Ordinance No. 2,2527648
ORDINANCE NO. 2252
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
AN INTERLOCAL AGREEMENT WITH THE TEXAS MUNICIPAL LEAGUE
WORKMEN'S COMPENSATION JOINT INSURANCE FUND FOR THE
PURPOSE OF PROVIDING WORKMEN'S COMPENSATION BENEFITS
FOR EMPLOYEES OF THE CITY OF BAYTOWN 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, hereby authorizes and directs the Mayor and City
Clerk of the City of Baytown to execute and attest to an
Interlocal Agreement with the Texas Municipal League Workmen's
Compensation Joint Insurance Fund for the purpose of providing
Workmen's Compensation Benefits for employees of the City of
Baytown. A copy of said agreement 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 this 9th day
of June 1977.
ol C11
TOM GENTRY, Mayor
ATTEST:
E_ : ,EN P. HALL,
ie' X2�r�-
City Clerk
APPROVED:
NEEL R A D ON, City Attorney
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EXHIBIT "A"
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1020 Southwest Tower, Austin, Texas 78701
(A Service of the Texas Municipal League)
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 Member ") 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� The undersigned
authorized in Article
benefits at a minimu
I Interlocal agreements
becoming one of the
I membership agreed up
WITNESSETH:
Employer Member in consideration of the adoption of a plan of self- insurance as
8309h, Vernon's Annotated Texas Statutes, to provide Workmen's Compensation
m cost and in further consideration of other political subdivisions executing identical
does hereby agree to become a self - insured workmen's compensation employer by
members of the Fund Pool of self- insured Employer Members. The conditions of
on by and between the parties are as follows:
1. The term of this Contract shall be for a to
terminating 12:01 a.m. July 1, 1980, unless the same is
Intent to terminate by either party unless otherwise
Contract or by the Bylaws of the Fund. The Fund will
non - compliance with paragraphs 8, 14 and 16.
rm commencing 12:01 a.m`Ju�' 't 1977
sooner terminated by sixty (60) days written
specified under the terms and agreement s
have the right to terminate this agreement
and
notice of
of this
only for
2. An annual estimated payroll by payroll classification 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. In the absence of an earned experience modification for the
Employer Member, the manual rate as established 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 Fund will
endeavor to develop a specific experience rating plan for the Fund and some modification of the classification
systems where appropriate and feasible to more truly reflect safety and experience savings of Employer
Members. 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, in advance, commencing immediately, with subsequent installments due the
first of each month thereafter, provided that if the payable premium shall be less than $5,000, such shall be
payable in four (4) equal quarterly Installments in advance, commencing Immediately, with subsequent
installments due the first of each quarter thereafter. It is understood by the Employer Member that there will
be rate adjustments based upon the increased benefit levels mandated by the Workmen's Compensation Act
and those promulgated by the State Board of Insurance.
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 Employer Member and
EMPLOYER MEMBER COPY
Mwomitw and Return All Conlesl
7651
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. A direct field audit shall be made of all Employer Members at least
once in every 36 month period, effective July 1, 1977, and each Employer Member with annual standard
premiums in excess of $20,000 shall be audited annually. Every Employer Member shall give their full
cooperation In every field audit.
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 experience rating plan.
6. The Fund agrees that it has obtained aggregate stop loss reinsurance to assure that the incurred
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 Employer Member. Any savings to the Fund
shall be available for dividend determination 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 particular 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. 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 $100,000.00 for any one accident or occurrence
up to a limit of $15,000,000.00 and aggregate stop loss protection excess of 70% aggregate incurred losses to
aggregate standard premiums for the total Fund for this contract period. The Board reserves the right to
adjust either one of these reinsurance provisions 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 minimizing hazards that would
contribute to workmen's compensation losses. In the event that the recommendations 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 compensation 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 an annual filing fee
payable by the Employer Member (currently $7.50) 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. Employer Member hereby appoints Contractor as its agent to act in all matters pertaining to
processing and handling of workmen's compensation claims. 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 personal 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 Contractor and the Fund on behalf
of the Employer Member. Notwithstanding 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. There shall be supplied periodically to each Employer Member a computer printout involving 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
Contactor 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.
7652
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 entitled to any of the dividends
that have not been paid at the 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.
17. The Employer Member Is a political subdivision of the State of Texas and will be bound by the
provisions of Article 8309h of the Texas Workmen's Compensation Act as amended or as may hereafter be
amended during the term of this agreement. All decisions in individual cases to appeal awards of the
Industrial Accident Board shall be made by the Fund, but the Employer Member shall have a right to appeal
to the Board where decisions shall be final. It is further understood that this agreement does not cover
discrimination suits under Article 8307c.
18. The Fund agrees that all Fund Transactions will be annually audited by a nationally recognized,
certified professional accounting firm.
19. In the event an employee's Injury is caused by a third party and any recovery from the third party is
made, the Employer Member agrees that the amount of said recovery shall apply first to reimburse the Fund
for Its compensation and medical payments and expenses in handling and defending said claim until Fund Is
fully reimbursed.
20. 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 suclicabletionsIt is eco n iz and the erasi no
* .
structure promulgated by the State Board of Insurance is not app
intention to bestow rating authority over this plan of self- insurance upon the State Board of Insurance. Any
reference at any time in this contract to an insurance term not ordinarily a part of self - insurance shall be
deemed for convenience only and is not to be construed 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."
By entering into this agreement, each of the participating Employer 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
Employer 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 provide for their employees
through "self- insurance" the workmen's compensation benefits adopted by Article 8309h. As the
administrators of the self- insurance Fund, the Board shall primarily and constantly keep foremost in their
deliberations and decisions in operating the Fund that each of the participating Employer Members Is a
"self- insured." At least annually, the Board shall carefully review, study and consider the actual claims or
loss experience (Including, reserves for future claims payments) of each of the Employer Members, the
experience rating modification developed or earned by each of the Employer Members, the pro rata savings
to the Fund resulting from overall loss experience attributed to each of the Employer Members, the pro rata
portion of any investment earnings of the Fund attributed to each Employer Member, and the pro rata
portion of the cost of all catastrophic loss protection reinsurance and aggregate stop loss reinsurance
allocated to each Employer Member, as well as the pro rata allocation, as determined by the Board of the
other and necessary administrative expenses of the Fund, in order to reasonably determine the actual pro
rata cost, expense and loss experience of each Employer Member in order to maintain as nearly as possible
an equitable and reasonable "self- Insurance" administration of the Fund as applied to each Employer
Member.
w
7653
IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto
duly authorized this day of
Contract Number
TEXAS MUNICIPAL LEAGUE
WORKMEN'S COMPENSATION
JOINT INSURANCE FUND
BY
Chairman
Austin, Texas
The Workmen's Compensation Coordinator
for the Employer Member is:
FOR
NAME
ADDRESS
CITY
ZIP
BY
Employer Member
Authorized Official
TELEPHONE , Texas
[Execute and Return All Copies]
IP
Ai
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WORKMEN'S COMPENSATION A
._,
TMLJOINT INSURANCE FUND A
P. c
ill 1020 Southwest bower, Austin, 'Texas 787(11 Ka
A
(A Service of the Texas illunicipal League)
C
R
C
INTERLOCAL AGREEMENT c
This Contract and Interlocal Agreement entered into by and between the Texas Municipal
F League Workmen's Compensation Joint Insurance Fund (hereinafter referred to as "Fund") and the 4
►��', undersigned political subdivision of the State of Texas (hereinafter referred to as "Employer Mem- 4
ber") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas
111 Workmen's Compensation Act for employees of political subdivisions. Z
C
F, WITNESSETH: A
The undersigned Employer Member in consideration of the adoption of a plan of self-insurance A
as authorized in Article 8309h, Vernon's Annotated Texas Statutes, to provide Workmen's Compen-
1 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 'i
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:
-.: El
1. The term of this Contract shall be for a 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
Weither 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.
n 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
n each Fund year to reflect the actual payroll on the books of the Employer Member.
n
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 an earned 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 fund year will be used as a
p, 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 guide those promulgated by the
State Board of Insurance.
IMIri i cW n n MIFIFI [�Ci er n cIr MfririMMINV [Y [ chi [ [ ii j
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 $5,000,000.00 and aggregate stop loss protection excess of
604)/0 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 . -- uivE 1974.
•
0074 TEXAS MUNICIPAL LEAGUE
Contract Number WORKMEN'S COMPENSATION
JOINT INSURANCE FUND
aapK/
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 Offi
TELEPHONE
ATTEST: - BAYTOWN , Texas
EDNA OLIVER, City Clerk