Resolution 3767 - Joining Montana Municipal Insurance AuthorityRESOLUTION No - 3767
At the meeting of the City Council of theCitL7 of Kalispell
(name of city or town) a, city or town, organized and existing
under the laws of the State of Montana held on the 2nd day
of Ngvember 1 19 87, the quorum being present the following
resolution was adopted:
WHEREAS, Article XI, Section 7 of the Montana, Constitution
provides that a Political subdivision -may a) cooperate in the
exercise of any function, power, or responsibility with, B) share
the services of any officer or facilities with, and c) transfer or
delegate any function, power responsibility, or duty of any
officer to one or more other local government units, school
districts, the state or the United States; and
WHEREAS,.. Title 7, Chapter 11, Part 1, Montana Code Annotated
(M.C.A.) , (the Interlocal Cooperation Act) authorizes political
subdivisions to create inte'rlocal agreements to jointly perform
any undertaking that each such political subdivision unit is
authorized by law to perform; and
WHEREAS, Section 2-9-211, MCA authorizes political subdivisions
of the state to procure insurance separately or jointly with
other subd�ivisions, and to use a deductible or self-insurance
plan, wholly or in part; and
WHEREAS, the City of Kalispell (name) has determined it
to be in its best interest to join —with and has joined with
other political subdivisions in forming and creating the Montana
Municipal Insurance Authority ("Authority") through the Interlocal
Cooperation Act for the purposes of:
1. Developing effective risk management programs to reduce
the amount and frequency of their losses;
2. Sharing some portion, or all, of their losses;
3. Jointly purchasing insurance through a group program;
4. Jointly purchasing administrative and other services
through a group program when related to any of the
other purposes; and
WHEREAS, the Authority is a joint exercise of powers entity
established pursuant to the Interlocal Cooperation Act in accordance
with the provisions of the Interlocal. Cooperation Act for the
purpose of providing group self-insurance and risk retention
programs for the City of Kalispell (name) and other political
subdivisions executing the Interlocal'Agreement; and
WHEREAS, the Authority is authorized to exercise necessary
powers to implement the purposes of the Authority as established
by the Interlocal Agreement; and
WHEREAS, the Authority and the City of Kalispell
(name) in consultation with independent professional insurance
consultants, have formulated a Workers' Compensation Risk Retention
Program, the terms of which are set forth Workers' Compensation Risk
Retention Program Agreement, a true copy of which is attached to
this Resolution to be administered by the Authority to meet the
workers' compensation insurance needs of the City of Kalispell
(name) and which rovides, for joint and several liability of the
City of KaliUe,9 _ (name) along with all other Members of
the Workers' Compensation Risk Retention Program for the full amount
of any and all known or unknown claims for each Member arising during
the Member's participation in the Program, will provide the
following advantages, among others, to the Members:
(a) mutual agreement by the Members to -pay annual premium on
an experience- rated basis calculated- actuarially to
spread and moderate the cost of claims loss to each Member,
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(b) relief from the burden of paying premiums to commercial
insurers at levels reflecting the insurers' high costs
of underwriting, adininistration and brokerage fees
since the Authority's costs will be limited to reasonable
administrative costs,
(c) relief from commercial insurers' rights under excess
liability policies to force claim set�tlements which are
payable primarily in each case from the Member's self-
insurance funds,
(d) actuarially7 determined premium payments calculated to
provide amounts in each year necessary to ma i intain the
workers' compensation ri4 retention program at an
actuarial ly sound I eve-i and - -theref ore - su f f ic ient to
reserve against the incurred losses of the Member; and
WHEREAS, the Workers' Corpensation Risk Retention Program of
the Montana Municipal Insurance Authori ' ty has sought permission
to self -insure workers' compensation and occupational disease
liabilities in the state of Montana; and
WHEREAS, the City of Kalispell (name) will participate
in self -funding programs as provided for in the Montana Code
Annotated, Section 39-71-403, and in consideration of the Workers,
Compensation Division of the State of Montana approving group
self-insurance; and
WHEREAS, the Workers' Compensation Risk Retention Program of
the Montana Municipal Insurance Authority is in the public interest
and the specific interest of this city or town, it is recognized
that each individual Member of the Workers' Compensation Risk
Retention Program of the Montana Municipal insurance Authority is
jointly and severally liable'for any and all obligations incurred
by the Workers' Compensation Risk Retention Program of the Montana
Municipal Insurance Authority as provided for in the Montana Code
Annotated, Section 39-71-2103.
NOW THEREFORE BE IT RESOLVED, and it is hereby resolved that
the City of Kalispell (name) is or will become a member
of the Workers' Compensation Risk Retention Program of the Montana
Municipal Insurance Authnr-ity and her�'eby confirm�s_ and
approves all provisions of the workers' Compensation Risk Retention
Program and all applications and agreements filed on behalf of
the Workers' Compensation Risk Retention Program of the Montana
Municipal Insurance Authority with the State of Montana in connection
with its self -insuring the programs workers' compensation and
occupational disease liabilities;
BE IT FURTHER RESOLVED that the City of Kalispell (name)
hereby authorized its designated representative or representatives
to execute the Workers' compensation Risk Retention Program
Agreement attached as Exhibit A to this Resolution;
BE IT FURTHER RESOLVED that the City of Kalispell
(name) guarantees that the payment of all workers' compensation and
occupational disease liabilities of the Workerst Compensation
Risk Retention Program of t ' he �uthority and its predecessor, the
Insurance Trust of the Montana League of Cities and Towns; and
BE IT FURTHER RESOLVED that the Mayor
(title of official) and City Clerk -Treasurer (title of
official) of the . City of Kalispell _ (name) are severally
authorized to sign the Workers' Compensation Risk Retention
Program Agreement of the Authority and the State of Montana's
form entitled "Agreement of Assumption and Guarantee of Workers'
qompensation and occupational Disease Liabilities on Behalf of
the Workers' Compensation Risk Retention Program of the Montana
Municipal Insurance Authority".
I , Don Halver I the undersigned, clerk of the
CitY Of Kalispell , a city or town, do hereby certify that the
foregoing is a full, true and Correct copy of the resolution duly
passed by the City Council at the neeting of said
C W__ C oiin c i I held on the day of November 2
19 87 and that said resolution has never been revoked, rescinded'
or set aside and is now in full force and effect.
IN WITNE8S WHEREOF, I set my hand and the seal of said
City of Kalispell a city or town, this 2nd day
of November _, 1987.
CTTY OF KALISPELL
Name of Public Entity
�Igned
John "Ed" Kennedy, Jr.
Typed Name
kt_
Lazor___�_
Title
Attest:
(1�27�2
Don Halver
Typed N me
Ci_X Clerk -Treasurer
Title
1� the UndePsigned, 41
is a true COPY Of the Resolution pas*ed by the Ci that the
foregoing City Clerk of the CitY Of KalJzpall, Certify 4
CitY Of lKalizpell, Montaaa at a regular meeting held ty Council of the
Cj tY C3 erk
of the CitY Of _XaJispell
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