BACKGROUND (CONT'D)
At its November 15, 2018 meeting, CHWCA's Executive Committee reviewed various proposed changes to CHWCA’s governing documents, including the By-Laws, the Financial Stability Plan, the Underwriting Guidelines and the Joint Powers Agreement. Changes to the first three were approved by the Executive Committee, as it is empowered to do. Changes to the JPA Agreement, however, require approval of two-thirds of the CHWCA Members, acting through their governing bodies. Hence, this Board Order and attached Resolution.
The proposed changes are considered relatively modest, and are as follows:
- Update language to capture technical differences in the terms “reinsurance” and “excess insurance;”
- Clarify intent as to discontinuing business if a meeting quorum is lost;
- Replace the self-insurance term “contribution” for the insurance term “premium;”
- Clarify intent in the liability and indemnification article;
- Update a stale reference to a Government Code section.
In addition to the required Resolution, attached to this Board Order are the November 15th staff report to CHWCA's Executive Committee in support of the proposed changes, along with a copy of the JPA Agreement that highlights the proposed changes.
FISCAL IMPACT
None. The proposed changes are minor grammatical, clarifying and technical corrections.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to approve the proposed changes to CHWCA's JPA Agreement, this could delay the improvement of CHWCA's existing Agreement.
CLERK'S ADDENDUM