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RESOLUTION BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS TO APPROVE AN ASSESSMENT BY ARKANSAS PUBLIC ENTITY RISK MANAGEMENT ASSOCIATION (APERMA)
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WHEREAS, City of Jonesboro became a foundational member of APERMA effective January 1, 1990 through an Intergovernmental Cooperative Agreement with the Association’s joint purpose being to provide casualty and property protections to its participants; and
WHEREAS, RES-18:187 approved entering into an agreement with The Arkansas Municipal League to provide Legal Defense, Property and Vehicle coverage's for City of Jonesboro effective January 1, 2019; and
WHEREAS, APERMA ceased operations as of January 30, 2020 citing multiple reasons, but primarily deterioration of surplus as the most important reason; and
WHEREAS, the Intergovernmental Cooperative Agreement provided that APERMA may assess current and former participants in the event of shortfalls in the fund in the event of dissolution; and
WHEREAS, the APERMA Board has approved an assessment of $1.645 million to its current and former participants who have held membership over the past 5 years; and
WHEREAS, City of Jonesboro’s portion of this assessment is $68,145 according to the attached Assessment Worksheet; and
WHEREAS, RES-20:244 approved this expenditure in the 2021 budget; and
WHEREAS, City of Jonesboro will be released of all claims for future assessments and no other claims will be made against the same once this assessment is received by APERMA according to the attached Release of All Claims document; and
WHEREAS, APERMA agrees to continue to provide coverage's, make payments for settlements or judgments and defend any and all claims that may be outstanding against the City of Jonesboro.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS, THAT:
Section 1: The APERMA assessment of $68,145 is approved to be paid.
Section 2: The Mayor and City Clerk are hereby authorized to execute...
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