AGENDA #4e

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Amendment to Interlocal Agreement for Town’s Risk Financing Programs with the League of Municipalities

DATE:             August 28, 2000

The attached resolution would approve an amendment to the League of Municipalities’ Interlocal Risk Financing Fund of North Carolina which provides property and liability insurance for participating local governments, including the Town. 

The Executive Committee of the Risk Management Board of Trustees for the Board of Directors of the League recommends the change to allow the property and liability programs to be reorganized under the same statutes as the workers’ compensation and health programs (Chapter 160A-460 through 464) instead of under the insurance laws.  The recommended change as outlined in the attached letter from the League would relieve the Risk Financing Fund from unnecessary and costly recurring reporting requirements of the North Carolina Insurance Department, estimated to be about $58,000 annually.

The League requests that the governing boards of participating units authorize the proposed change.

RECOMMENDATION

That the Council adopt the attached resolution approving the requested amendment to the Interlocal Agreement for the Interlocal Risk Financing Fund.

ATTACHMENT

1.         Memo from Robert G. Haynes, N.C. League of Municipalities (p. 3).

A RESOLUTION APPROVING AN AMENDMENT TO THE TOWN’S INTERLOCAL AGREEMENT WITH THE LEAGUE OF MUNICIPALITIES FOR PROPERTY AND LIABILITY INSURANCE (2000-08-28/R-4)

WHEREAS, it is the recommendation of the Executive Committee of the Risk Management Services Board of Trustees for the Board of Directors of the North Carolina League of Municipalities to approve the amended Interlocal Risk Financing Fund of North Carolina Agreement;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the amendment to reorganize the Interlocal Agreement as follows:

            On Page 1 of the “Interlocal Agreement for a Group Risk Financing Fund for Risk Sharing”, in the first paragraph beginning with “Whereas” and appearing under the word “WITNESSETH”, the agreement is amended by striking the words “Chapter 58, Article 23 of the N. C. General Statutes, as amended” and by inserting the following words “Chapter 160A (G. S. 160A-460 through 464).”

This the 28^th day of August, 2000.