AG 08-155 - WCIA WASHINGTON CITIES INSURANCE AUTHORITY
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RETURN TO:
CITY OF FEDERAL WAY LAW DEPARTMENT
REQUEST FOR CONTRACT PREPARATIONIDOCUMENT REVIEW/SIGNATURE ROUTING SLIP
ORIGINATING DEPT ./DlY: L~.l )
ORIGINATING STAFF PERSON: Cd ~ \cJru('c1~fExT:
3. DATEREQ.BY:
TYPE OF DOCUMENT REQUESTED (CHECK ONE)
o PROFESSIONAL SERVICE AGREEMENT 0 SECURITY DOCUMENT (E.G. AGREEMENT &
o MAINTENANCE/LABORAGREEMENT PERFIMAINBOND; ASSIGNMENT OF FUNDS IN LIEU OF BOND)
o PUBLIC WORKS CONTRACT 0 CONTRACTOR SELECTION DOCUMENT
o SMALL PUBLIC WORKS CONTRACT (E.G., RFB, RFP, RFQ)
(LESS THAN $200,000) 0 CONTRACT AMENDMENT
o PURCHASE AGREEMENT) 0 CDBG
o ~::;:';;;~';,~~ C\trif'L4ro~r;;r 'ttJu(';tikilt W~ y-t1JYl) .
PROJECT NAME: ~') ~6'{"u.~1.ifY) 0\ ~\o.rd\"lC;
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NAME OF CONTRACTO
ADDRESS: - 0..
SIGNATURE NAME:
7. ATTACH ALL EXHIBITS AND CHECK BOXES 0 SCOPE OF SERVICES 0 ALL EXHIBITS REFERENCED IN DOCUMENT
o INSURANCE CERTIFICATE 0 DOCUMENT UTHORIZING SIGNATURE
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TERM: COMMENCEMENT DATE: q \
COMPLETION DATE:
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9. TOTAL COMPENSATION $ (INCLUDE EXPENSES AND SALES TAX, IF ANY)
(IF CALCULATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: 0 YES 0 NO IF YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED 0 YES 0 NO IF YES, $ PAID BY: 0 CONTRACTOR 0 CITY
o PURCHASING: PLEASE CHARGE TO:
INITIALIDATE APPROVED
INITIALIDATE APPROVED
10. CONTRACT REVIEW
o PROJECT MANAGER
o DIRECTOR
. 0 RISK MANAGEMENT (IF APPLICABLE)
~LAW
11. '. CC9. NTRACT SIGNATURE ROUTING
~LAWDEPARTMENT
ZCITYMANAGER
~~:~~~BACKg' ORCHNATING DEPT. ~
~ ASSIGNEDAG# 0 '"155 _
COMMENTS
02/08
INITIALIDATE APPROVED
INITIALIDATE APPROVED
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Memorandum of Understandine:
This Memorandum of Understanding (Memorandum) is made and entered this day by and
between the City of Federal Way (Federal Way) and Washington Cities Insurance Authority,
(WCIA) to clarify Federal Way and WCIA responsibilities under the WCIA Deductible program.
Federal Way, as a current member ofWCIA, has qualified and has exercised its option to
participate in the Deductible Program and will maintain a $100,000 deductible level per
occurrence.
I. CLAIMS ADMINISTRATION
During the period or periods of Federal Way participation in the Deductible Program,
WCIA shall continue to represent and act for Federal Way in matters pertaining to the
automobile, errors & omissions, police and general liabilities of Federal Way, including
the following:
A. Receive notice of, create files on each claim reported, and maintain these files for
Federal Way. Each claim file shall be maintained to reflect current liabilities, value,
recommended disposition, and desirability of risk.
B. Investigate and/or defend all claims submitted to WCIA by Federal Way to
determine their liability and settlement or verdict value.
C. Request timely payment to WCIA, in accord with payment procedures established
herein. Federal Way will be wholly responsible for providing payment as may be
required for any claims assessed against it, up to $100,000 per occurrence, and/or in
excess of or upon exhaustion ofWCIA liability coverage.
D. Maintain and provide Federal Way pertinent loss data and reports on all claim
payments.
E. Report to Federal Way the status of claims in a timely manner.
ll. PAYMENT OF CLAIMS
A. Federal Way shall at all times provide funds to WCIA adequate for the payment of
qualified claims or losses and of allocated loss expenses within Federal Way
$100,000 per occurrence deductible to a Deductible Fund (Fund) managed by
WCIA. For this purpose, allocated loss expenses shall mean all costs, charges or
expenses of third parties, incurred by WCIA, its agents or its employees, which are
properly chargeable to a qualified claim or loss including, without limitation, court
costs, fees and expenses of defense attorneys, independent investigators, experts and
witnesses, and fees for obtaining diagrams, reports, documents and photographs.
B. The initial deposit to the Fund shall be $25,000 payable on or before October 8,
2008. WCIA will periodically analyze the sufficiency ofthis amount and may
require Federal Way to adjust the deposit amount to more accurately represent cash
flow demands placed upon the Fund.
C. WCIA will provide Federal Way with monthly reports detailing all expenditures
charged to this Fund. Federal Way will have ten (10) working days from the date of
this notification to reimburse the Fund to its required deposit level, as established in
clause B above, by wiring funds to WCIA's bank account.
D. In the event that the Fund is impacted by an unusually large volume of current or
pending claims or expenses, and upon special notice from WCIA detailing the nature
of this unusual demand and the amounts thereof, Federal Way will wire transfer the
requested amount within ten (10) days to avoid the possibility of a negative balance
in the Fund.
E. It is expressly understood that WCIA shall not be required to advance its own funds
to pay losses, allocated loss expenses, or banking charges within the deductible level,
or to perform any services hereunder if Federal Way fails to provide adequate funds
as herein set forth.
F. Reimbursement of the Fund not received within ten (10) days of written notification
will be charged a finance fee of 1 %.
HI. TERM
This Memorandum shall become effective on September 1, 2008 and shall continue to be
in force as long as Federal Way continues as a WCIA member participating in the WCIA
Deductible program.
IV. GENERAL PROVISIONS
A. WCIA shall continue to have full authority to negotiate and resolve through
settlement or litigation, all claims within Federal Way's deductible level, and up to
WCIA coverage limits, without prior approval from Federal Way. WCIA staff,
where possible, shall receive and review City input with city staff and/or Council as
requested by the City prior to settlement or trial of all losses, The City shall be
included in the Executive Committee's loss resolution activity.
B. WCIA shall continue to have full authority to appoint and retain defense attorneys to
defend Federal Way on any claim or lawsuit tendered to WCIA under this
Memorandum and to control the defense of said claims or lawsuits. WCIA will
consider defense counsel as proposed by Federal Way regarding losses anticipated to
be resolved within the deductible.
C. All claims and related files generated by WCIA as a result of its activity under this
Memorandum shall remain at all times the property ofWCIA. All such files will be
available at WCIA offices for review and inspection by agents of Federal Way.
WCIA will assist the City regarding its public disclosure requests by presenting
appropriate data for its potential information release. WCIA will be responsible for
its own response to disclosure requests of its own data.
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It is understood and agreed by the parties that a claim has been created when the
incident, accident, or event-giving rise to the claim has occurred, per the definition of
occurrence within the Coverage Document. The fact that the claimant may not report
the claim until some subsequent time or that Federal Way might not report it to
WCIA until some subsequent time does not change the meaning of when the claim
occurred for purposes of this Memorandum. Any claim that occurs during a coverage
year in which Federal Way is a participant in the Deductible program shall be
administered and handled by WCIA per the provisions of this memorandum,
D. Nothing in this Memorandum changes, alters or relieves WCIA or Federal Way of
their duties and obligations as set forth in the WCIA Interlocal signed by all member
cities ofWCIA, or the Bylaws, Joint Protection Program and Coverage Document
approved by the membership.
E. Any changes in deductible status or levels cannot be implemented until the
conclusion ofthe calendar / fiscal/coverage year.
F. Federal Way shall keep the Fund replenished until all claims covered under this
Memorandum have been fully resolved or release WCIA from any further liability to
administer, defend, or pay said claims within the deductible layer.
WASHINGTON CITIES INSURANCE AUTHORITY
1//2,1/00
Date
LE
CITY OF FEDERAL WAY
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By:
City Manager, Neal Beets
PO Box 9718
Federal Way, WA 98063-9718
FederalWayDeductible MOD
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