City of College Park, MD
Prince George's County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the City of College Park 5-9-1989 by Res. No. 89-R-8. Amendments noted where applicable.]
Political subdivisions and municipal corporations of the State of Maryland (collectively "local governments"), including the City of College Park, are authorized by Article 48A, § 482B, of the Annotated Code of Maryland (1991 Replacement Volume) (the "Act"), to pool together for the purpose of purchasing casualty or property insurance or self-insuring casualty or property risks.
The Local Government Insurance Trust (the "trust") was established on July 1, 1987, pursuant to the Act and the local government insurance trust agreement for the purpose of enabling local governments to pool together to provide insurance protection for casualty and property risks and to provide risk management and loss control services for local governments, all for the public purpose of minimizing the cost of casualty insurance and property insurance claims and administration to local governments.
The Act, as amended by Chapter 459 of the Laws of Maryland of 1988, authorizes any local government to enter into an agreement to capitalize or otherwise fund an insurance pool established under the Act. The Act, as amended by Chapter 459 of the Laws of Maryland of 1988, further provides that:
A. 
Such agreement may have such provisions, terms and conditions and may be of such duration as the local government, by resolution, may determine.
B. 
Any payment obligation in such agreement shall be a general obligation of the local government to which its full faith and credit and unlimited taxing power is pledged and may not be subject to annual appropriation by the local government.
C. 
Such payment obligation may be undertaken without regard to any limitations set forth in the Charter of the local government or other applicable public local or public general law that would otherwise apply and without complying with any procedures set forth in the Charter of the local government or other applicable public local or public general law that would otherwise be required.
Pursuant to the authority granted in the Act, as amended by Chapter 459 of the Laws of Maryland of 1988, the trust and certain local governments, including the City of College Park, have determined that it is necessary and desirable to provide additional capital and surplus for the insurance pools administered by the trust for the benefit of local governments covered by the insurance pools administered by the trust (the "capitalization program").
Pursuant to the authority of the Act, as amended by Chapter 459 of the Laws of Maryland of 1988, the trust has prepared and submitted to the City of College Park for approval the following documents in order to implement the capitalization program:
A. 
A cash contribution coverage and capitalization agreement to be dated as of July 1, 1989 (the "cash capitalization agreement"), by and among the trust and certain local governments participating in the capitalization program (collectively the "cash capital participants").
B. 
The second amended and restated trust agreement to be dated as of July 1, 1989 (the "LGIT agreement"), by and among the trust and those local governments participating in the trust.
Collectively, the cash capitalization agreement and the LGIT agreement, when approved, executed and delivered, will:
A. 
Enable the trust to raise the capital necessary to support additional coverages, including excess liability coverage, environmental cleanup coverage and environmental liability coverage (the "capital coverage").
B. 
Enable the trust to make the capital coverage available to each cash capital participant.
C. 
Require each cash capital participant to make a capital contribution in cash on or before the date specified in the cash capitalization agreement.
The City of College Park has determined that it is in the best interests of the citizens of the City of College Park for the City of College Park to participate in the capitalization program and to adopt this chapter, pursuant to the Act, approving and directing the execution and delivery of the cash capitalization agreement and the LGIT agreement.
A. 
By means of this chapter, the City of College Park approves, accepts and agrees to pay a capital contribution in the principal amount of $32,859 under the terms and conditions of the cash capitalization agreement.
B. 
Under the terms of the Act, as amended by Chapter 459 of the Laws of Maryland of 1988, the capital contribution approved by this chapter and any interest payable thereon will be a general obligation of the City of College Park to which its full faith and credit and unlimited taxing power is pledged and will not be subject to annual appropriation by the City of College Park.
A. 
The capitalization program is hereby approved.
B. 
The participation of the City of College Park in the capitalization program is hereby authorized and approved.
The City of College Park is hereby authorized and directed to make a capital contribution to the trust in the amount of $32,859 pursuant to the terms and conditions of the cash capitalization agreement. Pursuant to the Act, the capital contribution in the amount of $32,859 and any interest payable thereon under the terms and conditions of the cash capitalization agreement shall be a general obligation of the City of College Park to which its full faith and credit and unlimited taxing power is pledged and may not be subject to annual appropriation by the City of College Park.
[Amended 12-10-1991 by Ord. No. 91-O-24]
A. 
The cash capitalization agreement, in substantially the form attached hereto as Exhibit A,[1] is hereby approved, and the City Manager is hereby authorized and directed to execute and deliver to the trust and the other cash capital participants the cash capitalization agreement in substantially the form attached hereto as Exhibit A, with such changes as the City Manager may approve, such approval to be evidence conclusively by the City Manager's execution and delivery of the cash capitalization agreement.
[1]
Editor's Note: Exhibit A is on file in the City offices.
B. 
The LGIT agreement, in substantially the form attached hereto as Exhibit B,[2] is hereby approved, and the City Manager is hereby authorized and directed to execute and deliver to the trust the LGIT agreement in substantially the form attached hereto as Exhibit B, with such changes as the City Manager may approve, such approval to be evidenced conclusively by the City Manager's execution and delivery of the LGIT agreement.
[2]
Editor's Note: Exhibit B is on file in the City offices.
All officials, employees and agents of the City of College Park are hereby authorized and directed to take any and all action necessary or appropriate to effect the participation of the City of College Park in the capitalization program and to execute and deliver all documents, instruments, certificates and opinions necessary or appropriate in connection therewith.
Article I of this chapter is hereby declared to be and shall at all times and for all purposes be deemed to be the findings of the City of College Park in connection with its decision to participate in the capitalization program, to make a capital contribution in the amount of $32,859 and to approve, execute and deliver the cash capitalization agreement and the LGIT agreement.