HomeMy WebLinkAboutApprove Resolution No. 4158 Approving and Adopting the Montana Municipal Interlocal Authority Revised and Restated Interlocal Agreement
Commission Memorandum
REPORT TO: Honorable Mayor and Commission Members
FROM: Anna Rosenberry, Finance Director
Greg Sullivan, City Attorney
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4158 Approving and Adopting the Montana Municipal
Interlocal Authority Revised and Restated Interlocal Agreement
MEETING DATE: May 11, 2009
RECOMMENDATION: Approve Resolution No. 4158 Approving and Adopting the
Montana Municipal Interlocal Authority Revised and Restated Interlocal Agreement.
BACKGROUND: The Montana Municipal Insurance Authority, of which the City is a
member, is seeking to make changes to their interlocal agreement for all members, effective July
1, 2009. Attached is their correspondence, dated March 24 and March 31, 2009. In his Memo
on March 31st, Alan Hulse, CEO of MMIA describes the changes in the interlocal agreement:
“ General Changes:
As described in my cover memo to you, consistent in all of these agreements is the change in
name from the “Montana Municipal Insurance Authority” to the “Montana Municipal Interlocal
Authority.”
We have also removed all reference to “insurance” as it relates to the MMIA. Instead, we refer
to “Coverage” under the various program agreements.
108
In addition, for consistency between and among the documents, “Participant” was changed to
“Member Entity”, and “premium” was changed to “Assessment”.
Interlocal Agreement: Effective July 1, 2009
In addition to the changes noted above, the definition of a “Member Entity” was changed from
an “incorporated city or town” to a “political subdivision.” This change also flows through to
each of the program agreements. While there currently is absolutely no consideration being
given to expanding our base beyond cities and towns, we felt it was prudent to broaden this
definition to allow the MMIA some flexibility in the future to consider expansion if the Board or
the membership determines that expanding the risk pool is in the best interest of one or more of
the programs.”
FISCAL EFFECTS: None.
ALTERNATIVES: As suggested by the City Commission.
Attachments: MMIA Memo, 3/24/09
MMIA Memo, 3/31/09
Resolution No. 4158
Revised and Restated Interlocal Agreement Governing the MMIA, effective 7/1/09
109
COMMISSION RESOLUTION NO. 4158
APPROVING AND ADOPTING THE MONTANA MUNICIPAL INTERLOCAL
AUTHORITY REVISED AND RESTATED INTERLOCAL AGREEMENT
WHEREAS, the City of Bozeman (Member Entity) 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
110
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 THAT the City of Bozeman hereby
approves and adopts this Revised and Restated Interlocal Agreement.
PASSED AND ADOPTED this 11th day of May, 2009.
______________________________
KAAREN JACOBSON
Mayor
ATTEST:
______________________________
STACY ULMEN, CMC
City Clerk
111
APPROVED AS TO FORM:
______________________________
GREG SULLIVAN
City Attorney
112
113
114
115