01. Resolution 4931 - MMIA Health Insurance ProgramCity of Kalispell
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REPORT TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
Frank Garner, Interim City Manager
SUBJECT: MMIA Health Insurance Program
MEETING DATE: September 7, 2004
BACKGROUND: As a result of increasing health insurance costs cities
belonging to the Montana Municipal Insurance Authority have proposed a statewide
health insurance pool for cities and towns. The program would require the city to enter
into the pool for five years. The city would receive a 2.7% reduction in the member rate
from its current premiums for the first year. Our current insurance is based on a fully
insured model while the new pool creates a self -insured group. MMIA hopes to offer
multiple coverage plans in the future to provide flexibility to members. An affirmative
vote on the resolution would provide the authority to enter into the five year plan.
RECOMMENDATIONS: The council adopt Resolution 4931.
ALTERNATIVES: At Council's discretion.
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Amy Robertson Frank Garner
Finance Director Interim City Manager
RESOLUTION NO.4931
A RESOLUTION AUTHORIZING PARTICIPATION IN THE MONTANA
MUNICIPAL INSURANCE AUTHORITY EMPLOYEE BENEFITS PROGRAM
AND AUTHORIZING THE EXECUTION OF THE MEMORANDUM OF INTENT
TO PARTICIPATE IN SUCH PROGRAM AND SUCH OTHER DOCUMENTS AS
MAY BE NECESSARY TO EFFECTUATE PARTICIPATION IN SUCH
EMPLOYEE BENEFITS PROGRAM.
WHEREAS, the MONTANA MUNICIPAL INSURANCE AUTHORITY (MMIA) has
undertaken steps to create and organize a group self-insurance
hospitalization, medical, health, including long-term disability, accident or
group life insurance Employee Benefits Program ("Employee Benefits
Program") for the benefit of the Members of the MMIA and their respective
public officials, employees, retirees and their families and dependents who
are eligible for participation in such Employee Benefits Program; and,
WHEREAS, the City of Kalispell, which is a member of the MMIA, has previously
expressed an interest in participating in such Employee Benefits Program;
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, employees, retirees 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, the City of Kalispell has determined that it is in the best interest of the City,
its employees, retirees and their dependents to participate in the Employee
Benefits Program established by the MMIA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell does hereby authorize its participation in
the Employee Benefits Program for a period of sixty (60)
consecutive months from the date of implementation of the
Employee Benefits Program as provided in the Memorandum of
Intent to Participate in the MMIA Employee Benefits Program, a
true copy of which Memorandum is attached as Exhibit I to this
Resolution;
SECTION II. That the Interim City Manager is hereby authorized to execute the
Memorandum of Intent to Participate in the MMIA Employee
Benefits Program;
SECTION III. That the Interim City Manager is hereby authorized to execute such
other agreements as may be necessary to effectuate the intent of the
City of Kalispell to participate in the Employee Benefits Program;
and,
SECTION IV. That the Finance Director is hereby authorized to pay the first three
(3) months of premiums due under the Employee Benefits Program
in advance of the commencement of the Employee Benefits
Program.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE
MAYOR OF THE CITY OF KALISPELL, THIS 7TH DAY OF SEPTEMBER, 2004.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk