20010710 r-01-22 R-01-22
RESOLUTION NO.
AUTHORIZING MEMBERSHIP IN THE
VIRGINIA MUNICIPAL LIABILITY POOL
WHEREAS, the City of Fairfax wishes to join with other political subdivisions to
establish the Virginia Municipal Self-Insurance Association ("Association") to create pools to
jointly and cooperatively self-insure and to pool the separate risks and liabilities of the
individual members pursuant to the terms of Title 15.2, Sections 2700-2709 of the Code of
Virginia; and
WHEREAS, through such Association, the City of Fairfax wishes to join with other
political subdivisions to create the Virginia Municipal Liability Pool ("Pool") whereby
members can jointly pool funds to provide the necessary anticipated financing for commercial
general liability, automobile liability, and automobile physical damage; and
WHEREAS, such Pool is licensed by the Bureau of Insurance of the State Corporation
Commission; and
WHEREAS, the City of Fairfax has been provided with the following documents
which provide a prototype of the responsibilities of the members of the Pool and the amount
and terms of the coverage to be provided.
1. Member Agreement (7/1/01) including the following exhibits:
a. Exhibit 1 - sample declaration pages and coverage forms (7/1/01).
b. Exhibit 2 - Virginia Municipal Self-Insurance Association Constitution and By
-Laws (7/1/95).
NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City of Fairfax certifies
its intention to become a member of the Pool beginning July 1,2001 for the current Pool year
and for two additional consecutive Pool years thereafter subject to appropriation as required
by law;
2. Such membership is contingent upon:
a. Final approval of the Member Agreement and of the membership of the City of
Fairfax by the Association's Members' Supervisory Board, or its designee.
bo
Payment of $61,517 or the first year contribution as well as an additional
$100.00 membership fee to the Pool pursuant to the quotation submitted or
such final amount as mutually agreed upon by the member and the Association
or their respective designees.
o
It is recognized that members of the Pool may be required to pay additional
assessments to the Pool and that in the event the Pool is in a deficit position which
is not corrected, a member will be liable for any and all unpaid claims against such
member.
The City Manager is authorized to do all things necessary to enable the City of
Fairfax to become a member of the Association and the Pool including but not
limited to execution of the Member agreement.
Adopted this l0th day of July, 2001.
Mayor
ATTEST:
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