Sec. 128.106. - Withdrawal of Participating Independent Agencies from the Self-Insurance Program.

As described in Section 128.105 (a), a Participating Independent Agency once admitted to participate in the Self-Insurance Program, may not withdraw from the Self-Insurance Program without the consent of the City Council. Further, the City Council's approval of such withdrawal shall designate whether the withdrawing Participating Independent Agency agrees to: (a) Assume Administration of their Existing Claims by agreeing to assume control of, responsibility for, and payment of all existing claims the City was administering in the Self-Insurance Program as of the effective date of the Participating Independent Agency's withdrawal. All funds being held by the City for the payment and administration of the outstanding Claims shall be returned to the withdrawing Participant. However, the withdrawing Participant shall: (1) Remain obligated for any Assessments payable by the Participant under Section 128.309 that accumulated prior to the date of the Participant's withdrawal; (2) Remain entitled to any Dividends which are payable to the Participant under Section 128.311 that accumulated prior to the date of the Participant's withdrawal; and (3) Forfeit all and shall not be entitled to any refund of contributions made to the Self-Insurance Operating Reserve; or (b) Pay the City for Continued Administration of their Existing Claims by establishing a funding agreement with the Director to provide for a means of funding Claim Costs and Administrative Expenses associated with administering the existing Claims of the withdrawing Participant as of the effective date of the withdrawal, until all Claims of the withdrawing Participant, that had been presented to the Self-Insurance Program prior to the date of the Participant's withdrawal, are closed and paid in full. Such funding mechanism shall be calculated subject to the following criteria: (1) The funding mechanism shall utilize actuarially sound methodology; (2) In addition to the estimated liability for payment of outstanding Claim liabilities, the City shall be entitled to charge administrative fees to the withdrawing Participant, which can be assessed annually for all claims which remain open. These administrative fees will be based on the Administration Expenses calculation formula for then-existing Participating Independent Agencies; (3) The withdrawing Participant shall not be entitled to any refund of any contributions made to the Self-Insurance Operating Reserve; and (4) As Claims are closed, any excess fund balances attributable to the closed Claims shall be returned to the withdrawing Participant on an annual basis. Such funds due to the withdrawing Participant can either be paid directly to the Participant or applied as a credit to any amounts due to the City for continued administration of open claims. (Ord. 2018-380-E , § 2)