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Council briefed on nonprofit paramedic partnership; staff to bring workers’‑comp resolution next week
Summary
Staff explained a new not‑for‑profit entity (Cortland‑Peekskill RPS) to operate regional paramedics in partnership with the Town of Cortland and Town of Portland; the city must adopt a resolution committing to pass-through responsibility for its share of workers’ compensation should the entity be unable to cover claims.
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City Manager Matt Alexander described an intermunicipal effort to form a not-for-profit corporation — Cortland‑Peekskill RPS — to operate regional paramedic services shared between Peekskill and the Town of Portland. Alexander said the entity will provide its own workers’ compensation coverage but that PERMA and the entity’s insurer require a city resolution acknowledging that the city will accept pass-through responsibility for the city’s share of claims should the entity fail to fund obligations.
Council members asked how budgeting for that potential exposure would work and whether any other municipal entities had similar arrangements. Staff explained the city would budget its share in the same manner it pays PERMA contributions now, subject to yearly audits and truing-up by PERMA. Councilors requested more documentation — including Cortland’s resolution and details about insurance budgeting and corporate governance — and staff said they would provide a drafted resolution for next week so the new entity can meet coverage deadlines.
Why it matters: The governance and insurance structure determines municipal financial exposure if the nonprofit cannot meet workers’ compensation claims; councilors sought details to ensure budget and legal review ahead of a formal vote.
