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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