HomeMy WebLinkAbout20100920 - VI-07
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Melanie Mesko Lee, Assistant City Administrator
Date: September 14, 2010
Item: Joint Powers Agreement: Health Insurance Cooperative
Council Action Requested:
Approve the attached Joint Powers Agreement with the South Central Service Cooperative for
purchasing health insurance.
Background Information:
Since 1997, the City has been a member of the South Central Service Cooperative for purchasing
health insurance for City employees. The cooperative recently went through a review/rewrite of
it's Joint Powers Agreement; there are no significant changes to the document. The City Attorney
has also reviewed the document and staff recommends approval as presented.
Financial Impact:
None.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
Joint Powers Agreement
JOINT POWERS AGREEMENT
FOR GROUP EMPLOYEE BENEFITS AND OTHER FINANCIAL AND RISK
MANAGEMENT SERVICES
This Joint Powers Agreement, hereinafter referred to as "Agreement," is made between
Participant Member listed on the signature page, and other Participant Members as are now or may
hereafter become parties to this Agreement, and the South Central Service Cooperative
hereinaftercalled the "SC."
RECITALS
Whereas,
Minn. Stat. 471.59, Subds. 1 and 10, authorizes two or more governmental units
to exercise jointly or cooperatively powers which they possess in common, and
Whereas,
Minn. Stat. 123A.21, establishes service cooperatives, 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
Purpose.
1.1Under the provisions of Minnesota law, governmental units may enter into
contracts to provide 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.
Compliance with Applicable Laws.
1.2 It is the parties' intent to comply with the applicable
statutory requirements pertaining to requests for proposals for group insurance, self-insurance,
COBRA 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 nonprofit, non-
governmental units be allowed to participate as Associate Members in the Group Employee Benefits
and Other Financial and Risk Management Services made 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.
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SECTION 2
DEFINITIONS
Advisory Committee(s)
2.1means 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
2.2means 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
2.3means 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).
Board or Joint Powers Governing Board
2.4means 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. 2, and as set forth in this Agreement.
Carrier Contract
2.5means an agreement by and between the Board and a Provider which
establishes terms for the benefits, administration or funding of Group Employee Benefits or Other
Financial and Risk Management Services.
CBA
2.6means collective bargaining agreement.
CBA Employee Benefits
2.7means 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
2.8Benefits 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 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.
Group Contract
2.9shall 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
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benefits, such an agreement may also mean a Participant's agreement to participate in a program of
self-insurance.
Group Employee Benefits
2.10shall mean CBA Employee Benefits and Discretionary
Employee Benefits.
Other Financial and Risk Management Services
2.11 may. include, but shall 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.
Participant
2.12means 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.
Participant Member
2.13means 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).
Pool
2.14means the collective group of Participants in a given program of Group Employee
Benefits or Other Financial and Risk Management Services, as the context shall 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.
Program Funds
2.15means 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.
Provider
2.16means 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.
SC
2.17means the South Central Service Cooperative, a governmental
agency and public corporation, whose existence is authorized by Minn. Stat. 123A.21.
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SECTION 3
JOINT POWERS GOVERNING BOARD
Board Membership.
3.1The 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 Board may designate one
or more representatives to act on its behalf.
Upon Dissolution of SC.
3.2In 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 determined by the Board in its discretion.
Acknowledgment by Associate Members.
3.3Associate Members acknowledge that Minn. Stat.
471.59 does not authorize their participation in a Joint Powers Agreement, even though Minn. Stat.
123A.21, Subd.3, 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 Board is representative of their interests.
SECTION 4
RIGHTS AND RESPONSIBILITIES OF THE BOARD
Authorized Powers.
4.1Pursuant 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, termination 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.
Group Employee Benefits.
4.2
CBA Employee Benefits.
4.2.1The Board may from time to time make employee welfare
and retirement benefits available for adoption by Participants pursuant to a CBA. The Board 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 alternative financing arrangements shall be the responsibility of the
Participant. The Group Contract for the provision of such benefits shall be between the Participant
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and the Provider. Pursuant to Minn. Stat. 471.6161, Subd.5, 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.
Discretionary Employee Benefits.
4.2.2The 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
between 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.
Reserves.
4.2.3 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.
Self-Insurance of Health Benefits.
4.2.4 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 shall 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.
Other Financial and Risk Management Services.
4.3The 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 Risk Management Services and
the service fees and other costs pertaining to the same.
Carrier Contracts.
4.4 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 Carrier Contracts
may establish, among other things:
(a)the terms and conditions for any program,
(b)premium or contribution rates and other costs,
(c)funding arrangements,
(d)administrative arrangements, including the extent to which the SC shall provide
administrative services,
(e)the applicable responsibilities of the Board, and
(f)the amount of service fees payable to the SC.
The Carrier Contract is a proprietary document between the Service Cooperative and the provider.
However, at the request of any Participant, the Board may provide that Participant with any
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information regarding the applicable Carrier Contract that is reasonably necessary for the Participant
to understand its rights and obligations thereunder.
SC Service Fees.
4.5 The SC shall be paid a service fee in consideration for services
rendered pursuant to this Agreement and any Carrier 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 per
contract per month paid by each Participant, 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 fee and the source of its payment, including any part thereof derived
from discounts, refunds, dividends, and 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 service
fees.
Use of SC Service Fees
4.6 . The SC may use service fees to provide programs and services
which are determined pursuant to Minn. Stat. Sec. 123A.21, Subd. 7 to be priority needs of the
particular region and to assist in meeting special needs which arise from fundamental constraints
upon individual members.
Service Providers.
4.7
Selection.
4.7.1The Participants hereby delegate to the Board the right to select the
Providers for Group Employee Benefits and Other Financial and Risk Management Services.
Governmental Unit Bidding and Contracting Laws.
4.7.2As 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 for Group
Employee Benefits and Other Financial and Risk Management Services.
Service Provider Rate Increases.
4.7.3The 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.
Premiums and/or Contract Charges.
4.8To the extent not established by the applicable Carrier
Contract 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 made without the consent of the affected Participants.
Advisory Committee(s).
4.9The 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, insofar as is reasonably
possible, representative of the bargaining representatives of individuals covered in the relevant
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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.
Authority of Board.
4.10The 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 all 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.
Liability Limited.
4.11The 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 (and, therefore, 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).
Withdrawal by Board.
4.12The 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
RIGHTS AND RESPONSIBILITIES OF PARTICIPANTS
Enrollment and Renewal.
5.1Participants 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 or Risk
Management Service, the Participant must execute any applicable Group Contract, Group Contract
amendment, enrollment and renewal documents directly with the Provider.
Participants to Furnish Data.
5.2Each Participant agrees to furnish all reasonably necessary
employee data directly to the SC or its designee.
Remittance of Premiums and Contract Charges.
5.3The Participant shall remit premiums and/or
contract charges in the time and manner as from time to time determined by the Board.
CBA Employee Benefits.
5.4Each 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.
Participant Withdrawal.
5.5
Voluntary Withdrawal.
5.5.1At 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
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(90) days written notice to the Board and to all Providers of programs in which it participates.
Withdrawal Relating to Participant Rate Solicitation.
5.5.2 If a Participant solicits
proposals independently of this agreement within five months prior to the end of the master
agreement, the Board retains the right to deem that the Participant has withdrawn from the
appropriate pool. “Soliciting proposals” shall be defined as requesting and/or accepting written
or verbal proposals of any kind, regardless of how formal or informal.
Withdrawal Relating to Dual Offering.
5.5.3If 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.
Withdrawal at Annual Renewal.
5.5.4If a material change in any 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 five (5) months in advance of the renewal
date.
Effect of Participant Withdrawal.
5.6 Upon a Participant's withdrawal or deemed withdrawal
from this Agreement or from a Pool, the following rules shall apply:
Withdrawal
5.6.1from 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). .
Withdrawal from a Pool.
5.6.2Withdrawal by a Participant from any Pool shall not affect
the Participant's participation in any other Pool.
Program Funds.
5.6.3No 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.
Future Participation Limited.
5.6.4If 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
twelve (12) months from the date of such withdrawal or deemed withdrawal.
SECTION 6
PROGRAM FUNDS ADMINISTRATION
Program Funds.
6.1It is understood and agreed that, in connection with the Group
Employee Benefits and Other Financial and Risk Management Services made available pursuant to
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this Agreement, the Board may acquire Program Funds. The Board 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.
General Rules Regarding Management and Disposition of Program Funds.
6.2
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 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;
(b)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)to establish and accumulate funds 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;
(e)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.
6.3 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.
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Withdrawal of Participant.
6.4In 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.
Termination of Pool.
6.5In 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, shall be distributed to the Pool
Participants in a manner to be determined by the Board, which may include the following:
(a)payment of benefits to or on behalf of enrolled employees with respect to claims
arising prior to such termination;
(b)provision of similar benefits for such employees;
(c)payment of reasonable and necessary expenses incurred in such termination;
(d)payment of taxes; and
(e)cash 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.
Funding of Risk.
6.6Premiums 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 its 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, 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
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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.
SECTION 10
SOLICITATION OF BIDS
Notwithstanding anything in the Joint Powers Agreement to the contrary, the following
amendments and additions, consistent with changes made by the Minnesota State Legislature in
2006, shall become part of the Joint Powers Agreement.
1.All members of Service Cooperative Health Insurance Pools may solicit bids and other
information from competing sources of health coverage at any time other than within the
five months prior to the end of the Carrier Contract.
2.Should a member of the Health Insurance Pool solicit bids pursuant to #1 above, the
Service Cooperative will not impose a fine or other penalty against the member for
soliciting a bid or other information during the allowed period. Should a member leave
the Service Cooperative Health Insurance Pool and obtain health insurance coverage
elsewhere, the Service Cooperative may prohibit member from participating in Service
Cooperative coverage for a period of up to one year.
3.The Service Cooperative shall provide each member with that entity’s monthly claims
data notwithstanding the provisions of Minn. Stat. 13.203.
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Pursuant to all applicable state and federal laws, this Agreement has been approved by the
governing boards of the parties and is signed by the duly authorized officers of the parties.
PARTICIPANT MEMBER
Name of Organization_______________________________________________________
By_____________________________________________________________________
Title____________________________________________________________________
Date____________________________
SERVICE COOPERATIVE
Name of Organization South Central Service Cooperative
By Les Martisko
Title Executive Director
Date May 15, 2010
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