HomeMy WebLinkAbout31547 / 81-06September 17, 1981
� 6 RESOLUTION
PURPOSE: AUTHORIZE JOININ6 A JOINT TRANSIT INSURANCE PROGRAM
INITIATED BY: CITY ADMINISTRATION
BE IT RESOLVED by the Common Council ot the City of Oshkosh that the proper
City officials are hereby authorized and directed to enter into the following
3:r`.3C:'•8u Rgreere,�_ cr0u�i^y d i�u,iii:ij.ai ?iB,:iiii ii�5�lici�CE Cidl�itiiSiGl� d��II
entering into a joint transit insurance program for 1982 at a cost not to
exceed $45,993•D0.
BE IT FURTHER RESOLVED that money for this purpose is hereby appropriated •
from Account No. 728-151, Bus Utility, Prepaid Insuranca.
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� � State of Wisconsin
August 25, 19A1
� M ��le
` DEPARTMENT OF TRANSPORTATION ' s
Division of Transportation Assistance ������se .
°...r•.
�/ (HO-� BUREAU OF TRANSIT
l� � 4802 Shsboy9an Awnu�
P, O, eox 7914
MaCison, W I 53707
(608) 267-J350
�9iiliam D. Frueh, rity Manager
City of Oshkosh
P.O. Rox 1130
Oshkosh, 1Nisconsin 54901
This letter follows my letters of July 3 and August 5, 1981 and requires action by your
Common Council.
In conjunction with Phase II of the vehicle insurance study, we are enciosin� the
following information which requires your immediate attention:
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Agreement forming a yiunicipal 7'ransit Insurance Commission.
Participation Decision 'It�ee, which outlines the steps your municipality will go
through in deciding to participate in the Commission. (Exhibit A)
o An estimate of the premium your municipalitp will pay b,y participating in the
Commission's joint vehicle insurance oro�ram. ALso shown are your present
transit vehicle insurance coverages and costs. iExhibit B)
The participation decision process is deseribed as follows:
1.
2.
By October 15, 1981, you must decide whether, based on the enclosed premium
estimate, you would enter the Commission's joint vehicle insurance program.
For those municipalities electing to enter the Commission, the actuel cost wiil
be developed and reported to you bp November 2, 1981.
3. At that time, you will fall into one of two groups:
Group A. The actual cost is equal to or less than the enclosed estimate.
Group A municipal transit systems will automatically enter the
Commission's joint vehicle insurance pronram, which will be effective
January 1, 1982.
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Group B. The actual cost is greater than the enclosed estimate. You still ma,y
elect to enter the pro¢ram. However, you are not obligeted to enter
the program and may elect to withdraw from the Commission at that
� time.
Naturally,,you are also concerned with the covera�e and services (claim handlin�,safety,
etc.) your transit property will receive under the Commission's program. Covera�e will
be at least as broad, and in many cases broader than you presently have. Also, the
insurer ultimately selected must demonstrate its established ability to provide quaiity
services to Commission member transit properties.
To ensure coverage and service capabilities, a study committee, consistin� of transit
managers from Appleton, Eau Claire, Fond du Lac, Green Ray, Janesville and Racine, has
been formed. This committee, workin� closely with the Tlepartment of 'fi�ansoortation
and a consultant, has been carefully reviewing the qualifications of several insurers,
agents and brokers.
From an initial list of eleven insurance providers, the committee has selected two �rms
to develop actual vehicle insurance costs for the particioating municipal transit
svstems. The seleeted firms are:
o Marsh & MeLennan, Inc. — Insurance brokers based in Milwaukee end Appleton.
o Nausau Insurance Companies
From the proposals submitted bY these firms, the committee will select the best program
for the Commission members.
The Department of Transportation believes the joint insurance program will produce the
best long-term vehicle insurance program for Wisconsin municipal transit properties.
*Iot only do we expect to reduce the costs of vehicle insurance, but also to provide a
more stable insurance source while improving coveraqe and services.
Please review the appended items, along with mv letter of July 3, and Augvst 5, 1981.
Please call me at (608) 266-1379 or Michael Kaddatz at i714) 752-1058 if you have anv
questions.
Please note the agreement requires action by your Common Council. We must have the
signed agreements returned to us no later than October 15, 1981.
Thank you for your cooperation.
Sincerely,
� a...., a..
�\�_���. � �
James A. Beekwith, Chief
Public 'I�ansit Section
cc: 71�ansit Manager
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AGREEMENT PROVIDING FOR THE CREA1'ION
OF A MUTIICIPAL TRANSIT INSURANCE COMMLSSION
WHEREAS, sec. 66.30, TNis. Stats., provides that any municipality may
contract with other municipatities for the joint exercise of an,y power or duty requiced or
authorized by state law;
WHEREAS, the Wisconsin Department of 'il�ansportation has determined that it
is in the best interest of the state to encourage adequate insurance of state-aided
municipal transit systems at the best possible priee;
WHEREAS, the Wisconsin Department of 'Iiansportation has funded vehicle
insurance studies covering the transit systems of the foilowin� municipalities:
Appleton
Beloit
Fau Claire
Fond du I,ae
Green Bay
Janesville
La Crosse
Renosha
Manitowoc
Merrill
Oshkosh
Racine
Rice Lake
Sheboygan
Stevens Point
Watertown
Waukesha
Wausau
WHEREAS, the Wisconsin Department of '[t�ansportation has set up a municipal
transit insurance study committee consisting of representatives from the Cities of
Appleton, Eau Claire, Fond du Lac, Green Bay, Janesville and Racine;
WHEREAS, it appears that, if the municipalities join together to purchase
transit vehicle insurance, such insurance might be available at a significant savings
compared to the present transit insurance costs of each municipality;
WHEREAS, the study committee has provided the municipalities named above
with estimated premiums and related services associated with a joint insurance program;
and
WHEREAS, th'e mimicipalities joining in this agreement have reviewed the
estimated premiums and find them to be comparable to or better than those currently
being provided by our present transit insurance program;
Now, THEREFORE, the municipalities joining in this agreement, in
consideration of the mutual benefits, covenants and agreements herein, and acting
pursuant to resolutions adopted by their respective governing bodies, agree to act
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together to determine the actual cost of a joint insurance program, and if the cost is
equal or better to the estimated premium, to enter into a joint insurance program for an
initiel period of at least three Vears as herein described:
1. Effective date. This agreement shaii take effect when a number of the
municipalities listed below whose transit vehicle insurance premiums for the most recent
12-month period totals at least 5250,000 have entered into this agreement, but not
before November 2, 1981. Notification as to the status of the agraement will be mede in
writin; to each municipality no later than November 15, 1981.
Appleton
Beloit
FBU Claire
Fond du Lac
Green Bay
Janesville
La GYosse
Renosha
Manitowoc
Merrill
Oshicosh
Racine
Rice Lake
Sheboygan
Stevens Point
Watertown
wa��na
Wausau
2. Definitions. (a) Board means the board of commissioners of the
�Vlunicipal Transit Tnsurance Commission.
(b)
(c)
village board.
(d)
Commission means the Municioal 7'ransit Insurance Commission.
Governing body means county board, common council, town board or
Insurance coverage or insurance program means one or more commercial
insurance contracts.
(e)
(f)
committee.
(g)
Municipality means a county, city, town, village or any agency thereof.
Study committee means the municipal transit insurance study
1Yansit system means an organization providing transportation by bus or
shared-ride taxicab to the public on a regular and continuing basis.
(h) WLSDOT means the Wisconsin Department of 'It�ansportation.
3. Purpose and coverages. The purpose of the Municipai 7tansit Insurance
Commission is to administer a joint insurance program for its members. The coverages
provided for may include protection for motor vehicle liability, motor vehicle physical
damage, and such other areas of coverage as the study committee may deem advisable.
4. Initial membership. Each municipality initislly entering this agreement
shall receive in writing individual actual insurance premiums. The municipality shaIl be
bound to the joint insurance program unless the actuai premium for the first year
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exceeds the estimated premium provided earlier by the study committee. If the actual
premium excee�ls the estimate, a municipality may nevertheless elect to proceed with its
participation in the insurance program by informing the study committee in writing of its
decision within 30 days of the notice of tfie actual premium, or it may withdraw from
this agreement.
5. Membership eli�ibility and procedure. The initial membership in the
commission shall be restricted to the municipalities named in paragraph 1 who execute
this agreement and do not withdraw under paragraph 4. An,y other Wisconsin
municipality which owns a trar�sit system is eligible for membership in the rnmmission
upon adoption by the governing body of the m�micipality of a resolution which ratifies
this s�resment and upon approval of the board through a majority vote. The commission
may set the effective date of new memberships to coincide with the beginning of new
policy periods.
6. Financiel contribution. Any member municipality which fails to comply
with par. 24 (payment of allocated premium) shall, upon resolution of the board, cease to
be a member in good standing, and its representative on the boerd shaIl be ineligible to
vote until payment is made.
7. Withdrawal. Except as provided in paragraphs 4 and 22, no member
municipality may withdraw from the commission during its initial 3-year period of
membershio. 'T'hereafter, a member municipalitp may withdraw from the commission
upon 12 months' advance written notice to that effect.
8. Cancellation. The commission shall have the right to cancel any member
municipality's participation in the commission upon a two-thirds vote of the board.
9. Commissioners. Each member municipality shall name one commissioner
to the board by a process of its own choice. Each commissioner shail have one vote.
1�. Commissianers' terms. The commissioners shall serve for a pe�iod of 3
years, except that the initial terms shall be staggered so that approximately one-third of
the initial terms are for one year, one-third for 2 years and one-third for 3 years.
11. Compensation. Commissioners shall not be paid salaries or expenses b,y
the commission.
12. Removal. A commissioner may be removed from office by a two-thirds
vote of the board or by the appointing municipality for misconduct, malfeasance, neglect
of duty in office or for other good cause. Any vacaney so ereated shall be filled as
provided in par. 14.
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13. �ccession. A commissioner shall hold office untii his or her successor
has been appointed.
14. Vacancies. Vacancies on the board shall be filled by the appointing
municipelity within 60 days after the occurrence of the vacancy, or by the board within
30 days thereafter if not made within such period.
15. Of�cers. 7'he boerd shall meet and elect one of its members as
ehairman, one as vice-chairman, one as secretary and one as treasurer. The posts of
secretary and treasurer m ay be held b,y one m ember, at the discretion of the
commissioners. Each office shall be held for the term of the commissioner or 3 years,
whichever is shorter.
16_ Quorum. A quorum shall be a majority of the member municipelities,
each represented by one commissioner, but an,y number of commissioners may adjourn a
meeting to a later date.
17. Ma'ori . All resolutions, ordinances and by-laws must be approved by a
majority of the commissioners.
18. -laws. The Chairman shall have the power to designate a committee
to draft by-laws. By-laws shall contain the committee structure, the rights and
responsibilities of inembers, and ;eneral operating procedures of the commission.
19. Powers of the commission. The commission in acting under this
agreement may exercise the powers granted b,y law to its member municipalities. If
these municipalities have varying powers or duties under the law, each may act under the
agreement to the extent of its lawful powers and duties. This paragraph shall supercede
' any conflicting provisions and shall be liberally construed. The commission especially
possesses all powers of the member municipalities relating to the solicitation and
evaluation of proposals for the insurance of public transit systems, as well as the
purchase of sueh insurance. The commission's powers include, but are not limited to, the
power:
(a) To conduct or contract for insurance studies and planning, and to
coordinate these plans with any other political subdivison or public agenev;
(b) To employ an executive director, consultant, or such other employees as
it deems desirable to accomplish its purposes;
(c) To enter into contracts with WLSDOT for consultation or other services;
(d) To make, amend and repeal all by-laws, rules and regulations not
inconsistent with the purposes of this agreement as deemed necessary to the discharge of
the powers, duties and funetions of Lhe commission.
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ie)To do all acts and thinqs necessary or convenient for the conduct of its
business and the general welfare of the com mission in order to carry out the powers
�ranted to it by this agreement or anV other law.
2Q. Intst�overnmas*.sl s�^�ements. The commission may enter into
agreements under sec. 66.30, Wis. Stats., and any future amendments to this section,
with any municipality, as defined in sec. 66.30, Wis. Stats., or with any orivate entity.
21. Duration. The term of the commission shall begin immediately upon the
effective date of this agreement and shall be perpetuel.
22. Dissolution. The commission may be dissolved by a two-thirds vote of
the board.
23. Premium determination. The commission shall procure levels and types
of insvrance coverage for its member mimicipalities determined by the board to be
advisable. The insurance coverages provided mav include those listed in par. 3 and such
others as the board may deem advisable. The coverage shall be in the form of individual
contracts between each member municipality and the underwriter unless the board
determines that a different format is advisable. The board sha11, annually by the
fifteenth day of October, determine the insurance coverages to be procured in the
following fiscal vear beginning on January 1 and shall approve the total premium for this
coverage. Allocation of the premium among the member municipalities shall be as
proposed bV the underwriter and accepted by the board. A summary of this information
shall be transmitted to the member municipalities.
24. Payment. Each member shall pay its allocated premium on the terms set
forth by the study committee, the board, and the insurer.
25. Public notice of ineetings. The commission shall notify each member
mimicipality and its official newspaper of regularly scheduled and specisl meetings,
submitting with such notice the time and place oF such meeting and copies of the
proposed agenda. The meetings shall be open to the public, and the board may establish
reasonable regulations to enable members of the public to be heard on any matter comin�
before the meeting.
26. Amendments. This agreement may be amended by a two-thirds vote of
the board. Amendments shall become effective when filed with each member
municipality.
27. Severability. If any article, section, subsection, sentence, clause or
provision of this agreement is held invalid, illegal or uninforceable, the remainder of this
contract shali not be affected.
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IN WTI'NESS WHEREOF, the City of, .�yisconsin, b,y
its C'ommon Council, has caused this agreement to be signed by , its
Mayor (City n7anager) and , its f;ity Clerk, this day
of , 1981.
City of
Nliseonsin
Bv:
Mayor City Manager
By:
City Clerk
State of jVisconsin )
1 ss.
Count,y of )
Personall,y came before me this day of , 1981,
, Mayor (City Manager) and , City Clerk, to
me know to be the persons who executed the fore�oing instrument and to me known to be
the Mayor (City A?anager) and City Clerk of the City of , and
acknowledged that they executed the foregoing instrument as such officers of the City
of , by its authority.
NOTARY PUBLIC, State of Wisconsin
County of
My commission expires
J
a
.4u�(uct ^l. 19P1
OctoDer 15, 19F1
NovemDer 2, 1981
Wisconsin'Vlunicipel Transit
Insurance Commission
PAR77CIPATION DF.CISION TREE
Systems Advised
Estimated Vehicle
Ireurence Premium
Decide
Whether to
Enter the
Trensit !re.
Commission
No Yes
Systems Advised
AMUSI Vehicle
Ins. Premium
Group A G�oup B
Actual Premium
Less than or
£quel to Estimate
Enter Commission'
Vehicle llaurance
Progrem
Smplemmt
Jenuary 1, 1962 Commiuion's Vehicle
I�urance Prcgrem
Yes
Exhibit A
Actunl Premium
Greater than
Estimate
to Enter
�(��_)
No
r �
Exhibit B
WISCONSIN MUIIICIPAL TRANSIT
INSURANCE COMMISSION ����
Fstimated Premium Eahibit
'ITansit System: Oshkosh
P_��tomobile ?�iab'isYy *..imiis
Present Piro�ram Commission's Pro�ram
Bodily Injury
Property Damage
Uninsured Motorists
Medical Paymentsl
$1,000,000
Included above
$15,000 each person
$30,000 each accident
Not covered
Automobile Physical Dama�e Deductibles
Present Pro�ram
Collision
Comprehensive
Specified Perils
TOTAL ANNUAL COSTz
51,000-1980 buses only
$0-1980 buses only
Not covered
Present Pro�ram
$61,288
$1,000,000 each occurrence
Included above
$15,000 each persofl
$30,000 each accident
Not covered
Commission's Pro�rem
Same as present
Same as present
Same as present
Commission`s Pro�ram
$45,993
1 (See above.) bledical payments coverage is not recommended for transit systems, as
it is costly and redundant with other coverages.
2 (See above.) Based on appended Fleet List.
3 You presently may have higher limits of liability coverage, either in your primary
auto policy or in an excess (or umbrella) policy. The Commission's program will
provide $1,000,000 liability limits. If you wish to maintain higher limits, which we
recommend, you can do so by:
-- buying excess coverage through local insurance sources, or
-- buying excess coverage through the Commission's sources.
4 Present liability program does not cover hired and nonowned vehicles. Commission's
program will not have this restriction.
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