08. Resolution 5358 - Liability Program Agreement - MMIA•Z Z
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Between the
AUTHORITY
as Authority
The City/Town of
MONTANA MUNICIPAL INTERLOCAL AUTHORITY
TABLE OF CONTENTS
SECTION1: DEFINITIONS...............................................................................................................................3
SECTION 2: REPRESENTATIONS, COVENANTS AND WARRANTIES....................................................5
SECTION 3: ESTABLISHMENT OF ACCOUNTS; COVERAGE; PAYMENT OF SETTLEMENTS AND
OTHER PROGRAM COSTS; PURCHASE OR ACQUISITION OF OTHER INSURANCE,
EXCESS INSURANCE OR REINSURANCE..............................................................................7
SECTION 4: TERM OF AGREEMENT; ASSESSMENT.................................................................................9
SECTION 5: INDIVIDUAL MEMBER ACCOUNTS; ACCOUNT SETTLEMENT UPON WITHDRAWAL
ORTERMINATION.....................................................................................................................11
SECTION 6: ADMISSION TO, WITHDRAWAL FROM AND EXPULSION FROM THE POOLED
COVERAGEPROGRAM............................................................................................................13
SECTION 7: INDEMNIFICATION AND RELEASE; DISCLAIMER.............................................................16
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SECTION 9: TERMINATION ASSESSMENT................................................................................................17
SECTION 10: MISCELLANEOUS..................................................................................................................17
SIGNATUREPAGE..........................................................................................................................................19
This AMENDED AND RESTATED LIABILITY COVERAGE PROGRAM
AGREEMENT, dated as of July 1, 2009, by and among the MONTANA MUNICIPAL
INTERLOCAL AUTHORITY, a joint exercise of powers entity duly organized and existing under
the laws of the State of Montana, (the "Authority"), and the City or Town of
and such other political subdivisions that may hereafter become party hereto as provided
herein, each a political subdivision duly organized and existing under the Constitution and laws
of said State, (each a "Member Entity" and collectively the "Member Entities");
RECITALS
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
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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. § 2-9-211, authorizes political subdivisions or a board
created pursuant to an interlocal agreement acting on their behalf to issue and sell bonds or
notes for the purposes of funding a self-insurance or deductible reserve fund; and
WHEREAS, each Member Entity has determined it to be in its best interest to join with
other Member Entities in forming and creating the 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.
3.
reinsurance;
4.
reserve;
5.
of the other purposes;
Sharing some portion, or all, of their losses;
Jointly purchasing or otherwise acquiring insurance, excess insurance or
Jointly issuing bonds or notes to fund a self-insurance or deductible
Jointly purchasing administrative and other services when related to any
MMIA Liability Program Agreement, July 1, 2009 Page 1
6. 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; and
WHEREAS, the 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 Authority and each Member Entity have heretofore determined following
investigation that either general liability insurance, excess insurance or reinsurance is not
available to the Member Entity from commercial insurers or from any other source or that such
insurance, excess insurance or reinsurance is not available at a commercially reasonable cost,
or general liability coverage may be available through the Authority at a cost which is
advantageous to the Member Entity; and
WHEREAS, the Authority and each Member Entity have further determined that the
periodic unwillingness or inability of the commercial insurance market to provide primary or
excess liability insurance or reinsurance to local governments at reasonable rates or, in certain
cases, at any rate, mandates that the Member Entities seek a long-term permanent solution to
this problem which will free them from exposure to the vagaries of commercial insurance cycles;
and
WHEREAS, the Authority and the Member Entities, in consultation with independent
professional consultants, have formulated the Liability Coverage Program the terms and
conditions of which are set forth in this Agreement to be administered by the Authority to meet
the general liability coverage needs of the Member Entities which will provide the following
advantages, among others, to each Member Entity:
(a) the funding of a Program Operations Fund for the purposes of paying claims
and facilitating access to the reinsurance market, as well as paying operational costs of the
Program.
(b) spread and moderate the cost of liability losses to each Member Entity by mutual
agreement of the Member Entities to pay annual Assessments on both a prospective and a
retrospective basis calculated actuarially;
(c) relief from the burden of paying premiums to commercial insurers at levels
reflecting the insurers' high costs of underwriting, administration and brokerage fees since the
Authority's costs will be limited to reasonable administrative costs,
(d) access to the reinsurance market when reinsurance is available at rates deemed
favorable by the Member Entities,
(e) access to group coverage, excess insurance, reinsurance or other coverage
programs which may provide such coverage at reasonable rates and on advantageous terms
and conditions, and
(f) assessment payments calculated to provide amounts necessary to maintain the
MMIA Liability Program Agreement, July 1, 2009 Page 2
Program Operations Fund at a sound level and therefore sufficient to reserve against the
incurred losses of the Member Entity; and
WHEREAS, in consideration of the factors recited above, the Authority has established
and has offered to its Member Entities a Liability Program since August 1986, and which
Liability Program has remained in operation since that time; and,
WHEREAS, by executing this Amended and Restated Liability Program Agreement the
Member Entity signatory hereto has heretofore determined and does hereby confirm that the
Assessments and other charges required by the Liability Program have been and are just and
reasonable and advantageous to the public benefit of the citizens of such Member Entity; and,
WHEREAS, it is the intent of the Member Entity that in executing this Amended and
Restated Liability Program Agreement that the Liability Program should remain in full force and
effect and that continuity of the Liability Program should be and is maintained with the execution
of this Amended and Restated Liability Program Agreement; and,
WHEREAS, the governing body of each Member Entity has authorized the execution of
this Agreement for the purpose of providing Coverage for such Member Entity for the benefit of
the Member Entity's residents and taxpayers and for the health and safety of the public who
interact with the Member Entity; and
WHEREAS, it is a matter for the governing board of the Member Entity to determine
whether the amount of assessments which the Member Entity pays for coverage is reasonable
and advantageous and to the public benefit of the citizens.of such Member Entity; and
WHEREAS, each Member Entity has heretofore determined and does hereby confirm
that the assessments to be required hereunder are reasonable and advantageous and to the
public benefit of the citizens of such Member Entity; and
WHEREAS, each Member Entity has knowingly and willingly entered into this
Agreement;
NOW, THEREFORE, in consideration of the above premises and of the mutual
covenants hereinafter contained and for other good and valuable consideration, the parties
hereto agree as follows:
SECTION 1: DEFINITIONS,
1.1. Definitions and Rules of Construction. Unless the context otherwise requires, the
capitalized terms and the additional terms defined in this Section shall, for all purposes of this
Agreement, have the meanings herein specified.
Administrative Costs means those ordinary and necessary costs incurred in providing
administrative services to the Program, including but not limited to, the following:
a. General administrative services
b. Loss prevention and risk assessment
C. Investment services
d. Legal services
MMIA Liability Program Agreement, July 1, 2009 Page 3
e. Accounting services
f. Actuarial services
g. Risk management consulting
h. Brokerage services.
Agreement means this Amended and Restated Liability Coverage Program Agreement,
dated as of July 1, 2009, by and among the Authority and the political subdivisions signatory
hereto, as Member Entities.
Assessment means Risk Assessment and Risk Assessment Adjustments and Special
Assessments payable on the Assessment Payment Date for any Coverage Year.
Assessment Payment Date means July 15 of each Coverage Year for Risk
Assessments or such other date as the Board may specify for Risk Assessment Adjustments or
Special Assessments.
Claim means a demand, action or suit against a Member Entity to recover for losses or
damages within or alleged to be within the scope of Coverage set forth in the Memorandum.
Consultant means a consultant qualified in the area of political subdivision liability
coverage or actuarial science, as the Authority deems appropriate.
Coverage means the coverage, excess insurance, reinsurance, and other services
provided pursuant to and in accordance with and on the terms set forth in this Agreement and in
the Memorandum provided to each Member Entity, or in such other agreements between the
Authority and a Member Entity related to other Coverage options, including, but not limited to,
rights to payment of Settlements and Judgments from funds on deposit in the Program
Operations Fund under the terms of this Agreement
Coverage Year shall mean the period beginning each July 1 and the twelve (12)
consecutive months thereafter during which this Agreement and the Memorandum shall be in
effect for each Member Entity, unless the Board of Directors designates such other period of
twelve (12) consecutive months as the period during which this Agreement and the
Memorandum may be in effect. In the case of a Member Entity which joins the Program during
a Coverage Year, the Coverage Year shall be the remaining portion of the Coverage Year from
the effective date of Coverage until the end of such Coverage Year.
Interlocal Agreement means that Interlocal Cooperation Agreement establishing the
Montana Municipal Interlocal Authority pursuant to Title 7, Chapter 11, Part 1, Mont. Code .Ann.
Judgment means a final judgment entered in a court of competent jurisdiction or by an
administrative tribunal after all appeals have been exhausted with respect to a Claim for which
Coverage is provided under this Program. The amount of any Judgment may include any costs
or expenses deemed appropriate by the Authority in connection therewith, including defense
costs as defined in the Memorandum.
Loss Reserve means amounts in the Program Operations Fund required to be
designated as reserves for payment of Settlements and Judgments pursuant to Section 3.5
hereof in accordance with prudent practice as determined by the Qualified Claims Administrator,
including additional reserves established because of changed circumstances subsequent to the
year any such Claim is filed and including the amount determined by a Qualified Consultant for
loss development of claims and unallocated loss adjustment expenses.
MMIA Liability Program Agreement, July 1, 2009 Page 4
Memorandum shall mean the Memorandum of Liability Coverage, as the same may
from time -to -time be amended setting forth the terms and conditions for which Coverage is
provided under the Liability Program.
Program means the Liability Coverage Program, the terms and conditions of which are
set forth herein.
Program Documents means this Agreement, the Interlocal Agreement, the
Memorandum, the Bylaws of the Authority, and such policies and procedures as may be
adopted by the Authority related to the Program, and all exhibits pertaining to such documents.
Program Operations Fund means the fund established to carry out the operations of
the Liability Program, including but not limited to payment of Claims, payment of Administrative
Costs, other insurance, excess insurance or reinsurance, loss reserves and unencumbered
reserves.
Qualified Claims Administrator means an individual or an organization experienced in
the handling of public entity liability claims, appointed by the Authority, or the Authority itself
provided the Authority employs individuals who have such experience in the handling of public
entity liability claims.
Settlement means the Settlement by the Authority or Member Entity in accordance with
the Memorandum of a Claim against such Member Entity. The amount of any Settlement may
include any costs or expenses deemed appropriate by the Authority in connection therewith,
including defense costs as defined in the Memorandum.
Term of the Agreement means the time during which the Agreement is in effect, or
provided in Section 4.1 of this Agreement.
Termination Assessment means the amount required to be paid by a Member Entity to
voluntarily terminate Coverage as set forth in Section 9.1 of this Agreement.
Unencumbered Reserves means the amount in the Program Operations Fund in
excess of the total amount that has been designated by the Authority as Loss Reserve and
amounts required for operations.
1.2 Other Terms. Such other terms as may appear in this Agreement which are not
defined in this Section 1 shall have such definitions as may be contained in the remainder of
this Agreement.
SECTION 2: REPRESENTATIONS, COVENANTS AND WARRANTIES
2.1. Representations, Covenants and Warranties of the Member Entities. Each
Member Entity represents, covenants and warrants to the Authority as follows:
(a) Recitals Correct. The recitals to this Agreement are true and correct.
(b) Due Organization and Existence. Such Member Entity is a political
subdivision of the State, duly organized and existing under the Constitution and laws of the
MMIA Liability Program Agreement, July 1, 2009 Page 5
State.
(c) Authorization; Enforceability. The Constitution and laws of the State
authorize the Member Entity to enter into, execute, approve and issue, as the case may be, and
to enter into the transactions contemplated by and to carry out its obligations under all of the
Program Documents, and the Member Entity has duly authorized and executed all of the
applicable Program Documents. The Program Documents constitute the legal, valid, binding
and enforceable obligations of such Member Entity in accordance with their respective terms,
except to the extent limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws or equitable principals affecting the rights of creditors generally and except as to the
limitations on remedies against public agencies generally.
(d) No violations. Neither the execution and delivery of the Program
Documents, nor the fulfillment of or compliance with the terms and conditions thereof, nor the
consummation of the transactions contemplated thereby, conflicts with or results in a breach of
the terms, conditions or provisions of any restriction or any agreement or instrument to which
such Member Entity is now a party or by which the Member Entity is bound, or constitute a
default under any of the foregoing.
(e) Risk Management Guidelines. The Member Entity covenants to
implement and follow risk management programs, guidelines and policies as adopted by the
Authority from time to time.
(f) Payment of Assessments and Acceptance of Coverage. The Member Entity
agrees to pay when due Assessment for and accept the Coverage as described herein and the
Memorandum of Coverage upon the terms and conditions set forth herein.
(g) Observance of Laws and Regulations by the Member Entity. The
Member Entity agrees to keep, observe and perform all valid and lawful obligations or
regulations now or hereafter imposed on it by contract, or prescribed by any law of the United
States, or of the State of Montana, or by an officer, board or commission having jurisdiction or
control, as a condition of the continued enjoyment of any and every right, privilege or franchise
now owned or hereafter acquired by the Member Entity, including its right to exist and carry on
business as a municipal corporation or other local government agency, to the end that such
rights, privileges and franchises shall be maintained and preserved, and shall not become
abandoned, forfeited or in any manner impaired.
2.2. Representations, Covenants and Warranties of the Authority. The Authority
represents, covenants, and warrants to each Member Entity as follows:
(a) Recitals Correct. The recitals to this Agreement are true and correct.
(b) Due Organization and Existence; Enforceability. The Authority is a legal
entity created pursuant to the Interlocal Cooperation Act, Title 7, Chapter 11, Part 1, Montana
Code Annotated, duly organized, existing and in good standing under and by virtue of the laws
of the State of Montana; has the power to enter into this Agreement and possesses by virtue of
the Interlocal Agreement full power to provide Coverage to parties signatory to the Interlocal
Agreement and this Agreement. This Agreement and the other Program Documents constitute
the legal, valid, binding and enforceable obligations of the Authority in accordance with their
respective terms, except to the extent limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws or equitable principles affecting the rights of creditors
generally.
MMIA Liability Program Agreement, July 1, 2009 Page 6
(c) No Encumbrances. The Authority will not pledge the Assessments or its
rights under this Agreement except as provided under the terms of this Agreement.
(d) Equitable Exercise of Responsibilities. The Authority will exercise all
rights and responsibilities hereunder reasonably and equitably for the benefit of all Member
Entities without preference or discrimination among Member Entities.
(e) No Violations. Neither the execution and delivery of this Agreement nor
the fulfillment of or compliance with the terms and conditions hereof nor the consummation of
the transactions contemplated hereby conflicts with or results in a breach of the terms,
conditions or provisions of the Bylaws of the Authority or any restriction or any agreement or
instrument to which the Authority is now a party or by which the Authority is bound, or
constitutes a default under any of the foregoing.
(f) Agreement to Provide Coverage. The Authority agrees to provide the
Coverage to the Member Entity described herein and in the Memorandum of Coverage and
upon the terms and conditions set forth in this Agreement.
SECTION 3: ESTABLISHMENT OF ACCOUNTS; COVERAGE; PAYMENT OF
SETTLEMENTS AND OTHER PROGRAM COSTS; PURCHASE OR ACQUISITION OF
OTHER INSURANCE, EXCESS INSURANCE OR REINSURANCE
3.1. Program Funds and Accounts. The Authority hereby creates the following Funds
and Accounts as set forth herein:
(a) Program Operations Fund. The Authority shall deposit in the Program
Operations Fund all Assessments, investment income, and other funds or revenues allocated to
the Program. This fund shall be used to pay all claims, excess insurance, reinsurance, and
administrative costs of the Program. These funds may also be expended for investment,
contribution or assessment for participation in a group or captive insurance program or pool as
provided in Section 3.6.
(b) The Program Operations Fund shall have the following accounts:
(i) one or more Program Checking Accounts into which assessments
and other revenue items shall be deposited and from which shall
be paid Program costs and expenses;
(ii) Program Investment accounts. The Liability Program shall
maintain various investment accounts in compliance with MMIA's
Investment Policy.
3.2. Coverage. The Authority hereby agrees to provide the Coverage to each
Member Entity for the Coverage Year, and each Member Entity hereby agrees to accept the
Coverage, upon the terms and conditions set forth in this Agreement, the Memorandum, or in
such other agreements between the Authority and a Member Entity related to other Coverage
options; provided, however, that the Authority may revise the Coverage during the Coverage
Year by issuing endorsements to the Memorandum provided that such revisions during the
Coverage Year do not result in an overall reduction of the Coverage.
MMIA Liability Program Agreement, July 1, 2009 Page 7
3.3. Payment of Claims, Settlements, Judgments and Administrative Costs.
Settlements and Judgments which the Authority is obligated to pay under the terms of this
Program Agreement and the Memorandum, or in such other agreements between the Authority
and a Member Entity related to other Coverage options shall be paid on behalf of the Member
Entities from the Program Operations Fund directly to the Claimants or designees. An amount
representing the Administrative Costs incurred by the Authority with respect to the Program
shall be paid to the Authority.
If the Program Operations Fund are insufficient to pay Settlements and
Judgments as may be required, the Authority shall individually assess each Member Entity to
the extent necessary to pay the award, and the assessment charged each Member Entity shall
be determined on a proportionate basis as may be determined by the Board of Directors with
the advice of its Consultant ("Special Assessment"). Any such Special Assessment shall be a
contractual obligation of the Member Entity.
3.4. Subrogation. Each Member Entity agrees that in the event of the payment of
any loss by the Program under this Agreement, the Program shall be subrogated to the extent of
such payment to all the rights of the Member Entity against any person or other entity legally
responsible for damages for said loss, and in such event the Member Entity hereby agrees to
render all reasonable assistance, other than pecuniary, to effect recovery.
3.5 Loss Reserves. The Authority shall employ or retain a Qualified Claims
Administrator for the purpose of adjusting Claims and submitting a report to the Authority and
each Member Entity setting forth (a) the amount of Loss Reserves necessary to be established
with respect to each Claim arising during the preceding full Coverage Year(s), and (b) any
adjustments (whether increase or decrease) necessary to be made in the amount of each Loss
Reserve previously established pursuant to this Section and to make supplemental reports from
time to time throughout each year as needed in accordance with prudent practice. In
determining the amount of Loss Reserves necessary to be established or adjusted as described
above, the Qualified Claims Administrator shall consider such facts and circumstances
occurring during the period covered by such report as it, in its independent judgment, deems
necessary in accordance with prudent practice. Notwithstanding the foregoing, the Qualified
Claims Administrator shall take into account Settlements of Claims in accordance with the
criteria set forth in this Section.
The Authority shall adjust Loss Reserves in the Program Operations Fund
annually, and additionally from time to time throughout each year as needed in accordance with
prudent practice. In the event that any such adjustment to Loss Reserves results in the
Unencumbered Reserves being reduced to zero, the Authority shall provide prompt written
notice of such fact to the Member Entities and the Authority shall have the discretion to impose,
and the Member Entities shall be obligated to pay, any Special Assessment which the Board of
Directors may determine is necessary in order to fund the Unencumbered Reserves at a
prudent level with the advice of a qualified actuary or other person knowledgeable about public
entity liability programs.
3.6. Other Insurance, Excess Insurance or Reinsurance. The Authority may provide
Coverage, or a portion of Coverage, to the Member Entities, by purchase of liability insurance,
excess insurance or reinsurance from a commercial insurer, excess insurer or reinsurer upon
the approval of the Board of Directors of the Authority; by purchase of liability insurance, excess
insurance or reinsurance from a group or captive insurance program or pool; or by participation
in a group or captive insurance program or pool for the purposes of acquiring liability insurance,
MMIA Liability Program Agreement, July 1, 2009 Page 8
excess insurance or reinsurance. The Authority may use Unencumbered Reserves to purchase
or make payments to acquire such insurance, excess insurance or reinsurance, or participate in
such pool or program; provided, however, that the Authority may use Loss Reserves to
purchase or otherwise acquire such insurance, excess insurance or reinsurance if the policy of
commercial insurance, excess insurance or reinsurance to be purchased or otherwise acquired
covers the claim for which such Loss Reserves were established. In the event of a dispute
between the Authority and any Member Entity and any insurer, excess insurer or reinsurer as to
payment of a Settlement or Judgment, the failure by either to pay such Settlement or Judgment
shall not result in a default by the Authority under the terms of this Agreement. .
In a Coverage Year for which the Authority has purchased or otherwise acquired
insurance, excess insurance or reinsurance on behalf of a Member Entity, each such Member
Entity shall be obligated to pay a proportion of the costs of such insurance, excess insurance or
reinsurance, and Risk Assessment Adjustments.
SECTION 4: TERM OF AGREEMENT; ASSESSMENT
4.1. Term of Agreement; Termination of a Participant's Obligations to Pay
Assessment. The Term of this Aareement shall commence on the date of its execution and
shall, continue until the Member Entity's participation in the Program terminates as provided in
Section 6 of this Agreement.
The obligation of any Member Entity to pay Assessments under this Agreement
will terminate upon the terms and conditions set forth in Section 6 herein.
4.2. Budget and Appropriation of Assessment Payments. The Authority shall
calculate the Assessments to be paid by each Member Entity for the next succeeding Coverage
Year and provide a preliminary bill no later than April 15th of each year during the term of the
Agreement. The Authority will deliver a final bill no later than June 1 st of each year to Member
Entities. Each Member Entity covenants to take such action as may be necessary to include
Assessment payments payable hereunder in its annual budget, to levy ad valorem taxes outside
its permitted mill levy limitation, if necessary, on all property within its jurisdiction to fund such
Assessment payments and to make the necessary annual appropriations for all such
Assessment payments. The covenants on the part of the Member Entity herein contained shall
be deemed to be and shall be construed to be duties imposed by law and it shall be the duty of
each and every public official of the Member Entity to take such action and do such things as
are required by law in the performance of the official duty of such officials to enable each
Member Entity to carry out and perform the covenants and agreements in this Agreement
agreed to be carried out and performed by such Member Entity.
4.3. Obligation to Pay Assessments.
(a) No Withholding. Notwithstanding any dispute between the Authority and
a Participant, including a dispute as to the scope or nature of Coverage provided by the
Authority or the availability of amounts in the Program Operations Fund to pay Claims made
against any Participant, or for any other reason (other than the termination of the obligation to
pay Assessment pursuant to Section 4.1 hereof), the Member Entity shall appropriate funds
sufficient to pay and shall make all Assessment payments when due and shall not withhold any
Assessment payments pending the final resolution of such dispute.
MMIA Liability Program Agreement, July 1, 2009 Page 9
(b) Rate on overdue Payments. In the event a Member Entity fails to make
any of the payments required in this Section, the payment in default shall continue as an
obligation of the Member Entity until the amount in default shall have been fully paid, and in
addition to any remedies available with respect to such default, the Member Entity agrees to pay
the same with interest or penalty thereon, at a rate or rates to be established by the Authority,
from the date such amount was originally payable.
(c) Abatement. There shall be no abatement of Assessment payments.
4.4. Assessments.
(a) Assessment. The entire amount of Assessment is due on the
Assessment Payment Date.
(b) Risk Assessment.
(1) Total Risk Assessments
With respect to each Coverage Year, the Authority shall retain a
Consultant to determine and prepare a report by March 1 preceding the beginning of such
Coverage Year setting forth the total amount of Risk Assessments payable in the aggregate by
all Member Entities for such Coverage Year ("Total Risk Assessment"). Total Risk Assessment
shall be that amount which the Consultant estimates is required to be deposited into the
Program Operations Fund at a confidence level of no less than fifty percent (50%), to maintain
sufficient Loss Reserves to pay all Settlements and Judgments for all Member Entities, all
Administrative Costs incurred during the Coverage Year, costs of other insurance, excess
insurance, or reinsurance, and such other reasonable and necessary costs as may be incurred
in the operation of the Program as may be determined by the Board of Directors of the
Authority. The Total Risk Assessment may be increased by the Authority if, upon advice of the
Consultant, the Board of Directors determines that a higher confidence level should be
maintained. The Consultant shall utilize such methodology as adopted from time to time by the
Authority upon notice to the Member Entities and shall certify that such methodology was used.
The Authority shall collect from all Member Entities an amount equal to the Total Risk
Assessment determined by the Consultant to maintain the designated confidence level in the
Program. The amount collected from all Member Entities may include funds obtained from
Assessments, investment income and Unencumbered Reserves, as the Board of Directors may
in the exercise of its discretion deem appropriate with respect to each Coverage Year.
(2) Calculation of an Individual Member Entity's Risk Assessment. Based
upon the Total Risk Assessment requirement for each Coverage Year, the Board of Directors
shall set Risk Assessment rates for the individual Member Entities utilizing an appropriate
methodology consistent with commonly accepted actuarial principles. The Risk Assessment
rates shall then be applied to each Member Entity's estimated payroll by deductible category
and further adjusted by an experience rating modification which shall be determined by the
Board of Directors on the advice of an actuarial consultant utilizing commonly accepted
actuarial principles.
(3) Assessment Audits. The Authority may at its discretion audit each
member entity to determine the accuracy of the basis used for the assessment calculations. An
audit will be limited to the two Coverage Years prior to the Coverage Year during which the
audit takes place. Refunds for overpayment or billing for underpayment will be limited to the
same period.
MMIA Liability Program Agreement, July 1, 2009 Page 10
(4) Member Identified Errors. If an individual Member finds errors in the
amount of Assessments paid for prior periods, and submits documentation deemed adequate
by the Authority (e.g. an independent audit or authorized change to reports submitted to some
other government entity), a refund may be requested or additional Assessments paid in
accordance with the time limits identified above for Assessment audits.
4.5. Risk Assessment Adjustment;
(a) Risk Assessment Adjustment.
(1) For purposes of the Risk Assessment Adjustment Computation, "Incurred
Losses" for each Member Entity shall mean the amount by which Loss Reserves for all Claims
of each Member Entity are to be established or increased during each Coverage Year covered
by the annual report which is submitted by the Qualified Claims Administrator pursuant to
Section 3.5 hereof, exclusive of the most recently completed preceding full Coverage Year,
netting out any decrease in Loss Reserves for Claims of each such Member Entity during such
period.
(2) Risk Assessment Adjustment Computation. On or before March 31 of
each year, the Authority shall compute the Risk Assessment Adjustment for each Member
Entity. The Risk Assessment Adjustment, which may be an additional Assessment or a refund
of a previous Assessment, shall be the sum of Incurred Losses, loss expenses, and
administrative costs less Risk Assessments, inclusive of prior Risk Assessment Adjustments.
The methodology and limitations of additional assessment or refund shall be determined by the
Authority based on the recommendation of the Consultant.
Notwithstanding the foregoing, the Authority is authorized to compute the
Risk Assessment Adjustment more frequently than annually and/or inclusive of the most
recently completed preceding full Coverage Year when the Board of Directors with due regard
for the financial condition of the Program deems it prudent and necessary to do so.
(3) Overriding Clause. In the event Section 4.5(a) conflicts with any other
section, provision, or definition in the Liability Coverage Program Agreement, this section shall
govern and supersede the same.
(4) Prompt Notice of Risk Assessment Adjustments. The Authority shall give
each Member Entity prompt notice of the determination of Risk Assessment Adjustments.
(5) Obligation of Pay Risk Assessment Adjustments. The obligation of
Member Entities to pay Risk Assessment Adjustments with respect to Coverage Years in which
they were Member Entities determined subsequent to the date of withdrawal shall in no event
be discharged by expulsion or withdrawal from the Program.
SECTION 5: INDIVIDUAL MEMBER ACCOUNTS; ACCOUNT SETTLEMENT UPON
WITHDRAWAL OR TERMINATION
5.1. Individual Member Accounts. An Individual Member Account in the name of
each Member Entity will be established; and in the case of Member Entities who are Member
Entities in the Program as of the effective date of this Agreement, the balance in their respective
MMIA Liability Program Agreement, July 1, 2009 Page 11
Individual Member Accounts will be continued. Such Individual Member Account will be used to
identify the current financial condition of each Member Entity's participation in the Program. The
Individual Member Accounts will represent each Member Entity's share of Assessments less
Claims, Judgments, Administrative Costs and other expenses which have been made against
the Program.
The Individual Member Accounts are for the purpose of determining each
Member Entity's share of funds which:
(a) may be credited against future Assessments or payable as dividends;
(b) may be payable to each Member Entity who withdraws from the Program;
(c) may be payable to each Member Entity on termination of the Program.
5.2. Annual Computation. Within 180 days of the end of each Coverage Year, the
Individual Member Account of each Member Entity shall be computed by computing for the
Program as a whole and by allocating to each Member Entity its proportionate share of the
Assessments collected plus the investment income and other revenues of the Program at the
end of the Coverage Year less the Claims (including claims paid, claims incurred, and claims
incurred -but -not -reported), Judgments, loss development, Administrative Costs, and other
operating costs for such Coverage Year.
Provided, however, that no Member Entity shall be entitled to receive any money
or credit on account of having a positive balance in its Individual Member Account unless the
Unencumbered Reserves of the Program Operations Fund has a adequate fund balance as
determined by the Board in consultation with the program actuary, and in such event the
individual Member Entity shall be entitled to a proportionate share of the assets in the
Unencumbered Reserves in satisfaction of its Individual Member Account as provided in this
Agreement.
5.3. Termination of Program. Upon termination of all obligations to pay Assessments
and termination of this Agreement, the Authority will distribute (i) all Risk Assessment
Adjustment refunds to the Member Entities, and (ii) all Unencumbered Reserves held by it to the
then -participating Member Entities according to the balance in each Member Entity's Individual
Member Account.
5.4. Settlement of Individual Member Account upon Withdrawal of Member Entity. In
the event a Member Entity withdraws from the Program in good standing as provided in Section
6.4, the withdrawing Member Entity's Individual Member Account will be calculated as of that
date and 10% of the amount due the withdrawing Member Entity based upon the status of its
Individual Member Account and subject to the provisions contained in Sections 5.1 and 5.2 will
be paid to the Member Entity at that time. At the end of each of the next three years, the
Individual Member's Account will be recomputed based upon changes in incurred losses and
investment income during the year and the amount then due and payable the withdrawing
Member Entity shall be determined as provided in Section 5.2 (the Annual Recomputed
Amount). At the end of the first year, twenty-five percent (25%) of the Annual Recomputed
Amount due and payable based upon the Individual Member's Account will be paid to the
Member Entity plus interest on that amount for one year and computed at the then rate of one-
year U.S. Treasury Notes. At the end of the second year, the Member Entity shall be paid fifty
percent (50%) of the Annual Recomputed Amount due and payable based upon the Individual
Member's Account plus interest on that amount for two years and computed for each of those
MMIA Liability Program Agreement, July 1, 2009 Page 12
two years at the rate of one-year U.S. Treasury Notes at the end of each such year. At the end
of the third year, the Member Entity shall be paid fifteen percent (15%) of the Annual
Recomputed Amount due and payable based upon the Individual Member's Account plus
interest on that balance for three years computed for each of those three years at the rate of
one-year U.S. Treasury Notes at the end of such year. During the three-year period, the right of
a withdrawing Member Entity to receive a settlement of its Individual Member's Account is
subject to the availability of funds in the Unencumbered Reserves as provided in Section 5.2.
Provided, however, that this schedule for disbursements is subject to the limitation imposed by
Section 6.4(d) of this Agreement.
5.5. Settlement of Individual Member Account upon Termination. In connection with
expulsion or suspension of a Member Entity pursuant to Section 6.5 herein, the Authority shall
determine the Individual Member Account of such Member Entity. The amount of the Individual
Member Account otherwise due to the Member Entity being expelled or suspended shall be
applied to the obligations due from such Member Entity under the terms of this Agreement. Any
remaining balance in the terminated Member Entity's Individual Member Account ("the Excess
Individual Member Account Balance") shall be held by the Authority and any interest thereon in
a segregated account for the benefit of such Member Entity. The Authority will transfer to such
Member Entity its Excess Individual Member Account Balance, if any, on the earliest practicable
date when the Member Entity is no longer subject to any Assessments for any obligations under
the terms of this Agreement, which will be the date when all Claims, including claims incurred
during any Coverage Period prior to expulsion or suspension of such Member Entity, and
Judgments have been finally determined and/or paid, and then pursuant to the schedule of
payments set forth in Section 5.4 herein applicable to a Member Entity who withdraws in good
standing, subject to the availability of funds in the Unencumbered Reserves as provided in
Sections 5.2 and 5.4 and subject further to the limitation as provided in Section 6.4(d).
SECTION 6: ADMISSION TO, WITHDRAWAL FROM AND EXPULSION FROM THE
POOLED COVERAGE PROGRAM
6.1. Conditions for Providing Coverage to a New Member Entity.
Applications for memberships in the Program shall be submitted on an approved
form to the Chief Executive Officer. The Board of Directors will consider and act upon each
application. Concurrence by a majority of the Board is required in order for an applicant to be
admitted as a Member. The Authority may provide Coverage to a new Member Entity in the
Program, subject to the following conditions:
(a) such new Member Entity shall be a member of the Authority.
(b) at least 30 days prior to the commencement of Coverage under the
Program, such new Member Entity shall be signatory to the Interlocal Agreement and this
Program Agreement;
(c) at least 30 days prior to the commencement of Coverage under the
Program, such new Member Entity shall have submitted a completed application for admission
to the Program as may be required by the Board of Directors.
The minimum time requirements for execution and submission of
documents as provided in subparagraphs (b) and (c) hereinabove may be waived by the Board
MMIA Liability Program Agreement, July 1, 2009 Page 13
of Directors at their discretion.
Coverage of such new Member Entity shall be effective the day
designated by the Authority succeeding the approval of the new Participant's application by the
Authority and the execution of the documents as provided herein.
6.2. Requirements for Participation in the Program.
Each Member Entity who participates in the Program shall execute this
Agreement. Each Member Entity hereby acknowledges and agrees that, commencing with the
effective date of its participation in the Program, the Member Entity shall be obligated to pay
Assessments as computed pursuant to this Agreement.
6.3. Capital Assessment of New Member Entity to Program Operations Fund.
(a) If the Program Operations Fund is not adequately funded, the new
Member Entity may be assessed a non-refundable amount to be deposited into the Program
Operations Fund as determined by the Authority ("Capital Assessment"). Such new Member
Entity shall pay all components of the Risk Assessment in addition to this Capital Assessment.
(b) If the Program Operations Fund is adequately funded as determined by a
Consultant, no initial capital assessment will be required of the Member Entity.
6.4. Conditions to Permitting Withdrawal of a Member Entity from Coverage. The
Authority shall permit a Member Entity to withdraw from Coverage under this Agreement,
provided that the following are satisfied:
(a) such Member Entity shall not be in default of any of its obligations to pay
assessments hereunder;
(b) at least 60 days preceding the effective date of such withdrawal, such
Member Entity shall have provided written notice to the Authority of its intent to withdraw;
(c) such Member Entity shall have paid or there shall have been applied on
its behalf certain moneys as described in Section 5.2 hereof the full amount of the Termination
Assessment pursuant to Section 9 of this Agreement.
(d) Provided, however, if the Authority shall have received a certificate from a
Consultant that such withdrawal will materially reduce the actuarial soundness of the Program,
the Authority may, in its sole discretion and upon the advice of the Consultant, in order to
minimize the financial, actuarial and economic impacts on the Program, extend the terms of the
repayment of amounts due the withdrawing Member Entity of the Member Entity's Individual
Member Account as otherwise provided in Sections 5.2 and 5.4 of this Agreement.
(e) In no event shall withdrawal from Coverage release a Member Entity from
its obligation to pay damages resulting from default under the terms of this Agreement which is
not remedied by payment of Termination Assessment or from its obligation to pay Assessments
determined subsequent to the date of the withdrawal. The Authority shall continue to pay
Settlements and Judgments of covered Claims relating to the withdrawn Member Entity which
arose prior to withdrawal as provided herein, unless the Member Entity defaults in the payment
of its continuing obligations described in the preceding sentence. Notice to withdraw shall be
revocable by the Member Entity only with the consent of the Authority.
MMIA Liability Program Agreement, July 1, 2009 Page 14
6.5. Conditions of Membership Review, Suspension and Termination Procedure.
(a) The Authority may suspend or expel a Member Entity from the Program
(i) if the Member Entity is in default under the terms of this Agreement or (ii) when, in the
determination of the Chief Executive Officer, a Member Entity has engaged in conduct, other
than a default under this Agreement that warrants expulsion from membership in the Program.
Suspension, termination or expulsion is subject to the conditions provided in Section 6.6 herein.
(b) The following shall be "events of default" under this Agreement and the
terms "events of default' and "default" shall have the same meaning whenever they are used in
this Agreement with respect to a Member Entity:
(1) failure by such Member Entity to observe and perform any covenant,
condition or agreement on its part to be observed or performed herein or otherwise with respect
hereto, for a period of 30 days after written notice specifying such failure and requesting that it
be remedied has been given to such Member Entity by the Authority, provided, however, if the
failure stated in the notice cannot be corrected within the applicable period, the Authority, as the
case may be, shall not unreasonably withhold their consent to an extension of such time if
corrective action is instituted by the Member Entity within the applicable period and diligently
ni irei iori i intil thn rlafni ilt ie rrnrrnr- arl• or
(2) the filing by such Member Entity of a case in bankruptcy, or the subject of
any right or interest of such Member Entity under this Agreement to any execution, garnishment
or attachment, or, adjudication of such Member Entity as a bankrupt, or assignment by such
Member Entity for the benefit of creditors, or the entry by such Member Entity into an agreement
of composition with creditors, or the approval by a court of competent jurisdiction of a petition
applicable to the Member Entity in any proceedings instituted under the provisions of the federal
bankruptcy code, as amended, or under any similar act which may hereafter be enacted.
(c) When a Member Entity has been determined by the Authority to be in
default under the terms of the Agreement, the Member Entity shall be given written notice of
such default and shall be required to cure such default within ten (10) calendar days of receipt of
such notice. If such default is not cured within the time prescribed herein, said Member Entity
will be suspended from the Program and Coverage of Claims under the Program shall be
terminated during the period of suspension, which shall be effective, without the need for a
meeting of the Board of the Authority, at 12:01 a.m. on the 30th day after notice of termination
has been received by the Member Entity. Such period of suspension shall continue until the
conditions of termination or expulsion stated in Section 6.6 of this Agreement have been met, at
which time the defaulting Member Entity's participation in the Program shall be immediately
terminated without a meeting.
(d) In the event the Chief Executive Officer has determined that the Member
Entity has engaged in conduct that warrants expulsion other than a default under this
Agreement, the Chief Executive Officer shall file a written report with the Board of Directors.
Said report shall contain a summary of the facts and the recommendations regarding continued
membership status. A copy of the report shall be served by mail to the Member Entity along
with a Notice of Meeting of the Board of Directors. Said Notice of Meeting shall include the
place, date and time of the meeting. At its discretion, the Board of Directors may submit written
questions to the Member Entity, written answers to which must be mailed to the Chief Executive
Officer no later than seven (7) calendar days prior to the date of the meeting. A Member Entity
objecting to the report and recommendations of the Chief Executive Officer shall submit a
MMIA Liability Program Agreement, July 1, 2009 Page 15
written statement to the Board of Directors setting out in detail the basis for the objection and
any other information the Member Entity desires to submit. Said statement must be mailed to
the Chief Executive Officer no later than seven (7) calendar days prior to the meeting. The
Board of Directors shall meet at the time and place designated in the Notice of Meeting. The
Member Entity shall be entitled to be represented at the meeting and present an oral statement
and other information. Following the meeting, the Board of Directors shall affirm, modify, or
reject the recommendation of the Chief Executive Officer. The Board of Directors shall have the
authority: (i) to place a Member Entity on probation, the terms and duration of which it shall
determine; (ii) to suspend a Member Entity from Coverage; or (iii) to expel a Member Entity from
the Program. A copy of the Board of Directors' decision shall be served by mail on the Member
Entity. In the event that the Board of Directors votes to suspend or terminate membership, such
suspension or termination shall not take place for at least thirty (30) days after the Member
Entity has received notice of the suspension or termination. The duration of the notice period
shall be determined by the Board.
In no event shall involuntary termination or expulsion release a Member Entity of its
obligation to pay damages resulting from default under the terms of this Agreement which is not
remedied by payment of the Termination Assessment, or from its obligation to pay Risk
Assessment Adjustments.
6.6. No Remedy Exclusive. No remedy conferred herein upon or reserved to the
Authority is intended to be exclusive and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Agreement or now or hereafter existing at law or
in equity, including, but not limited to, the right by mandamus or other suit or proceeding at law
or in equity to enforce his rights against the Member Entity and to compel the Member Entity to
perform and carry out its duties under this Agreement. No delay or omission to exercise any
right or power accruing upon any default shall impair any such right or power or shall be
construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the Authority to exercise any
remedy reserved to it in this Section it shall not be necessary to give any notice, other than such
notice as may be required in this Section or by law.
6.7. Agreement to Pay Attorneys' Fees and Expenses. In the event either party to
this Agreement should default under any of the provisions hereof and the nondefaulting party
should employ attorneys or incur other expenses for the collection of moneys or the
enforcement of performance or observance of any obligation or agreement on the part of the
defaulting party contained herein, the defaulting party agrees that it will on demand pay to the
nondefaulting party the reasonable fees of such attorneys and such other expenses so incurred
by the nondefaulting party awarded to the nondefaulting party by a court of competent
jurisdiction.
6.8. No Additional Waiver Implied by One Waiver. In the event any covenant
contained in this Agreement should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other breach hereunder.
SECTION 7: INDEMNIFICATION AND RELEASE; DISCLAIMER
7.1. Release and Indemnification Covenants. Each Member Entity shall and hereby
agree to indemnify and save the Authority and all other Member Entities harmless from and
MMIA Liability Program Agreement, July 1, 2009 Page 16
against all claims, losses and damages, including legal fees and expenses, arising out of (i) its
breach or default in the performance of any of its obligations under this Agreement or (ii) its act
or negligence or that of any of its agents, contractors, servants, employees or licensees with
respect to the Coverage. No indemnification is made under this Section or elsewhere in this
Agreement for claims, losses or damages, including legal fees and expenses arising out of the
willful misconduct, negligence, or breach of duty under this Agreement by the Authority, its
officers, agents, employees, successors or assigns.
7.2. Disclaimer. THE AUTHORITY MAKES NO WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE ADEQUACY OF THE
COVERAGE FOR THE NEEDS OF THE MEMBER ENTITIES.
SECTION 8: ASSIGNMENT AND AMENDMENT
8.1. No Assignment by the Member Entities. This Agreement may not be assigned
by any Member Entity.
8.2. Amendment. This Agreement may be amended by a written instrument duly
aul-loIILGu and execute U,y LI IG /-% Ll IVI ILy QI IV C1 II10JUI ILy VI UIG IVIGIIIUGI CI ILI LIGJ. IL IS GJLI.JI GJJIy
agreed and understood that approval of any amendment by a majority of the Member Entities
who are signatories to this Agreement at the time of such amendment shall operate to bind each
Member Entity to such amendment. All costs and expenses incurred in connection with any
amendment to this Agreement shall be borne pro rata by the Member Entities.
SECTION 9: TERMINATION ASSESSMENT
9.1. Termination Assessment.
A Member Entity may withdraw from Coverage pursuant to Section 6.4 hereof or
be expelled from Coverage pursuant to Section 6.5 hereof when provision has been made for
payment of the Termination Assessment as herein provided. The Termination Assessment for a
Member Entity shall be equal to the difference between the sum of the total amount of Risk
Assessment Adjustments that would be assessed against such Member Entity in all subsequent
Coverage Years (with respect to Coverage Periods prior to such withdrawal or expulsion) if such
Member Entity were to continue to participate in the Program and its Allocable Share of the
Unencumbered Reserves of the Program Operations Fund as it would be restored as a result of
the assessment of such Risk Assessment Adjustments.
9.2. Continuing Assessment Obligations. A Member Entity shall remain liable in each
Coverage period to pay Risk Assessment Adjustments.
SECTION 10: MISCELLANEOUS
10.1. Notices. All notices or other communications hereunder shall be sufficiently
given and shall be deemed to have been received five business days after deposit in the United
States mail in certified form, postage prepaid.
MMIA Liability Program Agreement, July 1, 2009 Page 17
If to the Member Entity The City or Town Clerk
At the address of the City or Town
as maintained in the official records of the Authority
If to the Authority: Montana Municipal Interlocal Authority
PO Box 6669
Helena, MT 59604-6669
The Authority and the Member Entities, by notice given hereunder, may
designate different addresses to which subsequent notices, bonds or other communications will
be sent.
10.2. Binding Effect. This Agreement shall inure to the benefit of and shall be binding
upon the Authority and the Member Entities and their respective successors and assigns.
10.3. Severability. In the event any provision of this Agreement shall be held invalid or
unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
10.4. Further Assurances and Corrective Instruments. The Authority and the Member
Entities agree that they will, from time to time, execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, such supplements hereto and such further instruments
as may reasonably be required for correcting any inadequate or incorrect description of the
Coverage hereby provided or intended so to be or for carrying out the expressed intention of
this Agreement.
10.5. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
10.6. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State.
10.7 Effect of Revised Agreement. This Agreement amends and supersedes each
prior Liability Program Agreement, and this Agreement shall effect a continuation of the
Program for all purposes with respect to the continuity of Coverage, expenses, accounts,
contracts, and other agreements related to the operation of the Program.
MMIA Liability Program Agreement, July 1, 2009 Page 18
MONTANA MUNICIPAL INTERLOCAL AUTHORITY
AMENDED AND RESTATED
LIABILITY COVERAGE
PROGRAM AGREEMENT
Dated as of J U LY 11 2009
Signature Page
IN WITNESS WHEREOF, THE Authority has caused this AMENDED AND RESTATED
LIABILITY COVERAGE PROGRAM AGREEMENT to be executed in its name by its duly
authorized officers;
MONTANA MUNICIPAL INTERLOCAL AUTHORITY,
as Authority
By
Chief Executive Officer
Date signed
and the Member Entitiy has caused this Agreement to be executed in its name by their duly
authorized officers:
City of
As Member Entity
Address
By
Its
Date Signed
ATTEST:
City Clerk
MMIA Liability Program Agreement, July 1, 2009 Page 19
RESOLUTION NO.5359
A RESOLUTION APPROVING AND ADOPTING THE MONTANA MUNICIPAL
INTERLOCALAMENDED AND RESTATED PROPERTY PROGRAM
WHEREAS, the City of Kalispell 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, 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 First Amended Property Program Agreement, the Member
Entity signatory hereto has heretofore determined and does hereby confirm that
the Assessments and other charges required by the Property Program have been
and are just and reasonable and advantageous to the public benefit of the citizens
of such Member Entity; and,
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 Amended and
Restated Property Program 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