HomeMy WebLinkAbout13-025 Authorization to Enter into Interlocal Agreement on Self Insurance Health and Welfare Benefit Program Resolution 13-025
Interlocal Agreement with AWC Employee Benefit Trust
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RESOLUTION 13-025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
INTERLOCAL AGREEMENT WITH ASSOCIATION OF WASHINGTON CITIES
EMPLOYEE BENEFIT TRUST IN ORDER TO PARTICIPATE IN A JOINT SELF-
INSURANCE HEALTH AND WELFARE BENEFIT PROGRAM
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
Resolution 13-025
Interlocal Agreement with AWC Employee Benefit Trust
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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
WHERAS, the Trust intends to manage the HCP Account assets in compliance with
federal and state laws and the Interlocal Agreement; and
WHEREAS, the City Council of the City of Port Townsend-believes it is in the best
interest of the Health Care Program to allow the Trust to manage the HCP Account;
NOW THEREFORE RESOLVED, that the Interlocal Agreement creating the Health
Care Program is hereby adopted.
RESOLVED, that by adopting such Agreement,the City of Port Townsend
acknowledges that it shall be subject to assessments as required by the Health Care Program.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 16th day of September 2013.
David ing, Mayor
Attest: Approved as to form:
Pamela Kolacy, MMC John P. Watts
City Clerk l City Attorney