HomeMy WebLinkAbout1989 Resolution No. 009·'
RESOLUTIOM NO . </
-Series of 1989 -r--
A RESOLUTION AMENDING THE 1989 BUDGET .
WHEREAS , the City Council of the Ctty of Englewood , Colorado , desires to
make certain changes to the 1989 Budget :
NOW , THEREFORE, BE IT RESOLVED, by the Ci ty Council of the City of
Eng 1 ewood, co 1 orado, as fo 11 ows :
Sect ion I. The fo 11 owing estimated revenues and chang es in appropriat ton
1 s hereby miae7nthe 1989 General Fund budget :
Source of Funds
Genera 1 Fund Ba lance
~lication of Funds
llo l'kers I Compensat 1 on Insurance
$127 ,000
$127 ,000
Se.ti on 2. The following estimated revenues and changes tn appropriat io n
is hereby madeTnthe 1989 Water Fund budget :
Source of Funds
Water Fund Balance
Application of Funds
Workers' Compensat ton Insurance
6,800
6,800
Section 3 . The , o 11 owing estimated reven ues and changes in appropriation
is hereby maaeTri"""the 1989 Sewer Fund bu dget :
Source of Funds
Sewer Fund Ba lance
Appl tcation of FJnds
Workers' Compensat i on InsJ ra nce
1,300
1,300
Section 4 . The following e timated revenues and changes i n appropriation
is herebymiae7nthe 198S Bi-City Joi nt Venture Fund budget :
Source of Funds
Bi-City Joint Ventul'e Fund Balance $ 28 ,100
Application of Funds
Work~r• s Compensation lr,surance $ 28 ,100
Sect ion S. The fo 11 owing est tmated revenues and changes tn approprt at ton
ts hereby made 1n the 1989 Internal Servtces Funds budget :
Source of Funds
Internal Servtces Funds Balance $ 4,200
Appl icatton of Funds
Workers I Compensat 1 on Insurance $ 4 ,200
Sectton 6. The City Manager arid Dtrector of Fina nce are hereby a~thortzed
to make tlieaocivech anges to the General Fund of the City of Englewood.
ADOPTED AND APPROVED th ts 6th day of February, 1989 .
I, Patricia H. Crow, Ctty Clerk of the City of Englewood , Colorado , do
hereby certify that the above and foregotng ts a true , accuratt and complete copy of A Resolution No . T ' Sertes of 1989. •
-:;) .. '-///1 . -✓~'lirfu c(ut .I/ (_ 't,h,
Patr cia H. Crow
COUNCIL COllNUNICATION
DATE AGENDA ITEN SUBJECT
January 26, 1989 11 (a) Workers ' Compensation Insurance • 1989
INITIATED BY Finance Departmnnt • Margaret L. t reeman , Acting Di rector
STAFF SOURCE Margaret Freeman , Acting Director of Finance
l ~•_I,!~
ACTION PROPOSED f:dopt an Ordinance Approving the Colorudo Intergovernmental
Risk Sharing Agency/Workers ' Compensation (CIRSA/WC) Intergovernmental Agreement
and Adopt a Resolution Amending the 1989 Budget .
BACKGROUND
As City Council was previously informed during budget retreat , premium costs for
workers ' compensation insurance have risen dramatically over the last two years . A
copy of the September 20 , 1988 memorandum is attached . Due to the 35 .66% costs in -
crease for 1988, budget for 1989 was increased by 49.3% over 1988 and 18 .5% over
1988 estimate.
Rate ~chedules and premium estimates were not made available to t he City by the
State Compensation Insurance Authority (SCIA) until the last week of December, 1988 .
An estimated 1989 premium costs was completed using data provided by SCIA. A 1989
contribution quotation for workers ' compensation was received from CI RSA/WC . The
two quotations are as follows :
CIRSA
SCIA
1989 Premium
$592,976
$673,752
1988 Budget pi ff to Budget
423,810
423,810
16?, 166
2~9,942
The estimated premium from the SCIA ts 155% greater than 1987 costs and 88% greater
than 1988 revised costs. SCIA rates by job classification increased for 1989 and
due to our claims/loss history there were no discounts offered for 1989 . SCIA
discounts have been :
-'87 '88 '89
State Fund Discount ffi ffi ffi
Experience Credit Modification 12" 2" 12"·Debit
Schedule Discount 12" 13" ~
Net discou11t 57" credit 48" credit 3% debit
If the City had received for 1989, the same discounts as applied in 1987, the 1989
estimated premium would hav~ be e,, 362 ,179 . For 1989, the City rece i ved no credits/
discounts and in fact, our .~per le nc~ m~~ification resulted in an increase of the
total premium .
The qu ol~t ion from C 'flt /v'!iL ,i f $592 ,976 incl udcs a mandatory surplus contri but i oo ~!
SJ8,939 . The City doo , t,.;.••• .11 equity interest in t he surplus as the surplus Is he
City's portion of the t tta' CIH SA/WC reserve mandated by law . Our true prem ium
costs of $574,037, after r,,;,uve ;, are approximately SI00,000 less than the SCIA
estimated premium .
The City is mandated to pr,i vide workers' comper,sation and CIRSA/WC is the least
expensive Jption availabl~ to the City. In order for the City to participate i n
CIRSA /WC , the City Counc i l must approve the bylaw s, intergove r nmental agreement and
management services agr~ement of Cl RSA/WC.
The total 1989 budget for all funds for workers' compensation insurance is $423,810 .
The total 1989 budget is $169,166 less than the $592,976 required for CIRSA /WC
premium and reserves . Additional budget requirements by fund are as follows :
Estimated
1989 Cl RSA/WC Budget 1/1/89 Fund
~ Costs Deficit Bai ance
General Fund $3 ' $445,147 $127,093 $1,600,000
Wate r Fund 17,230 24,076 6,846 12,500 ,000
Sew er Fund 3,480 4,862 1,382 5,000,000
Bi -City Joint Venture Fund 70,602 98 ,730 28,128 N/A
Golf Cou rse Fund 3,611 5,040 I ,429 335,000
Servicenter Fund JO , 529 14,706 4,177 150 ,000
Central Services Fund 304 415 111 140 ,000
$423,810 $592,076 $169,166
A I 989 budget re s olution appropriating funds ~rom the required fund s' fund balanc e
wi 11 be necessary for I 989 workers' compensation Insurance required costs . The
estimated J-1-89 fund balances are unaudited and are es timates only at this date .
Exp enditures for the Bi-City Joint Venture fund are appropriated from revenues
derived from the contributions from the Cit i es of Englewood and Lit t leton .
RECOMMENDATl111·'.
It is recommen c .~ by the Finance Department that the CIRSA/WC Bylaws,
Intergovernmental Agreement and Management Services Agreement be app roved and that a
I 989 budget resolution appropriating additional funds be approved .
H'EHORAHDUH
To : Peter Vargas, A:t Ing :-I cy Manager
Fr om :
Dato :
Margaret L. Freeman, ,1 c .\ng Director of Finance
September 20, 1988
Subject: Workers Compensation Insurance
The 1988 premium for the City's wor l.cr ~ compensation insurance carried with
the State Compensation Insurance Fur ', i ncreased by 35 .66 % for all funds o,er
the 198 7 premium costs . The increase f/a s $73,973 over 1988 budget for all
funds. Attachment A is a summary of co sts and budget projections for a 11
funds and Attachment B is a detail ~f cos ts for 1987 and 1988 and the budget
for 1989.
Workers compensation insurance prem i · ns are determined by multiplying the in-
di vi dua 1 emp 1 oyee gross sa 1 ary ~y the rate app 1 i cable to the work or industry
cl ass ifi cation . Rates range from SO . 30 per hundred of sa 1 ary for City Attor-
ney's office to $12 .49 per hundred of salary for street maintenance workers .
(Attachment C is the latest rate schedule from the State Compensa ';ion Fund.)
After calculation of the total premium, a state fund discount, an experi ence
credit modification discount and a schedule discount are each applied and a
total premium due is the result.
The actual dis:ounts have been:
State Fund Discount
Experience Credit Modification
Schedule Discount
1988
33 %
2%
13%
1987
33%
12%
12%
The combination of higher individual rates (approximately 18% increase) and
the 10% reduction in exper ie nce credit modification, resulted in the net in -
crease of workers compensation insurance premiums. Given the dramatic is -
crease in 1988 premi urns, budget for I 989 reflects an increa se of I 8 . 5% over
1988 estimate.
On Septemb~r 15, 1988, the City received billings for retrospective adjust-
ments for 1984 and 1987 premiums . The final adjustment for !984 is Sl,208 .00
and the adjustment for 1987 is $27,937.00. There should be no further in-
creased adjustment for 1987 . This tot a 1 cost of $29 ,145 .00 is to be paid in
1988 and is not included in the 2ttached 1988 estimate.
Attachment O is a memo from Co 11 een Caudi 11 that deta i 1 s the City's actua 1
experience since 1984. The majority of claims have been for neck and back
injuries and one option to reduce our costs would be to establish specific
employee training program(s) in an attempt to reduce such injuries.
Th~ City will be receivin g a preliminary estimate from CIRSA for workers com -
pensation insurance for 1989 . 1989 will be the second year that CIRSA will
make coverage available. The CIRSA quote for 1988 was hi gh er than the State
Compensation Insurance Fund . The Finance department has requested an est i -
mated quote for 1989 from the State .
Att ; chment A -Workers Compensat 1 on lnsura nte Premiums
1q97 1988 1988 " Oiff 1989 " Inc to
Actual Estimat e Budget to Budget Budget 88 Est
General Fund 198,954 269 ,654 214,005 +26. 0% 318,751 +18.2%
Water Fund 10,657 14,359 11,434 25 .6 17,230 20 .0
Sewer Fund 2,142 2,900 2,298 26.2 3,480 20 .0
WWTP Fund 43,366 59 ,251 46,930 26 .3 70,602 19.2
Golf Course Fund 2,223 3,009 2,383 26 .3 3 ,611 20 .0
Serv1center Fund 6,517 8,774 6,979 25. 7 10,529 20 .0
Central Services Fund 184 254 199 27 .6 304 19 .7
Total 264,043 358 ,20 1 284,228 26 .0 424,507 18 .5
At tac 1 mr -,t
U11 -l 4 -fl tl
1q n H
<u •,~ TOTAL !9P9
FU~D ~,v . r.1v1s 10•· ........ 19 ~7 ACTUAL •••• [5T!MATE. l'UDGET •••
,0 ~2 11 :ITV ro u~,'.l
n 021 ' CI TY ATT C,0' •v
tJl )2 1 : Y l)\f\('l ~.l!.. ('"'UH T
L2 l 2 21 CIT Y ""::i •·:."3r-~
~2 r2~~ :~?LCY~£ R~LAT !O
02 c22 c CITY CL (~K1'[C0R
11 2 0 22t .AC L ~U~Tt•,f \ £1 1.JO
.'~ ,.,22 7 ~:V [~IU[
:2 :22 ,• PU~CH ~,J ~r,
~2 C22r· Q 6T~ P~F'C($$If r,
C2 ~2 3 : £~~!~JEE 0 1,G ~~Q V
r 2 02 !4 ?USLI : ~J~~~ -~
~2 :237 S•~•E T! & ~R AJRA
02 323' Tn rFI ~ P.G INEE~
u 2 C2 Y · GE ,fRA L J 0 E•AT1'
D2 02 4 3 Fl1E • •J •IN !S TR
(;2 :2 44 F l ~r' -0 R~'.':N T 10
02 02 4~ F!F• -;ES CUE SE
~2 n •• "I 'c -~J 0 PREss1
~2 ~2 4 : ~I ~£ -T~.ll~I~~
• J2 .:2•: raa,·ur, !CAT ION S '·
wc 2 0 2 5 1 ?O l !CE -AD~lNJ ~
o: C2~2 A~!MAL S ◄~LTE ~
02 u 253 FOL !CE -•nPOL
(2 "2 5 • POLlrE -!~VEST!
02 025 5 co ••u NITY RE LATI
G2 026 • BUI LDI 'IG ! sr.F ET
(2 )2~:' ~:1US I:-JG
02 •~IE PL•~X I NS
C2 0271 Ll r 'ARY
C2 ~2 7 '= ~!:Cl;[AT t)~ CE\JTE
02 ~277 YCUTH ?~~GR AM£
J2 ~2 7 8 OUT COOR RECs[Ail
02 C27° SE~IOR CITI ZE~ P
02 C?.8~ PARr.s
0 2 02~1 AOUAT! C5
02 02e~ FORES TER
02 028~ SP OR TS i GAMES
02 02A 4 CULTURAL ACTIV IT
C2 C285 P LAYGROU~JS
O? 02 8~ SOF TBALL
02 028 7 FAR M
02 C28e RECPEATIO~ GE~E•
G2 0289 YOU~G A~[RJCAN 6
02 02q~ DETENTION POND N -~;
oq 0901 SOU Rr.( OF SUP•L•
09 090? POW<R i ?U~PING
09 090 ! PUPIF!CtTION
31 ~ • 0 ·l
7 I I,
'4 7. '.)
2 4 0 • J s
1 5e.0 J
23 8 . ,j:
5,e . .::~
~; 4. :":
211 . '. 0
1 ,i;~s. ') :•
1 s, i:z ~. \, ~
5 •41 A•')')
5,J:Q.')J
qfl .~C
.'.! t 4': 5 • r 1
~9 ,7''?6 .~J
1,167 .~,
4 7 5 •, l
2 ,6~ :3 • :,')
1, 5 U'?. r ~
e,s ,02 a .oo
2 2,9Pl.~·=
2,6 ~7.!J0
1, ~:, 2 •CJ
42 ~.J r
q 5u .,. G
1, OC '+. n 0
1,234 .)0
7• 0. o 0
~74.0 0
2 , 3c' 6, :'.IC
9,165.0~
1,0 11.00
-1.H
2 ,7~4.00
eu.oo
1,2~9.00
q 7 4.,,)
2° 0 • 0 0
l,71A,O C·
369.00
368.00
1,534 .0 0
1,243. or,
3,519.~0
35
4 3':-
91e
4 7 l
3 2f.
~ ('O
3 2f.
I ••
~AD
'2 7~
2 ,&47
2 4~
2~,95!,
7 t ~ 24
6,8 lf
I,!C6
~ t 3 3 e
~3,;51
2,24P
65"
:':.: 5 4
2, ~ 31
81? ,2 9 !:
31 ,n,
3,5~4
1,777 ;e ,
1,27'
1, ;1,lt 2
1,16 e
l ,: 1 ~
~ J7
~,150
12,47 2
1,451
3,771
1,12~
1 ,&6e
1 ,:!i r&
3c9
2,320
5 0 7
507
269,654
2,:i5 1
1,66A
4,75C
42
5?2
515
3 0 l
2 5 n
3a1
A3 4
4 1 7
3 34
3,176
2 :;i:?
2~, 14 7
0 ,7S8
P., I~ 0
1 ,557
.,002
~
64,424
2 .~9 P
7 ~ ~
4 ,:?!:,5
2 ,4~7
IC7,1 48
37,28 5
4 ,2&5
0
696
0
1,Hl
2 ,002
1,217
E, ~ q
~,795
14,966
1,741
0
~ ,52:.
1 ,3o o
2,002
1,567
H8
2,794
609
6nq
318,751
2,4~0
2,00?
S,6q9
)~-1 •-118 1 ~ 2 1: WOf'IK M[•:•s co •P E~5 H 10 ~ P AGE 2 -1 °8 8
FU~!: T ~T ~L 1 9 R0
F UN D o tv. 01v1s10 11 ........ 1 9 ' 7 AC TU AL .. ,, ESTl~AT E , e UOGET • ..
L q ;904 TRA ~SM !SSI0•1 ~ D ! , :16. ".' '.' 4, ~-61 4 ,873
11 9 •:9 ~P. Ar~INISTHTIO~ l , °' ~ ~.; C 1, ~ l ~ 2 , 1 7 !, .. _., __ .., __________
--------------·---L9 l O, ':>~ 7. ~ ': 14 ,3~'? 17,230
i; 1 3 0 7 5ANITARY SY S TE~ 1,3 1~.co 1'9 4° 2 ,21q
l~ IO~F AO•INI STUTION ~ 7H,:C l t ~ 5 1 1,251 ----------------------------·----
l l 2 ,142 • ~ ~ 2 ,HC !,q ~')
II 11 0 : SL U0 GE 9 1 S P QS lL s,~.Q3.:·J 7,28 7 8 ,745
11 11 a~ Bl•CITY ~AINTf.N4 !3,5°6,n G 18,3 8 2 2 2 ,05<:>
11 110 ~ e !•CITY OPERATI C 23 ,374.CO 31 ,7 88 3 ~,1•6
1 1 1 IG7 81•CITY LABORn o 619,l~ ~ -..~ I, n C 0
11 11 O? AO~INISTRATION ~ 3'JC.QJ 54lt 6 ~2
11 I 112 WWTP PRETR EAT~ ~•J 4 I 7 a ---..... , .. --------------------------
!I 4~,!~6.o, 59,~51 7 0 ,6 0 2
1 2 121 2 GOLF CCL•~S E Q.> !'"P 2,2 23 .~".' ~,r o~ ~ ,611 -1 2 1 2 1 ~ :Hl'ITE~A~CE 01 VI ----------------··----------------
12 2 ,2~~.i)') 3 ,J C0 ',6 11
3 3 3 33 3 SE RVI CENTER GARA 6 ,~ l 7. ') J 8,774 1 ~ ,529
---------------------------------
3 3 ~. 5 1 7 • f)t: 8 ,77• H,52~
9 ~ 9595 CEN TR AL SERVICE~ IB4 ,~J 2 54 304 ---------------------------------
~~ 1 9 4 •~I'.\ 25 • 3~4
----------·----------------------u •,n43,o,1 35 8 ,2 r.1 4?4 ,~0 8
=---=======-=== ------------------
2 64,~43,0J 35 8,2 01 4 2 4,508
~= re-cores l lst~d.
Al tachment C -Workers Compensat 1 on Insurance
Comp Rate per
Code Descript ion hundred salar~
0070 Animal Warden S 6 .99
5506 Streets 12 .49
6325 Traffic Systems 8 .57
7380 Drivers 8.32
7520 Ut111ties 5 .44
7850 Bi-City Trutment Plan 7 .4 1
7704 Fire/Volunteer Fire 5.38
7720 Pol ice Officers 4.55
8227 Servi center /Garage 7 .17
8803 Tax Auditors .48
8810 Clerical .44
8811 Elected Non -salaried Off i c ials .06
8820 City Attorney 's Dept. .30
9015 Janitors/Recreation 7 . 14
9060 Golf Course 3.32
9102 Parks Employees/Parks Pol ice 7 .58
9410 -Engineers/Surveyors/ Inspectors/lab I.OS
-HE HOR A I'D UH
TO:
DATE :
SUBJECT :
Margaret Freeman , Financ_.
Colloen H. Caudlll , Elllploy11 Relatlon ■
Soptombor 2, 1988
Stato Compon■atlon In ■uronce Fund
Ht,, :hm .it U
F~llowing ii ju■tiflcatlon for our requeat to l. ·reuo tho fundlng level fo r our
tat• Compensation in1urance .
In 1988, our rate ■ wore baaed on tho followlng axporionco:
Rehab . Pald
and/or
Com2 , Pald Hed . Pald R11erve1
1984 $ 31,488 $ 42 ,261 $ 3 ,020
1985 $ 63,163 $ 71,876 $ 117,794
1986 $ 53,206 $ 69 ,554 $ 109,453
1989, our rate ■ ,,111 be based on the followlng estlmated oxperlence:
R•:iab. Pald
and/or
ComE , Pald Med, Pald ~eserves
1985 $ 41,8l,3 $ 71,876 $ 118,634
198~ $ 9~ ,445 $208,215 $ 174,911
1987 $ 54 ,342 $ 49,268 $ 277, 701
As you can see, we wlll be loslng the good experlence we had durlng 1984. Our
losses totaled $76,769 .
Unfortunately, tho experlenco belng used for our 1989 premlums ls our three worst
year ■ ln at least tho last 10 year ■. Our losses for 1985 totaled $232 ,353 , for 1986
totaled 478,571 and for 1987 totaled $:81,311 .
The number of accidents have not increased but the severity l'ias. Eleven employees
are responsible for dur increases . I have attached a breakdown on those eleven (out
of vhlch only two are ■tlll employed).
Let mo know if you nood anythlng further, Margaret .
cc : Mel BoVlrt
1985
Rutherford
(Strootafback)
Herberg
(IIIITP /kn••)
Sorley
(IIIITP/psyc)
11lorton
(IIIITP/back)
Breslin
(IIIITP fknee)
Southworth
-•rksfhead & neck)
-derson
(Police/back )
1987
*Decker
(Firefknee)
*Long
(Parks/neck)
Penney
(Court/neck)
Hall
(IIIITP /ankle)
c .. rrillo
(Ut1lit1es/oack)
Comp . Paid Hod . Paid
$ l, 243 .30 $ 8,384 .64
$34,336.89 $37,791.41 $ 86,634
Lump Sum Pay Out $ 32,000
$31,676.02 $14,410 .33 $46,513.00
$29,268.27 $133,259.26 $60,334.00
$19,608.99 $25 ,668 .45 $68 ,064 .00
$ 4,370 .88 $ 4,127 .12
$ 4,471.36 $ 2,393 .42
$19,577.92 $ 3,899.45 $204,842 .00
$ 145.45 $ 7 ,7 97 .92
$ 409. 85 $ 3,724.30 $15,315 .00
$14,292.99 $ 3,495 .07 $56,269 .00
.,
llfil.•Hrvu need to bo ootablbhod for Decker,
• ould be reduced by ro11oval ,
Tho re11rvea for Long are inflated and
:. . ~ . : .... ·' ...... ···• .
BYLAWS AND INTERGOVERNMENTAL AGREEMENT
COLORADO INTERGOV ERNl✓.ENTAL RISK SHARING AG EN C'l
FOR WORKERS' COMPE NSATION
CIRSA/WC
t 11J UI t\
(WITH AMENDMENTS APPROVED BY THE MEMBERS THROUGH
12-15-88)
BYLAW S l\NO INTERGOVERNMENTAi, l\GRf:EHENT
CO LORA DO IN TER <;OV ERNMENTAL RISK SIIAR J IIG AGENCY
FO R WORKE ~S • COHPE NSATI ON
ART I CLE I. Definitions . As used in this agreeme nt, th e followi ng
terms shall hav e the me a ning hereinafter set out:
(1) JlQAB.D . Board of Directors of CIRSA/WC.
(2) ~-This Rylaws and Intergovernmental Agreement,
Colorado Intergovernme ntal Ri sk Shari ng Agency for Workers'
Compensat i on.
(J) ~-Colorado I ntergovernmental Risk Sharing Agency.
(4) ~~-The Colorado Intergovernmental Risk Sharing
Agency for Workers' Com pensation established pursua nt to the
Con s ti tut ion and the sta tutes of Colorado by t h is intergove rnmental
agr eemen t .
(5) CL/\IM YEAR. An y t welve consecutive rr,onth period e r-c a blished
by the Board .
(6 ) DI RECTOR. A Direc tor on the Board .
(7) EX EC UTIVE DIRE CTO R. Ex e cut i ve Director of CIR SA/W C.
(8) FISC AL YEAR. J an uary l t o Decembe r Jl .
(9 ) LOSS ~UNO . A f und of mon ey established by the Boa r d for a
claim year to pay losses and loss adjustment e x penses covered in
that cla i m y ea r .
(10) ~-A mun i cipality which enters into this inter-
governrnert al agreeme nt .
ARTI CLE II. Creation of CIRSA/WC . The Colorado Intergovernmental
Risk Sh ar i ng Agency for Workers' Compensa t ion , a separate and
independent governmental and legal entity, is here by formed by
inte rgovernmental agreement by Members pursuant to t he provisions
of 29-1-201 il ~-, C.R.S. as amended, 8-44-101(1) (c) and (J), and
8-44-110, C.R.S., as amended, and Colorado Con s titution, Articl e
XIV, section 18(2).
ABIEI&.......Il-~~-(l) The purposes of CIRSA/WC are to
provide Members a workers' compensatio11 self-insurance po ol to
provide defined coverages, and claims ar.d risk management services
related thereto.
-CI RSA/WC 12/88 2
(2) It is the i nte nt of the Members of CIRS A/WC to create an
entity to defend a nd indemnify, in accordance with these Bylaws ,
any Member of CIR SA /lv C against stated liability or loss, to th e
limit of t h e financial resources of CIRSA/WC available to pay s uch
liability on loss . It is also the intent of the Members to hav e
CIRSA/WC prov ide continuing stability and availability of needed
coverages at r easonable costs.
(J) All income and assets of CIRSA/WC shall be at all times
dedicated to the exclusive benefit of its Members.
I\BTICLE IV. source ot Money; Non-waiver or Immun i ty . (ll All
CIRSA/WC monies are mon i es plus earned interest derived from its
Members which are municipalities within the State of Colorado.
(2) It is the intent of th e Members that, by entering into this
intergovernmental agreement , t hey do not waive and are not waiv ing
any i mm uni t y provided to the Members or the i r employees by any law.
I\RTICLE V. CIRS,',/WC Pow -1r,\. (1) The powers of CIRSAfWC to perform
and accomplish the purpose .< set forth above shall be the following,
to be exercised within the oudget,u-y limits of CIRSA/WC and subject
to the procedures set fen :I\ in t h ese Bylaws:
(a) Retain age:,-c _,. employees and independent contractors .
(b) Purchase, s ell , encumber and lea se real property and
purchase, sell, encumber and lease equipment, machinery, and
personal property.
(c) Inv est mone y as allowed by Colorado statutes . for
muni cipalities in 24-75-601 through 603, and 24-75-701 through
702 , C.R.S., as amended, and such other statutes as may from
time to time apply to i nvestments by Colorado municipalities;
or as allowed by Colorado statutes for commercial insurance
companies licensed in the State of Colorado, ·.hich ever types of
statutes are the more restrictive.
(d) Carry out educational and other programs relating to
risk management .
(e) Purchase aggregate or specific excess ins•\rance, or
both, or reinsurance, to supplement any loss fund , as the Board
deems prudent.
(f) Establish reasona ble and necessary losa reduction and
prevention p~ocedures to be followed by the Members.
-CIRSA/WC 12/88
(g) Pr ov ide risk management a nd c lai m a djustment :;e r ·,ic~s,
or co ntra ct for such servicer., including the def e ns e and
settlement of claims .
(h) Carry out such other activities as are necessarily
implied or reqi.:ired to carry out the purposes of CIRS/\/WC or
the speci f ic powers enumerated in this Article.
(i) Sue and be sued .
( j) Enter into contracts.
(k) Re im burse Directors
expenses, including expenses
meet i ngs.
for reasonable and approved
incurred in attending Board
(1) Purchase fidelity bonds from an insurance company
approved by the Insurance Commissioner of Colorado to do
business in Colorado.
™LY-I· Particioati.Qn. (1) The membership of CIRS/\/WC shall
be limited to municipalities which are members of the Colorado
Municipal League and which properly enter into and adopt these
Bylaws.
(2) New Me mbe rs sh~ll be admitted only by a vote of the Board,
subject to the payment of such sums and under such conditions as
the Board shall in each case or from time-to-time establish.
(3) The x~rnbers shall be notified in writing of each proposed
new Member. Ten percent ( 10%) of the Members may request a
membership meeting to consider admission of a new Mel:lber. The
request shall be in writing and must be received at the CI RSA/WC
offices no later than fifteen days after mailing of the notice.
If such re~uest is time l y received, ~ membership meeting shall be
called by the Chairman and the new Mel:lber shall be ad mi tte d only
by a t wo-thirds (2 /3) vote of the Memb e rs present at the meeting.
ARTICLE VII. Members' Powers and Meetings. (1 ) The Membe~s at a
meeting thereof shall have the power to:
(a) Amend the Bylaws by a two-thirds (2/3) vote of the
Members present at a meeting, but no amendment shall take effect
sooner than sixteen (16) days after adoption of the amendment.
Written notice of any proposed amendment shall be provided to
each Member at le3st fifteen days in advance of a vote on the
amendment. If requi :ed by regulations or guidelines issued by
the Insurance Commissioner of Colorado, no a mendm e nt shall take
effect until a copy of the proposed or adopted a me ndment has
been filed with the Insurance Commissioner of Colorado and has
-CIRS/\/WC 12/88 4
·bee n a p p roved by h i m, b ut a p proval sha ll be co nsid e r ed giv en Ly
th e Comm i s s i one r thi r ty day G a fte r s uch f i ling wi th t he
Co mmi s s i on e r unless pr i or Commi s sioner notice ha s b <?en rece ived ,
(b) Ad~i t Members a s prov ided in Art i cle VI , an d determ in e
expulsion app e als pursuant to Article XV.
(c) Re move a Director by a t wo-thirds (2/3) vote of the
Members present at a meeting .
( 2) Meetings of the MP.mbers shall be held ns follows :
(a) Me mbers shall meet at least s emi-annu a lly at a t ime
~nd place t o be set by the Board, with not ice mail e d to ea c h
Me mber at least fifteen (1 5 ) days in advance.
(b) Special meeti ngs may be called by
p e tition of one-third (l/3) of the Me mbers.
meetings shall be mailed to each Member at
days in advance.
the Board or by a
Notice of speci al
least f i fteen (15)
(c) The Chai rm an of the Board will preside at t he mee t ings .
(d) Th i rty (30) percent of the total number of Members of
CIRSA/WC as of the date of any meet i ng shall constitute a quorum
to do business dur i ng that meeting.
(e) No a b sentee or pr oxy v oti ng shall be all owed .
( f) Each Member s ha ll be entitled to one v ote on e ach
iss ue .
ARTICLE VIII. Oblioat i ons of Members . ( l) The obligations of
Members of CI RSA /WC shall be as follows :
(a) Pay promptl y all annu a l and s uppl emen tary contr i butions
or oth er pa yments to CIRSA/WC at such time s and in such am ounts
as shall be establ i s hed by the Board pursuant to these Bylaws.
Any delinquent payments shall be paid with i nterest which s hall
be egui valent to the prime interest rate on the date of
delinquency of the bank which invests the majority of the
CIRSA/WC funds . Payments will be considered deiinquent forty-
five (45) da y s following the due date .
(b) Designate a voting repr esentative and alternate for
the Members' meetings . A Members' voting representative must
be an employee or officer of the Member, but may be changed from
time-to-time .
(c) Allow CIRSA/WC and its agents , officers and employees
reasonable access to all facilities of the Member and all Me mber
CIRSA/WC 12 /88 5
r ec <>rd ,;, including but n,i t limite d to financi.,l ce cords, as
req u ire d for the administration of CI RSII/WC .
(d) ,\llow CIRSII/WC to make decisions r egarding , and to
designate attorneys to re p resent che Member in, the investiga-
tion, settlement and litigation of any claim made against the
Member within the scope or loss protection furnished by
CIRSA/WC.
(e) Cooperate fully with CIRSA/WC's attorneys, claims
adjusters and any other agent, employee, or officer of CIRSA /W C
in activities relating to the purposes and powers of CI RSA/WC.
( f) Follow the loss reduction and pr evention procedures
established by CIRSA/WC.
(g) Report to CIRSA/WC, in the form required by the Bo a rd
and as promptly as possible, all incidents or occurrences ~hich
could reasonably be expected to result in CIRSA/WC being
required to consider a claim against the Member, its ag e nts,
officers, or employees, within the scope of coverages underta ken
by CIRSA/WC.
(h) Adopt ;i risk management statement approved by the
Board.
(i) Maintain an active safety committee or safety coor-
dinator .
(j) Report t o CIRSA/WC as soon as reasonably possible, the
addition of new programs and facilities or the significant
reduction or expansion of existing program s and facilities or
other acts wh ich may cause material cha nge s in the Me mb er's
exposures.
(k) Participate in coverage of losses and pay contributions
a s established and in the manner set fo rth by th e Board.
(1) Contract with CIRSA for management services, the
contract to specify the management services to be provided and
the manner of establishing and paying the cost of such services.
ABT~-Contributions . (l) The Board shall establish contribu-
tio1:s to be pa id by the Members.
(2) The contributions may include contributions to a reserve
fund. The reserve fund may be used only to pay clairr,s, and
expens,.s related thereto, accepted by the Board pursuant to Article
".I(l) (1,) for which previous contr ibutions for a claim year a ;:e
insufficient. If the reserve rund is used to pay claims, and
expenses related thereto, accepted by the Board pursuant to Article
CIRSA/WC 12/88 6
XI ( l) (p), t h e Bo ard shall re quire the Memb ers ,ind c.n y fo m er
Membe r s for the particular cl a i m year to r epleni s h t he re s erve fun d
by th a lev y o f one or more additional c o nt rib u t i on s. Such
contributio11s shall be in the same proporti ons a s the initial
contributions for the partic ular claim year o f all such Members .
All Mem bers and forme r Members shall pay such contributions and ,
by virtue of their membership dur ing any cl a im year, waive the
right to assert that the levy of a dditional contributior,s pursuant
to this Article for such claim year is barred by any statute o f
limitations.
(J) The Beard shall annually review and report to the Member s
the contributions to the reserve f und, the earnings thereon and
the expenditures there f rom. The Board shall credit Members and
former Members making such contributions, in the same proportions
as the contributions were made, all amounts in excess of t he
amounts which the Board reasonably determines to be nece ssary to
pay claims and expenses r e lated there to, including sufficient funds
for payments which might be made pursuant to Article XI(l) (p).
Credits shall be made against future contributions of Members and
shall be p aic! t o fo r ;:-,er o r withdn1.ing :-!em b e rs . no cred i t shall
be given to any Member or paid to any fo rmer or withdrawing Me mbe r
whi c h owe s any amount to CIRSA /W C or CIRSA until the amount owing
is paid, and any credit or payment to be made under this Article
IX may be used to pay such a mount.
( 4) Any money contributed for a c l aim y ea r to the los s fund and
not n eeded for that c laim year may be credi ·. ed to the r es erve f und
or may be credited agai nst f u ture contribut i ons of Members and pa i d
to for::ier or withdrawing Members which were Members d'Jring t hat
cl aim year, or both , as the Board may dete ::m ine , ex c ept a s
oth erwise specifically provided in these Bylaws or in policies
adopted by t h e Mem bers as authori zed in these Bylaws . All c redits
and p a vme nts sha ll be in similar proportions as the contributions
paid b . ~e Me::tbers fo r the particular claim year. The Board shall
reasona b ./ d etermine wheth ~r money is a vailable for re s erve !~n d
credit or contribution credit and p a ymen t, or b ot h , and the timi ng
and a mount t hereof. No cre d i t shall be g i v en to any Member or p a id
to a ny former or withdrawing Member which owes any amount to
CIR SA/WC or CIRS A until t h e amount owing is paid, and any credit
or paym ent to be made under this Article IX may be used to pay such
amount .
(5) Members shall have the obligation to repay CIRSA for its
reasonable costs incurred in the creation of CIRSA/WC within such
time and in such amounts as the Board may provide , and for the
expenses reasoMbly associated with CIRSA' s administration of
CIRSA /W C during 1988 which exceed the amount of $79,7C0, within
such time and in such man ner as the Members and Board may agree.
-CIRSA/WC 12/88 7
1:1.8'.!'.li ;&.._.'i, Bo ,1rc l J<Lllir.£tl••ll· ( l) 'fhe Board wi l I b ,, compos r.d of
t hos e pe rsons who, from time to time, compris" t he Board of
Direct or,; of CIRSA. The term of each Director shall c oincide with
the Direc tor's term on the Board of Directors of CIR SJ\.
(2 ) The off i cers of CIRSA/WC will be those persons who, from
time to time, comprise the offices of CIRSA. The term of each
officer shall coinc!.de with the officer 's term as an off icer of
CIRSA ,
(3) A vacancy shall exist on the Board at the same time the
person vacates the position on the Board of Directors of CIRSA .
The vacancy shall be filled by the person filling the position on
the Boa rd of Directors of CIR5A .
(4 ) Sections (l), (2) and (:l) of th i s Article X are repealed e n
Janu ary l, 1990.
(5) Durittg 1989, the members shall elect persons to the Board
of Directors who shall assume office on January l, 1990. At that
election, the Director receiv ing the l argest number of votes in
each population category set nut in section (6) of this ArticlP X
shall be elected for a two-year term, with the remaining Directors
serving one-year terms. The successors of each shall be elected
for two-year terms.
(G) Effective January l, 1990, the Leard of Directors will be
composed of s even (7) Directors, each from a different member,
elected from anong the Me mbers' vot.ng representatives a,:: follows:
(a) Two Directors, e ach from a different Member u nde r ten
thousand (10,0 0 0) population.
(b) Two Director s, each from a different Me mber of ten
thousand (10,000) to forty thou~and (~0,000) population.
(c) Two Directors, each from a d iffer ent Membe r above forty
th ou sand (40,0 00 ) population.
(d) One director at large.
(e) Every year population will be determined by the
population figures then most recen~ly use~ by the Colorado
Municipal League to calculate its membership dues.
(f) No person shall be removed from office as a Direc tor
by rea~on of any change , during the t erm of office for which such
person was elected or appointed, in the population categories
described in (6) (a), (b) and (c) of this Article X or in the
population of the Director's munici pality .
-CIRSA/WC 12/88 8
term s ,
(g) Te rns of the Directors will be two-year-staggered
exce pt as provided in Section (5) of this Article X.
( 7) The election of Directors will be made by the members at
their annual meeting in 1989 and each year thereafter. A Director
shall assume office at the first Board meeting following his or her
election, except as provided in Section (5) of this Article X.
(8) At the first Board meeting following January l, 1990, and
thereafter at the first Board Meeting following each annual
meeting, the Board shall elect a chairman, vice-chairman, sec-
retary/treasurer and other officers as appropriate. Each officer
shall serve until his or her successor is elected, but there shall
be no limit on the number of terms serveaby any person.
(9) The Board may fill vacancies in the Board by majority vote
of the remaining directors for the unexpired term.
(10) ~f CIRSA dissolves prior to January 1, 199 0 , the persons
serving on the CIRSA/WC Board of Directors at the time of
dissolution shall continue to serve on the Board until January 1,
1990 , This section 10 is repealed effective January 1, 1990.
ARTIC LE XI. Powers and outie, of the _Board of Directors . (1) The
Board shall have the power to:
(a) Admit new Members as provided in Article VI and adopt
criteria for new Members.
(b) Es~ablish contributions to be paid by the Me mb ers, at
such time or times and in such amounts as the Board deems necessary
to protect the solvency of CIRSA/WC and appropriate for the
operation of CIRS/\/WC.
(c) Establish the types of losses to be covered, limits of
liability on any excess insurance or reinsurance policies, and the
types of deductions which CIRSA/WC provides.
(d) Select all service providers necessary for the
administration of CIRSA /W C.
(e) Set the dates, places and provide an agenda for Board
and Members' tr,eetings.
(f) Exercise all p~wers of CIRSA/WC except powers reserved
to the Members;.
(g) Hire and discharge personnel or delegate such authority
to the Executive Director ~f CIRSA/WC.
(h) Make reports to the Members at their meetings.
CIRSA/WC 12/88 9
(i) Provide for ~laims and los s control procedures,
establish conditions which must be met prior t o the payment or
defense of a claim , and deny a claim or the de fe nse of a claim if
the conditions are not met.
(j) Provide for the investment (subject to the limits of
Article V (l) (c)) and disbursement of funds.
(kl Establish rules governing its own conduct and procedure
and the powers and duties of its officers, consistent with these
B laws.
(l) Form committees and provide othe~ services as needed
by CIRSA/WC. The Board shall determine the method of a_pointment
and terms of committee members .
(m) Do all acts necessary or proper for the operation of
CIRSA/WC and ~mplementation of these Bylaws subject to the limits
of the Bylaws a nd not in conflict with these Bylaws.
(n) Dissolve CIRSA/WC and disburse its assets by a two-
thirds (2/3) vote of the entire membe rship, but a not i ce of intent
to dissolve CIR SA/W C shall be given to the Insurance Co mmi s ~i oner
of Col orado at least nine~y (90) days prior to the e ffective dat e .
No such plan to dissolve CIRSA/WC shall be e ffective until approved
by the Insurance Cott.missi oner. Upon dissol u tion of CIRSA/WC, the
assets of CIRSA /W C not us ed or needed for the purposes of CIRSA/WC,
as determined by the Board and subject to approval by tte Insurance
Commissioner of Colorado, shall be distributed exclusive l y to
municipalities wh ich are me r:,bers of CIRSA/WC prior to diss olution
to be used fer one or mor e publ ic purposes.
(o) Delegate to the Executive Director, by motion approved
by the Board, any of the Board's powers and duties, except that the
Board may not so delegate its po·.e rs to acmi t new Members,
establi sh contributions by the MeJ:tbe rs, a dopt CI RS l'I /W C' s budget ,
establish ccnditions which must be met prior to th e payme nt or
defense of a claim, or dissolve CIRSA/WC.
(p) Not11ithstanding any other provision of these Bylaws or
any limitation on CIRSA /W C coverages, for any claim year the Board
may accept and pay those claims and expenses related ther~to which
would otherwise be denied for the reason that payment would e xceed
the sum of the Pool's loss fund and any aggregate stop loss
insurance for that claim year, but no such acceptance or payment
shall cause CIRSA/WC to become insolvent. Any such payment shall
be consistent with such policy as the Members may adopt by~ two-
thirds (2/3) vote of the Members present a t a meeting.
-CIRSA/WC 12/88 10
(c;) Ar,end an y c ,>nl ract with CJRSI\ r or manag e me nt service :.
which is r~e cute<! by th e Me mbers and CIRSI\ pur ~uant to ,\rticle VII l
(1 ) of the s & Bylaws .
(2) The ·aoard shcill have th<1 a,;·,,, to:
(a) Provide to Members ann ually, the budget for CIRSA /WC;
an audit of t he financial affaira of CIRS/1/WC to be !'la de by a
cert ified public accountant at the end of each fiscal year in
accordance with generally accept ed auditing .principles and state
law; and, a report of operation~.
(b) Provide for paymenc o~ c:o ,;ered claims and expenses
related thereto in the order in whici, the amounts become aue, until
money available for such payment is de,•leted .
ABI.I£lJLXll. ~gs of the i,1'>ard of Directors. (1) The Boar'1
may set a time and place for regula ~ meetings which may be held
without further notice, and shall estublish proc edures for notice
ct s pecial me e t (nrys.
(2) Three (J) Directors shall constitute a quornm to co
business. All acts of the Board shall require approval of a
majority vote of the Directors present.
(3) One or ::,ore ,:,r all Directors on _t he Board may participate
in any meeting of the Board by r.eans of a conferenc e telephone or
similar c ornrnunications equipme:1t by which a l l persons participating
in the meeting can hear each e,"•he :-at the same time. Participation
by such means shall constitute presence at the mce:ing.
(4 ) Any action of the Board may be taken without a meeting if
c on sent in writing sett ing forth the action so taken is signed by
all Directors then serv inq on the Board. Such c onsent shall have
the same effect as a unanimous vote and may be executed in
co un terpart s.
ARTICLE XIII. Liability of Board of Director or Officers. The
Directors and officers of CIRSA/WC should use ordinary care and
reasonable diligence in the exercise of their ,~wer , and in the
performance of the i r duties hereunder; they shall not be liable
for any mistake of judgment or other a ction made, taken or omitted
by them in g ood faith; nor for any action taken or omitted by any
agent, employee or independ ent contracto r selected with rea sonable
care. No nirector shall be liable for any action taken or omitt~d
by any ott.er Di rector. CIRSA/WC shall obtain a bond or other
security to guarantee the faithful performance of each Director's,
off icer 's a nd the Executive Director's duties hereunder. The 1 oss
fund for the appropriate claim year ''"Y be used to defenc.. and
ind~mnify any Director, office r, or empl oyee for ~ctions taken by
CIRSA/WC 12/88 ll
e,1c h such pe rson in good faith within thi, s -s oi:e of hi:; or her
authority for CIRSII/WC, CIRSII/WC may purchase in,;urance providing
similar coverage for such Directors, officers and employee~.
/IBTICLE XIV. Withdrawal from Membership. (l) Any Menber -,,ay
withdraw from CIRSII/WC by giving prior not~ce in writing to '·,e
Board of the prospective effective date of its withdrawa l.
(2) If the effective date of a Member's withdrawal is a date
other than a January l, the withdrawing Member shall not be
entitled to receive any refund of contributions made f o r adminis-
trative (e.g. non-reserve fund, non-loss fund) co~ts for ':he claim
year of withdrawal . The withdrawing Member shall be entitled to
receive within forty-five days after the effective date of
withdrawal, a proportionate return of its contribution to the loss
fund for the claim year of withdrawal. The proportion shall be
that percentage which ':he number of days re:naining (after the
effective date of withdrawal) in the claim year of withdrawal bears
to the tc,tal nu mber of days in that claim year, Any return of
other. loss fund c on tributions for the claim year of withdra,.,al
shall be subject to Article IX (4) and any return of reserve fund
contributions s hall be subject to Article IX (3).
(3) If the effective date of a Member's withdrawal is a January
l but the Member's written n .ice of withdrawal is received by
CIRS)I/WC more than thirty d ays after the date on which CIRSll/liC
mailed a preliminary quote of the contribution to b e assessed the
Me mber for the year beginning en that January 1, the withdrawing
Member shall ~e obligated to pay its share of CIR Sll /~c•s adminis-
trat i v e (e.g., non-loss f und and non-reserve fu nd ) cos ts for the
year beginning on that January l .
(4) The Members ma y , by a t wo-thirds (2/3) vote of the Members
present at a mee ting, adopt or amend. a policy establishing
additlonal cond i ti.ons applicarle to Members which withdr aw.
/IRTICLE XV . Exo u l sion of Me r.,oers. (1) II Member which fails to
rnake any c ontri !:lution or other payment due to CIRSII /WC shall be
automatically e >:pe l led from CIRSII/WC o:, the sixtieth day follow ing
the du e date, unless time for payment is extended by the Board and
payment is made within any extended period. II notice of fa ilure
to n ake a contribution or other payment due to CIRSII/WC shall be
mailed to the Me mber at least thirty (30) days prior to the fir s t
date of automatic expulsion. If time for payment is extended by
the Board and payment is not made within any extended period, the
automatic expulsion shall occur on a date, no later than twenty
(20) days after the last day of the eytended period set by th~
Board. An e x pulsion und e,r this subsection (1) shall not be subject
to the provisions of sub~ection (2).
CIRSII/WC 12/88 12
('2) A Hernber rn ~y lie c xpoll e d by the Board (or fa ' lure to carry
out any other obliga t ion of the Member subject to the following:
(a) The Member shall receive notice from the Board of the
alleged failure and not less than thirty (JO) days in which to
cure the alleged failur .,, along with notice that expulsion rnay
result if the failure i :J not so cured.
(b) The Member shall receive at least thirty (JO) days
prior notice from the Board of the date, place and time when
the Board will consider expelling the Member from the Pool, a nd
the Member shall be entitled to be present at that meeting and
to present evidence and reasons why it should not be expe lled.
The decision of t he Bo a rd shall b e effective as of the date and
upon the te r rns and c onditions set forth in the Bylaws and
applicable e xcess or reinsurance policies and as otherwise
specified by the Board, except as provided in paragraph (c) of
th J s Article XV (2).
(c) The Mernber may appeal the Board's decision to the
;:;e;:;ber:s hip. Not i c e of the api:eal shall be provic!e c! to e ac !-1
Me mber. The appeal shall be considered by the Members only if
twenty (20) percent of the Members request the Board, in
writing, to schedule a membership meeting on the appeal;
otherwise the appeal shall be considered denied. If the appeal
will be con sidered by the Members, the Chairman of the Bo :,rd
shall schedu le a membership rneeting and each Member, including
the appealing Mernber, shall be provided at least ten (10) days
prior written notice of the date, time and place of the meeting .
The appeali ng Meml:er s hall be entitled to be present a t that
rneeting and to present evidence and reasons why it s ho uld not
be e x pelled a nd t he Boa rd may pres ent evidence and r e as o ns why
e x pulsio n is proper. The a p pealing Member shall not b e counted
in ~.,ter::ii ni ng the n un ber of v otes required, nor s h all the
a _,pe .ling !(e mber b e e ntitl e d to v ote on the appeal. The
t , r :sion o f the Me mbe rs shall be by maj o rity vote of those
p. ,,sent a t t h e me et i ng and sha ll b e final, a nd a ny e ,:p ulsic n
s hall be e ffecti v e a s of the date and ,,pon th e terrns a nd
conditions set f orth in the Bylaws and ,1 pplicable exc e s :; or
reinsurance policies, and as otherwi se specified hy the Memben .
( 3) The Me rn bers ma y , by a two-thirds ( 2 /3) votP. of the Members
present at a rn eet ing , adopt or a me nd a poli~y establishing
requirements applicable to Members which are expelled .
ARTICLE XVI. Miscella n e ous . (l) This document sh3ll c onstitute
an intergovernrn ental c ontract a mong those municipalities which
becorne Members of CIRSA /W C. The terns of this contract may be
enforced in court by CIRSA /WC itself or by any of its Members .
CIRSA/WC 12/88 13
(2) The conside ration for tho dutie s herew i th impo r;ed upon th,•
Members to take certain actions and to refi:ain from c e rtain othe r
actions shall be based upon the mutual promise s and agreements o i:
the Members set forth he1.ein.
(3) These Bylaws may be executed in .,ounterparts. A certified
copy ot the ordinance, resolution or other document ot approval
tor each Member, accompan i ed by an att~rney's certification of
proper authority and adoption, shall be attached to the Member's
Bylaws on file with CIRSA/WC ,
(4 ) Except to the e xtent ot the limited financial contributions
to CIRSA/WC agreed to herein or such additional obligations as may
com e about through amendments to thes~ Bylaws, no Member agrees or
contracts herein to be held responsible for any claims in tort,
cuntract , or otherwise made against any other Member. The
contracting parties intend in the creation of CIRSA/WC to establish
an organization only within the scope herein set out, and have no t
herein created as between Member and Member any relationship of
surety, indemnification or responsibility for the debts of or
cl aims against any other Member.
(5) In the event that any article, provision, clause or other
part of these Bylaws is held invalid or untorceable by a court of
competent jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability with respect to other
articles, provisions, clauses, applications or occurrences, and
Bylaws are expressly declared to be severable .
(6) The provisions of these Bylaws and the assets of CI RSA/WC
are for the benefi t of the Members of CIR SA/W C, and no other
persons or entities shall have any right , or interest in these
Bylaws or in any such assets , as a thi r d party b e neficiary or
otherwise. The assets of CIRSA/WC shall not be subject to
attachment, garn ishme nt, or any equitable proceeding .
(7) The Insurance Comm iss i one r of Colorado sha ll have such
authority with respect to the formation and op e ration of CIRSA/WC
as is provided by applicable Colorado law.
(8) Except as permitted in these Bylaws, and ame ndments hereto,
neither the Board nor any other person or entity is authorized to
incur liabilities or obligations or ente r into contracts on behalf
of the Members .
(9) If required by regulations or guidelines issued by the
Insurance Commissioner of Colorado, "insolvency" as applied to
CIRSA /W C shall have the meaning as d efined in 10-3-2 1 2 , C.R.S., as
amended.
(10) The statutory reporting period for CIRSA/WC shall be the
calendar year.
-CIRSA/WC 12/88 14
ARTICLE XVII . Commencement of cr5s111wc. The Board of Director s
of CIRSA shall determine, no later than De c ember 29, 1987, wheth e r
there has beer deposited with or committed to CIRSA/WC as a first
year's payment an amount of money sufficient to satisfy the minimum
■tart-up level of CIRSA/WC, which shall include three hundred
thousand dollars ($300,000) initial paid-in surplus, unless the
Insurance Commissioner of Colorado approves a lower amount of
initial paid-in surplus . If the Board of Directors of CIRSA
determines that the amount is sufficient, then these Bylaws shall
become effective, CIRSA/WC shall commence, and coverage will be
provided on the date or dates specified by such Board of Directors.
No time deadlines contained within these Bylaws s hall apply to
actions first taken after formation of CIRSA/WC if compliance with
the time deadline would detrimentally affect the formation and
initial operation of CIRSA/WC. Thi s paragraph shall be automati-
cally repealed effective January 1, 1989.
ATTEST: By: ____________ _
-Name Title
City/Town
Date Date
CIRSA/WC 12/88 15
POLIC f ES ADOPTED BY THE ME}WE R!i PURSUANT
TO CIR SA/W C BYL/\WS, ARTICLES IX, XI, XIV AND XV
1. Payment of excess losses. (a) Any payment for claims and
•vpenses related theretc made pursuant to CIRSA/WC Bylaws, Article
XI ( 1) (p) shall be made only from a reserve fund establisr o·.
pursuant to CIRSA/WC Bylaws, Art i cle IX (2) (herea fter "resr,rve
fund") and shall be subject to the conditions and requirements of
Article IX (2).
(b) The Board shall not pay any claims or expenses related
thereto pursuant to Article XI (1) (p) in excess of the amount in
the r.eserve fund .
(c) Within twelve months after any payment is made pursuant
to Article XI (1) (p), the Board shall determine the total amount
of payments so made and shall levy contributions against the
Members specified in Article IX (2) in an amount necessary to
repl ~nish the re ser v e funrl for those payments. For any claim year
in which a reserve fund contribution was not made or was insuf fi -
cient to cover clair.,s and expenses related thereto , the amo unt
levied by the Board shall include th,• amount of interest which the
reserve fund did not earn as a result of the payments made
therefrom, as reasonablt calcu lr.ted by CIRSA/WC' s controller.
2. Conditions and r e auirements apol ;cable to all withdrawing and
e xcelled Members . (a) A withdra wn or expelled Member shall renain
obligated for all arr.cunts cwing prior to withdrawal or expulsion
from CIRSA/WC anj for all amounts whi..:h th erea fter become o·.ing
pursuant t o CIR $,VWC Bylaws and polici e s adopted by the Members
wh ich are in af fect at the time of withdrawal o r expulsion
including, but Pot linited to, contributions levied pursuant to
Article I X (2) of the CI RSA/WC Bylaws.
(b) A withdrawn or expelled Member is considered a Member of
CI!<SA/WC for the purpose of payment of the Membe r's claims and
e x Fenses related thereto which rema in covered unde r the terms of
CI RSA /WC' s e xc ess policies. A withdrawn or e xpe ll e d Member shall
remain subject to all conditions of coverage and obligations of
a Me m!>er: under CIR SA/W C' s Bylaws, excess or reinsurance policies,
and p o licies adopted by the Members which are in effe ct at the
time of withdrawal or expulsion . A withdrawn or expel l ed Me mbe r
shall have no righ t to vote on any matter pending before the
CIRSA /W C members hip .
(c) A wi t hdrawn Member shall retain all rights or a wi thdrawn
Member under CI RSA/NC' s Bylaws and policies adopted by the Members
which are in errect at the time of the withdrawal. An expelled
Member shall retain all rights or an expelled Member under
CI RSA/WC' s Bylaws and policies adopted by the Members which are
in errect at the time or the expulsion. No withdrawn or expelled
Member may ba adversely :srracted by any change in such Bylaws or
policies adopted subsequent to the arrective date or the Member's withdrawal or expulsior..
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AGREEMENT FOR MANAGEMENT SERVICES
As amended through 11-29-88
EXHIBIT B
This agreement is made by and between th& <.:oloratlo Inte1·govern m•n-
tal Risk Sharing Agen (hereafter "CI RSA") , and the members ot the
Colorado Intergovernmental Risk Sharing Agency tor Worker's
Compensation (hereattar "CIRSA/WC"). In consideration ot the
mutual covenants herein co1·,tained, the parties agree as follows:
l. l'..IDl· This agreement shall take e!tect on the date CIRS>./WC
begins operat i on and shall continua in force until terminated. It
permitt ed by CI RSA/WC' s Byla ..,s and Interr,overnmental Agree ::,e nt,
this agreement may be terminated by CIRSA or the Board of Directors
of CIRSA/WC (hereafter "CIRSA/W C Board"), on any January l by
either giving at laa~t ninety (90) days prior written notice to the
other. Upon termination , CIRSA shall promptly transfer all files
and documents of CIRS>./WC to such parson or entity as the CIRSA/WC
Board may direct.
2. Office Space. crasA/WC shall occupy space provided by CIRS>.,
the rental value of ~h ich is included in the an nu al sum o~ed to
CIRSA.
J. services. CIRSA s .,all retain an Executive Director and other
staff members to provide or arra~ge for provision of manage::,ent
services to CIRSA /WC including the following :
(a)
(b)
(C)
(d)
(e)
(f)
(g )
mgtserv. ea
Bookke ~ping services .
Preparing financial statements .
Preparing necessary reports on claims, incidences an d
loss prevention not provided by other service providers.
Recording end depositing of payments.
Providing information to potential members.
Responding to inquiries from existing and potential
member s.
Reviewing claims with members .
-l-
(w) caveloping and iml)le :n enting a risk ma nag e ment progran for
ClRS/1/WC, subject to approval of the CIRSA/WC Board.
(x) Maintaining the accounts, books and records of the Pool
in a manner consistent with generally accepted accounting
principles and consistent with sound insuranc e accounting
principles, including a full and complete set of
statutory accounting records (general ledger, cash
receipts and disbursement journals, and other subsidiary
records necessary to maintain all financial information).
(Ii :.Lt.a.i.11i n-:t f i Je:~t y ~ov cc uge f v1· t.ht Exc ~u Li v ~ Diri;!..;t,oc
of and staff providing services to CIRS/1/WC in an amount
mutually acceptable to the parties hereto, and supplying
a copy of the bond to the CIRSA/WC Board and the
Insurance Comm:.ssioner ot Colorado . The bond must
include a thirty day notice of ternination by reyistered
mail to the Insurance Commissioner of Colorado.
(z) An nua lly pre par i ng a draft bud g e t f o r c cn siderat io n b y
the CIRSA/WC Board, to be c on pleti,d on such date as t h e
CIRS/1/WC Board may direct .
(aa) Maintaining or providing for the m21bter,ance of necessary
claim files and supporting rep~rts .
(bb) Providing the Insurance Cor:i ::i.iss i 1.:me::-of Co l o !'ado access
to all accou nts a nd r ~c o rd s by CI RS !\/liC an d p rov ::ling
acc o~n oda tion s dur ing a ny ex an i na t ion .
(cc) Subject to the di re c tion of t he CIRS~./li C Boa r d , d oing a nd
perform i ng s 'Jch o t he r, fu r ther a :1d a dd i ~ional th i ngs,
acts and duti e s as a=a gen ~r a l ly done a nd perfcr~ed by
pe~sons or e ntities adninister ing and i ~ple~e nti ng s elf-
i ~s u rance pools o f t h is natura .
4. Ot h er Service Providers . Nothing i n this agreement is
intended to rr,ake CIRSA, its officers or employees, l i able for the
er.-rors, omissions, negligence , or other torts of CIRS .)./WC' s claims
administration s ervice o r of an y other contract serv ice prov ider
to CIRSA /WC; and no such liabili t y shall e x ist. CI RS/1 shall not
be responsible for the duties assigned to CIRSA /WC's other servi ce
providers pursuant to contract or decision of the CIR SA /W C Board .
s. Amend men t s. This Agree nent ma y be a mended by written
agreement of the CIRS/1 Board of Directors (hereafter "CI RSA Board")
and the CIRS/1/WC Board.
mgtserv.88 -3-
6 . Reimbursement for ,;~.
(a) CIRSA/l~C shall pay CIRSA, for all s erv i ces rendered und e r
this Agreement on and after January l, 19 89, a total
annual sum which shall consist of all e xpenses reasonably
associated with CIRSA' s administration of CIRSA/WC, as
determined annually and approved by the CIRSA Board and
the CI RSA/WC Board. Services rendered under th i,:
Agreement in 1988 only, CIRSA/WC shall pay CI RSA a total
annual sum of $79,700.00. The CIRSA Board shall
determine no later than January Jl, 1989, whether the
CAµt1:.:>cs l '~a::>"-'r1J ~.i.J' a:;izc,.;i.\.!L ..:..! ·,;i t !1 c:~.:.~~':::
administration of CIRSA/WC during 1988 exceeded th e sum
of $79,700.00 and the amount of a~y such e xc ess .
Not·;ithstanding any other provision of this agree men t or
of CI RSA/WC' s Bylaws and Intergcvernmental Agreement,
that amount shall be an obligation of and be paid by t he
members of CIRSA/WC, which were members during 1988.
Such payment shall be made only by deduction from a ny
c redit s given me:,,ber s pu rsua nt t o ~.rt icle r:< of t he
CI PSA/WC Bylaws and Intergov ernment al Agr e ement or
otherwise, unless a me:nber withdr aws or is expelled pr i or
to any s uch credit being given, in wh ich e vent the
payment from that member shall be i mmediately due.
(b) CIRSA/WC shall pay CIRSA an amount for 1988 ad :,,inistra-
tive servic es, i n addit icn to the $79,7 00 estab lished in
paragraph (a) of this pa r agraph 6, to b e c o ll ected from
nunicip a lities which are not a~ong :~e t h irt y -ei;ht
initial members of CIRSA/KC but which jcin CIR S~/XC in
19 8 3, t hat a nou nt to be equa l t o 7 . 5~% o f ea ch such
mun icipal ity's contr ibu tion to CIR SA /WC 's less fu nd.
( c) In determining by January J l, 1989 whethe r CI?S ,>.' s
expense s reasonabl y associa t ed with CI RSA 's ad minis:ra -
t ion of CIRSA /W C during 1988 exceed the s um of $79 ,700,
as prov ided in paragraph (a ) of t hi s paragra ph 6, t he
sum of $79,700 s ha ll f i rst be in creased by an a1'\ount
collected pursuant to paragraph (b). An y excess amount
to be paid by the 1988 me mbers of the CI RSA/WC shall be
all oc a ted among th ose r.1er.1bers in pro po rtion to their
in itial contribution to admin istrative e xp e ns es t or 1988
and shall be collected as provided in para gr aph (a).
7 . Cancellation. Up on cancellation or te rm i na t ion , at l "ast
thirty (JO) da y s advance wri t ten · noti c e will be provid ed to t he
Insurance Co mmi ssioner of Color ado by Ci RSA/WC .
a . Countercarts. This Agreement may be e x e cuted in c oun terparts.
mgtserv.88 -4 -
9. General Provisioni . This agreement contains all agreement :;,
understandings, and arrangements between the parties and no others
exist. All previous agreements, understandings, and arrangements
between the parties are terminated by the Agreement .
By these signatures, the parties agree to all the terms, condi-
tions, and provision of the Agreement.
CIT\'/TCWN OF ___________________ , CJ!..C:-.. ",!:'C'
By : _____________ _ Date: _________ _
Mayor
ATTEST :
Name
Title
Date
CO LORADO INTERGOVERNMENTAL RISK SHARING AGENCY
By : _____________ _
Chairman
Date: _________ _
mgtsarv. 88 -s-