HomeMy WebLinkAbout259-24 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 259-24
File Number: 2024-600
ARKANSAS MUNICIPAL LEAGUE MUNICIPAL DEFENSE PROGRAM (ENROLLMENT):
A RESOLUTION TO AUTHORIZE PAYMENT TO THE ARKANSAS MUNICIPAL LEAGUE MUNICIPAL
DEFENSE PROGRAM IN THE AMOUNT OF $95,123.36 FOR PRIOR LOSS COVERAGE, TO AUTHORIZE
ENROLLMENT INTO THE DEFENSE PROGRAM, AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS, the City has historically carried private carrier liability policies for public officials, law enforcement, and
employment practices; and
WHEREAS, the City received a notice of non -renewal from our previous provider, Hudson Insurance Company; and
WHEREAS, to receive a better premium, lower deductibles, and not have a gap in coverage, the City transitioned to
the Arkansas Municipal League Defense Program for the 4ch quarter of 2024; and
WHEREAS, to have coverage of incidents occurring before October 1, 2024, the Arkansas Municipal League requires
payment of the remaining fee for the first three quarters of 2024; and
WHEREAS, the funds are already budgeted but must be reallocated between divisions within the General Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes payment to the Arkansas
Municipal League Municipal Defense Program in the amount of $95,123.36 for prior loss coverage, and further
authorizes enrollment into the defense program.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of
which is attached to this Resolution.
PASSED and APPROVED on October 15, 2024
Page 1
Resolution. 259-24
File Number: 2024-600
Page 2
Attest:
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CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF OCTOBER 15, 2024
TO: Mayor Jordan and City Council
THRU: Paul Becker, Chief Financial Officer
FROM: Les McGaugh, Purchasing Director
SUBJECT: Approval of Payment to AML Defense Program
RECOMMENDATION:
CITY COUNCIL MEMO
2024-600
A Resolution to authorize a payment to the Arkansas Municipal League Municipal Defense Program for prior
loss coverage, to authorize for annual enrollment into the Defense Program, and to approve a budget
adjustment.
BACKGROUND:
The City has historically carried private carrier liability policies for public officials, law enforcement, and
employment practices.
DISCUSSION:
The City received a notice of non -renewal from our previous provider, Hudson Insurance Company. In order to
receive a better premium, lower deductibles, and not have a gap in coverage, the City transitioned to the
Arkansas Municipal League Defense Program for the 4th quarter of 2024. To have coverage of incidents
occurring before October 1St, 2024, the Arkansas Municipal League requires payment of the remaining fee for
the first three quarters of 2024. The remaining fee is $95,123.36. The funds are already budgeted but must be
reallocated between divisions within the General Fund.
BUDGET/STAFF IMPACT:
A budget adjustment for this fee is attached.
ATTACHMENTS: SRF (#3), BA (#4), Fayetteville MLDP Terms (#5)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
== City of Fayetteville, Arkansas
y 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
- Legislation Text
File #: 2024-600
Approval of Payment to AML Defense Program
A RESOLUTION TO AUTHORIZE PAYMENT TO THE ARKANSAS MUNICIPAL LEAGUE
MUNICIPAL DEFENSE PROGRAM IN THE AMOUNT OF $95,123.36 FOR PRIOR LOSS
COVERAGE, TO AUTHORIZE ENROLLMENT INTO THE DEFENSE PROGRAM, AND TO
APPROVE A BUDGET ADJUSTMENT
WHEREAS, the City has historically carried private carrier liability policies for public officials, law
enforcement, and employment practices; and
WHEREAS, the City received a notice of non -renewal from our previous provider, Hudson Insurance
Company; and
WHEREAS, to receive a better premium, lower deductibles, and not have a gap in coverage, the City
transitioned to the Arkansas Municipal League Defense Program for the 4th quarter of 2024; and
WHEREAS, to have coverage of incidents occurring before October 1, 2024, the Arkansas Municipal
League requires payment of the remaining fee for the first three quarters of 2024; and
WHEREAS, the funds are already budgeted but must be reallocated between divisions within the
General Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes payment to the
Arkansas Municipal League Municipal Defense Program in the amount of $95,123.36 for prior loss
coverage, and further authorizes enrollment into the defense program.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution.
Page 1
Les McGaugh
Submitted By
City of Fayetteville Staff Review Form
2024-600
Item ID
10/15/2024
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
9/30/2024 PURCHASING (160)
Submitted Date Division / Department
Action Recommendation:
A Resolution to authorize a payment to the Arkansas Municipal League Municipal Defense Program for prior loss
coverage, to authorize for annual enrollment into the Defense Program, and to approve a budget adjustment.
Budget Impact:
1010.XXX.XXXX-5311.02
General
Account Number Fund
N/A N/A
Project Number
Budgeted Item? Yes
Does item have a direct cost? Yes
Is a Budget Adjustment attached? Yes
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Project Title
$ 216,837.00
$ 48,382.94
a 168,454.06
$ 95,123.36
73,330.70
Previous Ordinance or Resolution #
Approval Date:
V20221130
City of Fayetteville, Arkansas - Budget Adjustment (Agenda)
Budget Year Division PURCHASING (160) Adjustment Number
/Org2
2024
Requestor: Les McGaugh
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
A Resolution to authorize a payment to the Arkansas Municipal League Municipal Defense Program for prior loss coverage,
to authorize for annual enrollment into the Defense Program, and to approve a budget adjustment.
COUNCIL DATE: 10/15/2024
ITEM ID#: 2024-600
Holly Black
9/30/202q 2:55 Pln
RESOLUTION/ORDINANCE
Budget Division Date
TYPE: D - (City Council)
JOURNAL#:
GLDATE:
CHKD/POSTED:
TOTAL
Account Number
- -
Increase / (Decrease)
Expense Revenue
Project.Sub#
Project Sub.Detl AT
v.2024926
Account Name
1010.040.2020-5311.02
9 -
EX
Insurance -
Personal Liability
1010.090.6600-5311.02
1010.200.2900-5311.02
13,643 -
144 -
EX
EX
Insurance -
Insurance -
Personal Liability
Personal Liability
1010.260.2600-5311.02
1010.671.2710-5311.02
3,221 -
595 -
EX
EX
Insurance -
Insurance -
Personal Liability
Personal Liability
1010.671.2730-5311.02
1010.200.2940-5311.02
22 -
(17,422) -
EX
EX
Insurance -
Insurance -
Personal Liability
Personal Liability
1010.671.2720-5311.02
(212) -
EX
Insurance -
Personal Liability
1 of 1
ARKANSAS MUNICIPAL LEAGUE
GREAT CITIES MAKE A GREAT STATE
MEMORANDUM
TO: City of Fayetteville
FROM: Mark R. Hayes, Plan Administrator — Municipal Legal Defense Program
DATE: October 1, 2024
RE: Fayetteville — MLDP Proposal
The League is excited to have the City of Fayetteville join the Municipal Legal Defense Program
("MLDP" or "Program".) We know the Program will provide exceptional liability coverage, legal
representation, and educational opportunities for the City as a whole. Of course, I recognize the City
is ending a long-term relationship with another carrier, and the City is in need of some assistance
to help make the transition to the MLDP as smooth as possible, which includes ensuring the City
has legal coverage for the relevant statute of limitation periods. While what I am proposing is very
unique for the Program, I am happy to offer a solution that benefits the City without placing too
great a risk for the MLDP.
The City is facing the difficult dilemma of not having coverage for any incident that occurred prior
to October 1, 2024, and has not already been submitted for coverage under the expiring policy. I
believe I have a solution for this potential financial liability. The City will pay the entire premium
amount for 2024; this amounts to $126.831.15. (See attached.) For that 2024 premium, the MLDP
will provide coverage and representation, per the standard terms of the MLDP's most recent
Brochure, for cases submitted related to incidents occurring on October 1, 2024, and forward.
Additionally, in exchange for the full 2024 premium, cases submitted to the MLDP related to
incidents occurring prior to October 1, 2024, and within the relevant statute of limitation periods,
will be provided coverage under the standard terms of the MLDP's most recent Brochure;
additionally, the City will be required to pay a $50,000.00 deductible for each submitted and
accepted case to offset any risks to the Program. Also, for any non -employment related incidents
occurring prior to October 1, 2024, involving the Fayetteville Police Department, the MLDP will
agree to work with Brian Wood, with whom the Fayetteville PD has a long-standing relationship.
Magnolia Mayor Parnell Vann, President • Greenwood Mayor Doug Kinslow, First Vice President • Wynne Mayor Jennifer
Hobbs, Vice President District 1 • Wrightsville Mayor Derrick Rainey, Vice President District 2 • Alma Council Member Gary
Perry, Vice President District 3 • Hot Springs Mayor Pat McCabe, Vice President District 4 • Mark R. Hayes, Executive Director
ARKANSAS MUNICIPAL LEAGUE I4ffffMlt� GREAT CITIES MAKE A GREAT STATE
Given the unique situation, I believe this is the best solution for the City and the existing MLDP
member cities. Again, we are very excited to have the City of Fayetteville join the MLDP, and we
are looking forward to a wonderful partnership!
All the best,
Mark R. Hayes
Executive Director
MRH/jp
Attachments: 2024 Dues Statement
Page 2 of 2
STATEMENT
Arkansas Municipal League op,-41
�
P.O. Box 38 €
North Little Rock, Arkansas 72115,, s
Phone (501) 374-3484
Fax (501) 374-0541
2024 Annual Service Charge, MLDP Premium, and Non-CDL Premium
CITY of FAYETTEVILLE 10/01/2023
Honorable Lioneld Jordan
113 W. Mountain
Fayetteville, AR 72701 DU2024-153
AML Service Charqe
$40.00 Plus $0.21 Per Capita ..................... $19,769.29
(Discounts applied based on AML program participation.)
The service charge for your municipality includes subscriptions to
CITY & TOWN magazine for each of your elected officials and
department heads as well as your National League of Cities membership.
Optional: Municipal Legal Defense Program (MLDP)
$1.35 Per Capita ................................. $126,831.15
(Per capita fee based on loss experience of participant.)
Pursuant to League policy legal assistance is only available to
those cities and towns participating in the MLDP. The MLDP
provides members with drug and alcohol testing of employees
with commercial driver's licenses (CDL's), as well as
financial protection and an attorney in various types of
litigation, subject to the terms of the MLDP.
Optional: MLDP Non-CDL Employee Drug Testing Program
Enclosed you will find communication regarding the elimination
of the Non-CDL Optional Drug Testing Program. CDL Testing will
continue to be included in the MLDP dues, but the Optional Non-CDL
Drug Testing Program will not be offered or administered through
MLDP in 2024.
Total 2024 AML and MLDP Services .................. $146,600.44
