9.b) Revised Joint Powers Agreement with the Southwest/West Central Service Cooperative Meeting Date: 5/18/2010
Agenda Item: � ��
City Council Agenda Report
City of Scandia
14727 209th St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve revised Joint Powers Agreement with the Southwest/West
Central Service Cooperative.
Deadline/ Timeline: N/A
Background: • The Southwest/West Central Service Cooperative operates the
health insurance pool through which the City purchases employee
health insurance.
• The updates to the agreement are shown in the attached document.
The most significant substantive change appears to be to the
timelines the city would need to observe should it decide to seek
bids for health insurance outside of the pool.
• The City Attorney has reviewed the agreement.
Recommendation: I recommend that the Council authorize the Mayor to sign the joint
powers agreement.
Attachments/ • Letter Dated April 21, 2010 from SW/WC Service Cooperative
Materials provided: with Revised Joint Powers Agreement
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(Service Cooperative JPA)
Page 1 of 1
OS/13/10
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DivisionofRiskManagement CLIFF CARMODY
SinCg 1420 East College Drive EXECUTIVE DIRECTOR
1965 Marshall,MN 56258 WEBSITE: \'�'W��-.swsc.org
Phone 507-537-2247 O�JlC(S UI MQi:SI7GII, Pipesto�te,
�' � Fax 507/537-7327 �
c'� � t�lr!lmar, IVindnnT nnd Montevideo
���e Coope��'��
Apri121, 2010 RECEtVED
�pR 2 2 201�
Anne Hurlburt
City Of Scandia CiTY OF SCANDIA
14727 209th Street North
Scandia, MN 55073
Dear Group Leader,
The Minnesota Service Cooperatives recently conducted a full review of the current Joint Powers
Agreement for Group Employee Benefits and other Financial and Risk Management Services. Revisions
of the current document were presented and approved by the CCOGA Executive Committee on March
11�', the School Insurance Pool Advisory Committee on March 23rd, and the SW/WC Service
Cooperative Board of Directors on March 24, 2010.
Enclosed is a copy of the new joint powers agreement. We ask that you please sign both copies of the
signature page and return to me. Once received, we will obtain signatures from our Board of Directors
and return an original copy back to you for your files. Also enclosed is a mark-up copy of the previous
agreement which outlines changes that were made.
At this time,we would also like you to complete the enclosed Insurance Pool Group Contact Information
Form, so we have the most current and updated information in our records. Please note the Primary
Group Contact is considered the"group leader". Please complete this form and return to Bobbie
Carmody via fax at 507/537-7327, email at bobbie.carmody(a�swsc.org, or mail to: SW/WC Service
Cooperative, 1420 East College Drive, Marshall, MN 56258.
Thank you for your assistance and please contact me with any questions, concerns, or comments.
Sincerel ,
Doug Deragisch, Director of Risk Management
SW/WC Service Cooperative
Enclosure
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JOINT POWERS AGREEMENT
FOR GROUP EMPLOYEE BENEFITS AND OTHER FINANCIAL AND RISK
MANAGEMENT SERVICE5
This Joint Powers Agreement,hereinafter referred to as""Agreement,""is made between
Participant Member .� �f fC'QY� �Gc,— and other Participant Members as are now or
may hereafter become parties to this Agreement, and the,J'er�i�e o�er�r�-i Y� —
hereinafter called the""SC.'-"'
RECITALS
�x��-�-���� *�:�-� c+�* Whereas, Minn. Stat. 471.59, Subds. 1 and �-91� authorizes two
� •
or more governmental units to exercise jointly or cooperatively powers which they possess in
common, and
�x»-�--�--� "�:�� c*�+ Whereas� Minn: Stat. 123A.21, establishes service cooperatives,
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the purpose of which; among other things, is to assist participating governmental units in
meeting certain specific needs which can most advantageously be met on a regional basis, and
Whereas, the Participant Members wish to authorize the SC Board of Directors to act as
a joint board for the purpose of exercising certain powers as set forth in this Agreement, and
Whereas,the Participant Members acknowledge that the Board of Directors of the SC is
representative of the parties to this Agreement;
NOW THEREFORE,the parties hereto agree as follows:
SECTION 1
PURPOSE,INTENT AND OBJECTIVE
1.1 Purpose. Under the provisions of Minnesota law, governmental units may enter into
contracts v' Group Employee Benefits for their employees
and to obtain Other Financial and Risk Management Services deemed necessary or beneficial for
their operation. Under the provisions of Minn. Stat. 471.59, two or more governmental units
(including, but not limited to, school districts, counties, towns, other governmental agencies and
service cooperatives) may agree to exercise jointly or cooperatively powers which they possess
in common. The purpose of this Agreement is to authorize the Board to exercise the common
powers of the participating governmental units in connection with certain matters pertaining to
the administration and funding of Group Employee Benefits and the provisions of Other
Financial and Risk Management Services, all as described herein. It is not the purpose of this
Agreement to transfer to the Board the authority to execute contracts on behalf of Participants, or
to in any manner become involved in any collective bargaining process.
1.2 Compliance with Applicable Laws. It is the parties'-' intent to comply with the
applicable statutory requirements pertaining to requests for proposals for group insurance, self-
insurance, COBR.A and its Minnesota extensions, service cooperatives, and all other applicable
federal and state statutes. Pursuant to the laws governing service cooperatives, it is also
intended that nonprofit3 non-governmental units be allowed to participate as Associate Members
in the Group Employee Benefits and Other Financial and Risk Management Services made
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available pursuant to this Agreement, although it is not intended that such nonprofit, non-
governmental units exercise any of the powers or authorities exclusively delegated to
governmental units described in Minn. Stat. 471.59 Subd. 1.
SECTION 2
DEFI1vITIONS
2�1. ��--Advisory Committee(s) means committees appointed by the Board in
accordance with Section 4.8 of this Agreement which are representative of the Participants as
deemed appropriate by the Board for the purpose of recommending policies, procedures and
actions to the Board.
� �—Agreement means this Joint Powers Agreement as the same may be amended
from time to time. This document, and all other documents in the same form executed (or
deemed executed as provided in Section 9 of this Agreement) by SC and other Participant
Members, all as amended from time to time, shall together constitute a single Agreement.
� ��-Associate Member means any nonprofit or non-governmental entity which
participates in any of the Group Employee Benefits or Other Financial and Risk Management
Services made available to Associate Members by the Board, and agrees in writing to be bound
by the terms of this Agreement other than those terms explicitly applicable only to Participant
Members (or is deemed to have so agreed as provided in Section 9 of this Agreement).
�,4 �:4—Board or Joint Powers Governing Board means the SC Board of Directors
acting as the joint board authorized to exercise certain powers of the Participant Members, as
permitted by Minn. Stat. 471.59, Subd. ��and as set forth in this Agreement.
2 5 arrier Contract means an a�reement bv and between the Board and a Provider which
-- ---- -
establishes tenns for the benefits administration or fundin� of Groun Emnlovee Benefits or
Other Financial and Risk Mana�ement Services
�,� �S---CBA means collective bargaining agreement.
� �—CBA Employee Benefits means employee welfare and retirement benefits made
available by the Board from time to time for adoption by a Participant pursuant to the terms of a
CBA, and may include, but shall not be limited to health benefits coverage, wellness and
employee assistance programs, life insurance, disability income protection, dental insurance,
flexible spending programs, retirement programs and long term care insurance. In no event shall
any Discretionary Employee Benefits be considered CBA Employee Benefits unless and until
they become part of a collective bargaining agreement between a union and a Participant.
�$ ��Discretionary Employee Benefits means employee welfare and retirement
benefits made available by the Board from time to time for adoption by a Participant, exclusive
of any CBA Employee Benefits, and may include, but shall not be limited to health benefits
coverage, wellness and employee assistance programs, life insurance, disability income
protection, dental insurance, flexible spending programs, retirement programs and long term
care insurance. Discretionary Employee Benefits may be terminated or reduced by the Board at
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any time. In the event any Discretionary Employee Benefit is terminated by the Board but
continued by one or more Participants, the provision of such Discretionary Employee Benefit
shall become the sole responsibility of such Participants.
2�._ �:-8---Group Contract shall mean an agreement for the rendering of services by and
between a Participant and a Provider of such services. In connection with the self-insurance of
employee health benefits, such an agreement may also mean a Participant'-'s agreement to
participate in a program of self-insurance.
�Q �9—:Troup Employee Benefits shall mean CBA Employee Benefits and
Discretionary Employee Benefits.
2.11 �9—Other Financial and Risk Management Services may�include, but sha11 not be
limited to, technical advice regarding borrowing programs, contracted legal services,
property/casualty safety group protection, personal property and casualty protection, student
accident, coverage, and other services as made available by Group Contract for Participants from
time to time by the Board.
�
2� .
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.�41 ��Participant means both Participant Members and Associate Members. It does
not refer to individual employees obtaining insurance or other benefit coverage pursuant to a
plan offered by a Participant which is funded or administered in whole or in part pursuant to this
Agreement.
�,1� �3—Participant Member means any governmental unit as defined in Minn. Stat.
471.59 which is accepted for participation in this Agreement by the Board, certifies that its
employee benefit plans qualify as ""governmental plans'-"' that are exempt from application of
the Employee Retirement Income Security Act of 1974, as amended (`-"'ERISA'-",, and agrees in
writing to be bound by the terms of this Agreement (or is deemed to have so agreed as provided
in Section 9 of this Agreement).
2� �4 Pool means the collective group of Participants in a given program of Group
Employee
Benefits or Other Financial and Risk Management Services, as the context sha11 require. Absent
an agreement expressly to the contrary, a separate Pool shall exist for each such program and a
separate Group Contract shall exist between the Provider and each Participant for the rendering
of services or benefits for which such Pool is formed.
2.15 �K--Program Funds means any monies,reserves, excesses or other amounts,whether
acquired through contributions, payments, discounts, dividends, refunds, credits, reserves,
savings, interest or otherwise,that are held and administered in accordance with Section 6 of this
Agreement.
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� �—Provider means the person, insurance carrier, third party administrator, or other
entity which is selected by the Board, in its discretion, to provide Participants with Group
Employee Benefits or Other Financial and Risk Management Services or, as in the case of self-
insured health benefits, to provide administrative or other services in connection with such
Benefits or Services.
2.17 SC means the Service Coonerative. a governmental _
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agency and public corporation, whose existence is authorized by Minn. Stat. 123A.21.
_ -�
998?�� 4
SECTION 3
JOINT POWERS GOVERNING BOARD
�.1 �—Board Membership. The SC Board of Directors, when exercising the joint
powers authorized by this Agreement, will also serve as the Board referred to in this Agreement.
The Board will be elected pursuant to the Bylaws of the SC. As appropriate, the Boazd may
designate one or more representatives to act on its behalf.
3,�._ �—Upon Dissolution of SC. In the event that the SC is dissolved, the Board shall
continue to exist and its members shall be elected solely from the governing bodies of the
Participant Members to this Agreement in a manner consistent with the provisions of the Joint
Powers Act, Minn. Stat. 471.59, Subd.2. Any administrative services provided by the SC prior
to its dissolution shall be provided thereafter as deternuned by the Board in its discretion.
� �—Acknowledgment by Associate Members. Associate Members acknowledge
that Minn. Stat. 471.59 does not authorize their participation in a Joint Powers Agreement, even
though Minn. Stat. 123A.21, Subd.�� authorizes nonprofit, non-governmental organizations to
participate in Group Employee Benefits, Other Financial and Risk Management Services, and
other programs made available from time to time by service cooperatives. By participating in
any such program made available by the SC, such non-governmental Associate Members agree
to be bound by the terms of this Agreement (other than those terms explicitly applicable only to
Participant Members) and that the Boazd is representative of their interests.
SECTION 4
RIGHTS AND RESPONSIBILITIES OF THE BOARD
4.1 Authorized Powers. Pursuant to Minn. Stat. 471.59, Subd. 2, in addition to any other
powers specifically delegated to the Board by this Agreement,the Board is hereby authorized to:
(a) establish, procure and administer Group Employee Benefits and Other Financial
and Risk Management Services;
(b) define and clarify requests for proposals, rights and responsibilities, length of
contract, premium or contribution rates and other costs, ternunation guidelines, the
relative liability of the parties, and the method(s) by which parties to this Agreement
shall
exercise their common powers; and
(c) receive, collect, hold, invest, expend and disburse Program Funds in
connection with the exercise of its powers under this Agreement.
4.2 Group Employee Benefits.
4.2.1 4.''.-�—�BA Employee Benefits. The Board may from time to time make
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employee welfare and retirement benefits available for adoption by Participants pursuant to a
CBA. The Boazd may arrange alternative financing arrangements respecting such benefits, and
may administer or arrange for the administration of such benefits. Any employee or collective
bargaining representative notification of altemative financing arrangements shall be the
responsibility of the Participant. The Group Contract for the provision of such benefits shall be
between the Participant and the Provider. Pursuant to Minn. Stat. 471.6161, Subd.S, the Board
has no authority nor authorization to change a policy or benefit respecting a Participant'-'s CBA _
Employee Benefits in a manner that would reduce the aggregate value of such benefits.
4.2.2 4�.�—Discretionary Employee Benefits. The Board may from time to time
make available for adoption by Participants Discretionary Employee Benefits. The Board may
arrange alternative financing arrangements respecting such benefits, and may administer or
arrange for the administration of such benefits. The Group Contract for the provision of such
benefits shall be beiween the Participant and the Provider. Notwithstanding that a Group
Contract for Discretionary Employee Benefits be between a Participant and a Provider, the
Board, upon reasonable notice to Participants, may prospectively amend, reduce or terminate
any such Discretionary Employee Benefits in its sole and absolute discretion.
4.2.3 Reserves. The Board shall from time to time determine the minimum
amount _ of
funds needed for purposes of risk management and rate stabilization. Any such funds shall be
held and used in accordance with, and subject to the limitations set forth in, Section 6.
4.2.4 Self-Insurance of Health Benefits. In accordance with Minn. Stat. 471.617,
Group Employee Benefits that are employee health benefits may be self-insured. A self-
insurance Pool made available by the Board sha11 be a pool established and operated by the
Board, or by the Board and one or more other joint powers governing boards governed by Minn.
Stat. 471.59 or service cooperatives governed by Minn. Stat. 123A.21.
4.3 Other Financial and Risk Management Services. The Board may make available
Other
Financial and Risk Management Services for electing Participants and may administer, or
arrange for the administration of such services. The Board will determine the most cost-effective
and appropriate manner in which to deliver Other Financial and R.isk Management Services and
the service fees and other costs pertaining to the same.
4. , Carrier Contracts. The Board, alone or in collaboration with
other governmental
units, whether acting alone or jointly, including other service cooperatives, may negotiate
Carrier Contracts for the benefit of the SC and each of the Participants with respect to any
Group Employee Benefit or Other Financial and Risk Management Service. Such �►��g
��;���Carrier Contracts may establish, among other things:
(a) the terms and conditions for any program,
(b) premium or contribution rates and other costs,
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� (�}--funding arrangements,
� �—administrative arrangements, including the extent to which the SC shall
provide administrative services,
� f e}--the applicable responsibilities of the Board, and
� (�}--the amount of service fees payable to the SC.
'1'he 'er is a proprietary document between the Service
Cooperative and the provider. However, at the request of any Participant, the Boazd may
provide that Participant with any information regarding the applicable A�er�g
���Carrier Contract that is reasonably necessary for the Participant to understand its
rights and obligations thereunder.
4.5 SC Service Fees. The SC� l�ll be paid a service fee in consideration for services
rendered pursuant to this Agreement and any . C��rner Contracts. The
amount and source of such
service fee shall be established from time to time by the Provider and the SC and shall be
approved by the Board. Such service fee may include,but shall not be limited to, a percentage
of
premiums collected from Participants for the payment of Group Employee Benefits, a fixed fee
ner contract ner month naid bv each Particinan ,or such other arrangements approved from time
to time by the Board. At the time a Participant elects to participate in any of the Group
Employee Benefits made available by the Board,the Participant shall,by execution of this
Agreement(or by the deemed execution of this Agreement as provided in Section 9),be deemed
to have acknowledged and agreed to the amount of such service fe� � ��* �-"'� �„ "a''�"''„"' "
++ � a �- �*� ��� ���*��� *� ;��:::�;, and the source of its payment, including any part
liL v
thereof derived from discounts,refunds, dividends,e��similar revenues. Services fees
payable with respect to Other Financial and Risk Management Services shall be established and
disclosed from time to time as determined by the Board. Participants shall be given advance
notice of any change in ^aa��a•�-~ ".service fees.
4 6 se of SC Service Fees The SC mav use service fees to nrovide nroErams and services
which are determined nursuant to Minn Stat Sec 123A 21 Subd 7 to be nrioritv needs of the
na�+��»lar re�ion and to assist in meetin� snecial needs which arise from fundamental constraints
unon individual members
4.�-4.7 Service Providers.
4.7.1 46.-=—Selection. The Participants hereby delegate to the Board the right
to select the Providers for Group Employee Benefits and Other Financial and Risk Management
Services.
4.7.2 4.�—Governmental Unit Bidding and Contracting Laws. As applicable, the
Board shall comply with all state and federal laws relating to requests for proposals, review of
proposals, length of Group Contract rules, and other laws and regulations relating to contracting
ggg�gg 7
for Group Employee Benefits and Other Financial and Risk Management Services.
4.7.3 4:�-:�--Service Provider Rate Increases. The Board will annually review
renewal information as presented by Providers, make recommendations and determine if
requests for proposals are necessary. Rate renewals for group insurance will be determined on
the basis of the aggregate change of premiums.
4$ 4:�---Premiums and/or Contract Charges. To the extent not established by the
applicable ' C or in any other manner prescribed by this
Agreement, premiums and/or contract charges shall be determined by the Board in its discretion;
provided, however, that in accordance with Section 6.5, no retroactive assessment may be rnade
without the consent of the affected Participants.
�,Q 4.$--Advisory Committee(s). The Board may, but is not required to, appoint one or
more advisory committees. The purpose of any such committee may include, without
limitation, the receipt and processing of information relating to group employee benefits, and
the future direction of such benefits as well as other programs and services. The Board shall
consider, but is not required to adopt, advisory committee recommendations and proposals.
Labor representation, when appropriate, on any advisory committee formed by the Board shall
be, ��� as is reasonably possible, representative of the bargaining representatives of
individuals covered in the relevant Pool. Notwithstanding anything to the contrary in this
Section 4.8, the SC shall create a labor-management committee to advise it on certain matters as
required by Minn. Stat. 123A.25.
41� 4�—Authority of Board. The Board, with due consideration given to
recommendations submitted by any advisory committee which may be established, shall, unless
otherwise expressly agreed, retain final authority in a11 matters relative to this Agreement and to
the Group Employee Benefits and Other Financial and Risk Management Services subject to this
Agreement; provided, however, that nothing in this Agreement shall permit the Board to enter
into a Group Contract on behalf of a Participant, and that, subject to any applicable notice rules,
nothing in this Agreement shall prevent a Participant from withdrawing from this Agreement,
any Group Employee Benefit,or any Other Financial and Risk Management Service.
411 4�A--Liability Limited. The Board, its authorized representatives, employees and
designees shall have no duty or liability to any of the Participants or Providers with respect to
the fees, premium and/or contract charges, offers, acceptances or binders of coverage,
cancellation notices, or other matters relating to a Participant'-'s subscribers, all of which shall be
the responsibility of the Participant. The Board, its authorized representatives, employees and
designees, and each Participant shall have no duty or liability due to negligence of other
Participants and Providers. When it is not exercising the joint powers authorized by this
Agreement (and3 thereforef not acting as the Board), the SC Board of Directors shall have no
duty or obligation whatsoever to act for the benefit of Participants (as Participants).
� q:�-�-Withdrawal by Board. The undertakings for the provision of Group Employee
Benefits in this Agreement may be terminated by the Board or the SC (as applicable) at any
time.
SECTION 5
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RIGHTS AND RESPONSIBILITIES OF PARTICIPANTS
51 �—Enrollment and Renewal. Participants may elect whether to participate in any
Group Employee Benefit and any Other Financial and Risk Management Service made available
by the Board. If a Participant elects to participate in a Group Employee Benefit or Other
Financial ar Risk Management Service, the Participant must execute any applicable Group
Contract, Group Contract amendment, enrollment and renewal documents directly with the
Provider.
5� 3�—Participants to Furnish Data. Each Participant agrees to furnish all reasonably
necessary employee data directly to the SC or its designee.
S� 3�—Remittance of Premiums and Contract Charges. The Participant shall remit
premiums and/or contract charges in the time and manner as from time to time determined by the
Board.
�4 3�—CBA Employee Benefits. Each Participant that participates in CBA Employee
Benefits shall be solely responsible for the collective bargaining of such benefits, and for
providing any notices regarding CBA Employee Benefits, including, without limitation, the
obligation to notify certain representatives regarding the adoption of a self-insured health benefit
plan set forth in Minn. Stat. 471.617, Subd.4.
.�_5 �—Participant Withdrawal.
.5 5.1 �-S-�Voluntary Withdrawal. At any time during a year, (but at least three (3)
months prior to renewal), a Participant may terminate its participation in this Agreement or in a
Pool upon ninety (90) days written notice to the Board and to all Providers of programs in which
it participates.
5.5.2 �—Withdrawal Relating to Participant Rate Solicitation. If a Participant
solicits proposals independently of this
a.greement within five
months nrior to the end of the master a eemen , the Board retains the right to deem that the
Participant has withdrawn from the appropriate gae��1. "Soliciting proposals" shall be defined
as requesting and/or accepting written or verbal proposals of any kind,regardless of how formal
or informal. ° .
,
,
5.5.3 ��� Withdrawal Relating to Dual Offering. If a Participant offers
Group Employee Benefits through an additional or different plan which, in the discretion of the
Board, are considered to be substantially similar to those provided by a Pool in which the
Participant participates, then the Board retains the right to deem that such Participant has
withdrawn from the Pool.
5.5.4 �T4 Withdrawal at Annual Renewal. If a material change in any
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term or condition of a Group Employee Benefit or Other Financial or Risk Management Service
in which a Participant participates is proposed to commence as of the Participant'-'s annual
renewal date, the Participant may withdraw from the applicable Pool as of the renewal date,
provided the Participant gives advance written notice of its intent to withdraw promptly (within
30 days) after receiving notice of the material change, even if such notice is given less than�9
�five (51 months in advance of the renewal date.
5.6 Effect of Participant Withdrawal. Upon a Participant'-'s withdrawal or deemed
withdrawal from this Agreement or from a Pool,the following rules shall apply:
5.6.1 �.�.' Withdrawal from this Agreement. Upon its withdrawal from this
Agreement, a Participant shall be deemed to have withdrawn from all Pools maintained under
this Agreement in which the Participant is participating at the time of such withdrawal. If a
Participant no longer participates in any Pool,the Participant shall be deemed to have withdrawn
from this Agreement, as well as from the applicable Pool(s).�
5•6•2 �.`.'' Withdrawal from a Pool. Withdrawal by a Participant from any
Pool shall not affect the Participant'-'s participation in any other Pool.
5.6.3 —��.-TProgram Funds. No Program Funds or any other amounts that
may, in any way, be attributable to a Participant'-'s participation in a Pool shall be returned to the
Participant in the event such Participant'-'s participation in a Pool ends prior to the Pool'-'s
termination.
5.6.4 ��:T—Future Participation Limited. If a Participant withdraws or is
deemed by the Board to have withdrawn from a Pool, such Participant'-'s participation in such
Pool shall be prohibited for a period of twelve (12) months from the date of such
withdrawal or deemed withdrawal. If a Participant withdraws or is deemed by the Board to have
withdrawn from this Agreement, such Participant'-'s participation in this Agreement (and any
Pool offered hereunder) shall be prohibited for a period of}�����+�� ���r '''^�� v months
from the date of such withdrawal or deemed withdrawal.
SECTION 6
PROGRAM FUNDS ADMI1vISTRATION
�1 �—Program Funds. It is understood and agreed that, in connection with the Group
Employee Benefits and Other Financial and Risk Management Services made available
pursuant to this Agreement, the Board may acquire Program Funds. The Boazd may, in its
discretion, establish and maintain separate accounts for specified portions of the Program
Funds, and may designate specific purposes, such as the payment and financing of Group
Employee Benefits or the stabilization of the cost of such benefits, for which the amounts
credited to such account shall be used, but it shall not be required to do so.
6 2 7eneral Rules Regardin�Mana�emen��nd Disnosition of Program Funds.
• 17 b
Program Funds shall be used solely for the purposes of providing Group Employee Benefits and
Other Financial and Risk Management Services, providing related services, defraying the
reasonable expenses of administering such benefits and services, and, if the Board determines
�� �o
that such use would either directly or indirectly benefit Participants (e.g., by spreading risk,
achieving economies of scale, generating revenues or enhancing the Board'-'s ability to negotiate
with Providers as a result of the Board'-'s visibility, presence in the marketplace or enhanced
expertise), establishing, providing and administering similar benefits and services offered by the
joint action of other governmental units. Program Funds shall not inure to the benefit of the
Board; this prohibition shall not, however, prohibit the payment of service fees to an SC as
provided below. Subject to the foregoing, the Board, in its sole discretion, shall determine the
management and disposition of the Program Funds. The Board may consider Advisory
Committee recommendations regarding the use of Program Funds before any determinations are
made. The following are examples of purposes for which the Board may use and apply Program
Funds.
� -{-a�-to negotiate the purchase of, administer, provide and maintain (either
directly or through the purchase of insurance, or both) Group Employee Benefits (including, but
not limited to programs related to the purpose for which the Fund was created, such as, for
example, in the case of a Health Pool, an Employee Assistance Program (EAP) and Wellness
Program) and Other Financial and Risk Management Services;
� -{�}--to pay or provide for the payment of reasonable and necessary expenses
of administering Group Employee Benefits and Other Financial and Risk Management Services
including, without limitation, all expenses which may be incurred in connection with the
establishment and administration of Pools, the employment of administrative, legal, accounting,
other expert and clerical assistance, the leasing of such premises and the purchase of lease
materials, supplies, equipment, and liability and property insurance;
�c {e�—to establish and accumulate fiznds deemed adequate by the Board to carry
out the purposes of the Pools, for example, for purposes of rate stability and risk reserve;
d� (�—to pay any federal, state or local income, employment, death or other tax
which may be properly imposed on or levied against Group Employee Benefit, Other Financial
and Risk Management Service, a Pool, or on benefits paid therefrom;
� {��to pay for any bond and to pay the premiums on any insurance purchased
by a Pool, including, but not limited to liability insurance, `-"'stop loss'-"' insurance and other
insurance intended to pay directly or indirectly the benefits established with respect to a Pool;
and
f� -{�}—to pay the SC any service fee payable to it pursuant to, or authorized
pursuant to,this Agreement.
� ��Investment of Program Funds. Program Funds shall be held and invested in a
manner that is consistent with any applicable legal requirements regarding the holding and
investment of funds by the Participant Members who are governmental units within the meaning
of Minn. Stat. 471.59.
�,4 �4—Withdrawal of Participant. In the event of the withdrawal of a Participant prior
to the termination of this Agreement or of a Pool, Program Funds attributable to contributions of
such Participant shall not be returned to such Participant.
999�91 11
� g�r---Termination of Pool. In the event of termination of a Pool, any portion of the
Program Funds that has been designated for use solely in connection with the terminating Pool,
and any other portion allocated to the terminating Pool by the Board in its sole discretion, sha11
be distributed to the Pool Participants in a manner to be determined by the Board, which may
include the following: �
� (ftj--payment of benefits to or on behalf of enrolled employees with respect to
claims arising prior to such termination;
� -�}---provision of similar benefits for such employees;
� -{e3--payment of reasonable and necessary expenses incurred in such
termination;
�d -(�—payment of taxes; and
�e f e}---�ash payments to Participant Members according to a formula established
by the Board.
Upon such termination, the Board shall continue to serve for such period of time and to the
extent necessary to carry out the directions of the preceding sentence. The Participants who
receive such distributions shall be solely responsible for determining whether, and to what
extent, any amounts they receive will be distributed to individuals who were covered by benefit
programs provided by the terminating Pool.
6.6 Funding of Risk. Premiums may be adjusted, but no retroactive assessment shall be
made without consent and agreement by the affected Participants. Subject to their obligation to
provide accurate information regarding the individuals who will receive benefits from a Pool, no
Participant or its employees shall bear any financial risk other than the agreed upon premium.
SECTION 7
LENGTH OF AGREEMENT AND TERMINATION
Pursuant to Minn. Stat. 471.59, Subd. 4, but subject to the provisions herein relating to
Participant withdrawal,this Agreement shall be ongoing.
SECTION 8
LIABILITY OF PARTIES
Any Participant to this Agreement holds the Board and its employees and�i�designees, and the
SC and its board, employees and designees, harmless from any and all causes of action arising at
law or in equity unless such action shall arise from its or their gross negligence and is permitted,
ggg?_gg 12
after application of all doctrines and statues respecting immunity, by applicable law. The parties
agree to waive any rights to litigation from any dispute arising out of this Agreement unless such
action is the result of intentional wrongdoing. All benefits hereunder are the sole responsibility
of the Provider(s) and the Participants, and shall not be the responsibility of the Board or the SC.
SECTION 9
AGREEMENT BY PARTICIPATION
Any governmental unit, and any nonprofit or non-governmental entity, which participates in any
of the Group Employee Benefits or Other Financial and Risk Management Services and remits
premium and/or contract charges in accordance with this Agreement, shall be deemed to have
approved this Agreement and, in the case of an eligible governmental unit, to have executed this
Agreement by its duly authorized officers, and shall be bound by the terms and conditions of this
Agreement to the same extent as if such formal approval had been obtained and such execution
had occurred.
SF. TION 10
SOi.ICITATION OF BIDS
Notwith tandine anvthin� in the Joint Powers A�reement to the contrarv. the followin�
amendments and additions consistent with chan�es made bv the Minnesota State Legislature in
2006, shall become nart of the Joint Powers A�reement
1 All members of Service Coonerative Health Insurance Pools mav solicit bids and other
information from com�� sources of health covera�e at anv time other than within the
five months nrior to the end of the Caxrier Contract
2 Should a member of the Health Insurance Pool solicit bids �ursuant to #1 above. the
Service Coonerative will not imnose a fine or other nenaltv a�ainst the member for
solicitin� a bid or other information durin� the allowed neriod. Should a member leave
the Service Coonerative Health Insurance Pool and obtain health insurance covera�e
elsewhere. the Service Coo�erative mav nrohibit member from narticinatin� in Service
oouerative covera�e for a neriod of un to one vear.
3. The Service Coonerative shall nrovide each member with that entitv's monthlv claims
data notwithstandin�the�rovisions of Minn. Stat. 13.203.
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