[Adopted 3-11-2002 by Ord. No. 1353]
The President and Secretary of the Council of
the Borough of Ephrata are hereby authorized to execute the Delaware
Valley Workers' Compensation Trust Agreement for the participation
of the Borough of Ephrata in the Delaware Valley Workers' Compensation
Trust, which agreement is attached hereto as "Exhibit A" and is on
file for inspection and review at the offices of the Borough of Ephrata,
114 East Main Street, Ephrata, Pennsylvania 17522. This agreement
may be amended after the enactment of this article to conform to any
requirements imposed by the Commonwealth of Pennsylvania and any of
its agencies, including the Department of Labor and Industry, Bureau
of Workers' Compensation.
The participation of the Borough of Ephrata
in the Delaware Valley Workers' Compensation Trust is authorized for
the purposes of enabling the Borough of Ephrata to reduce the cost
of workers' compensation claims through its participation in a group
self-insurance fund.
The Borough of Ephrata delegates to the Delaware
Valley Workers' Compensation Trust the authority to pay workers' compensation
benefits on its behalf in accordance with the Pennsylvania Workers'
Compensation Act and the Pennsylvania Occupational Disease Act.
The Commonwealth of Pennsylvania Department
of Labor and Industry Bureau of Workers' Compensation has approved
the issuance of a permit to the Delaware Valley Workers' Compensation
Trust to operate as a group self-insurance fund subject to certain
conditions.
As an approved self-insurance fund, the Delaware
Valley Workers' Compensation Trust will be responsible for the payment
of workers' compensation claims on behalf of all trust participants.
As set forth in the Delaware Valley Workers'
Compensation Trust Agreement, the following conditions, among others,
apply to the participation of the Borough of Ephrata in the Delaware
Valley Workers' Compensation Trust:
A. The trust shall consist of at least five homogeneous
municipal participants organized as local government agencies under
Pennsylvania law;
B. Each participant satisfies all eligibility and admission
requirements for membership in the trust;
C. Each participant pledges and agrees to appropriate
funds to pay all its annual contributions and assessments which are
required for the creation of a fund maintained at a level sufficient
to pay all workers' compensation claims and related expense incurred
by the trust participants;
D. Each participant agrees to jointly and severally assume
and discharge the workers' compensation liabilities of each and every
other participant in accordance with the Delaware Valley Workers'
Compensation Trust Agreement when required to do so by the Department
of Labor and Industry Bureau of Workers' Compensation;
E. Each participant will institute any and all safety
regulations, loss prevention measures or risk management procedures
as may be required for the purpose of minimizing or eliminating work
place risks to its employees;
F. Each participant shall cooperate 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;
G. Each participant shall designate a person to be responsible
for all contacts with the trust;
H. Each participant shall provide any information to
the Administrator or Board of Trustees as may be required to effect
the purposes and objectives of the trust; and
I. Each participant shall comply with all applicable
statutes and regulations governing the payment of workers' compensation
claims, including, but not limited to, the Pennsylvania Workers' Compensation
Act and any regulations promulgated thereunder.
The Borough of Ephrata agrees to participate
in the Delaware Valley Workers' Compensation Trust for a minimum period
of two years, subject to the terms and conditions of the Delaware
Valley Workers' Compensation Trust Agreement. After the expiration
of that minimum two-year period, each participant may withdraw under
the following conditions, subject to the right of arbitration as provided
in the Delaware Valley Workers' Compensation 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 participant is not then in default
of its obligation to pay premiums, contributions or assessments;
C. That the withdrawing participant shall pay the full
amount of a termination contribution or any additional assessments
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 participant will
not impair 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 participants, or any
legal entity created for the purpose of incurring such debt. As used
herein, the term "debt" includes any municipal bonds, certificates,
letters of credit or other instruments of municipal indebtedness.
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 Delaware Valley Workers' Compensation
Trust Agreement and any bylaws adopted pursuant thereto.
As set forth in the Delaware Valley Workers'
Compensation Trust Agreement, the funds required for the creation
and operation of the trust shall be provided by the participant municipalities
through annual appropriations.
The Delaware Valley Workers' Compensation Trust
is empowered to enter into contracts for policies of group insurance
and employee benefits, including social security, for any of its employees.
The participation of the Borough of Ephrata
in the Delaware Valley Workers' Compensation Trust will be effective
by February 1, 2002, as approved by the trust Board.
All contributions and assessments paid by the
Borough of Ephrata shall be made with funds appropriated by the Borough
of Ephrata for that purpose.
As a condition of participating in the Delaware
Valley Workers' Compensation Trust, the Borough of Ephrata agrees
to:
A. Pay all annual contributions and assessments as may
be required by the Board of Trustees;
B. 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;
C. Not withdraw from the trust for a period of two years
following its admission to the trust, subject to the terms and conditions
of the Delaware Valley Workers' Compensation Trust Agreement;
D. Withdraw from the trust only upon satisfaction of
the conditions set forth in the Delaware Valley Workers' Compensation
Trust Agreement;
E. Perform all covenants contained in the Delaware Valley
Workers' Compensation Trust Agreement and delegate to the Board of
Trustees the powers and authorities enumerated in that agreement;
F. Comply with all the conditions set forth in the Delaware
Valley Workers' Compensation Trust Agreement governing the handling
and payment of claims, including the defense and settlement thereof;
G. Appropriate the funds needed to pay all contributions
and assessments as may be required by the Board of Trustees in accordance
with the Delaware Valley Workers' Compensation Trust Agreement;
H. 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 it may
be requested by the Board of Trustees or their designee.
This article is being enacted pursuant to Title
53 of the Pennsylvania Consolidated Statutes Annotated, § 46006,
and the Pennsylvania Intergovernmental Cooperation Law.