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Ordinance No. 4,55961007 --2 ORDINANCE NO. 4559 AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INTERLOCAL AGREEMENT WITH THE TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND TO PROVIDE WORKERS' COMPENSATION BENEFITS TO CITY EMPLOYEES; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF THIRTEEN THOUSAND NINE HUNDRED THIRTEEN AND NO /100 ($13,913.00) DOLLARS; 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 approves an Interlocal Agreement with the Texas Municipal League Workers' Compensation Joint Insurance Fund and City Clerk of the City of Baytown to execute and attest to said agreement to provide workers' compensation benefits for city employees. A copy of said agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and put-poses. Section 2: The City Council hereby authorizes payment of the sum of THIRTEEN THOUSAND NINE HUNDRED THIRTEEN AND NO1100 ($139513.00) DOLLARS to the Texas Municipal League Workers' Compensation Joint Insurance Fund as the City's contribution to the fund. Section 3: 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 7th day of October, 1986. QE�TIT O. HUTTO, Mayor ATTEST: L--) 1Z EILEEN P. HALL, City Clerk GAR W. MITH, Assistant City Attorney 61007 -2a Texas Municipal League Workers' Compensation Joint Insurance Fund Cash -Flow Member Renewal Decision Form It is the intent of to make the following (name of Fund Member) decision concerning participation in the TML Workers' Compensation Joint Insurance Fund effective 10/1/86: 1. Remain a cash -flow member of the Fund on an administrative services only basis, based upon the enclosed Schedule A. (Sign the enclosed Interlocal Agreement and return to TML with this form to execute this option). Authorize the Fund to allow J&H to seek reinsurance while remaining a cash -flow member. 2. Become a member of the guaranteed cost pool program, according to the enclosed schedule B. Authorize the Fund to allow J&J to seek reinsurance while remaining a pool member. 3. _Withdraw from Fund membership effective 10/1/86. If this form is not received by 10/1/86, membership in the Fund on an ad- ministrative services only basis will be continued until such time as the decision form is received, with pro -rata contribution adjustments accordingly. I, the undersigned, as an authorized representative of (Name of Fund Member) do hereby commit the Fund Member to the course of action indicated above. Signature of Authorized Official title /Date EXHIBIT xi September 23, 1986 TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND 211 East Seventh Street, Suite 1020, Austin Texas 78701 INTERLOCAL AGREEMENT This Contract and Interlocal Agreement is 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' com- pensation 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 estabrlished by the State Board of Insurance, which are used as guidelines to establish Employer Members' 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 ex- cept where the context clearly indicates no other possible inter- pretation such as, but not limited to, the reference to "reinsurance." c. "Manual Rates " - -the basic workers' compensation rates applicable to each classification of employees promulgated by the State Board of Insurance. d. "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 in- surance plan. e. "Standard Rates " - -rates that are determined by applying the ex- perience modifier of each individual Employer Member to the annual rates. September 23, 1986 61007 -2c f. "Fund Modifier " - -the percentage figure that is applied to the standard rates by the Fund to reflect the savings to the Employer Member by entering into the Interlocal Agreement. g. "Fund Year " -- October 1 through September 30. h. "Agreement Period " - -The continuous period since the Employer Mem- ber first, became a Member of this Fund excluding, however, any period or periods of time therein that the Employer Member did not participate as a Member of the Fund. 2. The Board of Trustees, acting through its agents and TML staff, is res- ponsible for the administration of all Fund business on behalf of the Employer Members. 3. Statutory workers' compensation benefits are provided for paid employees of the Employer Member only. The Employer Member may extend statutory coverage to the following class or classes of volunteers by specific endorsement to the Interlocal Agreement: elected officials; volunteer firemen; police reserves; volunteer ambulance /ems attendants; all inside volunteers; all outside volunteers. Provisions exist for reporting es- timated annual payroll substitute figures which shall be used to develop an annual contribution for this additional statutory coverage. ¢. The term of this Agreement and the self- insurance provided to the Em- ployer Member shall be continuous commencing 12:01 am on the date desig- nated in this Agreement until terminated as provided below. This Agreement may be terminated by either party giving to the other sixty (60) days prior written notice of intent to terminate except the Employer Member may terminate this Agreement and its statutory coverages thereunder without giving the sixty (60) days notice if the reason is because of a change by the Fund in the Employer Member's contribution, provided that no termination by the Employer Member shall be effective prior to the date that written notice of termination is actually received in the offices of the Texas Municipal League Workers' Compensa- tion Joint Insurance Fund and provided further that the Employer Member agrees to and shall pay the applicable premium and contribution for those coverages it is terminating until the date the notice of termina- tion is actually received by the Fund. It is the intention of all the parties that the Member's statutory coverages under this agreement shall remain in full force and effect from Fund Year to Fund Year, subject to the terms, conditions and limitations that the Fund may require to protect its' solvency and to comply with reinsurance requirements, until notice of termination is given as herein provided. Realizing that the Employer Member needs the earliest possible information concerning the contribution that will be required for any new Fund Year, the Fund will endeavor to provide this information as soon as possible before the beginning of each new Fund Year. The Fund will have the right to terminate this agreeement only for non- compliance with Paragraphs 5, 7, and 10. September 23, 1986 61007 -2d 5. The Employer Member and the Fund agree that this Agreement is a "cash - flow" Agreement. The Employer Member assumes financial responsibility for all losses under the deductible attachment point indicated on the attached Schedule A. However, it shall be the responsibility of the Fund to make initial payment for all such losses under the deductible attachment point from the Escrow Account described below, remitting to the Employer Member a monthly billing statement indicating amounts of such payments made on behalf of the Employer Member. The Employer Mem- ber shall promptly reimburse the Fund for all such payments. Annually, each Employer Member shall submit to the Fund on a Premium Worksheet form supplied by the Fund, its estimated payroll for each classification of employee. The rates established by the Board of Trustees shall be used to arrive at a manual premium. If the Employer Member has established, through experience, a modifier, then the ex- perience 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. It is understood by the Employer Member that there will be contribution adjustments based upon the in- creased benefit levels mandated by the Texas Workers' Compensation Act. The Employer Member agrees to fund at the inception of this Interlocal Agreement and maintain with the Fund a loss payment Escrow Account which shall be equal to two (2) months of estimated losses, based upon the preceeding twelve (12) month period. This Escrow Account shall be ad- justed at least annually prior to December 1, and the Fund shall have the option of making interim adjustments as may be necessary to maintain an amount equal to two (2) months of actual paid losses. The Employer Member agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, a deposit premium equal to 25% of the annual reinsurance (catastrophic excess of loss and aggregate stop -loss) charges. The balance of such reinsurance charges shall be payable in ten (10) equal monthly installments. Monthly billing to the Employer Member will indicate a current amount due of 1/12 of the actual annual administration fee, and 1/12 of the estimated annual fee for the follow- ing; claims handling, loss control, and management information system (MIS) reports. An audit adjustment for all charges billed on an esti- mated basis after the end of each Fund Year will reflect actual fees incurred, and the resulting debit or credit applied. 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 to 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. September 23, 1986 61007 -2e In the event that the Employer Member fails or refuses to make the pay- ments 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. 6. The Fund shall maintain adequate protection from catastrophic losses to protect its financial integrity. Aggregate protection shall also be maintained to ensure that the Employer Member shall at no time be asses- sed. The Employer Member's contributions shall be limited to that amount as calculated under this Agreement. Notwithstanding the provision of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection out- lined above and /or amend such protection as it finds available or it deems necessary to maintain the fiscal soundness of the Fund at the beginning of or during any Fund year. If excess and /or aggregate reinsurance is not available, the Fund reser- ves the right to retain a portion of the excess contributions for self - funding such excess and /or aggregate protection. 7. The Fund has contracted to supply loss control services to the Employer Members to assist them in following a plan of loss control that -may result in reduced losses. The Contractor shall provide all of the ser- vices as provided in the Service Contract entered into by and between the Contractor and the Fund on behalf of the Employer Member. The Em- ployer 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' com- pensation 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 of Trustees. The Board shall hear the objections of the Employer Member at its next regularly scheduled meeting and its decision will be final and binding on all parties. Any Employer Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately. 8. The Employer Member agrees that it will appoint a Workers' Compensation Coordinator of department head rank, and that the Fund shall not be re- quired to contact any other individual except this one person. Any notice to or any agreements with the Workers' 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. 9. The Fund, through the TML Staff and the Contractor, agrees to handle any and all claims after notice of injury has been given, to prepare all required Industrial Accident Board forms, and provide a defense. The Employer Member hereby appoints the TML Staff and the Contractor 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. 61007 -2f September 23, 1986 The Fund shall be responsible for seeing that all negotiations are car- ried on with the injured employee and his attorney at the prehearing conference and that negotiations are within authority previously granted by the Fund. If a personal appearance by the employer or a co- employee is necesary, the expense of this appearance will be paid by the Employer Member. With the advice and consent of the Fund, the TML staff and Con- tractor 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 in individual cases shall be made by the Fund through the TML Staff and the Contractor, 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 an any decision made by the TML Staff or the Contractor. The Board shall hear the objections of the Employer Member at its next regularly scheduled meeting and its decison will be final and binding on all parties. Any suit brought or defended by the Contractor and the Fund shall be in the name of the political subdivision. Notwithstanding any provisions of this para- graph, all reports and filings required by the Workers' Compensation Law and the Industrial Accident Board of any employer will be the respon- sibility of the Employer Member. It is further understood that this Agreement does not cover discrimination suits under Article 8307c. There shall be supplied quarterly to each Employer Member a computer printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year. 10. The Employer Member acknowledges that it has received a copy of the By- laws of the Fund and agrees to abide by the Bylaws and any amendments thereto. 11. The Fund agrees that all Fund transactions will be annually audited by a nationally recognized certified public accounting firm. 12. The Fund is responsible for the filing of all necessary tax forms with the Internal Revenue Service. 13. The Employer Member executing this Agreement shall designate in the fol- lowing space the seating capacity of any aircraft presently owned or leased by that Employer Member. Further, the employer Member agrees to notify the Fund within fifteen (15) days if any new aircraft are pur- chased or leased during the term of this Agreement, and the seating capacity of said newly acquired aircraft. September 23, 1986 61007 -2g 14. The Fund agrees to provide a complete range of program management and 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 or medical. c. Monthly billing statements for reimbursement of current payments plus Contractor fees. d. Maintenance of loss and payroll statistics for determination of the City's experience modifier under the experience rating plan. 15. The Employer Member further agrees to hold the Fund harmless from any and all claims (including attorney fees) that may be asserted against the Fund for the non-- payment of any claims due to the failure of the Employer Member to maintain adequate reserves for the payment of claims. In witness whereof, the parties hereunto set their hands by their representa- tives thereunto duly authorized this day of TO BE COMPLETED BY THE FUND MEMBER: Name of Fund Coordinator (See paragraph 8): Title Mailing Address City Zip Signature of Authorized City Official: Title Date TO BE COMPLETED BY THE FUND: Effective Date of this Agreement City Name Signature of Authorized Fund Official Title Date Phone Contract Number Texas Municipal League Workers' Compensation Joint Insurance Fund Cash-Flow Member Renewal Decision Form It is the intent of City of Baytown to make the following name of Fund Member) decision concerning participation in the TML Workers' Compensation Joint Insurance Fund effective 10/1/86: 1. X Remain a cash-flow member of the Fund on an administrative services only basis, based upon the enclosed Schedule A. (Sign the enclosed Interlocal Agreement and return to TML with this form to execute this option) . X Authorize the Fund to allow J&H to seek reinsurance while remaining a cash-flow member. 2. Become a member of the guaranteed cost pool program, according to the enclosed schedule B. Authorize the Fund to allow J&H to seek reinsurance while remaining a pool member. 3. Withdraw from Fund membership effective 10/1/86. If this form is not received by 10/1/86, membership in the Fund on an ad- ministrative services only basis will be continued until such time as the decision form is received, with pro-rata contribution adjustments accordingly. I, the undersigned, as an authorized representative of City of Baytown Name of Fund Member) do hereby commit the Fund Member to the course of action indicated above. OP S• gnature of .ut orized Official Mayor October 13, 1986 Title/Date September 23, 1986 Exhibit A Texas Municipal League Workers' Compensation Joint Insurance Fund Addendum to Interlocal Agreement Baytown Contract #A0076 Effective Date: 10/1/86 Expiration Date: 9/30/87 1 . The amount of the escrow account described fully in section 5 of this Interlocal Agreement for the annual period referenced above shall be 11 ,377.00. 2. The administrative fee shall be calculated at an annual amount of 2.5% of standard premium, or $13,913.00. 3. It is mutually agreed that the fees payable for services outlined in sec- tion 5 of this Interlocal Agreement shall be based on the following schedule: Claims 37.00 medical only 263.00 indemnity 130.00 pre-hearing 15.00 report only 45.00 rehabilitation MIS 10.85 per claim Loss Control 69.00 per hour Payroll Audits 42.00 per hour September 23, 1986 TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND 211 East Seventh Street, Suite 1020, Austin Texas 78701 INTERLOCAL AGREEMENT This Contract and Interlocal Agreement is 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' com- pensation 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 'estab;lished by the State Board of Insurance, which are used as guidelines to establish Employer, Members' 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 ex- cept where the context clearly indicates no other possible inter- pretation such as, but not limited to, the reference to reinsurance." c. "Manual Rates"--the basic workers' compensation rates applicable to each classification of employees promulgated by the State Board of Insurance. d. "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 in- surance plan. e. "Standard Rates"--rates that are determined by applying the ex- perience modifier of each individual Employer Member to the annual rates. September 23, 1986 f. "Fund Modifier"--the percentage figure that is applied to the standard rates by the Fund to reflect the savings to the Employer Member by entering into the Interlocal Agreement. g. "Fund Year"--October 1 through September 30. h. "Agreement Period"--The continuous period since the Employer Mem- ber first became a Member of this Fund excluding, however, any period or periods of time therein that the Employer Member did not participate as a Member of the Fund. 2. The Board of Trustees, acting through its agents and TML staff, is res- ponsible for the administration of all Fund business on behalf of the Employer Members. 3. Statutory workers' compensation benefits are provided for paid employees of the Employer Member only. The Employer Member may extend statutory coverage to the following class or classes of volunteers by specific endorsement to the Interlocal Agreement: elected officials; volunteer firemen; police reserves; volunteer ambulance/ems attendants; all inside volunteers; all outside volunteers. Provisions exist for reporting es- timated annual payroll substitute figures which shall be used to develop an annual contribution for this additional statutory coverage. 4. The term of this Agreement and the self-insurance provided to the Em- ployer Member shall be continuous commencing 12:01 am on the date desig- nated in this Agreement until terminated as provided below. This Agreement may be terminated by either party giving to the other sixty (60) days prior written notice of intent to terminate except the Employer Member may terminate this Agreement and its statutory coverages thereunder without giving the sixty (60) days notice if the reason is because of a change by the Fund in the Employer Member' s contribution, provided that no termination by the Employer Member shall be effective prior to the date that written notice of termination is actually received in the offices of the Texas Municipal League Workers' Compensa- tion Joint Insurance Fund and provided further that the Employer Member agrees to and shall pay the applicable premium and contribution for those coverages it is terminating until the date the notice of termina- tion is actually received by the Fund. It is the intention of all the parties that the Member's statutory coverages under this agreement shall remain in full force and effect from Fund Year to Fund Year, subject to the terms, conditions and limitations that the Fund may require to protect its' solvency and to comply with reinsurance requirements, until notice of termination is given as herein provided. Realizing that the Employer Member needs the earliest possible information concerning the contribution that will be required for any new Fund Year, the Fund will endeavor to provide this information as soon as possible before the beginning of each new Fund Year. The Fund will have the right to terminate this agreeement only for non- compliance with Paragraphs 5, 7, and 10. September 23, 1986 5. The Employer Member and the Fund agree that this Agreement is a "cash- flow" Agreement. The Employer Member assumes financial responsibility for all losses under the deductible attachment point indicated on the attached Schedule A. However, it shall be the responsibility of the Fund to make initial payment for all such losses under the deductible attachment point from the Escrow Account described below, remitting to the Employer Member a monthly billing statement indicating amounts of such payments made on behalf of the Employer Member. The Employer Mem- ber shall promptly reimburse the Fund for all such payments. Annually, each Employer Member shall submit to the Fund on a Premium Worksheet form supplied by the Fund, its estimated payroll for each classification of employee. The rates established by the Board of Trustees shall be used to arrive at a manual premium. If the Employer Member has established, through experience, a modifier, then the ex- perience 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. It is understood by the Employer Member that there will be contribution adjustments based upon the in- creased benefit levels mandated by the Texas Workers' Compensation Act. The Employer Member agrees to fund at the inception of this Interlocal Agreement and maintain with the Fund a loss payment Escrow Account which shall be equal to two (2) months of estimated losses, based upon the preceeding twelve (12) month period. This Escrow Account shall be ad- justed at least annually prior to December 1 , and the Fund shall have the option of making interim adjustments as may be necessary to maintain an amount equal to two (2) months of actual paid losses. The Employer Member agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, a deposit premium equal to 25% of the annual reinsurance (catastrophic excess of loss and aggregate stop-loss) charges. The balance of such reinsurance charges shall be payable in ten (10) equal monthly installments. Monthly billing to the Employer Member will indicate a current amount due of 1/12 of the actual annual administration fee, and 1/12 of the estimated annual fee for the follow- ing: claims handling, loss control, and management information system MIS) reports. An audit adjustment for all charges billed on an esti- mated basis after the end of each Fund Year will reflect actual fees incurred, and the resulting debit or credit applied. 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 to 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. September 23, 1986 In the event that the Employer Member fails or refuses to make the pay- ments 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. 6. The Fund shall maintain adequate protection from catastrophic losses to protect its financial integrity. Aggregate protection shall also be maintained to ensure that the Employer Member shall at no time be asses- sed. The Employer Member's contributions shall be limited to that amount as calculated under this Agreement. Notwithstanding the provision of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection out- lined above and/or amend such protection as it finds available or it deems necessary to maintain the fiscal soundness of the Fund at the beginning of or during any Fund year. If excess and/or aggregate reinsurance is not available, the Fund reser- ves the right to retain a portion of the excess contributions for self- funding such excess and/or aggregate protection. 7. The Fund has contracted to supply loss control services to the Employer Members to assist them in following a plan of loss control that .may result in reduced losses. The Contractor shall provide all of the ser- vices as provided in the Service Contract entered into by and between the Contractor and the Fund on behalf of the Employer Member. The Em- ployer 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' com- pensation 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 of Trustees. The Board shall hear the objections of the Employer Member at its next regularly scheduled meeting and its decision will be final and binding on all parties. Any Employer Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately., 8. The Employer Member agrees that it will appoint a Workers' Compensation Coordinator of department head rank, and that the Fund shall not be re- quired to contact any other individual except this one person. Any notice to or any agreements with the Workers' 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. 9. The Fund, through the TML Staff and the Contractor, agrees to handle any and all claims after notice of injury has been given, to prepare all required Industrial Accident Board forms, and provide a defense. The Employer Member hereby appoints the TML Staff and the Contractor 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. September 23, 1986 The Fund shall be responsible for seeing that all negotiations are car- ried on with the injured employee and his attorney at the prehearing conference and that negotiations are within authority previously granted by the Fund. If a personal appearance by the employer or a co-employee is necesary, the expense of this appearance will be paid by the Employer Member. With the advice and consent of the Fund, the TML staff and Con- tractor 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 in individual cases shall be made by the Fund through the TML Staff and the Contractor, 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 TML Staff or the Contractor. The Board shall hear the objections of the Employer Member at its next regularly scheduled meeting and its decison will be final and binding on all parties. Any suit brought or defended by the Contractor and the Fund shall be in the name of the political subdivision. Notwithstanding any provisions of this para- graph, all reports and filings required by the Workers' Compensation Law and the Industrial Accident Board of any employer will be the respon- sibility of the Employer Member. It is further understood that this Agreement does not cover discrimination suits under Article 8307c. There shall be supplied quarterly to each Employer Member a computer printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year. 10. The Employer Member acknowledges that it has received a copy of the By- laws of the Fund and agrees to abide by the Bylaws and any amendments thereto. 11 . The Fund agrees that all Fund transactions will be annually audited by a nationally recognized certified public accounting firm. 12. The Fund is responsible for the filing of all necessary tax forms with the Internal Revenue Service. 13. The Employer Member executing this Agreement shall designate in the fol- lowing space the seating capacity of any aircraft presently owned or leased by that Employer Member. Further, the employer Member agrees to notify the Fund within fifteen (15) days if any new aircraft are pur- chased or leased during the term of this Agreement, and the seating capacity of said newly acquired aircraft. September 23, 1986 14. The Fund agrees to provide a complete range of program management and 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 or medical. c. Monthly billing statements for reimbursement of current payments plus Contractor fees. d. Maintenance of loss and payroll statistics for determination of the City' s experience modifier under the experience rating plan. 15. The Employer Member further agrees to hold the Fund harmless from any and all claims (including attorney fees) that may be asserted against the Fund for the non-payment of any claims due to the failure of the Employer Member to maintain adequate reserves for the payment of claims. In witness whereof, the parties hereunto set their hands by their representa- tives thereunto duly authorized this day of TO BE COMPLETED BY THE FUND MEMBER: Name of Fund Coordinator (See paragraph 8) : Stewart Ellenberg Title Risk Manager Mailing Address P. O. Box 424 City Baytown Zip 77522 Phone 422-8281 Ext . 265 ignature of Auth zed City Official : Mayor 10/13/86 Title/Date TO BE COMPLETED BY THE FUND: Effective Date of this Agreement l0/ /le6) City Name agy TOW/J Contract Number AOD'76 Signature of Au orized Fund Official oaa18 Title/Da e