2005/04/27 Council Agenda Packet

13 INTERLOCAL AGREEMENT CREATING THE WASHINGTON STATE TRANSIT INSURANCE POOL THIS AGREEMENT is made and entered into by and among the several Transit Systems of the State of Washington which are parties signatory to this Agreement (Collectively Member Transit Systems, and individual Member Transit System.) RECITALS WHEREAS, Chapter 48.62 RCW grants local governmental entities, including Transit Systems, maximum flexibility to enter into agreements with each other to provide joint programs,which include programs of joint purchasing of insurance,joint self-insuring, and joint contracting for or hiring of personnel to provide risk management, claims handling, and administrative services; and, WHEREAS, Chapter 39.34 RCW permits local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing needs and development of local transit systems; and, WHEREAS, each Member Transit System desires to join together with the other Member Transit Systems for the purpose of pooling self-insured losses and jointly purchasing excess insurance and administrative services; and, WHEREAS, it appears economically feasible and practical for the Member Transit Systems to do so; NOW, THEREFORE, for and in consideration of the mutual benefits, covenants and agreements contained herein, the Member Transit Systems agree as follows: Article 1 DEFINITIONS The following definitions shall apply to the provisions of this Agreement: A. Pool shall mean Washington State Transit Insurance Pool, a Washington Joint Purchasing Group created by Member Transit Systems. B. Executive Committee shall mean the Executive Committee of the Board of Directors of the Pool. C. Board of Directors shall mean the appointed members from each transit system. D. Insurance shall mean property and liability coverage through a group funded self-insurance program, commercial insurance, and/or participation in a captive insurance program. Liability insurance shall include coverage for claims arising from the negligent or other tortuous conduct of the member Transit Systems, their officers, employees, or agents, or any error or omission on the part of the member Transit Systems, their officers, employees or agents, as a result of which a claim may be made against a member Transit System. E. Excess Insurance shall mean that insurance purchased on behalf of the Pool over and above the amount of claims to be satisfied.itrectly from the Pool's resources. Z. 40