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Ordinance No. 1,610ORDINANCE NO.1610 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS, AUTHORIZING AND DIRECTING THE MAYOR ANDCITY CLERK OF THE CITY OF BAYTOWN TO EXECUTE AND ATTEST TOANINTERLOCAL AGREEMENT WITH THE TEXAS MUNICIPAL LEAGUE WORKMEN'SCOMPENSATION JOINT INSURANCE FUND FOR THE PURPOSE OF PROVIDING WORKMEN'SCOMPENSATION BENEFITS FOR EMPLOYEES OF THE CITY OFBAYTOWN AND PROVIDING FOR THE EF FECTIVE DATE HEREOF. BEIT ORDAINED BY THECITY COUNCIL OFTHECITY OF BAYTOWN,TEXAS: Section 1:That the City Council of the City of Baytown,Texas,hereby authorizes and directs the Mayor and City Clerkof the City of Baytown to execute and attest to an Interlocal Agreement with the Texas Municipal League Workmen's Compensation Joint Insurance Fundfor the purpose of providingWorkmen's Com pensationBenefitsfor employees of the City of Baytown.A copy ofsaid agreement is attached hereto,marked Exhibit "A,"and made a parthereof for all intents and purposes. Section 2:This ordinance shall take effect from and after its passage by the City Council of the City of Baytown. INTRODUCED,READandPASSED by the affirmative vote of the City Council of the City of Baytown this23rd day of May ,1971. TOMGENTRY,Mayor ATTEST: EDNA OLIVER,City Clerk APPROVED: NEEL RI6HARDS0N,City Attorney EXHIBIT "AHAH WORKMEN'S COMPENSATION JOINT INSURANCE FUND 1020 Southwest Tower,Austin,Texas 78701 (A Service of the Texas Municipal Leanue) INTERLOCAL AGREEMENT This Contract and Interlocal Agreement entered into by and between the Texas Municipal League Workmen's Compensation Joint Insurance Fund (hereinafter referred to as "Fund )and the undersigned political subdivision of the State of Texas (hereinafter referred to as Employer Mem ber")for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workmen's Compensation Act for employees of political subdivisions. i 3 WITNESSETH: The undersigned Employer Member in consideration of the adoption of a plan of self-insurance as authorized in Article 8309h.Vernon's Annotated Texas Statutes,to provide Workmen s Compen sation benefits at a minimum cost and in further consideration of other political subdivision execut ingidentical interlocal agreements does hereby agree to become a self-insured workmen s compensation employer by becoming one of the members of the Fund Pool of self-insured Employer Members.The conditions of membership agreed upon by and between the parties are as follows: 1 The term of this Contract shall be fora term of three years commencing on July 1.1974. unless the same is sooner terminated by sixty (60)days written notice of intent to terminate by either party unless otherwise specified under the terms and agreements of this Contract or by the Bylaws of the Fund.The Fund will have the right to terminate this agreement only for non-compliance with paragraphs 8 and 16. 2 An annual estimated payroll by payroll classifications will be furnished by the Employer Member to the Fund.It is understood that this is an estimate that shall be adjustable at the end of each Fund year to reflect the actual payroll on the books of the Employer Member. 3.-The Employer Member agrees to pay the premiums payable for the payroll classifications based upon a standard annual premium determined by first computing the rates,using as a guide the classifications of payroll as established by the State Board of Insurance.This premium shall be modified by the experience modification of the political subdivision if same has previously earned an experience modification by virtue of having been insured by a workmen's compensation insurer and having earned an experience modification promulgated by the State Board of Insurance.In the ab sence of anearned experience modification for the Employer Member,the manual rate as estab lished by the State Board of Insurance in effect at the beginning of each fundyear will be used as a guide to produce a manual as well as a standard premium.The premium payable shall be 75%of the standard premium thus obtained.Once the standard annual premium has been computed,the Employer Member agrees to pay the payable premium in twelve (12)equal monthly installments commencing June 15,1974.with subsequent installments commencing August .1.1974.provided that if the payable premium shall be less than S5.000 such shall be payable in four (4)equal quarterly installments commencing June 15.1974.with subsequent installments commencing October 1.1974. It is understood by the Employer Member that there will be a rate adjustment on September 1.1974. and at subsequent periods thereafter based upon the increased benefit levels mandated by the Work men's Compensation Act which rate adjustments will use as a guidethose promulgated by the State Board of Insurance. EMPLOYER MEMBER COPY 4.The estimated payaSiAe premium for the Employer MembepisifhaN be based upon payroll estimates and shall be paf e as provided in 3 above.At the end c Ich and every Fund year there shall be submitted by the tmployer Member actual payrolls as reflected by the books of the Em- ,ployer.Member andany additional amounts payable into the Fund based upon the actual payroll shall,be paid and lesser amounts payable shall be adjusted by refund to the Employer Member.The Fund reserves the right to audit the payroll records of any Employer Member. 5.The Fund agrees to use as a guide the workmen's compensation experience rating plan as prescribed by the State Board of Insurance and to calculate and furnish each Employer Member its individual,experience modification when earned in accordance with the provisions of such experi ence rating plan. 6.The Fund agrees that it has obtained aggregate stop loss reinsurance to assure that the in curred losses and expenses for the total Fund shall not exceed the maximum 75%of standard premiums paid and payable by Employer Members into this Fund.The Employer Members have no joint or several liability other than the maximum 75%of standard premium payable by each Em ployer Member.Any savings to the Fund resulting from overall loss experience less than 60%of the standard premium shall be available for dividend credit to future premiums as declared by the Board of Trustees (hereinafter referred to as "Board")from time to time.TheFund shall invest anyand all funds that are on deposit with the Fund and the investment earnings from these particu lar funds shall be used for the benefit of the Employer Members that remain as members of the Fund until such timeas the Board deems that it is financially feasible to declare dividends in the form of a further reduced premium to the Employer Members.Such dividend determinations will be made annually. 7.The Fund shall at ali times provide for reinsurance of the Fund itself so that the participation of the Employer Members shall at all times be on a non-assessable basis beyond the amounts as set forth in this Contract.The Fund has catastrophe loss protection excess of S50.000.00 for any one accident or occurrence up to a limit of S5.000.000.00 and aggregate stop loss protection excess of 60%aggregate incurred losses to aggregate standard premiums for the total Fund for the initial three year contract period.The Board reserves the right to adjust either one of these reinsurance pro visions in the event that the fiscal soundness of the Fund will justify such an adjustment and result in a savings to the Employer Members.Before any such adjustment is made,notice will be given to all of the Employer Members togetherwithan accounting from the Fund in order that any Employer Member may appear before the Board to discuss the fiscal soundness of the Boards action. 8.The Undersigned Employer Member agrees that it will cooperate in instituting anyand all reasonable safety regulations that may be recommended for the purpose of eliminating or minimiz ing hazards that would contribute to workmen's compensation losses.In the event that the recom mendations submitted by the contractor on behalf of the Fund seem unreasonable,the Employer Member has a right to appeal to the Board and the decision of the Board shall then be final. 9.The Employer Member agrees that it will appoint a workmen's compensation coordinator for the Employer Member and that the Fund and its contractor shall not be required to contact any other individual except this one person.Any notice to or any agreements with the workmen's compensa tion coordinator shall be binding upon the Employer Member.The Employer Member reserves the right to change the coordinator from time to time by giving written notice to the Fund and to the contractor. 10.In addition to the premium as hereinabove set forth there shall be payable a filing fee payable by the Employer Member (currently S7.50)which amount is paid to the Industrial Accident Board for a filing on behalf of the Employer Member. 11.The Fund through the contractor employed by the Fund agrees to handle anyand all claims after notice of injury has been given,to prepare all required Industrial Accident Board forms,and to provide a defense.They shall carry on all negotiationswith the injured employee or his attorney at the prehearing conferences and negotiate within authority previously granted by the Fund.If a per sonal appearance by the employer or a co-employee is necessary the expense of this appearance will be paid by the Employer Member.The contractor will retain and supervise legal counsel in behalf of and at the expense of the Fund necessary for the prosecution of any litigation.There will be safety engineering servicessupplied by the contractor to the Employer Member to assist them in following a plan of loss control that may result in reduced losses.The contractor shall provide all of the servicesas provided in the proposed service contract entered into by and between the con tractor and the Fund on behalf of the Employer Member.Not withstanding any provisions of this paragraph,all reports and filings required by the Industrial Accident Board of an employer will be the responsibility of the Employer Member. 12.Each month there shall be supplied to eachEmployer Member a computer printout involv ing a statement of claims,claims status,and activity report cumulative for each Fund year. 13.The Employer Member agrees to execute necessary authorization forms permitting the Fund•and tHe contractor to obtain from the State Board of Insurance the experience rating modification tor tne Employer Member that has previously carried workmen's compensation insurance Upon any contract termination or non-renewal the Employer Member agrees that the Fund may file with the btate Board of Insurance loss and payroll data pertaining to the Employer Member as used to developexperiencemodification. 14.In the event that the Employer Member fails or refuses to make the payments of premiums ?!m ejem'Provided tne Fund reserves the right to terminate such Employer Member by giving ten(10)days written notice and to collect any and all premiums that are earned pro-rata for the period preceding contract termination.Any Employer Member that is terminated hereunder shall not beentitledtoanyofthedividendsthathavenotbeenpaidatthattime. 15.The undersigned Employer Member does hereby agree that any suit brought by one of itsemployeespursuanttotheprovisionsofArticle8309hshallbedefendedinthenameofthepoliticalsubdivisionbythecounselselectedbytheContractor.Full cooperation shall be extended to supplyanyinformationneededorhelpfulinsuchdefense. 16.The Employer Member agrees to abide by the Bylaws of the Fund as adopted by the BoardofDirectorsoftheTexasMunicipalLeague. 17.The Employer Member is a political subdivision of the State of Texas. J8Lln Order t0 have an order|y-complete and well understood basis for contributions to theFund,the current plans and future amendments with respect to Workmen's Compensation rates and premiums of the State Board of Insurance are hereby adopted as a guide but by such adoption it isrecognizedthattheratingstructurepromulgatedbytheStateBoardofInsuranceisnotapplicable to sell insurance and there is no intention to bestow rating authority over this plan of self insurance upon the State Board of Insurance.Any reference at any time in this contact to an insurance term not ordinarily apart of self insurance shall be deemed for convenience only and is not to be con strued as being contrary to the self insurance concept except where the context clearly indicates no other possible interpretation such as but not limited to the reference to "reinsurance". IN WITNESS WHEREOF,the parties have hereunto set their hands by their representatives there unto duly authorized this day of 1974. ~~-IT-'u-TEXAS MUNICIPAL LEAGUEContractNumberWORKMEN'S COMPENSATION JOINT INSURANCE FUND BY N.Alex Bickley,Chairman Austin.Texas The Workmen's Compensation Coordinator for the Employer Member is: FOR NAME Employer Member ADDRESS CITY ZIP by TELEPHONE -.Texas 1 /iiilAkla) k) k) k) k/a/a2aArakla2ZUKAVAILAIVAMMAIKAUE 0 0 ikAaliMAILUSMALUSSAMakiWalalp, TMLWORKMEN'S COMPENSATION JOINT INSURANCE FUND j: 1020 Southwest Tower, Austin, Texas 78701 A Service of the Texas Municipal League) 41 INTERLOCAL AGREEMENT This Contract and Interlocal Agreement. entered into by and between the Texas Municipal League Workmen's Compensation Joint Insurance Fund (hereinafter referred to as "Fund") and the undersigned political subdivision of the State of Texas (hereinafter referred to as "Employer Mem- ber") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workmen's Compensation Act for employees of political subdivisions. C WITNESSETH: 4, The undersigned Employer Member in consideration of the adoption of a plan of self-insurance as authorized in Article 8309h, Vernon's Annotated Texas Statutes, to provide Workmen's Compen- sation benefits at a minimum cost and in further consideration of other political subdivision execut- ing identical interlocal agreements does hereby agree to become a self-insured workmen's LcompensationemployerbybecomingoneofthemembersoftheFundPoolofself-insured Employer Members. The conditions of membership agreed upon by and between the parties are as follows: 4 1. The term of this Contract shall be for a term of three years commencing on July 1, 1974, CI J unless the same is sooner terminated by sixty (60) days written notice of intent to terminate by either party unless otherwise specified under the terms and agreements of this Contract or by the Bylaws of the Fund. The Fund will have the right to terminate this agreement only for non-compliance with paragraphs 8 and 16. A 2. An annual estimated payroll by payroll classifications will be furnished by the Employer CMembertotheFund. It is understood that this is an estimate that shall be adjustable at the end of f each Fund year to reflect the actual payroll on the books of the Employer Member. 40. 3. The Employer Member agrees to pay the premiums payable for the payroll classifications C a' based upon a standard annual premium determined by first computing the rates, using as a guide the classifications of payroll as established by the State Board of Insurance. This premium shall be C modified by the experience modification of the political subdivision if same has previously earned an C experience modification by virtue of having been insured by a workmen's compensation insurer and x having earned an experience modification promulgated by the State Board of Insurance. In the j se-Me of an earned experience modification for the Em6 r-Meir, manual rate as e iis1d by the State Board of Insurance in effect at the beginning of each fund year will be used as a guide to produce a manual as well as a standard premium. The premium payable shall be 75% of the Pstandardpremiumthusobtained. Once the standard annual premium has been computed, the Employer Member agrees to pay the payable premium in twelve (12) equal monthly installments C1 commencing June 15, 1974, with subsequent installments commencing August 1, 1974, provided that „i if the payable premium shall be less than S5,000 such shall be payable in four (4) equal quarterly installments commencing June 15, 1974, with subsequent installments commencing October 1, 1974. It is understood by the Employer Member that there will be a rate adjustment on September 1, 1974, C and at subsequent periods thereafter based upon the increased benefit levels mandated by the Work- men's Compensation Act which rate adjustments will use as a guide those promulgated by the r State Board of Insurance. Ii,-, rail- 1`Ll / w i,, .',,-(k,i-,,is,, w-iii,-.-liy min 1 1imar1 f 11` Liy EMPLOYER MEMBER COPY 4. The estimated payable premium for the Employer Members shall be based upon payroll estimates and shall be payable as provided in 3 above. At the end of each and every Fund year there shall be submitted by the Employer Member actual payrolls as reflected by the books of the Em- ployer Member and any additional amounts payable into the Fund based upon the actual payroll shall be paid and lesser amounts payable shall be adjusted by refund to the Employer Member. The Fund reserves the right to audit the payroll records of any Employer Member. 5. The Fund agrees to use as a guide the workmen's compensation experience rating plan as prescribed by the State Board of Insurance and to calculate and furnish each Employer Member its individual experience modification when earned in accordance with the provisions of such experi- ence rating plan. 6. The Fund agrees that it has obtained aggregate stop loss reinsurance to assure that the in- curred losses and expenses for the total Fund shall not exceed the maximum 75°'0 of standard premiums paid and payable by Employer Members into this Fund. The Employer Members have no joint or several liability other than the maximum 75°%° of standard premium payable by each Em- ployer Member. Any savings to the Fund resulting from overall loss experience less than 60°%° of the standard premium shall be available for dividend credit to future premiums as declared by the Board of Trustees (hereinafter referred to as "Board") from time to time. The Fund shall invest any and all funds that are on deposit with the Fund and the investment earnings from these particu- lar funds shall be used for the benefit of the Employer Members that remain as members of the Fund until such time as the Board deems that it is financially feasible to declare dividends in the form of a further reduced premium to the Employer Members. Such dividend determinations will be made annually. 7. The Fund shall at all times provide for reinsurance of the Fund itself so that the participation of the Employer Members shall at all times be on a non-assessable basis beyond the amounts as set forth in this Contract. The Fund has catastrophe loss protection excess of S50,000.00 for any one accident or occurrence up to a limit of S5,000,000.00 and aggregate stop loss protection excess of 60% aggregate incurred losses to aggregate standard premiums for the total Fund for the initial three year contract period. The Board reserves the right to adjust either one of these reinsurance pro- visions in the event that the fiscal soundness of the Fund will justify such an adjustment and result in a savings to the Employer Members. Before any such adjustment is made, notice will be given to all of the Employer Members together with an accounting from the Fund in order that any Employer Member may appear before the Board to discuss the fiscal soundness of the Board's action. 8. The Undersigned Employer Member agrees that it will cooperate in instituting any and all reasonable safety regulations that may be recommended for the purpose of eliminating or minimiz- ing hazards that would contribute to workmen's compensation losses. In the event that the recom- mendations submitted by the contractor on behalf of the Fund seem unreasonable, the Employer Member has a right to appeal to the Board and the decision of the Board shall then be final. 9. The Employer Member agrees that it will appoint a workmen's compensation coordinator for the Employer Member and that the Fund and its contractor shall not be required to contact any other individual except this one person. Any notice to or any agreements with the workmen's compensa- tion coordinator shall be binding upon the Employer Member. The Employer Member reserves the right to change the coordinator from time to time by giving written notice to the Fund and to the contractor. 10. In addition to the premium as hereinabove set forth there shall be payable a filing fee payable by the Employer Member (currently S7.50) which amount is paid to the Industrial Accident Board for a filing on behalf of the Employer Member. 11. The Fund through the contractor employed by the Fund agrees to handle any and all claims after notice of injury has been given, to prepare all required Industrial Accident Board forms, and to provide a defense. They shall carry on all negotiations with the injured employee or his attorney at the prehearing conferences and negotiate within authority previously granted by the Fund. If a per- sonal appearance by the employer or a co-employee is necessary the expense of this appearance will be paid by the Employer Member. The contractor will retain and supervise legal counsel in behalf of and at the expense of the Fund necessary for the prosecution of any litigation. There will be safety engineering services supplied by the contractor to the Employer Member to assist them in following a plan of loss control that may result in reduced losses. The contractor shall provide all of the services as provided in the proposed service contract entered into by and between the con- tractor and the Fund on behalf of the Employer Member. Not withstanding any provisions of this paragraph, all reports and filings required by the Industrial Accident Board of an employer will be the responsibility of the Employer Member. 12. Each month there shall be supplied to each Employer Member a computer printout involv- ing a statement of claims, claims status, and activity report cumulative for each Fund year. 13. The Employer Member agrees to execute necessary authorization forms permitting the Fund and the contractor to obtain from the State Board of Insurance the experience rating modification for the Employer Member that has previously carried workmen's compensation insurance. Upon any contract termination or non-renewal the Employer Member agrees that the Fund may file with the State Board of Insurance loss and payroll data pertaining to the Employer Member as used to develop experience modification. 14. In the event that the Employer Member fails or refuses to make the payments of premiums as herein provided the Fund reserves the right to terminate such Employer Member by giving ten 10) days written notice and to collect any and all premiums that are earned pro-rata for the period preceding contract termination. Any Employer Member that is terminated hereunder shall not be en- titled to any of the dividends that have not been paid at that time. 15. The undersigned Employer Member does hereby agree that any suit brought by one of its employees pursuant to the provisions of Article 8309h shall be defended in the name of the political subdivision by the counsel selected by the Contractor. Full cooperation shall be extended to supply any information needed or helpful in such defense. 16. The Employer Member agrees to abide by the Bylaws of the Fund as adopted by the Board of Directors of the Texas Municipal League. 17. The Employer Member is a political subdivision of the State of Texas. 18. In order to have an orderly, complete and well understood basis for contributions to the Fund, the current plans and future amendments with respect to Workmen's Compensation rates and premiums of the State Board of Insurance are hereby adopted as a guide but by such adoption it is recognized that the rating structure promulgated by the State Board of Insurance is not applicable to self insurance and there is no intention to bestow rating authority over this plan of self insurance upon the State Board of Insurance. Any reference at any time in this contact to an insurance term not ordinarily a part of self insurance shall be deemed for convenience only and is not to be con- strued as being contrary to the self insurance concept except where the context clearly indicates no other possible interpretation such as but not limited to the reference to "reinsurance". IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives there- unto duly authorized this 3 - . day of u^ E- 1974. 04 - - TEXAS MUNICIPAL LEAGUE Contract Number WORKMEN'S COMPENSATION JOINT INSURANCE FUND aapK/tRe BY N. Alex Bickley, Chairman Austin, Texas The Workmen's Compensation Coordinator for the Employer Member is: FOR CITY OF BAYTOWN NAME J. B. LeFevre Employer Member ADDRESS __ P. 0. Box 424 CITY______ Baytown ZIP - 77520 BY 713 422-8281 Extension 220 Authorized Offic TELEPHONE ATTEST: BAYTOWN Texas EDNA OLIVER, City Clerk