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9 <br />(c) Nothing herein shall be construed to provide insurance coverage or indemnification to <br />an officer, employee, or volunteer of any Member for any act or omission for which <br />the officer, employee, or volunteer is guilty of malfeasance in office, willful neglect <br />of duty, or bad faith. <br /> <br />(d) To the fullest extent permitted by law, action by the Members to this Agreement are <br />intended to be and shall be construed as a “cooperative activity,” and it is the intent of <br />the Members that they shall be deemed a “single governmental unit” for purposes of <br />liability, as set forth in Minn. Stat. § 471.59, subd. 1a, and provided further that for <br />purposes of that statute, each part to this Agreement expressly declines responsibility <br />for the acts and omissions of another Member. The Members are not liable for the <br />acts or omissions of another Member to this Agreement except to the extent they have <br />expressly agreed in writing to be responsible for the acts or omissions of the other <br />Members. <br /> <br />(e) Any excess or uninsured liability shall be borne equally by all the Members, but this <br />does not include the liability of any individual officer, employee or volunteer that <br />arises from his or her own malfeasance, willful neglect of duty, or bad faith. <br /> <br />4.16 Financial Records. The Board shall maintain the books and accounts of VLAWMO <br />consistent with generally accepted accounting principles. <br /> <br />4.17 Audit. The Board shall annually cause an independent certified audit of the books and <br />accounts of VLAWMO. <br /> <br />4.18 Claims. To the extent required by Minnesota Statutes, VLAWMO shall be responsible for <br />damages caused by it. All Minnesota Statutes governing notices of claims and limits on <br />municipal liability shall be applicable to VLAWMO. To the extent permitted by <br />Minnesota Statutes, VLAWMO shall be treated as a single municipal entity for municipal <br />liability purposes. <br /> <br />4.19 Employees. The Board may employ or subcontract with such persons or entities as it <br />determines are needed to fulfill defined responsibilities of VLAWMO with the approval of <br />the Board. <br /> <br />4.20 Contracts. The Board may make such contracts and enter into such agreements as <br />necessary to fulfill its obligations under this Agreement. Any such contract or agreement <br />shall be in accordance with the Uniform Municipal Contracting Law and other applicable <br />laws. <br /> <br />4.21 Annual Report to Members. The Board shall make and file a report with the administrator <br />of each Members at least once each year that includes the following information: <br /> <br />(a) The financial condition of VLAWMO; <br /> <br />(b) The status of all VLAWMO projects and work; and <br />Page 665 of 679