O-736-92 05/11/92VILLAGE OF LEMONT
ORDINANCE NO, 736
AN ORDINANCE AUTIIORIZING THE VILLAGE OF LEMONT TO
BECOME A MEMBER OF THE SOUTIWEST AGENCY FOR HEALTH
MANAGEMENT AND AUTIIORIZING THE PRESIDENT AND VILLAGE
CLERK TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT
CREATING THE SOUTHWEST AGENCY FOR HEALTH MANAGEMENT
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF TIIE VILLAGE OF LEMONT
This 11 day of May , 1992.
Published In pamphlet form by
authority of the President and
Board of Trustees of the Village
of Lemont, Counties of Cook, Will,
and DuPage, Illinois, this 11th
day of May , 1992.
ORDINANCE 736
AN ORDINANCE AUTHORIZING THE VILLAGE OF LEMONT TO
BECOME A MEMBER OF THE SOUTHWEST AGENCY FOR HEALTH
MANAGEMENT AND AUTIORIZING TIIE PRESIDENT AND VILLAGE
CLERK TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT
CREATING THE SOUTHWEST AGENCY FOR HEALTH MANAGEMENT
WHEREAS, THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
LEMONT HAVE REVIEWED A NUMBER OF METHODS BY WHICH THE OFFICERS AND
EMPLOYEES OF THE VILLAGE CAN RECEIVE ADEQUATE HEALTH AND ACCIDENT
INSURANCE AND SIMILAR BENEFITS; AND
WHEREAS, TIIE PRESIDENT AND BOARD OF TRUSTEES HAVE CONCLUDED
THAT AN EFFICIENT METHOD OF PROVIDING SUCH BENEFITS IS TO JOIN AN
INTERGOVERNMENTAL AGENCY WHICH WILL ADMINISTER THE BENEFIT PROGRAM
OF THE VILLAGE; AND
WIIEREAS, IT HAS BEEN DETERMINED THAT THE VILLAGE OF LEMONT DOES
NOT HAVE SUFFICIENT OFFICERS AND EMPLOYEES TO BECOME A MEMBER OF THE
INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE, WHICH HAS
PREVIOUSLY BEEN ORGANIZED TO CARRY OUT THE FUNCTION OF ADMINISTERING
THE PERSONNEL BENEFITS ACCORDED TO ITS MEMBERS; AND
WHEREAS, THE INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE
HAS HERETOFORE AMENDED ITS BY -LAWS TO PERMIT AN INTERGOVERNMENTAL
AGENCY COMPRISED OF GOVERNMENTAL BODIES WHICH HAVE FORMED THAT
AGENCY THROUGH AN INTERGOVERNMENTAL AGREEMENT TO BE ADMITTED AS
AN INDIVIDUAL MEMBER OF THE INTERGOVERNMENTAL PERSONNEL BENEFIT
COOPERATIVE; AND
WHEREAS, THE VILLAGE OF LEMONT, TOGETHER WITH OTHER UNITS OF
LOCAL GOVERNMENT, HAS DETERMINED THAT AN INTERGOVERNMENTAL AGENCY,
ENTERED INTO PURSUANT TO THE CONSTITUTION AND STATUTES OF THE STATE
OF ILLINOIS, SIIOULD BE CREATED FOR THE PURPOSE OF BECOMING A MEMBER OF
THE INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE; AND,
WHEREAS, AN AGREEMENT TO ACCOMPLISH THE CREATION OF THIS
INTERGOVERNMENTAL AGENCY TO BE KNOWN AS THE SOUTHWEST AGENCY FOR
HEALTH MANAGEMENT (SWAHM) HAS BEEN DRAFTED AND THE PRESIDENT AND
BOARD OF TRUSTEES DESIRE TO AUTHORIZE THE MEMBERSHIP OF THE VILLAGE
WITHIN THE SOUTHWEST AGENCY FOR HEALTH MANAGEMENT, THROUGH THE
EXECUTION OF SAID AGREEMENT.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF LEMONT, COOK, WILL AND DU PAGE COUNTIES,
ILLINOIS, AS FOLLOWS:
SECTION ONE: THAT THE VILLAGE OF LEMONT IS HEREBY AUTHORIZED AND
SHALL BECOME A MEMBER OF THE SOUTHWEST AGENCY FOR HEALTH
MANAGEMENT IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT
ATTACHED HERETO AS EXHIBIT "A" WHICH IS BY THIS REFERENCE
INCORPORATE HEREIN.
SECTION TWO: THAT THE PRESIDENT AND VILLAGE CLERK BE AND THE
SAME ARE HEREBY AUTHORIZED AND DIRECTED TO EXECUTE THE FORM OF
AGREEMENT CREATING THE SOUTHWEST AGENCY FOR HEALTH
MANAGEMENT ATTACHED HERETO AS EXHIBIT "A."
SECTION THREE: THAT THE VILLAGE CLERK IS HEREBY AUTHORIZED AND
DIRECTED TO FORWARD CERTIFIED COPIES OF THIS ORDINANCE AND
EXECUTE THE FORM OF AGREEMENT CREATING THE SOUTHWEST AGENCY
FOR HEALTH MANAGEMENT ATTACHED IIERETO AS EXHIBIT "A" TO THE
RESPECTIVE VILLAGES SET FORTH ON THE SIGNATURE PAGE OF THE
AGREEMENT REFERRED TO IN THIS SECTION AND TO THE
INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DU PAGE, ILLINOIS ON
THIS 11th DAY OF May , 1992
Kenneth Bromberek
Barbara Buschman
Bert Ercoli
Richard Kwasneski
William Margalus
Ralph Schobert
AYES NAYS PASSED ABSENT
X
X
X
X
X
X
CHARLENE M. SMOLLEN, VILLAGE CLERK
Approved by me this 11th day of May , 1992
Attest:
CI GENE M. SMOLLLN, VILLAGE CLERK
A
EPH S/ FORZLEY, VIL E)ESIDENT
STATE 01? ILLINOIS )
) SS.
COUNTY OF COOK )
CERTIFICATE
1, CHAItLENE SMOLLEN, certify that 1 am the duly elected and acting Municipal
Clerk of the Village of Lemont, Cook County, Illinois.
I further certify that on , 19 , the Corporate
Authorities of such municipality passed and approved Ordinance No.
entitled
which provided by its terms that it should be published in pamphlet form.
The pamphlet form of Ordinance No. , including the Ordinance and
a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the
municipal building, commencing on , 19 , and continuing for at
least ten days thereafter. Copies of such Ordinance were
inspection upon request in the office of the Municipal Clerk.
DATED at Lemont, Illinois this day of
(SEAL)
also available for public
, 19
Municipal Clerk
SOUTHWEST AGENCY FOR HEALTH MANAGEMENT
COMBINED AGREEMENT AND BY -LAWS
THIS AGREEMENT made and entered into by and between the
Village of Frankfort, an Illinois Municipal Corporation, the
Village of Lemont, an Illinois Municipal Corporation, the Village
of Mokena, an Illinois Municipal Corporation, the Village of New
Lenox, an Illinois Municipal Corporation, the Village of
Plainfield, an Illinois Municipal Corporation and the Village of
Shorewood, an Illinois Municipal Corporation (hereinafter
collectively referred to as "MEMBERS" or individually referred to
as "MEMBER ").
W I T N E S S E T H:
WHEREAS, Section 10 of Article VII of the Illinois
Constitution of 1970 authorizes units of local government to
contract or otherwise associate among themselves in any manner
not prohibited by law or by ordinance; and
WHEREAS, Chapter 127, Section 741 et. seq., Illinois Revised
Statutes, 1989, as amended, entitled the "Intergovernmental
Cooperation Act ", authorizes units of local government to
exercise any power or powers, privileges or authority which may
be exercised and enjoyed jointly with any other local government
or body in the State; and
WHEREAS, units of local government within Illinois have
found it increasingly expensive to provide health and life
insurance benefits to their officers and employees; and
WHEREAS, a large number of local governmental entities have
undertaken a series of studied to determine the feasibility of
EXHIBIT "A"
entering into an Intergovernmental Personnel Benefits Cooperative
for the purpose of administering some or all of the personnel
benefits programs offered by its member units of local government
to their respective officers and employees and have concluded
that the creation of such a cooperative is financially and
administratively feasible; and
WHEREAS, the corporate authorities of a number of units of
local government have organized the Intergovernmental Personnel
Benefits Cooperative ( "IPBC ") and have adopted a combined
Contract and By -Laws for such agency; and
WHEREAS, the Contract and By -Laws of IPBC ( "IPBC BY- LAWS ")
as amended, allows combinations of units of local government,
other governmental bodies, quasi- governmental bodies and non-
profit public service entities to contract with each other to
create an intergovernmental benefit pool with the rights and
powers equivalent to that of a single member of IPBC; and
WHEREAS, the MEMBERS desire to create an Intergovernmental
Benefit Pool hereby designated as Southwest Agency for Health
Management, hereinafter referred to as "SWAHM "; and
WHEREAS, the MEMBERS, by this Agreement, are desirous of
establishing their mutual rights and obligations with respect to
their membership in SWAHM and with regard to the IPBC.
NOW, THEREFORE in consideration of the foregoing recitals
and of the covenants and conditions hereinafter contained, the
adequacy and sufficiency of which the parties hereto hereby
stipulate, the parties agree as follows:
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1. INCORPORATION OF RECITALS: The recitals set forth in
the preamble hereinabove are hereby incorporated herein by
reference and made a part of this Agreement among the MEMBERS.
2. PARTICIPATION: The membership of SWAHM shall consist
of those MEMBERS which are parties to this Agreement plus any
other governmental entity admitted to membership as a MEMBER from
time to time, less any MEMBER which withdraws or is expelled from
SWAHM in accordance with the provisions of this Agreement.
Members of SWAHM may also add listed entities as defined in the
IPBC BY -LAWS. The MEMBER who lists other entities to its
membership shall be the sole MEMBER of SWAHM and shall be
responsible for all costs and duties of membership provided
herein. The MEMBER may make such arrangement as is desired with
the listed entities regarding the manner of payment, sharing of
risks, and duration of such arrangement. Such arrangement is not
a part of this Agreement. The admission of new MEMBERS and their
listed entities and the listing of additional entities by any
MEMBER shall take place only after a favorable two thirds (2/3)
vote of the entire membership of the Board of Directors of SWAHM
and subject to the payment of such sums and under such conditions
as the Board shall in each case or from time to time establish.
In the event that the Board of the IPBC objects to a prospective
member of SWAHM or a listed entity of such prospective member, it
may require SWAHM Board to deny admission to such prospective
member or such listed entity.
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3. REPRESENTATION: Each MEMBER shall by majority vote of
its corporate authorities, appoint one (1) person as delegate to
represent the MEMBER on the Board of Directors of SWAHM for a
term of one (1) year or until a successor is selected. An
alternate delegate may also be appointed to serve when the
primary delegate is unable to carry out his duties. Neither the
delegate nor the alternate need be an elected official. The
failure of a MEMBER to appoint a delegate or the failure of the
delegate to participate shall not affect the responsibilities or
duties of MEMBER under this Agreement. At its first
organizational meeting, which shall take place within thirty (30)
days of the commencement of SWAHM, and thereafter at its first
meeting of each fiscal year, which is established as July 1
through June 30, the Board shall elect one (1) delegate to serve
as Chairman of the Board and representative to the IPBC for the
remainder of the fiscal year. A Treasurer who shall also act as
the IPBC alternate representative shall be elected. The term of
office for the Chairman and other officials shall be for a period
of one (1) year except that the first term shall be from the
commencement of SWAHM until the following June 1st. No person
may serve as Chairman for more than two (2) consecutive full
fiscal year terms. The Board may from time to time establish
other officers and may select any Board representative to serve
in any of such offices. The Board may fill any vacancy which may
occur in such offices until the end of the term.
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4. RESPONSIBILITY OF THE BOARD OF DIRECTORS: The Board of
Directors shall determine the general policy of SWAHM with
respect to SWAHM Membership in IPBC and for other matters
effecting the relationship between SWAHM and its members.
Policies established by the Board of Directors shall be followed
by the delegate and /or alternate delegate to IPBC. In the
absence of the establishment of a specific policy regarding a
matter, the representative and /or alternate representative shall
vote in the manner believed to best represent the interest of the
majority of the MEMBERS.
No one serving on the Board of Directors of SWAHM shall
receive any salary or other payment from SWAHM for providing such
service thereto. Any reasonable expenses incurred by a delegate
or alternate as a result of attending IPBC meetings shall be
reimbursed to such MEMBER by the MEMBERS.
5. VOTING: Each MEMBER shall be entitled to one (1) vote
on the Board of Directors. Such vote may be cast only by the
designated delegate or alternate. Proxy or absentee voting shall
not be permitted. Voting shall be conducted according to the
following procedures:
A. A quorum shall consist of a majority of the
delegates of the MEMBERS then in office. A
simple majority of a quorum shall be
sufficient to pass upon all matters, except
as otherwise provided herein.
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B. Voice voting shall be permitted unless one
(1) or more MEMBERS requests a roll call
vote or the vote requires greater than a
majority vote for passage.
C. A two - thirds (2/3) affirmative vote of the
entire membership of SWAHM shall be required
to amend the plan of benefits available to
the officers or employees of its MEMBERS, to
withdraw as a MEMBER of IPBC in accordance
with Paragraph 10 of this Agreement, to
admit a new member or listed agency or expel
a MEMBER or listed agency, to amend this
Agreement, and such other matters as the
Board shall establish as requiring a two -
thirds (2/3) affirmative vote, provided that
such rule can only be established by at
least a two - thirds (2/3) affirmative vote
of the entire membership.
D. Any amendments to this Agreement which
involve the manner in which SWAHM shall
function as a member of the IPBC or the
financial obligations of SWAHM or its
MEMBERS to the IPBC shall not become
effective after passage by the Board of
SWAHM unless such amendment is also approved
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by a two - thirds (2/3) affirmative vote of
the IPBC Board.
6. MEETINGS: Regular meetings of the Board of Directors
shall be held at least four (4) times a year. The dates of
regular meetings of the Board shall be established at the
beginning of each fiscal year. Special meetings may be held at
the call of the Chairman or by any two (2) delegates. Any item
of business may be conducted at a regular meeting. Business
conducted at special meetings shall be limited to those items
specified in the agenda. Ten (10) days written notice of regular
or special meetings shall be given to the delegates of each
MEMBER by the Chairman or the convening authority. The time,
date and location of regular and special meetings of the Board of
Directors shall be determined by the Chairman of the Board of
Directors or by the convening authority.
To the extent not contrary to this Agreement, and except as
modified by the Board of Directors, Robert's Rules of Order,
Latest Edition, shall govern all meetings of the Board of
Directors. Minutes of all regular and special meetings of the
Board of Directors shall be sent to all delegates of the Board of
Directors.
7. FINANCES:
A. SWAHM shall be considered a single member of IPBC (as
defined in IPBC BY- LAWS), for purposes of determining its
required contribution to the Administrative Fund and Benefit
Pool of IPBC. Each separate MEMBER of SWAHM shall be responsible
7
for its share in the cost of the Administrative Fund and Benefit
Pool, which cost shall be in direct proportion to the number of
employees and officers of the MEMBER whose benefit programs are
to be administered by IPBC as compared to the total number of
such person in SWAHM.
B. SWAHM shall see to the collection of funds due the IPBC
and transmit such funds to the IPBC or at its direction. The
Board of Directors may from time to time designate a municipality
who shall be responsible for collecting funds due the IPBC from
MEMBERS. The Village of Frankfort is hereby designated as the
initial collector of funds of SWAHM and shall act as agent for
SWAHM for these purposes.
Each separate MEMBER shall promptly pay to the Village of
Frankfort, as agent for SWAHM, such monthly, supplementary or
other payments to the Administrative Fund and the Benefit Pool as
shall be due IPBC as a result of the administrative and payment
to the benefit program of such MEMBER. The financial obligations
of each MEMBER shall be those which would be properly chargeable
if the MEMBER were as independent member of the IPBC, in
accordance with the terms of the Contract and By -Laws of the
IPBC, dated May 29, 1979, as amended from time to time. In the
event that a MEMBER of SWAHM should default in its financial
obligations, both SWAHM and the IPBC shall have the right to take
action to recover such funds as are owed, plus interest at the
highest rate allowed by statute, which may be paid by an Illinois
non -home rule municipality.
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8. PLAN OF BENEFITS:
A. Each MEMBER agrees to accept the Plan of Benefits
described in Attachment A, as may be revised from time to time,
for its officers and employees who are included in its personnel
benefit program. All MEMBERS of SWARM shall have the same plan
of benefits which may be amended as a whole if approved by the
Board of SWAHM.
B. The Benefit Administrator of the IPBC and the IPBC
Board shall rate the experience of all of the MEMBERS of SWAHM,
as a whole, in determining the amount necessary to fund the IPBC
Benefit Pool.
9. OBLIGATIONS OF MEMBERS: The obligations of each MEMBER
to SWAHM and to IPBC shall be as follows:
A. To promptly pay all monthly and
supplementary or other payments to the
Administrative Fund and the Benefit Pool at
such times and in such amounts as shall be
established by IPBC within the scope of this
Agreement and the IPBC BY -LAWS. Any
delinquent payments shall accrue a penalty
which, for the period of non - payment, shall
be equivalent to the highest interest rate
allowed by statute to be paid by an Illinois
non -home rule municipality.
B. To appoint a delegate and an alternate on
the Board of Directors of SWAHM.
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C. To allow IPBC reasonable access to all
facilities of the MEMBERS and all records,
including but not limited to, financial
records which relate to the purpose and
powers of IPBC.
D. To furnish full cooperation to IPBC
attorneys, claims adjusters, the Benefit
Administrator and any agent, employee,
officer, or independent contractor, of IPBC
relating to the purpose and powers of IPBC.
E. To report to IPBC as promptly as possible
all claims made to it within its benefit
program as administered by IPBC.
F. To pay all payments, as may be determined by
the MEMBERS, for an Escrow Fund, if any.
10. WITHDRAWAL; TERMINATION:
A. All MEMBERS of SWAHM shall be obligated to continue as
MEMBERS until July 1, 1993. After July 1, 1993, MEMBERS shall be
obligated to continue as MEMBERS during successive terms as
established by the Board of Directors of IPBC. Any MEMBER may
withdraw from membership by giving written notice of such
intention to withdraw to all other MEMBERS at least ninety (90)
days prior to the commencement of one of the multi -year extension
terms of the IPBC. Failure to give such notice shall obligate
the MEMBER to continue for the next multi -year term, except where
SWAHM withdraws from IPBC, IPBC terminates, or the IPBC declines
10
to permit SWAHM to remain within the Cooperative. Withdrawal by
SWAHM may only be made to take effect at the end of the then
current three (3) year cycle. The obligation of a MEMBER during
each term in which it is a MEMBER shall include continuing
participation with regard to all classes of officers and
employees of the MEMBER, not including its listed entities,
established as being entitled to benefits at the commencement of
each three (3) year term. In addition, a MEMBER shall only be
required to provide continuing participation for those persons
within said classes of officers and employees as are actually
employed or working for the MEMBER or who may otherwise be
entitled to coverage by the MEMBER, as required by law
B. If a MEMBER shall withdraw from SWAHM, no benefit
claims of the MEMBER shall be processed or paid by IPBC after the
close of the fiscal year in which withdrawal takes place. Within
sixty (60) days after withdrawal, a final accounting of the
former MEMBER'S fund shall take place. Pending claims and other
records pertaining to the withdrawing MEMBER shall be turned over
to that MEMBER in a prompt manner. If the amount owed to or due
from the withdrawing MEMBER is Twenty Five Thousand Dollars
($25,000) or less, the party owing such funds shall make payment
within ninety (90) days after the final accounting. If the amount
owed or owing shall be over Twenty Five Thousand Dollars
($25,000), the party owing such funds shall pay to the recipient
Twenty Five Thousand Dollars ($25,000) in no more than thirteen
(13) equal monthly payments with interest thereon at the highest
11
amount lawfully payable by a non -home rule Illinois municipality
on the date the final accounting is accomplished.
C. If SWAHM shall withdraw from IPBC, no benefit claims
shall be processed or paid by IPBC after the close of the fiscal
year in which withdrawal takes place. If upon such withdrawal by
SWAHM, a deficit position exists in the Benefit Fund, then the
IPBC shall apply any SWAHM funds on deposit with the IPBC to
liquidate the deficit. If a deficit still exists in the Benefit
Fund, each MEMBER shall be required to pay an additional
assessment into SWAHM escrow fund in proportion to the premiums
paid over the previous twelve (12) months. The Board shall
establish the amount of such payment or payments. Such
additional payments shall be required even if the MEMBERS'
individual Benefit Fund balance with the IPBC or SWAHM is not in
a deficit position. The Escrow Fund shall then be used by SWAHM
to liquidate any remaining deficit with the IPBC.
If after making the above adjustments, there is a surplus of
funds in the Escrow Fund, this surplus shall be returned to the
MEMBERS. Such distribution shall be made on a proportional basis
by comparing each MEMBERS contribution to the Escrow Fund with a
total of all MEMBERS' contribution to the Escrow Fund. Such
distribution shall be made at a date determined by the Board of
Directors of SWAHM and shall not be made until after all expenses
of SWAHM have been paid or provided for.
D. In the event that a non - appealed or appealable order of
a court in which IPBC is a party should decide that SWAHM may not
12
be a member of the IPBC, then this Agreement shall terminate.
Provided, however, that to the extent permitted by law, the
termination shall take place in accordance with paragraph 10B
hereof.
11. EXPULSION OF MEMBERS: By the vote of two - thirds (2/3)
of the entire remaining membership of the Board of Directors, any
MEMBER may be expelled. Such expulsion, which shall take effect
in the manner set out below, may be carried out for one or more
of the following reasons:
A. Failure to make any payments due to SWAHM or the IPBC.
B. Failure to furnish full cooperation with SWAHM's
attorneys, the IPBC's attorneys, claims adjusters,
Benefit Administrator and any agent, employee, officer
or independent contractor of the IPBC or SWAHM relating
to the purpose and powers of the IPBC or SWAHM.
C. Failure to carry out any obligation of a MEMBER which
impairs the ability of SWAHM to carry out its purposes
and powers.
D. Offering a second Indemnity Health Care Plan
or other Plan to its employees that is not
in place at the date of the execution of
this Agreement and has not been approved by
SWAHM; provided that nothing contained
herein shall be deemed to be a restriction
placed upon any member with respect to
providing options of membership in qualified
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Health Maintenance Organizations as may be
required by State or Federal statute.
No MEMBER may be expelled except after notice from SWAHM of
the alleged failure along with a reasonable opportunity of not
less than fifteen (15) days to cure the alleged failure. The
MEMBER, within that fifteen (15) day period, may request a
hearing before the Board before any decision is made as to
whether the expulsion shall take place. The Board shall set the
date for a hearing which shall not be less than fifteen (15) days
after the expiration of the time to cure has passed. The Board
may appoint a hearing officer to conduct such hearing and make a
recommendation to the Board based upon findings of fact. If the
Board conducts the hearing itself, it may make a decision at the
close of the hearing. A decision by the Board to expel a MEMBER
after notice and hearing and a failure to cure the alleged defect
shall be final unless the Board shall be found by a court to have
committed a gross abuse of discretion. After expulsion, the
former MEMBER shall continue to be fully obligated for any
payment to the Administrative Fund, the Benefit Pool and the
Escrow Fund, if any, which was created during the term of the
administration of its claims along with any other unfulfilled
obligation as if it was still a MEMBER of SWAHM.
The obligation of the IPBC to administer the claims filed
under the benefit program of the expelled MEMBER shall cease
thirty (30) days after the date of expulsion, provided that such
obligation shall only exist where there is a credit balance in
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the Benefit Pool and Administrative Fund to the account of SWAHM
or such a credit balance is created. The IPBC shall not be
required to pay any benefits for the expelled MEMBER after the
actual date of expulsion if a deficit in amounts owed the IPBC
should exist at any time during the thirty (30) day period.
Within sixty (60) days after the last claim of the MEMBER is paid
by the IPBC, a final accounting of funds owed or owing shall take
place. Pending claims and other records of the expelled MEMBER
shall be turned over to that MEMBER in a prompt manner.
In the event that the Board of the IPBC should vote to expel
SWAHM from membership, so long as a particular municipality or
listed entity was a MEMBER of SWAHM, that MEMBER or listed entity
shall be deemed to have been expelled from SWAHM in the same
manner as if SWAHM Board had taken that action.
12. ESCROW FUND: As security for the financial obligation
described herein, each MEMBER shall place on deposit an amount of
money equal to one (1) times the anticipated monthly payment due
IPBC for the operation of the Administrative Fund and the Benefit
Pool. Such funds shall be deposited in an escrow account in the
financial institution used by IPBC. Accrued interest shall be
credited to each individual MEMBER on a pro rata basis determined
by the amount deposited as compared to the entire fund. In the
event that a MEMBER fails to pay funds due the IPBC by the
fifteenth (15th) day of any month, the IPBC Benefit Administrator
shall notify the Chairman of the Board of IPBC who shall notify
the delegate of the MEMBER, either verbally or in writing, that
15
the funds shall be withdrawn from the escrow account unless
payment is made within five (5) days. The IPBC Benefit
Administrator shall have the authority together with the IPBC
Treasurer, to withdraw from any account within the Escrow fund
the amount due after prescribed notice is given. Employees or
officers of the MEMBER shall be entitled to payments from the
Benefit Pool during the month for which payment is made on behalf
of the MEMBER from the escrow account. In the event monies are
withdrawn in the manner prescribed above, the MEMBER shall take
prompt action to restore the escrow account to the original
amount.
At the beginning of each fiscal year, the Benefit
Administrator shall recommend to the IPBC Board of Directors any
adjustments required in the Escrow Fund as a result of increase
or decrease in the anticipated monthly payment to IPBC, The IPBC
may require a supplementary deposit to the escrow account, if
necessary, to reduce an anticipated deficit in the escrow
account.
Should SWAHM accumulate any balance in any fund of the IPBC
which, as a matter of right, it can withdraw, the Board of
Directors may authorize a transfer of those monies to the Escrow
Fund. This refund is to be accounted for in a manner which
segregates each MEMBER's share. Each MEMBER's share will be
calculated according to the same proportion as premiums paid
during the year(s) the surplus was accumulated in relation to all
premiums paid by SWAHM MEMBERS during that year(s). If the
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surplus can not be associated with a specific fiscal year(s),
then the transfer of any portion of the surplus to the Escrow
Fund will be allocated to the individual Member based upon the
amount paid by each of the MEMBERS over the lesser of the last
five years or since the inception of SWAHM.
Upon withdrawal or expulsion from SWAHM, any amount due
after satisfying all outstanding claims, shall be returned to the
former MEMBER.
13. ACCEPTANCE OF CONTRACT AND BY -LAWS OF THE
INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE: The MEMBERS
hereby agree to accept the terms and conditions contained within
the Contract and By -Laws of the IPBC, dated May 29, 1979, and as
amended from time to time, except that the IPBC BY -LAWS may not
be amended to require from SWAHM duties or responsibilities
different from the other MEMBERS of the IPBC and not initially
contained within this Agreement.
14. COMMENCEMENT OF SOUTHWEST AGENCY FOR HEALTH MANAGEMENT:
This Agreement shall be in full force and effect and legally
binding upon the signatory MEMBERS as of midnight the 30th day of
June, 1992, if by that date the number of municipalities
executing this Agreement equal five (5) or more and the combined
total number of officers and employees covered by the benefit
plan of the signatories is not less than one hundred and ninety
(190). If by that date there are not five (5) or more
municipalities with at least one hundred and ninety (190) covered
individuals who have signed, then without further acts of the
17
parties, this Agreement shall terminate and be of no further
force or effect. The commencement of SWAHM shall also require the
admission of SWARM into the IPBC by the vote of the Board of the
IPBC.
15. CONTRACTUAL OBLIGATION: This Agreement shall
constitute the contract among those units of local government
which become members of SWAHM. The obligations and
responsibilities of the MEMBERS set forth herein, including the
obligation to take no action inconsistent with this Agreement as
originally written or validly amended, shall remain a continuing
obligation and responsibility of the MEMBER. The terms of this
Agreement may be enforced in a court of law or equity either by
SWAHM itself or by any of its MEMBERS. The consideration for the
duties herewith imposed upon the MEMBERS to take certain actions
and to refrain from certain other actions shall be based upon the
mutual promises and agreements of the MEMBERS set forth herein
and the advantage gained by the MEMBERS in anticipated reduction
of administrative costs for the processing of personnel benefits.
Except to the extent of the limited financial contributions to
SWAHM agreed to herein, or such additional obligations as may
come about through amendments to this Agreement, no MEMBER agrees
or contracts herein to be held responsible for any claims of any
kind against any other MEMBER. The contracting parties intent in
the creation of SWAHM is to establish an organization for joint
personnel benefit administration only within the scope herein set
forth, and have not herein created as between MEMBER and MEMBER,
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any relationship of surety, insurer, guarantor, indemnitor,
obligor, or otherwise have any responsibility for the debts or
claims against any MEMBER.
16. ENTIRE UNDERSTANDINGS: This Agreement sets forth the
entire understanding of the parties and may only be amended as
provided for herein.
17. ASSIGNMENT: This Agreement shall not be assigned by
any party hereto.
18. COUNTERPARTS: This Agreement is executed in multiple
counterparts, each of which shall be deemed to be an original.
19. GOVERNING LAW: This Agreement shall be governed in
accordance with the laws of the State of Illinois.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective Village Presidents
and duly attested by their respective Village Clerks in
accordance with ordinances duly passed by their respective
corporate authorities.
ATTEST:
Village Clerk
AT EST:
illage Clerk
Village of Frankfort, an Illinois
oiG
Municipal Corporation,
BY:
Village of Lemont, an Illinois
Munici al Corporatio
BY:
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ATTEST:
Village Clerk
ATTEST:
Village Clerk
ATTEST:
Village Clerk
ATTEST:
Village Clerk
Village of Mokena, an Illinois
Municipal Corporation
BY:
Village of New Lenox, an Illinois
Municipal Corporation
BY:
Village of Plainfield, an
Illinois Municipal Corporation
BY:
Village of Shorewood, an n> imic
Municipal Corporation
BY:
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