06. Resolution 5356 - Interlocal Agreement - MMIACity of Kalispell
201 1" Ave E. P.O. Box 1997
Kalispell, Montana 59903-1997
(406) 758-7000 Fax (406)7757
REPORT TO: Honorable Mayor and City Council
FROM: Terry Mitton, Director of Human Resources
SUBJECT: Recommendation to adopt by Resolutions the following Montana
Interlocal Agreement/Program Documents:
® Interlocal Agreement
® Workers' Compensation Program Agreement
® Liability Program Agreement
® Property Program Agreement
® Employee Benefits Program Agreement
MEETING DATE: April 20, 2009
BACKGROUND: Recently the Montana Municipal Insurance Authority (MMIA) Board of
Directors met and approved a name change to that of the Montana Municipal "Interlocal"
Authority. This was done in concern to the role and mission MMIA plays and the services
provided to member entities, which includes the City of Kalispell. MMIA is not an insurance
company, but a member services organization that operates four separate risk retention pools and
provides risk management services to municipalities in Montana. For legal and political reasons,
the Board felt it was important to remove the connotation in their name that might suggest they
are an insurance company, and select a name that best reflects who they are and what they do.
As a result of this change MMIA is requesting that each member entity, including the City of
Kalispell, recognize and adopt by resolution their name change.
RECOMMENDATION: Council consider recognizing and adopting, by resolution,
MMIA's new name on the above noted agreements.
Respectively submitted,
Terry tton Myrtebb
Hu tria Resources Director Interim City Manager
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AGREEMENT.A RESOLUTION APPROVING AND ADOPTING THE MONTANA MUNICIPAL
INTERLOCAL AUTHORITY REVISED AND RESTATED INTERLOCAL
WHEREAS, the City of Kalispell, Montana is, duly organized under the laws of the State of
Montana; and
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, Mont. Code Ann. Title 7, Chapter 11, Part 1, (the "Interlocal Cooperation Act")
authorizes political subdivisions to create interlocal agreements to jointly perform
any undertaking that each of them is authorized by law to perform; and
WHEREAS, Mont. Code Ann. § 2-9-211, authorizes political subdivisions of the State,
separately or jointly with other subdivisions, to procure insurance to use a
deductible or self-insurance plan, wholly or in part, and to establish a
self-insurance or deductible reserve fund; and
WHEREAS, Mont. Code Ann. § 2-9-211 authorizes political subdivisions or a board created
pursuant to an interlocal agreement, acting on behalf of such political subdivisions
to issue and sell bonds or notes for the purposes of funding a self-insurance or
deductible reserve fund; and
WHEREAS, Mont. Code Ann. § 2-18-702, authorizes cities and towns to enter into group
hospitalization, medical, health, including long-term disability, accident or group
life insurance contracts or plans for the benefit of their officers and employees
and their dependents; and
WHEREAS, Mont. Code Ann. § 2-18-711, permits the establishment of group programs by
local government entities to provide employee group benefits; and
WHEREAS, Mont. Code Ann. § 39-71-403, authorizes public corporations, which term
includes cities and towns, to self -insure, either separately or jointly with other
public corporations for workers' compensation coverage; and
WHEREAS, the Montana Municipal Interlocal Authority (Authority) is a joint exercise of
powers entity established pursuant to an Interlocal Cooperation Agreement in
accordance with the provisions of the Interlocal Cooperation Act for the purpose
of providing pooled risk coverage programs for the Member Entity 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 governing board of each Member Entity has determined that it is in its own
best interest, and in the public interest that this Agreement be executed and that it
participate as a member of the public entity created by this Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell hereby approves and adopts this Revised and
Restated Interlocal Agreement.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 20TH DAY OF APRIL, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
A
• .
MONTANA MUNICIPAL INTERLOCAL AUTHORITY
Table of Contents
SECTION1:
DEFINITIONS............................................................................................................................ 2
SECTION2:
PURPOSES..............................................................................................................................
4
SECTION 3:
PARTIES TO AGREEMENT....................................................................................................
5
SECTION4:
TERM.........................................................................................................................................
5
SECTION 5:
CREATION AND CONTINUATION OF THE AUTHORITY ....................................................
5
SECTION 6:
POWERS OF THE AUTHORITY.............................................................................................
5
SECTION 7:
MEMBER ENTITY RESPONSIBILITIES AND POWERS ......................................................
6
SECTION 8:
THE BOARD OF DIRECTORS................................................................................................
7
SECTION 9:
MEETINGS AND RECORDS...................................................................................................
9
SECTION 10:
POWERS OF THE BOARD OF DIRECTORS.....................................................................10
SECTION11:
OFFICERS.............................................................................................................................12
SECTION 12:
EXECUTIVE COMMITTEE....................................................................................................12
SECTION 13:
STANDING AND SPECIAL COMMITTEES_______________________________________
92
SECTION14:
STAFF....................................................................................................................................13
SECTION 15:
DEVELOPMENT, FUNDING, IMPLEMENTATION AND JOINING PROGRAMS .............13
SECTION 16:
ACCOUNTS AND RECORDS..............................................................................................16
SECTION 17:
RESPONSIBILITIES FOR FUNDS AND PROPERTY.........................................................16
SECTION 18:
WITHDRAWAL......................................................................................................................17
SECTION 19:
CANCELLATION...................................................................................................................17
SECTION 20:
WITHDRAWAL OR CANCELLATION OF PARTICIPATION IN A PROGRAM ................18
SECTION 21:
TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS .............................18
SECTION 22:
LIABILITY OF BOARD OF DIRECTORS, OFFICERS AND COMMITTEE MEMBERS ...18
SECTION23:
BYLAWS................................................................................................................................19
SECTION24:
NOTICES...............................................................................................................................19
SECTION 25:
AMENDMENT........................................................................................................................19
SECTION 26:
PROHIBITION AGAINST ASSIGNMENT............................................................................20
SECTION 27:
AGREEMENT COMPLETE...................................................................................................20
SECTION 28:
EFFECTIVE DATE OF AMENDMENTS...............................................................................20
SECTION 29:
FILING WITH SECRETARY OF STATE ANDCOUNTY CLERK AND RECORDERS ......
20
SECTION30:
EXECUTION..........................................................................................................................20
SIGNATUREPAGE........................................................................................................................................21
REVISED AND RESTATED INTERLOCAL AGREEMENT
GOVERNING THE MONTANA MUNICIPAL
INTERLOCAL AUTHORITY
EFFECTIVE AS OF July 1, 2009
THIS AGREEMENT is made in the State of Montana by and among local political
subdivisions organized and existing under the laws of the State of Montana (the State),
hereinafter referred to as "Member Entities" which are parties signatory to the Agreement.
Member Entity(ies) are sometimes referred to in this Agreement as "party(ies)."
RECITALS
WHEREAS, Article XI, Section 7 of the Montana Constitution provides that a political
subdivision may a) cooperate in the exercise of a 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
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authorizes political subdivisions to create interlocal agreements to jointly perform any
undertaking that each of them is authorized by law to perform; and
WHEREAS, Mont. Code Ann. § 2-9-211 authorizes political subdivisions of the state,
separately or jointly with other subdivisions, to procure insurance to use a deductible or self-
insurance plan, wholly or in part, and to establish a self-insurance or deductible reserve fund;
and
WHEREAS, Mont. Code Ann. § 2-9-211 authorizes political subdivisions or a board
created pursuant to an interlocal agreement, acting on behalf of such political subdivisions to
issue and sell bonds or notes for the purposes of funding a self-insurance or deductible reserve
fund; and
WHEREAS, Mont. Code Ann. § 2-18-702, authorizes cities and towns to enter into group
hospitalization, medical, health, including long-term disability, accident or group life insurance
contracts or plans for the benefit of their officers and employees and their dependents; and
WHEREAS, Mont. Code Ann. § 2-18-711, permits the establishment of group programs
by local government entities to provide employee group benefits; and
WHEREAS, Mont. Code Ann. § 39-71-403, authorizes public corporations, which term
includes cities and towns, to self -insure, either separately or jointly with other public
corporations for workers' compensation coverage; and
WHEREAS, the Member Entities executing this Agreement desire to join together for the
purposes of:
1. Developing effective risk management programs to reduce the amount and
frequency of their losses;
MMIA Interlocal Agreement, July 1, 2009 Page 1
2. Sharing some portion, or all, of their losses;
3. Jointly purchasing other insurance, reinsurance, or excess insurance;
4. Jointly make deposits which may take the form of assessments to an account or
surplus account and pay premiums for the purposes of participating in group or
captive insurance, excess insurance or reinsurance programs, in whole or in part;
5. Jointly issuing bonds or notes to fund a self-insurance or deductible reserve;
6. Jointly purchasing administrative and other services when related to any of the other
purposes; and
7. Jointly provide such other administrative services to political subdivisions of the
State;
WHEREAS, the governing board of each Member Entity has determined that it is in its
own best interest, and in the public interest that this Agreement be executed and that it
participate as a member of the public entity created by this Agreement.
NOW, THEREFORE, in consideration of the mutual benefits, promises and agreements
set forth below, the parties hereby agree as follows:
Section 1: DEFINITIONS
Agreement or Revised Agreement shall mean this Revised and Restated Interlocal
Agreement.
Assessment shall mean with respect to each Program the charges, fees and
assessments made by the Authority for participation in a Program as the same may be set forth
in the individual Program Agreements or other Program documents.
Authority shall mean the Montana Municipal Interlocal Authority created by this
Agreement.
Board of Directors or Board shall mean the governing body of the Authority.
Bonds and Notes shall mean Bonds or Notes issued by the Authority pursuant to the
Law or other enabling legislation as may hereafter be enacted on behalf of, and authorized by,
Member Entities for the purpose of financing a Program.
Bond or Note Resolution shall mean the Bond or Note Resolution adopted by a
Member Entity authorizing the Authority to issue Bonds or Notes on its behalf.
Bylaws shall mean the bylaws adopted by the Board prescribing the rules for the
operations of the Authority.
Chair shall mean the Chair of the Board of Directors.
MMIA Interlocal Agreement, July 1, 2009 Page 2
Claim shall mean a claim made against a Member Entity arising out of a Loss which is
covered by a Program of the Authority in which the Member Entity is a participant.
Coverage Year shall mean, with the exception of the initial coverage period, for each
Program of the Authority, that period of twelve months beginning and ending as set forth in the
Program Agreement.
Deductible shall mean that portion of a Lloss experienced by a Member Entity which is
retained as a liability or potential liability of the Member Entity, and is not subject to payment by
the Authority under an Agreement.
Director shall mean a member of the Board of Directors.
Excess Insurance shall mean one or more additional policies or programs of insurance
or risk sharing purchased or participated in by the Authority as part of a Program to provide for
the payment of Losses in excess of the types and amounts of coverage provided by the
Authority directly in the primary Program Agreement(s) or applicable Memorandum of Coverage
with respect to a Program.
Executive Committee shall mean the Executive Committee of the Board of Directors of
the Authority.
Fiscal year shall mean that period of twelve months which is established by the Board
of Directors as the Fiscal Year of the Authority.
Interlocal Cooperation Act shall mean Title 7, Chapter 11, Part 1, Mont. Code Ann. as
amended.
Law shall mean those provisions of the Montana Constitution and Montana statutes, as
amended, and such other laws of the state of Montana which authorize the Member Entities
either jointly or severally to engage in activities in furtherance of the purposes for which this
Authority was created.
Loss shall mean a liability or potential liability of a Member Entity, as the same may be
more particularly defined in the Program Agreement or Memorandum of Coverage or other
Program documents which relate to specific Programs of the Authority.
Member Entity(ies) shall mean any political subdivision which has executed this
Agreement and has joined and is a member in good standing in one or more of the Programs
established by the Authority.
Memorandum of Coverage shall mean the document or documents issued by the
Authority with respect to each Program specifying the type and amount of coverages provided
to the Member Entities by the Authority.
Mont. Code Ann. shall mean the Montana Code Annotated.
Open Meeting Law shall mean Title 2, Chapter 3, Parts 1 and 2, Mont. Code. Ann., as
amended.
MMIA Interlocal Agreement, July 1, 2009 Page 3
Policies and Procedures shall mean the Policies and Procedures manual(s) adopted
by the Board specifying the policies and procedures to be followed by the Authority and Member
Entities in the Programs of the Authority.
Program shall mean arrangements to provide coverage with respect to specific types of
claims, losses, damages and liabilities of Member Entities, which may include, but not be limited
to, liability, property, workers' compensation, employee health benefits, life, disability, vision and
dental benefits.
Program Agreement shall mean the agreement or agreements by and between the
Authority and the Member Entities which are participants in a Program setting forth the terms
and conditions of each Program offered by the Authority.
Reinsurance shall mean either treaty reinsurance or facultative reinsurance purchased
by the Authority, as part of a Program.
SECTION 2: PURPOSES
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purposes:
To jointly develop and fund, as provided by applicable law, programs for:
A. workers' compensation and occupational disease coverage;
B. comprehensive liability coverage;
C. property coverage
D. employee health, dental, vision and life coverage
E. disability and group disability coverage;
F. other forms of coverage as the Member Entities or some of them may deem
appropriate;
G. participation in group or captive insurance, excess insurance or reinsurance
programs, in whole or in part.
2. To develop or procure, as the Board of Directors of the Authority may from time -
to -time determine, administrative services in support of the Programs developed
and funded by the Member Entities pursuant to this Agreement, including but not
limited to:
A. risk management consulting;
B. loss prevention and control;
C. centralized loss reporting;
D. actuarial consulting;
E. claims adjusting;
F. general legal services and legal defense;
G. accounting and auditing services.
3. To provide such administrative services through the Authority to political
subdivisions of the state on such terms and conditions as the Board of Directors
of the Authority may establish, provided that the Authority must, at a minimum,
recover the costs associated with each such service made available to such
political subdivisions.
MMIA Interlocal Agreement, July 1, 2009 Page 4
All such purposes shall be accomplished through a joint exercise of powers by Member
Entities pursuant to this Agreement, to be administered by a separate legal entity, the Montana
Municipal Interlocal Authority, as created herein.
SECTION 3: PARTIES TO AGREEMENT
Each Member Entity, as a party to this Revised Agreement, certifies that it intends to and
does contract with, for the purposes and to the extent as herein provided, all other parties who
are signatories of this Revised Agreement and, in addition, with such other political subdivision
as may later be added as a party to, and signatory of, this Revised Agreement. Each party also
certifies that the removal of any party from this Revised Agreement, pursuant to Section 18 or
19, shall not affect this Revised Agreement or the remaining parties' intent to contract as
described above with the other parties to the Revised Agreement then remaining.
SECTION 4: TERM
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approved and executed by two-thirds of the Member Entities who are signatories to the
Interlocal Cooperation Agreement first entered into as of August 1986, as the same may have
from time -to -time been amended. This Revised Agreement shall continue in effect until
terminated or amended as provided herein.
SECTION 5: CREATION AND CONTINUATION OF THE AUTHORITY
Pursuant to the Interlocal Cooperation Act, there has heretofore been created a public
entity separate and apart from the Member Entities signatory hereto, which public entity shall
continue in existence and as of the effective date of this Revised Agreement be known as the
"Montana Municipal Interlocal Authority", with such powers as are hereinafter set forth.
SECTION 6: POWERS OF THE AUTHORITY
The Authority shall have all of the powers common to its Member Entities under the Law
and the Interlocal Cooperation Act, and is hereby authorized to do all things necessary and
proper for the exercise of said powers. Such powers include, but are not limited to, the
following:
To make and enter into contracts.
2. To incur debts, liabilities, and obligations.
3. To issue Bonds and Notes on behalf of its Member Entities for authorized
purposes when expressly authorized by Member Entities.
MMIA Interlocal Agreement, July 1, 2009 Page 5
by law.
4. To acquire, hold, or dispose of property, contributions and donations of property,
funds, services, and other forms of assistance from persons, firms, corporations,
and government entities.
5. To sue and be sued in its own name, and to settle any claim against it.
6. To receive contributions and donations of property, funds, services and other
forms of assistance from any source.
7. To receive and use contributions and advances from Member Entities, including
contributions or advances of personnel, equipment, or property.
8. Employ agents and employees.
9. Receive, collect, and disburse monies.
10. To invest any money in its treasury that is not required for its immediate
necessities, in the same manner and on the same conditions as Member Entities
pursuant to law.
11. Jointly make deposits which may take the form of assessments or to an account
or surplus account, and pay premiums for the purposes of participating in group
or captive insurance, excess insurance or reinsurance programs, in whole or in
part.
12. Jointly purchasing other insurance, reinsurance, or excess insurance.
13. To carry out all provisions of this Agreement.
14. To provide such administrative services through the Authority to political
subdivisions of the state on such terms and conditions as the Board of Directors
of the Authority may establish.
Said powers shall be exercised pursuant to the terms hereof and in the manner provided
SECTION 7: MEMBER ENTITY RESPONSIBILITIES AND POWERS
7.01 Responsibilities. Each Member Entity participating in a Program shall have the
following responsibilities:
A. To provide the Authority with such statistical and loss experience data
and other information as may be necessary or desirable for the Authority
to carry out the purposes of this Agreement;
B. To pay Assessments to the Authority when due;
C. To cooperate fully with the Authority in determining the cause of Losses,
and in the settlement of Claims;
MMIA Interlocal Agreement, July 1, 2009 Page 6
D. To cooperate with and assist the Authority and any insurer, claims
adjuster, legal counsel or other service provider engaged or retained by
the Authority, in all matters relating to this Agreement and a Program
Agreement;
E. To comply with and keep and perform its obligations under the Program
Agreements, Notes and Note Resolutions to which each Member Entity is
a party or signator thereto, the Bylaws, and all Policies and Procedures of
the Authority not inconsistent with the provisions of this Agreement;
F. To have an audit of its risk management activities as required by the
Authority. Such audit shall be at the expense of each Member Entity but
the charge for such audit may be included within the Assessments to be
charged for a Program;
G. To maintain its own Claims and Loss records in each Program of the
Authority in which the Member Entity is a participant, and to provide
copies of such records to the Authority or to such other committees as
directed by the Board.
7.02 Powers. Member Entities shall have the followinq powers:
A. To appoint, elect or remove members of the Board of Directors as set
forth in Section 8;
B. To expel Member Entities as set forth in Section 19;
C. To approve amendments to this Agreement as set forth in Section 25.
SECTION 8: THE BOARD OF DIRECTORS
8.01 Membership of Board, Procedure for Electing and Term in Office.
A. Membership. Subject to Section 8.01(B) of this Agreement below, the
Board shall be composed of a minimum of 15 Directors, elected in the
following manner:
(1) Each Member Entity participating in one or more of the Authority's
programs and has a population in excess of 20,000 is entitled to
appoint a Director; and
(2) An equal number of Directors to the number of those Directors
appointed in Section 8.01(A)(1) above, shall be elected by and
representing Member Entities participating in one or more of the
Authority's Programs, and having a population of less than
20,000; and
(3) One (1) "At -large Director" from a Member Entity participating in
one or more of the Authority's Programs appointed by the
Directors selected in Sections 8.01(A)(1) and (2) above.
MMIA Interlocal Agreement, July 1, 2009 Page 7
B. Automatic Expansion of the Board. In the event that a Member Entity,
during the time it is a participant in one or more of the Authority's
Programs, has an increase in its population to a number in excess of
20,000 as determined in subparagraph C herein, then such Member
Entity shall be entitled to a seat on the Board, and the total number of
Directors shall increase by two, one of whom shall be appointed by the
Member Entity which has experienced the described increase in
population, and one of whom shall be an additional representative elected
by and representing Member Entities who have a population of less than
20,000. The expansion in the number of Directors shall occur at the next
annual meeting of the Member Entities following the annual census that
established said population.
C. Procedure. The nomination and election of Board of Directors will be
conducted at the regular annual meeting of the Authority. Each Member
Entity shall appoint and elect Directors for its respective category as
herein provided. No Member Entity shall have more than one Director at
any time. To be eligible to vote for the Board of Directors, a Member
Entity must be a Member Entity in one or more of the Authority's
Proarams at the time of the annual meetina. For purposes of this
Section, the population of the Member Entity shall be as determined by
the most recent census statistics published by the United States Census
Bureau.
D. Terms.
(1) Directors shall serve a term of two (2) years from the date of the
annual meeting at which their appointment under Section
8.01(A)(1) and (3) or their election under Section 8.01(A)(2)
occurred.
(2) A Director shall hold office until: (i) the expiration of his or her
term of office or the Member Entity it represents no longer
participates in a Program of the Authority and (ii) until a successor
has been elected or appointed. In the event of a vacancy, the
remaining Directors shall appoint a replacement Director who shall
serve until the expiration of the predecessor's term or the next
Annual Meeting, whichever occurs first.
8.02 Resignation of a Director. A Director may resign upon giving thirty (30) days'
notice in writing to the Authority.
8.03 Removal of a Director. Any director may be removed from office at any time by
a majority vote of the Board for neglect of duty or malfeasance in office. Notification of such
removal or appointment of a successor shall be by instrument in writing by the Board and
delivered to all Member Entities.
8.04 Compensation of Directors. The Directors shall receive no salary but may be
compensated for any reasonable and necessary expenses incurred in connection with the
performance of their duties.
MMIA Interlocal Agreement, July 1, 2009 Page 8
8.05 Vacancies. Vacancies on the Board elected by Member Entities pursuant to
Sections 8.01(A)(2) or (3) may be filled by a majority of the remaining Directors, and each
Director so elected shall hold office until the next Annual Meeting of Member Entities and until
that Director's successor has been elected and qualified. At the next Annual Meeting, Member
Entities shall have the power to appoint a Director to fill the remaining term of office. Vacancies
on the Board for a Director appointed pursuant to Section 8.01(A)(1) shall be filled by the
respective Member Entities which appointed the representative whose position is vacant.
SECTION 9: MEETINGS AND RECORDS
9.01 Member Entity Meetings. Member Entities shall hold at least one regular
meeting each year which will be designated the "Annual Meeting", and the Board shall fix the
date, hour and place at which the Annual Meeting or other meetings of the Member Entities are
to be held. Member Entities may vote by absentee ballots or by proxy according to rules
established by the Bylaws of the Authority. The Chair shall preside at all meetings of the
Member Entities. Special meetings may be called upon written request by the Chair, by one-
third or more of the Directors, or by one-third or more of the Member Entities.
9_02 Member Fntity Vntinn Fach MPmhPr Fntitv -,hall haves nnP (l1 vnta nn Par.h
matter presented to Member Entities, but in election of Directors, shall have one (1) vote for
each Director to be elected and may not cumulate votes; provided however that in the event that
the matter presented to the Member Entities for a vote involves a specific Program, then only
those Member Entities which are participants in such Program may vote on such matter.
9.03 Board Meetings. The Board shall hold at least four (4) regular meetings each
year. The Board shall provide by resolution or in the Bylaws, the time for holding regular
meetings. The Board shall fix the place where each regular meeting is to be held. Special
meetings may be called upon written request by the Chair or one-third or more of the Directors.
9.04 Meeting Minutes. The Board shall have minutes of all regular, adjourned
regular, special and adjourned special meetings of the Member Entities, and of the Board kept
and available for inspection at any reasonable time. As soon as possible after each meeting, a
copy of the minutes of each Member Entity meeting and each Board meeting shall be made
available to each member of the Board.
9.05 Open Meeting Law. All meetings of the Member Entities and the Board shall be
called, noticed, held and conducted in accordance with the provisions of the Open Meeting Law.
9.06 Quorum and Conduct of Business. A majority of the authorized number of
Directors constitutes a quorum. Member Entities representing a majority of the Member Entities
constitutes a quorum. Every act done or decision made by a majority of Member Entities,
present in person or by proxy at a Member Entity Meeting, or Directors present in person at a
Board meeting duly held at which a quorum is present shall be the act of that body, unless a
vote by a greater number is required by law, this Agreement, or the Bylaws. Provided, however,
that any action required to be taken by the Board or the Member Entities, as the case may be,
which is restricted in effect to one of the Authority's Programs, as determined by the Chair of the
Board, shall also require the affirmative vote of a majority of those Directors in person at a
Board meeting, or Member Entities present in person or by proxy and voting at a Member Entity
Meeting who represent or are Member Entities in that Program. No business may be transacted
by the Board or by the Member Entities without a quorum of their respective members being
MMIA Interlocal Agreement, July 1, 2009 Page 9
present; provided however, less than a quorum may adjourn from time to time. Meetings of the
Board and the Member Entities shall be conducted in accordance with Roberts Rules of Order,
except when in conflict with applicable law, this Agreement or the Bylaws.
9.07 Bylaws and Policies and Procedure Manual. The Board shall cause Bylaws to
govern the day-to-day operations of the Authority, and one or more Policies and Procedures
Manual(s) to govern the day-to-day operations of the Programs to be developed, which shall not
be inconsistent either with applicable law or with this Agreement. Each Director shall receive a
copy of the Bylaws and Policies and Procedures Manual(s) developed under this Section. Each
member Entity shall receive a copy of the Bylaws and Policies and Procedures Manual(s)
developed under this Section upon request made to the Chief Executive Officer of the Authority.
The Board may adopt additional Bylaws and Policies and Procedures or change existing ones
so long as the additions or changes shall be, and remain consistent with both applicable law
and with this Agreement. The Chief Executive Officer shall send, or cause to be sent, each
Bylaw amendment and Policy and Procedure change to each Director promptly after its
adoption by the Board. The Chief Executive Officer shall send, or cause to be sent, a summary
of each such Bylaw amendment and Policy and Procedure change to each Member Entity in a
timely manner.
SECTION 10: POWERS OF THE BOARD OF DIRECTORS
10.01 The Board of Directors shall have the following powers and functions:
A. The Board shall exercise all powers and conduct all business of the
Authority, either directly or by delegation of authority to other bodies or
persons unless otherwise prohibited elsewhere in this Agreement or by
applicable law.
B. The Board may form an Executive Committee from its membership, as
provided in Section 12, and may delegate to that Committee such powers
as it sees fit, provided that all powers of the Executive Committee shall be
exercised under the direction of the Board.
C. The Board shall form, as provided in Section 13, such other committees
as it deems appropriate in conducting the business of the Authority. The
membership of any such other committee may consist in whole or in part
of non -Board members; provided that the Board may delegate its powers
and duties only to a committee of the Board composed of a majority of
Board members. Any committee which is not composed of a majority of
Board members may function only in an advisory capacity.
D. The Board shall elect the officers of the Authority, shall appoint the staff
members designated in Section 14, and shall provide for the appointment
of such other staff as may be necessary for the administration of the
Authority, pursuant to that section.
E. The Board shall cause to be prepared, and shall review, modify as
necessary, and adopt the annual operating budget of the Authority.
MMIA Interlocal Agreement, July 1, 2009 Page 10
F. The Board shall develop, or cause to be developed, and shall review,
modify as necessary, and adopt each Program of the Authority, including
all provisions for reinsurance and administrative services necessary to
carry out such Program.
G. The Board shall provide for necessary services to the Authority and to
Member Entities, by contract or otherwise, which may include, but shall
not be limited to, risk management consulting, loss prevention and
control, centralized loss reporting, actuarial consulting, claims adjusting,
accounting and auditing services, and legal services.
H. The Board shall provide general supervision and policy direction to the
Chief Executive Officer, either directly or through the Executive
Committee.
The Board shall receive and act upon reports of the committees as
established by the Board, and the Chief Executive Officer, either directly
or through the Executive Committee.
The Board shall act upon each claim involving liability of the Authority,
either directly or by delegation of authoritv to the Executive Committee or
other committee, body or person, provided that the Board shall establish
monetary limits upon any delegation of claims settlement authority,
beyond which a proposed settlement must be referred to the Board for
approval.
K. The Board may require that the Authority review, audit, report upon, and
make recommendations with regard to the safety or claims administration
functions of any Member Entity, insofar as those functions are affecting
the liability or potential liability of the Authority. The Board may forward
any or all such recommendations to the Member Entity with a request for
compliance and a statement of potential consequences for
noncompliance.
L. The Board shall receive, review and act upon periodic reports and audits
of the funds of the Authority, as required under Section 16 and 17 of this
Agreement.
M. The Board shall provide for the creation of positions through its budget
process as may be necessary for the administration of the Authority. The
Chief Executive Officer will recommend to the Board for its approval the
necessary positions for the administration of the Authority.
N. The Board shall have such other powers and functions as are provided
for in this Agreement, in the Bylaws of the Authority, and in applicable
law.
MMIA Interlocal Agreement, July 1, 2009 Page 11
SECTION 11: OFFICERS
The Board of Directors shall elect from its membership a Chair, Vice Chair,
Secretary and Treasurer, to serve for one-year terms.
The Chair, or in his or her absence, the Vice Chair, shall preside at and conduct
all meetings of the Board, the Member Entities and shall chair the Executive Committee.
The Secretary shall have those duties normally associated with such office.
The Treasurer shall have those duties normally associated with such office.
SECTION 12: EXECUTIVE COMMITTEE
12.01 Composition. The Board of Directors may establish an Executive Committee of
the Board which shall consist of five members: the Chair and Vice Chair of the Board, and three
members elected by the Board from its membership.
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for in the Bylaws of the Authority.
12.03 Responsibility. If established, the Executive Committee shall conduct the
business of the Authority between meetings of the Board, exercising such powers as are
delegated to it by the Board, through the adoption of Board resolutions, under the direction of
the Board.
12.04 Vacancy. A vacancy on the Executive Committee shall be filled as provided in
the Bylaws.
SECTION 13: STANDING AND SPECIAL COMMITTEES
13.01 Standing Committees. The Board shall establish Standing Committees as it
deems appropriate to conduct the business of the Authority consisting of at least five members.
Members of the Standing Committees shall be appointed by the Chair with approval of the
Board and such members of Standing Committees may include one or more individuals who are
not Board Members, provided that they are representatives of a Member Entity. Employees of
or consultants to the Authority may be designated as ex officio members of a Standing
Committee. Members of Standing Committees shall serve two year terms, subject to
reappointment by the Chair with the approval of the Board. The members of each Standing
Committee shall annually select one of its members to chair the Committee.
13.02 Special Committees. The Board may also establish Special Committees, as it
deems appropriate. Members of such Special Committees shall be appointed by Chair with the
approval of the Board for terms as specified by the Board, and such members of Special
Committees may include one or more individuals who are not Board Members, provided that
they are representatives of a Member Entity. Employees of or consultants to the Authority may
MMIA Interlocal Agreement, July 1, 2009 Page 12
be designated as ex officio members of a Special Committee. The Chair of Special Committees
shall be designated by the Chair of the Board.
13.03 Duties. Each committee shall have those duties as determined by the Board, or
if so directed, by the Executive Committee, or as otherwise set forth in the Bylaws.
13.04 Meetings. Each Committee shall meet on the call of its Chair, and shall report to
the Executive Committee and the Board as directed by the Board.
SECTION 14: STAFF
14.01 Chief Executive Officer. The Chief Executive Officer shall be appointed by and
serve at the pleasure of the Board and shall administer the business and activities of the
Authority, subject to the general supervision and policy direction of the Board or Executive
Committee; shall be responsible along with the Secretary for all minutes, notices and records of
the Authority; and shall perform such other duties as are assigned by the Board or Executive
Committee.
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Financial Officer. The Chief Financial Officer shall be responsible for the financial, banking and
investment activities of the Authority, and shall perform such other duties as are assigned by the
Chief Executive Officer. Except for those independent duties that the Chief Financial Officer
may owe to the Board or Finance Committee, the Chief Financial Officer shall report to the Chief
Executive Officer.
14.03 Other Staff. There shall be such other staff positions created by action of the
Board in approving the annual budget for the Authority or as may be otherwise directed by
action of the Board in regular or special meeting in order to ensure the implementation of each
Program of the Authority. The Chief Executive Officer shall hire each employee filling such staff
positions.
SECTION 15: DEVELOPMENT, FUNDING, IMPLEMENTATION and JOINING PROGRAMS
15.01 Program Coverage. Programs of the Authority may provide coverages for one
or more or any combination of the following:
A. Workers' compensation;
B. Comprehensive liability, including but not limited to general, automobile,
personal injury, contractual, malpractice liability;
C. Property;
D. Employee health, vision and dental benefits;
E. Life and disability; and
F. Any other coverages authorized by the Board.
The Board shall determine, for each such Program, a minimum number of
Member Entities required for Program implementation.
15.02 Program and Authority Funding. The Member Entities developing or
participating in a Program shall fund all costs of that Program, including administrative costs as
MMIA Interlocal Agreement, July 1, 2009 Page 13
hereinafter provided, or as provided in the Program Agreement relating to that Program. Costs
of staffing and supporting the Authority, hereinafter called Authority general expenses, shall be
equitably allocated among the various Programs by the Board, and shall be funded by the
Member Entities developing or participating in such Programs in accordance with such
allocations, as hereinafter provided or as provided in the Program Agreements.
A. Development Charge. Development costs of a Program may be funded
by a development charge, as fixed by this Agreement or determined by
the Board of Directors. The development charge shall be paid by each
Member Entity which wishes to join in development of the Program, and
thereby reserve the option to participate in the Program following
adoption by the Board. Development costs are those costs incurred by
the Authority in developing a Program for review and adoption by the
Board of Directors, including but not limited to: research, feasibility
studies, information and liaison work among political subsidiaries, and
preparation and consulting services. The development charge may also
include a share of Authority general expense, as allocated to the Program
development function by the Board.
The development charge shall be billed by the Authority to all Member
Entities upon authorization of Program development by the Board and
shall be payable within thirty (30) days of the billing date.
Upon the conclusion of Program development, any deficiency in
development funds shall be billed to all Member Entities which have paid
the development charge, on a pro-rata or other equitable basis, as
determined by the Board; and any surplus in such funds shall be
transferred into the loss reserve funds for the Program, or, if the Program
is not implemented, into the Authority's general expense funds.
B. Inter -Program Loans. Except to the extent otherwise prohibited by any
Program Agreement, one Program may loan funds to be used to develop
any new Program of the Authority, provided however, that any such loan
shall be secured by the promise of one or more Member Entities to repay
the amount of any such loan with interest, if any, as may be established
by the Board to the Program lending the funds in the event that the new
Program is not created or has inadequate funds to repay such loan.
C. Assessment. Except as provided in Section 15.03 below, all post -
development costs of a Program shall be funded by Assessments
charged to the Member Entities in the Program each Policy Year, and by
interest earnings on the funds so accumulated. Such Assessments shall
be determined by the Board upon the basis of a cost allocation plan and
rating formula developed by the Authority with the assistance of a
casualty actuary, risk management consultant, or other qualified person
and as set forth in the Program Agreement. The assessment for each
participating entity may include that entity's share of expected program
losses, program reinsurance costs, and program administrative costs for
the year, that Member Entity's share of Authority general expense
allocated to the Program by the Board, plus that Member Entity's share of
any principal and interest that may become due in that year and a debt
service reserve fund payment with respect to any notes or bonds issued
MMIA Interlocal Agreement, July 1, 2009 Page 14
by the Authority for such Program on behalf of that Member Entity, as
authorized by such Member Entity.
Assessments shall be billed by the Authority at the beginning of each
Coverage Year or as otherwise provided in the Program Agreement and
shall be due and payable as provided in a Program Agreement. At the
end of each Coverage Year, Program costs shall be audited by the
Authority. Any deficiency or surplus in the Assessments paid by a
Member Entity, as shown by such audit, may be adjusted by a
corresponding increase or decrease in the Assessments charged to that
Member Entity for the next succeeding year, or as otherwise provided in
the respective Program Agreements for each such Program, unless the
Member Entity withdraws or is cancelled from a Program, in which case
the provisions of the applicable Program Agreement and Sections 18 and
19 herein shall control.
D. Assessment Adjustments. .The Authority may adjust Assessments as
provided in the individual Program documents.
15.03 Program Implementation and Effective Date. Following development of a
Program and upon its adoption by the Board, the Authority shall qive each Member Entity which
has paid the development charge, if such charge has been levied for the Program, a written
notice of the Program, which shall include: a form of the Program Agreement, the minimum
number of Member Entities required for the Program's implementation, and the estimated first
year assessment to the Member Entities for Program participation. Each such Member Entity
may elect to enter the Program by giving written notice of such election, in a form prescribed by
the Authority, to the Chief Executive Officer within thirty (30) days of the date of the Authority's
notice of the Program. Any Member Entity which has not paid the development charge as of the
date of the Program notice may enter the Program only if it pays such charge and gives notice
of such election within the above 30-day period and executes a Program Agreement.
When at least the minimum number of Member Entities required for program
implementation shall have elected to enter a Program, the Authority shall determine the actual
first -year Assessment for each participating Member Entity so electing and shall give each such
Member Entity written notice thereof. If a Member Entity's actual first -year Assessment is more
than that estimated by the Authority, the Member Entity may revoke its election to enter the
Program by giving the Chief Executive Officer written notice of such decision within thirty (30)
days of the date of the actual Assessment notice.
When the Authority determines that at least the minimum number of participating
Member Entities required for Program implementation have entered in a Program, it shall give
written notice to that effect to all Member Entities which have elected to enter, and the Program
shall become effective on the date of such notice. All such participating Member Entities shall
thereafter be considered Member Entities in the Program, except for any Member Entity which
has revoked its entry into the Program under the terms and within the time period above
provided.
15.04 Late Entry into Program. A Member Entity which does not elect to enter a
Program upon its implementation, pursuant to Section 15.03 above, or a political subdivision
which becomes a Member Entity and a party to this Agreement following implementation of a
Program, may petition the Board for entry into the Program. Such request may be granted, if
authorized in the Program Agreement, upon a vote of a majority of all Directors present and
MMIA Interlocal Agreement, July 1, 2009 Page 15
voting, upon satisfaction of requirements set forth in the Program Agreement, provided that the
applicant meets the various underwriting criteria of the individual Program.
As a condition of late entry, the Member Entity shall pay the development charge
for a Program, if required by the Board, as adjusted at the conclusion of the development
period, but not subject to further adjustment, and also any costs incurred by the Authority in
analyzing the Member Entity's loss data and determining its annual Assessment as of the time
of entry.
SECTION 16: ACCOUNTS AND RECORDS
16.01 Annual Budget. The Authority shall annually adopt an operating budget
pursuant to Section 10 of this Agreement, which shall include a separate budget for each
Program under development or adopted and implemented by the Authority.
16.02 Funds and Accounts. The Chief Financial Officer of the Authority, under the
direction of the Board of Directors, shall establish and maintain such funds and accounts as
may be required by good accounting practices and by the Board. Separate accounts shall be
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by the Authority. Books and records of the Authority shall be open to inspection at all
reasonable times by authorized representatives of Member Entities.
The Authority shall adhere to the standard of strict accountability of public funds.
16.03 Annual Report. The Authority, within one hundred and eighty (180) days after
the close of each fiscal year, shall give a complete written report of all financial activities for
such Fiscal Year to the Board and to each Member Entity.
16.04 Annual Audit. The Authority shall either make or contract with a certified public
accountant or the Audit Division of the Department of Commerce pursuant to Title 2, Chapter 7,
Part 5, Mont. Code Ann. to make an annual fiscal year audit of all accounts and records of the
Authority. A report of the audit shall be filed as a public record with each Member Entity within
six months of the end of the fiscal year under examination. Costs of the audit shall be
considered a general expense of the Authority chargeable to each Program of the Authority as
the Board may determine.
SECTION 17: RESPONSIBILITIES FOR FUNDS AND PROPERTY
Custody of Funds. The Chief Financial Officer, under the direction of the Board of
Directors, shall have the custody of and disburse the Authority's funds.
17.01 Duties of the Chief Financial Officer. The Chief Financial Officer shall:
A. Receive and acknowledge receipt for all funds of the Authority and place
them in the treasury to the credit of the Authority.
B. Be responsible upon his or her official bond for the safekeeping and
disbursement of all Authority funds so held by him or her.
MMIA Interlocal Agreement, July 1, 2009 Page 16
C. Pay any sums due from the Authority, as approved for payment by the
Board or by any entity or person to whom the Board has delegated
approval authority, making such payments from Authority funds.
D. Verify and report in writing to the Authority and to Member Entities, as of
the first day of each quarter of the fiscal year, the amount of money then
held for the Authority, the amount of receipt since the last year, and the
amount paid out since the last report.
17.02 Property of the Authority. The Chief Executive Officer, the Chief Financial
Officer and such other persons as the Board of Directors may designate shall have charge of,
handle, and have access to the property of the Authority.
17.03 Fidelity Bonds. The Authority shall secure and pay for a fidelity bond or bonds,
and/or crime and fidelity coverage, in an amount or amounts and in the form specified by the
Board of Directors, covering all officers and staff of the Authority who are authorized to hold or
disburse funds of the Authority, and all officers and staff who are authorized to have charge of,
handle, and have access to property of the Authority.
SECTION 18: WITHDRAWAL
18.01 Withdrawal Prior to Becoming a Member Entity. A Member Entity may
withdraw as a party to this Agreement upon thirty (30) days' advance written notice to the
Authority if it has never become a Member Entity in any Program pursuant to Section 15, or if it
has withdrawn from all Programs in which it was a Member Entity, pursuant to 18.02 below.
18.02 Withdrawal Subsequent to Becoming a Member Entity. After becoming a
Member Entity in any Program pursuant to Section 15, a Member Entity may withdraw from that
Program only as provided in the applicable Program Agreement.
SECTION 19: CANCELLATION
19.01 Cancellation by the Board. Notwithstanding the provisions of Section 21, but
subject to the terms of the Program Agreements, the Board of Directors may:
A. Cancel any Member Entity from this Agreement and membership in the
Authority, upon a vote of a majority of the Directors present and voting.
Such action shall have the effect of canceling the Member Entity's
participation in all programs of the Authority as of the date that all
membership is cancelled.
B. Cancel any Member Entity's participation in a Program, without canceling
the Member Entity's membership in the Authority or participation in other
Programs, upon a vote of a majority of the Directors present and voting .
19.02 Automatic Cancellation.
MMIA Interlocal Agreement, July 1, 2009 Page 17
A. A Member Entity that does not enter one or more Programs within the
Member Entity's first year (a period of twelve months) as a member of the
Authority shall be considered to have withdrawn as a party to this
Agreement at the end of such period, and its membership in the Authority
shall be automatically cancelled as of that time, without action of the
Board.
B. A Member Entity which withdraws from all Programs in which it was a
Member Entity and does not enter any other Program for a period of six
(6) months thereafter shall be considered to have withdrawn as a party to
this Agreement at the end of such period, and its membership in the
Authority shall be automatically cancelled as of that time, without action of
the Board.
SECTION 20: WITHDRAWAL OR CANCELLATION OF PARTICIPATION IN A PROGRAM
21.01 The effect of withdrawal or cancellation of participation in a Program and the
terms and conditions governing such withdrawal shall be as set forth in each of the Program
AgrPPmentg
SECTION 21: TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS
21.01 Termination of Agreement. This Agreement may be terminated at any time
upon the election to terminate of three -fourths of the Member Entities, acting through their
governing bodies; provided, however, that this Agreement and the Authority shall continue to
exist after such election for the purpose of retiring any debt, disposing of all claims, distributing
all assets, and performing all other functions necessary to conclude the affairs of the Authority
and any program.
21.02 Distribution of Assets. Upon termination of this Agreement, all assets of the
Authority in each Program shall be distributed among Member Members as provided in the
respective Program Agreements.
21.03 Future Assessments. Following termination of this Agreement, any Member
Entity in a Program may be required to pay an additional amount of Assessment, determined by
the Board in accordance with the terms of the Program Agreement, which may be necessary to
enable final disposition of all Claims arising from Losses under that Program during the Member
Entity's period of participation.
SECTION 22: LIABILITY OF BOARD OF DIRECTORS, OFFICERS AND COMMITTEE
MEMBERS
22.01 Standard of Care. The Directors, Officers and committee members of the
Authority shall use ordinary care and reasonable diligence in the exercise of their power and in
the performance of their duties pursuant to this Agreement. They shall not be liable for any
MMIA Interlocal Agreement, July 1, 2009 Page 18
mistake of judgment or any other action made, taken or omitted by them in good faith, nor for
any action taken or omitted by any agent, employee or independent contractor selected with
reasonable care, nor for loss incurred through investment of Authority funds, or failure to invest.
22.02 Not Liable for Action of Others. No Director, Officer or committee member
shall be responsible for any action taken or omitted by any other Director, Officer or committee
member. No Director, Officer or committee member shall be required to give a bond or other
security to guarantee the faithful performance of their duties pursuant to this Agreement.
22.03 Indemnification. Any person who at any time shall serve, or shall have served
as a Director, Committee Member, or Officer of the Authority, shall be indemnified, held
harmless and defended by the Authority against all costs and expenses (including but not
limited to attorney's fees of an attorney approved by the Authority), amounts of judgments, and
settlements reasonably incurred in connection with the defense of any claim, action, suit, or
proceeding, whether civil, criminal, administrative, or other, in which he, she, or they may be
involved by virtue of such person's being or having been a Director, Committee Member, or
Officer; provided however, that such indemnity shall not be operative with respect to: (1) the
Director, Committee Member, or Officer gaining any personal profit or advantage in his or her
capacity as Director, Committee Member, or Officer, (2) the dishonesty of a Director,
Committee, or Officer, (3) a Director's, Committee Member's, or Officer's conflict of interest, (4)
willful violation of a statute or ordinance committed by a Director, Committee Member, or Officer
or with the Director's, Committee Member's, or Officer's knowledge or consent, or (5) any matter
as to which the Director, Committee Member, or Officer shall have been finally adjudged in such
action, suit or proceeding to be liable for misconduct in the performance of his or her duties as
Director, Committee Member, or Officer. The indemnification will not be operative for any
settlement unless the settlement is approved by a majority of the Directors.
SECTION 23: BYLAWS
23.01 The Bylaws of the Authority, or any subsequent amendment thereto, shall be in
conformity with the provisions of this Agreement.
SECTION 24: NOTICES
24.01 The Authority shall address notices, billings and other communications to a
Member Entity at the address and to the attention of the individual set forth on each Member
Entities' signature page hereto or as otherwise directed by the Member Entity. Member Entities
shall address notices and other communications to the Authority to the Chief Executive Officer
of the Authority, at the office address of the Authority which shall be, until otherwise notified, PO
Box 6669, Helena MT 59604-6669.
SECTION 25: AMENDMENT
25.01 This Agreement may be amended at any time by approval of any amendments
by two-thirds of the Member Entities, acting through their governing bodies, either at a meeting
MMIA Interlocal Agreement, July 1, 2009 Page 19
in person, by proxy, or by mail ballot: provided however, that no amendment may be made
which would have the effect of altering or amending any Program Agreement or altering or
limiting any obligations of the Authority or Member Entities thereunder.
SECTION 26: PROHIBITION AGAINST ASSIGNMENT
26.01 No Member Entity may assign any right, claim or interest it may have under this
Agreement, and no creditor, assignee or third party beneficiary of any Member Entity shall have
any right, claim or title to any part, share, interest, fund, assessment or asset of the Authority.
SECTION 27: AGREEMENT COMPLETE
27.01 The foregoing constitutes the full and complete Agreement of the parties with
respect to the Authority. There are no oral understandings or agreements not set forth in writing
herein, provided, however, that participation in any program of the Authority is subject to the
terms and conditions of separate Program Agreements not inconsistent herewith.
SECTION 28: EFFECTIVE DATE OF AMENDMENTS
28.01 Any amendment of this Agreement shall become effective upon the Authority
receiving notice of the approval of any Amended Agreement by the Governing bodies of two-
thirds of the Member ted.
SECTION 29: FILING WITH SECRETARY OF STATE ANDCOUNTY CLERK AND
RECORDERS
29.01 Within thirty (30) days after the approval of any amendment, the Chief Executive
Officer of the Authority shall file a copy of this Agreement with the Secretary of State and the
county clerk and recorder of each county in which Member Entities are located.
SECTION 30: EXECUTION
30.01 This Revised Agreement shall be executed on behalf of the Member Entity by
such person as may be duly authorized by the governing body of each Member Entity and
attested by the Clerk. This Agreement may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same Agreement.
MMIA Interlocal Agreement, July 1, 2009 Page 20
REVISED AND RESTATED
INTERLOCAL AGREEMENT
GOVERNING THE MONTANA MUNICIPAL
INTERLOCAL AUTHORITY
EFFECTIVE AS OF J U LY 15 2009
Signature Page
IN WITNESS WHEREOF, the undersigned parties hereto have executed this agreement
on the date indicated below.
Attest:
Clerk
City of
Address _
By
Its
Date Signed
Notices required to be mailed to the City/Town under the foregoing Agreement shall be
mailed to:
City/Town of
Attention:
MMIA interlocal Agreement, July 1, 2009 Page 21
A RESOLUTION APPROVING AND ADOPTING THE MONTANA MUNICIPAL
INTERLOCALAUTHORITYREVISED ANDRESTATED WORKERS'
COMPENSATION PROGRAM AGREEMENT.
WHEREAS, the City of Kalispell, Montana is duly organized under the laws of the State of
Montana; and
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, the state or the United States; and
WHEREAS, Mont. Code Ann. Title 7, Chapter 11, Part 1, (the Interlocal Cooperation Act)
authorizes political subdivisions to create interlocal agreements to jointly perform
any undertaking that each such political subdivision unit is authorized by law to
perform; and
WHEREAS, Mont. Code Ann. § 2-9-211, authorizes political subdivisions of the State to
procure insurance separately or jointly with other subdivisions, and to use a
deductible or self-insurance plan, wholly or in part; and
WHEREAS, Mont. Code Ann. § 39-71-403, authorizes public corporations, which term
includes cities and towns, to self -insure, either separately or jointly with other
public corporations for workers' compensation coverage;
WHEREAS, the Montana Municipal Interlocal Authority (Authority) is a joint exercise of
powers entity established pursuant to an Interlocal Cooperation Agreement in
accordance with the provisions of the Interlocal Cooperation Act for the purpose
of providing pooled risk coverage programs for the Member Entity 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;
WHEREAS, by executing this Revised and Restated Workers' Compensation Program
Agreement, the Member Entity signatory hereto has heretofore determined and
does hereby confirm that the Assessments and other charges required by the
Workers' Compensation Program have been and are just and reasonable and
advantageous to the public benefit of the citizens of such Member Entity.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell hereby approves and adopts this Revised and
Restated Workers' Compensation Program Agreement with a delayed
effective date of September 1, 2010.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 20TH DAY OF APRIL, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk