AGENDA #4g
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Property and Liability Insurance Interlocal Agreement
DATE: September 12, 2005
The attached resolution would authorize the Manager to enter into an amended interlocal agreement for property and liability insurance through the League of Municipalities.
The Town has property and liability insurance through the Interlocal Risk Financing Fund of North Carolina League of Municipalities. The League has amended and updated the agreement including the following changes:
1. Section II identifies the powers, duties, liability and indemnity of the Interlocal Risk Financing Fund of North Carolina Board of Trustees. The section provides a more complete list of the duties and powers of the trustees. The indemnity language is added to protect the Board of Trustees while they are acting in good faith.
2. Section IX requires a one-year commitment of participation in the Fund. Members are still required to notify on or before May 15 if they want to terminate the next year’s coverage.
3. The agreement includes headings and reordering of materials, but the essential intent of the original agreement is not changed.
In order to continue the Town’s property and liability insurance we need to have the Manager sign the updated agreement on behalf of the Town.
That the Council adopt the attached resolution that would authorize the Manager to execute the updated agreement and resolution for participation in the Interlocal Risk Financing Fund of North Carolina, the property and liability insurance program administered by the North Carolina League of Municipalities..
ATTACHMENT
A RESOLUTION AUTHORIZING THE MANAGER AND MAYOR TO EXECUTE THE UPDATED AGREEMENT AND RESOLUTION FOR PARTICIPATION IN THE INTERLOCAL RISK FINANCING FUND OF NORTH CAROLINA (2005-09-12/R-6)
WHEREAS, certain municipalities and other units of local government of the State of North Carolina, as defined in G.S. 160A-460(2), have agreed to create the Interlocal Risk Financing Fund of North Carolina and have agreed to pool the risks of their exposure to property losses and potential liabilities in the manner herein provided pursuant to, and to be governed by, the provisions of North Carolina general Statutes 160A-460 et seq. (Part 1 of Article 20 of Chapter 160A);
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council elects to become a member of the Interlocal Risk Financing Fund of North Carolina upon the terms and conditions stated in the “Interlocal Agreement for a Group Self-Insurance Pool for Property and Liability Risk Sharing,” with such future policy renewals constituting a continuing ratification of this decision to be a member of the Fund and to abide by the terms and conditions of the Interlocal Agreement.
BE IT FURTHER RESOLVED that the duly authorized officials of the Town of Chapel Hill are directed to execute in the name of the Town of Chapel Hill the “Interlocal Agreement for a Group Self-Insurance Pool for Property and Liability Risk Sharing,” a copy of which is attached to and made a part of this Resolution.
This the 12th day of September, 2005.