HomeMy Public PortalAboutRES-CC-2007-12RESOLUTION #12-2007
A RESOLUTION APPROVING AND ENTERING INTO AN AMENDED AND
RESTATED AGREEMENT CREATING THE UTAH LOCAL GOVERNMENTS TRUST.
WHEREAS, the City of Moab and other Utah cities, towns, counties, and other
governmental entities created and established a political subdivisions and entity known as the
Utah Local Governments Trust; and
WHEREAS, the City of Moab desired to participate in creating and establishing an entity
to provide assistance, advice. counsel, and casualty, property and liability insurance, and benefits
related to the purposes of the Utah Local Governments Trust.
NOW THEREFORE, the attached Interlocal Agreement Amending and Restating the
Interlocal Agreement creating Utah Local Governments Trust is hereby entered into, approved,
ratified, accepted, and made effective this 26th day of June, 2007
DATED this 26TH day of June 2007.
SIE
G
David L. Salcrison
Mayor
APST:
a -La --al 4,-e.-v-N
Rachel Ellison
City Recorder
1 AL
Resolution#12-2007 6-5
AMENDED AND RESTATED INTERLOCAL AGREEMENT CREATING THE
UTAH LOCAL GOVERNMENTS TRUST
ARTICLE I
NAME
1.1. The name of the governmental entity created pursuant to this Interlocal
Agreement is the Utah Local Governments Trust (hereinafter "the Trust").
ARTICLE II
PURPOSES
2.1. The purposes of this Agreement and the entity created pursuant thereto are:
2.1.1. PERSONAL BENEFITS. To enable Utah cities, towns, counties, and other
special districts of local governments to form a governmental entity to provide a comprehensive
and complete program of hospital, medical, dental, disability, life, and other personal benefit
plans and programs for units of local governments within the State of Utah.
2.1.2. CASUALTY -PROPERTY. To enable units of local governments to provide a
comprehensive and complete program of casualty, property, marine, liability, and other
insurance plans or programs required or desirable to protect local governments' property and
assets and elected and appointed officials and employees from personal liability.
2.1.3. FUNDS. To create funds from revenues, premiums, and monies which funds
shall at all times belong to the participating units of local governments to pay claims of the local
units of government according to any plan, program, or contract between the Trust and the
participating unit of local government or to purchase the insurance requested by the participating
unit of local government.
2.1.4. GENERAL POWERS. To administer, insure, reinsure, fund or self fund,
indemnify, or perform any other act necessary to provide or administer any plan or program
necessary or desirable to give effect to this Agreement.
2.1.5. SINGLE ENTITY. To enable local governments to act as a single entity to
provide personal, casualty, property, marine, liability, or other insurance to participating units of
local government.
2.1.6. ADVISOR TO LOCAL GOVERNMENTS. To act as an advisor and counsel
to units of local government regarding their insurance needs, obligations, risks, and benefit plans.
2.2. TRUST NOT REQUIRED TO PROVIDE COVERAGES. Nothing in this
Agreement shall require the Trust to offer or provide any or all of the plans or programs
authorized by this Agreement.
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2.3. AUTHORITY. The Trust hereby is granted and authorized to perform and do
all acts necessary or convenient and to render all services contemplated and engage in such
governmental and proprietary functions, as are authorized or contemplated by Sections 11-13-
101 et seq., 10-3-1103, and 63-30d-801 et seq., Utah Code Annotated 1953, to carry out the
purposes and intent of this Agreement.
ARTICLE III
DEFINITIONS
3.1. As used in this Interlocal Cooperation Agreement:
3.1.1. LOCAL GOVERNMENTS. "Local governments" means public agency as
used in the Interlocal Cooperation Act and includes any county, city, town, special district, or
combination thereof; it specifically includes any agency or entity created pursuant to the Utah
Interlocal Cooperation Act, Section 11-13-101 et seq., Utah Code Annotated 1953, as amended.
3.1.2. PROPERTY INSURANCE. The definition of "property insurance" set forth
in Section 31A-1-301, Utah Code Annotated 1953, is hereby incorporated by reference.
3.1.3. BOND. "Bond" means a faithful performance bond or indemnification bond
or any other bond required by any Utah law.
3.1.4. INLAND MARINE . The definition of "inland marine insurance set forth in
Section 31A-1-301, Utah Code Annotated 1953, is hereby incorporated by reference.
3.1.5. WORKERS' COMPENSATION. "Workers' compensation" means any form
of workers' compensation permitted or required by the laws of the State of Utah or the laws of
the United States.
3.1.6. UNEMPLOYMENT COMPENSATION. "Unemployment compensation"
means any form of unemployment compensation permitted or required by the laws of the State
of Utah or the laws of the United States.
3.1.7. VEHICLE LIABILITY INSURANCE. The definition of "vehicle liability
insurance set forth in Section 31A-1-301, Utah Code Annotated 1953, is hereby incorporated by
reference.
3.1.8. SURETY INSURANCE. The definition of "surety insurance" set forth in
Section 31A-1-301, Utah Code Annotated 1953 is hereby incorporated by reference.
3.1.9. ADMINISTRATIVE BOARD. "Administrative board" means the
administering body created by this Agreement to operate and administer the Trust and the
insurance programs offered by the Trust.
3.1.10. MEMBER. "Member" means any city, county, town, or other unit of local
government that participates in one or more plans or programs offered by the Trust. A unit of
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local government need not have executed this Interlocal Agreement or Resolution to be a
member. Any unit of local government that stops participating in the plans or programs offered
by the Trust, shall not be a member.
3.1.11. CASUALTY INSURANCE. The definition of " casualty insurance (liability
insurance) set forth in Section 31A-1-301, Utah Code Annotated 1953, is hereby incorporated by
reference.
3.1.12. UNIT OF LOCAL GOVERNMENT. "Unit of local government'.' means any
city, county, town, special district, or any other entity which is a political subdivision of the
State of Utah.
3.1.13. PERSONAL INSURANCE OR PERSONAL BENEFITS. "Personal
insurance or "personal benefits" means life, disability, hospital, medical and dental insurance or
benefits, unemployment or workers' compensation.
3.1.14. PERSON. "Person" means any individual, company, partnership,
corporation, municipal corporation, or any business entity.
3.1.15 INSURANCE. "Insurance" means casualty liability and personal insurance.
ARTICLE IV
DURATION
4.1. EXTENSION. This Agreement shall be for a period of 50 years, but may be
extended by the members.
4.2. WITHDRAWAL. Nothing in this Article shall prevent any local government
from withdrawing from the Trust.
4.3. TERMINATION IF VOID. This Agreement shall terminate if it is found to
exist entirely in violation of the law.
ARTICLE V
TRUST FUNDS
5.1. FUNDS PROPERTY OF UNITS OF GOVERNMENTS. All premiums,
payments, and funds received, held, or administered by the Trust as herein provided shall be and
remain the property and assets of the units of local government which create or participate in the
Trust program or programs according to the terms of this Agreement, except that the funds of the
Trust shall become the property of the person to whom the funds are paid when paid according to
this Agreement, benefit or insurance plans, and programs authorized by the administrative board.
5.2. INTERNAL REVENUE CODE COMPLIANCE. In accordance with Section
115 of the Internal Revenue Code of 1954, as amended, any income derived from the
investments or operations of the Trust shall accrue to the units of local government participating
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in the Trust. None of the assets, property, funds, or revenues held by the Trust shall ever be
deemed to or become the property of the Trust.
5.3. UNRESTRICTED RIGHT TO PROPORTIONATE SHARE OF INCOME.
Each unit of local government participating in the Trust shall have the unrestricted right to
withdraw its proportionate share (as defined in Section 12.3.) of the income derived from the
investments or operations of the Trust. However, to the extent the income so derived is needed
to provide reserves for potential claims against programs that the Trust has elected to reinsure or
self -insure (under authority of Article VI), participating units. of local governments agree to defer
the withdrawal of that portion of the income so needed until such time as the administrative
board determines using actuarially sound insurance accounting principles that such withdrawal
will not jeopardize the financial stability of Trust programs.
5.4. FUNDS TO BE USED TO PURCHASE OR PROVIDE COVERAGE. The
local governments hereby authorize and direct the administrative board to do all things necessary
and proper and to use the payments or contributions received by the Trust to purchase and
maintain in force such policy or policies of insurance as they in their sole discretion shall
determine to be in the best interest of the members and the employees of the members; or on an
actuarially sound basis, to use such funds to establish a program or programs of self-insurance,
reinsurance, or co-insurance.
ARTICLE VI
MANAGEMENT AND ALLOCATION OF FUNDS,
PURCHASE OF INSURANCE, BONDS, REINSURANCE, SELF -FUNDING
6.1. LICENSED CARRIER REQUIRED. If casualty insurance or personal
insurance policies are purchased, it shall be from a licensed insurance carrier. Policies may be
purchased for one or more of the casualty insurance or personal insurance programs offered by
the Trust from one or several carriers; or the Trust may reinsure or self -insure one or more of the
programs and purchase the casualty insurance or personal insurance from a carrier for the
remaining programs. Where the Trust purchases insurance or personal insurance from a carrier,
the Trust shall be the policyholder. The amount of casualty insurance, personal insurance, and
benefits shall be such as the administrative board may determine subject to securing a policy or
policies from one or more carriers or bond companies able to provide the benefits from the
premium paid.
6.2. TRUST TO ACT AS POLICYHOLDER. The administrative board may
apply for such insurance policies or group insurance or personal insurance or group personal
insurance in its name as policyholder or in the names of the participating members and may use
the fund to pay for and accept and hold as part of the fund the policy or policies insured to the
Trust in its name as policyholder.
6.3. TERMS OF POLICY. The administrative board may agree with an insurer of
any policy or policies issued for the purposes of this Agreement on waiting period, definitions of
full-time employment and all other necessary or desirable provisions, including the eligibility of
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employees; or, in the case of self-insurance, the local government and administrative board may
provide specifically such terms and conditions.
6.4. SEPARATE ACCOUNT REQUIRED. The Trust Board shall create separate
funds and accounts for each of the following:
A. Hospital, medical, and dental;
B. Disability;
C. Life (except where part of the hospital and medical plan) whether or not
dental is included;
D. Fidelity and fiduciary;
E. Casualty, marine, property, and liability.
The assets of each fund shall not be co -mingled with those of another fund,
nor shall it be subject to attachment, claims, or payment of damages in any other fund. Where a
participating unit of local government elects to participate in Groups A, B, and C, or any
combination of these groups, the Trust may treat the account as participating in the fund for
which a majority of the premium is paid. One fund may make loans to another.
6.5. FUND MANAGEMENT. With respect to each fund, the administrative board
shall use and apply each fund:
6.5.1. GENERAL ADMINISTRATION. To pay or provide for the payment of all
reasonable and necessary expenses of collecting the local governments' contributions and
administering the affairs of each fund, including, but without limitation, all expenses which may
be incurred in connection with each fund, the employment of such administrative, legal, expert,
and clerical assistance, the leasing of such premises and the purchase or lease of such materials,
supplies, and equipment as the administrative board, in its discretion, finds necessary or
appropriate in the performance of its duties.
6.5.2. PAYMENT OF PREMIUMS. To pay or provide for the payment of
premiums due from local governments on the policy or policies, when such premiums shall
become due; but the administrative board shall not use the fund to maintain in force any
insurance for the account of any local government that is in default of payment of contributions
to the fund.
6.5.3. RESERVES. To establish and accumulate as part of the fund an adequate
reserve which the administrative board shall deem advisable to carry out the purposes of this
Agreement.
6.5.4. REFUNDS. To refund premiums, payments, or contributions from local
governments for which insurance may not be purchased for any reason, but if a unit of local
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government withdraws from the Trust for any reason, the Trust shall be under no obligation to
refund any premium, payment, or contribution of the local government if insurance has been
purchased for the local government.
6.6. GENERAL OPERATING ACCOUNT. The administrative board may
establish a general operating account or fund and may transfer to that account or fund a specified
percentage of revenues received in each separate fund for the purpose of establishing a general
operating fund or account to administer the general provision of the Agreement.
6.7. DEPOSITORIES -INVESTMENTS. All premiums, contributions, and monies
received by the Trust hereunder as part of the fund or funds shall be deposited by it in such bank
or banks as the administrative board may designate for that purpose, and all withdrawals of
monies from such bank or banks shall be made only by check signed by a person or persons
authorized by the administrative board to sign and countersign but no bank shall be elected as a
depository of the funds of the Trust that is not a member of the Federal Deposit Insurance
Corporation or is not supervised and insured by an instrumentality of the United States
Government.
6.8. BOND REQUIRED. All officers and employees of the Trust who are
authorized to sign or countersign checks or who otherwise may handle monies or other property
of the Trust shall be bonded.
6.9. DIVIDENDS, EXPERIENCE RATING. Anything contained in this
Agreement to the contrary notwithstanding, the administrative board may agree with the insurer
or insurers for the combination of financial experiences, for dividend purposes, of policies issued
to the administrative board pursuant to this Agreement and of policies not so issued with insured
employees of local governments that are insured under this Agreement. The administrative
board may agree with the insurers and to provide for a centralized administration of all policies
or may administer the programs themselves in any manner deemed advisable by the
administrative board.
ARTICLE VII
LOCAL GOVERNMENT CONTRIBUTIONS
TO THE TRUST
7.1. PERSONAL INSURANCE OR BENEFITS. On application and acceptance
by the administrative board or the Executive Director, each local government shall pay to the
Trust a sum determined by the administrative board to participate in any personal insurance or
self -funded benefit program offered by the Trust. Each local government shall pay to the Trust
on such day of each month as determined by the administrative board for all the local
governments, such member's contributions for personal insurance when and as the
administrative board shall deem necessary to pay the premium due, together with that member's
fair share of expenses on account of the personal insurance purchased for such local governments
but all local government payments shall be credited against premiums and shares of expenses
due from local governments.
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7.2. CASUALTY AND LIABILITY INSURANCE. On application and
acceptance by the administrative board or the Executive Director, each local government shall
pay to the Trust a sum determined by the administrative board to participate in any casualty or
liability insurance or self -funded casualty or liability program offered by the Trust. Each local
government shall pay to the Trust on such day of each month as determined by the administrative
board for the local governments, such member's contributions for insurance when and as the
administrative board shall deem necessary to pay the premium due, together with that member's
fair share of expenses on account of the insurance purchased for such local governments but all
local government payments shall be credited against premiums and shares of expenses due from
local governments.
ARTICLE VIII
PARTICIPATION OF LOCAL GOVERNMENTS
IN THE ASSOCIATION
8.1. PERSONAL INSURANCE. The employees of a unit of local government
that make application to the administrative board shall, on approval of the application and
payment of the premium established by the administrative board, become insured by the Trust
under the policy or policies of the Trust and shall participate in the Trust for such personal
insurance, provided the employee satisfies the requirements for participation in such personal
insurance as may be established by the personal insurance carrier or carriers of the policy or
policies under which such insurance is offered; or, under such requirements as the administrative
board may establish for participation in any self -funded personal benefit plan or program. A
local government's participation in the Trust personal insurance program shall commence on the
date set by the Board. The personal insurance carrier of the policy or policies, if any, shall at all
times be kept informed by the administrative board of the local governments that participate in
the Trust personal insurance, as well as the names of their employees. A local government may
participate in the personal insurance program on approval of the application and payment of the
premium. The local government need not execute this Agreement to participate, but must
subscribe to the personal insurance or benefits to be provided pursuant to this Agreement by
resolution, ordinance, or contract.
8.2. CASUALTY AND LIABILITY INSURANCE. A unit of local government
that makes application to the administrative board shall, on approval of the application and
payment of the premium established by the administrative board, become insured by the Trust
under the policy or policies of the Trust and shall participate in the Trust for such insurance,
provided the unit of local government satisfies the requirements for participation in such casualty
insurance as may be established by the insurance carrier or carriers of the policy of policies
under which such insurance is offered; or, under such requirements as the administrative board
may establish for participation in any self -funded casualty program. A local government's
participation in the Trust insurance program shall commence on the date set by the
administrative board. The insurance carrier of the policy or policies, if any, shall at all times be
kept informed by the administrative board of the local governments that participate in the Trust
insurance. A local government may participate in the casualty or liability insurance program on
approval of the application and payment of the premium. The local government need not
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execute this Agreement to participate, but must subscribe to the insurance or benefits to be
provided pursuant to this Agreement by resolution, ordinance, or contract.
8.3. TERMINATION OF QUALIFICATIONS. A local government shall cease to
qualify for participation in the Trust for any insurance or benefit plan when it fails to make its
contribution as provided in Article VII for the insurance on the date when due or within the
period of time allowed by the administrative board for the payment thereof; or if a local
government shall cease to qualify under or by reason of any state or federal law; or when the
local government fails to comply with the rules and regulations made by the administrative board
from time to time with respect to the administration of the insurance Trust fund or funds;
including, but without limiting the generality of the foregoing, the method and accuracy of local
government's reports, the effective date of insurance of its employees, the discontinuance of
insurance of its employees, premiums due, or any and all other facts which the administrative
board deems advisable to assure a sound administration of the insurance programs offered by the
Trust.
8.4. TERMINATION OF PARTICIPATION. When in accordance with the
provisions of this Article VIII, a local government ceases to qualify for participation in the Trust
for the insurance provided under the policy or policies, the administrative board shall, if insured
by a carrier, forthwith give notice thereof to the insurance carrier of the policy or policies under
which such insurance is provided, and such policy or policies and participation of the local
government in the Trust shall terminate to such extent and at such time as the insurance
terminates. In such event the Trust shall have no further liability to local government or its
employees whose participation and insurance have terminated.
ARTICLE IX
RETURN OF MONIES RECEIVED FROM PERSONS
NOT QUALIFYING AS A LOCAL GOVERNMENT AS
DEFINED IN THIS AGREEMENT
9.1. Should any monies be received by the Trust for the purpose specified in
Article II of this Agreement from any local government failing to satisfy the requirements for
participation in the Trust, or from any local government whose employees do not become
insured under the policy or policies, such monies shall be returned, and there shall be no further
obligations whatsoever in connection therewith.
ARTICLE X
ADMINISTRATION OF THE TRUST
10.1. ADMINISTRATIVE BOARD. The Trust shall be governed and administered
by an administrative board composed of at least seven officials representing participating
Members. The administrative board may from time to time, on a two-thirds vote of the
administrative board, increase the number of members on the administrative board without
amending this Agreement, but the number shall not exceed 15.
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10.1.1. CITIES AND TOWNS. Up to four members of the administrative board shall
be elected officials from participating cities and towns unless the number of participating cities
and towns is less than four, in which case the minimum number of elected officials from cities
and towns on the administrative board shall be reduced to the number of participating cities and
towns. The terms of the municipal administrative board members shall be four years, but the
terms shall be staggered so that one position is filled each year. If a municipal member of the
administrative board ceases to be an elected official, the remaining municipal members shall
appoint a person to serve until the next election. At the next election a municipal elected official
shall be elected to fill the remainder of the term.
10.1.2. COUNTIES. Up to three members of the administrative board shall be
elected officials from participating counties unless the number of participating counties is less
than three, in which case the minimum number of elected officials from counties on the
administrative board shall be reduced to the number of participating counties. The terms of the
county administrative board members shall be four years, but the terms shall be staggered so that
one position is filled each year. If a county member of the administrative board ceases to be an
elected official, the remaining county members shall appoint a person to serve until the next
election. At the next election a county elected official shall be elected to fill the remainder of the
term.
10.1.3. SPECIAL DISTRICTS. Up to three members of the administrative board
shall be elected or appointed officials from participating special districts unless the number of
participating special district is less than three, in which case the minimum number of officials
from special districts on the administrative board shall be reduced to the number of participating
special districts. The terms of the special district administrative board members shall be four
years, but the terms shall be staggered so that one position is filled each year. If a special district
member of the administrative board ceases to be an official of a district, the remaining special
district members shall appoint a person to serve until the next election. At the next election a
special district elected or appointed official shall be elected to fill the remainder of the term.
10.1.4 APPOINTED OFFICIALS. The elected officials of the administrative board
may appoint additional members to serve on the board, but the number of appointed board
members shall not exceed one third of the total board membership. Any vacancy in the
appointed member positions shall be filled by the remaining board members. Terms may be
staggered as the board deems appropriate.
10.2. RESIGNATION. A member of the administrative board may resign and
become and remain fully discharged from all further duty or responsibility hereunder upon
giving 30 days notice in writing to the remaining members, or such shorter notice as the
remaining members may accept as sufficient, in which notice there shall be stated a date and
such resignation shall take effect on the date specified in the notice, unless a successor member
shall effect immediately upon the appointment of such successor member.
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ARTICLE XI
POWERS OF ADMINISTRATIVE BOARD
11.1. AS POLICYHOLDER. The administrative board may exercise all rights or
privileges granted to it as policyholder by provisions of each policy or allowed by the insurance
carrier of such policy, and may agree with such insurance carrier to any alteration, modification,
or amendment of such policy, and may take any action respecting such policy or the insurance
provided thereunder which may be necessary or advisable, and such insurance carrier shall not
be required to inquire into the authority of the administrative board with regard to any dealings in
connection with such policy.
11.2. CONSTRUE THIS AGREEMENT. The administrative board shall have
power to construe the provisions of this Agreement and the terms used herein, and any
reasonable construction adopted by the administrative board in good faith shall be binding upon
the local governments and employees.
11.3. LIABILITY OF MEMBER. Notwithstanding anything contained herein to
the contrary, each local government shall be liable to The Utah Local Governments Trust for the
premium for its insurance and the insurance of its employees under the policy or policies for any
period during which such insurance is in force and the administrative board shall enforce such
liability for such premiums to the extent necessary to pay premiums due under any such policy or
policies. In the event any such policy or policies are terminated and premium due thereunder is
not paid by the administrative board to the insurance carrier issuing the policy or to the Trust on
the date the premium is due thereunder, such insurance carrier, if it shall so elect, shall
immediately be subrogated to the right of the Trust to enforce the liability of any local
government under this Agreement and may apply any sums collected first toward its expense of
suit including costs and counsel fees and then toward the discharge of the premium obligation
under the policy or policies. Any such election by the insurer may be exercised at any time and
shall not constitute a waiver of its right to collect any deficiencies in premium from the Trust.
11.4. ADMINISTRATIVE BOARD - GENERAL MANAGEMENT MEETINGS.
The administrative board shall have the general management, control, and direction of all the
business activities and affairs of the Trust, with full power to transact all its business, including
the making of deposits in and disbursements from the funds. The administrative board shall
meet at least bi-annually.
11.5. COMPENSATION. The members of the administrative board shall receive
compensation for their duties and shall be reimbursed for all reasonable and necessary expenses
which they may incur in the performance of their duties. Provision may be made to compensate
one or more members of the administrative board for special executive or administrative services
performed in connection with the direction, administration, or operation of the Trust.
11.6. RULES AND REGULATIONS. The administrative board may promulgate
such rules and regulations as may, in its discretion, be proper or necessary for the sound and
efficient administration of the Trust; but such rules shall not take effect until a copy or copies
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thereof have been mailed to the carrier of such policy or policies which may be affected by such
rules and regulations.
11.7. GENERAL ADMINISTRATION. The administrative board may delegate its
administrative and ministerial powers and duties to an Executive Director. The Trust may
employ such persons as it deems necessary on such terms and conditions as the administrative
board shall deem appropriate.
11.8. RECORDS - AUDITS - REPORTS. The Trust shall keep true and accurate
books of account and records of all its transactions, which shall be audited annually or more
often by a public accountant and furnish to participating local governments from time to time
reports respecting the status of the Trust and the status of each fund and the status of the bond,
policy or policies, and the benefits paid thereunder, but the administrative board shall not be
required to furnish such reports more often than annually.
11.9. MEETINGS. Any action by the administrative board pursuant to this
Agreement may be taken either at a meeting, a meeting at which all or several members
participate by electronic means, or in writing without a meeting. A meeting may be called at any
time by the chairman or any two members, giving at least five days written notice to the other
members. Notice of any meeting may be dispensed with if all the members in writing waive the
notice. Notice shall be deemed waived by any member that appears at a meeting, unless such
appearance is solely for the purpose of objecting to the failure to give the notice required by this
section.
11.10. MAJORITY REQUIRED. Any action taken by the administrative board
pursuant to this Agreement, except as otherwise provided, shall be by at least a majority of a
quorum of the members. A quorum is a majority of the total number of the members of the
administrative board.
11.11. NO LIABILITY OF BOARD. The administrative board shall not have any
liability with respect to the nonpayment of local government contributions. All suits and
proceedings to enforce or protect any other right, demand, or claim on behalf of the
administrative board or Trust, may be instituted and prosecuted on behalf of the Trust and the
administrative board.
11.12. NO LIABILITY - EXCEPTIONS. The members of the administrative board
personally and individually, whether severally or jointly, shall not be liable in any matter or
transaction or for any omission relating to the conduct of the business of the Trust nor their
respective activities and performance of their duties with respect thereto. No member shall be
liable for errors in judgment of himself or of the other members nor for any act, judgment, or
exercise of discretion of the administrative board's agents or employees, in the conduct of the
Trust and each shall be liable only for his own willful misconduct or wrongdoing in respect
thereto.
11.13. FULL FAITH AND CREDIT. The administrative board shall honor and be
bound by all agreements made by their predecessors, successors, assigns, or assignors.
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ARTICLE XII
TERMINATION -DISTRIBUTION OF ASSETS
12.1. PROCEDURE. This Agreement may be terminated:
12.1.1. BY MEMBERS. On a two-thirds majority vote of all members at a meeting
called for that purpose after written notice of such meeting stating the time, purpose, and place of
the meeting is given to all members at least 30 days prior to this meeting.
12.1.2. BY ADMINISTRATIVE BOARD. By a two-thirds majority vote of all of the
members of the administrative board at a meeting called for that purpose after written notice of
such meeting stating the time, purpose, and place of the meeting is given to all members of the
board and of the Trust at least 30 days prior to the meeting. The Trust board may not terminate
this Agreement if more than 25 percent of the members appear at the meeting to object to
terminating this Agreement.
12.2. PAYMENT OF OBLIGATIONS. On termination of this Agreement, the
entity and administrative board shall continue in existence for the purpose of winding down the
affairs of the Trust. The Trust shall make provision, so far as reasonably possible, for the orderly
transfer of all policies held in the name of the Trust and to protect members and their employees.
The Trust shall, to the extent it has revenues, pay all obligations of the Trust from each fund for
which the fund is obligated.
12.3. DISTRIBUTION OF ASSETS. After paying or making provision for paying
all claims, whether reported or unreported, the Trust shall pay to the member participants,
including those that may have ceased to be members, their proportionate share of the assets from
each fund according to the member's ratio ofcontribution to the fund to the total contribution of
all members divided by the unencumbered assets of the fund. Notwithstanding the foregoing, the
decision of the Trust board as to the distribution of the assets of the Trust within each fund to
participating members and former members shall be final and binding unless the distribution is
arbitrary, unreasonable, and capricious under the construction given by the administrative board.
ARTICLE XIII
AMENDMENTS
13.1. BY MEMBER. The members of the Trust may amend the provisions of this
Agreement except Sections 5.1., 5.3 12.3., and 13.5. on a two-thirds vote of those attending any
meeting called for that purpose by at least ten members or by the administrative board, on giving
at least 30 days written notice of the time, purpose, and place of the meeting. The written notice
must include the specific language of the proposed amendment.
13.2. BY BOARD. The administrative board may amend the provisions of the
Agreement, except Sections 5.1., 5.3 12.3., and 13.5. by a two-thirds vote, at any meeting called
for that purpose if at least 30 days written notice of the time, purpose, and place of the meeting is
provided to all members and members of the board. The written notice must include the specific
language of the proposed amendment and advise the members about their right to object to the
3/06 12
proposed amendment and the method by which such right may be exercised. The amendment
shall not be effective if more than 50 percent of the members appear personally or provide
written objection to the proposed amendment prior to the time of the meeting.
13.3. RESTRICTIONS ON RIGHT TO AMEND. Sections 5.1. 5.3., 12.3., and
13.5. shall not be amended except with the unanimous concurrence of all members and local
governments entitled to the funds of or refunds or payments from the Trust.
13.4. NOTICE OF AMENDMENT. After an amendment has been approved by the
members or Trust board, notice shall be given to all members of the amendment together with a
statement of the effective date of the amendment which shall be at least 30 days after the date of
the meeting at which the amendment was approved.
13.5. MEMBERS SUBJECT TO CONTINGENT ASSESSMENT. (Reserved.)
13.6. CONSENT REQUIRED FOR OTHER ASSESSMENT. (Reserved.)
ARTICLE XIV
MISCELLANEOUS PROVISIONS
14.1. RECORDS OF LOCAL GOVERNMENT TO BE FURNISHED. Local
governments shall furnish to the administrative board such records and any other information as
the administrative board or the insurance carrier of the policy or policies may require in
connection with the administration of the Trust. The insurance carrier shall have the right to
audit all records of the Trust or local governments pertaining to the insurance provided by the
carrier.
14.2. THIRD PARTY CLAIMS AGAINST TRUST FUNDS. Unless otherwise
specifically provided in a written agreement between a unit of local government and the Trust,
no local government nor any other person claiming by or through such employee by reason of
having been named a beneficiary in a certificate or otherwise, shall have any claim against the
monies or properties of the Trust, and the interests of such employees, beneficiaries, and other
persons claiming through them shall be limited to those specified in the policy or policies.
14.3 SPECIAL PROVISIONS RELATING TO WORKERS' COMPENSATION
COVERAGE. For each member that chooses to participate in the Workers' Compensation
insurance program through the Trust, the Trust shall pay any workers' compensation liabilities
incurred during the period of participation and membership. The member's bankruptcy
insolvency or withdrawal from the Trust shall not relieve the Trust of such workers'
compensation liability, nor shall bankruptcy, insolvency or cessation of the Trust relieve the
member of its ultimate liability to pay the worker's compensation claims of the member's
employees.
14.4. SUPERSEDES PRIOR AGREEMENT. This Agreement supersedes and
replaces all previous Interlocal Agreements creating or establishing the Utah Local Governments
Trust.
3/06 13
DATED as of and made effective
UTAH LOCAL GOVERNMENTS TRUST
Executive Director of Utah Local Governments Trust
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March 7, 2007
Moab City
217 E Center
Moab, 84532
Dear Trust Member:
As you know, the Utah Local Governments Trust is organized as an Interlocal Cooperative Agency
under the Utah Code 11-13-101 et seq. Most of you have previously adopted and signed the Interlocal
Agreement that creates and governs the Trust. From time to time, it has been necessary to amend the
agreement to both update it to conform to current law, and to comply with the requirements of those that
regulate the Trust. Last year we sent out the amended agreement, however we did not receive a signed
copy or signature page in return. Please return the agreement or the signature page as soon as possible.
The recent change in how the Trust provides workers compensation coverage to participating members
has required us to add a new section to the Interlocal Agreement. In addition, the Trust's Board of
Directors has recommended that the provisions regarding Board membership be amended to reflect the
changes in Trust membership. Enclosed with this letter is the Trust Board's proposed and recommended
Amended and Restated Interlocal Cooperative Agreement.
One substantive change from the previous agreement is the addition of paragraph 14.3 of Article XIV.
This is a provision specific to the workers compensation coverage that has been required by the State of
Utah as a condition of the Trust providing that coverage.
The other substantive change is found in Article X of the agreement which has previously provided that a
minimum of four members of the board be elected officials from cities and towns; that three members of
the Board be elected officials from counties; and that three members of the board be from special service
districts. The Trust now has less counties participating as members than it used to. The new proposed
provision removes the requirement of a minimum number of board members from each entity.
We are asking you to formally adopt this new Agreement as soon as possible. Adoption will require you
to have an attorney review it as to form and compliance with law. You must also have your governing
body approve the resolution authorizing the agreement at an open and public meeting. After it is adopted
please keep the original signed copy filed with your official records and send to the Trust a copy of the
approved and signed resolution along with a copy of the resolution as adopted (a self-addressed envelope
is enclosed for your convenience). The Trust will return to you, for your records, a signed signature page
with the Trust's signature.
A model resolution for adoption has been included with this Agreement for your convenience. You may.
however, use your own form of resolution if you desire. If you have any questions or concerns regarding
the Agreement or the Resolution, please contact our Attorney, David L. Church, at (801)261-3407, or
me, Steve Flitton, Executive Director of the Utah Local Governments Trust, at (801)936-6400.
Sincerely,
J. Stephen Flitton
President 1 Executive Director
55 SOUTH HIGHWAY 89 • P.O. BOX 540610 • NORTH SALT LAKE, UTAH 84054
OFFICE (801) 936-6400 • UTAH WATS (800) 748-4440 • FAx (801) 936-0300
www.ulgt.org