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September 19, 2024 7 a) Total assessed value of real and personal property in all member cities divided into one-half of the total of the city’s share of the budget equals a factor in mils. b) Assessed value of real and personal property of each member city times the factor in mils equals the share for each city. c) For the purpose of this Agreement the total assessed valuation of real and personal property in all Member Agencies shall be the most recent such total maintained by the offices of the County Assessor. d) The population figures will be based on the Census and will be updated at a minimum of every ten years. e) It is understood and agreed that the financial obligations incurred by the Member Agencies under the provisions of this Agreement will be incurred annually, subject to the limitation that the county and cities are financially able to make funds available. f) If the Member Agencies representing 25% or more of the county’s population do not approve the budget in any fiscal year, the proposed budget will be referred back to the DEM Director and the Finance Committee for revision and recommendation. If no resolution can be reached by the committee, the Member Agencies may proceed to adopt budgets that provide those services they deem necessary for adequate emergency services protection as a whole, but any Member Agency shall be financially responsible for that portion of the budget unilaterally adopted. Any Member Agency that does not meet its financial commitment under the adopted budget will lose its voting status and/or other such privileges of membership as determined by the ESC. g) It is further agreed that any excess in federal or state funds, in any year, shall be reviewed by a finance committee, who will then make a recommendation to the ESC, as to the disposition of the excess funds. h) With respect any Member Agency that is not a City or the County, the amount to be contributed is determined by a negotiation between those Member Agencies and the DEM Director and must be approved by the ESC. A letter memorializing the agreed contribution will be an attachment to this Agreement. i) The Finance Committee will be a standing committee of the ESC and is responsible for administrative and financial recommendations to the ESC. The Finance Committee will consist of the following members: SMC Supervisor (Chair of the ESC), Vice Chair, and representatives chosen by the ESC to be limited to five members. j) The Organization shall maintain a minimum of $500,000 in the Trust Fund with a maximum of $1,500,000. This policy can be reviewed and updated with a majority vote from the ESC. Article V - INSURANCE a) The County shall add the Organization and ESC to its existing excess liability insurance coverage and shall maintain such coverage in full force and effect during the life of the Agreement. Member Agencies understand that the County is partially self-insured. Unless the Organization decides otherwise, County shall provide for the defense of any claims or litigation within the self-insured retention. Legal representation by the County will ordinarily be provided by the County Attorney. b) Any out-of-pocket expense or loss, by way of judgment or settlement, arising out of the operation of this Agreement, within the limits of the County’s self-insured retention shall be shared by the parties in accordance with the formula as described in Article IV (b). ATTY/AGR.2024.233/SMC Operational Area Emergency Services Organization (Second Revised & Restated Joint Exercise of Powers) (REV: 12-11-24 MI) (Page 7 of 15) ATTY/RESO.0093/CC RESO APPROVING AND AUTHORIZING TO EXECUTE THE SECOND REVISED AND RESTATED JPA (ESC) - EXHIBIT A REV: 12-19-24 MI Page 7 of 15