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Resolutions: 733

Resolution Number

733 

Resolution Subject

Interlocal Agreement with the Association of Washington Cities Employee Benefit Trust to jointly self-insure health benefit plans and programs

Date Adopted

9/16/2013 

Repealed By

 

Amended By

 

Resolution

RESOLUTION NO. 733

 

A RESOLUTION OF THE CITY OF UNIVERSITY PLACE, WASHINGTON, APPROVING AN INTERLOCAL AGREEMENT WITH THE ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST TO JOINTLY SELF-INSURE HEALTH BENEFIT PLANS AND PROGRAMS TO BE ADMINISTERED BY THE TRUST IN AN EFFORT TO LOWER FUTURE HEALTH BENEFIT COSTS

 

 

WHEREAS, the Association of Washington Cities Employee Benefit Trust (the “Trust”) is an entity to which contributions by cities and towns and non-city entities organized and existing under the Constitution or laws of the State of Washington and who are members of the Trust (“Participating Cities and Towns,” and “Participating Non-City Entities”) and their employees can be paid and through which the Board of Trustees of the Trust (“Trustees”) provides one or more insured health and welfare benefit plans or programs to Participating Cities and Towns’ and Non-City Entities’ employees, their dependents and other beneficiaries (“Beneficiaries”), on whose behalf the contributions were paid; and

 

            WHEREAS, the Trust qualifies as a voluntary employee beneficiary association within the meaning of Section 501(c)(9) of the Internal Revenue Code, providing for the payment of life, sick, accident or other benefits to Beneficiaries; and 

 

            WHEREAS, the Trust and Participating Cities and Towns and Non-City Entities have determined that it is in the best interest of Participating Cities and Towns and Non-City Entities to jointly self-insure certain health benefit plans and programs for Beneficiaries through a designated account within the Trust, while at the same time having the Trust continue as the entity to which other insured health and welfare benefit program contributions are paid and through which insured health and welfare benefit plans and programs are provided to Beneficiaries; and

 

            WHEREAS, it appears economically feasible and practical for the parties to do so; and

 

            WHEREAS, Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement under chapter 39.34 RCW, jointly self-insure health benefit plans and programs, and/or jointly hire risk management services for such plans or programs by any one or more of certain specified methods; and

 

            WHEREAS, the Association of Washington Cities Employee Benefit Trust Interlocal Agreement (the “Interlocal Agreement”) attached hereto creates a joint self-insured health and welfare benefit program (the “Health Care Program”) to be administered by the Trustees for the purposes of providing self-insured health benefits to Beneficiaries; and

 

WHEREAS, WAC 200-110-030 requires every local government entity participating in a joint self-insurance health and welfare benefit program to adopt such program by resolution; and

 

WHEREAS, Chapter 48.62 requires Health Care Program assets to be managed consistent with existing authority over use of municipal funds in RCW 35.39.030.  The Trust will manage Health Care Program reserves in compliance with Chapter 48.62 RCW; RCW 35.39.030, and the Health Care Program Investment Policy; and

 

WHEREAS, all premium contributions for use in the Health Care Program are deposited into a designated account within the Trust, the Health Care Program Account (the “HCP Account”), and the HCP Account represents a pool of funds that is independent of all other Trust or AWC funds; and

 

WHEREAS, the Trust intends to manage the HCP Account assets in compliance with federal and state laws and the Interlocal Agreement; and

 

WHEREAS, University Place believes it is in the best interest of the Health Care Program to allow the Trust to manage the HCP Account.

 

            NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY PLACE, WASHINGTON, AS FOLLOWS:

 

Section 1.         Interlocal Agreement Approved.  The City Council hereby approves the Interlocal Agreement between the City of University Place and Association of Washington Cities Employee Benefit Trust attached as Exhibit A.  By approving such Agreement, the City of University Place acknowledges that it shall be subject to assessments as required by the Health Care Program.

 

Section 2.         Effective Date.   This Resolution shall take effect immediately upon its adoption.

 

            ADOPTED BY THE CITY COUNCIL ON SEPTEMBER 16, 2013.

 

 

 

 

                                                                         __________________________________
Ken Grassi, Mayor

 

 

 

ATTEST:

 

 

____________________________

Emelita Genetia, City Clerk

 

APPROVED AS TO FORM:

 

 

____________________________

Steve Victor, City Attorney

Council Minutes

Regular Council Meeting Minutes-20130916-0938 

ResolutionID

Resolution:733-19020102-733 
Attachments
733-Exhibit A.pdf    
Content Type: Resolution
Created at 9/17/2013 2:59 PM  by Emelita Genetia 
Last modified at 10/8/2013 9:39 AM  by Emelita Genetia