AGENDA #4h

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Workers’ Compensation Interlocal Agreement

 

DATE:            September 12, 2005

 

 

The attached resolution would authorize the Manager and Mayor to enter into an amended interlocal agreement for workers’ compensation insurance through the League of Municipalities.

 

BACKGROUND AND DISCUSSION

 

The Town has workers’ compensation insurance through the Interlocal Risk Sharing Group Self-Insurance Pool of the 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 reorganization of materials, but the essential intent of the original agreement is not changed.

 

In order to continue the Town’s workers’ compensation insurance we need to have the Mayor sign the updated agreement on behalf of the Town.

 

RECOMMENDATION

 

That the Council adopt the attached resolution that would authorize the Manager and Mayor to execute the updated agreement and resolution for participation in the North Carolina Interlocal Risk Management Agency’s funding of workers’ compensation insurance for the employees of the Town of Chapel Hill.

 

ATTACHMENT

 

  1. Copy of the contract for the Interlocal Agreement For A Group Self-Insurance Pool for Workers’ Compensation Risk Sharing (p. 3).

A RESOLUTION AUTHORIZING THE MANAGER AND MAYOR TO EXECUTE THE UPDATED AGREEMENT AND RESOLUTION FOR PARTICIPATION IN THE INTERLOCAL AGREEMENT FOR A GROUP SELF-INSURANCE POOL FOR WORKERS’ COMPENSATION RISK SHARING (2005-09-12/R-7)

 

WHEREAS, certain municipalities and other units of local government of the State of North Carolina, as defined in G.S. 160A-460, have agreed to create the Interlocal Agreement For A Group Self-Insurance Pool For Workers’ Compensation Risk Sharing, and have thereby agreed to pool the risk of their workers’ compensation liabilities and payment of claims for employers’ liability coverage 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 Agreement For A Group Self-Insurance Pool For Workers’ Compensation Risk Sharing upon the terms and conditions stated in the “Interlocal Agreement For A Group Self-Insurance Pool For Workers’ Compensation Risk Sharing” agreement, with such future policy renewals constituting a continuing ratification of this decision to be a member of the Pool 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 Workers’ Compensation Risk Sharing”, a copy of which is available in the Town Clerk’s office.

 

This the 12th of September, 2005.