[Adopted 8-17-2010 by Ord. No. 2010-04]
New Hope Borough, by and through its Council, is hereby authorized
to execute the Trust Agreement and any other agreements necessary
for its participation in the Delaware Valley Insurance Trust. The
Delaware Valley Insurance Trust Agreement is attached hereto as Exhibit
A and incorporated herein by reference. The Trust Agreement attached hereto is on file for inspection
and review at the municipal offices of New Hope Borough. This Trust
Agreement may be subsequently modified or amended but in no event
shall such amendments or modifications materially adversely affect
the right of New Hope Borough to participate in the Delaware Valley
Insurance Trust.
The participation of New Hope Borough in the Delaware Valley
Insurance Trust is authorized for the following purposes:
A. To provide adequate and affordable insurance coverage to each participating
municipality at the lowest possible cost by pooling or sharing of
certain liability risks;
B. To 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 B and on file for inspection and
review at the New Hope Borough office;
C. To minimize costs incurred by participating municipalities in the
handling and litigation of claims; and
D. To protect each participating municipality from the volatility and
high premiums of the commercial insurance market.
As set forth in the Trust Agreement and as otherwise stated
herein, the following conditions apply to the participation of New
Hope Borough in the Delaware Valley Insurance Trust:
A. That each participating municipality must meet the admission and
eligibility requirements set forth therein.
B. That each participating municipality agrees to pay all annual premiums,
contributions and assessments when due as provided in the Trust Agreement
and bylaws;
C. That each participating municipality uses its best efforts to provide
appropriations for the payment of any contributions, premiums and
assessments required by the Trust;
D. That each participating municipality institutes 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 risk that could contribute to losses;
E. That each participating municipality cooperates fully with the Trust's
service and fiscal agents, attorneys, claims adjusters and any agents
or employees of the Trust with respect to the investigation, defense
and settlement of claims;
F. That each participating municipality designates a contact person
to be responsible for all contacts with the Trust;
G. That each participating municipality provides any information to
the Administrator or Board of Trustees as may be required to effect
the purposes and objectives of the Trust.
New Hope Borough agrees to participate in the Delaware Valley
Insurance Trust for a minimum period of two years and thereafter may
withdraw under the following conditions, subject to the right of arbitration,
under the Trust Agreement:
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.
The effective date of the participation of the Borough of New
Hope in the Delaware Valley Insurance Trust will be August 1, 2010,
or thereafter.
Each participating municipality, including New Hope Borough,
delegates to the Board of Trustees of the Delaware Valley 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, New Hope Borough
shall be provided coverage for the following risks:
A. Commercial general liability;
B. Business automobile liability;
C. Police professional/law enforcement;
D. Public officials liability; and
E. Any other risks specified in the Trust Coverage Document.
All contributions, premiums and assessments paid by New Hope
Borough shall be made with funds appropriated by the New Hope Borough
Council for that purpose. If permitted under state and federal law,
New Hope Borough may incur debt for the purpose of financing any excess
insurance coverage, as set forth in the Trust Agreement.
The organizational structure of the Trust shall consist of a
Board of Trustees, an administrator, a claims administrator/loss control
consultant and various service agents appointed by the Board of Directors
in accordance with the Trust Agreement.
As set forth in the Trust Agreement, the funds required for
the operation of the Trust shall be provided by the participating
municipalities through annual appropriations.
The Delaware Valley Insurance Trust commenced operations on
January 1, 1989, and will continue until terminated by 2/3 vote of
all participating municipalities.
Coverage under the Trust shall be provided from January 1 through
December 31 of each Trust year to all participating municipalities
in accordance with the Trust Agreement.
As a condition of participating in the Delaware Valley Insurance
Trust, New Hope Borough agrees to comply with the following conditions:
A. That 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. That it will timely pay all annual premiums and assessments as may
be required by the Board of Trustees;
C. That 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. That it will not withdraw from the Trust for a period of two years
following its admission to the Trust;
E. That it may withdraw from the Trust only upon satisfaction of the
conditions set forth in the Trust Agreement;
F. That it agrees to perform all covenants contained in the Trust Agreement
and delegate to the Board of Trustees the powers and authorities enumerated
in/of the Trust Agreement;
G. That 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. That 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 Trust Agreement;
I. That 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.
The Delaware Valley Insurance Trust is empowered to enter into
contracts for policies of group insurance and employee benefits, including
Social Security, for its employees.
This article is being enacted pursuant to Title 53 Pennsylvania
Consolidated Statutes Annotated, Sections 46006 and 46202(34) and
(36), and the Pennsylvania Intergovernmental Cooperation Act, 53 Pa.C.S.A.
§ 2301 et seq.