Ordinance No. 4,028Section 2: This ordinance shall take effect immediately 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 the 13th day of December, 1984.
AKL
, Mayor
ATTEST:
EILEEN • , ity clerk
APPROVED:
4� i torney
•
I�.
DKI
SELF,1NS1JItANCE FUND
The Texas Municipal Lague Workers• Compensation joint Insurance Fund (hereinafter rdared to as dw "W,C. Fwhd")'"
anted by action of the Texas Municipal Lague Bard by resolution duly adopter! on the 11th day of Jenuaty.1974 The Tins
Municipal Lague Municipal Liability Joint Self - Insurance Fund was created by actlim of the Texas Municipal Bard; bP
resolution duly adopted on'00 25th day of October. 1981. To more properly relies the true nature of the Texas Municipal Ie gtre
Municipal Liability Joint Self-insurance Fund, the name is hereby lunged to the Taos Municipal League Joint Self -in"
oel and
(hereinafter related to as the -Property-Liability Fund "). The following bylaws shall govern the operation of these Feuds:
1.
PURPOSE AND OBJECTIVES
The 1973 Regular Session of the Texas Legislature adopted Article 8.%Mh which became effective July 1. 1974. Article 83096
states in pare:
"Section 2(a): All political subdivisions of this stare shali become either self- insurers, provide insurance under workeW
compensation insurance contracts or policies or enter into interlocal agreements with otter political subdivisions
providing for self-insurance. extending workers' compensation benefits to their employees.-
Article 8309h also provides in Section 4:
"A joint fund, as herein provided for, maybe established by the concurrence of any two m more political subdivisions. The
fund may be operated under the rules, regulations and bylaws as established by the political subdivisions which de pre to
participate therein Each political subdivision shall be and is hereby empowered to pay into said fund its}xopo:tiomrepett
as due and to contract for the fund, by and through its directors, to nuke the payments duehereunder to the emplopea of
the contracting political subdivision."
In accordance with the provisions set forth in Section 4 above, these bylaws are ps omagr. ed to govern the workers' compensation
self- insurance fund hereby established.
The general objectives are to formulate, develop and administer a program of self- insurance for the membership; to obtain lower
costs for workers' compensation coverage and develop a comprehensive safety program.
ADDITIONAL PURPOSES AND OBJECT IVES
The Texas Municipal League Workers' Compensation Joint insurance Fund, organized and established in 1974 by these bylaws.
has been unable *to cover some of the liabilities inherent in the employee- employer relationship crated by legislative and judicial
decisions that have occurred since its inception. It has also recognised that much of the municipal property in this state is seriously
underinsured, the loss of which`has caused untold hardship to the cirbens of this state.
The Interlocal CooperatitiWA' ct. Article 4413 (32e), T.R.C.S., which provides that local governments may contract wdth each-.
other to perform governitperntal'functions and services, has been interpreted to include all forms of insurance, including self - insurance
(Anorney General Opinion MW -347). In accordance with the Interlocal Cooperation Act and the intetpteation of the Attorney
General of this state, Members of the Fund may contract with each other to establish a separate Property- Liability Fund to be
administered by the Board of Directors established by these bylaws.
The general objectives are to formulate, develop and administer a program of self- insurance for the political subdivisions of this
state to obtain lower costs for property and liability coverages and operate a loss control program to minimre exposure and risks to
political subdivisions and their employees.
2.
NATURE OF THE ORGANIZATION
Each Fund (Workers' Compensation and Property- Liability) shall consist of an unincorporated association of political subdivi-
sions of the State of Texas (hereinafter called Members), which are authotued under Article 8309h V.A.T.S. and Article 4413 (324
T.R•C.S, to become self- insurers and enter into interlocal agreements with other political subdivisions to extend workers' compem-
tion benefits and liability protection for themselves, their officers and employees while acting in their official capacities, as well as
municipal property coverage. Each Member of each Fund shall adopt the rules, regulations and these bylaws promulgated by the Board
of Trustees for each Fund. The Funds are not intended to operate as an insurance company, but rather are intended to be the contracting
mechanism by which each Member provides self - insurance extending workers' compensation benefits to its employees. provides
liability coverage for itself and its employees in their official capacities under the limitations provided by law, and provides municipal
property coverage.. .
9 ON, 4 °1213 y12b
B It may onnena for such professional saviors es h may deem ttmeuary W456V fix the time. nunner and prynhertt thetdor.
ielf 3nnaed rorkers• otunpensatior pool attnteement. s seH- it�swed property- Wbdity pool arrntgmrent, 6rcLr eoesse kiss
C lei w �p ksss inswanex. handling of cLjttu tia4 arft servers. seevtoes maid aitl ;
aeevitxs dirt the
*40 *11 dean expedient for the proper servieiug of those Members wlso tine the serviors of each Ftmd,
D. It shall make provision for props accounting and reporting prooedttres for each with Member: sothst they
taballbeapptisedat
all tinhes of the nattue:of the claims arising within their jurisdiotioris. the etiantser iai which these we beinglisedletia id"
impact of ehc same upon each Fund.
E. It &hall provide form. mud audit of the books of each Fund to be supplied to ea& of the Mambas as tray be requespWL
F. It shall carry out all of the duxes necessary for the props operation and administration of each Fund on behalf of &a Uksmbess
and to that end SW haw all of the powers accessary and desirable for the effective administration of the shift of,=& irtod:
G. It shall keep the man es of the W. C. Fund separate and apart from the monies of the Property - Liability Fund The monies ',
received . for liability coverage and the monies received for property coverafe"be kept separate and apart, indudmg char
investments, and shall be accounted for separately. The Board shall arrange for the invesomgof themonies of &i W -C Ftaad aqd
the Property- Liability Fund so as to keep the same invested according to law and at the bat interest rates obtabtabk- It,shall.
provide for the banking of the monies of the W. C. Fund and the Property- Liability Fund and the props security c#Wr mad all'
investments:
H. The Chairman of the Board shall appoint an Executive Committee of the Board to handle the affairs of tteBoord in bet the
regular Board meetings or any of the called Board meerings, with such functions as may be designated to theExecurive Camtt inee"
Y by the Board by resolution properly adopted.
1. It shall have the authority to terminate membership of any Member that fails to abide by the reasonabk requirements of die Board
concerning payment of -dues and contributions, installation of safety requirements, cooperation with the claims age»'ot
attorneys representing each Fund or any of the Members, or any other action that may be detrimental to the fiscal soundnesior
efficiency of each Fund on behalf of its Members.
). It shall develop and prepare a contract to be signed by each of the Members as they join the W.C. Fund or either of the Property or
Liability programs and shall determine the amount of insurance that shall be purchased by each Fund insofar as catastrophic
coverage, excess Ions coverage or stop loss or other types of insurance are concerned.
K. It may require the securing of a fidelity bond upon each and all of the emT'uyees of rNt Board or upon other persons charged wits
the duty of handling any of the monies or investments of each Fund.
L. It may hire attorneys, accountants or such other professional persons that it may deem necessary for the proper proteetionofeadt
Fund. These persons shall be paid as provided in the contract for hire as executed by the Board.
M. It shall provide for. suitable seals with the following letters upon their faces: "TEXAS MUNICIPAL LEAGUE WORKERS'
COMPENSATIONJOINT INSURANCE FUND" and "TEXAS MUNICIPAL LEAGUE )OINTSELF - INSURANCE FUND."
The seals shall be used for the authentication of legal documents, contracts and other instruments indicating the official action of
the Board.
N. The Board shall have the general power to make and enter into all contracts, leases and agreements necessary or convenient to
carry out any of the powers granted under these bylaws or by any other law. All such contracts• leases and agreements or other
documents herein authorized shall be approved by resolution of the Board and shall be executed by those individuals designated
in such resolution. In the absence of such designation they shall be executed by the Chairman or Vice- Chairman and attested by
the Secretary of the Board.
O. It shall collect interest on all past due accounts not to exceed the amounts allowed under Article 5069 -9.04, T.R.C.S-
P. To keep the property plan provided for under the Property - Liability Fund Contract fully reinsured• provided• however, that the
Board shall, is soon as reserves accumulate and fiscal soundness dictates, assume portions of the reinsured risk.
11.
MEMBERS
Each of the Members shall be required to pay to each Fund the contribution as provided by the contracts between the Fundsand the
Members. Failure to pay the contribution as and when due shall tender the membership of the Members subject to termination by
action of the Board. For the proper protection of the Funds each Member shall be required to make such reasonable safety regulations
and take such safety precautions as may be required by the safety engineering firm representing the Funds. In the event that there isany
disagreement between the Member and the Fund representative, the Member shall have the right to appeal to the Board ands decision of
• the Board shall be final.
TEXAS MUNICIPAL LEAGUE
WORKERS' COMPENSATION JOINT INSURANCE FUND
1020 Southwest Tower, Austin, Texas 78701
This Contract and Interlocal Agreement entered into by and between the Texas
Municipal. League Workers' 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
Workers' Compensation Act for employees of political subdivisions.
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 Workers' Compensation benefits at a minimum cost and in
further consideration of other political subdivisions executing identical
Interlocal Agreements does hereby agree to become a self - insured workers'
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. Definition of terms used in this Interlocal Agreement.
a. "Board refers to the Board of Trustees of the Texas
Municipal League Workers' Compensation Joint Insurance Fund.
b. "Premium" and "Contribution" - are used interchangeably in
some parts of this Interlocal Agreement. "Premium" is used
to identify the rating formulas established by the State
Board of Insurance, which are used as guidelines to estab-
lish Employer Nembers' cash contributions to the Fund. Any
reference at any time in this Interlocal Agreement 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."
c. "Servicing Contractor" - Johnson & Higgins of Texas, Inc.
d. "Manual Rates" - the basic workers' compensation rates
applicable to each classification of employees promulgated by
the Stag• Board of Insurance.
e. "Experience Modifier" - refers to the factor applied to the
manual rates that reflects the political subdivision's loss
experience, which is based on the State Board of Insurance
promulgated experience rating plan.
f. "Standard Consideration" or "Standard Premium" - the amount
n
LJ
5. The Employer Member agrees that it will appoint a Workers'
Compensation Coordinator of department head rank, and that the
Fund and its Servicing Contractor or Subcontractors shall not be
required to contact any other individual except this one person.
Any notice to or any agreement with the Workers' Compensation
Coordinator shall be binding upon the Employer Member. The
s
'
b that is determined y applying the experience modifier of the
Employer Member to the manual rates.
2. The term of this Interlocal Agreement shall be for. a term
commencing 12:01 a.m. October 1, 1984, and terminating 12:01 a.m.
October 1, 1986, 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
�=
Interlbeal Agreement or by the Bylaws of the Fund. The Fund Will
have the right to terminate this agreement only for non-
compliance with paragraphs 3, 4 and 7.
._'.,•
. Annually,
3 y, each Employer Member shall submit to the Fund, on e
Premium Worksheet form supplied by the Fund, its estimated
payroll for each classification of employee. The rates
established by the State Board of Insurance shall be applied to
arrive at a manual premium. If the Employer Member has
established, through experience, a modifier, then the experience
modification of that Employer Member shall be used to arrive at
the standard premium to be paid by the Employer Member. 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,
contribution.
4. The Fund has contracted with the servicing Contractor to supply
loss control services through its Subcontractor, Hartford
Specialty Company (hereinafter referred to as "Hartford "), to the
Employer Member to assist them in following a plan of loss
control that' may result in reduced losses. The Servicing
Contractor through Hartford, shall provide all of the services as
provided in the Service Contract entered into by and between the
_
Servicing Contractor and the Fund on behalf of the Employer
Member. The 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 workers' compensation losses. In the
event that the recommendations submitted by the Servicing
Contractor or Hartford on behalf of the Fund seem unreasonable,
the Employer Member has a right to appeal to the Board of
Trustees. The Board shall hear the objections of the Employer
Member at its next regularly scheduled meeting and its decisions
will be final and binding on all parties.
5. The Employer Member agrees that it will appoint a Workers'
Compensation Coordinator of department head rank, and that the
Fund and its Servicing Contractor or Subcontractors shall not be
required to contact any other individual except this one person.
Any notice to or any agreement with the Workers' Compensation
Coordinator shall be binding upon the Employer Member. The
6. The Fund -, through the Servicing Contractor and its Subcontractor,
GAB Business Services Inc. (hereinafter referred to as "GAB ")
agrees, to handle any and all claims after notice of injury -has
given, to prepare all required Industriaal Accident Boded
forms, ;and provide a defense. The Employer Member hereby
appoints Servicing Contractor and its Subcontractor, GAB, as its
agents ;to act in all matters pertaining to processing and
handling of workers' compensation claims and shall cooperate
fully in supplying any information needed or helpful in such
defense. They shall carry on all negotiations with the injured
employee and his attorney at the preheari.ng conference and
negotiate within authority previously granted by the Fund. If a
.personal_` appearance by the employer or a cc- employee is
necessary, the expense of this appearance will be paid by the
Employer Member. With the advice and consent of the Fund, the
Servicing Contractor, through its Subcontractor, GAB, Will retain
and supervise legal counsel on behalf of and at the expense of
the Fund' necessary for the prosecution of any litigation. All
decisions on individual cases shall be made by the Fund through
the Servicing Contractor and GAB, which includes the decision to
appeal or not to appeal an Industrial Accident Board's final
ruling and decision. However, any Employer Member shall have the
right in any case involving one of its employees, to consult with
the Fund on any decision made by the Servicing Contractor or GAB.
Any suit brought or defended by the Servicing Contractor and the
Fund shall be in the name of the political subdivision.
Notwithstanding any provisions of this paragraph, all reports and
filings required by the Workers' Compensation Law and the
Industrial Accident Board of an employer will be the
responsibility of the Employer Member. It is further understood
that this Agreement does not cover discrimination suits under
Article- 8307c. 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.
7. The Employer Member acknowledges that it has received a copy of
the Bylaws of the Fund and agrees to abide by the Bylaws and any
amendments thereto.
8. The Fund agrees that all Fund transactions will be annually
audited by a nationally recognized, certified public accounting
firm.
9. The Fund, through the Servicing Contractor, will file all
necessary tax forms with the Internal Revenue Service.
41213 -11f.
10. The Fund shall at all times provide for catastrophic excess of
loss and aggregate stop -loss reinsurance as set out in Exhibit A.
11. The fund further agrees to provide a complete range of program
management and management information system (MIS) services to
include, by way of example, but not of limitation, the following:
a. Claims printouts rendered monthly and keyed by designated
Employer Member functions or departments.
b. Breakdown of payments made by compensation and medical.
c. Monthly billing statements.
d. Maintenance of loss and payroll statistics for determination
of the Employer Member's experience modifier under the
experience rating plan.
rr 12. The Employer Member executing this Agreement shall designate in
!' the following space the seating capacity of any aircraft
presently owned or leased by the Employer Member. Further, the
Employer Member agrees to notify the Fund within fifteen (15)
days if any new aircraft are purchased or leased during the term
of this Agreement, and the seating capacity of said newly
acquired aircraft.
U
Contract Number A00 76
The Workers' Compensation Coordinator
For the Employer Member is:
NAME:
ADDRESS:
CITY: ZIP:
TELEPHONE:
TEXAS MUNICIPAL LEAGUE
WORKERS' COMPENSATION JOINT
INSURANCE FUND
BY
Director
Austin, Texas
FOR City of Baytown
Employer Member
BY
Authorized Official
Texas
r:
t
41213 `llh e
EXHIBIT A
TEXAS MUNICIPAL LEAGUE
WORKERS' COMPENSATION JOINT INSURANCE FUND
ADDENDUM TO INTERLOCAL AGREEMENT
CITY OF BAYTOWN
This Addendum to the Interlocal Agreement amends the Interlocal Agreement
where necessary to effectuate its intent but not otherwise.
Employer Member agrees to make monthly contributions equal to 75% of
its standard premium. This contribution will be used to pay
contract service costs and incurred losses. Monies not required for
expenses and losses will be invested. The investment income less
reasonable investment management fees will be credited to the
.Employer Member's equity account on an annual basis.
Employer Member further agrees to make additional contributions on
demand by the Fund, if paid expenses and losses exceed contributions
held by the Fund, subject to the terms of the reinsurance agreement.
Excess contributions may be returned to the Employer Member after
actuarial certification that the Fund holds adequate contributions
to pay ultimate losses.
1. The Fund shall at all times provide for unlimited
catastrophic reinsurance of the Employer Member excess
of $150,000 for any one accident or occurrence.
2. The Fund shall at all times provide for unlimited
aggregate stop -loss reinsurance to assure that paid
losses for the Employer Member shall not exceed a
maximum of 100% of manual or standard contributions,
whichever is greater, per Fund year.
Fund Retention Factor 10.5% of standard
contributions
Claims Administration Charge $100 per claim
It is further agreed that if the Member mould incur lower service
cost for claims administration using the following schedule:
Medical -Only Claims $ 33
Indemnity Claims $202
Incident Reports $ 15
Prehearings Attended $110
ACKNOWLEDGEMENT:
TML Workers' Compensation Joint Insurance Raid
ACKNOWLEDGEMENT:
City of Baytown