[HISTORY: Adopted by the Mayor and Town Council of the Borough of Chambersburg 11-28-2005 by Ord. No. 2005-19. Amendments noted where applicable.]
A number of political subdivisions within central Pennsylvania have investigated whether it would be mutually beneficial to cooperate with each other in obtaining employee benefit insurance.
A plan has been presented to establish the Pennsylvania Municipal Health Insurance Cooperative (the "PMHIC") for the purpose of collectively purchasing employee benefits insurance.
The PMHIC will be established pursuant to an intergovernmental cooperation agreement entitled the Pennsylvania Municipal Health Insurance Cooperative Agreement (the "agreement").
Pursuant to the Pennsylvania Intergovernmental Cooperation Act, 53 Pa.C.S.A. § 2301 et seq., a municipality may enter into an intergovernmental cooperation agreement upon the passage of an ordinance by its governing body.
This political subdivision hereby approves entering into the agreement, a copy of which is attached hereto and incorporated herein by reference (and which shall be filed with the minutes of the meeting at which this chapter was enacted), with the intent and effect that this political subdivision shall be bound by the agreement.
The President or Vice President of the governing body, acting alone or together with the Secretary or Assistant Secretary, are hereby authorized and directed on behalf of the political subdivision to execute and deliver the agreement and to execute and deliver such additional instruments, and to take such further actions, as may be necessary or appropriate to carry forth the agreement and the transactions to be effected under the agreement, including payment to the PMHIC of such amounts as are due by the political subdivision pursuant to the agreement.
All actions of any officer, agent or other representative of this political subdivision heretofore taken in the pursuit of the establishment of the PMHIC and/or the political subdivision's participation therein are hereby ratified and approved in all respects.
The governing body of the political subdivision is hereby authorized to take such other action as may be necessary or appropriate to carry out the purposes of this chapter and of the agreement.
As required by the Pennsylvania Intergovernmental Cooperation Act, the following matters are specifically found and determined:
The conditions of the agreement are set forth in the attached agreement.
This political subdivision shall participate in the PMHIC for an initial term of three years from the date that they first elected to purchase benefits through PMHIC. Thereafter, termination of the agreement shall be as further set forth therein.
The purpose and objectives of the agreement are as set forth in the preamble of this chapter and in the agreement.
The manner and extent of financing the agreement are that: no borrowing will be required by the political subdivision; funds to implement the political subdivision's obligations under the agreement same shall come from normal and usual budgeted amounts for such matters; and other provisions governing the manner and extent of the financing of the PMHIC shall be as set forth in the agreement.
The PMHIC shall be managed by its Board of Directors pursuant to the terms of the agreement.
All property, real or personal, of the PMHIC shall be acquired, managed, licensed or disposed of by the PMHIC in accordance with the terms of the agreement.
The PMHIC created by the agreement shall be empowered to enter into contracts for policies of group insurance and employee benefits pursuant to the terms of the agreement.
The provisions of this chapter are severable, and if any section, sentence, clause or part or provision hereof shall be held to be illegal, invalid or unconstitutional by any court of competent jurisdiction, such decision of the court shall not affect the remaining sections, clauses, parts or provisions of this chapter. It is hereby declared to be the intent of the political subdivision that such chapter would have been enacted if such illegal, invalid or unconstitutional section, sentence, clause, part or provision had not been included herein. Nothing contained in this chapter shall be construed to affect any suit or proceeding in any court, or any rights acquired or liability incurred, or any cause of action existing prior to the enactment of this chapter.
This chapter shall become effective immediately upon enactment hereof.