A recreation agreement among Morgan City, Morgan County and Morgan County School Board has delayed again, much as it has in the past year and a half, this time over the debate of how the entities should share deductibles and claims in the face of a lawsuit.
Because much of the property and facilities used by the recreation board belongs to the school district, the district’s liability insurance would be the first line of defense. All three entities agree that they should share in the $1,000 deductible. However, the three don’t agree who should pay the remaining court-ordered claim.
The county and school district believe they should each pay 44 percent of the remaining claim, and the city should pay the remaining 12 percent. The city, on the other hand, doesn’t think it should be responsible for 12 percent of the claim, said Morgan County Councilman Robert Kilmer.
“The idea is let’s split everything, not just the revenues, but the liability too,” Kilmer said.
City officials spurred discussion of each entity getting their own liability insurance to cover activities handled by the recreation board. Kilmer said that would be unnecessary, and the county’s insurance carrier agreed in writing.
“Our insurance said we are already covered and there was no need to purchase an additional policy,” Kilmer said. “The school district’s risk management told them the same thing.”
The school district plans to check again with their insurance carrier and discuss the item at their July 9 meeting. The county council will wait to hear the outcome of that meeting.
“My problem is I am 18 months into this project and it is starting to get old,” Kilmer said. “It is a three-way deal. Until we get all three of us on the same page, this thing is never going to end.”
The recreation interlocal agreement is supposed to be signed by all three entities to take effect July 1.
It has been discussed at Council of Government meetings that if the city does not sign on, city residents could be excluded from recreation programs or charged extra to make up for what the city is not paying.