and phrases that appear in quotation marks have
special meaning. Refer to SECTION IV - DEFINITIONS.
SECTION I - COVERAGES
COVERAGE A. GENERAL LIABILITY -
BODILY INJURY AND PROPERTY DAMAGE
(CLAIMS MADE ,BASIS)
1. COVERAGE AGREEMENT
a. The Pool will pay those sums that the "covered
party" becomes legally obligated to pay as
"damages" because of "bodily injury" or "property
damage" to which this coverage applies. The Pool
has no other obligation or liability to pay sums
or perform acts or services uncovered unless
explicitly provided for under SUPPLEMENTARY
PAYMENTS - COVERAGE A, C, D, and E. This coverage
does not apply to "bodily injury" or "property
damage" which occurred before the retroactive
date, if any, shown in the Declarations nor which
occurs after the coverage period. The "bodily
injury" or "property damage" must be caused by an
"occurrence". The "occurrence" must take place in
the "coverage territory". The Pool will have the
right and duty to defend any "suit" seeking those
"damages". However:
(1) The amount the Pool will pay for "damages" is
limited as described in SECTION III - LIMITS
OF COVERAGE;
(2) The Pool may, at its discretion, investigate
any "occurrence" and settle any claim or
"suit" that may result;
~:{;\\t\
b. This coverage applies to "bodily injury" and
"property damage" only if a claim for "damages"
because of "bodily injury" or "property damage" is
first made against the "covered party" during the
coverage period.
2. EXCLUSIONS
This coverage does not apply to:
a. "Bodily injury" or "property damage" expected or
intended from the standpoint of the "covered
party". This exclusion does not apply to "bodily
injury" resulting from the use of reasonable force
to protect persons or property.
b. "Bodily injury" or "property damage" for which the
"covered party" is obligated to pay "damages" by
reason of the assumption of liability in a
contract or agreement. This exclusion does not
apply to liability for "damages":
(1) Assumed in a contract or agreement that is a
"covered contract"~ or
(2) That the "covered party" would have in the
absence of the contract or agreement.
c. "Bodily injury" or "property damage" for which the
"covered party" may be held liable by reason of:
(1) Causing or contributing to the intoxication
of any person~
(2) The furnishing of alcoholic beverages to a
person under the legal drinking age or under
the influence of a1coho1~ or
(3) Any statute, ordinance or regulation relating
to the sale, gift, distribution or use of
alcoholic beverages.
This exclusion applies only if you are in the
business of manufacturing, distributing, selling,
serving or furnishing alcoholic beverages.
d. "Bodily injury" to:
(1) An employee of the "municipality" ar1s1ng out
of and in the course of employment by the
"municipality"~ or
2
(2) The spouse, child, parent, brother or sister
of that employee as a consequence of (1)
above.
This exclusion applies:
(1) Whether the "municipality" may be liable as
an employer or in any other capacity; and
(2) To any obligation to share "damages" with or
repay someone else who must pay "damages"
because of the injury.
This exclusion does not apply to liability assumed
by the "covered party" under a "covered contract".
e. (1) "Bodily injury" or "property damage" arising
out of the actual, alleged or threatened
discharge, dispersal, release or escape of
pollutants:
(a) At or from premises you own, rent or
occupy; and premises you no longer own,
rent, lease or occupy;
(b) At or from any site or location used by
or for you or others for the handling,
storage, disposal, processing or
treatment of waste;
(c) Which are at any time transported,
handled, stored, treated, disposed of,
or processed as waste by or for you or
any person or organization for whom you
may be legally responsible; or
(d) At or from any site or location on which
you or any contractors or subcontractors
working directly or indirectly on your
behalf are performing operations:
(i) If the pollutants are brought on or
to the site or location in
connection with such operations; or
(ii) If the operations are to test for,
monitor, clean up, remove, contain,
treat, detoxify or neutralize the
pollutants; or
(2) Any loss, cost, or expense arising out of any
3
governmental direction or request that you
test for, monitor, clean up, remove, contain,
treat, detoxify or neutralize pollutants.
Pollutants means any solid, liquid, gaseous or
thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
f. "Bodily injury" or "property damage" arising out
of the ownership, maintenance, use or entrustment
to others of any aircraft, "auto" or watercraft
owned or operated by or rented or loaned to any
"municipality". Use includes operation and
"loading" or "unloading".
This exclusion does not apply to:
(1) A watercraft while ashore on premises you own
or rent;
(2) A watercraft that is:
(a) Less than 26 feet long; and
(b) Not being used to carry persons or
property for a charge;
(3) Parking an "auto" on, or on the ways next to,
premises you own or rent, provided the "auto"
is not owned by or rented or loaned to the
"covered party".
g. "Bodily injury" or "property damage" arising out
of the use of "mobile equipment" in, or while in
the practice or preparation for, a prearranged
racing, pulling, pushing, speed or demolition
contest or in any stunting activity.
h. "Bodily injury" or "property damage" due to war,
whether or not declared, or any act or condition
incident to war. War includes civil war,
insurrection, rebellion or revolution.
i. "Property damage" to:
(1) Property the "municipality" owns, rents, or
occupies;
(2) Premises the "municipality" sells, gives away
4
or abandons, if the "property damage" arises
out of any part of those premises;
(3) Property loaned to the "municipality";
(4) Personal property in the care, custody and
control of the "municipality";
(5) That particular part of real property on
which the "municipality" or any contractors
or subcontractors working directly or
indirectly on your behalf are performing
operations, if the "property damage" arises
out of those operations; or
(6) Work performed by or on behalf of the
"municipality" arising out of the work or any
portion thereof, or out of materials, parts
or equipment furnished in connection
therewith;
(7) "Your product" arising out of it or any part
of it.
Paragraph (3), (4), (5) and (6) of this exclusion
do not apply to liability assumed under a
sidetrack agreement.
This exclusion does not apply to damage by fire to
premises rented to the "municipality". A separate
limit of coverage applies to this coverage as
described in SECTION III - LIMITS OF COVERAGE.
j. Damages claimed for any loss, cost or expense
incurred by the "municipality" or others for the
loss of use, withdrawal, recall, inspection,
repair, replacement, adjustment, removal or
disposal of:
(1) "Your product";
(2) "Your work"; or
(3) "Impaired property";
If such product, work, or property is withdrawn or
recalled from the market or from use by any person
or organization because of a known or suspected
defect, deficiency, inadequacy or dangerous
condition in it.
5
k. "Bodily injury" or "property damage" arising out
of or contributed to by any complete or partial
failure to supply water, electricity, gas or
stearn.
1. "Bodily injury" to any volunteer fire fighters,
volunteer police officers, volunteer rescue squad
members or paramedics while acting on behalf of
the "municipality" if the volunteer is an employee
within the meaning of a Workers Compensation law
or similar law, or is covered under a voluntary
endorsement to a Workers Compensation policy or
other coverage document.
m. "Bodily injury" or "property damage" arising out
of the ownership, operation or maintenance of any
airport.
n. "Bodily injury" or "property damage" arising out
of the ownership, operation or maintenance of any
hospital, nursing home or medical clinic.
o. "Bodily injury" or "property damage" arising out
of the rendering of or failure to render
professional services by any professional listed
below:
(1) Attorney
(2) Architect
(4) Dentist
(5) Pharmacist
(3) Doctor of Medicine
p. "Bodily injury" or "property damage" arl.sl.ng out
of the failure or bursting of any darn or dike.
q. "Bodily injury" or "property damage" arising out
of:
(1) Mechanically operated amusement devices;
(2) Automobile, snowmobile or motorcycle racing
or stunting;
(3) Rodeos;
(4) Fireworks displays or exhibitions;
r. "Bodily injury" or "property damage" arising out
of liability imposed upon any joint venture or its
6
officers or employees, unless the joint venture is
named in the Declarations.
COVERAGE B. MEDICAL PAYMENTS
1. COVERAGE AGREEMENT
The Pool will pay to or for each person who sustains
"bodily injury" caused by accident all reasonable
medical expense incurred within one year from the date
of the accident as a result of such "bodily injury"
provided such "bodily injury" arises out of a condition
in the "covered premises".
2. EXCLUSIONS
We will not pay expenses for "bodily injury":
a. Arising out of the operation or use of any
snowmobile or trailer designed for use therewith;
b. Included within the completed operations hazard or
the products hazards;
c. Arising out of the operations performed for the
"municipality" by an independent contractor other
than:
(1) Maintenance and repair of the "covered
premises"; or
(2) Structural alterations at such premises which
do not involve changing the size of or moving
buildings or other structures;
d. To any tenant or other person regularly residing
on the "covered premises" or any employee of any
of the foregoing if the "bodily injury" arises out
of and in the course of his employment therewith;
e. To any other tenant if the "bodily injury" occurs
on that part of the "covered premises" rented from
the "municipality" or to any employee of such a
tenant if the "bodily injury" occurs on the
tenant's part of the "covered premises" and arises
out of and in the course of his employment for the
tenant;
f. To any person while engaged in maintenance and
repair of the "covered premises" or alteration,
7
demolition or new construction at such premises;
g. To any person practicing, instructing or
participating in any physical training, sport,
athletic activity or contest whether on a formal
or informal basis;
h. To a member or guest of any club, tourist court or
trailer park operated or owned by the
"municipality".
Exclusions a, b, c, d, e, f, g, h, k, 1, m, n, 0, p, q, and
r of the General Liability Coverage Part (Coverage A) also
apply to this Coverage Part as respects "bodily injury".
3. ADDITIONAL DEFINITIONS
When used herein:
"Covered premises" means all premises owned or rented
to the "municipality" with respect to which the
"municipality" is afforded coverage for bodily injury
liability under Appendix A, and includes the ways
inunediately adjoining on land; however, "covered
premises" does not include streets, sidewalks, or
boulevards that do not abut a publicly owned building
or publicly owned parking lot.
"Medical expense" means expenses for necessary medical,
surgical, x-ray and dental services, including
prosthetic devices, and necessary ambulance, hospital,
professional nursing and funeral services.
4. ADDITIONAL CONDITION
Medical Reports; Proof and Payment of Claim
As soon as practicable the injured person or someone on
his behalf shall give the Pool written proof of claim,
under oath if required, and shall, after each request
from the Pool, execute authorization to enable the Pool
to obtain medical reports and copies of records.
The injured person shall submit to physical examination
by physicians selected by the Pool when and as often as
the Pool may reasonably require. The Pool may pay the
injured person or any person or organization rendering
the services and the payment shall reduce the amount
payable hereunder for such injury. Payment hereunder
shall not constitute an admission of liability of any
"covered party" or of the Pool.
8
COVERAGE C. PERSONAL INJURY LIABILITY
(CLAIMS MADE BASIS)
1. COVERAGE AGREEMENT
a. The Pool will pay on behalf of the "covered party"
all sums which the "covered party" shall become
legally obligated to pay as "damages" because of
"personal injury" sustained by any person or
organization provided that such claims are first
made against the "covered party" during the
coverage period if such offense for which claim is
made or committed dur~ng the coverage period and
the Pool shall have the right and duty to defend
any suit against the "covered party" seeking
"damages" on account of such "personal injury"
even if any of the allegations of the suit are
groundless, false or fraudulent, and may make such
investigation and settlement of any claim or suit
as it deems expedient.
2. EXCLUSIONS
This coverage does not apply:
a. To "personal injury" arising out of the willful
violation of a penal statute or ordinance
committed by or with the knowledge or consent of
any "covered party";
b. To "personal injury" arising out of any
publication or utterance described in subsection
b. of the definition of "Personal Injury" in
SECTION IV - DEFINITIONS if the first injurious
publication or utterance of same or similar
material by or on behalf of the "covered party"
was made prior to the effective date of this
coverage;
c. To "personal injury" arising out of a publication
or utterance described in subsection b. of the
definition of "Personal Injury" under SECTION IV _
DEFINITIONS concerning any organization or
business enterprise, or its products or services,
made by or at the direction of any "covered party"
with knowledge of the falsity thereof.
Exclusions b, 1, m, n, 0, and r of the General
Liability Coverage Part (Coverage A) also apply to
this coverage as respects "personal injury".
9
COVERAGE D. ERRORS OR OMISSIONS LIABILITY
(CLAIMS MADE BASIS)
1. COVERAGE AGREEMENT
The Pool will pay on behalf of the "covered party" all
sums which the "covered party" shall become legally
obligated to pay as "damages" on account of any claim
first made against the "covered party" during the
coverage period by reason of any negligent act, error,
omission, or the violation of any rights, privileges or
immunities secured by the Constitution and the laws of
the United States of America.
The Pool shall have the right and duty to defend any
suit against the "covered party" seeking "damages" on
account of such breech of duty even if any of the
allegations of the suit are groundless, false, or
fraudulent, and may make such investigation and
settlement of any claim or suit as it deems expedient.
2. EXCLUSIONS
This coverage does not apply:
a. To sums which are payable under coverages A, C, or
E:
b. To the activities of any "covered party" acting in
a fiduciary capacity as respects any employee
benefit plan:
c. To amounts due under the terms of any contractual
obligation, but this exclusion does not apply to
any employment contract between the "municipality"
and its employees except for any claimed past or
future wages and employment benefits or claimed
increases in such wages and employment benefits
for work that has been or is hereafter performed
by the employee making such claim:
d. To any claim for "damages" arising out of
annexation, condemnation, inverse condemnation,
adverse possession, or dedication by adverse use:
e. To criminal proceedings against any "covered
party" :
f. To any negligent act, error or omission by a joint
venture or its officers or employees unless the
joint venture is named in the Declarations.
10
The exclusions of the General Liability Coverage Part
(Coverage A) and the Personal Injury Liability Coverage
Part (Coverage C) also apply to this Coverage Part with
respect to any type of "damages" claimed.
COVERAGE E. AUTOMOBILE LIABILITY -
BODILY INJURY AND PROPERTY DAMAGE
1. COVERAGE AGREEMENT
The Pool will pay on behalf of the "covered party" all
sums which the "covered party" shall become legally
obligated to pay as "damages" because of
"bodily injury" or
"property damage"
to which this coverage applies, caused by an
"occurrence" and arising out of the ownership,
maintenance or use, including loading and unloading of
any "automobile", and the Pool shall have the right and
duty to defend any suit against the "covered party"
seeking "damages" on account of such "bodily injury" or
"property damage", even if any of the allegations of
the suit are groundless, false or fraudulent, and may
make such investigation and settlement of any claim or
suit as it deems expedient.
2. EXCLUSIONS
This coverage does not apply:
a. To any obligation for which the "covered party" or
any carrier as his insurer may be held liable
under any Workers Compensation, unemployment
compensation or disability benefits law, or under
any similar law;
b. To "bodily injury" to any employee of the "covered
party" arising out of and in the course of his
employment by the "covered party";
c. To "property damage":
(1) To property owned or being transported by the
"covered party"; or
(2) To property rented to or in the care, custody
or control of the "covered party", or as to
which the "covered party" is for any purpose
exercising physical control, other than
11
"property damage" to a residence or "private
garage" by a "private passenger automobile"
covered by this Appendix A;
d. To "bodily injury" due to war, whether or not
declared civil war, insurrection, rebellion or
revolution or to any act or condition incident to
any of the foregoing;
e. (1) To "bodily injury" or "property damage"
arising out of the actual, alleged or threatened
discharge, dispersal, release or escape of
pollutants:
(a) At or from premises you own, rent or
occupy; and premises you no longer own,
rent, lease or occupy;
(b) At or from any site or location used by
or for you or others for the handling,
storage, disposal, processing or
treatment of waste;
(c) Which are at any time transported,
handled, stored, treated, disposed of,
or processed as waste by or for you or
any person or organization for whom you
may be legally responsible; or
(d) At or from any site or location on which
you or any contractors or subcontractors
working directly or indirectly on your
behalf are performing operations:
(i) If the pollutants are brought on or
to the site or location in
connection with such operations; or
(ii) If the operations are to test for,
monitor, clean up, remove, contain,
treat, detoxify or neutralize the
pollutants; or
(2) Any loss, cost, or expense arlslng out of any
governmental direction or request that you
test for, monitor, clean up, remove, contain,
treat, detoxify or neutralize pollutants.
Pollutants means any solid, liquid, gaseous
or thermal irritant or contaminant, including
smoke, vapor, soot, fumes, acids, alkalis,
12
chemicals and waste. Waste includes
materials to be recycled, reconditioned or
reclaimed.
f. To liability assumed under any contract or
agreement.
3. PERSONS COVERED
Each of the following is a "covered party" under this
coverage to the extent set forth below:
a. The "municipality":
b. Any elected or appointed official or employee of
the "municipality" with respect to a "non-owned
automobile" only while such "automobile" is being
used in the business of the "municipality":
c. Any other person while using an "owned automobile"
or a hired "automobile" with the permission of the
"municipality", provided his actual operation or
(if he is not operating) his other actual use
thereof is within the scope of such permission,
but with respect to "bodily injury" or "property
damage" arising out of the loading or unloading
thereof, such other person shall be a "covered
party" only if he is:
(1) A lessee or borrower of the "automobile": or
(2) An employee of the "municipality" or of such
lessee or borrower:
d. A fire fighter with respect to any "automobile"
while such "automobile" is being used in the
performance of his official duties:
e. Any other person or organization but only with
respect to his or its liability because of acts or
omissions of a "covered party" under (a), (b), or
(c) above.
None of the following is a "covered party":
a. An elected or appointed official or employee of
the "municipality" with respect to an "automobile"
owned by a member of his household unless such
automobile is specifically described in this
Appendix A:
13
b. Any person or organization, other than the
"municipality", with respect to:
(1) A motor vehicle while used with any "trailer"
owned or hired by such person or organization
and not covered by the Pool (except a
"trailer" designed for use with a "private
passenger automobile" and not being used for
business purposes with another type of motor
vehicle): or
(2) A "trailer" while used with any motor vehicle
owned or hired by such person or organization
and not covered by the Pool.
c. Any person while employed in or otherwise engaged
in duties in connection with an "automobile
business", other than an "automobile business"
operated by the "municipality".
4. ADDITIONAL DEFINITIONS
When used in reference to this coverage (including
endorsements forming a part thereof) :
"Automobile business" means the business or occupation
of selling, repairing, servicing, storing or parking
"automobiles":
"Hired automobile" means an automobile not owned by the
"municipality" which is used under contract on behalf
of, or loaned to, the "municipality", provided such
"automobile" is not owned by (a) a partner or executive
officer of the "municipality" or (b) an employee or
agent of the "municipality" who is granted an operating
allowance of any sort for the use of such "automobile".
"Non-owned automobile" means an "automobile" which is
neither an "owned automobile" nor a "hired automobile".
"Owned automobile" means an "automobile" owned by the
"municipality".
"Private passenger automobile" means a four wheel
private passenger or station wagon type "automobile".
"Trailer" includes semi-trailer but does not include
"mobile equipment".
14
SECTION II - WHO IS COVERED
1. "Municipality" means the municipality or other
governmental body, political subdivision, board or
department or entity named in the Declarations. Unless
specifically named in the Declarations, "municipality"
shall not include a gas, electrical or steam utilities
commission, port authority: housing and redevelopment
authority: or similar agency, board or commission:
hospital or nursing home board or commission: welfare
or public relief agency: school board: or joint
venture.
2. "Covered Party" means:
a. The "municipality":
b. While acting within his duties as such:
(1) A member of the council of the
"municipality":
(2) A member of any board or commission of the
"municipality" that is named in the
Declarations:
(3) An elected or appointed official of the
"municipality":
(4) An employee of the "municipality":
(5) A volunteer person or organization while
acting on behalf of the "municipality":
(6) Any other authorized person or agent of the
"municipality" while acting on behalf of the
"municipality", but excluding independent
contractors:
(7) A relief association, its officers and
employees.
SECTION III - LIMITS OF COVERAGE
1. The Pool's maximum limit of liability for Coverage
Parts A, C, D, and E, respectively, shall be as shown
in the Declarations.
2. The Limits of Coverage shown in the Declarations and
15
the prov1s1ons below fix the most we will pay under
each coverage part regardless of the number of:
a. "Covered Parties":
b. Claims made or "suits" brought: or
c. Persons or organizations making claims or bringing
"suits".
3. The Products-Completed Operations Aggregate Limit is
the most we will pay under Coverage A for "damages"
because of injury and damage included in the
"products-completed operations hazard".
The limits of this Coverage Part apply separately to
each consecutive annual period and to any remaining
period of less than twelve (12) months, starting with
the beginning of the coverage period shown in the
Declarations, unless the coverage period is extended
after issuance for an additional period of less than
twelve (12) months. In that case, the additional
period will be deemed part of the last preceding period
for purposes of determining the Limits of Coverage.
4. The Fire Damage Limit is the most we will pay under
Coverage A for "damages" because of "property damage"
to premises rented to the "municipality" arising out of
anyone fire.
5. The Medical Expense Limit is the most we will pay under
Coverage B for all medical expenses because of "bodily
injury" sustained by anyone person.
The Medical Expense Aggregate Occurrence Limit is the
most we will pay under Coverage I for all medical
expenses because of "bodily injury" to two or more
persons resulting from one "occurrence".
6. The Pool shall not be obligated to pay any claim or
judgment or to defend any suit after the applicable
limit of the Pool's liability under Coverages A, C, D,
or E has been exhausted by payment of judgment or
settlements.
SECTION IV - DEFINITIONS
1. "Automobile" ("Auto") means a land motor vehicle,
trailer or semi-trailer designed for travel on public
roads, including any attached machinery or equipment.
16
But "automobile" does not include "mobile equipment".
2. "Bodily Injury" means bodily injury, sickness or
disease sustained by a person, including death at any
time resulting from bodily injury, sickness or disease.
3. "Coverage territory" means:
a. The United States of America (including its
territories and possessions), Puerto Rico and
Canada;
b. International waters or airspace, provided the
injury or damage does not occur in the course of
travel or transportation to or from any place not
included in a. above; or
c. All parts of the world if:
(1) The injury or damage arises out of:
(a.) Goods or products made or sold by you in
the territory described in a. above; or
(b.) The activities of a person whose home is
in the territory described in a. above,
but is away for a short time on your
business; and
(2) The "municipality's" responsibility to pay
"damages" is determined in a "suit" on the
merits, in the territory described in a.
above or in a settlement we agree to.
4. "Damages" means money "damages". "Damages" does not
include any of the following:
a. Any obligation of a "covered party" under a
Workers Compensation, disability benefits, or
unemployment compensation law or any similar law;
b. Punitive damages or exemplary damages;
c. Fines or penalties imposed by law.
5. "Impaired property" means tangible property, other than
"your product" or "your work", that cannot be used or
is less useful because:
a. It incorporates "your product" or "your work" that
is known or thought to be defective, deficient,
inadequate or dangerous; or
17
b. You have failed to fulfill the terms of a contract
or agreement;
If such property can be restored to use by:
(1) The repair, replacement, adjustment or
removal of "your product" or "your work"; or
(2) Your fulfilling the terms of the contract or
agreement.
6. "Covered contract" means:
a. A lease of premises;
b. A sidetrack agreement;
c. An easement or license agreement in connection
with vehicle or pedestrian private railroad
crossings at grade;
d. Any other easement agreement, except in connection
with construction or demolition operations on or
within fifty (50) feet of a railroad;
e. An indemnification of a municipality as required
by ordinance;
f. An elevator maintenance agreement; or
g. That part of any other contract or agreement
pertaining to the "municipality's" business under
which you assume the tort liability of another to
pay "damages" because of "bodily injury",
"property damage" or "personal injury" to a third
person or organization, if the contract or
agreement is made prior to the "bodily injury",
"property damage" or "personal injury". Tort
liability means a liability that would be imposed
by law in the absence of any contract or
agreement.
A "covered contract" does not include that part of any
contract or agreement:
a. That indemnifies an architect, engineer or
surveyor for injury or damage arising out of:
(1) Preparing, approving or failing to prepare or
approve maps, drawings, opinions, reports,
surveys, change orders, designs or
specifications; or
18
(2) Giving directions or instructions, or failing
to give the same, if that is the primary
cause of the injury or damage;
b. Under which the "municipality's" architect,
engineer or surveyor, assumes liability for injury
or damage arising out of the "municipality's"
rendering or failing to render professional
services, including those listed in a. above and
supervisory, inspection or engineering services;
or
c. That indemnifies any person or organization for
damage by fire to premises rented or loaned to
you.
7. "Loading" or "unloading" means the handling of
property:
a. After it is moved from the place where it is
accepted for movement into or onto an aircraft,
watercraft or "auto";
b. While it is in or on an aircraft, watercraft or
"auto"; or
c. While it is being moved from an aircraft,
watercraft or "auto" to the place where it is
finally delivered;
but "loading" or "unloading" does not include the
movement of property by means of a mechanical device,
other than a hand truck, that is not attached to the
aircraft, watercraft or "auto".
8. "Mobile equipment" means any of the following types of
land vehicles, including any attached machinery or
equipment:
a. Bulldozers, farm machinery, forklifts and other
vehicles designed for use principally off public
roads;
b. Vehicles that travel on crawler treads;
c. Vehicles, whether self-propelled or not,
maintained primarily to provide mobility to
permanently mounted:
(1) Power cranes, shovels, loaders, diggers or
drills; or
19
(2) Road construction or resurfacing equipment
such as graders, scrapers or rollers;
d. Vehicles not described in a., b., or c. above that
are not self-propelled and are maintained
primarily to provide mobility to permanently
attached equipment of the following types:
(1) Air compressors, pumps and generators,
including spraying, welding, building
cleaning, geophysical exploration, lighting
and well-servicing equipment; or
(2) Cherry pickers and similar devices used to
raise or lower workers;
e. Vehicles not described in a., b., or c. above
maintained primarily for purposes other than the
transportation of persons or cargo.
9. "Occurrence" means an accident, including continuous or
repeated exposure to substantially the same general
harmful conditions.
10. "Personal injury" means injury, other than "bodily
injury" arising out of one or more of the following
offenses:
a. False arrest, detention, or imprisonment, or
malicious prosecution;
b. The publication or utterance of a libel or slander
or other defamatory or disparaging material, or a
publication or utterance in violation of an
individual's right of privacy; except publication
or utterances in the course of or related to
advertising, broadcasting or telecasting
activities conducted by or on behalf of the
"covered party";
c. Wrongful entry or eviction, or other invasion of
the right of private occupancy;
d. Assault or battery committed for the purpose of
protecting persons or property or incident to an
arrest;
11. a.
"Products-completed operations hazard" includes
all "bodily injury" and "property damage"
occurring away from premises you own or rent and
arising out of "your product" or "your work"
except:
20
(1) Products that are still in your physical
possession: or
(2) Work that has not yet been completed or
abandoned.
11. b.
"Your work" will be deemed completed at the
earliest of the following times:
(1) When all of the work called for in your
contract has been completed:
(2) When all of the work to be done at the site
has been completed if your contract calls for
work at more than one site:
(3) When that part of the work done at a job site
had been put to its intended use by any
person or organization other than another
contractor or subcontractor working on the
same project.
Work that may need service, maintenance,
correction, repair or replacement, but which is
otherwise complete, will be treated as completed.
12. "Property damage" means:
a. Physical injury to tangible property, including
all resulting loss of use of that property: or
b. Loss of use of tangible property that is not
physically injured.
13. "Suit" means a civil proceeding in which "damages"
because of "bodily injury", "property damage" or
"personal injury" to which this coverage applies are
alleged. "Suit" includes an arbitration proceeding
alleging such "damages" to which you must submit or
submit with our consent. "Suit" does not mean any
criminal proceeding against any "covered party".
14. "Your product" means:
a. Any goods or products, other than real property,
manufactured, sold, handled, distributed or
disposed of by:
(1) You:
(2) Others trading under your name: or
21
(3) A person or organization whose business or
assets you have acquired; and
b. Containers (other than vehicles), materials, parts
or equipment furnished in connection with such
goods or products.
"Your product" includes warranties or representations
made at any time with respect to the fitness, quality,
durability or performance of any of the items included
in a. and b. above.
"Your product" does not include vending machines or
other property rented to or located for the use of
others but not sold.
15. "Your work" means:
a. Work or operations performed by you or on your
behalf; and
b. Materials, parts or equipment furnished in
connection with such work or operations.
"Your work" includes warranties or representations made
at any time with respect to the fitness, quality,
durability, or performance of any of the items included
in a. or b. above.
SECTION V - SUPPLEMENTARY PAYMENTS - COVERAGES A, C, 0, & E
We will pay, with respect to any claim or "suit" we defend:
1. All expenses we incur.
2. Up to $250 for cost of bail bonds required because of
accidents or traffic law violations arising out of the
use of any vehicle to which the "bodily injury"
liability coverage applies. We do not have to furnish
these bonds.
3. The cost of bonds to release attachments, but only for
bond amount within the applicable limit of coverage.
We do not have to furnish these bonds.
4. All reasonable expenses incurred by the "covered party"
at the Pool's request, to assist it in the
investigation or defense of the claim or "suit",
including actual loss of earnings up to $100 a day
because of time off from work.
22
5. All costs taxed against the "covered party" in the
"suit".
6. Prejudgment interest awarded against the "covered
party" on that part of the judgment we pay. If we make
an offer to pay the applicable limit of coverage, we
will not pay any prejudgment interest based on that
period of time after the offer.
7. All interest on the full amount of any judgment that
accrues after entry of the judgment and before we have
paid, offered to pay, or deposited in court the part of
the judgment that is within the applicable limits of
coverage.
SECTION VI - CONDITIONS
A. COMMON CONDITIONS
All coverage parts included in this Appendix A are subject to
the following conditions:
1. CANCELLATION AND NON-RENEWAL
a. The first "municipality" shown in the Declarations
may cancel this Appendix A by mailing or delivering
to the Pool advance written notice of
cancellation.
b. The Pool may cancel this Appendix A by mailing or
delivering to the first "municipality" written
notice of cancellation at least:
(1) 10 days before the effective date of the
cancellation if the Pool cancels for
nonpayment of premium; or
(2) 30 days before the effective date of the
cancellation if the Pool cancels for any
other reason.
c. The Pool will mail or deliver its notice to the
first "municipality's" last mailing address known
to the Pool.
d. Notice of cancellation will state the effective
date of cancellation. The coverage period will
end on that date.
23
e. If notice is mailed, proof of mailing will be
sufficient proof of notice.
f. With respect to the cancellation or non-renewal of
this Appendix A the terms and conditions of the
Intergovernmental Agreement apply notwithstanding
any terms or conditions of this Appendix A to the
contrary.
2. CHANGES
This Appendix A contains all the agreements between the
Pool and you concerning the coverage afforded. The
first "municipality" shown on the Declarations is
authorized to make changes in the terms of this
coverage agreement with the consent of the Pool. The
coverage terms can be amended or waived only by
endorsement issued by the Pool and made a part of this
Appendix A or by acknowledgement by the Pool that an
endorsement will be issued at a later date.
3. EXAMINATION OF YOUR BOOKS AND RECORDS
The Pool may examine and audit your books and records
as they relate to this Appendix A at any time during the
coverage period, and up to five (5) years afterward and
accordingly make any necessary adjustments in premium.
4. INSPECTIONS AND SURVEYS
The Pool has the right but is not obligated to:
a. Make inspections and surveys at any time;
b. Give the "municipality" reports on the conditions
it finds;
c. Recommend changes.
Any reports, or recommendations relate only to coverage
and the premiums to be charged. The Pool does not make
safety inspections. The Pool does not undertake to
perform the duty of any person or organization to
provide for the health or safety of workers or the
public. The Pool does not warrant that conditions:
a. Are safe or healthful;
b. Comply with laws, regulations, codes, or
standards.
24
This condition applies not only to the Pool, but also
to any rating advisory, rate service or similar
organization which makes inspections, surveys, reports,
or recommendations.
5. PREMIUMS
The first "municipality" shown on the Declarations:
a. Is responsible for the payment of all premiums;
b. Will be the payee for any return premiums.
6. TRANSFER OF "MUNICIPALITY'S" RIGHTS AND DUTIES UNDER
THIS APPENDIX A.
The "municipality's" rights and duties under this
Appendix A may not be transferred without the written
consent of the Pool.
7 . OVERLAP OF COVERAGE
In the event of a dispute between the Pool and one or
more insurers as to which policy or coverage agreement
applies to a covered loss, the Pool shall indemnify the
"municipality" for any legal or other expenses which
are necessarily incurred by the "municipality" in
determining whether the Pool or the insurer(s) shall
bear the loss. Such indemnification shall be made only
if it is determined that payment of the loss shall be
made under this Appendix A. If the loss is shared by the
Pool and one or more insurers, indemnification shall be
made in the same proportion as the loss payment. The
"municipality" and the Pool shall cooperate in the
development and execution of reasonable procedures to
resolve the dispute.
8. WAIVER OF IMMUNITY
By accepting coverage from the Pool, the "municipality"
does not waive any statutory or common law immunity
from or limitation on liability.
9. DEDUCTIBLES
The Pool shall be liable to the "municipality" or to
others on behalf of the "municipality" only to the
amount of "damages" in excess of any deductible
amounts.
25
"Damages" include any legal defense costs, loss
adjustment expense and claims costs if indicated on the
Common Declaration page as included.
The terms of the Appendix A, including those with respect
to (a) the Pool's rights and duties with respect to the
defense of suits and (b) the "covered party's" duties,
in the event of an occurrence, apply irrespective of
the application of the deductible amount.
The Pool may pay any part or all of the deductible
amount to effect settlement of any claim or suit and
upon notification of the action taken, the first
"municipality" shall promptly reimburse the Pool for
such part of the deductible amount as has been paid by
the Pool.
10. ASSESSABILITY
All "municipalities" in the Pool are jointly and
severally liable for all claims and expenses of the
Pool. The amount of any liabilities in excess of
assets may be assessed to the members of the Pool when
a deficiency is identified as provided in the
Agreement.
11. SEPARATION OF BENEFICIARIES
As respects the particulars and statements contained in
the application for this coverage and the exclusion set
forth herein, this coverage shall be construed as a
separate agreement with each "covered party". Nothing
in this paragraph shall be construed to increase the
Pool's maximum liability as set forth in the
Declarations.
12. NUCLEAR HAZARD
The Pool under this Appendix A does not cover any loss or
claim for damage that is caused in part or in total by
nuclear reaction or radiation, or radioactive
contamination, however caused.
13. CONCEALMENT OR FRAUD
This Appendix A is void if any "covered party" has
intentionally concealed or misrepresented any material
fact or circumstance relating to this Appendix A.
26
B. LIABILITY COVERAGE CONDITIONS
In addition to the common conditions, Liability Coverage
Parts A, C, D, and E are subject to the following
conditions:
1. THE POOL'S DUTY TO DEFEND AND/OR INDEMNIFY
The Pool's duty to pay on behalf of or to indemnify a
"covered party" other than the "municipality" shall not
apply to any act, error or omission:
a. Which constitutes malfeasance in office; or
b. Which constitutes willful and wanton neglect of
duty; or
c. Which constitutes dishonesty on the part of a
"covered party"; or
d. Which constitutes the willful violation of a
statute or ordinance by any official, employee, or
agent of the "municipality".
2. FINANCIAL RESPONSIBILITY LAW
When this Appendix A is certified as proof of financial
responsibility for the future under the provisions of
any motor vehicle financial responsibility law, such
coverage as is afforded by this Appendix A for "bodily
injury" liability or for "property damage" liability
shall comply with the provisions of such law to the
extent of the coverage and limits of liability required
by such law.
3. "COVERED PARTY'S" DUTIES IN THE EVENT OF OCCURRENCE,
CLAIM OR SUIT
a. In the event of an "occurrence, claim or suit"
notice containing particulars sufficient to
identify the "covered party" and also reasonably
obtainable information with respect to the time,
place and circumstances thereof, and the names and
addresses of the injured and of available
witnesses, shall be given by or for the "covered
party" to the Pool or any of its authorized agents
as soon as practicable. The "municipality" shall
promptly take at its own expense all reasonable
steps to prevent additional "bodily injury" or
"property damage" from arising out of the same or
27
similar conditions at the same location where the
initial "bodily injury" or "property damage"
occurred.
b. If claim is made or suit is brought against the
"covered party", the "covered party" shall
immediately forward to the company every demand,
notice, summons or other process received by him
or his representative.
c. The "covered party" shall cooperate with the Pool
and, upon the Pool's request, assist in making
settlements, assist in the conduct of suits and
assist in enforcing any right of contribution or
indemnity against any person or organization who
may be liable to the "covered party" because of
"bodily injury" or "property damage" with respect
to which coverage is afforded under this Appendix A;
and the "covered party" shall attend hearings and
trials and assist in securing and getting evidence
and obtaining the attendance of witnesses. The
"covered party" shall not, except at his own cost,
voluntarily make any payment, assume any
obligation or incur any expense other than for
first aid to others at the time of accident.
d. A claim by any person or organization seeking
"damages" will be deemed to have been made when
notice of such claim is received and recorded by
the "municipality" or by the Pool whichever comes
first.
All claims for "damages" to the same person or
organization as the result of an "occurrence" will
be deemed to have been made at the time the first
of those claims is made against the "covered
party".
4. EXTENDED REPORTING PERIOD
Upon termination of this Appendix A by you or by
cancellation or non-renewal by us for any reason other
than non-payment of premium, you may elect to have an
endorsement issued providing for an extended reporting
period of three years following the effective date of
termination or expiration of this Appendix A.
A claim first made during the extended reporting period
will be deemed to have been made on the last day of the
coverage period, provided that the claim is for
28
"damages" because of "bodily injury", "property
damage", "personal injury", or errors or omissions loss
caused by an "occurrence" before the end of the
coverage period, but not before the retroactive date,
if any, shown in the Declarations.
The extended reporting period will not reinstate or
increase the limits of liability or extend the coverage
period.
We will issue the extended reporting period endorsement
only if:
a. You request it in writing within 60 days after the
end of the coverage period; and
b. You promptly pay the additional premium when due,
as may be required by the Pool's rules, rates and
rating plans then in effect and shall not be less
than 20% of the expiring premium.
The extended reporting period endorsement will not take
effect unless the additional premium is paid when due.
If that premium is paid when due, the endorsement may
not be cancelled.
5. RETROACTIVE DATE
With respect to Coverage A, this Appendix A does not
apply to "bodily injury" or "property damage" which
occurred before the retroactive date shown in the
Declarations.
With respect to Coverage C, this Appendix A does not
apply to "damages" resulting from any offense which
occurred prior to the retroactive date shown in the
Declarations.
With respect to Coverage D, this Appendix A does not
apply to "damages" resulting from any negligent act,
error or omission which occurred prior to the
retroactive date shown in the Declarations.
6. ACTION AGAINST THE POOL
No action shall lie against the Pool unless as a
condition precedent thereto, there shall have been full
compliance with all of the terms of this Appendix A, nor
until the amount of the "covered party" obligation to
pay shall have been fully determined either by judgment
29
against the "covered party" after actual trial or by
written agreement of the "covered party", the claimant
and the Pool.
Any person or organization or the legal representative
thereof who has secured such judgment or written
agreement shall thereafter be entitled to recover under
this Appendix A to the extent of the coverage afforded by
this Appendix A. No person or organization shall have
any right under this Appendix A to join the Pool as a
party to any action against the "covered party" to
determine the "covered party's" liability, nor shall
the Pool be impleaded by the "covered party" or his
legal representative. Bankruptcy or insolvency of the
"covered party" or of the "covered party's" estate
shall not relieve the Pool of any of its obligations
hereunder.
~
7. OTHER INSURANCE
The Pool's duty to defend, pay and/or indemnify shall
not apply to any claim or claims that are insured under
a valid insurance policy or other coverage document.
30
APPENDIX B
B YLA WS
OF THE
STATE OF ARIZONA MUNICIPAL RISK RETENTION POOL
An Arizona Nonprofit Corporation
ARTICLE I
OFFICES
The State of Arizona Municipal Risk Retention Pool ("Pool") shall have its principai
place of business In Phoenix, Arizona, and in addition, may have offices at such
places within the State of Arizona, as the Board of Trustees ('"Board") may from
time to time determine are necessary for the proper conduct of the Pool business.
ARTICLE D
MEM8ERS
Section 1. The memben of this corporation shall be those cities and towns in the
St. te of Arizona who execute all necessary documents and make such paymenu as
are required to become participants in the Pool.
Section 2. The annual meeting of the members shall be held in the month of July,
commencing In 1988, at a time and place specified by the Board, with notice as to
time, place and agenda liven as required by the Arizona Open Meetin, Law
regulations.
Section ,. The number of votinl Trustees shaU be not less than five nor more than
nine, and may be fixed by the Board within the limits prescribed by the
Intergovernmental ^,reement between the State of Arizona through its
Department of AdminJstration and the members of the POol ("Intergovernmental
Agreement"). The members shaH elect the Trustees at the annual meetinl of the
members, and each Trustee elected shall hold office untU his successor is elected
and qualifies, provided that the Assistant Director for Risk Management of the
Arizona Department of Administration ("Assistant Director") shaU automatically
be a member of the Board. In the event no person holds the office of Assistant
Director, the Director of the Arizona Department of Administration shall
automatically become a member. If there b no Director, the Acting Director or a
Senior Assistant Director shall become a member in the place and Itead of the
Di rector. The State Trealurer. or his designee, shall be an ex offielo, non-voting
me mber of the Board.
ARTICLE m
TRUSTEES
Section I. Any Trustee may resign at any time upon written notice to the other
Trustees, and a Trustee shaH forfeit office upon being .bsent from three
consecutive regular meetings of the Board. The initial Board 5hall consist of the
Current officers and past president of the League of Arizona Cities and Towns and
the Assistant Director for Risk Management of the Arizona Department of
Administration.
Section 2. Except for the Assistant Director, vacancies created by death,
resignation, removal or ceasing to b~ qual~fied ,by, reason of no 10~ger being an
elected official or employee of a pubhc entlty wlthan the State of Anzona, may be
filled by a rnalority of the Trustees then in office, though less than a quorumj and
tne Trustees SO chosen shall hold office until the next annual election and until
their successors are duly elected and shaU qualify.
MEETINGS OF THE BOARD OF TRUSTEES
Section 3. The Board of Trustees of the Pool may hold meetings, both regular and
special, within the State of Arizona. Meetings may be held by means of conference
telephone or other similar communications equipment by means of which all
persons par ticipating in the meeting Can hear each other, and provisions shall be
made for all those attending such meeting to hear all persons participating_
Participation in a meeting pursuant to such communication shall constitute
presence in person at such meeting.
Section 4. The Annual Meeting of the Trustees and Pool participants shall be held
in the month of luly commencing in 1918.
Section ,. Regular meetings of the Board wUl be held at a time specified by the
board of trustees, with notice as to time, place and agenda pro'lided as required by
Arizona law.
ection 6. Special meetings of the Board may be called by the chairperson and
shall e called by the chairperson upon request of two members of the Board.
Notice of special meetings of the Board shall be given to each Trustee before the
tirne of the meeting and shall contain such information about time, place and
agenda as is required by Arizona law.
Section 7. At all meetings of the Board, a majority of the total number of Trustees
shall constitute a quorum for the transaction of business, and the act of a majority
of the Trustees present at any meeting at which there is a quorum shall be the act
of the 80ard of Trustees, except as may be otherwise specifically provided by
statute or the Intergovernmental Agreement or these Bylaws. No Trustee may be
represented or vote by proxy. 11 a quorum is not present at any meeting of the
Board, the Trustees present may, consistent with Arizona law, recess the meeting
from time to time until a quorum shall be present. At such resumed meeting at
which a quorum is eventuatly present, any business may be transacted which might
ha.,e been transacted at the meeting originally noticed.
COMMITTEES Of DIRECTORS
Section 8. The 80ard may, by resolution, designate one or more committees. Each
such committee shall consist of two or more of Trustees and, to the extent
provided in the resolution and subject to the Il"\tergovernmental Agreement and
applicable law, shall have and may exercise the powers of the Board of Trustees In
the management of the business and affairs of the Pool. Such committees shall
have such names as may be determined from time to tirne by resolution of the
Board of Trustees.
Section 9. Committees shall com pI)' with Arizona open meeting laws, shall keep
regular minutes of their proceedings and shall report their proceedings to the 80ard .
when required.
Rf:.aMBURSEMENT OF TRUSTEES' EXPI;.. ..>ES
Section 10. By resolution of the Board a Trustee may be reimbursed for his
expenses incurred in attending meetings of the Board and performing ot~er
authorized services as a Trustee. A Trustee shall not be precluded from servang
the pool In any other capacity and receiving compensation therefor. Members ~f
committees established by the Board may be reimbursed for expenses incurred m
serving on such committees and.attending committee meetings if those expenses
are not reimbursed to them by 4"other public agency.
ARTICLE IV
NOTICES TO TR US TEES
Section 1. Except as otherwise provided herein, notices to the Trustees may be by
telephone or telegram, or in writing and delivered personally or mailed to the
Trustees at their addresses appearing on the books of the Pool. Notice by mail
shall be deemed to be gIven three days after the time when the same shall be
mailed postage prepaid to such addresses.
Section 2. Any individual notice required to be liven under the provisions of
applicable law or of the Intergovernmental Agreement or of these Bylaws may be
waived in writing either before or after the event requiring such notice, provided
such waiver 15 signed by the person or persons entitled to said notice.
ARTICLE V
OFFICERS
Section 1. The Board at its first meeting following the Annual Meeting, or
thereafter pursuant to unanimous consent, shall choose from among the elected
Trustees a chairperson, vice chairperson and secretary to serve for twelve months.
The vice chairperson shall preside at meetings in the absence of the chairperson.
S!!ction 2. The day-to-day business of the Pool shall be managed by the Assistant
Director, who may exercise aU the powers of the Pool and do such lAWful acts and
things as are permitted by Arizona law, by the Intergovernmental Agreement and
by these Bylaws, and who shall execute the decisions of the Board. He shall be ex
officio a member of all committees and shall have leneral management of the
business of the Pool.
Section ). The Board may appoint such other officers and agents as it shall deem
necessary, who shall hold office for such terms and shall exercise such powers and
perform such duties as shaU be determined from time to time by the Board.
Section 4. Any officer elected or appointed by the Board may be removed
whenever 1n the Trustees' judgment the best interest of the Pool will be served by
the removal. However such removal shall be without prejudice to the contract or
employment rights, if any, of the person removed. Any vacancy occurring in any
offace of the pool by death, resignation, removal or otherwise shall be filled by the
Board of Trustees.
ARTICLE VI
GENERAL PROVISIONS
CHECKS
Section 1. All checks or demands for money and notes of the Pool shall be signed
by such Designated Representative and such other person as the Board may from
time to time designate.
INSPECTION OF BOOKS
Section 2. The books, records and papers of the Pool shall be avallable at the
principal offices of the Pool for inspection at reasonable times by any person as
may be required by Arizona law. The Intergovernmental Agreement and 8ylaws of
the Pool shall likewise be available for lnspectioni.by any person at the principal
offices of the Pool.
AMENDMENTS
Section l. These Bylaws may be amended by a majority yote of the Board of
Trustees after notice to the members of the pool. Such notice shall be mailed to
all members at least 30 days in advance of Board action.
INTERPRET A nONS
Section If. To the extent permitted by the COntext in which used, words In the
singular number shall include the plural, words In the masculine lender shal1
include the feminine and neuter and yice versa.
Section 50 Captions used herein are for convenience only and are not a part of
these Bylaws and shall not be deemed to limit or alter any provisions hereof and
shaJJ not be deemed relevant In construing these Bylaws.
Date: /.) A(.L8 b7
. 198_
~'
'Ii {t~&c1~
uistant Director for Risk
\4anagement Arizona Department
of Administration
~1~;~i'/~
!; ember, rCf'of T es
Member, Board of Trustees
PROPOSfD
AMENDMENT TO THE B YLA WS
OF
STAT! Of ARIZONA MUNICIPAL RISK RETENTION POOL
ARTICL! VW
IMMUNITY OF TRUSTEES
The perlOnal U.billty of a trustee of the State of Arizona Municipal Risk Retention
Pool to the Arizona Municipal Risk Retention Pool or iu members for monetary
damalel for breach of fiduciary duty as a trustee Is eliminated to the extent
provided by A.R.S. Sections 10.100' and 10-1029 and amendments thereto.
No repeal or modification of the foreloinl paralraph by the member. of the State
of Arizona Munic:1pal Rilk Retention Pool shall adversely affect any rilM or
protection of a trustee exlltina at the time of such repeal or modification.
...
PROPOSED
AMENDMENT TO THE BYLAWS
OF
STATE OF ARIZONA MUNICIPAL RISK RETENTION POOL
ARTICLE VII
INDEMNIFICA TION OF MEMBERS, TRUSTEES,
OFfICERS. ~MPLOYEES AND ACENTS
To the fullelt extent permitted under the law, members, trustees, officers.
employees, or alents of the State of Arl~ona Municipal RIsk Retention Pool shall
be indemnified by the State of Arizona Municipal Risk Retention Pool in
accordance with the provisions of A.R.S. Section 10-100', as the ame exists or
may hereafter be amended.
, ,
~
APPENDIX C
ARIZONA MUNICIPAL RISK RETENTION POOL
LOSS CONTROL PROGRAM STANDARDS FOR MUNl;CIPALITIES
A. DEFINITIONS
The following definitions shall apply for purposes of this
Appendix C unless the context otherwise requires:
1. "Municipality" means that entity including all covered
parties named in Section 1 of the Agreement.
2. "Air Pollution" has the meaning of A.R.S. 36-771(3).
3. "Assistant Director" means the assistant director for
the Risk Management Division of the Department of
Administration.
4. .Confined Space" means a space which by design has:
a. limited openings for entry and exit;
b. unfavorable natural ventilation that may contain or
produce air contaminants; and
c. that is not intended for continuous employee
occupancy. Confined Spaces include, but are not
limited to, storage tanks, process vessels, pits,
silos, vats, degreasers, reaction vessels, boilers,
ventilation and exhaust ducts, sewers, tunnels,
underground utility vaults and pipelines.
5. "Health Hazard" means a material for which there is
statistically significant evidence based on at least one
~~1
study conducted in accordance with established scientific
principles that acute or chronic effects may occur in
exposed employees. The term "Health Hazard" includes
materials which are radioactive, infectious,
carcinogenic, toxic, irritants, corrosive, sensitizers
and agents which damage the lungs, skin, eyes, mucous
membranes and other body organs.
6. "Incident" means an occurrence or event including, but
not limited to, an occupational injury or illness, fire,
theft, damage to Municipal property and all accidents
involving the Municipality and the public and/or their
property.
7. "Land Contamination" means the chemical, biological or
radioactive alteration of land.
8. "Material Safety Data Sheet" means written or printed
materials concerning a hazardous chemical which is
prepared in accordance with 29CFR Part 1910.1200(g).
9. "Personal Protective Equipment" means clothing or
equipment that a person wears to protect himself against
harm to any part of his body.
10. "Water Pollution" has the meaning of A.R.S. Section
36-1851(13) .
B. ESTABLISHMENT OF LOSS CONTROL PROGRAM
1. Each Municipality shall prepare and issue a written loss
control policy statement setting forth the Municipality's
commitment to prevent losses and support safety and loss
2.
control activities. The policy statement shall be made
available to all Municipal personnel for review.
2. Each Municipality shall appoint an employee or an
employee committee to develop and implement a loss
control program. The program shall be submitted to the
Assistant Director for review and approval within 12~
days of the effective date of the Agreerent.
3. Each Municipality shall review its loss control program
annually and make any necessary changes to improve the
overall effectiveness of the program. Any changes shall
be immediately submitted to the Assistant Director.
C. MANDATORY LOSS CONTROL PROGRAM PROVISIONS
Each loss control program shall include the following:
1. Loss control responsibilities and standards as a part of
an employee's performance planning and evaluation
reports, if the job description or actual duties of the
employee include loss control responsibilities.
2. A safety and loss control education and training program
which shall emphasize training on safe methods and
procedures to follow while performing tasks where
frequent or severe accidents have occurred or where there
is a potential for frequent and severe accidents.
Minimum required training shall include:
a. Identification of risks associated with jOb
perfornlance.
3.
b. Procedures for working safely and avoiding accidents.
c. Accident/Incident reporting procedures.
d. Emergency and evacuation procedures.
3. An emergency plan for each Municipality location. The
plan shall include procedures to follow in the event of
serious injury, fire or other emergencies that can be
reasonably foreseen at the specific Municipal location.
Provisions shall be made for the following items:
a. Designating employee(s) responsible for formulating,
implementing, testing and maintaining the emergency
plan.
b. Establishing written procedures for notification of
emergency personnel and safe evacuation of people.
Evacuation diagrams shall be posted throughout each
location.
c. Training employees as to their responsibilities
during an emergency. Additional training shall be
given to those employees assigned to use fire and
emergency equipment.
d. Providing or arranging for first aid, medical
treatment and emergency transportation in the event
of a serious injury.
4. Procedures for routine safety inspections of buildings,
grounds, equipment, machinery and work practices.
Results of all inspections shall be cocumented and
deficiencies noted shall be forwarded to appropriate
4.
Municipal management personnel for corrective action.
FOllow-up on inspection recommendations shall be made to
ensure action is being taken to remedy any noted
deficiencies.
5. Procedures for the investigation, reporting and records
maintenance of work related Incidents including:
a. Timely and accurate reporting of all work related
Incidents.
b. Investigations of all Incidents in order to 9ather
pertinent information, determine causes and recommend
solutions to prevent recurrences of similar
Incidents.
c. Compilation, analysis and evaluation of all Incident
data to determine the frequency, severity and
location of Incidents and communication of the
information to appropriate n~nagernent personnel.
d. Maintenance of records of employee injuries pursuant
to A.A.C. R4-l3-63l.
D. In addition to the provisions set forth in subsection C of
this Appendix C, each Municipality with 100 or more employees
shall include, and each Municipality with less than 160
employees may include, the following provisions in their loss
control programs wherever applicable:
5.
1. Establish an industrial hygiene program that includes:
a. Surveys of Municipal facilities to determine
exposures to existing or potential Health Hazards.
b. Periodic monitoring of the workplace to quantify
exposure to existing or potential Health Hazards.
c. Notification of employees of existing or potential
Health Hazards.
d. Necessary controls and personal protective equipment
to prevent exposures to Health Hazards in excess of
Arizona Department of Occupational Safety and Health
Standards.
e. Maintenance of Material Safety Data Sheets.
2. Establish an environmental protection program which
includes:
a. Identification of equipment, processes and practices
that may cause Air Pollution, Water Pollution or Land
Contamination.
b. Establishing a plan to ensure compliance with all
applicable local, state and federal environmental
laws and regulations.
c. Developing procedures and processes to prevent or
control emissions and discharges in excess of local,
state and federal laws and regulations.
6.
3. Establish and implement maintenance and operational
procedures including:
a. A preventive maintenance program including a written
schedule of routine inspection, adjustment, cleaning,
lubrication and testing of equipment including, but
not limited to, boilers and machinery, fire
protection, security and emergency equipment.
b. Safety procedures for jobs subject to serious
accidents including, but not limited to:
i. Working in confined spaces
ii. Operating dangerous equipment and machinery
iii. Working on electrical equipment
c. Personal Protective Equipment requirements for
specific jobs and areas. This is to include training
employees and other relevant persons in the purpose,
proper fit, use, care, maintenance, inspection,
cleaning and storage of all Personal Protective
Equipment applicable to their jobs.
4. Establish a motor fleet safety program for employees
operating a Municipal vehicle including:
a. Standards to ensure that employees who drive
Municipal vehicles are capable of operating a vehicle
in a safe manner.
b. Instruction in safe vehicle operation and defensive
driving techniques.
c. Mandatory use of seat belts on those vehicles
designed with seat belts.
7.
d. Maintenance of all vehicles in a safe operating
condition.
e. Review of vehicular accidents by a committee
appointed by the Municipality.
5. Establish safety and security standards for construction
sites including:
a. Cite specific safety rules and procedures to deal
with the types of risks expected to be encountered on
the site.
b. Routine inspections of construction sites to ensure
compliance with applicable federal, state and local
safety laws and regulations.
c. Training of employees and other relevant persons in
safe practices and procedures.
d. Availability of first aid, medical and emergency
equipment and services at the construction site
including arrangements for emergency transportation.
e. Security procedures to prevent theft, vandalism and
other losses at the construction site.
6. Establish systems and procedures to protect the personal
security of eroployees and to prevent loss of ~unicipal
property. Systems and procedures may include but are not
limited to:
a. Security escorts, exterior lighting, identification
badges and electronic access systems for protection
of employees.
8.
b. Labeling systems, inventory control procedures,
property removal procedures and key control systems
to prevent loss of Municipal property.
c. Building and ground security systems such as alarm
systems, electronic surveillance, perimeter fencing
and security patrol services to prevent theft and
vandalism of Municipal property.
E. MUNICIPALITY LOSS CONTROL PROGRAM AUDIT
In order to evaluate the effectiveness of the Municipality's
loss control plan, the Assistant Director shall conduct a
loss control program audit of each Municipality employing
more than lee people. The audit shall take place with such
frequency as the Assistant Director deems necessary, but in
no case less often than biannually. Following an audit, the
Assistant Director shall submit a written report to each
Municipality giving his evaluation of the operation of the
Municipality's plan along with his recommendations for
change. As part of the audit, the Assistant Director may
perform an inspection of the Municipality and may document in
the audit report observations of conditions which may
contribute to or result in a loss, along with recommendations
for avoiding similar losses in the future.
F. EXCEPTION FRON REQUIREHENTS OF LOSS CONTROL PROGRA~1
1. In special circumstances and for good cause shown, the
Assistant Director may exempt a l1unicipality from all or
any part of the requirements of this Appendix C.
9.
2. Requests for an exemption shall be made in writing to the
Assistant Director setting forth the grounds for
exemption. The Assistant Director shall base his
decision to grant or deny the request for exemption upon
the following:
a. The size of the requesting Municipality.
b. The need for the loss control program or portions
thereof in the requesting Municipality.
c. The cost versus the benefits that may be reasonably
expected to be derived from the loss control program.
d. The potential property, liability and workers'
compensation exposures of the Municipality.
e. Any other criteria which the Assistant Director
reasonably believes to be relevant.
3. The Assistant Director shall grant or deny the exemption
in writing stating the reasons therefore. The exemption
shall be for a specified period of time, not to exceed
two years. At the end of such time any exemptions shall
automatically expire, unless the Municipality has made
written application to the Assistant Director for an
additional extension at least thirty days prior to the
expiration date, in which case the expiration shall be
postponed pending the Assistant Director's decision to
grant or deny the additional exemption.
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APPENDIX D
ARIZONA MUNICIPAL RISK RETENTION POOL
DUTIES OF THE STATE TREASURER
1. Duties of the State Treasurer
-------------------------------
1.1. The Office of the State Treasurer, hereinafter referred
to as the RTrusteeR, shall hold, administer and invest
all sums paid to it by the Pool Administrator in
accordance with the provisions of this Agreement. All
contributions so received shall hereinafter be referred
to as the Rpool" and shall be held, administered and
distributed by the Trustee pursuant to the terms of the
Agreement and without liability for the payment of
interest thereon.
1.2. The Trustee shall receive any contribution paid to the
Administrator for deposit to the Pool by the
Municipality. Upon receipt, the Trustee shall issue
the depositor a validated receipt for the amount of the
deposit and shall provide a copy of the receipt to the
Administrator.
1.3 The Trustee shall make payments from the Pool at the
direction of the Administrator in accordance with the
requirements provided for in the Agreement.
Payments shall be made in such amount as may be
specified in written directions from the Administrator
or his authorized representative. The Trustee shall
not be liable for any payment made pursuant to written
directions from the Administrator or his authorized
representative.
1.4. The duties and obligations of the Trustee acting as
Trustee hereunder shall be strictly limited to those
expressly imposed upon the Trustee by this Appendix D
and by applicable law. The exercise by the Trustee of
any express or implied discretion pursuant to this
Appendix D shall be conclusive and binding upon all
persons whomsoever, but the Trustee shall have the
right to reconsider and redetermine such actions. The
Trustee shall not be liable for the proper distribu-
tion of any part of the Pool fund if distributions are
made in accordance with written directions from the
Administrator.
INTEREST EARNINGS
2. !~!~~~-~t_~~E~l~~
2.1. Any income from monies deposited in the Pool shall be
deposited to the Pool on a monthly basis as soon as
practicable following the end of the month.
2.
.. .
2.2. Income on monies of the Pool shall be calculated and
paid in the same manner as provided monies held by the
Trustee pursuant to Section 35-326, Arizona Revised
Statutes, as it may be amended from time to time.
2.3. The Trustee shall invest the assets of the Pool in any
security authorized for investment pursuant to Arizona
Revised Statutes Title 35, Chapter 2, Article 2 and
commingled funds maintained by the Trustee which are
oriented towards such investments.
ACCOUNTING
3 · ~22P.!l_~t)~.Il9
3.1. The Trustee shall maintain records and accounts of all
investments, receipts and disbursements. Such records
of the Trustee shall be open to the inspection of the
Municipality and the Administrator or their authorized
representatives at all reasonable times. As soon as
possible following the close of each month, the Trustee
shall provide a statement of activities, including
deposits, disbursements and earnings and a statement of
the balances of the Pool to the Administrator.
JFMUNPl
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