[Adopted 12-21-1993 as Ord. No. 1790-93]
A.
The President and Secretary of the Township Board of
Commissioners are hereby authorized to execute the agreement listed below
and any other agreements necessary for the participation of Cheltenham Township
in the Delaware Valley Insurance Trust:
(1)
Delaware Valley Insurance Trust Agreement (hereinafter
referred to as the "trust agreement," a copy of which is attached as Exhibit
A).[1]
[1]
Editor's Note: Exhibit A is on file for inspection and review
at the Cheltenham Township Building, Manager's Office, 8230 Old York
Road, Elkins Park, Pennsylvania.
B.
The documents attached hereto as exhibits are on file
for inspection and review at the Cheltenham Township Building, 8230 Old York
Road, Elkins Park, PA 19117. These documents may be subsequently modified
or amended but in no event shall such amendments or modifications materially
adversely affect the right of Cheltenham Township to participate in the Delaware
Valley Insurance Trust.
Participation of Cheltenham Township 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 the pooling
or sharing of certain liability risks.
B.
To reduce the amount and frequency of losses incurred
by each participating municipality covered under the Trust Coverage Document,
which is attached hereto as Exhibit B.[1]
[1]
Editor's Note: Exhibit B is on file for inspection and review
in the Cheltenham Township Building, 8230 Old York Road, Elkins Park, PA 19117.
C.
To minimize costs incurred by participating municipalities
in the handling and litigation of claims.
D.
To protect each participating municipality from the volatility
and high premiums of the commercial insurance markets.
As set forth in the trust agreement, the following conditions apply
to the participation of Cheltenham Township in the Delaware Valley 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 trust
agreement.
C.
Each participating municipality uses its best efforts
to provide appropriations for the payment of any contributions, premiums and
assessments required by the trust.
D.
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
risks that could contribute to losses.
E.
Each participating municipality cooperates 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 designates a contact
person to be responsible for all contacts with the trust.
G.
Each participating municipality provides any information
to the Administrator or Board of Trustees as may be required to effect the
purpose and objectives of the trust.
Cheltenham Township agrees to participate in the 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.
The withdrawing municipality is not then in default of
its obligation to pay premiums, contributions or assessments.
C.
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.
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 Cheltenham Township in the
Delaware Valley Insurance Trust will be no later than January 1, 1994.
Each participating municipality delegates to the Board of Trustees of
the Delaware Valley Insurance Trust the powers enumerated in the trust agreement.
As set forth in the trust coverage document, Cheltenham Township shall
be provided coverage for the following liability risks:
All contributions, premiums and assessments paid by Cheltenham Township
shall be made with funds appropriated by Cheltenham Township for that purpose.
If permitted under state and federal law, Cheltenham Township 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 Trustees 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 is empowered to enter into contracts
for policies of group insurance and employee benefits, including social security,
for any of its employees.
As a condition of participating in the Delaware Valley Insurance Trust,
Cheltenham Township agrees to the following:
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 years following its admission to the trust.
E.
It may withdraw from the trust only upon satisfaction
of the conditions set forth in 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 enumerated
in 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 trust agreement.
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 the claims data which may be requested
by the Board of Trustees or its designee.
This Article is being enacted pursuant to the provisions of Intergovernmental
Cooperation Law, Act of July 12, 1972, No. 180, as amended, 53 P.S. § 481,
et seq.
