June21; Joint MACo/JPA/JPIA · 2018-12-30 · MACo recommends that counties include the base in the...

2715 51<.yway Drive Helena, MT 59602- I 213 (406) 444A360 fax (406) 442-5238 e-mail: [email protected]

MONTANA ASSOCIATION OF COUNTIES BOARD OF DIRECTORS MEETING

Wednesday, June 27, 2007 MACo Office - Helena, MT

MEMBERS:

Officers

_X_ John Prinkki, President

_X_ Cynthia Johnson, 1st Vice President

_X_ Mike McGinley, 2nd Vice President

_X_ Allan Underdal, Fiscal Officer

_X_ Greg Chilcott, Urban Representative

_Bill Kennedy, Past President

District Chairs

_X_ Richard Dunbar, District #1

_X_Mark Rehbein, District #2

_X_Donald Reiger, District #3

_X_ Harvey Worrall, District #4

_X_ Arnie Gettel, District #5

_X_ Carl Seilstad, District #6

_X_ Maureen Davey, District #7

_X_Mike Murray, District #8 Vice Chair

8:00 a.m.

MINUTES

_X_Bernie Lucas, District #9

_X_Paddy Trusler, District #10

_X_Judy Stang, District #11

. .:.:.X_Tom Rice, District #12

Association Representatives

_Leo Gallagher, Attorneys

_Lisa Kimmet, Clerk and Recorders

_X_Marilyn Hollister, Clerks of Court

_Richard Brown, Coroners

_X_ Gary A. Olsen, Magistrates

_ T. Gregory Hintz, Sheriff & Peace Officers

_X_ Jennifer Reinhardt, Treasurers

_X_ Diane Inbody, School Superintendents

Others Present: Harold Blattie, MACo Executive Director; Sheryl Wood, MACo Associate Director

MACo Board of Directors Joint MACo/JPA/JPIA Meeting "June21; 2001 "" "- "" - " -- -- - " -----"" Minutes of 12

1. Call to Order - Roll Call

President Prinkki called the meeting to order. Roll call and introductions were conducted.

2. Approval of the Minutes - February 12, 2007

Greg Chilcott moved and Judy Stang seconded to approve the minutes as presented. Motion carried.

3. District Meetings Report I Nominations

Director Blattie reported the officer nominations received at the District Meetings for MACo Second Vice President and Fiscal Officer. Nominees for 2nd VP are: Carl Seilstad, Fergus County; Joe Briggs, Cascade County; Vic Miller, Blaine County; and Marianne Roose, Lincoln County. Allan Underdal was nominated to serve another term as MACo Fiscal Officer. Harold noted that nominations remain open until the closing general session of the Annual Conference.

4. Legislative Interim Committee Report

a. Director Blattie reviewed the handout outlining the Interim Committees and their assigned studies.

b. HB 49 - Study of Special Purpose Districts - Director Blattie reported that this study is structured with appointees from both city and county governments. MACo has only received interest from one commissioner, and no clerks or treasurers. The Committee is meeting tomorrow and if we can provide them with nominees they can appoint the members and get their work underway. Mike

. MqGinley (;lgrt;t;dJo §e.rye (;ls tbE3G9n:trnissio11er repr?§€lntatiye, . c. President Prinkki reported on the stream access bill. Stakeholder meetings will

be held with interested organizations (Trout Unlimited, Stockgrowers, sportsmen's groups, etc.) to try to work together on a resolution to this issue rather than be faced with an Initiative being placed on the ballot.

d. President Prinkki reported that there are Wildland Urban Interface issues developing in Idaho and Nevada. There was a meeting last week in Red Lodge and this is going to be a big issue. The Feds will not be doing structure protection. Counties need to be actively involved in this issue.

e. Director Blattie reported that the process for the permissive health insurance levy continues to be an issue. MACo will be hosting a meeting on July 23rd with stakeholders to try to find a resolution via either legislative or policy.

f. Director Blattie reported that MACo will be gathering the Council of County Officials to work on a legislative proposal to consider eliminating additional increments in elected officials salaries. He reviewed the structure of the increments for elected officials, and informed the board as to the problems that have developed with county compensation boards trying to implement them. One question that has developed is what is the process if the county compensation board approves the salaries and the commissioners deny the recommendations? MACo's position is that they need to agree. Another area where the increments have become problematic is the $2,000 allowance for Sheriff's. A Lewis and Clark County Judge has ruled that it is part of the base and shall be used in calculating deputies' salaries. Based on that decision, MACo recommends that counties include the base in the calculation of deputies'

MACo Board of Directors Joint MACo/JPA/JPIA Meeting June 27, 2007 Minutes of12

salaries. This issue is currently pending in the Supreme Court.

5. Affiliate and Associate Membership Program

Associate Director Wood reviewed the 2006 bylaw amendment approved by the Membership to allow both Affiliate and Associate Membership programs, to enhance corporate contributions and to offer memberships to all Elected Officials organizations as well as state agencies and associated non profit organizations.

Board Members were provided the revised 2007 Vendor/Sponsor Program packet, and the proposed Affiliate and Associate Membership Programs. Following discussion, Paddy Trusler moved and Greg Chilcott seconded to approve the Affiliate and Associate membership programs as presented.

President Prinkki noted that a proposal was received to auction door prizes at the Annual Conference in an effort to increase revenues. It was agreed to forward this to the Conference Planning Committee for their consideration.

6. 2008 Membership Dues Schedule

Director Blattie reported that the Board has the authority to increase dues by COLA. A question at was raised at District Meetings regarding the inclusion of the PIL T assessment. Director Blattie informed the Board that the purpose of the PIL T Assessment is to help pay WIR dues and travel for WIR members. WIR dues are paid by State Association's and not by counties.

Commissioner Trusler asked which number was used in the proposed budget. Director Blattie reported both the PIL T and dues COLA increase. Commissioner Chilcott asked if WIR dues have increased with COLA? Director Blattie reported they have increased much more than that as the WIR board approved increases the last two years. Commissioner Chilcott asked if the PILT assessment was covering the dues and travel? Director Blattie reported that the PIL T assessment pays the dues but does not adequately cover travel.

Fiscal Officer Underdal explained the decisions of the Tax, Finance & Budget Committee to recommend the COLA increase.

Commissioner Rehbein requested that the Board defer to the rest of the budget before taking action on the proposed dues increase. The Board concurred.

7. Upcoming Meeting Schedule and Update

Director Blattie reviewed the calendar that was included in the Board packets. He noted that Board members were also provided a copy of the draft Annual Meeting Agenda. Director Blattie reported on upcoming meetings with the Conference Planning Committee, and with Jane Jelinski to discuss the December Commissioner Certification. He informed the Board of a change in the Loss Control Conference Agenda, as LTAP & MACRS will have a parallel track to the MSPOA. Another change is the JPA/JPIA Annual Membership meeting has been moved to midwinter due to poor attendance at last year's Loss Control Conference.

Director Blattie also reported that the MSU Local Government Center has recently MACo Board of Directors Joint MACo/JPA/JPIA Meeting June 27, 2007 Minutes of12

completed the Annual Salary Survey, and it is available to counties for $15.00 per copy.

8. President's Scholarship Award

President Prinkki reported that Lisa Dell from Bridger had been awarded the $1500 scholarship, and Jennifer Turk from Joliet had been awarded the $1000 scholarship. President Prinkki noted that this will be beneficial in helping these ladies go to college as both families have health issues. President Prinkki thanked the board for their continued support of the program.

9. Proposed Natural Resource Associate Director Position

Director Blattie reported that District 6 & 7 had made a request to create a budget for the position and to present it to the Board for consideration. Harold distributed and reviewed the proposed budget for the position. Commissioner McGinley questioned if this position would help with forest and/or BLM plans, etc? Director Blattie Harold clarified that this position would be for lobbying, etc., for forest counties, PIL T, etc. Commissioner Johnson expressed concern if the scope of the position is limited.

Commissioner Davey noted that there is a problem at legislature regarding what is a "county" organization. She further noted that the Hard Rock Mining Counties have considered hiring a lobbyist and they may be interested in this position. Director Blattie stated that only a few counties have hard rock interests, but it is a big deal in those that do. This session there was a bill from the Department of Commerce that proposed making payments a statutory appropriation.

President Prinkki reported he had visited with some members of the Executive ··· ···Committee· and there··was a eoncern of·· being· able to find an individual·with the·

knowledge to address the broad range of issues. President Prinkki noted that this issue could carry forward to Annual Meeting for consideration, and would have to be supported by all three of the natural resource committees.

Commissioner Chilcott noted that it was discussed a year ago about hiring an additional Associate Director to initiate more contact with the counties by getting on the road. It makes more sense to consider an Associate Director and not have the position as strictly defined. The duties could be defined in the position description.

Commissioner Reiger commented that Musselshell County Commissioner Sue Olson presented the request for this position to the recent Oil, Gas and Coal counties meeting. He noted that there have been problems for 20 years, as different Associations have differing interests and one person is going to have problems pleasing all of them.

Commissioner Seilstad questioned how this position would be funded and noted that natural resource issues are very diverse. When MACo goes to the Legislature, we try to get consensus from our membership. It's going to be difficult to get consensus on issues like drilling on the Rocky Mountain Front, coal bed methane, etc. Commissioner Seilstad also noted he understands the problem is lobbyist communication and feels it can be solved with cooperation. Director Blattie noted that the Council of County Officials might need to bring in other groups such as the Forest Counties, Hard Rock Mining Counties, Oil Gas & Coal Counties, etc.

MACo Board of Directors Joint MACo/JPAJJPIA Meeting June 27, 2007 Minutes of12

Mark Rehbein moved and Paddy Trusler seconded to indefinitely table this issue. Motion passed

Commissioner Seilstad noted that it is difficult for him to vote for his district as he has two counties opposed, two counties don't feel they have enough information and two counties want the issue brought forward to the to the Annual Meeting.

President Prinkki responded that the motion had passed for the Board to indefinitely table the issue, but there is still the option to bring it before the membership at the Annual Meeting.

10. Proposed Personnel Policy Amendments

a. Employee Health Insurance Benefit - Medical and Life Director Blattie explained that the current policy language was written to implement a Board action to pay full family premiums for employees hired prior to July 1, 2003. It has not been a problem because there were no premium increases. This year there is an increase in employee, spouse and dependent premiums. This proposal clarifies the language to reflect that MACo will pay the employee premium, and only the spouse and dependent costs that were in place on July 1, 2003. Any increases above that would need to be paid by the employee.

Don Reiger moved and Mike Murray seconded to accept the amendment as presented. Motion carried.

b. Voluntary Employee Beneficiary Association (VEBA) Benefit Associate Director Wood reported that this change is to incorporate the Board's actions of December 11, 2006 regarding MACo's participation in the VEBA program.

Greg Chilcott moved and Carl Seilstad seconded to accept the amendment as presented. Motion carried.

c. Retiree Health Insurance Benefit Director Blattie reported that this change is to incorporate the Board's actions of December 11, 2006 regarding MACo's Retiree Health Insurance Benefit.

Mike McGinley moved and Mike Murray seconded to accept the amendment as presented. Motion carried.

d. Probationary Period Use of Annual and /or Sick Leave

Director Blattie reported that with the addition of Claims staff, HCT staff, and new employees, payroll has become quite cumbersome in calculating leave without pay as they may have had vacations scheduled, or become sick during their probationary period. This request is to allow employees to use any accrued vacation or sick leave during their probationary period.

Don Reiger moved and Harvey Worrall seconded to accept the amendment as presented.

Following discussion, Paddy Trusler moved to amend the policy to allow the use of


sick leave only during an employee's probationary period. Richard Dunbar seconded. The motion to amend carried with 3 opposed.

The question was called on the original motion with the amendment. Motion carried.

e. Clarification of Exempt Employee Compensatory Time Policy Director Blattie informed the Board that this proposed amendment clarifies the cap on the amount of exempt time that may be accrued by exempt employees.

Mike McGinley moved and Greg Chilcott seconded to approve the amendment as presented. Motion carried.

11. NACo Board and Steering Committee Appointments

First Vice President Johnson reviewed the 2007-2008 NACo Steering Committee appointments. She commented that the number of appointees was reduced from 12 to 1 O due to economics and former MACo President Kaercher's resignation, as there was not a replacement appointed for the Human Services Committee. Commissioner McGinley is on the State Workforce Investment Board, so he will be serving on the NACo Labor and Employment Steering Committee. Cyndi Johnson will move to the Community and Economic Development Committee.

First Vice President Johnson reviewed the sponsored positions and noted that other agencies and/or counties fund these positions, and the appointments would continue as long as that funding was available.

President Prinkki informed the Board that MACo has transitioned these appointments · ··tomatchwiththe NA Go deadline to have·the appointmentscompletedby·the NAGo····· ···

Annual Conference, rather than at the MACo Annual Conference.

12. Association Evaluation Committee

First Vice President Johnson reported that the Committee will meet in July to develop questions and will be using Survey Monkey to try to get a higher rate of response.

13. Other Business

a. Polling Place Accessibility Grant Committee Representative

Director Blattie reported that a request has been made for a Commissioner to serve on this Committee. Allan Underdal volunteered.

b. Technology Services

Associate Director Wood reported that there was approximately $10,000 included in the budget for technology services. RFP's had been issued and rejected, and it was the intent of the Association, with budget approval, to hire part time temporary employees to perform these services.

c. Finance Officer Position

Director Blattie reported that they had reviewed four applications for the position. MACo Board of Directors Joint MACofJPA/JPIA Meeting June 27, 2007 Minutes of12

President Prinkki, JPIA Chair Murray, and staff screened the applications. Harold is prepared to make an offer and hopes to make the announcement shortly.

d. Publications Coordinator Position

Director Blattie reported that Shantil has given notice and her last day is Friday, July 27. She will be doing the website, list serve and newsletter remotely from California on a temporary basis while the position is filled.

14. Executive Director Evaluation

President Prinkki reviewed the results of the Executive Director's annual performance evaluation. The results were very positive, and the membership is very pleased with Harold overall. President Prinkki noted that MACo was very well represented by Commissioners and staff at the legislative session, and thanked Harold and Sheryl for their hard work.

Director Blattie Harold thanked the Board for their support while the Association went through numerous changes in last 1-% yrs. He asked Board members and District Chairs to please pass it on when they hear issues and room for improvement, as we can't fix what we don't know about.

Joint Meeting MACo Board of Directors, JPA Trustees and JPIA Trustees

The members of the MACo Board of Directors, JPA and JPIA Boards of Trustees convened in a joint meeting. Board Member and Trustee attendance is noted above. Others Present: Greg Jackson, JPA/JPIA Marketing Director; Jack Holstrom, JPIA Personnel Services Administrator; Patti Grosfield, MACo Finance Officer.

MACo Organizational Structure Review

Director Blattie provided the history of MACo and the Trusts. A provision of Harold's position description is to provide an organizational chart to the board. Harold feels this is a policy matter and not under the strict purview of the Executive Director. The genesis is in trying to determine the relationship of the Trusts and the Association. Harold has reviewed all documents and found no history that could be traced. This is an effort to establish a foundation and clarification for the future.

The Trustees and the Executive Committee were presented with 4 different proposed structures last May and an additional proposed structure was presented at the Trustees retreat in December. After reviewing the proposals, the Trustees directed Harold to create a whole new organizational chart to include their recommendations. This chart will serve as the organizational chart for supervision and for communication. This chart also reflects that the Trusts have a contractual relationship with the Association for providing services to the Trusts.

President Prinkki reported that this became important in relationship to staff regarding the Executive Director and Associate Director, and as to who was in a supervisory

MACo Board of Directors Joint MACo/JPNJPIA Meeting June 27, 2007 Minutes of12

position in the Executive Directors absence.

Clarification was requested regarding the dotted vs. solid lines between JPIA members and the Executive Director. Harold clarified the dotted line indicates the contractual relationship between the MACo Board of Directors and the Trustees. The Trust documents name the MACo Executive Director as an officer and as Secretary.

President Prinkki noticed that this effort is to clarify the relationships. Along with adopting the organizational charts, the two Trusts and the MACo Board of Directors will need to convene independently to approve the structure, and the agreements between the Trusts and the Association. This will require three motions, three votes, and three sets of notes.

Director Blattie explained the "not to exceed" language in the Agreements. The Board of Trustees approves the dollar amount that is proposed as flow through dollars with the exception of the 5% Pooled Investment Fee (PIF) for the management of investments (interest earnings).

Harold noted that this was based on an agreement created for the Health Care Trust. Harold modified them for each Pool. The JPA Trust is different only in the dollar amount and the relationship with the Department of Labor.

Harold further reported that there is evidence of a prior written service agreement between MACo and the JPA where a fee schedule was created. He cannot find that agreement, but audit notes report that JPA Trustees approved a percentage of premium. This has not been done for five or six years.

Jack Holstrom questioned the term "agents" as it could relate to an IT specialist rather -~ -than an Insurance· Agent. ··Following·discussion··it·was ·agreed· to·· replacetheword·········

"agents" with "contractors".

Trustees questioned the salary allocations as to why the shift of time allocations for the upcoming fiscal year. Director Blattie explained that the Trustees gave preliminary approval of salary allocation changes in May. Director Blattie reported that the Board sets his salary, and he sets all others. He is trying to depart from the idea of time spent to the value of the position, because of wide difference in value in salaries. Think of a bunch of part time jobs that roll into one full time. Each part time job would have a different salary based on weighting of value. This proposal is based on the fundamental basis that trusts approve budget and the contract amount and the Executive Director sets employee salaries.

Director Blattie was asked why only 25% of his salary is allocated to MACo. Harold reported that the workload increased due to the growth of the Pools, and we need to absorb the costs of existing salaries of staff who have assumed additional duties. MACo has not significantly changed.

Harold provided a history of the Assistant/Associate Directors' relationship to the Pools. Bev Gibson had no connection to pools. Jane Jelinski had some involvement because of serving on the Board. When Harold came on, he had experience with the pools both as a Trustee and as Past President. The Publications position was created and a new administrative assistant was hired. To make the budget work, the Executive Director did a salary split for the Assistant Director. This allowed the dollars to create of the other


position. The intent was that Harold would move into the Executive Director position and Gordon felt important that Harold maintain involvement in the Trusts. When the Associate Director was hired, this was not changed; it was just putting same person in same position. When we look at world as we see it today, Harold has moved responsibility to Sheryl related to the Health Care Trust and her involvement with other two pools is less than Harold's.

Commissioner Dunbar expressed concern regarding the Health Care Trust (HCT) and his understanding that it was originally presented that the HCT would run without MACo staff involvement or any costs to MACo. He asked when that changed and MACo staff time was allocated to the HCT?

Director Blattie informed the Board that it was anticipated that there would be minimal time spent on the creation and operation of the HCT. However, it has become more work than anticipated when the Montana School Services Foundation (MSSF) informed MACo that they would not be continuing as the third party administrator (TPA). The HCT Board was presented options for contracting with another TPA or bringing administration in house. They decided to bring administration in house, with salary allocations for the Executive and Associate Director's and the Finance Officer. It was questioned if the MACo Board needed to approve the decision. President Prinkki clarified the Executive Committee has that authority.

Commissioner Reiger asked if MSSF had decided not to continue as TPA due to exposure. President Prinkki responded that their Board of Directors had decided to focus on schools following the legislation for state health insurance pools.

Commissioners Rehbein and Reiger questioned the reserve levels of the HCT and. the exposure to MACo - i.e., who would be responsible for the loss if the pool failed. Director Blattie responded that the reserves are actuarially set, as with the other pools. The Association is serving as the Trust Administrator, and there is no exposure other than to the members of the HCT, as is the case with the JPA and JPIA Trusts.

Harold further reported that MACo currently receives a $1 per member per month payment to offset administrative costs. As of July 1, 2007, the Association will no longer receive that amount, but will bill for direct reimbursement of costs.

The MACo HCT met in May and approved their budget. MACo will bill for the direct reimbursement of MACo staff salaries and benefits, and travel costs. The amount being proposed in the Agreement is $219,832. This agreement will be presented to the HCT Board at their September meeting.

Commissioner Murray questioned the term of the agreement and asked if it should be changed to notice of termination in October, following the February membership meeting. President Prinkki informed the Board that this is based on a fiscal year rather than a membership year.

It was questioned if the termination date should be changed to March 1 to coincide with the February membership meeting. Following discussion it was decided to leave it the way it is to give MACo and the Pools time to make arrangements for alternative administrative services, reductions in force, asset reductions, etc.


It was clarified that any amendments would go through the JPA, JPIA and Executive committee. Budget amendments would need to be brought to the full Board by the Executive Committee.

JPA Budget

Chair Prinkki convened the JPA Board of Trustees

Section 2.3 of the agreement regarding the annual fee was discussed and the JPA budget was reviewed. The budget is in three sections - income, expenses and dollars available for claims payments. The total administrative operating expenses for MACo equal $728, 67 4. Director Blattie explained that the Pool Trustees met on May 301

h to go through the budget detail and these changes are largely related to salaries. The Trustees gave preliminary approval for approximate salaries, and they have now been calculated to include taxes & benefits, etc. The amount approved by the budget would go into the agreement between the JPA and MACo.

Mike McGinley moved and Cyndi Johnson seconded to approve the proposed JPA budget in the amount of $728,674.

Discussion: Trustee Chilcott expressed concern regarding the salary implementation all in one year and suggested it should spread over two years. Director Blattie responded that at the May meeting, the Trustees went through the process of the methodology of creating salaries. Director Blattie had conducted a salary study particularly related to insurance pools, such as AGRIP, NCCAE, MMIA, etc. Recommendations were made to Trustees at that time for adjustments. Trustee Chilcott noted it was difficult to adopt and take home when he could not do this for his employees.

Director Blattie distributed the salary scheduled and explained the methodology. The trustees rejected the 100% of mean proposal, and accepted the 95% of mean proposal. Salaries were set at 85% of the mean last year. The mean has changed this year for some positions. The percent of mean schedule also included some judgment on the part of the Executive Director. Last year, 85% of the mean was in some cases not the entry or the COLA. In the future, there would just be a request for a dollar amount and not go through this exercise.

VOTE ON MOTION: Motion passed.

JPIA Budget:

Chair Murray convened the JPIA Board of Trustees.

John Prinkki moved and Carl Seilstad seconded to approve the proposed JPIA budget in the amount of $757,341. Motion Carried.

MACo Membership Dues and Budget:

President Prinkki convened the MACo Board of Directors.


MACo Membership Dues:

Allan Underdal moved and Paddy Trusler seconded to accept the Tax, Finance and Budget Committee recommendation to approve increasing the MACo membership dues and PIL T assessment by the 2007 COLA of 3.2%.

Discussion: Commissioner Chilcott questioned the increase on the PIL T assessment as this amount is set at the federal level and is out of county control. Additionally, some counties taxable values are changing dramatically. Director Blattie reported that the dues are based on the previous years payment. If taxable value changes, the mill tier chart on dues schedule will be adjusted. Commissioner Dunbar stated he also disagreed with the increase on the PILT assessment.

Carl Seilstad made a substitute motion to assess the COLA increase on membership dues only. Greg Chilcott seconded. Motion carried.

MACo Budget:

Greg Chilcott moved and Harvey Worrall seconded to adopt the FY 08 MACo/JPA/JPIA/HCT budgets as amended.

Discussion: Commissioner Rehbein expressed concern for the Executive and Associate Directors workloads with the insurance trust growth. Director Blattie thanked him for his concern. The JPIA/JPA Boards approved adding a Claims Adjuster last year, and have added an Accounting Tech and a Data Coordinator Position this year. He further noted that positions and responsibilities have evolved in last few years. The Executive Director's position doesn't resemble what it did ten years ago. The Association could have looked at another legislative position, but didn't feel membership would have supported it. President Prinkki commented that the Board could help staff as MACo has a budget for payment of travel expenses.

VOTE ON MOTION: Motion carried with two opposed.

MACo/JPIA Agreement

Carl Seilstad moved and Paddy Trusler seconded to accept the agreement with the Montana Association of Counties for administrative services in the amount not to exceed $757,341.

Discussion: Concern was expressed regarding the timeliness of this agreement, as it had just been finalized on the previous day. President Prinkki noted that the Board(s) could amend the budgets and/or the agreements at the September meeting.

Trustee Underdal asked if MACo would be assuming any more risk under this arrangement. Jack Holstrom clarified that we could find no documents clarifying employee roles. MACo is primary for liability, and the Agreement has hold harmless and indemnification language. Jack noted that this is not a change; it is just clarifying the way it's working now.

Trustee Dunbar expressed concerns of the potential liability for MACo if the Pool has problems. Director Blattie responded that MACo ls responsible and liable for employee

MACo Board of Directors Joint MACo/JPA/JPIA Meeting June 27, 2007 Minutes of 12

practices, such as a wrongful discharge suit. Greg Jackson noted that there is current coverage for Employees and Officers for the JPA, JPIA, and MACo. If the Agreement is adopted, it will need to go back to the underwriters.

Vote on Motion: Motion passed to accept agreement.

JPA I MACo Agreement

Greg Chilcott moved and Cyndi Johnson seconded to seconded to accept the agreement with the Montana Association of Counties for administrative services in the amount not to exceed $728,674. Motion carried.

MACO BOARD OF DIRECTORS', JPA/JPIA AND HCT AGREEMENTS

Paddy Trusler moved and Mike McGinley seconded to accept the agreements with the JPA, JPIA, and the HCT.

Discussion: Commissioner Dunbar expressed that he has the same concerns with liabilities. President Prinkki clarified that the liabilities have always existed, and we can insure against them. Those insurance premiums will come from JPA/JPIA and HCT costs. It was requested that MACo ensure there is coverage and to track it on quarterly basis. Director Blattie noted that this clarifies and cleans up confusion on who works for who, etc., as there have been previously differing opinions and assumptions. He advised Board that they would not see a difference as to how things are currently working, and assured them it would be closely reviewed and monitored.

· · ···· -········ ··MOTIGN: Motioncarriedwithtwo·opposed:·

JPIA Trustees - L TAP Loss Control Proposal

Director Blattie reported that Loss Control Specialist Fred Hansen had met with Steve Jenkins, with the Local Technical Assistance Program. Steve isn't able to get to rural counties and provide the services they deserve. L TAP proposed hiring Jack Knorr to travel to smaller counties to work and train on flagging, signing, worksite safety, etc. Asked JPIA to consider contributing $5,000 towards this effort. Greg Jackson noted that the relationship would be like we have with Jerry Williams at academy. Director Blattie reported that the state takes 11 % of the federal funds for administrative costs, and the University is taking 29% resulting in LTAP receiving .60 on the dollar. LTAP has inquired if MACo could be the pass through for the funding to reduce the administrative costs.

There being no further business to come before the Board, Mike Murray moved and Paddy Trussler seconded to adjourn the meeting. Motion carried.

ApP,~·?ve~}hi~.~ da1~.~.~-~ .. }. ·t.e~~elJ; ~.007 r 4 / .

/n <··7 '/} •Clf1.,}i,ll,-t jL/fJ-l~~ Johfti Prinkk( Presidenf j L. Harold Blattie, Secretary

J


AGREEMENT

This agreement is made and entered into this J 1 day of 2007, by and

between the Montana Association of Counties Joint Powers Authority, 2715 Skyway Drive,

Helena, MT, hereafter referred to as MACo JPA, and the Montana Association of Counties,

2715 Skyway Drive, Helena, MT, hereafter referred to as MACo.

INTRODUCTION

WHEREAS, MACo JPA provides workers compensation insurance coverage to its

member counties, and;

Whereas, MACo JPA desires to engage MACo to perform certain administrative, marketing,

claims administration, risk management and lobbying services on its behalf, and;

Whereas, this instrument sets forth the terms and conditions in accordance with which MACo

will provide such service for MACo JPA.

1. Retention of MACo

1.1 MACo JPA agrees to retain MACo to act as its administrator, in which capacity

MACo shall provide the administrative, marketing, claims administration, risk

management and lobbying services as described in Exhibit "All attached (the

"administrative services").

1.2 MACo agrees to provide the above referenced administrative services on behalf

of MACo JPA.

1.3 MACo acknowledges that the individuals it retains to perform services on behalf

of MACo JPA shall be employees or contractors of MACo or employees of

subcontractors of MACo and shall not be considered employees of MACo JPA.

Any employees, contractors or subcontractors which MACo retains to perform

MACo JP Al MACo Agreement, Version 2, June 25, 2007 1

administrative services on behalf of JPA shall be entitled to compensation

solely from MACo. The MACo Executive Director shall provide a current copy

of the MACo Organizational Chart to MACo JPA at any time it may be

amended.

1.4 MACo agrees to comply, and agrees to use its best efforts to cause its

contractors and subcontractors to comply with all applicable and current

policies, directives, instructions, rules, regulations and procedures established

or issued by or on behalf of MACo JPA which may have been communicated to

MACo and which may involve any matter directly or indirectly related to the

administrative services.

1.5 MACo will make every reasonable effort to comply with the applicable

provisions of federal and state laws.

1.6 MACo shall manage the investments of the assets of JPA in accordance with

investment policies adopted by the trustees of JPA as set forth in Exhibit "B"

attached (the "Investment Policy").

2. Administrative Costs

2.1 MACo shall, with respect to furnishing the administrative services, be entitled to

fees equal to the actual incurred and allocated, salaries, employment related

costs, travel and other direct and allocated costs for staff providing services on

behalf of MACo JPA as well as trustee-related direct and allocated costs.

Additionally the fee shall include allocations for building operation and

maintenance, reserves for leave liability, building reserves and auto reserves.

MA Co JP Al MA Co Agreement, Version 2, June 25, 2007 2

The fee shall also include any other costs associated with the administrative

functions of JPA, as approved by the JPA Trustees, either by approval of the

annual fee amount or other action of the JPA Trustees.

2.2 The annual fee shall be agreed to by both parties no later than July 1st each

year and shall be based upon a budget adopted annually by the JPA Trustees

or as amended during any fiscal year.

2.3 The fee for the period July 1, 2007 through June 30, 2008 shall be based upon

actual costs incurred by MACo for services provided for in this agreement and

shall not exceed $ ·z:;,, B, (a 7 <../-, unless specifically amended

and agreed to by the parties.

2.4 MACo JPA shall transfer to MACo payments for fees in monthly installments

based on a billing provided by MACo of actual incurred costs.

2.5 In consideration of MACo providing investment management services to MACo

JPA, MACo shall receive in addition to the above fees an amount equal to 5%

of the income earned from JPA investments, excluding investments in real or

personal property or real estate.

3. Approval

3.1 MACo shall not commit or purport to commit MACo JPA to any contract,

agreement, understanding, or act without the prior consent of the Trustees of

MACoJPA.

3.2 MACo shall not take any action which results in it holding in its own name any

contributions for coverage extended by MACo JPA.


4. Term of Agreement

4.1 The initial term of this Agreement shall commence on July 1, 2007 and shall be

renewed annually until it is terminated by either party as provided hereunder.

4.2 Either party may terminate this Agreement for any reason by providing written

notice of non-renewal to the other party prior to April 1 of any year.

5. Ownership of Records

5.1 MACo agrees that upon termination of this Agreement, it shall immediately

return to MACo JPA without charge all papers, books, records, statistical data

and all other documents or data belonging to the MACo JPA that are related to

the operation of the MACo JPA, whether such documents or data were

prepared by MACo or any other person or entity.

6. Other Provisions

6.1 Any notice or other communication required or permitted hereunder shall be in

writing and shall, unless personally delivered into the hands of the party to be

notified, or his proper agent, be deemed effectively received as of the day

following the date of mailing thereof by registered or certified mail, with postage

and registration or certification fees prepaid, to the address of the party to

whom such notice is directed as last known to the party giving notice.

6.2 The validity and effect of this Agreement and the nature and extent of the rights

and obligations of the parties hereunder shall be in every respect construed and

determined in accordance with the laws of the State of Montana.


6.3 All written, printed, filmed, or taped material prepared by MACo in performance

of this Agreement shall be and remain the property of the MACo JPA.

6.4 This Agreement and the exhibits hereto contain all of the terms agreed upon by

the parties with respect to the subject matter hereof and supersede all prior

agreements, arrangements and communications between the parties dealing

with such subject matter, whether oral or written.

6.5 The Trustees of the MACo JPA shall retain the right to approve levels of staffing

to serve the needs of the Trust and to approve staff compensation through the

adoption of an annual operating budget which will be the basis of the annual fee

as set forth in section 2 of this agreement.

6.6 This Agreement shall be binding upon and shall inure to the benefit of the

transferees, successors and assigns of the parties.

6.7 Any cash, checks, or other instruments received by MACo or its employees on

behalf of MACo JPA shall be deposited as soon as reasonably practical in a

bank or other depository designated by MACo JPA.

6.8 Neither party shall have any right to assign its interests under this Agreement

without prior written consent of the other party.

6.9 No amendment or modification of this Agreement shall be valid or binding on

either party unless made in writing and approved by the Trustees of MACo JPA

and the Executive Committee of MACo. The waiver of a breach of any

provision of this Agreement by either party or the failure of either party

otherwise to insist upon strict performance of any provision hereof shall not

constitute a waiver of any subsequent breach or of any subsequent failure to

perform.

MA Co JP Al MACo Agreement, Version 2, June 25, 2007 5

6.10 Section headings and numbers have been inserted herein for convenience of

reference only, and if there shall be any conflict between such numbers or

headings and the text of this Agreement, the text shall control.

6.11 This Agreement may be executed in one or more counterparts, each of which

shall be considered an original, and all of which taken together shall be

considered one and the same instrument.

6.10 MACo JPA agrees to protect, defend and save MACo, its elected and appointed

officials, contractors and employees, while acting within the scope of their

duties as such, harmless from and against all claims, demands and causes of

action of any kind or character, including the cost of defense thereof, arising out

of services performed or omissions of services or in any way resulting from the

acts or omissions of MACo JPA and/or its contractors, employees,

representatives, assigns and subcontractors under this agreement.

6.11 MACo agrees to protect, defend and save MACo JPA, its elected and appointed

officials, contractors and employees, while acting within the scope of their

duties as such, harmless from and against all claims, demands and causes of

action of any kind or character, including the cost of defense thereof, arising out

of services performed or omissions of services or in any way resulting from the

acts or omissions of MACo and/or its contractors, employees, representatives,

assigns and subcontractors under this agreement.


IN WITNESS OF THE FOREGOING, MACo JPA and MACo have authorized this Agreement

to be signed by their duly authorized officers.

MONTANA ASSOCIATION OF COUNTIES, JOINT POWERS AUTHORITY

Date: ~, ,6.] J).. 06 J

By: ~ 2.., GJ.u,Jt.,' , JPA Trust Chair

MONTANA ASSOCIATION OF COUNTIES

Date: ~ 211

Jl,Oo'f

By: ~;!, ~ · , MACo President

MACo JP A! MA Co Agreement, Version 2, June 25, 2007 7

EXHIBIT "A"

MACo shall perform duties consistent with generally accepted performance standards for marketing, risk management, claims administration, member services and other services as may be requested by MACo JPA and set forth in position descriptions for MACo employees providing services to MACo JPA.

Examples of typical duties and services provided are listed below. This list is not intended to set forth specific requirements, but rather is meant to serve as a general guideline, nor is it intended to be all-inclusive.

• Devise and direct a professional and imaginative promotional and marketing campaign for existing Trust programs designed to attract and retain member counties.

• Devise and coordinate member services, as necessary to allow MACo JPA to compete in the marketplace.

• Prepare written proposals for potential member counties.

• Make timely visits to member counties to discuss concerns and problems.

• Provide timely bulletins and risk alerts to member groups.

• Research and answer inquiries from current and prospective members in a timely manner.

• Act as conduit for communications between the brokers, agents and other third-party administrators with the JPA Trustees and member counties and insured's.

• Act as a liaison to the Montana Department of Labor and Industry for matters related to the regulatory authority of MDOL.

• Develop and provide an effective risk management program to reduce and manage loss exposure.

• Provide claims management services including the assignment of counsel to defend member counties and insured against claims within the coverage provided by the JPA Trust. It is understood that settlement authority in excess of amounts, as determined by the Trustees, shall be retained by the JPA Trust.

• Provide other administrative, risk management, claims management and other services as may be requested by the JPA Trustees.

• Process data to enable the Trustees or the re-insurer to make informed decisions.

MACo IPA/ MACo Agreement, Version 2, June 25, 2007 8

• Calculate, bill and collect premium payments, as established by the JPA Trustees from participating members and prepare related documents and reports.

• Perform the necessary accounting functions for the Trust, which includes, but are not limited to the following: premium billing and collection, reconciliation of all JPA accounts; development of records, documents and reports desired by the JPA Trustees; timely entry of all transactions in accounting programs; monitoring of account balances and making timely transfers as necessary to and from long term investments as necessary to maintain positive account balances. MACo shall also manage the investments of the Trust in accordance with investment policies as may be determined by the JPA Trustees.

• Prepare for and attend all Trustees' meetings.

• Attend meetings at which the Trustees request representation.

• Monitor and prepare reports to the Trustees on relevant legislation and respond as directed by the Trustees.

• Act as a conduit for communications between the Trustees and third parties.

• Prepare and disseminate projections and proposed budget information to the Trustees at their direction.

• Provide staff support facilities or engage subcontractors as may be necessary to properly and promptly perform the services listed above.

• Assist the Trustees in drafting policies and bylaw amendments for the operation of the Trust as may from time to time be proposed.

• Administer underwriting functions as it relates to establishing premium rates for members.

• Obtain quotes for excess re-insurance coverage for the Trust as determined by the JPA Trustees.

• Prepare correspondence incidental to day-to-day operation of the Trust.

• Arrange for and assist in the design of the employee booklets, forms and announcement material to participants of the Trust.

• Assist the Trust in the preparation of filings as may be required by state or federal regulations.

• Prepare reports for the Trustees concerning current developments in the workers compensation insurance industry.

MACo JP Al MA Co Agreement, Version 2, June 25, 2007 9

• Prepare and provide information to brokers and insurance companies, and obtain quotes to place the Trustees' errors and omissions liability insurance.

• Provide information to and consult with the actuary, investment advisors and brokers as necessary.

• Provide financial information for the Trust's outside independent auditor for preparation of the annual audit report.

• Consult with Trust General Counsel in drafting and revising Trust documents, claims and coverage issues, retain counsel to represent the Trust in legal disputes and other legal issues as necessary.

• Consult with other contractors or consultants as necessary.

• In connection with the activities listed above, MACo shall maintain records pertaining to the Trust including, but not limited to:

• Correspondence.

• Premium billings and calculation information.

• Reports to Trustees.

• Documents related to the financial activities of the Trust.

MACo JP Al MA Co Agreement, Version 2, June 25, 2007 10

EXHIBIT "B"

INVESTMENT POLICY

OBJECTIVE

The objective of this policy is to protect the interests of members by promoting solvency and financial strength. This purpose will be accomplished through the application of investment standards that facilitate a reasonable balance of the following objectives:

(a) preservation of principal; (b) ensuring reasonable diversification as to type of investment, issuer, and credit

quality; and (c) allowing the allocation of investments in a manner consistent with principles of

prudent investment management to achieve an adequate return so that obligations to members are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.

POLICY STATEMENT

It shall be the policy of MACo JPA to manage cash and other assets of the Trust in such a manner so as to provide a balance between maximizing the return on investment with a low level of risk and in such a manner as may be required under law for a risk sharing pool.

Investments of the assets of the Trust shall be limited to:

Real or tangible personal property, repurchase transactions, cash, cash equivalents, and direct obligations or securities that are fully guaranteed as to principal and interest, shortterm, highly rated, and highly liquid investments or securities readily convertible to known amounts of cash, money market mutual funds or bond mutual funds, and other investments that shall from time to time be approved by the Trustees or as may be required under law for a risk sharing pool.

No more than 25% of total investments, excluding real and tangible personal property, shall be made in common or preferred stock unless specifically authorized by the Trustees

Investments shall be made in such a manner that will not limit the ability of the Trust to meet cash flow needs to pay claims, administrative expenses and other costs that the Trust may from time to time incur.

Any cash, checks, or other instruments received by MACo the Trust, its employees or agents shall be deposited as soon as reasonably practical in a bank or other depository designated by MACo JPA.

Transfers between accounts shall be made to maintain positive account balances at all times.

MA Co JP Al MACo Agreement, Version 2, June 25, 2007 11

AGREEMENT

This agreement is made and entered into this 2-1!/raay of~· 2007, by and

between the Montana Association of Counties Joint Powers Insurance Authority, 2715

Skyway Drive, Helena, MT, hereafter referred to as MACo JPIA, and the Montana

Association of Counties, 2715 Skyway Drive, Helena, MT, hereafter referred to as MACo.

INTRODUCTION

WHEREAS, MACo JPIA provides property, casualty and liability coverage to its

member counties and insured special purpose districts, and;

Whereas, MACo JPIA desires to engage MACo to perform certain administrative, marketing,

claims administration, risk management and lobbying services on its behalf, and;


will provide such service for MACo JPIA.


1.1 MACo JPIA agrees to retain MACo to act as its administrator, in which capacity

MACo shall provide the administrative, marketing, claims administration, risk

management and lobbying services as described in Exhibit "A" attached (the

"administrative services").


of MACo JPIA.


of MACo JPIA shall be employees or contractors of MACo or employees of

subcontractors of MACo and shall not be considered employees of MACo JPIA.

Any employees, contractors or subcontractors which MACo retains to perform

MACo JPIA/ MACo Agreement, Version 2, June 22, 2007 1

administrative services on behalf of JPIA shall be entitled to compensation

solely from MACo. The MACo Executive Director shall provide a current copy

of the MACo Organizational Chart to MACo JPIA at any time it may be

amended.


contractors and subcontractors to comply, with all applicable and current


or issued by or on behalf of MACo JPIA which may have been communicated to





1.6 MA Co shall manage the investments of the assets of JPIA in accordance with

investment policies adopted by the trustees of JPIA as set forth in Exhibit "B"





costs, travel and other direct and allocated costs for staff providing services on

behalf of MACo JPIA as well as trustee-related direct and allocated costs.

Additionally the fee shall include allocations for building operation and

maintenance, reserves for leave liability, building reserves and auto reserves.

MACo JPIN MACo Agreement, Version 2, June 22, 2007 2


functions of JPIA, as approved by the JPIA Trustees, either by approval of the

annual fee amount or other action of the JPIA Trustees.


year and shall be based upon a budget adopted annually by the JPIA Trustees


2.3 The fee for the period July 1, 2007 through June 30, 2008 shall be based upon


shall not exceed $ z::rz., _3 v unless specifically amended


2.4 MACo JPIA shall transfer to MACo payments for fees in monthly installments



JPIA, MACo shall receive in addition to the above fees an amount equal to 5%

of the income earned from JPIA investments, excluding investments in real or


3. Approval

3.1 MACo shall not commit or purport to commit MACo JPIA to any contract,


MACo JPIA.


contributions for coverage extended by MACo JPIA.



4.1 The initial term of this Agreement shall commence on July 1, 2007 and shall be

renewed annually until it is terminated by either party as provided hereunder.




5.1 MA Co agrees that upon termination of this Agreement, it shall immediately

return to MACo JPIA without charge all papers, books, records, statistical data

and all other documents or data belonging to the MACo JPIA that are related to

the operation of the MACo JPIA, whether such documents or data were


6. Other Provisions










MA Co JPIA/ MA Co Agreement, Version 2, June 22, 2007 4


of this Agreement shall be and remain the property of the MACo JPIA.





6.5 The Trustees of the MACo JPIA shall retain the right to approve levels of

staffing to serve the needs of the Trust and to approve staff compensation

through the adoption of an annual operating budget which will be the basis of

the annual fee as set forth in section 2 of this agreement.



6.7 Any cash, checks, or other instruments received by MACo or its employees on

behalf of MACo JPIA shall be deposited as soon as reasonably practical in a

bank or other depository designated by MACo JPIA.




either party unless made in writing and approved by the Trustees of MACo JPIA





perform.

MA Co JPIA/ MACo Agreement, Version 2, June 22, 2007 5







6.10 MACo JPIA agrees to protect, defend and save MACo, its elected and

appointed officials, contractors and employees, while acting within the scope of

their duties as such, harmless from and against all claims, demands and

causes of action of any kind or character, including the cost of defense thereof,

arising out of services performed or omissions of services or in any way

resulting from the acts or omissions of MACo JPIA and/or its contractors,

employees, representatives, assigns and subcontractors under this agreement.

6.11 MACo agrees to protect, defend and save MACo JPIA, its elected and





resulting from the acts or omissions of MACo and/or its contractors, employees,



IN WITNESS OF THE FOREGOING, MACo JPIA and MACo have authorized this Agreement


MONTANA ASSOCIATION OF COUNTIES, JOINT POWERS INSURANCE AUTHORITY

Date: 0~P7/t> 7 I / 7

~~~ By:~ , JPIA Trust Chair


Date: ~ :Z1) ;},_od ')

By: ck& 2. ~Jk. , MACo President


EXHIBIT "A"

MACo shall perform duties consistent with generally accepted performance standards for marketing, risk management, claims administration, member services and other services as may be requested by MACo JPIA and set forth in position descriptions for MACo employees providing services to MACo JPIA.


• Devise and direct a professional and imaginative promotional and marketing campaign for existing Trust programs designed to attract and retain member counties and insured special districts.

• Devise and coordinate the creation of new coverage, as necessary to allow MACo JPIA to compete in the marketplace.

• Prepare written proposals for potential member counties and insured's.


• Provide timely bulletins and risk alerts to member groups.

• Research and answer inquiries from current and prospective members and insured's in a timely manner.

• Act as conduit for communications between the brokers, contractors and other thirdparty administrators with the JPIA Trustees and member counties and insured's.

• Develop and provide an effective risk management program to reduce and manage loss exposure.

• Provide claims management services including the assignment of counsel to defend member counties and insured against claims within the coverage provided by the JPIA Trust. It is understood that settlement authority in excess of amounts, as determined by the Trustees, shall be retained by the JPIA Trust.

• Provide other administrative, risk management, claims management and other services as may be requested by the JPIA Trustees.

• Process and underwrite coverage applications and such other data to enable the Trustees or the re-insurer to make informed decisions.

MA Co JPIN MACo Agreement, Version 2, June 22, 2007 8

• Calculate, bill and collect premium payments, as established by the JPIA Trustees from participating members and insured's, and prepare related documents and reports.

• Perform the necessary accounting functions for the Trust, which includes, but are not limited to the following: premium billing and collection, reconciliation of all JPIA accounts; development of records, documents and reports desired by the JPIA Trustees; timely entry of all transactions in accounting programs; monitoring of account balances and making timely transfers as necessary to and from long term investments as necessary to maintain positive account balances. MACo shall also manage the investments of the Trust in accordance with investment policies as may be determined by the JPIA Trustees.


• Attend meetings at which the Trustees request representation.





• Assist the Trustees in drafting policies and bylaw amendments for the operation of the Trust as may from time to time be proposed.

• Administer underwriting functions as it relates to pricing coverage to members and insureds.

• Obtain quotes for excess re-insurance coverage for the Trust as determined by the JPIA Trustees.



• Assist the Trust in the preparation of filings as may be required by state or federal regulations.

• Prepare reports for the Trustees concerning current developments in the insurance industry.

MA Co JPIA/ MACo Agreement, Version 2, June 22, 2007 9

• Prepare and provide information to brokers and insurance companies, and obtain quotes to place the Trustees' errors and omissions liability insurance.



• Consult with Trust General Counsel in drafting and revising Trust documents, claims and coverage issues, retain counsel to represent the Trust in legal disputes and other legal issues as necessary.



• Correspondence.

• Premium billings and calculation information.

• Reports to Trustees.

• Documents related to the financial activities of the Trust.

MA Co JPIA/ MA Co Agreement, Version 2, June 22, 2007 10

EXHIBIT "B"

INVESTMENT POLICY

OBJECTIVE:

The objective of this policy is to protect the interests of members and insureds by promoting solvency and financial strength. This purpose will be accomplished through the application of investment standards that facilitate a reasonable balance of the following objectives:



prudent investment management to achieve an adequate return so that obligations to members and insureds are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.

POLICY STATEMENT

It shall be the policy of MACo JPIA to manage cash and other assets of the Trust in such a manner so as to provide a balance between maximizing the return on investment with a low level of risk and in such a manner as may be required under law for a risk sharing pool.



Investments shall not be made in common or preferred stock unless specifically authorized by the Trustees


Any cash, checks, or other instruments received by MACo the Trust, its employees or contractors shall be deposited as soon as reasonably practical in a bank or other depository designated by MACo JPIA.


MA Co JPIN MA Co Agreement, Version 2, June 22, 2007 11

AGREEMENT

This agreement is made and entered into this day of 2007, by and

between the Montana Association of Counties Health Care Trust, hereafter referred to as

MACo HCT, 2715 Skyway Drive, Helena, MT, and the Montana As~ ''- .... nf Counties,

hereafter referred to as MACo, 2715 Skyway Drive, Helena, MT. A INTRODUCTION 12-10-

WHEREAS, MACo HCT provides employee health insura ;o

its member counties and insured special purpose districts, and;

Whereas, MACo HCT desires to engage MACo to perform certain administrative, marketing,

risk management and lobbying services on its behalf, and;


will provide such service for MACo HCT.


1.1 MACo HCT agrees to retain MACo to act as its administrator, in which capacity

MACo shall provide the administrative, marketing, risk management and

lobbying services as described in Exhibit "A" attached (the "administrative

services").


of MACo HCT.


of MACo HCT shall be employees or contractors of MACo or employees of

subcontractors of MACo and shall not be considered employees of MACo HCT

for any purposes. Any employees, contractors or subcontractors which MACo

MACo HCT/ MACo Agreement, Version 2, June 25, 2007 1

retains to perform administrative services on behalf of MACo HCT shall be

entitled to compensation solely from MACo. The MACo Executive Director shall

provide a current copy of the MACo Organizational Chart to MACo HCT at any

time it may be amended.


contractors and subcontractors to comply, with all applicable and current


or issued by or on behalf of MACo HCT which may have been communicated to





1.6 MACo shall manage the investments of the assets of HCT in accordance with

investment policies adopted by the trustees of HCT as set forth in Exhibit "B"





costs, travel and other direct and allocated costs for staff providing services on.

behalf of MACo HCT as well as trustee-related direct and allocated costs.

Additionally the fee shall include allocations for reserves for leave liability and

auto reserves.



functions of HCT, as approved by the HCT Trustees, either by approval of the

annual fee amount or other action of the HCT Trustees.


year and shall be based upon a budget adopted annually by the HCT Trustees


2.3 The fee for the period April 1, 2007 through June 30, 2008 shall be based upon


shall not exceed $ dJ /~ 63 ~


unless specifically amended

2.4 MACo HCT shall transfer to MACo payments for fees in monthly installments



HCT, MACo shall receive in addition to the above fees an amount equal to 5%

of the income earned from HCT investments, excluding investments in real or


3. Approval

3.1 MACo shall not commit or purport to commit MACo HCT to any contract,


MACo HCT.


contributions for coverage extended by MACo HCT.



4.1 The initial term of this Agreement shall commence on April 1, 2007 and shall be

renewed annually beginning July 1, 2008 until it is terminated by either party as

provided hereunder.




5.1 MACo agrees that upon termination of this Agreement, it shall immediately

return to MACo HCT without charge all papers, books, records, statistical data

and all other documents or data belonging to the MACo HCT that are related to

the operation of the MACo HCT, whether such documents or data were


6. Other Provisions












of this Agreement shall be and remain the property of the MACo HCT.





6.5 The Trustees of the MACo HCT shall retain the right to approve levels of

staffing to serve the needs of the Trust and to approve staff compensation

through the adoption of an annual operating budget which will be the basis of

the annual fee as set forth in section 2 of this agreement.



6. 7 Any cash, checks, or other instruments received by MA Co or its employees on

behalf of MACo HCT shall be deposited as soon as reasonably practical in a

bank or other depository designated by MACo HCT.




either party unless made in writing and approved by the Trustees of MACo HCT





perform.








6.10 MACo HCT agrees to protect, defend and save MACo, its elected and





resulting from the acts or omissions of MACo HCT and/or its contractors,

employees, representatives, assigns and subcontractors under this agreement.

6.11 MACo agrees to protect, defend and save MACo HCT, its elected and





resulting from the acts or omissions of MACo and/or its contractors, employees,



IN WITNESS OF THE FOREGOING, MACo HCT and MACo have authorized this Agreement


MONTANA ASSOCIATION OF COUNTIES, HEALTH CARE TRUST

Date: ~ .2_ 1 :) )J)d 2

By: ~ :::?::. -~· ,HCTTrustChair


Date: ~ J., 7 J ;J,oo !)

By: ~c ~U · , MACo President


EXHIBIT "A"

MACo shall perform duties consistent with generally accepted performance standards for marketing, risk management, claims administration, member services and other services as may be requested by MACo HGT and set forth in position descriptions for MACo employees providing services to MACo HGT.


• Devise and direct a professional and imaginative promotional and marketing campaign for existing Trust programs designed to attract and retain member counties.

• Devise and coordinate the creation of new insurance plans, as necessary to allow MACoHCT to compete with other group plans being offered in the marketplace.

• Prepare written proposals for potential member counties.


• Provide timely bulletins and alerts to member groups.

• Research and answer inquiries from members and prospective members in a timely manner.

• Act as conduit for communications between the claims administrator, the Trustees and plan members.

• Process participation applications and such other data to enable the Trustees or the insurer to make informed decisions as to the eligibility of applicants. Monitor the eligibility of members to the extent possible, including student verifications.

• Calculate, bill (on a billing schedule to be determined by the Trustees) and collect premium payments from participating employers, and prepare monthly premium and covered employee reports.

• Perform the necessary accounting functions for the Trust, which includes, but are not limited to the following: premium billing and collection, reconciliation of all HGT accounts; development of records, documents and reports desired by the HGT Trustees; timely entry of all transactions in accounting programs; monitoring of account balances and making timely transfers as necessary to and from long term investments as necessary to maintain positive account balances. MACo shall also manage the investments of the Trust in accordance with investment policies as may be determined by the HGT Trustees.



• Attend meetings at which the Trustees request representation by the administrator.





• Assist the Trustees in drafting eligibility rules and rules for the operation of the Trust.

• Assist the Trustees in drafting policies and bylaw amendments for the operation of the Trust as may from time to time be proposed

• Administer underwriting functions as it relates to pricing new business and renewing current subscribers.

• Obtain quotes for specific and aggregate re-insurance for the Trust and prepare monthly re-insurance reports and monthly life and AD&D reports for the insurer.



• Assist the Trust in the preparation of filings as may be required by state or federal regulations and assist member employers in administering COBRA and maintain a COBRA log.

• Prepare as needed reports for the Trustees concerning current developments in the health care industry.

• Prepare and provide information to insurance companies and obtain quotes to place the Trustees' errors and omissions liability insurance.




• Consult with Trust General Counsel in drafting and revising Trust documents, claims and coverage issues, retain counsel to represent the Trust in legal disputes and other legal issues as necessary

• Coordinate with utilization coordination services contractor.



o Participation (enrollment) records.

o Termination records.

o Correspondence.

o Premium billings and calculation information.

o Trust promotional materials.

o Reports to Trustees.

o Documents related to the financial activities of the Trust


EXHIBIT "B"

INVESTMENT POLICY

OBJECTIVE:

The objective of this policy is to protect the interests of members by promoting solvency and financial strength. This purpose will be accomplished through the application of investment standards that facilitate a reasonable balance of the following objectives:



prudent investment management to achieve an adequate return so that obligations to members are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.

POLICY STATEMENT

It shall be the policy of MACo HCT to manage cash and other assets of the Trust in such a manner so as to provide a balance between maximizing the return on investment with a low level of risk and in such a manner as may be required under law for a risk sharing pool.



Investments shall not be made in common or preferred stock unless specifically authorized by the Trustees


Any cash, checks, or other instruments received by MACo the Trust, its employees or contractors shall be deposited as soon as reasonably practical in a bank or other depository designated by MACo HCT.



June21; Joint MACo/JPA/JPIA · 2018-12-30 · MACo recommends that counties include the base in the...

Documents

Transcript of June21; Joint MACo/JPA/JPIA · 2018-12-30 · MACo recommends that counties include the base in the...