Board Packet-July

 
 

  
Library Rules of Conduct 
[D​ RAFT]​  

______________________________________________________________________________ 
Date approved: 
Date reviewed: 
  
Codes and Laws: 
RCW 27.12.270 Rules and regulations -- Free use of libraries 
RCW 27.12.290 Violators may be excluded 
RCW 49.60.218 Use of dog guide or service animal 
 
  
Related Policies: 
NCWLibraries Trespass Notice  
 
Purpose 
North Central Washington Libraries (NCW Libraries) welcomes every member of the 
community to use and enjoy the library system’s facilities, collections, programs, and services. 
This policy establishes rules of conduct for patrons and defines prohibited behaviors that could 
be expected to interfere with the safe, secure, pleasant, and respectful use of NCW Libraries 
facilities. 
  
These rules of conduct guide staff in maintaining an environment that encourages all patrons to 
use NCW Libraries facilities in an appropriate and respectful manner. All patrons, regardless of 
age, are expected to follow the rules of conduct set forth in this policy. These rules of conduct 
apply everywhere NCW Libraries provides service, including, but not limited to, on or at all 
Library property, in the community, on the website or social media, and by phone, chat or 
email. Each patron at or using NCW Libraries’ facilities is responsible for his/her safety, the 
safety of children in his or her care, and the security of personal belongings. 
 

 
  
 

 
Statement of Policy 

1. Patrons are prohibited from engaging in disruptive behavior when accessing library 
property, facilities, or services. Disruptive behavior includes any behavior that may 
unreasonably interfere with any NCW Libraries activities, facilities or other property, or 
the comfort or safety of library patrons or staff.​ Whether conduct is deemed 
unreasonable is to be determined by NCW Libraries staff at their sole discretion. 

2. Disobeying the direction of an NCW Libraries staff member or authorized designee 
when asked to stop a disruptive or prohibited behavior, or when requested to leave for 
violations of this or other NCW Libraries policies, rules, or regulations may result in a 
restriction of library privileges.   

 
 
The following are non-exclusive examples of conduct not allowed on, at, or using library 
property: 

● Behavior that is unsafe, disruptive, or prohibited by law 
● Using hostile, aggressive, or vulgar language or gestures 
● Behavior that is likely to cause personal injury to one’s self or others 
● Consuming alcohol on the premises, or being visibly intoxicated or impaired due to 

alcohol or a controlled substance 
● Using library materials, equipment, furniture, building, or grounds in any manner that 

is inconsistent with normal library use 
● Odor on one’s person, clothing, or belongings that is so strong as to interfere with 

others' use and enjoyment of the library 
● Wearing insufficient clothing (e.g. no top, no bottom, no shoes) while in the library 
● Interfering with staff or library patron access to or exit from library premises 
● Soliciting (e.g. sales, canvassing) 
● Bringing animals other than service animals into the library - exceptions may be granted 

for programming purposes 
● Using tobacco products or electronic cigarettes in library facilities 
● Using electronic devices in a manner that is disruptive to others 
● Leaving personal belongings unattended 
● Trespassing in non-public areas of the library 
● Neglecting to provide proper supervision of children (see Library Policy, Unattended 

Children) 

 

The following observable behaviors and activities are prohibited on, at, or using library 
property by federal, state, local, or other applicable law: 

● Smoking within 25 feet of a library entrance 
● Viewing or printing illegal materials 
● Selling or using alcohol or drugs 
● Threatening or harassing behavior (e.g., fighting or threatening to fight, brandishing a 

weapon, stalking, or verbally threatening to harm others or their property) 
● Physically or verbally assaulting staff, volunteers, or other library users 
● Sexual misconduct or harassment (e.g., exposure, offensive touching, sexual acts) 
● Theft of library materials or items belonging to the NCWLibraries or others 
● Tagging or other vandalism 

  
 

Enforcement 

Authorized library staff, contractors, and/or law enforcement officers may intervene to stop 
prohibited activities and behaviors. Failure to comply with these rules may result in: 

1. Withdrawal of a person's permission to remain on Library property and/or 
2. Issuance of a Notice of Trespass from Library property for a period of one day up to one 

year, as provided in policies and procedures issued by the Trustees of NCW Libraries. 

A criminal law violation may also result in arrest and prosecution. Violations of law and/or 
these rules may also result in the restriction and/or termination of library privileges, including 
the use of mail order services, library computers, and other equipment. 
  
Administrative Review and Appeal of a Notice of Trespass 
An individual who has received a Notice of Trespass may, within 10 days, request an 
administrative review of a trespass order.   
 
 

  
 
Executive Director’s Report 
July 25, 2019 - Wenatchee, Washington  

 
Wenatchee library​:  
On July 9, contracts were signed with Rhine Demolition to begin asbestos abatement on July 22. 
It will be about a 5 week process. We are going to bid on the renovation project within the next 
two weeks.  
 
Winthrop library​:  
On July 1st Denise, Jim B., Kim, Angela, and myself met with representatives of the Winthrop 
Friends on July 1st to shore up some details about building and collection size. I included the 
meeting notes in the consent agenda.  
 
Angela, Sharon Reddick, and Sally Portman attended a community meeting on Saturday July 
13th.  
 
Public Libraries of Washington (update)​:  

● State Librarian asked the Executive Directors to consider inviting local legislatures to 
our libraries to be apart of programs or to just given a tour to show them the holes we fill 
in the community.  

● 1% levy limit - amend the tax cap to include inflation.  
● There is a small push being made to change the statute for a 3rd degree assault - to 

include county and city employees (including librarians) 
● A statewide Broadband Consortium (B​ eyond Our Doors, Connecting for a Broader Future)​ will 

be held on September 23-24, 2019 in Wenatchee at the Convention Center.  
 
Library facilities (Angela): 
  
 
 

North Central Regional Library
Finance Committee
July 22, 2019

• Financial Statements
o Revenue
o Expenses
o Endowments
o Investments
o Invoices

• Payroll system update

• Purchasing policy
• Investment policy
• Travel policy – lodging

• Surplus items

• Budget schedule

North Central Regional Library
General Fund - Revenue Budget

2019

County not closed as of 7/10.

BARS Description Amended 2019 June Revenue to Budget Unspent Percent
Budget Revenue Revenue
Date (Over)
to Date

Property Taxes & Other Taxes $ 12,097,000 $ 1,071,228 6,865,781 $ 5,231,219 57%
311.* Property Taxes 75,000 - 75,000 0%
317.20 Leasehold Excise Tax 15,000 - 15,000 0%
317.40 Private Harvest Tax
Property Taxes & Other Taxes Subtotal 12,187,000 1,071,228 6,865,781 5,321,219 56%

Intergovernmental Revenues 5,000 8,537 2,674 2,326 53%
332.15 PILT Fish & Wildlife Service 13,000 756 10,351 2,649 80%
335.02 Forest Excise Tax 19,570 (14,570) 391%
336.02 Fish & Wildlife State Pilt 5,000 3,544 46,406 18,594 71%
337.07 In Lieu 65,000 12,837 79,002 8,998 90%
Intergovernmental Revenues Subtotal 88,000

Charges for Goods & Services 5,000 1,664 6,537 (1,537) 131%
341.81 Word Process/Print/Duplication Services 70,000 34,550 35,451 49%
341.93 City of Wenatchee - Building Agreement 14 11%
347.20 Library Use Fees - General 1,000 2,470 114 886 45%
347.20 Town of Coulee City - City Contract 11,000 41,205 4,939 6,061 47%
347.20 City of Ephrata - City Contract 175,000 27,132 82,411 92,589 46%
347.20 City of Omak - City Contract 117,000 19,712 54,263 62,737 46%
347.20 City of Warden - City Contract 85,000 39,424 45,576 55%
347.20 Town of Wilson Creek - City Contract 826 1,652 1,348 48%
Charges for Goods & Services Subtotal 3,000 93,023 223,890 243,110
467,000

Fines Library Fines 18,000 1,953 8,516 9,484 47%
359.70 Fines Subtotal 18,000 1,953 8,516 9,484 47%

Miscellaneous Revenue 45,000 1,146 62,207 (17,207) 138%
361.11 Investment Interest 5,000 - 5,000 0%
367.11 Gifts, Pledges, Grants from Private Source 1,322 - 0%
367.11 E-Rate Program 15,000 2,961 15,000
369.10 Sale of Scrap or Junk 40,000 5,429 10,958 29,042 27%
369.90 Other Miscellaneous Revenues 35,000 31,526 90%
Miscellaneous Revenue Subtotal 140,000 104,691 3,474 75%
35,309
Grand Total Revenue $ 12,900,000 $ 1,184,470 $ 7,281,880 $ 56%
5,618,120

7/15/2019-1:10 PM

Description North Central R
General Fund - E

201
County not clos

2019 Budget

Administration $ 761,00
1 Salaries & Wages
2 274,00
3 Personnel Benefits
4 5,00
5 Supplies 5,00
7 Supplies
8 40,00
9 Professional Services 6,00
10 Memberships
12 Travel 15,00
13 Advertising 1,00
17 Miscellaneous 1,00
18 Services
22 63,00
23 Total Administration
$ 1,103,00
24
25 Public Service $ 4,485,00
26 Salaries & Wages
27 1,911,00
28 Personnel Benefits
29 215,00
30 Supplies 20,00
31 Children SRP - Supplies 10,00
32 Teen SRP - Supplies
33 Library Materials and Books 10,00
35 Children - Supplies 5,00
36 Teen - Supplies 5,00
37 Adult - Supplies -
38 Author - Supplies
39 SRP Craft Supplies 15,00
40 WPL Children's Room - Supplies 2,00
41 STEM - Supplies
42 Furniture 40,00
43 Copier Supplies 70,00
44 Production - Toner/Paper 42,00
45 Production - Commercial Printing
46 Production - Graphics 2,00
47 Mail Order Catalog 10,00
48 Supplies
2,00
20,00
468,00

7/15/2019-3:11 PM Questions? A

Regional Library

Expense Budget
19
sed as of 7/10.

June Spent to Current Percent
Expenses Date Spending of
Compared to
Budget
Budget Spent

00 $ 50,500 $ 287,995 $ (473,005) 38% 1
2
00 17,713 108,306 (165,694) 40% 3
4
00 208 930 (4,070) 19% 5
00 208 930 (4,070) 19% 7
8
00 375 10,363 (29,638) 26% 9
00 2,515 (3,485) 42% 10
00 58 3,715 25% 12
00 - (11,285) 13
00 - (1,000) 0% 17
00 433 16,593 (1,000) 0% 18
26% 22
00 $ 68,855 $ 413,825 $ (46,407) 23
38%
(689,175) 24
54% 25
00 $ 416,913 $ 2,439,070 $ (2,045,930) 26
52% 27
00 163,041 988,989 (922,011) 28
37% 29
00 14,215 78,500 (136,500) 48% 30
39% 31
00 685 9,694 (10,306) 32
0% 33
00 587 3,884 (6,116) 43% 35
25% 36
55 55 83% 37
38
00 70 4,308 (5,692) 0% 39
84% 40
00 1,252 (3,748) 18% 41
27% 42
00 361 4,130 (870) 43
7% 44
1,010 1,010 0% 45
95% 46
00 247 12,592 (2,408) 55% 47
0% 48
00 355 (1,645) 52%
32%
00 2,832 10,813 (29,187)

00 1,340 4,612 (65,388)

00 - (42,000)

00 18 1,898 (102)

00 5,530 (4,470)

00 - (2,000)

00 10,413 (9,587)

00 20,354 149,046 (318,954)

Ask Michael ext 106 1of 4

Description 2019 Budget

49 465,00
51 Adult - Library Materials 350,00
55 Juvenile - Library Materials
58 Wade - Juvenile LM -
59 Periodicals - Library Materials 72,00
61 Book Club 69,00
62 Audio 94,00
63 DVD 284,00
64 Music CD 20,00
65 Other
8,00
Classroom - 14,000
66 Digital Materials - Library Materials 205,00
67 Digital Materials - Hoopla 120,00
68 Databases 110,00
69 Library Materials 1,797,00
70
71 IT Hardware 140,00
72 Software and Support -
74 Public Hardware -
75 Box Solutions
76 STEM Kits & Equipment 35,00
77 STEM Technician Equipment 100,00
78 STEM Specialty Equipment
79 IT Support 164,00
80 Staff Hardware -
81 Public Hardware -
82 Network Equipment -
83 Servers -
84 IT Equipment & Software
85 439,00
86 Supplies, Library Materials & IT
87 2,704,00
88 Professional Services
89 Children's SRP - Professional Services 35,00
90 Teen SRP - Professional Services 30,00
92 Children's - Professional Services 15,00
93 Teen - Professional Services 25,00
94 Adult - Professional Services 30,00
95 Author - Professional Services 25,00
96 Teen - Author Program 25,00
97 STEM - Professional Services
98 Memberships - PS 5,00
99 Graphics - Social Media Company 10,00
100 Graphics - Translation Services
101 Professional Services 2,00
14,00

1,00
217,00

7/15/2019-3:11 PM Questions? A

June Spent to Current Percent
Expenses Date Spending of
Compared to
Budget
Budget Spent

49

00 23,895 153,942 (311,058) 33% 51

00 10,747 83,493 (266,507) 24% 55

1,636 1,636 1,636 0% 58

00 3,876 13,076 (58,924) 18% 59

00 2,663 17,493 (51,507) 25% 61

00 3,132 32,946 (61,054) 35% 62

00 8,537 81,569 (202,431) 29% 63

00 763 6,193 (13,807) 31% 64

00 - (8,000) 0% 65

00 14,064 104,978 (100,022) 51% 66

00 9,621 54,309 (65,691) 45% 67

00 14,777 29,009 (80,991) 26% 68

00 93,709 578,645 (1,218,356) 32% 69

70

00 294 16,101 (123,899) 12% 71

630 630 0% 72

369 369 0% 74

00 - (35,000) 0% 75

00 712 4,072 (95,928) 4% 76

1,131 13,592 13,592 0% 77

25 15,996 15,996 0% 78

00 8,662 58,233 (105,767) 36% 79

695 27,930 27,930 0% 80

19,837 19,837 0% 81

446 931 931 0% 82

- 33,927 33,927 0% 83

00 11,966 191,618 (247,382) 44% 84

85

00 126,029 919,308 (1,784,692) 34% 86

87

00 10,862 71,848 36,848 205% 88

00 4,750 18,900 (11,100) 63% 89

00 - (15,000) 0% 90

00 12,912 (12,088) 52% 92

00 5,192 (24,808) 17% 93

00 1,833 41,250 16,250 165% 94

00 13,568 14,281 (10,719) 57% 95

00 5,000 6,403 1,403 128% 96

00 10 2,595 (7,405) 26% 97

00 523 1,320 (680) 66% 98

00 - (14,000) 0% 99

00 - (1,000) 0% 100

00 36,546 174,701 (42,299) 81% 101

Ask Michael ext 106 2of 4

Description 2019 Budget

102 62,00
103 Phone - Branches 6,00
104 Phone - Distribution Center 2,00
105 Phone - Wenatchee
106 Phone 70,00
107
108 Internet - Branches 22,00
109 Internet - Distribution Center 15,00
110 Internet - Wenatchee
111 Internet 3,00
112 40,00
113 Postage
114 Travel 300,00
117 25,00
118 Advertising
119 Graphics - Promotional Advertising 13,00
120 Radio 10,00
123 Advertising
124 23,00
125 Operating Rentals & Leases
126 Copier Lease 11,00
127 Copier Lease 36,00
128 Postage Meter Lease
129 Insurance 8,00
130 Repairs & Maintenance 12,00
131 Miscellaneous 110,00
132
133 Services 5,00
134 3,00
142 Total Public Service
860,00
143
144 Organization of Materials $ 9,960,00
145 Salaries & Wages
146 $ 530,00
147 Personnel Benefits
148 210,00
149 Supplies
150 Book Supplies 20,00
151 IT Hardware 260,00
152 Supplies
153 -
154 Professional Services 280,00
155 OCLC
156 Collection HQ 5,00
162 Miscellaneous 60,00
163 Services 19,00
167
168 Total Org of Materials 1,00
85,00
7/15/2019-3:11 PM
$ 1,105,00

Questions? A

June Spent to Current Percent
Expenses Date Spending of
Compared to
Budget
Budget Spent

00 3,311 36,668 (25,332) 59% 102
50% 103
00 566 2,986 (3,014) 50% 104
58% 105
00 279 997 (1,003) 106
22% 107
00 4,157 40,651 (29,349) 46% 108
56% 109
00 579 4,798 (17,202) 34% 110
111
00 1,156 6,945 (8,055) 41% 112
80% 113
00 202 1,666 (1,334) 114
16% 117
00 1,938 13,408 (26,592) 20% 118
119
00 17,632 123,019 (176,981) 0% 120
25% 123
00 2,387 20,048 (4,952) 124
271% 125
00 303 2,089 (10,911) 0% 126
0% 127
00 71 2,044 (7,956) 0% 128
129
1,720 1,720 88% 130
0% 131
00 373 5,853 (17,147) 132
83% 133
00 1,542 29,817 18,817 134
59% 142
00 - (36,000)
49% 143
00 - (8,000) 144
35% 145
00 - (12,000) 146
38% 147
00 9,569 96,925 (13,075) 148
12% 149
00 - (5,000) 28% 150
151
00 558 2,500 (500) 0% 152
27% 153
00 74,701 506,921 (353,079) 154
0% 155
00 $ 780,684 $ 4,854,289 $ (5,105,711) 50% 156
162
00 $ 35,850 $ 186,324 $ (343,676) 0% 163
0% 167
00 14,792 79,351 (130,649) 35% 168

00 539 2,429 (17,571) 34%
00 10,598 73,910 (186,090)

- -
00 11,138 76,339 (203,661)

00 - (5,000)
(29,905)
00 5,016 30,095 (19,000)

00 - (1,000)
(54,905)
00 -
(732,891)
00 5,016 30,095

00 66,795 $ 372,109 $

Ask Michael ext 106 3of 4

Description 2019 Budget

169 $ 25,00
170 Training
171 Supplies 75,00
172 60,00
173 Professional Services 135,00
176 Travel
179 Services $ 160,00
180
181 Total Training $ 1,00
182 11,00
183 Facilities 8,00
188 Supplies 20,00
189 Supplies - Distribution Center
190 Supplies - Wenatchee 40,00
191 Supplies 60,00
192
193 Fuel - Vehicles 58,00
194 Supplies & Fuel 43,00
195 104,00
196 PS - Branches 205,00
197 PS - Distribution Center
198 PS - Wenatchee 1,00
199 Professional Services
200 11,50
203 Operating Rentals & Leases 3,50
208
210 Elec - Distribution Center 10,50
211 W/S - DC 21,00
212 Garb - Distribution Center
213 Elec - Wenatchee 5,50
214 W/S - Wenatchee 4,00
215 Garb - Wenatchee 9,00
216 Gas - Wenatchee 65,00
217 Public Utility Services
218 2,00
219 Repairs & Maintenance 25,00
220 R&M - Distribution Center 28,00
221 R&M - Wenatchee 55,00
222 R&M - Facilities
223 50,00
224 R&M - Vehicles
226 376,00
227 Services
228 405,00
229 Maintenance & Use Payments
236 $ 841,00
237 Total Facilities
$ 13,169,00
Grand Total Questions? A

7/15/2019-3:11 PM

June Spent to Current Percent
Expenses Date Spending of
Compared to
Budget
Budget Spent

00 $ 1,284 $ 4,792 $ (20,208) 19% 169
170
00 475 17,609 (57,391) 23% 171
00 1,576 22,573 (37,427) 38% 172
00 2,051 40,182 (94,818) 30% 173
176
00 3,335 $ 44,974 $ (115,026) 28% 179
180
00 $ 48 $ 233 $ (767) 23% 181
00 323 4,224 (6,776) 38%
00 3,889 (4,111) 49% 182
00 97 8,347 (11,653) 42% 183
468 188
(22,840) 43% 189
00 3,879 17,160 (34,493) 43% 190
191
00 4,347 25,507 (24,101) 58% 192
(27,536) 36% 193
00 5,420 33,899 (46,557) 55% 194
(98,195) 52% 195
00 2,423 15,464 196
(1,000) 0% 197
00 7,246 57,443 198
(5,720) 50% 199
00 15,088 106,805 (313) 91% 200
46% 203
00 - (5,690) 30% 208
(14,603) 63% 210
00 781 5,780 36% 211
(2,060) 65% 212
00 228 3,187 (2,571) 48% 213
(3,163) 214
00 938 4,810 (34,120) 0% 215
52% 216
00 824 6,397 (2,000) 49% 217
(11,895) 49% 218
00 570 3,440 (14,247) 219
(28,141) 34% 220
00 1,429 221
(32,973) 48% 222
00 113 5,837 223
(194,429) 50% 224
00 3,454 30,880 226
(201,463) 49% 227
00 - 228
(430,385) 229
00 2,218 13,105 236
237
00 2,834 13,753

00 5,052 26,859

00 3,055 17,027

00 26,650 181,571

00 203,537 203,537

00 234,534 $ 410,615 $

00 1,154,203 $ 6,095,812 $ (7,073,188) 4of 4
Ask Michael ext 106

North Central Regional Library
Other Fund - Expense Budget

2019
County not closed as of 7/10.

Description 2019 Budget June Spent to Compared to Percent
Expenses Date Budget of

Budget
Spent

Strategic Initiative $ 175,000 $ -$ (175,000) 0%
Facility CoSnadlaitrioiensA&ssWesasgmesent PS 30,000 1,104 - - 0%
Facility Condition Assessment Travel 1,104 $
35,000 - (30,000) 0%
Learning Management System IT Software 6,000 - - 0%
Learning Management System PS - - 0%
Learning Management System Travel 246,000 $
1,104 (33,896) 3%
Branding PS Website Move - (6,000) 0%
Branding PS - - 0%
Branding Supplies
- - 0%
Machinery and Equipment $ - - 0%
Capital Expenditures 1,104 $ (244,896) 0%

Total Strategic Initiative 0%
0%
District Technology $ -$ $ -$ - 0%
Supplies -$ - - 0%
IT Equipment - - 0%
IT Support - - 0%
Professional Services - - 0%
Machinery and Equipment - -
Capital Expenditures -$ - 0%
Total District Technology 0%
0%
District Facility Improvement -$ $ -$ - 0%
Supplies -$ - - 0%
Professional Services - -
Machinery and Equipment - - 0%
Capital Expenditures -$ - 0%
Total District Facility Improvement $ 0%

Vehicle Reserve $ -$ $ 21,089 $ 21,089 0%
Machinery and Equipment - - 0%
Capital Expenditures 0%
Total Vehicle Reserve - $ 21,089 $ 21,089 0%
0%
Wenatchee Public Library Facility $ -$ -
Supplies
Professional Services 13,873 171,569 171,569
Machinery and Equipment
Capital Expenditures --
Total Wenatchee Public Library Faci$lity
--

- $ 13,873 $ 171,569 $ 171,569

7/17/2019-8:39 AM 1of 1

Account Title Branch North Central R
NCRL ENDOW

20
County not clos

Purpose

E-000 Endowment Fund

In 2004 used to establish audio collections (tapes and CDs) in branches a
purchase High Density Shelving in Distribution Center to "triple the size o

E-622 Blough Fund Audio Collection In 2004 the representation, Attorney Robert Castrodale, stated that $7 o
amount that could be mainted in perpetuity) be used to continually upgr
Audio Collections in nice wood shelving with a head board that said: "Ve
Audio Collection".

Used to fund a variety of library materials and programs for young peopl

E-623 McLoed Fund Wenatchee Public the promotion of lifelong learning

Library well into the future.

E-625 Simpson Fund Cashmere, Solely for the purchase of instructional materials, software and tapes, in
Peshastin, Cashmere, Peshastin and Leavenworth Libraries.
Leavenworth
Anne L. Simpson Memorial Endowment

E-626 NCRL DistrictFund Unrestricted -Small Miscellenous Donations and some small specific amounts
E-627 NCRL Legal Amounts

E-628 Ruby Legal Given for Filtering lawsuit
Moses Lake These funds shall be used to purchase equipment that it deems appropri
E-629 Monroe
Moses Lake Funds given from the Robert H. Ruby Trust.
10% of invested amount of donation to be spent on books suggested by t
Librarian. Bookplate should read:

E-630 Daniel's Columbia Basin Foundation Ephrata In Memory of Henry Monroe who believes "Education is Boundless"
1/3 restricted to children area use, 1/3 restricted to Adult area, 1/3 unres
E-631 Republic East Wenatchee spent by 12/19
E-632 George George Used by recommendation of Republic Librarian
E-633 Pittman Fund Republic Funds given for George Library
E-634 Mcguire, Edna East Wenatchee Unrestricted Tom L. Pittman Memorial
E-635 FOL WPL Wenatchee Donation for the East Wenatchee Library
$2250 twice a year
E-636 Ross Stores East Wenatchee Ross Stores Foundation - Spend by 4/19/19 - No designation, but they ap
we do with youth
E-637 Mattawa Mattawa Funds given for Mattawa Library - SRP Prizes
E-638 Fern Holland Child Books - All
E-639 Peter Lind Restricted Purchase Children's Books.
For purchase of Telescopes in memory of Peter Lind. Donated by his wife

Regional Library
WMENTS (643)

019
sed as of 7/10.

Budget

Fund Balance 2019 Rev/Exp Fund Balance 2019 Budget Budget Projected

12/31/2018 Remaining Fund Balance
$ 2,164.68
583 $ 2,748 $ -$ -$ 2,748

and Mail Order. In 2005 used to
of Mail Order".

or $8 thousand (or whaterver $ 70,986.20 -$ 70,986 $ 3,500 $ 3,500 $ 67,486
rade the collection. He spoke of
ern and Lillian Blough Memorial

le, senior outreach, and

$ 25,292.21 -$ 25,292 $ 1,300 $ 1,300 $ 23,992
$ 7,000 $ 7,000 $ 129,240
equal shares to the

$ 136,240.16 -$ 136,240

$ 4,039.22 (605) $ 3,434 $ (950) $ 3,434
$ 1,031.80 -$
$ 2,052.77 -$ 1,032 $ -$ 1,032

iate. $ 8,009.04 2,053 $ 2,053 $ 2,053 $ -
the Moses Lake
- 8,009
312.68 -$ $ 400 $ 400 $ 7,609
1,425
stricted - all uses in Ephrata. To be $ 94.00 1,425 $ 313 $ 1,425 $ 1,425 $ -
13,438.84 194
$ - $ $ 313 $ 313 $ -
$ 3,484.00 100 $ 13,899
$ 89.17 460 $ 25,000 $ -$ 194
25,000 $
267,234.77 $ 2,015 $ 2,015 $ - $ 13,899
3,050
$ - $ 25,000
89
8 $ (235) $ 2,015

ppreciate the work $ (434) $ 741 $ 3,484 $ - $ (434)
e Rosanne Lind. $ 296,528
- $ $ -$ -$ 89
$ 8 $ $ 50 $ 8$ (42)
$ $ 1,000 $ (259)
741 $ $ 20,524 741 $
29,293

Description North Central R
643.001 NCR Library Endowment Invest Investm
State of Washigton LGIP
Sub Total / Average 643.001 NCR Library Endowment Invest as of Jun
644.001 NCR Library General Inv
Grant Cnty PUD Dist no 2 5.111 1/1/2023 Security Type
Grant County PUD 3.62 1/1/2026-17
State of Washigton LGIP Local Government Investment Pool
Sub Total / Average 644.001 NCR Library General Inv
645.001 NCR Library Technology Fund Inv Municipal Bond
State of Washigton LGIP Municipal Bond
Sub Total / Average 645.001 NCR Library Technology Fund Inv Local Government Investment Pool
646.001 NCR Library District Facility Improvement
State of Washigton LGIP Local Government Investment Pool
Sub Total / Average 646.001 NCR Library District Facility Improvement
646.001 NCR Library Vehicle Reserve Fund Local Government Investment Pool
State of Washigton LGIP
Sub Total / Average 646.001 NCR Library Vehicle Reserve Fund Local Government Investment Pool
646.001 NCR Library Wenatchee Pub Lib Facility Imp
State of Washigton LGIP Local Government Investment Pool
Sub Total / Average 646.001 NCR Library Wenatchee Pub Lib Facility Imp
647.001 NCR Library Strategic Initiatives Inv Federal Agricultural Mortgage Corporation Bond
FAMC 1.45 8/2/2019 Federal Agricultural Mortgage Corporation Bond
FAMC 2.63 5/22/2023-19 Federal Agricultural Mortgage Corporation Bond
FAMC 3.23 12/27/2023-19 Freddie Mac Home Bond
FHLMC 1.5 9/9/2019-18 Municipal Bond
Las Vegas Valley WD 3.908 6/1/2020 Local Government Investment Pool
State of Washigton LGIP Municipal Bond
State of Washington 4.019 8/1/2019 Municipal Bond
University Wash 1.635 7/1/2020-18 Municipal Bond
Washington St Txbl 2.93 8/1/2022
Sub Total / Average 647.001 NCR Library Strategic Initiatives Inv
Total / Average

Regional Library
ments
ne 30th

Settlement Date YTM @ Cost Cost Value Book Value Market Value Maturity Date Realizable Value

12/31/2016 2.505 298,747.40 298,747.40 298,747.40 N/A 298,747.40
2.505 298,747.40 298,747.40 298,747.40 298,747.40

01/23/2018 2.700 111,076.00 107,864.94 110,083.00 01/01/2023 110,406.24
10/26/2017 2.914 331,083.90 315,000.00 337,730.40 01/01/2026 320,669.82
12/31/2016 2.505 5,312,164.09 5,312,164.09 5,312,164.09 5,312,164.09
2.531 5,754,323.99 5,735,029.03 5,759,977.49 N/A 5,743,240.15

12/31/2016 2.505 557,088.44 557,088.44 557,088.44 N/A 557,088.44
2.505 557,088.44 557,088.44 557,088.44 557,088.44

12/31/2016 2.505 477,288.30 477,288.30 477,288.30 N/A 477,288.30
2.505 477,288.30 477,288.30 477,288.30 477,288.30

12/31/2017 2.505 368,114.88 368,114.88 368,114.88 N/A 368,114.88
2.505 368,114.88 368,114.88 368,114.88 368,114.88

01/26/2018 2.505 1,631,171.79 1,631,171.79 1,631,171.79 N/A 1,631,171.79
2.505 1,631,171.79 1,631,171.79 1,631,171.79 2,476,574.97

08/02/2017 1.450 2,000,000.00 2,000,000.00 1,998,560.00 08/02/2019 2,011,922.22
05/22/2019 2.630 1,000,000.00 1,000,000.00 1,000,120.00 05/22/2023 1,002,776.11
12/27/2018 3.230 12/27/2023
07/01/2017 1.419 500,000.00 500,000.00 501,720.00 09/09/2019 500,134.58
08/30/2017 1.630 3,005,190.00 3,000,000.00 2,995,590.00 06/01/2020 3,013,875.00
12/31/2016 2.505 1,061,070.00 1,020,457.84 1,015,520.00 1,023,605.95
06/05/2017 1.500 1,328,900.49 1,328,900.49 1,328,900.49 N/A 1,328,900.49
08/02/2017 1.635 2,106,420.00 2,004,327.12 2,003,020.00 08/01/2019 2,037,595.51
09/13/2018 2.935 07/01/2020
1.831 459,995.40 459,998.41 459,075.40 08/01/2022 463,738.02
2.131 499,920.00 499,936.36 514,895.00 505,999.83
11,961,495.89 11,813,620.22 11,817,400.89 11,888,547.71
21,048,230.69 20,881,060.06 20,909,789.19

North Central Washington Libraries
Investment Policy

I. Governing Authority

Legality
The investment program shall be operated in conformance with governing legislation and other legal
requirements. Per RCW 27.12.160 and RCW 36.29.020 the Chelan County Treasurer invest funds not
required for immediate expenditures.

II. Scope

This policy applies to the investment of all funds, excluding the investment of employees' retirement funds.

1. Pooling of Funds
Except for cash in certain restricted and special funds, the North Central Washington Libraries
(NCWL) will consolidate cash and reserve balances from all funds to maximize investment earnings
and to increase efficiencies with regard to investment pricing, safekeeping and administration. Also,
per SEC Rule 15B (Municipal Advisor Rule), the policy must clearly state whether or not the cash
being pooled/invested includes municipal bond proceeds or not.

Investment income will be allocated to the various funds based on their respective participation and in
accordance with generally accepted accounting principles.

III. General Objectives

The primary objectives of investment activities shall be safety, liquidity, and return:

1. Safety
Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the
overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

a. Credit Risk
NCWL will minimize credit risk, which is the risk of loss of all or part of the investment due to the
failure of the security issuer or backer, by:

• Limiting investments to the types of securities listed in Section VII of this Investment Policy.
• Diversifying the investment portfolio so that the impact of potential losses from any one type of

security or from any one individual issuer will be minimized.

b. Interest Rate Risk
NCWL will minimize interest rate risk, which is the risk that the market value of securities in the
portfolio will fall due to changes in market interest rates, by:

• Structuring the investment portfolio so that security maturities match cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to

NCWL Investment Policy – adopted xx/xx/xx 1

maturity.
• Investing operating funds primarily in shorter-term securities, WA State Treasurer Local

Government Investment Pool, and limiting individual security maturity as well as the average
maturity of the portfolio in accordance with this policy (see section VIII).

2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may
be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature
concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all
possible cash demands cannot be anticipated, the portfolio should consist largely of securities with
active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may
be placed in local government investment pools which offer same-day liquidity for short-term funds.

3. Return
The investment portfolio shall be designed with the objective of attaining a market rate of return
throughout budgetary and economic cycles, taking into account the investment risk constraints and
liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity
objectives described above. The core investments are limited to relatively low risk securities in
anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be
held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal;
• Selling a security and reinvesting the proceeds that would improve the quality, yield, or target

duration in the portfolio may be undertaken;
• Unanticipated liquidity needs of the portfolio require that the security be sold.

IV. Standards of Care

1. Prudence
The standard of prudence to be used by investment officials shall be the "uniform prudent investor
act" standard and shall be applied in the context of managing an overall portfolio. Investment officers
acting in accordance with written procedures and this investment policy and exercising due diligence
shall be relieved of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion and the liquidity and
the sale of securities are carried out in accordance with the terms of this policy.

2. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business
activity that could conflict with the proper execution and management of the investment program, or
that could impair their ability to make impartial decisions. Employees and investment officials shall
disclose any material interests in financial institutions with which they conduct business, in
accordance with applicable laws. They shall further disclose any personal financial/investment
positions that could be related to the performance of the investment portfolio. Employees and officers
shall refrain from undertaking personal investment transactions with the same individual with whom
business is conducted on behalf of NCWL.

NCWL Investment Policy – adopted xx/xx/xx 2

3. Delegation of Authority
Authority to manage the investment program is granted to Executive Director or her/his delegate
representative and derived from the following: Board of Trustee Resolution 18-03. Responsibility for
the operation of the investment program is hereby delegated to the investment officer, who shall act in
accordance with established written procedures and internal controls for the operation of the
investment program consistent with this investment policy. At a minimum, procedures should include
references to the following: safekeeping, delivery vs. payment, investment accounting, repurchase
agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in
an investment transaction except as provided under the terms of this policy and the procedures
established by the investment officer. The investment officer shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

V. Authorized Financial Institutions, Depositories, and Broker/Dealers

1. Authorized Financial Institutions, Depositories, and Broker/Dealers
The Chelan County Treasurer shall maintain a list of financial institutions and depositories authorized
to provide investment services.

VI. Safekeeping and Custody

The Chelan County Treasurer shall establish Delivery vs. Payment, safekeeping and internal controls
regarding the investments. Cash can only be maintained in a Washington State qualified public
depository.

VII. Suitable and Authorized Investments

1. Investment Types – in accordance with RCW 36.29.040
• U.S. Treasury obligations which carry the full faith and credit guarantee of the United States

government;
• U.S. government agency and instrumentality obligations that have a liquid market with a readily

determinable market value;
• Certificates of deposit of a Washington State qualified public depository,
• Bankers' acceptances purchased on the secondary market;
• Commercial paper purchased on the secondary market with adherence to the investment policies

and procedures adopted by the state investment board;
• Corporate Bonds purchased on the secondary market with adherence to the investment policies

and procedures adopted by the state investment board;
• Obligations of state, and local governments and public authorities rated A or better;
• Repurchase agreements whose underlying purchased securities consist of the aforementioned

instruments;
• Local government investment pools either state-administered or developed through joint powers

statutes and other intergovernmental agreement legislation;

2. Collateralization
Checking accounts and certificates of deposit are only a in financial institutions approved by the
Washington State Public Deposit Protection Commission.

NCWL Investment Policy – adopted xx/xx/xx 3

VIII. Investment Diversification & Constraints

1. Diversification
It is the policy of the NCWL to diversify its investment portfolios. To eliminate risk of loss
resulting from the overconcentration of assets in a specific maturity, issuer, or class of securities, all
cash and cash equivalent assets in all NCWL funds shall be diversified by maturity, issuer, and
security type. Diversification strategies shall be determined and revised periodically by the
investment committee/investment officer for all funds except for the employee retirement fund.

In establishing specific diversification strategies, the following general policies and constraints shall
apply: Portfolio maturities shall be staggered to avoid undue concentration of assets in a specific
maturity sector. Maturities selected shall provide for stability of income and reasonable liquidity.

• Liquidity shall be assured through practices ensuring that the next disbursement date
and payroll date are covered through maturing investments or marketable U.S.
Treasury bills.

• Positions in securities having potential default risk (e.g., commercial paper) shall be
limited in size so that in case of default, the portfolio’s annual investment income will
exceed a loss on a single issuer’s securities.

• Risks of market price volatility shall be controlled through maturity diversification and
duration management.

• The investment committee/investment officer shall establish strategies and guidelines
for the percentage of the total portfolio that may be invested in securities other than
repurchase agreements, Treasury bills or collateralized certificates of deposit. The
committee shall conduct a quarterly review of these guidelines and evaluate the
probability of market and default risk in various investment sectors as part of its
considerations.

The following diversification limitations shall be imposed on the portfolio:
• Maturity: No investments beyond 60 months, and the weighted average maturity of
the portfolio shall never exceed 2 years.
• Default risk: No more than 5 percent of the overall portfolio may be invested in the
securities of a single issuer, except for securities of the U.S. Treasury, Washington
State Local Government Investment Pool, or financial institutions approved by the
Washington State Public Deposit Protection Commission. No more than 20 percent of
the portfolio may be invested in each of the following categories of securities:
a) Commercial paper,
b) Bankers’ acceptances,
c) Any other obligation that does not bear the full faith and credit of the United
States government or which is not fully collateralized or insured.
• Liquidity risk: Based on liquidity needs, at least 10 percent of the overall portfolio
shall be invested in overnight instruments or in marketable securities which can be
converted to cash within one day.

NCWL Investment Policy – adopted xx/xx/xx 4

2. Maximum Maturities
To the extent possible, the NCWL shall attempt to match its investments with anticipated cash flow
requirements. Unless matched to a specific cash flow, the NCWL will not directly invest in
securities maturing more than five (5) years from the date of purchase or in accordance with
governing legislation. The NCWL shall adopt weighted average maturity limitations consistent with
the investment objectives.

IX. Reporting

1. Methods
The investment officer shall prepare an investment report at least quarterly, including a management
summary that provides an analysis of the status of the current investment portfolio. This
management summary will be prepared in a manner which will allow NCWL to ascertain whether
investment activities during the reporting period have conformed to the investment policy. The
report should be provided to the Board of Trustee’s Finance Committee. The report will include the
following:
• Listing of individual securities held at the end of the reporting period including type, acquisition

cost, book cost, and market value.
• Average weighted return on investments as compared to applicable benchmarks.
• Percentage of the total portfolio which each type of investment represents.

2. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified within this
policy. The portfolio should obtain a market average rate of return during a market/economic
environment of stable interest rates. A series of appropriate benchmarks shall be established against
which portfolio performance shall be compared on a regular basis. The benchmarks shall be
reflective of the actual securities being purchased and risks undertaken, and the benchmarks shall
have a similar weighted average maturity as the portfolio.

3. Marking to Market
The market value of the portfolio shall be calculated at least quarterly and a statement of the
market value of the portfolio shall be issued at least quarterly. This will ensure that review of the
investment portfolio, in terms of value and price volatility.

X. Policy Considerations

1. Amendments
This policy shall be reviewed on an annual basis. Any changes must be submitted by the
investment officer and approved by the Board of Trustee Finance Committee or authoritative body
acting in such capacity.

XI. Approval of Investment Policy
The investment policy shall be formally approved and adopted by the governing body of the
NCWL and reviewed annually.

NCWL Investment Policy – adopted xx/xx/xx 5

North Central R
Authorized Purcha

Network Regional/Group/D Purchasing Director of Pu
Operations epartment
Managers Agent/Facilities Sector/Directo

Manager Fina

Supplies $ -$ 2,000 $ 2,000 $ 10,0
Performer - 2,000 2,000 10,0
Utilities 2,000 10,000 10,0
Routine Monthly 10,000 25,0
Employee related 1,000 550,0

Library Material - printed 10,0

Library Material - electronic 1,000 10,0

Stem 1,500 10,0
IT 2,500 10,0
>$2,500 contracts require Executive Director written approval

People authorized 2 15 2

7/15/2019

Regional Library
ase Limits - DRAFT

ublic Executive Board of Informal Formal Bids Contract Requires
or of Director Trustees Bids Required Formal
ance Bid

000 $ 50,000 $50,000+ $10,000
000 50,000 from
000 50,000 $5,000 to =contract single every year
000 50,000 $50,000 approved by vendor plus 1
000 year
50,000 attorney annually
All
000 informal/for

mal bids

/insurance

000 50,000

000 50,000
000 50,000

adapted by Trustees XX/XX/XX

21



















North Central Regional Library

2020 Budget Schedule

1. July
a. Initial expense numbers given to staff

2. August
a. Review expense numbers
b. Initial staffing numbers
c. Discuss Salaries and Benefits
i. New Positions in 2019
ii. Consumer Price Index (CPI) changes & Cost of Living Adjustments (COLA)
iii. Medical Benefit Cost changes
d. Capital budget

3. September
a. Final expense numbers
b. Final staffing numbers
c. Capital budget
d. Salary study due
e. Discuss Levy

4. October

a. Finance Committee input – Oct 14th

b. Board input – Oct 17th

c. Notice of Public Hearing posted

i. Grant Count November 4, 11, 18

ii. Douglas County November 7, 14

iii. Chelan November 6, 13, 20

iv. Ferry County November 6, 13, 20

v. Okanogan County November 6, 13, 20

5. November
a. Finance Committee final review – Nov 18th
b. Board Public Hearing – Nov 21st

c. Board Approval of Budget – Nov 21st

d. Budget given to County Auditor – November 29th

NORTH CENTRAL WASHINGTON LIBRARIES
RESOLUTION 19-13

A RESOLUTION OF THE BOARD OF TRUSTEES OF NORTH CENTRAL WASHINGTON LIBRARIES

A RESOLUTION REGARDING MEMBERSHIP
IN THE

CITIES INSURANCE ASSOCIATION OF WASHINGTON

WHEREAS,

1. The Cities Insurance Association of Washington (CIAW) is authorized to develop and
administer a program which provides an opportunity for members to jointly pool and self-
insure their liability losses, jointly purchase property insurance and excess reinsurance, and
jointly utilize administrative and other services.

2. The North Central Washington Libraries has been provided with an opportunity to review the
Interlocal Agreement and By-Laws of the CIAW.

THE BOARD OF TRUSTEES OF NORTH CENTRAL WASHINGTON LIBRARIES DISTRICT HEREBY
RESOLVES AS FOLLOWS:

1. The North Central Washington Libraries Trustees hereby approves the Interlocal Agreement
and By-Laws of the CIAW and hereby agrees to become a member of the CIAW
commencing April 1st, 2019.

ADOPTED BY THE TRUSTEES OF NORTH CENTRAL WASHINGTON LIBRARIES.

THIS 25TH DAY OF JULY 2019.

BOARD OF TRUSTEES NORTH CENTRAL
WASHINGTON LIBRARIES

______________________________________ ______________________________________
TRUSTEE TRUSTEE

______________________________________ ______________________________________
TRUSTEE TRUSTEE

______________________________________ ______________________________________
TRUSTEE TRUSTEE

______________________________________
TRUSTEE

 
 
 
 

 

 

 
 
 
 
 
 
 
 

INTERLOCAL AGREEMENT

OF

CITIES INSURANCE ASSOCIATION

OF WASHINGTON

TABLE OF CONTENTS

FOR

INTERLOCAL AGREEMENT

CREATING THE

  CITIES INSURANCE ASSOCIATION OF WASHINGTON

  Introduction ................................................................................................ Page 1
Recitals ............................................................................................................... 1
1. Agreement........................................................................................................... 1
Purpose of Agreement ........................................................................................ 1
  Parties to Agreement .......................................................................................... 2
Term of Agreement ............................................................................................. 3
  Creation of Association ....................................................................................... 3
Powers of the Association ................................................................................... 4
2. Responsibilities of the Association ...................................................................... 5
Responsibilities of Members ............................................................................... 6
  Board of Directors’ Authority ............................................................................... 7
Service Representative Relationship .................................................................. 9
  Effective Date of Pooled Insurance Purchasing Program ................................. 10
Contingent Liability and Retroactive Assessments............................................ 10
3. New Members ................................................................................................... 11
Withdrawal ........................................................................................................ 11
  Cancellation ...................................................................................................... 11

  i

3.1

 

 

3.2

 

 

3.3

 

 

3.4

 

 

3.5

 

 

3.6

 

 

3.7

 

 

3.8

 

 

3.9

 

 

3.10

 

 

3.11

 

 

3.12

 

 

3.13

 

 

3.14

 

 

  Effect of Withdrawal or Cancellation ................................................................. 11
Termination and Distribution ............................................................................. 12
  Notices .............................................................................................................. 13
  Amendment....................................................................................................... 13
Enforcement...................................................................................................... 13
3.15 Default and Remedies....................................................................................... 13
No Waivers........................................................................................................ 14
  Prohibition Against Assignment......................................................................... 14
Entire Agreement .............................................................................................. 14
  Severability........................................................................................................ 15
Time .................................................................................................................. 15
3.16 Section Headings .............................................................................................. 15
Governing Law .................................................................................................. 15
  Counterpart Copies ........................................................................................... 15
Execution .......................................................................................................... 16
 
ii
3.17

 

 

3.18

 

 

3.19

 

 

3.20

 

 

3.21

 

 

3.22

 

 

3.23

 

 

3.24

 

 

3.25

 

 

3.26

 

 

3.27

 

 

3.28

 

 

4.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

INTERLOCAL AGREEMENT CREATING THE

CITIES INSURANCE ASSOCIATION OF WASHINGTON

 
 

 

1. Introduction.

 

 

THIS AGREEMENT is made and entered into in the State of Washington

pursuant to the provisions of Chapter 39.34 Revised Code of Washington and Chapter

48.62 Revised Code of Washington by and among the Washington cities and towns or

public entities listed in Exhibit A attached hereto (the “Members”).

 

 

2. Recitals.

 

 

2.1 Chapter 48.62 Revised Code of Washington provides that two or more

“local governmental entities” may, pursuant to Chapter 39.34 Revised

Code of Washington, jointly purchase insurance (these activities are

hereafter collectively referred to as a “Joint Insurance Purchasing Pool”).

 

 

2.2 Revised Code of Washington Section 48.62.020 defines “local

government entities” to include cities and towns organized and existing

under Title 35 or 35A Revised Code of Washington along with certain

districts and municipal corporations.

 

 

2.3 It is to the mutual benefit of the Members and in the best public interest of

the Members to join together to establish this Joint Insurance Purchasing

Pool to accomplish the purpose set forth herein.

 

 

2.4 The Members have determined it is in their best interest to participate in

such a program.

 

 

3. Agreement.

 

 

In consideration of the foregoing and the mutual benefits to be derived herefrom,

the Members agree as follows:

 

 

3.1 Purpose of Agreement.

 

 

This Agreement is entered into by the Members pursuant to Chapter 39.34

Revised Code of Washington and Chapter 48.62 Revised Code of

Washington for the purpose of authorizing the creation of the Cities

  INTERLOCAL AGREEMENT 1

Insurance Association of Washington (the “Association”), which shall be
organized as a non-profit corporation under Chapter 24.03 Revised Code
of Washington, to provide a Joint Insurance Purchasing Pool for the
benefit of cities and towns in the State of Washington organized and
existing pursuant to Title 35 or 35A Revised Code of Washington and
districts and other municipal corporations as defined by RCW
48.62.021(1). The Association shall, in exchange for the payment of
annual assessments and retroactive assessments by the Regular
Members, administer a Joint Insurance Purchasing Pool wherein the
Members will pool their losses and claims and jointly purchase insurance
and administrative and other services through the Association including
claims adjusting, risk management consulting, loss prevention and related
services at levels established in each annual budget. It is also the
purpose of this Agreement to provide, to the extent permitted by law, for
the inclusion at a subsequent date of such additional cities and towns
organized and existing under Title 35 or 35A Revised Code of Washington
and districts and other municipal corporations as defined by RCW
48.62.021(1) as may desire to participate in the Joint Insurance
Purchasing Pool. It is also the purpose of this Agreement to provide, to
the extent permitted by law, that the Association may, at the discretion of
its Board of Directors, contract with other local governmental entities in the
State of Washington to provide, at a reasonable charge, administrative
and other services, including claims adjusting, risk management
consulting, loss prevention and training.

 

 

3.2 Parties to Agreement.

 

 

3.2.1 Each party to this Agreement certifies that it intends to contract
with all parties who are signatories of this Agreement on its
effective date and with such other parties as may later be added to
and become signatories to this Agreement pursuant to Section
3.12. Each party to this Agreement also certifies that the
withdrawal or cancellation of any party to this Agreement, pursuant
to Sections 3.13 or 3.14, shall not affect this Agreement or such
party’s intent to contract pursuant to the terms of this Agreement
with the then remaining parties to this Agreement.

  INTERLOCAL AGREEMENT 2

3.2.2 Types of Memberships.

 

 

There shall be two separate memberships in the Association.

Regular Members shall be made up of cities and towns. Regular

Members shall be owners of the corporation with full voting rights.

Associate Members are Public Entities approved for special

membership as per the By-Laws of the Association. Associate

Members shall have no ownership in the corporation and shall

have no vote in corporate matters.

 

 

3.3 Term of Agreement.

 

 

This Agreement shall become effective on September 1, 1988, and shall

remain in force until terminated pursuant to the provisions of Section 3.16.

 

 

3.4 Creation of Association.

 

 

3.4.1 Pursuant to Chapter 48.62 Revised Code of Washington and

Chapter 39.34 Revised Code of Washington, the Members

authorize the incorporation of the Association as a non-profit

corporation pursuant to Chapter 24.03 Revised Code of

Washington and articles of incorporation substantially in the form

attached as Exhibit B. The initial Board of Directors shall serve

until the first annual election of Board of Directors members, which

shall be held no later than 180 days after the effective date of this

Agreement. Each Regular Member shall become a Member of the

corporation. Associate Members shall be an associate of the

corporation. The regulation and management of the affairs of the

Association shall be governed by this Agreement, and corporate

By-Laws substantially in the form attached as Exhibit C, which

shall be adopted by the initial Board of Directors immediately upon

the incorporation of the Association. The Association’s articles of

incorporation and By-Laws may be amended from time to time as

deemed necessary by the Members and Board of Directors

pursuant to the procedures set forth in Chapter 24.03 Revised

Code of Washington and Article 17 of the By-Laws.

 

 

3.4.2 Notwithstanding the foregoing, the Board of Directors shall have

no power or authority to incur any obligations on the part of, or to

be chargeable to, Members or Associates in excess of the

  INTERLOCAL AGREEMENT 3

requirement of each Member or Associate to compensate the

Association or the insurance carrier with whom the Association has

affected a transaction as authorized by this Agreement, for the

individual Member’s or Associate’s share or obligation for the

purchase of insurance contemplated and authorized by this

Agreement. The debts, obligations and liabilities of any Member

or Associate shall not become the debts, obligations and liabilities

of other Members or Associates except as provided by Section

3.11 of this Agreement.

 

 

3.4.3 The insurance afforded to each Member or Associate pursuant to

this Agreement is limited to the insurance provided by any insurer

of the Association and the coverages defined in the policies of

insurance issued by any insurer of the Association. No coverage,

benefit or insurance in excess or different from that afforded by

any insurer of the Association is offered or afforded to any Member

or Associate by execution of this Agreement.

 

 

3.5 Powers of the Association.

 

 

The Members and Associates hereby delegate to the Association the

powers which are common to the Members or Associates and which are

reasonably necessary and proper to carry out the purposes and terms of

this Agreement. Such powers shall include, but not be limited to, the

power to:

 

 

3.5.1 Establish, and require compliance with, all terms of the Joint

Insurance Purchasing Pool to be provided by the Association

including the types and limits of the insurance coverage, the

methodology to be used to allocate the Association’s costs among

Regular and Associate Members, and the amount of retroactive

assessments to be paid by each Regular Member;

 

 

3.5.2 Make and enter into contracts;

 

 

3.5.3 Incur debts, liabilities or obligations;

 

 

3.5.4 Acquire, receive, hold or dispose of property, funds, services, and

other forms of assistance from persons, firms, corporations and

governmental entities;

  INTERLOCAL AGREEMENT 4

3.5.5 Sue and be sued, complain and defend, in its corporate name;

 

 

3.5.6 Hire employees and agents; and

 

 

3.5.7 Employ a third party administrator to act in accordance with

Section 3.8.6.

 

 

The powers delegated to the Association shall be exercised pursuant to the

terms of this Agreement and in the manner provided by law.

 

 

3.6 Responsibilities of the Association.

 

 

The Association shall have the following responsibilities:

 

 

3.6.1 Within 30 days after the effective date of this Agreement, the

Board of Directors shall adopt a budget. A similar budget shall be

adopted by the Board of Directors prior to the beginning of each

fiscal year thereafter. Such budget shall specify the types and

limits of the insurance coverage to be provided through the

Association, the estimated annual assessment to be paid by each

Member or Associate, and the methodology to be used to allocate

the Association’s costs, including deductible costs, administrative

costs, and loss costs, to each Regular Member on a retroactive

basis and to establish the amount, if any, of each Regular

Member’s retroactive assessment.

 

 

3.6.2 The Association will assist each Member’s or Associate’s risk

manager, upon request, with the implementation of risk

management programs.

 

 

3.6.3 The Association may provide loss prevention, safety, and

consulting services to Members and Associates.

 

 

3.6.4 The Association will provide claims adjusting and subrogation

services for claims covered by the Association’s Joint Insurance

Purchasing Pool.

 

 

3.6.5 The Association will provide loss analysis for the Members and

Associates for the purpose of identifying high exposure operations

and evaluating proper levels of self-retention and deductibles.

  INTERLOCAL AGREEMENT 5

 
3.6.6 The Association may conduct risk management audits to assess

each Member’s and Associate’s participation in the Joint Insurance

Purchasing Pool.

 

 

3.7 Responsibilities of Members.

 

 

Members shall have the following responsibilities:

 

 

3.7.1 The governing body of each Member or Associate shall designate

in writing a representative who shall be authorized to exercise the

Member’s or Associate’s voting rights with respect to the

Association and to act on behalf of the Member or Associate with

respect to all matters pertaining to the Association.

 

 

3.7.2 Each Member or Associate shall maintain its own set of records,

as a loss log, on all categories of loss to ensure accuracy of the

Association’s loss reporting system and shall provide to the

Association a written report of all potential claims or losses within

14 days after they become known to the Member or Associate.

 

 

3.7.3 Each Member or Associate shall pay to the Association when due

all assessments and retroactive assessments established by the

Association pursuant to the terms of this Agreement. After the

withdrawal, cancellation, or termination of a Regular Member, such

Regular Member shall continue to pay to the Association when

due its share of any retroactive assessment established by the

Association until all claims, losses, costs, and other unpaid

liabilities relating to the Regular Member’s period of membership

have been resolved fully.

 

 

3.7.4 Each Member or Associate shall provide the Association with such

information or assistance as may be necessary for the Association

to carry out the Joint Insurance Purchasing Pool.

 

 

3.7.5 Each Member or Associate shall comply with all By-Laws,

resolutions, and policies by the Board of Directors and shall

cooperate with the Association, and any insurer of the Association,

in accomplishing the purposes of this Agreement.

  INTERLOCAL AGREEMENT 6

3.7.6 Each Member or Associate shall participate as provided herein in

the selection of members of the Board of Directors.

 

 

3.8 Board of Directors’ Authority.

 

 

3.8.1 The Association shall be governed by a Board of Directors. The

Board of Directors shall consist of ten members, to be selected

from the Regular Membership. Beginning with the second election

of members to the Board of Directors, the Regular Members of that

Committee shall be selected as follows: the area served by the

Association shall be divided into three geographic regions, with

each region represented by a number of representatives assigned

to the region based on the number of Regular Members from that

region.

 

 

3.8.2 To ensure that consistent management is provided for the

Association into the future, the initial Board of Directors members

shall have terms of one, two or three years. After the initial

election, all Board of Directors members will be elected for a three-

year term. Those terms will provide that four of the ten committee

members will be elected for full terms in two consecutive years and

three of the regular committee members will be elected for full

terms the third year.

 

 

3.8.3 The Board of Directors shall elect a Chair for each fiscal year. In

addition, the Board of Directors shall elect a Vice-Chair who will in

the absence of the Chair or, in the event of the Chair’s inability or

refusal to act, perform the duties of the Chair.

 

 

3.8.4 Each member of the Board of Directors shall have one vote.

 

 

3.8.5 A majority of the members of the Board of Directors shall be

required to transact the business of the Board of Directors.

 

 

3.8.6 The Third Party Administrator shall have the general supervisory

control over the day to day decisions and administrative activities

of the Association. Activities shall include but not be limited to: (1)

negotiations and placement for insurance coverage contracts, (2)

disbursal of billings to individual Members and Associates for their

proportionate charges, (3) payment and management of claims

  INTERLOCAL AGREEMENT 7

sustained by Members or Associates of the Association and liaison

with representatives acting on behalf of participating Members or

Associates.

 

 

3.8.7 Administrative costs and charges to be paid to the Third Party

Administrator shall be negotiated between the Board of Directors

and the Administrator.

 

 

3.8.8 Pool funds shall be administered by the Association Administrator

under the control and supervision of the Board of Directors. The

Administrator will be authorized to disburse funds for the

processing of covered claims and administrative costs. All parties

having check writing authority on Association funds shall be

bonded to the Association in an amount established by the Board

of Directors.

 

 

3.8.9 The Board of Directors will provide for an audit of the accounts and

records of the Association. When such an audit of the accounts

and records is made by the Washington State Auditor’s office, a

report thereof shall be filed as a record with the office of the

Administrator. Such reports shall be conducted and filed as

required by law. Costs of this audit shall be borne by the

Association and shall be considered as administrative costs.

 

 

3.8.10 Pursuant to the laws and regulations of the State of Washington,

the Association elects to invest its assets in permissible

investments in a manner which is permitted by law, such manner

of investment to be selected from time to time by resolution of the

Board of Directors.

 

 

3.8.11 The Board of Directors shall establish an annual budget for the

Association. The Administrator shall submit a proposed budget for

the following fiscal year 60 days prior to the end of each fiscal year

to the Board of Directors. Fiscal years for the Association shall be

from December 1 through November 30 of the next calendar

year. The Board of Directors shall determine the estimated

expenses and costs to be incurred by the Association for the next

fiscal year and shall adopt a budget derived from the

Administrator’s proposed budget. The budget shall be in a form to

provide the following information for the Association as a whole:

(1) beginning

  INTERLOCAL AGREEMENT 8

and ending unreserved fund balance, (2) anticipated revenues in

detail, and (3) appropriations in detail. The Board of Directors

shall apportion that budget cost among the Members and

Associates. All payments due to the Association from Members or

Associates upon the basis of each budgeted assessment shall be

paid as invoiced for the fiscal year for which the assessment is

made.

 

 

3.8.12 The first budget and premium assessments shall be proposed by

the Administrator and approved by the Board of Directors not later

than 30 days after the effective date of this Agreement.

 

 

3.8.13 Any vacancies on the Board of Directors that occur during a term

of office shall be filled by an election of the Board of Directors by a

simple majority vote. Any replacement shall fill out the unexpired

term of the committee member replaced.

 

 

3.9 Service Representative Relationship.

 

 

3.9.1 Each participating Member or Associate of the Association shall

designate a servicing representative to act on their behalf in liaison

with the needs of the Association Administrator. Should a

participating Member choose not to designate a local servicing

representative, the Association shall supply such services in

accordance with a fee schedule adopted annually by the Board of

Directors. Service representatives’ minimum duties and criteria

will be established by resolution of the Board of Directors and

reviewed annually. Duties will include, but are not limited to the

providing of local claims assistance, the securing of underwriting

information, completion of applications, updating of vehicle lists

and information and such other functions as the Board of Directors

may from time to time establish by resolution.

 

 

3.9.2 Any fees to be paid the servicing representative by each Member

or Associate will be established and paid by the Member or

Associate.

 

 

3.9.3 Each Member and Associate agrees to indemnify and hold the

Association, its Administrator, employees and agents, harmless

from and indemnify them against any claims, complaints, causes

  INTERLOCAL AGREEMENT 9

of action or judgments arising from any allegation of a failure of the

performance or negligence on the part of the Member’s or

Associate’s servicing representative including a failure to

communicate to or forward communications from the Association,

the Association’s Administrator or any Association insurer. The

employment of a servicing representative and the scope of the

services performed by that representative is completely within the

domain of the Member or Associate. A Member or Associate acts

upon the advice and actions or inactions of its servicing

representative at its sole risk.

 

 

3.10 Effective Date of Pooled Insurance Purchasing Program.

 

 

The Joint Insurance Purchasing Pool shall become effective on

September 1, 1988 or upon execution of this Agreement by two or more

Members, whichever occurs first.

 

 

3.11 Contingent Liability and Retroactive Assessments.

 

 

3.11.1 Pursuant to the provisions of Revised Code of Washington Section

48.62.060, each Regular Member shall be contingently liable for

the liabilities of the Association in the event the assets or

insurance of the Association are not sufficient to cover its liabilities.

Any actual or projected deficits of the Association shall be financed

through retroactive assessments levied against each Regular

Member in accordance with the following cost allocation

methodology.

 

 

3.11.2 In the event the Association’s assets should be insufficient to

cover liabilities, the Board of Directors shall direct the

Administrator to reassess Regular Members an amount according

to the following formula:

 

 

Member (Liability Due and Not Member Contribution or

Reassessment = Serviced By Current X Assessments Since Inception

Amount Pool Assets) + (Required TOTAL OF ALL Assessments

Reserve Account) or Contributions Since Inception

 

 

The reassessment will be implemented only after a review of the

circumstances surrounding the deficiency by the Board of Directors

and approved by the Board of Directors. Should any Member leave

  INTERLOCAL AGREEMENT 10