HomeMy WebLinkAboutR-2350 - Authorizing the execution and entry into an Interlocal Agreement creating the Association of Washington cities employee benefit Trust Interlocal agreeCITY OF MARYSVILLE
Marysville, Washington
RESOLUTION NO. ).3SD
A RESOLUTION OF THE CITY OF MARYSVILLE AUTHORIZING THE EXECUTION
AND ENTRY INTO AN INTERLOCAL AGREEMENT CREATING THE ASSOCIATION OF
WASHINGTON CITIES EMPLOYEE BENEFIT TRUST INTERLOCAL AGREEMENT AND
ACKNOWLEDGING THAT THE CITY SHALL BE SUBJECT TO ASSESSMENTS
THEREUNDER.
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 Entiti es ") and their emp lo yees
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 C iti es and Towns and Non-City Entities
to jointly self-insure ce1tain 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 we lfare 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-in sure 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 Inter local
Agreement (the "lnterlocal Agreement") attached hereto creates a joint se lf-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
74235241.5 0053138-0000 I 1
WHEREAS, WAC 200-110-030 requires every local government entity participating in a
joint self-in surance health and welfare benefit program to adopt such program by reso lu tion; 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 wi ll
manage Health Care Program re serves 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 A WC funds; and
WHERAS , the Trust intend s to manage the HCP Account assets in compliance with
federal and state laws and the lnte rl ocal Agreement; and
WHEREAS, the City of Marysville believes it is in the best in tere st of t he Health Care
Program to allow the Trust to manage the HCP Account;
NOW THEREFORE, BE IT RESOLVED, that the Mayor is hereby authorized to execute
the lnterlocal Agreement creating the Health Care Program;
RESOL YEO FURTHER, that by authorizing execution of said Inter local Agreement, the
City of Marysville acknowledges that it sha ll be subject to assessments as required by the Health
Care Program.
PASSED by the City Council and APROVED by the Mayor the ) LjrfA day of October,
2013.
~c..
City Attorney
74235241 .5 0053 138-0000 I 2