06. Resolution 4763 - MMIA Workers' Compensation Risk Retention Program AgreementREPORT TO:
FROM:
SUBJECT:
MEETING DATE:
THE CITY OF KALISPELL, MONTANA
Mayor Kennedy and City Council Members
Amy Robertson, Finance Director
Chris Kukulski, City Manager
Montana Municipal Insurance Authority — Program Amendment for
Liability and Worker's Compensation Insurance.
December 16, 2002
BACKGROUND: The Montana Municipal Insurance Authority is requesting that the
City approve two separate resolutions authorizing the City to execute
an Amended Revised and Restated Program Agreement for the
Liability Insurance program and the Worker's Compensation
program. This action will permit the MMIA to participate in an
interstate group reinsurance and excess insurance program. The
Board of Directors of the MMIA believes that participation in GEM,
the Government Entities Mutual, Inc., will result in cost savings to
the MMIA and its members compared to the cost of purchasing
reinsurance and excess insurance from the commercial market.
MMIA may not participate in GEM unless the Program Agreements
are amended to specifically authorize such participation.
RECOMMENDATION: Adoption of Resolution 4763 and 4764 authorizing amending our
MMIA insurance policies.
FISCAL EFFECTS: No known fiscal effects but may result in better premiums.
ALTERNATIVES: None
1C�
Amy . Robertson
Finance Director
Report compiled: December 11, 2002
Chris A. Kukulski
City Manager
RESOLUTION NO. 4763
A RESOLUTION AUTHORIZING THE ADOPTION AND EXECUTION OF THE
SECOND AMENDED REVISED AND RESTATED WORKERS' COMPENSATION
RISK RETENTION PROGRAM AGREEMENT ENTERED INTO BETWEEN THE
MONTANA MUNICIPAL INSURANCE AUTHORITY AND THE CITY OF
KALISPELL DATED AS OF DECEMBER 1, 2002; AND AUTHORIZING THAT THE
ADOPTION AND EXECUTION OF ANY AMENDMENT THERETO MAY BE MADE
BY MOTION.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL (THE
PARTICIPANT) AS FOLLOWS:
Section I. Authorization and Recitals.
1.01 The City of Kalispell is a Participant in the Workers' Compensation Risk
Retention Program of the Montana Municipal Insurance Authority.
1.02 The Participant has previously adopted and executed the Original Revised
and Restated Workers' Compensation Risk Retention Program Agreement
dated as of October 1, 1990, between the Montana Municipal Insurance
Authority and the Participant.
1.03 The Participant has also previously adopted and executed the First
Amendment to the First Revised and Restated Workers' Compensation
Risk Retention Program Agreement dated as of February 1, 1994 between
the Montana Municipal Insurance Authority and the Participant.
1.04 The Participant is authorized by Section 2-9-211, Montana Code
Annotated, and Title 7, Chapter 11, Part 1, Montana Code Annotated (the
Interlocal Cooperation Act) to enter into agreements for the purpose of
obtaining liability insurance in cooperation with other local governmental
entities; and is thereby authorized to enter into such agreements as may be
necessary to effect the purposes of those statutes.
1.05 The Montana Municipal Insurance Authority and the Participant, under
Section 8.3 of the Original Revised and Restated Agreement, and the First
Amendment to the First Revised and Restated Workers' Compensation
Risk Retention Program Agreement dated as of February 1, 1994, reserved
the right to amend such Agreement(s).
Section II. Findings.
It is hereby found, determined and declared that:
(a) The Workers' Compensation Risk Retention Program of the Montana
Municipal Insurance Authority provides an immediate and long-term
solution to the Participant's inability to obtain primary or excess workers'
compensation insurance or reinsurance at reasonable rates;
(b) It is in the best interest of the Participant to continue its participation in the
Workers' Compensation Risk Retention Program and to this end the terms
and conditions set forth in the Second Amended Revised and Restated
Workers' Compensation Risk Retention Program Agreement dated as of
December 1, 2002 are necessary, desirable and proper to achieve the goals
of the Workers' Compensation Risk Retention Program, and the
representations, covenants and recitals made therein by the Participant are
true, valid and correct;
(c) It is in the best interest of the Participant and the Montana Municipal
Insurance Authority to authorize the use of funds by the Authority to
purchase, otherwise acquire, or participate in group or captive liability
insurance, excess insurance or reinsurance programs.
Section III. Authorization and Approval of the Second Amended Revised and
Restated Workers' Compensation Risk Retention Program
Agreement dated December 1, 2002.
The Participant hereby authorizes its continued participation in the
Workers' Compensation Risk Retention Program and the execution of the
Second Amended Revised and Restated Workers' Compensation Risk
Retention Program Agreement dated as of December 1, 2002.
Section IV. Authorization to Approve Future Amendments to the Program
Agreement by Motion.
The Participant is hereby authorized to approve the adoption of any
amendments to and execution of any amendments to the First Amendment
to the First Revised and Restated Workers' Compensation Risk Retention
Program Agreement dated as of February 1, 1994 or any successor
Program Agreement thereto by motion duly made, seconded and
approved.
Section V. Effective Date.
This Resolution shall become effective immediately upon its passage and
approval, unless such Resolution occurs after December 1, 2002. If this
Resolution occurs after December 1, 2002, this Resolution shall be
deemed retroactively effective on December 1, 2002.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 16TH DAY OF DECEMBER, 2002.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk