HomeMy Public PortalAbout2002-040 Resolution Relating to Local Gov. Information Systems; Authorizing Execution & Delivery of 2nd Amendment to Joint Coop. AgreementMember CarolynSmith introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO.02-40
RESOLUTION RELATING TO LOCAL GOVERNMENT INFORMATION SYSTEMS;
AUTHJORIZING THE EXECUTION AND DELIVERY OF SECOND AMENDMENT
TO THE JOINT AND COOPERATIVE AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MEDINA as follows:
Section 1. Background; findings.
1.01. The City is a party to the joint and cooperative agreement (Agreement) establishing
an organization known as Local Government Information System (LOGIS). The Agreement is
originally dated May 1, 1972, and has been amended by Amendment No. 1, adopted May 3,
1993.
1.02. In 1988, LOGIS established the LOGIS Health Care Group (Plan) to enable
members of LOGIS to participate in a program of cooperatively providing group health, life,
accident and other insurance personnel benefits for the officers and employees of the members of
the Plan and LOGIS itself. LOGIS has continuously operated and administered the Plan since its
inception.
1.03. The Board of Directors of LOGIS has been advised by legal counsel that it is
necessary and desirable that the Agreement be amended to clearly authorize the Plan and the
participation in the Plan by members of LOGIS.
1.04. There has been presented to this Council a form of Amendment No. 2 to the
Agreement (Amendment). The Amendment is on file with City Clerk, and is attached as Exhibit
A.
1.05. It is found and determined that it is in the best interests of the City that the
Agreement be amended as proposed in the Amendment.
Section 2. Approval and Authorization: Ratification.
2.01. The form of the Amendment is approved.
2.02. The City Clerk is authorized and directed to deliver the Amendment in the manner
provided for in the Agreement.
2.03. All actions, if any, of the City, the City Council, and the officers and employees of
the City in participating in the Plan, are ratified and confirmed.
02-40
June 18, 2002
Dated: June 18, 2002
ATTEST:
Laura L. Sulander, Acting Clerk -Treasurer
r
t) 7
Philip K. ietlow, M yor
The motion for the adoption of the foregoing resolution was duly seconded by member
Bruce Workman and upon vote being taken thereon, the following voted in favor thereof:
Zietlow, Lane, Workman, Supel and Smith.
and the following voted against same: None.
Whereupon said resolution was declared duly passed and adopted.
2
02-40
June 18, 2002
EXHIBIT A
SECOND AMENDMENT TO THE
JOINT AND COOPERATIVE AGREEMENT
LOCAL GOVERNMENT INFORMATION SYSTEMS,
Originally Dated May 1, 1972,
As amended By Amendment No. 1, Adopted May 3,1993
Section 1. Article I, General Purpose, of the Joint and Cooperative Agreement, Local
Government Information Systems, as amended, (Agreement) is amended to read as follows:
I. GENERAL PURPOSE
The general purpose of this agreement is to provide for an organization through which the
parties may jointly and cooperatively provide for fi) the establishment, operation and maintenance
of data processing facilities and management information systems for the use and benefit of the
parties and others and (ii) group health, life, accident, and other insurance and personnel benefits for
the officers and employees of the parties and the organization.
Sec. 2. The terms of this amendment are effective as of April 1, 2002. This amendment is
effective on the date of its execution and delivery by all of the members of the organization in
accordance with the Agreement.
DJK-209993v1
LGI00-16
A-1
DJK Draft 2/ 18/02
MFG Revised 3/27/02
Proposed New By Law
LOGIS
6.15. Health Care Group members means those members who choose to provide group
health, medical and personnel benefits to their officers and employees under the LOGIS Health
Care Group Plan (Plan). A participating, coordinating associate, operations associate, or franchise
associate member may become a Health Care Group member. Members of the Plan on May 1,
2002 will continue as members of the Plan without further action by the Executive Committee or
the Board of Directors.
Members not participating in the Plan on May 1, 2002 may become Health Care Group
members by complying with the Health Care Group membership requirements. An eligible
government unit wishing to become a Health Care Group member may do so by complying with the
membership procedure set out in Section 6.2 and complying with the Plan membership
requirements.
Health Care Group members are subject to the withdrawal provisions of Article XII of the
Joint and Cooperative Agreement. For purpose of Section 2 of Article XII the terms "budgeted
revenues and the cost sharing charges" mean the liquidated damages as set forth in the LOGIS
Group Health and Life Insurance Policies and Procedures.
DX-210239v]
LG100-16
LOGIS GROUP HEALTH AND LIFE INSURANCE
POLICIES AND PROCEDURES
Effective August 1,1992, Amended January 1,1995,
Updated April 12, 2001, and Further Amended May 9, 2002
POLICIES
Eligibility Requirements
To be eligible for participation in the insurance program, the legal entity must be one of the
following:
1. A current member of the LOGIS Group Health and Life Insurance Program;
2. A current member of LOGIS;
3. A Minnesota city; or
4. A joint powers entity sponsored by a Minnesota city.
The legal entity must also:
1. Not previously have been a participant in the LOGIS Group Health and Life
Insurance Program; and
2. Indicate its commitment to the program by July 15`h of the current year or whenever
reasonably possible for members entering on other than the first day of a plan year.
For the Plan Year beginning January 1, 1990:
1. All current members of the LOGIS Group Health and Life Insurance program will be
eligible for participation in the Plan without restriction; and
2. Other current LOGIS members will be eligible to participate in the Group provided:
a. They have not previously dropped membership in the Group; and
b. They submit the necessary marketing information as requested by the Group or
its designated representative.
3. All non-LOGIS members who are Minnesota cities will be eligible to participate if
they comply with items 2.a. and b. above, as well as:
a. They must become at least associate members of LOGIS.
For subsequent Plan years, a LOGIS member who has not been a member of the Program or who
has not previously dropped membership in the Program may participate in the Program's next
Plan Year beginning January et of the following year, if
1. They sign a Participation Resolution on or before August 15` of the preceding Plan
Year or whenever reasonably possible;
2. They submit necessary marketing information as requested by the Program or its
designated representative.
1
LOGIS GROUP HEALTH AND LIFE INSURANCE
POLICIES AND PROCEDURES
OTHER REQUIREMENTS
A. Definitions for purpose of these Policies and Procedures
1. Benefit -earning employee is a full-time employee working an average of 30
scheduled hours or more per week based on the employer definition during the plan
year.
2. Benefit -eligible employee is a part-time employee working at least an average of 20
scheduled hours but less than the defined number of hours eligible to be benefit -
earning under the employer's definition during the plan year.
3. Retiree is any employee of a member of the Group who is entitled to coverage under
Minnesota Statutes g 471.61, subdivision 2a - 2b ("chapter 488") or any retiree policy
maintained by the Member.
4. Non benefit -eligible employee is a part-time employee working less than an average
of 20 scheduled hours per week during the plan year.
5. COBRA eligibles are employees entitled to continue participation subsequent to the
federal legislation commonly termed COBRA as in force and/or amended. COBRA
continuation does not constitute retirement coverage. This term also includes
individuals eligible for continuation under any provisions of Minnesota State Law if
different than any federally applicable legislation.
6. Program means the health insurance or life insurance policies maintained by LOGIS
for participating Members.
7. Member means any legal entity as indicated above who has elected to participate in
this Program.
B. The Member must honor the LOGIS Health and Life insurance policy regarding employee
eligibility, which is as follows:
1. An employee of a Member is eligible for health and life insurance if he or she is a
regular or probationary employee and works at least 20 hours per week. However,
the Member participating in the group, at its own discretion, may establish a more
strict definition of eligibility, but not a more lenient definition. Once the Member's
definition of eligibility is established, it must be applied consistently within the
Member's employee population. All employees meeting the Member's definition of
eligibility must be allowed to participate.
2. Members employing two individuals married to each other may allow one of the
partners to carry employee + spouse or family coverage. The other partner may then
be carried as a dependent of that Individual. These married individuals may also
carry coverage separately if desired.
3. Upon retirement, an eligible public employee as defined in Minnesota Statutes g
471.61, subdivision 2a - 2b ("chapter 488") and his/her covered dependents can
participate in this Plan at the same premium rate as active employees until reaching
age 65. The retiree must pay the entire premium unless otherwise provided for in a
collective bargaining agreement or personnel policy. Retirees age 65 and over have
the option of an HMO Medicare Supplement.
2
LOGIS GROUP HEALTH AND LIFE INSURANCE
POLICIES AND PROCEDURES
4. COBRA -eligible employees may be covered to the extent the corresponding active
employee is eligible for coverage. COBRA continuees are treated the same as
employees who are actively at work.
5. Elected officials of any Member are not to be considered eligible for participation
unless the elected official's coverage was in effect April 15, 1991 or prior. Coverage
for these elected officials will terminate upon completion of the term of office.
6. Non -benefit eligible employees may not be covered.
C. The Member must honor the LOGIS Health and Life Insurance policies regarding enrollment
in the health insurance, which is as follows:
1. At a minimum, 100% of its benefit -earning employees who are not covered
elsewhere through a spouse's employer sponsored group insurance must be enrolled
in one of the single health insurance plans. All benefit earning employees must be
enrolled in the group term life insurance plan. Members must pay at least 50% of
the lowest single premium for benefit -eligible employees. This does not apply to
early retirees eligible under Minnesota § Statutes 471.61, subdivision 2a - 2b
("chapter 488").
2. The Member may opt, based on its bargaining agreements or personnel policy, not to
provide coverage for benefit -eligible employees.
3. Each Member participating in the Group, at its own discretion, may establish a more
liberal contribution policy, but not a more conservative policy.
4. Each Member must follow established contribution/participation rules regarding
benefit -earning and benefit -eligible employees.
5. Each Member must treat benefit -earning married employees where both are
employees of the same Member as they would any other benefit -earning employee.
D. The Member may allow, at its discretion, benefit -earning employees to waive health
coverage provided that the employee shows proof of group coverage elsewhere.
E. If the Member allows its employees to waive health coverage, a maximum credit of $50 per
month may be given to employees in lieu of coverage.
F. The Member may not, for any reason, allow any of its non -benefit eligible employees to
purchase health coverage regardless of who pays the premium.
G. The Member must accept the LOGIS Health and Life Insurance Program's policy regarding
the effective date of coverage for newly hired employees. The effective date of coverage can
be no sooner than the first day of the calendar month coinciding with or next following one
full month of employment and no longer than the first day of the month coinciding with or
next following six months of continuous employment. Any such arrangement as to the
waiting period of coverage must be consistently applied to all eligible employees of the
member.
PROCEDURES
A. Eligibility for participation in the following plan year's insurance program is based on the
following procedures:
1. If the entity is a current Member of the LOGIS Health and Life Insurance Program:
3
LOGIS GROUP HEALTH AND LIFE INSURANCE
POLICIES AND PROCEDURES
a. It will automatically be included unless it notifies LOGIS of its intention to
withdraw from the program prior to July of the current year or it is given
leave for a late withdrawal, as provided below.
b. It must submit insurance data as required.
2. If the entity is a current member of LOGIS, but is not a Member of the LOGIS
Health and Life Insurance Program:
a. It must notify LOGIS in writing that it wishes to participate in the Program.
The notification must be received by LOGIS by July 15t of the current year
or as soon as is reasonably possible.
b. It must submit marketing information as required by the group or its
designated representative.
c. Having satisfied all other conditions, entities with less than 50 employees
will be automatically accepted, however, premiums will be based on 100%
of their own claims experience for the first year, 50% the second year, and
will not be 100% blended with the LOGIS pool until the third year.
d. Entities with 50 or more employees may be declined based on claims
experience. If allowed to participate, premiums may be rated based on the
above -mentioned formula (c.).
3. If neither a current member of LOGIS nor the LOGIS Health Care and Life
Insurance Program:
a. It must adopt a resolution authorizing execution of the standard LOGIS joint
powers agreement.
b. It must execute the joint powers agreement.
c. It must submit the resolution, two copies of the joint powers agreement, and
a cover letter to LOGIS. The cover letter should request admission to
LOGIS as at least an Associate Member and state the intention to participate
in the LOGIS Health Care and Life Insurance Program and commit to the
Program at least through the following plan year. This material must be
received by LOGIS by July 15th of the current year or whenever reasonably
possible.
d. It must submit marketing information as required by the group or its
designated representative.
4. An entity that is a current Member of the LOGIS Health and Life Insurance Program
may not withdraw from the program for the succeeding year unless (1) it provides
notice of withdrawal prior to July of the current year or (2) the Member requests
leave for a late withdrawal and LOGIS's Executive Committee grants the leave after
concluding, based on objective evidence, that the Member's withdrawal financially
benefit the other LOGIS members as a group. Any other withdrawal will be
considered an "Unauthorized Withdrawal", with the withdrawing Member being
referred to as a "Defaulting Member".
a. A Defaulting Member will be obligated to pay to LOGIS the greater of (1)
minimum liquidated damages of $500 multiplied by each individual insured
through the Defaulting Member under the LOGIS Health and Life Insurance
Program as of June 30 prior to the Unauthorized Withdrawal or (2) adjusted
liquidated damages, as described below, multiplied by each individual
insured through the Defaulting Member under the LOGIS Health and Life
4
LOGIS GROUP HEALTH AND LIFE INSURANCE
POLICIES AND PROCEDURES
Insurance Program as of June 30 prior to the Unauthorized Withdrawal. An
amount equal to minimum liquidated damages are due and payable within
thirty days of an Unauthorized Withdrawal.
b. Adjusted liquidated damages shall be determined if there are any
Unauthorized Withdrawals prior to the start of a plan year. In that event,
after the start of that plan year LOGIS's health coverage contractor shall
estimate the difference between what the continuing LOGIS members can be
expected to pay for health coverage during the that year and the following
year taking into account the Unauthorized Withdrawals and the facts as they
exist on the first day of the plan year ("Adjusted Cost"), and what such
continuing members would have been expected to pay for such coverage in
those years had the Unauthorized Withdrawals not occurred ("Base Cost").
These shall be determined based on actual premiums imposed for the current
year, the health coverage contractor's then current underwriting criteria, and
facts concerning coverage and experience as known on the first day of such
plan year. The determination will be binding on all parties absent clear
mathematical error. If Adjusted Cost exceed Base Cost, the difference shall
be divided by the number of individuals covered under the LOGIS health
plan through the Defaulting Members as of June 30 preceding the beginning
of the plan year. If the quotient exceeds $500, such quotient shall establish
adjusted liquidated damages, and each Defaulting Member will be obligated
to pay the adjusted liquidated damages (net of any amounts already paid)
within 30 days of this determination.
5. For purposes of marketing the Group to Health Care Providers, the Program has
authorized the following to act as its designated representative:
Stanton Group
3405 Annapolis Lane North
Plymouth, MN 55447
(763)278-4462
6. For purposes of marketing the Group Life Insurance, the Program has authorized the
following to act as its designated representative:
Larry Klopp & Assoc., Inc.
825 Nicollet Mall
Suite 1045
Minneapolis, MN 55402
(612) 333-5313
GP:821353 vl