Ordinance No. 1,629ORDINANCE NO.1629
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS,
AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK OF THE CITY
OF BAYTOWN TO EXECUTE AND ATTEST TO THE SUPPLEMENT TO INTERLOCAL
AGREEMENT,TEXAS MUNICIPAL LEAGUE WORKMEN'S COMPENSATION JOINT
INSURANCE FUND AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1:That the City Council of the City of Baytown,Texas,herefey
authorizes and directs the Mayor and City Clerk of the City of Baytown to ex
ecute and attest to the Supplement to Interlocal Agreement,Texas Municipal
League Workmen's Compensation Joint Insurance Fund.A copy of said Supplement
is attached hereto,marked Exhibit "A,"and made a part hereof 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,READ and PASSED by the affirmative vote of the City Council
of the City of Baytown this25th day of July ,1974.
TOM GENTRY,Mayor V
ATTEST:
EDNA OLIVER,City Clerk
APPROVED:
NEEL RICHARDSON,City Attorney
EXHIBIT "A"
^SUPPLEMENT TO
P INTERLOCAL AGREEMENT
TML WORKMEN'S COMPENSATION JOINT
INSURANCE FUND
By entering into this Agreement each of the participating Fund Members agrees to pay into the
Fund its proportionate part as due hereunder and for the Fund,in accordance with the provisions
hereof to make the payments due under the Workmen's Compensation Act to the employees of the
participating Fund Members.It is recognized that this Agreement is between concurring political
subdivisions,as authorized by Article 8309h.Revised Civil Statutes of Texas,as amended,to pro
vide for their employees through "self-insurance"the workmen's compensation benefits adopted by
Article 8309h.As the administrators of the self-insurance Fund the Trustees shall primarily andcon
stantly keep foremost in their deliberations and decisions in operating the Fund that each of the
participating Fund Members is a "self-insured".At least annually the Trustees shall carefully review,
study and consider the actual claims or loss experience (including reserves for future claims pay
ments)of each of the Fund Members,the experience rating modification developed or earned by
each of the Fund Members,the pro rata savings to the Fund resulting from overall loss experience
attributed to each of the Fund Members,the pro rata portion of any investment earnings of the Fund
attributed to each Fund Member,and the pro rata portion of the cost of all catastrophic loss protec-
-#***tion insurance and aggregate stop loss reinsurance allocated to eachFund Member,as well as the
'*pro rata allocation,as determined by the Trustees,of the other and necessary administrative expenses
jf of theFund,in order to reasonably determine the actual pro rata cost,expense and loss experience
of each Fund Member in order to maintain as nearly as possible an equitable and reasonable "self-
insurance"administration of the Fund as applied to each Fund Member.
In order to further assure that the Fund will be administered on such a "self-insurance"basis;
(1)The Fund shall adopt the workmen's compensation experience rating plan as prescribed by
the State Board of Insurance for the purpose of producing an individual Fund Member's own experi
ence rated premium level to measure the individual Fund Member's proportionate contribution due
and payable to the Fund.
(2)The Fund shall annually distribute to Fund Members all savings brought about through (1)
loss experience of less than 60%of standard premium and (2)the investment earnings from all
funds on deposit with the Fund,and such distribution shall equitably recognize the individual loss
experience of each Fund Member.
(3)Notwithstanding anything in Paragraph 14.the Fund agrees that each Fund Member shall
be entitled to and shall receive a proportionate distribution of any such savings by the Fund.
(4)The Fund agrees that all Fund Transactions will be annually audited by a nationally recog
nized certified professional acccounting firm.
CITYOF BAYTOWN
Tom Gentry,Mayor
TEXAS MUNICIPAL LEAGUE
WORKMEN'S COMPENSATION
CoatBflJfcNumber JOINT INSURANCE FUND
ATTEST:
Edna Oliver,City Clerk