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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 15, 2010 <br />Action Agenda <br />Item No. 4 - Q <br />SUBJECT: Approval of Interlocal Agreement for Insurance Pool Participation <br />DEPARTMENT: Asset Management & PUBLIC HEARING: (Y /N) No <br />Purchasing Services (AMPS) <br />ATTACHMENT(S): <br />Interlocal Agreement for a Group Self - <br />Insurance Fund for Risk Sharing or <br />Group Purchase of Coverage <br />Resolution to Adopt the Interlocal <br />Agreement and to Join the NCACC <br />Risk Management Pool <br />INFORMATION CONTACT: <br />Pam Jones, (919) 245 -2652 <br />PURPOSE: To approve an interlocal agreement supporting the County's participation in the <br />NCACC -Risk Management Insurance Pools for Liability and Property, Workers' Compensation <br />and Group Benefits insurance coverage. <br />BACKGROUND: Since the 1980's Orange County has insured its business interests and <br />workers' compensation coverage through an insurance pool established by the North Carolina <br />Association of County Commissioners ( NCACC). For the past several years, the pool has also <br />provided Group Benefits (health insurance) coverage for County employees. Coverage for <br />Workers' Compensation and Property and Liability Coverage is included in the FY2010 -11 <br />Manager's Recommended Budget for July 1, 2010 renewal. The Group Benefits renewal is off- <br />cycle, with renewal for this benefit to be determined later this year for a January 1, 2011 <br />renewal date. <br />By way of background, the pools were formed to provide sufficient, reliable and constant <br />insurance coverage to Counties at reasonable costs. In the mid- 1980's Orange County, like <br />other local governments across the nation, was unable to secure coverage for some of its <br />riskier business interests, such as law enforcement and jail. In addition, the coverage that was <br />available for other business interests was prohibitively expensive. The cyclical expansion and <br />contraction of the insurance industry affecting both the availability of coverage and the cost <br />becomes a moot issue with participation in the pool and gives the County stability and <br />assurance that County coverage is written to fit local government's specific business needs at a <br />competitive price. Further, the pool provides a wide variety of services to assist counties in <br />managing their respective risks, examples of which include assistance with safety and wellness <br />program development, incentives programs and other risk management advice as needed. <br />