HomeMy WebLinkAbout1979 Ordinance No. 053...
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ORD! ANCE N0 .~'1
SERIES OF 1979
BY AUTHORITY
COUNCIL BILL NO. 55
INTRODUCED BY
COUNCILMAN WILLIAMS
ORDI ANCE APPR OVING AN AGREEMENT TO ENTER INTO AN EMPLOYEE BENE-
FIT TRUST AGREEM ENT WITH OTHER COLORADO MUNICIPALITIES FOR THE
ADM! ISTRATION OF EMPLOYEE WE LFARE BENEFIT AND INSURANCE PLANS.
WHEREAS , the Ci t y of Englewood is self insured and desires
to reduce the cost of a dm i nist ration of its s e lf insured benefit
plans and purch se oth e r insura n ce at reduced rates; and
WHEREAS , other municipalities of the State of Colorado desire
to e s tablish t h ei r o wn self insurance plans and desire to reduce the
cost of admini s t rat i on of sa i d plans and purchase insurance at
reduced rates ; and
WHEREAS , municipalities, by joining togethe~would substan-
tially reduce a d min istrative costs and insurance plan costs.
OW, THE REFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF E GLEWOOD , COLORADO, AS FOLLOWS:
Section 1. That the City of Englewood, Colorado, shall enter into
an ag r eement a s described in Section 2 titled "Colorado Municipalities
Employee Benefit Trust Agreement" consisting of twelve (12) type-
written pages, at ta c h e d hereto and incorporated herein by reference.
The provisions of the Agreement titled "Colorado Municipalities
Employee Benefit Tru s t Agreeme n t " generally provides as follows:
1 . That the ag r eement estab li shes a legal relationship
commonly termed a partne rs hip which is identifed "Colorado Munici-
palities Employee Benefit T r ust".
2. That the members of this "trust" initially shall be the
City of Englewood, City of Littleton, and the City of Longmont.
Other Color do municipalities may j oin the "trust" upon approval of
the membership of the "t rust". The duration of the "trust" is
indefinite and withd rawal b y a membe r of the "trust" is effective
as of the next policy ann ive r sa r y da te. Withdrawing municipality
shall have no right to o r c l aim to any portion of any surplus in
the trust fund e x cept that a mun i c i pality which withdraws on the
policy 's renewal date shall b e ent i tled to receive any amount by
the t r ustee by v i rt ue of the d i r e ct experience rating of that
municipality earned p r i or to suc h termination .
. .
• 3. The purpose of the ag reement is to provide welfare bene-
fits for employees of participating municipalities of Colorado,
munici alities through group insurance policies or through direct
~aymeut or benefits to such empl oyees. The trustees shall be
responsible for carrying out the purpose of the trust and have all
power necessary to carry out said purpose. The chief administrative
officer of each participating mu nicipality, or his designee, shall
be trustees of the "trust". A unanimous vot e of trustees is required
wh n her arc four or less pa rticipating municipalities or a
majority vote when there are five or more part icipating municipalities
to conduct business .
4. Each of the municipalities shall indemnify the trustees
and hold them harmless against any loss, liability or expense.
5. The trustees may appoi nt an Administrator to administer
the trust under the direction of the trustees.
Section 2. That the City Council of the City of Englewood, Colorado,
hereby authorizes the mayor of the City of Englewood, Colorado, to
subscribe his name to said agreement and that the Director of Finance,
ex officio City Clerk-Treasurer, shall attest the same.
Introduced , read in full, a nd passed on first reading on the
• 3rd day of December, 1979 .
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Published as a Bill for an Ordinance on the 5th day of
December, 1979 .
Read by title and passed on final reading on the 18th day
of December, 1979.
Published by
on the /(/-rh day of
Attest:
title as Ordinance No.~..! , Series of 1979,
December , 1979 .~~+-~~~--,~~~'--~-r-~~~~ ~6P L
~~;..or?J~~
~uty City Clerk .
I Janice L . Watkins, Deputy City Clerk of the City of Englewood, , . .
Color do, do hereby certify that the above and foregoing.is a tru7
accurate, and complete copy of the Ordinance passe~ on final reading
and published by title as Ordinance No. 5..3 , Series of 197 9.
Janice L. Watkins
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COLORADO MUNIC IAPLITIES
EMPLOYEES ' WELFARE BENEFIT TRUS T ,
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2. :>c!1ni ions l -2
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4. Purpose of Trus 2
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S. Procuring of lr1su rance Policy 2 . ·, :: ~ '•. ~ ." .. ··
6. umber and Srlection of Trusl es • . • . • . • . . . . • 2 -3
7. Pow rs and Duties of he Tru s tee s 3 -7
8. Po w r s and Du i cs of A mini :; rator . . . • • . . • • • . 7 -8
9. ployers and Emp loyees 8 -10
10. Co p".?ni::a ion , nd Fxpc r.ne s 10
ll. ~ccoun s nn Re cords . . . . . . . . . • • . . . . . . . 10
12. T r ina t n o f Tru n 10
13. ~o ices , nd Aflrl r i::-;es • . . . . . . . . . . . . . . . . 10 -11
14. Si us nd Cons rue ion of Trust 11
1 s. iscell O<!OUS 11
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COLORADO MUNICIPALITIES • EMPLOYEE BENEFIT TRUST AGREEMENT
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. ' . . WHEREAS, the undersigned Employers desire to establish an employee wel-
·. ... fare benefit plan to provide welfare benefits for their "Empl oyees", as
hereinafter defined, Lhrough group insura nce or by direct payment of such
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{ benefits, and
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WHEREAS, for this purpose the undersigned Employers desire to create a ,.
Trust and to establish a Trust Fund through which such benefits shall be pro-
vided, to be financed by payments to be made to the Trust by the Employers,
NOW, THEREFORE, i n consideration of the premises and in order to create
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such Trust, it is mutually understood, agreed and stated as follows:
ARTICLE 1
NAME
The name of the Trust hereby created is the Colorado Munic i palities
Employee Benefi t Trust.
ARTICLE 2
DEFINITI ONS
The meanings of the various terms used in this Agreement and Declaration ·
of Trust shall be as follows:
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l.01 "Employers" shall mean those munici palities which are or which
shall hereaf er become participants in this Trust.
1.02 "Employees" shal l mean all of those employees of Employers who
shall be eligible for coverage un der such group insurance poli-
cies or agreements as re acqui red in accordance with the pro-
visions herein or under the guidelines established for the Trust
Fund created pursuant to the prov isions herein.
·-· 1.03 "Administrator" shall mean hat person designated by the Trustees
o administer the Trust and the Trust Fund pursuant to the
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Trustees dir ctions.
l.04 "Trust s" shall mean those persons selected by the partici-
p ing muni c ipAlilics dn their s uccc !:: ori:; as h rcinaftcr pro-
vided. . -;, .. ' . • 1.0S "Pol icy" or "Policies" shall mean the group insurance policy or . . · .. . .
~ .. ' . .. policies proc red from he in s urer and held by the Trustees for
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~ I ·.,. . he purpo e s of this Trust •
1.06 "Insure ~' shall mea n any insurance company which issues a policy to
h T.ru s c e u rsuant o the Agreement and Declaration of Trust.
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1.08
l.09
1.10
"Employers Contribution• shall mean the payinents made by the · ·
Dnployer to the Tru s for the purpose of carrying out the ~el'lll•
of this Ag reeme nt, includin9, but not by way of limitation,
the amount o f prC111ium s for the insurance on the Employees of
the respective Employer, such amount as may be designated by
the Trustees for direct payment of welfare benefits to the Em-
ployees, such amount as may be desi gnated by the Trustees for
the expenses of administration of s aid Trust, and the compensa-
tion of the Adm i n istrator and his assistants, and such other
professional personnel as are employed as consultants to the
Trust by t he Tru stees •
"Trust" shall mean the Colorado Municipalities Employee Benefit
Trust created by this Agreemen t and Declaration of Trust.
"Trust Estate" s hall mean all policie5, cash, contracts, credits,
stocks, bonds and other property or securities or dividends,
interest and income thereon received by the Trustees to be
h ld, u d and appl i ed by it fo r the objects and purposes of
this Trust.
"Consultant " shall mean any person retained by the Trustees to
render professional advice or services to the Trust •
ARTICLE 3
EFFECTIVE DATE
This Ag reement and Declaration of Trust shall be effective as of the lat
day of January, 1980 •
ARTICLE 4
PURI'OSE OF THE TRUST
The Purpose of the Trust is to prov ide welfare benefits for Emfloyees of
participating municipalities of Colorado Municipalities through groupdnsur-
ance policies or through di r ect payment of benefits to such Employees •
ARTICLE 5
PROCURING OF INSURA NCE POLICY
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The Trustees may apply for and procu re a group i nsµrance policy or poli-
cies from the insurer providi ng insura nce benefits under a group insurance
plan or plans in the Co c m agreed upon by the Trustees and the insurer, includ-
ing without limitation any type of group benefit, life insurance, accident
insurance and sickness o r other benefits. The term "policy" shall include any
rider, endorsement or amendment made a part of a policy. Upon receipt by
h insu rer of th app ropriate prPmium , the i n sure r sha ll issue t he policy
appli<'<I for to h Tru<> es , ar. the policyholder.
ARTICLE 6
tlm lRER AND Sf.l.EC TION OF TRUSTEES
The initial nunbc r o l Trus sunder thi s Trust s hall be three (3).
The Trus es s hall be ~he Chief ~cLninistrative Officer, or his designee, of
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inicip l1t which .ar part.ic1pan t • i n this Tru•t (the "Employer•")~ A•
• bsequent participating mu n icipal itie s are added, the nwnber of Trustee•. I.
11 increa by one for e ;t c h munl ci p lity added, vith the additional 'l',nHtee
bl-ng appointed by h munLclp li y bei ng add od.
7.01
7.02
7.03
7.04
7.05
7.06
APTT CLE 7
PO~~RS ANO DUTIE S OF THE TRU STEES
Gene ra l. All the rights and pr i vilege s granted to the policy-
holder by a policy shall be vested i n the Truatees during the
teni of the pol cy. During t h e t er111 of t he policy, the
Trustees s hall remit to the insu r e r any and all premium ·pay-
men t s de l ivered to t he Trustees by t he Employers, toqether
v i th any da t a deliv red o th m by the Em p loyers. The Employer•
shal l r emit t o the Truste s no later than one Cl) week prior
to t he e x piration of any gr ce period a llowed under the policy
for any pr ha pa~nt the AlllOU n t o f such pa)'IMnt, toqether
with such other d a t a •• 111a y be required by the inaurer. In no
event shall th Tru te bo requ ired to del i ver to the insurer
a uas o t her than those delive r d to the Truateea by the l'!:lllployera,
nor shall the Tr ustee• be required to audit the fund• delivered
t o the by the Employer• o r o c ollect any additional sU11a from
t h e Employ n . In th vent the i n s urer find• any shortage or
del a y i n t he paYft'en of periodic premiums, the insurer ahall
no t i f y the Truste es of the a serted fa i lure. The Trustees shall
det ennine the a c t ion to be t <en in respect of such asserted
failu r e and s hal l no t ify the i nsurer of the cancell'ation of any
Elllploye r cove r a ge,
of Polic Th Trustees may ag ree with the insurer
as to the endlllent or ddition of any rider or endorsement to
the policy dur i ng its term .
nds. Any divid nds to be return e d by the in s urer i n re-
pee o any policy s hall be re u rn e d to the Tru s tees who shall '
admin iste r hem a~ prov id ed in Sect i on 7(f) below.
Claims. Any claims m de under t he pol i cy by any Employee if
presen ed to an Employer or the Trustees s hall be forwarded to
the i n su rer. The Tru tees shal l h a ve no du t y with respect to
th ym n of cl ims or li bility t h refor e , u nl ess by s pecific
agreeme n oth rwise •
Ind cmni fi ca ion. The Trus es may require t he writ ten inatruc-
ion s of and lnd mnj \cation by h Empl o yers and /o r the in-
s urer before und e rtaking any c ion not · &cif1ca lly r e quired
by thi~ Agr eement.
Use of Trust Funds. The Trus es sha ll u se and apply the Trust
Funds for he follow i ng purposes:
7.06(a) To pay all reasonable and n ece ssary e xpenses of Trust
admin is rat ion including , bu t ni;;t by way of 1·imita-
ion, all expenses that ma y be incurred in establish-
ing and operating the Trus t and for administrative,
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7.07
clerical, legal and accounting assistance and for
~uch op rating and administration facilities as may
be deeme d necessary.
7.06(b) To make direct payment of benefits to Employees.
7.06(c) To pay the premiums on all policies or agreements
when such prem i ums shall become due.
7.06(d) To i nvest for the benefit of the Employees any sur-
plus Trust Fu nds wh ich may be received from any
7.06(e )
7.06(!)
7.06(9)
source.
To employ and compens ate such personnel and consult-
an s as are n ce 5sary to administer the provisions
o f the Trus Th Trustees may in their discretion
delegate the exercise of any administrative powers·
or the performance of any administrative duties or
obligations granted to or imposed upon them to such
admi nistrative personnel, provided, however, that the
Trustees shall approve all policy decisions made by
any s uch personnel •
Insuranc e divi dends and other sums received by the
Trustees by v irtue of policies or service agreements
may in whole or in part be held and used by them f o r
the purposes of the Fund or distributed by them on
such basis and at such times as it in their sole dis-
cretion appears beneficial to the persons covered by
the insurance coverage provided through said Trust.
Any amount received by the Trustees by virtue of the
direct experience rating of an employer shall be re-
turned to that Employe r by the Trustees •
Each year a budget will be prepared for approval of..
the Trustees by the Administrator for the following
year and delivered to t he Trustees prior to October
l. Within 30 days the Trustees will approve the final
bud et for h~ f o r thcoming year. No funds can be ex-
pcndl'Cl th t e x ec d he amounts bud ge ted wi t hout the ex-
press permis sion of a maj ority of the Trustees, regard-
less of whatever powers have been delegated to the Ad-
min istrator.
I nve~. The Tru stees s hall have the fol lowing powers with
r spec t to any a nd all moneys, securities, and other pro perty at
ny i m held by them and constituting part of the Trust Estate
he reunde r , 5uch p owers o be e x ercised by the Tru stees at their
so le discretion, no however in c onflict with any provision of
this Trust Agreem nt.
7.07 (a) To temporarily hold cash balances and to deposit
any fu nds received in a bank account or bank accounts
i n he nam of hi ~ Trust in any fed e rally in~ured
b ank o r savings an ~ loan a ssocia t ion selected by the
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7.08
7.09
7.10
7. ll
7.07(b)
7.07(c)
7.07(d)
7.07(e)
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Trustees, pending dispositio n of such funds in ac-·
cordance with this Trust. Any such deposit -y be
made wi th or without interest. The Trustees shall
not be liable for any loss suffered by reason o{ any
such depo si t provided such deposit is made with any
bank and/or s avings and loan association dul~ author-'
ized to do business in the state in which the bank
and/or sa vings and loan association s hall be located.
To acquire and retain any securities or other property
at any time as Trustees hereunder.
To invest all or a portion of the Trust Estate in a
col!lnon trust fund, insurance contract or other prudent
investment.
To establi s h and accumulate as part of the Trust Estate
a reserve in an amount wh ich the Trustees may deem
advisable to carry out the purpose s of the Trust.
To sell any securities or other property at any ti.me
held by it at either, public or private sale for cash
or on credit at such time or times as to it may seem
appropr 'ate and to exchange such property and grant op-
tions for the purchase or exchange thereof; to exer-
cise or s ell any conversion or s ubscr iption privilege
or right appurtenant to any securi ty held by the Trust.
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HAjority Decisions • If the number of participating cities is four '
or less, decisions must be unanimous • If five or more, the decision
of a majority of the Trustees shall control upon any matter arising
in the exercise of their powers hereunder •
Meetings -Organizations • The Trustees shall meet at least once an-
nually, and shall meet on the 15th day of October of each year or at
' such oth r date dur i ng Octobe r or November to which it is ~onvened
by the chairman • Th y shall elect from among themselves a chairman
and a secretary, to serve for one year terms and until their succes-
sors are appointed or qualified. The chairman or the secretary, or
any two Trustees may call a meeting of the Trustees at any time by
giv i ng a leas t five(5) days written notice of the time, place and
purpose hereof to each other Trustee. Meetings of the Trustees may
be h ld at any tiJne wi thout notice upon all Trustees written consent
he r to. No vacancy o r vac ancies in the off ice of the Trustee shall
i mpair he power of the r emaining Trustees, acting in the manner
he r ei n provided, to admin is ter the affairs of the Trust.
1\c ion Wi hou Me et ing. The Trustees may effec tively take any
ac i on authorized hereunde r without a meeting if such action is set
for h in a writ ten resolution adopted over the signature of all the
Tru s tees then in office .
1\dm1nist rd iori o f Trust. This Trust sha ll be administered by the
Tru s te s and 5d1d Trus tees shall have t he duty to select the benefits
o oo prov ided . Such ad~inistrati on may be delegated to the 1\dmini-
s rator.
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7 .13
7 .14
Resi gnation of Trustee. A Trustee may resign upon giving notice
in writing to the other Trustees and the Employers. In the event
o f a ny s uc h resignation, the participating Dllployers shall appoint''.
a successor Trustee. Such appoint:lllent of a successor Trustee shall
take e ffect immediately. . ...
Successor Trustee. Il'll'l\ediately upon acceptance of the Trusteeship ' "
in writing, il successor Tru s tee shill l become v ested with all the
property, rights, powers and duties of the Trustees hereunder with
like effect as if originally named as a Trustee.
Liability • Acceptance by the Trustees of their duties under . thi•.,::.
Agre e ment is subject to the following tenns and conditions, which
all parties to this Agreement hereby agree shall govern and control
the rights, duties and immunities of the Trustees:
7 .14 (a)
7.14(b)
7.14(c)
7.14(d )
7 .14 (e)
The duties and obligations of the Tru s tees shall be
determined solely by the express provisions of thi•
Agreement and the Trustees shall not be liable except
for the performance of such duties and obligations as
are specifically set out in this Agreement. The
Trustees shall not be bound in any way by any agree•
ment or contract among the other parties.
The Trustees, individual ly, shall not be responsible
in any manner whatsoever for any failure or inability
of the Employers or the insurer to honor any of the
provisions of this Agreemen t .
The Employers wi ll reimburse and indemnify the Trustees
for, and hold them harmless against, any~0 ss, liability
or expense including but not limited to legal fees,
incurred in good faith, willful misconduct or gross
negligence on the part of the Trustees, arising out of
or in connection with their fair acceptance of, or\the
pe rforma nce of t he i r duties and obligations under this
A rcem n t, as we l l a s the c osts and expenses of defend~
i ng agai ns a ny claim or liability arising out of or
re l i ng t o t his Agre ment to the extent permitted by
law .
The Trustees shall be fully protected in acting on and
r e l y i ng upon a ny wr itten advice, certificate , notice,
d i r e c ion, i nstruction, request or other paper or docu-
ment wh ich t he Trus tees in good faith believe to be
g e nuine and to h a ve been signed or presented by the
p r op er party or pa r t ies, and may assume any person pur-
po r ti ng to giv e s uch advice, certificate, notice, di-
r ection, ins tru c tion, reque s t or other paper or d o c u-
me nt ha s be en duly authorized to do so •
Th e Tr uste e s s hall not be liable for any error of
jud gement, or for any act done or s~e p take~·or omit-
t~d by t h e m i n good faith, for any mistake in fact or
l dw, o r f o r any thi ng which they may do or refrai n from
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7.15
7.16
8.01
• 02
8.03
8.04
7.14(f)
Bond ing.
doing in connection herewith, except their own gross
negligence or willful misconduct.
The Trustees mAy seek the advice of legal counsel in
h event of an y di spute or question as to the con~
struction of any of the provisions of this Agreement·
or their dut i s h reunder, and they shall incur no
liability and shall be fully protected in respect of
any action taken, omitted or suffered by thea in good
faith in accordance with the opinion of such counsel.
If a controversy ar ises between one or more of the
partie5 hereto, or between any of the ~rtiea and any
person not a party hereto, and as to any 111atter arising
out of or relating to this Agreenient, the Trustees
shall not be required to take any action until the
rights of the part i es to the dispute shall have been
finally detennined by mutual agreement or by final
order, decree or judgement of a court of competent
jurisdiction, and the time for appeal has expired
without an appeal having been perfected, but the Trustees
shall be under no duty whatsoever to institute or defend
any such proceedings.
The Trustees shall purchase and pay for out of the Fund
a bond, either in individual, schedule or blanket form, applicable
to all of the Tru tees and their successors. Such a bond shall pro-
vide protection to the Trust against loss by reason of any fraud
or d ishonesty on the part of any of the Trustees or _any other per-
sons administering the Trus t . The amount of said bond shali .not be
less than 1 00' of th amount of the Trust Estate.
Fiduciary Insurance. Fiduciary Insurance may be purchased by the
Trust o r by the Employers to protect the Trust and the Trustees
f om lo s or li bility resulting from any loss of Trust a s sets.'
ARTICLE 8
POWERS AND DUTIES OF T HE ADMINISTRATOR
Appo i n ent . An Adi1inistrator shall be appointed by the Trustees
in thei r sole discretion.
shall administe r the Trus
Upon s uch appo i ntment, the Administrator
and the Trust Fund at the discretion of
he Trus ees. The Trustees may delegate any administrative duties
r equired i n the per formanc e of the Trust.
of Trust Funds . The Adm inis trator shall use and apply the
Trust Funds as specifically directed by the Trustees, for any
purposes listed herein.
Li mited Out • The Adm i n istrator shall be charged only with the
funds a ctual ly received by him . He shall have no duty to collect
or en orce paymen of he c ontri butions provided f~r WI the plan.
The Adminis rator shal l make payments from tpe Fund only
upon direction of the Truste s, and should the Trustees direct the
Administrator o pay out funds over a period of time, any such
-7-
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d ir ct1 v shall con li nu e in f ull force and effect until rescinded
by t he Tr uste e s.
8.05 Depo si o ry . All mon e ys recei ved by the Trustees or Administrator
hereunder a s pa r t of the Trus t Estate shall be deposited by the
Administrato r in such bank o r banks as the Truste es ••Y desiqnate
and any thing t o the contrary herein notwithstanding, all with-
d rawa ls from such deposits s ha ll be made by check or withdrawal
s lip onl y, signed by the Ad mi n i strator and by a per s on or persons
a uthori z e d by the Trustees t o sign such checks or withdrawal slips •
In a dd i t ion, ce rt ifica tes o f deposit may be tenninated by signature
or authori zed pe rso ns.
8.06 Notificat i o n . The Administra tor shall attend all regular and
8.07
8.08
An y
s peci al mee tings of the Trus tees and he shall receive copies of
al l notices and mate r ials sent to individual Trustees.
In s truc t ions. The Admin is trator may accept as evidence of the
authori ty of t he Truste e s a ny wr i tten direction to the Admini-
strator whi c h ha s been signe d by the cha i rman of the Trustees
and a t t es ted by the secre t ary of the Trus tees, if the resolution
was adopted at a regu l ar me eti ng of the Trustees, or at a
s pecial meeting or by t e l ephone or signed by all of the Trustees
if the resolution was a dop ted wi thout a formal meeting; provided,
however, that s hould the By laws or other rules and requlations
adopted by the Trus tees a uthorize directions to the Administrator
to be signed by certain d e s ignated Trustees, then the Admini-i
s t ra t or may acc ept s ignature s of the designated Trustees •
Li abil ity. No Admin i stra tor o r other administrativ~ aide or con-
sultant shall be liable for any clai.111 or loss by any Employer or
Empl o ye e or fo r any decis i on, j udgement or action taken in con-
nection wi th the opera t i on of this Agreement except for willful
misconduct, f r aud or wi llful misappropriation of funds • The\
Adm ini strato r shall not be a g uarantor of the solvency of any
insurance comp an y , s e rv ice or pre-payme nt organization from which
a p o licy is bought or agrc ment is made, to comply with the obli-
gations of suc h policy , contract or a greemdnt, or for the failure,
refusal o r ina bility of any suc h i n s ura nce c ompany, services or
p r e-paym nt organiza ion to ma ke the payments required-of it.
AR TICL E 9
EMPLOYERS AN D EMPLOYEES
. .
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ploy r ma y participa e in the Trust c r eated h e reunder upon notifi-
ca i on to and a c e ptanc e by the Trus ees . Upon r eceipt of a request for ac-
cep
In
nc
h
nc , the Trus e cs shall approve o r disapprove the reque st wi thin 30 days.
even he Tru s es fail to take dny a c ion o n he r equest f or accept-
wi hin O days of r c>ip of uc h reques t, it s h a ll b e d eeme d to be dis-
pprov d . The Trus e s sha ll no i fy he p a r ticipa t i ng Em p l o yers o f the
un due f o r di r <' paymt'n o f lwne fi s a nd s ha ll ceq u i r s upni ss ion froe
h ployers of s uc h d a as is requir ed by the insu rer.
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assessed prior to the date of withdrawal of the Elllployer fra111 the Tru•t or
policy •
9.01
9.02
9.03
9 .04
Employer Paytnents • To the extent and in the manner permit~ by ··.
any rules, requlations and laws which are applicable, each !aiiloyer
may require contributions from its Employee• for the costs of pro-
viding insurance under the policy and for contribution• to the
Trust Fund for direct payment of benefits. In such event the
Employer shall collect all Employee contribution• and shall r .. it·
them together with the Employer's share in one paY111ent to the
Trustees. The Eniployer may establish and operate a •eparate ac•
count for purposes of direct payment of benefits to Elllployees and
if so, Employer payments may be directed into this account.
Interest of Persons Insured and Persons Claiming Through Ttrell. The
rights and interests of per s ons insured and persons claiming .by or
through them, by reason of having been named beneficiaries of in-
surance policies or otherwise , shal l be limited to the insurance
benefits specified i n the .policy, and no such person shall have
any claim against any funds or p roperty of the Trust.
Liability of Empl~yers. No Employers shall be liable for per-
forma nce by any other Employer, it being understood that when any
E)nploy e r has made the contributi on required of it, it shall have
discharged its liabili ty herein on behalf of its Employees and
itself, and when said con tributi ons are made, shall not be liable
for any failu r e or any insufficiencies of the Trust Es tate in any
re spec
Bcnefi s. It is understood and agreed that the benefits payable
to any Employee shall be limited t o the provis i ons of the master
group policy or policies, or group coverage agreement or agree-
ments a p plied for, issued to and owned by the Trustee• to under-,.
vritc the provisions of this plan or administered by the Trustee•
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11 .01
11.02
unde r a c ontract with he ins u r er and the provisions of the
guidelines c rea ted by the Tru stees in connection vith direct
payment of benefits from the Trust.
ARTI CLE 10
COMPENSATION AND EXPENSES
...
Cor:1p ensa t ion of Trustee s . The Trustees shall receive no compen-
sation for t he perfonnance of their duties, but shall be reim-
bu rsed fo r al l reasonable and necessary expenses which they may
incur i n the performance o f thei r duties, to the extent there ·
are trust funds available for that purpose •
Compensation of the Administrator. The Adia i nistrator will be
compensated fr om the tru st funds in an amount detennined by tha
Trustees.
Record Xeeping.
ARTICLE II
AC COUNTS AND RECORDS
The Trustees shall keep true and accurate books
of accounts and records of all of the Trust transactions, which
records shall be available for inspection at reasonable ti.Illes by
the insurer. This duty may be delegated to the Adainistrator •.
Reports. The Trustees shall prepare an annual report showing
transactions during the preceding year and such other data aa
the Trustees determine. This duty may be delegated to the Adlnini-
strator •
ARTICLE 12
TERMINATION OF TRUST
The Trust may be terminated at any time by action of two-thirds of the
ployers by an i ns trument in wr iting upon thirty(JO) days prior notice ,to
t e Trustees. Upon terminat ion, the Tru ste es shall, from the Trust moneys
in their possession , p ay the obl igations of t he Trus t and pay any remaining ,
mon ys to the insurer to be applied toward the purchase of continued insur-
ance benefits unde r the policy until such moneys are exhausted, and make di-
rect payme n of vested benefits to Employees. Upon termi nat i on of the Trust,
t.he po rs of he Tr ustees and he Administ rator shall continue for the pur-
pose of winding up and the di sso lu tion of said Trust and for the execution of
any and all ins ruments required. For the purpose of this Article, "vested
benefits" are benefits payment of which has been d irec ted by the Trustees
prior to the date of enni nat ion of the Trust.
13.01
ARTICLE 13
NOT ICES AND ADDRESSES
o t ice. Any notice given by any Employer shall be written and shall
be signed by the Chief Admi ni s trative Officer. Any not i ce given by
he Trust e s shal l be writte n and signed by the Trustees., The in-
surer and the Employers s hall send copies of all notices given the
other par t y o the Trustee s.
-10-
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Trustees
Color.1do Mun icip.:iliUes F.m ployee Benefit T rus t
F ... c h l ::O pl )'Cr s l..:i!l notify the Tru,;tces and the insurer of its
1 l i n g a dr ess i mmrd i ately upon becoming a signatory. For all
p rpos •s o thi s IVJ ~''' ""'nt, n o ice sha 11 be presumed to ha ve
n q1 v rn up n m.:iLI Lng of such notice addressed to any party
at the las t o f fi ci al ad d r ess.
hRTICLE 14
!TI'S AND CONST PUC TION 01" TRUST ------
The Tr st is ace pted in h St ate of Colorado and all questions pertain-
1ng o i s val1d1ty, cons ruction and adminis t r ati on sha ll be determined in
accordance w1th the la ws o f the State of Col o r do.
15.01
15.02
15.03
15.04
AHTT CLF 15
MT SC E L I J\N E' US ----------
Thi rd P r ie s. An y hird par y deali ng w ith the Tru stees or
he /\ ministraLor sliall not be requir<'d t o inquire whether the
Trustees or hdmin1 s rator have acted in an authorized manner.
Termina ion of /\dmin is trat.o r . -----------The Trustees shall have the
pow r to t rmina c he "tnpl \'lll"nl of the /\cJ min i !>t ato r f o r any
au s e.
Trustees Powe r to Contract. The Trustees shall have t he power
o contract for any insurance cove rage which would fulfill the
p u rpose of this Trust .
Amendr.ient of Trust . The Trust may be amended by the Trustees
at any ime upon thirty(30) days written notice of such pro-
posed amendment to each Employe r. Said proposed amendment may
be pr eve nte d only by a majority vote in wri t i ng of the Employers.
-11-
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