[Adopted 7-11-1988 as Ord. No. 231]
The Board of Supervisors of Lower Makefield Township are hereby authorized
to execute the agreements listed below and any other agreements necessary
for the participation of Lower Makefield Township in the Delaware Valley Municipal
Liability Self-Insurance Trust:
A.
The Delaware Valley Municipal Liability Self-Insurance
Trust Participation Agreement (hereinafter referred to as the "Participation
Agreement").
B.
The Delaware Valley Municipal Liability Self-Insurance
Trust Agreement (hereinafter referred to as the "Trust agreement"), which
agreements are attached hereto as Exhibits A and B and are on file for inspection
and review at the offices of Lower Wakefield Township, 1100 Edgewood Road,
Yardley, Pennsylvania 19067. The documents attached hereto as Exhibits A,
B and C may be subsequently modified or amended prior to the effective date
of the Trust, but in no event shall any such amendments or modifications materially
adversely affect the right of Lower Wakefield Township to participate in the
Delaware Valley Municipal Liability Self-Insurance Trust.
The participation of Lower Makefield Township in the Delaware Valley
Municipal Liability Self-Insurance Trust is authorized for the following purposes
to:
A.
Provide adequate and affordable insurance coverage to
each participating municipality at the lowest possible cost by the pooling
or sharing of certain liability risks.
B.
Reduce the amount and frequency of losses incurred by
each participating municipality which are covered under the Trust coverage
document, which is attached hereto as Exhibit C and on file for inspection
and review at the township offices.
C.
Minimize costs incurred by participating municipalities
in the handling and litigation of claims.
D.
Protect each participating municipality from the volatility
and high premiums of the commercial insurance markets.
As set forth in the participation and Trust agreements, the following
conditions apply to the participation of Lower Wakefield Township in the Delaware
Valley Municipal Liability Self-Insurance Trust:
A.
Each participating municipality meets the admission and
eligibility requirements set forth therein.
B.
Each participating municipality agrees to pay all annual
premiums, contributions and assessments when due as provided in the participation
and Trust agreements.
C.
Each participating municipality use its best efforts
to provide appropriations for the payment of any contributions, premiums and
assessments required by the Trust.
D.
Each participating municipality institute any and all
safety regulations, loss prevention measures or risk management procedures
as may be required for the purpose of minimizing or eliminating hazards or
risks that could contribute to losses.
E.
Each participating municipality cooperate fully with
the Trust's service and fiscal agents, attorneys, claims adjusters and
any other agents or employees of the Trust with respect to the investigation,
defense and settlement of claims.
F.
Each participating municipality designate a contact person
to be responsible for all contacts with the Trust.
G.
Each participating municipality provide any information
to the Administrator or Board of Trustees as may be required to effect the
purposes and objectives of the Trust.
Lower Makefield Township agrees to participate in the Trust for a minimum
period of two (2) years and thereafter may withdraw under the following conditions,
subject to the right of arbitration, under the Trust and participation agreements:
A.
An opinion is rendered by the Trust certified actuary
that withdrawal will not result in the number of participants falling below
the minimum required to assure the fiscal and actuarial soundness of the Trust
itself.
B.
That the withdrawing municipality is not then in default
of its obligation to pay premiums, contributions or assessments.
C.
That the withdrawing municipality shall pay the full
amount of a termination premium as determined by the Board of Trustees in
accordance with the Trust agreement and bylaws.
D.
That the Board of Trustees shall have received a certification
from the Trust actuary that the withdrawal of the municipality will not reduce
the actuarial soundness of the Trust and, if any municipal debt has been incurred
by the participants to finance any portion of the Trust reserves, an opinion
is obtained from bond counsel that such withdrawal will not adversely affect
the tax-exempt status of any interest paid and any debt incurred by the participating
municipalities or any legal entity created for the purpose of incurring such
debt.
Each participating municipality delegates to the Board of Trustees of
the Delaware Valley Municipal Liability Self-Insurance Trust the powers enumerated
in the Trust agreement, including the right to expel participants under certain
conditions.
As set forth in the Trust Coverage Document, Lower Wakefield Township
shall be provided coverage for the following liability risks:
All contributions, premiums and assessments paid by Lower Wakefield
Township shall be made with funds appropriated by Lower Makefield Township
for that purpose. If permitted under state and federal law, Lower Wakefield
Township may incur debt for the purpose of financing any excess insurance
coverage, as set forth in the participation and Trust agreements.
The organizational structure of the Trust shall consist of a Board of
Trustees, an administrator, a claims administration/loss control consultant
and various service agents appointed by the Board of Trustees in accordance
with the participation and Trust agreements.
As set forth in the participation and Trust agreements, the funds required
for the operation of the Trust shall be provided by the participating municipalities
through annual appropriations.
The Delaware Valley Municipal Liability Self-Insurance Trust shall commence
no earlier than July 1, 1988, but no later than January 1, 1989, and continue
until terminated by two-thirds (2/3) vote of all participating municipalities.
Coverage under the Trust may be provided to all initial participants
no earlier than July 1, 1988, but no later than January 1, 1989. Should coverage
commence on July 1, 1988, it shall continue until December 31, 1988. Thereafter,
coverage under the Trust shall be provided from January 1 through December
31 of each Trust year to all participating municipalities.
As a condition of participating in the Delaware Valley Municipal Liability
Self-Insurance Trust, Lower Makefield Township agrees to the following conditions:
A.
It will make its initial contribution upon admission
to the Trust for creation of the restricted surplus fund needed to protect
participating municipalities against potentially catastrophic losses.
B.
It will timely pay all annual premiums and assessments
as may be required by the Board of Trustees.
C.
It will appoint a representative to sit on the Board
of Trustees and designate a contact person for the purpose of communicating
with the Trust or its representatives.
D.
It will agree not to withdraw from the Trust for a period
of two (2) years following its admission to the Trust.
E.
It may withdraw from the Trust only upon satisfaction
of the conditions set forth in the participation agreement and the Trust agreement.
F.
It agrees to perform all covenants contained in the participation
and Trust agreements and delegate to the Board of Trustees the powers and
authorities enumerated in the participation agreement and the Trust agreement.
G.
It will comply with all the conditions set forth in the
Trust coverage document governing the handling of claims, including the defense
and settlement thereof.
H.
It will appropriate the funds needed to pay all contributions,
premiums and assessments as may be required by the Board of Trustees in accordance
with the participation and trust agreements.
I.
It will cooperate with the Trust, its agents or employees
and provide the Trust with all information it needs for the operation of the
Trust, including any underwriting or claims data which may be requested by
the Board of Trustees or their designee.
