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Ordinance No. 7,785960912 --8 ORDINANCE NO. 7785 ® AN ORDINANCE RENEWING THE INTERLOCAL AGREEMENT WITH THE TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND TO PROVIDE WORKERS' COMPENSATION BENEFITS TO CITY. -.EMPLOYEES, AUTHORIZING .PAYMENT ..B.Y__THE- .CITY,..OF. BAYTOWN FOR MONTHLY CLAIMS AS INCURRED, ADJUST ESCROW NECESSARY TO MEET SIXTY (60) DAYS AVERAGE CLAIMS REQUIREMENT AND PROJECTED PAYMENT OF FOUR HUNDRED THOUSAND AND NO / 100 DOLLARS ($400,000.00) FOR SERVICE CHARGES; RENEWING THE INTERLOCAL AGREEMENT WITH TEXAS MUNICIPAL LEAGUE FOR THE ANNUAL LIABILITY AND PROPERTY INSURANCE PROGRAM, AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF THREE HUNDRED SIXTY -NINE THOUSAND ONE HUNDRED THIRTY -SIX AND NO /100 DOLLARS ($369,136.00) AND THE SUM OF ONE HUNDRED FIFTEEN THOUSAND AND NO /100 DOLLARS ($115,000.00) FOR DEDUCTIBLES; MAKING OTHER PROVISIONS RELATED THERETO; 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 renewal of the Interlocal Agreement with the Texas Municipal League Workers' Compensation Joint Insurance Fund to provide workers' compensation benefits for city employees, a copy of which is attached hereto as Exhibit "A." Section 2: The City Council hereby authorizes payment to the Texas Municipal League Workers' Compensation Joint Insurance Fund for monthly claims as incurred, adjust escrow necessary to meet sixty (60) days average claims requirement and projected payment of FOUR HUNDRED THOUSAND AND NO / 100 DOLLARS ($400,000.00) for service charges. Section 3: That the City Council of the City of Baytown, Texas, hereby approves renewal of the Interlocal Agreement withTexas Municipal League for the Annual Liability and Property Insurance Program, a copy of which is attached hereto as Exhibit "B." Section 4: The City Council hereby authorizes payment to the Texas Municipal League the sum of THREE HUNDRED SIXTY -NINE THOUSAND ONE HUNDRED THIRTY -SIX AND NO /100 DOLLARS ($369,136.00) for the annual liability and property insurance program and authorizes payment of the sum of ONE HUNDRED FIFTEEN THOUSAND AND NO 1100 DOLLARS ($115,000.00) for deductibles on liability coverage. Section 5: That pursuant to the provisions of Texas Local Government Code Annotated §252.048, the City Manager is hereby granted general authority to approve any change order involving a decrease or an increase in costs of FIFTEEN THOUSAND AND NO /100 DOLLARS ($15,000.00) or less, subject to the provision that the original contract price may not be increased 960912 -8a by more than twenty -five pecent (25 %) or decreased by more than twenty -five percent (25 %) without 10 the consent of the contractor to such decrease. - Section 6:_....,._T.his. 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 12th day of September, 1996. x� C PETE C. ALFAR , Mayor ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, SR., ty Attorney 0 c:l council lmeetingslseptembeltmlinsur.12 PROPOSAL ACCEPTANC? FORM WORKERS' COMPENSATION DIRECTIONS: This form and the Interlocal Agreement must be signer.; and returned. Your coverage will become effective when these documents have been received. If time is of the essence, you might wish to use an express mail service or a facsimile copier. In the event you submit these documents by facsimile copier, the originals must still be sent by the regular mail. PLEASE RETURN TO: Texas Municipal League Intergovernmental Risk Pool UNDERWRITING DEPARTMENT 1821 Rutherford, 2nd Floor Austin, Texas 78754 Phone: (800) 537 -6655 or (512) 491 -2300 FAX: (512) 491 -2404 ------------------------------------------- --- -------------- - - - - -- WORKERS' COMPENSATION COVERAGE'S ACCEPTED {X r All Paid Employees ( } Elected /Appointed Officials ( } volunteer Firefighters ( X } Police Reserves ( } Volunteer Ambulance /EMS Attendants ( } All Inside Volunteers ( } All Outside Volunteers Deductible Options: [X } No Deductible [ } Accident Deductible [ } Aggregate Deductible Mandatory Optional Optional Optional Optional Optional Optional Deductible Amount Not applicable ------------------------------------------------------------------ Contribution: $ 216394.00 Contribution as accepted: $_10.961,— ASO Method of Payment: ( } Quarterly ( } Annually (3t Discount) I, the undersigned, as an authorized representative of: 6179 Baytown ------------------------------------------------ (Name of political Subdivision) do hereby accept on behalf of the above named political subdivision the portions of the proposal as indicated above. Desired Effective Date of Coverage: Signature of Authorized Official: ----------------------------- Title: ----------------------------- • Date: ----------------------------- ------------------------------------------------------------------- THE SIGNED INTERLOCAL AGREEMENT MUST ACCOMPANY THIS FORM TEXAS MUNICIPAL LEAGUE INTERRGOVTRNMENTAL RISK POOL. 08/13/1996 -09:37 �Hj�� W126 07/25/96 Texas Municipal. League Intergovernmental Risk Pool ® 1821 Rutherford Lane, F`i st Floor • Austin, Texas 78754 * P.O. Box 149194 • Austin, Texas 78714 -9194 WORKERS' COMPENSATION INTERLOCAL AGREEMENT This Contract and Interlocal Agreement is entered into by and between political subdivisions of this state (hereinafter referred to as "Employer Pool Members ")to forma jointself- insurance pool to benamedthe Texas Municipal League Workers' Compensation Joint Insurance Fund (hereinafter referred to as the "Fund ") 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 Pool Member, inconsideration 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 otherpolitical subdivisions executing like Interlocal Agreements does herebyagree to become a self- insured workers' compensation employer by becoming one of the members ofthe Fund Pool of self- insured Employer Pool Members. The conditions of memberst i p agreed upon by and between the parties are as follows: Definitions 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 the Interlocal Agreement. "Premium" is used to identify the rating formulas established by the State Board of Insurance, which are used as guidelines to establish Employer Pool Members' cash contribution 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. Manual Rates. The basic workers' compensati on rate applicable to each classification of employees promulgated by the State Board of Insurance or the Board of Trustees. 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 experience rating plan. e. Standard Rates. Rates that are determined by applying the experience modifier of each individual Employer Pool Member to the manual rates. f. Fund Modifier. The percentage figure that is applied to the standard rates by the Fund to reflect the savings to the Employer Pool Member based on past loss experience. g. Fund Year. 12:01 am. October 1 through 12:01 a.m. the following October 1. h. Agreement Period. Tltc continuous period since the Employer Pool Member first became a member of this Fund excluding, however, any period of time therein that the Employer Pool Member did not participate as a member of the Fund. i. Retention Plan. A plan promulgated by the Board where the Employer Pool Member may choose to retain part of the risk. j. ' Reimbursable Retention. The amount that was chosen by this Employer Pool Member to be applicable to the fast monies paid by the Fund to effect judgment or settlement of any claim or suit. The Employer Pool Member, upon notification of the action taken, shall promptly reimburse the Fund for all or such part of the retention amount as has been paid by the Fund. • 2. The Board of Trustees, acting through its agents and Fund staff, is responsible for the administration of all Fund business on behalf of the Employer Pool Members. Revised 10190 3. Statutory worker's compensation benefits are provided for paid employees of the Employer Pool Member only. The Employer Pool Member may extend statutory coverage to the following class or classes of .volunteers by specific endorsement to the Interlocal z aerneui: ejectedofficials ;volunteerfirefightc s; police reserves; volunteerambulance/ems attendants; all inside volunteers; alt outside volunteers. Provisiois exist for reporting estimated annual payroll subs6rute figures which will 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 Employer Pool Member shall be continuous commencing 12:01 a.m_ on the date designated in this Agreement until terminated as provided below. This Agreement maybe terminated by either party giving to the other sixty (60) days prior written notice of intent to terminate except the Employer Pool Member may terminate this Agreement and its statutory coverages thereunder without giving the sixty (60) days noticeif the reason is because of change by the Fund in the Employer Pool Member's contribution, provided that no termination by the Employer Pool 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' Compensation Joint Insurance Fund and provided furtherthat the Employer Pool Member agrees to and shall pay the applicable premi um and contribution for those coverages it is terminating until the date the notice of ter ntination 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 if 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. Rrahzing that the Employer Pool 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 infonnation as soon as possible before the beginning of each new Fund Year. The Fund will have the right to tetiminate this agreement only for non - compliance with Paragraphs 5, 7 and 10. 5. Annually, each Employer Pool Member shall submit to the Fund on a Premium Worksheet form supplied by the Fund, its estimated payroll foreach classification of employee. In the event that the Employer Pool Member fails or refuses to submit the Premium Worksheet with estimated payrolls for each classification of employee by September 1, the Fund reserves the right to terminate such member by giving thirty (30) days written notice and to col lect any and all contributions that arecarned pro rata for the period preceding contract termination. To determine the annual contribution, the rate established by the Board of Trustees shall be used to arrive at a manual contribution. Ifthe Employer Pool Member-has established, through experience, a modifier, then the experience modification of the Employer Pool Member shall be used to arrive at the standard contribution to be paid by the Employer Pool Member. In the absence of an earned experience modification for the Employer Pool Member, the manual rate, as established by the Board of Trustees, 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. The Fund modifier, if applicable, shall then be applied to the standard contribution to produce the annual contribution that the Employer Pool Member shall pay to the Fund. The Employer Pool Member agrees to pay the annual contribution to the Fund in four (4) equal quarterly installments, in advance, commencing at the beginning of each Fund 'Year, with subsequent installments due at the first of each quarter thereafter. Employer Pool Members who elect a retention of $25,000 or more shall comply with the monthly payment schedule outlined to them in advance ofassuming such retention. The Employer Pool Member agrees to promptly pay all reimbursable retentions upon receipt of statemenL It is understood by the Employer Pool Memberthat there will be contribution adjustments based upon the increased benefit levels mandated by the Texas Workers' Compensation Act. At the end of each Fund Year, there shall be submitted by the Employer Pool Member actual payrolls as r=flecterl by the books of the Employer Pool 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 Pool Member. The Fund reserves the right to audit the payroll records of any Employer Pool Member. Annual field audits will be made on each Employer Pool Member with standard contributions estimated to exceed $50,000. A field audit will be made at least once every three (3) years on Employer Pool Members with standard contributions less. than 550,000 annually. Lt the event that the Employer Pool Member fails orrefuses to make payments of contributions as herein provided, the Fund reserves the right to terminate such Employer-Pool Member by giving ten (10) days written notice and to collect any and all contributions 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. The Employer Pool • Member's contributions shall be limited to that amount as calculated under this Agreement. Revised t OM Notwithstanding the provision of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial - protection outlined 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 c- Fund Year. T The Fund will make available loss control services to the Employer Pool Members to assist them in following a plan of loss control that may result in reduced losses. The Employer Pool 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 seem unreasonable, the Employer Pool Member has a right to appeal to the Board of Trustees. The Board shall hear the objections of the Employer Pool Member at its next regularly scheduled meeting and its decision wil I be final and binding on all parties. Any Employer Pool Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately. S. The Employer Pool Member agrees that it will appoint a Workers' Compensation Contact of department head rank, and that the Fund shall not be required to contact any other individual except this one person. Any notice or agreements with the Workers' Compensation Contact shall be binding upon the Employer Pool Member. The Employer Pool Member reserves the right to change the contact from time to time by giving written notice to the Fund. 9. The Fund, through its staff and Contractors, agrees to handle any and all claims after notice of injuryhas been given, to prepare all required Texas Workers' Compensation Commission fonns, and provide a defense. The Employer Pool Member hereby appoints the Fund staff and Contractors 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. The Fund shall be responsible for seeing that all negotiations are carried on with the injured employee and his attorney at the prehearing conference and the negotiations are within authority previously granted by the Fund. I f a personal appearance by the employer or a co- employer ora co- employee is necessary, the expense of this appearance will be paid by the Employer Pool Member. With the advice and consent of the Fund, the Fund staff and Contractors w]1I 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 Fund staff and Contractors, which includes the decision to appeal or not to appeal a Texas Workers' Compensation Commission's final ruling and decision. However, any Employer Pool Membershall havethe right in any case involving one of its employees, to consult with the Fund on any decision made by the Fund staff or Contractors. The Board shall hear the objections of the Employer Pool Member at its next regularly scheduled meeting and its decision will be final and binding on all parties. Any suit brought or defended by the Fund shall be in the name of the political subdivision. Notwithstanding any provisions of this paragraph, all reports and filings required of any employer by the Workers' Compensation Law and the Texas Workers' Compensate on Comm] ss ion will be the responsibility of the Employer Pool Member. It is further understood that this Agreement does not cover discrimination suits under Article 8307c or its successor statute. There shalI be supplied quarterly to each Employer Pool Membcra computer printout involvinga statement of claims, claims status, and activity report cumulative for each Fund Year. 10. The Employer-Pool 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. 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. As the administrators oftheFund, the Board shall primarily and consistently keep foremost in its deliberations and decisions in operating the Fund that each of the participating Employer Pool Members is a "self- insured." At least annually, the Board shall carefully review, study and consider the loss experience (including reserves for future claims payments) of each of the Employer Pool Members, the experience rating modification developed or earned by each of the Employer Pool Members, and the prorata portion ofthe cost of all catastrophic loss protection reinsurance and aggregate stop loss reinsurance allocated to each Employer Pool Member as well as the pro rata allocation, as determined by the Board, of the other and necessary operating expenses of the Fund, in order to reasonably determine the actual pro rata cost, expense and loss experience of each Employer Pool Member in orderto maintain as nearly as possible an equitable and reasonable "self- insurance" administra- tion of the Fund as applied to each Employer Pool Member. Those Employer Pool Members who have an adverse loss development may be limited by the Board in their participation to a program involving retrospective contributions. Implementation of any retrospective program may only be by contract between the Fund and the member. ® The Fund shall maintain caserescrves and supplemental reserves computed in accordance with standard actuarial principles, taking into account historical and other data designed to measure claims development and claims incurred but not yet reported, so the Fund will be able to meet these claims as they become due. The Fund may also establish, to the extent that uncommercial resources are available, a Reserve for Return of Contributions to further ensure the fiscal integrity of the Fund in the event of adverse loss development. Revised 10190 • The Fund shall annually determine the amount of excess contributions and other income, if any, that may be available for distribution to current Fund members. If excess and/or aggregate reinsurance is not available the Fund reserves the rig ht to retain a portion of the excess contributions for self - funding such excess and/or aggregate protection. TO BE COMPLETED BY MEMBER: EMPLOYER MEMBERS' FUND CONTACT (See Section 8): Member Name City of Baytown NameofContact Raymond H. Bradford Title Risk Manager Mailing Address P.O. Box 424 Street Address (if different from above) 2401 Market Street City Baytown SIGNATURE OF AUTHORIZED MEMBER OFFICIAL. Zip 77522 Tide Date Member's Federal Tax I.D. Number -7 4 6 This Information is MANDATORY TO BE COMPLETED BY FUND: (OFFICE USE ONLY) Phone 713 --420 -5362 - --v ., .•��. s Dal '��.w. — i AAgtment r ,r F- . r,`' ,� # . •. ! :+:.. . ' u .i. - ve Effecti r7vlernber.NamC,; ,z ..r3� oft ;- Wis??4. G.� .:.wa�rsL —'fr SK�Y+rNrr v _ •+•• ' q.7t �•1•w`� .•.. Contract umba� �.•.t`�b"`i�`= r•�' =:',� r.lt`;. 'i. �`'•� : _ti. },- •ii -e.e ••r•}f.5+ti'. •.."-}`-- r` L!'!.w`=- �'..._•��b.ti��l.'�. -Y� .• ... -. - ... -h H.�:.•...•::•• .4kn SIGNATURE OF'AUMORIZED FUND OFFICIAL-, =;:,__::> AR .�ri.... �.• _ _ .� _ _ .:`; �l?!-.�i °.'.._�i.°'�4jc�f}S�+at yrio;9;�+ir-i�:-I: ?ry,•T: �`h.`�. •3.. .� � �. -: _ ]' :Datc �; 2 .• .. Rtvised 10190 PROPOSAL ACCEPTANCE FORM LIABILITY Directions: This form and the Interlocal Agreement must be signed and returned to the 'I'1\f-L-IR.P office. Your coverage will become effective when these documents have been received. If time is of the essence, you may wish to use an Express Mail service or a facsimile copier. In the event you submit these documents by facsimile copier, the originals must still be sent by regular mail. (Exception: Rural lore Prevention Districts and Emergency Service Districts must provide other documents before coverage is effective.) COVERAGE ft] General Liability [X] Automobile Liability PLEASE RETURN TO: TML-IRP UNDERWRITING DEPARTMENT P.O. Box 149194 Austin, Texas 78714-9194 Phone: (510491 -2300 or (800)537 -6655 FAX: (511)491.2404 LEVUTS DEDUCTIBLE CONTRIBUTION EFFECTIVE ANNIVERSARY DATE DATE u u 1 111 : 1 I= . 1 ' Sim $_10,000 $128,914 10 -1--96 10 -1 -97 [X]AutomobilePhysicalDamage $Per Schedule $ 1,000 $ 13,249 10 -1 -96 10 -1 -97 [X] Automobile Catastrophe $Per Schedule $_10,000 $ 3,265 10 -1 -96 10 -1 -97 [X] Law Enforcement Liability S1M /2M $25,000 $ 37,535 10 -1--96 10 -1 -97 fX] Errors & Omissions Liability [ ] * *Prior Acts Coverage (LEL) ( 5 yam) [ ] * *Prior Acts Coverage (POL) (5 Yom) • 01 111 • / •• 1 Method of Payment: [ X a Quarterly[ ] Annually (3 % D1SCOUN7) I, the undersigned, as an authorized representative of: CITY OF BAYTOWN (Nance of Political Subdivision) do hereby accept on behalf of the above named political subdivision the porticos of the proposal as indicated above. Signature of Authorized Official: Title: Date: The Signed Interlocal Agreement Mast Accompany This Form OFFICE USE ONLY Coah-ibntion: Coat r Verified by: {) New () Reawarding { ) Adding Coverage TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL ** This form must be accompanied by the Warrant of Incident Report if prior acts is elected. L2J8 O 0784/96 PROPOSAL ACCEPTANCE FORiLM PROPERTY Directions: This form and the interlccal Agreement must be signed and returned to the TML -W office. Your ® coverage will become effective when these documents have been received. If time is of the essence, you may wish to use an Express Mail service or a facsimile copier. In the event you submit these documents by facsimile copier, the originals must still be sent by regular mail. (Exception_ Rural Fire Prevention Districts and Emergency Service Districts must provide other documents before coverage is effective.) PLEASE RETURN TO: TMIrIRP UNDERWRITING DEPARTMENT P.O Box 149194 Austin, Texas 78714 -9194 Phone: (512)491 -2300 or (800)537 -6655 FAX: (512)491 -2404 ProperUCoverages Accepted DEDUCTIBLE CONTRIBUTION [X] Real & Personal Property (R&PP) Blanketl.iJ33it $32 379,47h $_29 -o o S 77147(, [ ] Actual Cash Value OR [ )j Replacement Value [yj Special Form OR [ ] Named Perils [x] Flood & Earthquake [ ] Included OR [ )d Excluded EFFECTIVE ANNIVERSARY DATE DATE [X] Mobile Equipment S 1,000 S 5,650 10 -1 -96 10 -1 -97 [X] Electronic Data Processing $ Incl w /Proms_ $ Incl w /Prop [ X] Included OR [ ] Excluded M Boiler & Machinery $ 1,000 $ 3,029 10 -1 -96 10 -1 -97 [ ] Basic [X] Broad Method of Payment: [ x ) Quarterly [ ] Ann affy (3% DISCOUNY) I, the undersigned, as an authorized representative of: CITY OF BAYTOwv (Name of Political Subdivision) do hereby accept on behalf of the above named political subdivision the portions of the proposal as indicated above. Signature of Authorized Official: Title: Date: The Signed Interlocal Agreement Must Accompany This Form OFFICE USE ONLY coatnibutioa: coot Verified by: () New ( ) Reawarding t 1 Adding Cavan e TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL P3o7 7124196 Texas Municipal League Intergovernrner �a- l Risk Pool ® 1821 Rutherford Lane, First Floor • Austin, Texas 78754 * P.O. Box 149194 • Austin, Texas 78714-9194 LIABILITY/PROPERTY INTERLOCAL AGREEMENT This Contract and Interlocal Agreement is entered into by and between political subdivisions of this state (hereinafter referred to as "Pool Members ") to form a joint self - insurance pool to be named the Texas Municipal League Joint Self- Insurance Fund (hereinafter referred to as the "Fund ") for the purpose of providing coverages against risks which are inherent in operating a political subdivision. V4TNESS ETH: The undersigned Pool Member, in accordance with the Interlocal Cooperation Act, Tex. Gov't Code § 791.001, et seq., and the interpretation thereof by the Attorney General of the State of Texas (Opinion ##MW -347, May 29, 1981), and in consideration of other political subdivisions executing like agreements, does hereby agree to become one of the Pool Members of this self-insured pool. The conditions of mcmbership agreed upon by and between the parties are as follows: Definitions of terms used in this Interlocal Agreement. a. Board. Refers to the Board of Trustees of the Texas Municipal League Joint Self - insurance Fund. b. Fund Year. 12:01 a.m. October 1 through 12:01 a.m. the following October 1. c. Manual Rates. The basic rates applicable to each liability classification promulgated by the Insurance Service Office or the Board of Trustees. d. TML Municipal Liability Self- Insurance Plan. The liability coverage document that sets forth in exact detail the coverages provided as part of the overall plan. e. Adjustments. Refers to any offsets to manual premium that may result from the Pool Member's election of deductibles, loss experience or Fund Modifier which reflects the savings to the Pool Member by entering into this Agreement. f. TML Municipal Property Self- Insurance Plan. The property coverage document that sets forth in exact detail the coverages provided as part of the overall plan. g. Premium and Contribution. Used interchangeably in some parts of this Interlocal Agreement. 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 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 h. Reimbursable Deductible. The amount that was chosen by this Pool Member to be applicable to the first monies paid by the Fund to effect judgment or settlement of any claim or suit. The Pool Member, upon notification of the action taken, shall promptly reimburse the Fund for all or such part of the deductible amount as has been paid by the Fund. Further, however, the Fund's obligation to pay damages shall be subject to the Limits of Liability stated in the Declarations of Coverage or Endorsements to this Interlocal Agreement less the stated deductible amount. i. Fund Modifier. A percentage figure that is applied to the manual rates by the Fund to reflect the savings to the Pool Memberby entering into the Interlocal Agreement. j. Agreement Period. The continuous period since the Pool Member fast became a member of this Fund excluding, however, any period or periods of time therein that the member did not participate as a member of the Pool. 0 k. Declarations of Coverage. The specific indication of the coverages, limits, deductibles, contributions and special provisions elected by each individual Pool Member. The Declarations of Coverages may be modified by Endorsement. 2. The Board of Trustees, acting through its agents and Fund staff, is responsible for the administration of all Fund business on behalf of the Pool Members. Revised 10190 3. In consideration of the execution of this Agreement by and between the Pool Member and the Fund and of the contributions of the Pool Member, the coveraee elected by the Pool Member is afforded according to the terms of the TML Liability Self- Insurance Plan and th,r TML Property Sett - Insurance Plan. The affirmative declaration of contributions and limits of liability in the Declarations of Coverage ® and Endorsements determines the applicability of the Self - Insurance Plans. Each Pool Member agrees to adopt and accept the coverages, provisions, terms, conditions, exclusions and limitations as furtherprovided for in the TML Self- Insurance Plans or as specifically modified by the Pool Member's Declarations of Coverage. This Interlocal Agreement shall be construed to incorporate the TML Liability Self - Insurance Plan and/or the TML Property Self - insurance Plan, Declarations of Coverage, and Endorsements and addenda whether or not physically attached hereto. 4. Itis understood that by participating in this risk sharing mechanism to cover liability exposures, the Pool Memberdoes not intend to waive any of the immunities that its officers or its employees now possess. The Pool Member recognizes the Texas Tort Claims Act and its limitations to certain governmental functions as well as its monetary limitations and that by executing this Agreement does not agree to expand those limitations. The Pool Member, upon the execution of this Agreement, shall supply the Fund with a current copy of its charter provisions or ordinance that sets out its requirement as to the number of days in which a third party liability claim must be made against it. If the Pool Member does not have such an ordinance provision that establishes a set number of days or if it has an ordinance provision which provides for less than sixty (60) days notice and for good cause shown up to six (6) months notice the Pool Member agrees to adopt an ordinance providing for such notice reasonably describing the damage or injury claimed and the time, manner and place of the incident from which it arose. The notice requirement shall not be changed by the Pool Member without first giving the Fund thirty (30) days written notice. Violation of this provision may, at the Fund's discretion, void this Interlocal Agreement. The term of this Agreement and the self - insurance provided to the Pool Member shall be continuous commencing 12:01 a.m. on the date designated in.fts Agreement until terminated as provided below. Although the self - insurance provided for in this Agreement shall be continuous until terminated, the limit of liability of the Fund under the coverages that the Pool Member elects shall be limited during any Fund Year to the amount stated in the Declarations of Coverage for that Fund Year. This Agreement may be terminated by either parry giving to the other sixty (60) days prior written notice of intent to terminate except the Pool Member may terminate this Agreement and its coverages thereunder without giving the sixty (60) days notice if the reason is because of a change by the Fund in the Pool Member's contribution, coverage, or otherchange in the limits of liability, terms, conditions, exclusions and limitations provided for in theTexas Municipal League Self- Insurance Plans provided that no termination by the Member shall be effective prior to the date that written notice of termination is actually received in the offices of the Texas Municipal League Joint Self - Insurance Fund and provided that the Pool Member agrees to and shall pay the applicable premium and contribution for those coverages it is terminating until the date the notice of termination is actually received by the Fund. The Fund shall provide the Pool Member with Declarations of Coverage and any Endorsements that determine the applicability of the Texas Municipal League Self- Insurance Plans annually by December 1. Such Declarations of Coverage shall include, but not be limited to, the coverage period which shall be the applicable Fund Year, limits, deductibles, contributions, special provisions and limitations. Changes made during the Fund Year, whether requested by the Pool Member or required by the Fund, will be handled by Endorsement. It is the intention of the parties that the Pool Member's coverages under this Agreement shall remain in full force and effect from Fund Year to Fund Year, subject to the limits of liability that the Fund can provide each Fund Year and the terms, conditions, 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 Pool Member needs the earliest possible information concerning the Fund coverages, limits, and exclusions and the Pool Member's 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 Fund Year. The parties recognize, however, that conditions in the reinsurance industry are such that the Fund may not be able to provide this information to the Pool Member before the beginning of a Fund Year for various reasons including the failure of the Pool Member to timely submit the appropriate exposure summary or delays on the part of reinsurers in getting information to the Fund, and so, to protect the Pool Member from gaps in its coverage and to protect the solvency of the Fund, the parties agree as follows: If, forany reason other than the Pool Member's failure to provide the information requested in the exposure summary, the Fund has not • been able to provide the Pool Member with information concerning available coverages fora new Fund Yearoradvise the Pool Member of the amount of its contribution for the new Fund Year by the beginning of the Fund Year, the Fund shall nevertheless continue the Pool Member's coverages at the same limits of liability (if still available and if not, then or the highest limit of liability available for the new Fund Year) so that the Pool Member shall at all rimes remain covered as herein provided and the Pool Member's initial contributions forthenewFundY,earshollbedeterminedbya "tentative contribution" asdeter-minedby the Board with the PoolMember'sactualannual Revised 10/90 contribution to be credited by the amount paid in accordance with the tentative contribution and adjusted during the Fund Year. In the event the Pool Member does not wish to have its coverages extended or renewed at she end of any Fand Year, the burden shall be upon the Pool Member to give written notice to t e' Fund as provided hereihabove and the Pool Member agrces to pay as hereinabove stated all contributions or pro rata contributions until the date such written notice is received in the offices of the Fund or the date of termination ® of this Agreement, whichever is later. 6. Commensurate with the execution of this Agreement and annually thereafter, the Pool Member shall complete the appropriate exposure summary and deliver it or cause it to be delivered to the Fund, or, if so instructed, to•a designated contractor, no later than September 1 of each year and new annual contributions shall be calculated using manual rates times exposure, less any adjustments. Intentional or reckless misstatements on the exposure summary shall be grounds for cancellation. In the event that the Pool Member fails or refuses to submit the appropriate exposure summary, the Fund reserves the right to terminate such Pool Member by giving thirty (30) days written notice and to collect any and all contributions that are earned pro rata for the period preceding contract termination. The Pool Member agrees to pay the annual contribution to the Fund in four (4) equal quarterly installments, in advance, commencing at the beginning of this Agreement with subsequent installments due the first quarter thereafter. Pool Members who elect a deductible in excess of $25,000 shall comply with the monthly payment schedule outlined to them in advance of assuming such a large deductible. In the event this Agreement is terminated as herein provided, the Fund shall promptly repay to the Pool Member any such unearned annual contribution prorated as of the date of termination and the Pool Member agrees during the term of this Agreement to promptly pay all reimbursable deductibles upon receipt of statement. At the end of each and every Fund Year, the Fund may require the Pool Member to submit the actual data requested on the exposure summary as reflected by the books and records of the Pool Member. The Fund reserves the right to audit the records of any Pool Member and adjust contributions accordingly. In the event that the Pool Member fails or refuses to make the payments, including accrued interest, as herein provided, the Fund reserves the right to terminate such Pool Member by giving them ten (10) days written notice and to collect any and all amounts that are earned pro rata for the period preceding contract tern» nation. If the amounts owed, including reimbursable deductibles, have to be collected by suit, the Pool Member agrees to pay attorneys' fees and costs incurred in such suit. The Fund shall maintain adequate protection from catastrophic losses to protect its financial integrity. Aggregate protection shall also be maintained. The Member's contributions shall be limited to that amount as calculated under this Agreement. 8. Notwithstanding the provisions of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection outlined above and/or amend coverages as it finds available or deems necessary to maintain the fiscal soundness of the Fund at the beginning of or during any Fund Year. 9. The Fund will mane available loss control services to the Pool Members to assist them in following a plan of loss control that may result in reduced losses. The Pool Member agrees that it will cooperate in instituting any and all reasonable loss control recommendations_ In the event that the rrcommenda6ons submitted seem unreasonable, the Pool Member has a right to appeal to the Board of Trustees. The Board shall hear the objections of the Pool Member at its next regularly scheduled meeting and its decisions will be final and binding on all parties. Any Pool Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately. 10. The Pool Member agrees that it will appoint a contact of department head rank, and the Fund shall not be required to contact any other individual except this one person. Any notice to or any agreements with the contact shall be binding upon the Pool Member. The Pool Member reserves the right to change the contact from Ume to Ume by giving written notice to the Fund. IL The Fund agrees to handle all liability and property claims, and provide a defense for any and all liability claims covered under this Agreement after prompt notice has been given. The Pool Member hereby appoints the Fund staff and Contractors as its agents to act in all matters pertaining to processing and handling of claims covered under this Agreement and shall cooperate fully in supplying any information needed or helpful in settlement or defense of such claims. As respects liability claims, the Fund staff and Contractors shall carry on all negotiations with the claimant and his attorney and negotiate within authority previously granted by the Fund. If a personal appearance by the Pool Member or an employee is necessary, the expense of this appearance will not be the responsibility of the Fund. With the advice and consent of the Fund, the Fund staff and the Contractors will retain and supervise legal counsel for the prosecution and defense of any litigation. All decisions on individual cases shall be made by the Fund through the Fund staff and the Contractors, which includes the decision to appeal or not to appeal. However, any Pool Member shall have the right in any case to consult with the • Fund on any decision made by the Fund staff or Contractors. The Board shall hear the objections of the Pool Memberat its next regularly scheduled meeting and its decision will be final and binding on all parties. Any suit brought or defended by the Fund shall be brought or defended only in the name of the Pool Member and/or its officers or employees. There shall be supplied periodically to each Pool Member a computer printout involving a statement of claims. As respects the TML Municipal Liability Self- Insurance Plan, the Fund Revised IOt9O shall have priority in enforcing its subrogation claims against the claims of pool Memberexcept as to claims of the Texas Municipal League Workers' Compensation Joint Insurance Fund, which shall take preference. 12. The Pool Member acknowledges that it has received a copy �. Bylaws of the Fund and agrees to abide by the .Bylaws and any amendments thereto. ®i� The Fund agrees that all 'Fund transactions will be annually audited by a nationally recognized certified public accounting firm. 14. If legally required, the Fund shall cause to be filed the necessary tax forms with the Internal Revenue Service. 15. As the administrators of the Fund, the Board shall primarily and consistently keep foremost in their del ibera tions and decisions inoperating the Fund that each of the participating Pool 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 Pool Members, the pro rata savings to the Fund resulting from overall loss experience attributed to each Pool Member, and the pro rata portion of the cost of all catastrophic loss protection and aggregate stop loss protection allocated to each Pool Member as well as the pro rata allocation, as determined by the Board of the other and necessary administrative expenses of the Pool, in order to reasonably determine the actual pro rata cost, expense and loss experience of each Pool Member in order to maintain as nearly as possible an equitable and reasonable self - insurance administration of the Fund as applied to each Pool Member. The Fund shall maintain case reserves and supplemental reserves computed in accordance with standard actuarial principles, taking into account historical acrd other data, designed to measure claims development and claims incurred but not yet reported, so that funds will be available to meet these claims as they become due. The Fund shall also establish and maintain a reserve for Return of Contributions to further ensure the fiscal integrity of the Fund in the event of a potential adverse loss development. Only current Pool Members may receive return of cuntribution. 16. The Pool Membermay elect to participate in the Fund only to the extent of obtaining administrative services, and, if desired and available, reinsurance. in that event, the Pool Member shall not make contributions as provided in Paragraph 5 nor receive the coverages provided for in the TML Self- Insurance Plan, nor shall the TML Joint Self - Insurance Fund be liable for the payment of claims against the Pool Member. The Fund shall only handle and service claims for the Pool Member and pay same out of funds to be deposited by the Pool Member in a separate account administered by the Fund for the payment of claims and judgments only against that Pool Member as hereinafter provided. Notwithstanding the provisions of any other section of this Interlocal Agreement, a Pool Member who elects to receive Administrative Services Only as specified in the attached Declarations (herei natter referred to as the "ASO Pool Member ") shall be subject to the following requirements and conditions: A. Although the ASO Pool Member will receive coverage documents setting forth the coverages, provisions, terms, conditions, exclusions and limitations provided for in the TML Self - Insurance Plans, these documents are not intended to and shall not create an insured- insurerrelationship between the Fund or any of its other Pool Members and the ASO Pool Member, but ratherare provided solely for the purposes of: (1) defining the scope of claims the Fund will handle on behalf of the ASO Pool Member, and (2) defining the nature and scope of claims and conditions applicable thereto that will be covered by reinsurance, if available and obtained by the ASO Pool Member, beyond the ASO Pool Member's self - insured retention. The Fund shall not itself be liable for the payment of claims or judgments against the eluting ASO Pool Member, nor to provide the electing ASO Pool Member with a defense of any such claims or suits at the expense of the Fund. The Fund will only make payments on behalf of the ASO Pool Member out of the ASO Pool Member's claims account. The ASO Pool Member shall comply with all requirements of any remsurer including but not limited to furnishing timely claims reports, proposed settlements that would impact the reinsurer as well as progress reports involving litigation. The ASO Pool 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 ASO Pool Member to maintain adequate reserves for the payment of claims as well as claims based upon breach of a duty of good faith and fair dealing because of the ASO Pool Member's or their agents' conduct toward the claimant. B. In connection with claims within the scope of the coverage documents, the Fund shall provide the following services or on behalf of the ASO Pool Member as confirmed specifically in the attached Declarations: 1. Overall contract and claims administration; 2. Loss control services to the ASO Pool Member to assist it in developing a plan of loss control to attempt to control or reduce the , frequency and severity of claims against it; Revised IOM 3. Claims servicing including investigation and recommendation by the Fund's contractors: periodic meetings with the ASO Pool Mernber's claims official or claims committee attended by representar; i-c of Contractors: d. Claims administration including coordination and recommendation of defense; reserve recommendations: claims handling and ® defense recommendations by the Fund claims manager and assistants, as well as review of all files to monitor the ASO Pool Member's self - insurance exposure; participation by Fund staff member(s) in the periodic meetings to review claims with the ASO Pool Member's claims official or claims committee. 5. Storage and retention of claims records; periodic MIS reports detailing claims and loss information and history. The Fund shall charge the ASO Pool Member its usual and customary charges for the aforesaid services based on actual services provided. Allocated claim expenses, including defense attorney's fees, discovery fees, expert and witness fees and court costs shall be paid by the Fund on behalf of the ASO Pool Member out of the ASO Pool Member's claims account as part of the administrative services provided by the Pool, but shall never be an expense or liability of the Fund but rather is solely that of the ASO Pool Member. The Fund shall handle all liability and automobile physical damage claims and oversee, coordinate and make recommendations in connection with the defenseof anyand all liability lawsuits covered underthis Agree mentafterprompt notice has been given. The ASO Pool Memberhereby staff appoints Fund and Contractors as its agents to act in all matters pertaining to processingand hand ling ofclaimscovered underthis Agreement and shall cooperate fully in supplying any information needed or helpful in settlement or defense of such claims. As respects liability claims, the Fund staff and Contractors shall carry on all negotiations with the claimant or his attorney, but no settlement shall be made without express prior approval of the ASO Pool Member. All claims will be discussed with the ASO Pool Member's claims official or claims committee on a periodic basis. As information on each claim develops, the Fund staff and Contractors shall make recommendations concerning claim reserves, settlement and whether or not a case should be tried or settled or a judgment should be appealed, but all decisions on individual cases shall be made by the ASO Pool Member. In the event of litigation, the Fund staff and Contractors will retain on behalf of the ASO Pool Member legal counsel approved by the ASO Pool Member to represent it and will supervise the defense of the litigation, including any appeals. The ASO Pool Membershall establish in its name a "claims account" ata bank designated by the Fund, out of which the Fund, through its agents, shall pay on behalf of the ASO Pool Member qualified claims or losses and allocated claims expense including court costs, fees and expenses of attorneys, independent investigators, experts and witnesses and all other costs, charges or expense properly chargeable to a qualified claim or loss. Funds shall be provided at the inception of the ASO Member's self - insurance program and promptly from time to time under the following formula based on estimates furnished by the Fund of the anticipated or actual level and volume of qualified claims or losses and allocated expenses: The ASO Pool Membershall deposit into the account initially an amount equal to one -fourth ( %+) of the estimated volume of qualified claims or losses and allocated claim expenses during the first twelve (12) months of its self - insurance program and each month thereafter, or sooner if necessary, shall deposit into the account an amount sufficient to restore, maintain or increase the account balance to an amount equal to one -fourth ( %.) of the estimated volume of qualified claims or losses and allocated claim expenses during the next twelve (12) months. The Fund shall account to the ASO Pool Member monthly forall expenditures from the claims account. If at anytime the claims account balance drops to below fifty percent (50`Yo) of the balance currently called for under the above formula, the ASO Pool Membershall promptly deposit additional funds to restore the full balance. During any period of dme that the claims account balance is fifty percent (50%) or less of that currently called from under the formula, only allocated claim expenses shall be paid out and the ASO Pool Member shall directly pay qualified claims or losses out of other funds until it deposits into the claims account the amount necessary to restore the account to its ful I balance. In the event paymentofaqual ified claim or loss would reduce the claims account balance to less than fifty percent (50%) of that called for under the formula, the ASO Pool Member shall be promptly notified and shall either pay the qualified claim or loss directly out of other funds or deposit into the claims account sufficient funds for its payment. It is expressly understood that the Fund shal l not be required to advance its own funds or those of the Joint Self - Insurance Fund to pay claims or losses or allocated expenses hereunder, or continue to perform any services hereunder if the ASO Pool Member fails to provide necessary and adequate funds as herein set forth. It shall be the sole responsibility of the ASO Pool Member to establish and maintain adequate reserves in addition to the limited funds in the claims account for payment of all claims, including catastrophic claims. The Fund will provide reserve recommendations and estimates of Lability exposures, but both parties realize that judges and juries have wide discretion in assessing damage awards and the award in any particular case may be greatly in excess of or greatly less than a recommended reserve. r U Revised IGM C • Either party to this agreement may at any time terminate it upon sixty (60) days written notice for any reason as to either all pending and future claims, or alternatively, only as to future claims. In th : event cancellation is with respect to htit; pending and future claims, the Fund will no longer be obligated to perform the services out?ined in this Agreement and shall promptly and in an orderly: manner forward to the ASO Pool Member or its designee all pending claim files. In the event termination is only as to future claims, this Agreement shall continue in full force and effect with respect to all pending claims and claims occurring but not reported prior to cancellation until concluded. In either event, the ASO Pool Member shall be entitled, if it so requests and at its own expense, to have the closed claim filed retrieved from storage and delivered to it. In the event the ASO Pool Member does not request closed files in the notice of cancellation, however, they will be retained or destroyed at the Fund's option and the ASO Pool Member shall have no recourse against the Fund for failure to retain them. TO BE COMPLETED BY MEMBER: EMPLOYER MEMBERS' FUND CONTACT (See Section 10): Member Name City of Baytown Name of Contact Raymond H. Bradford Title Risk Manager Mailing Address P.O. Box 424 Street Address (if different from above) 2401 Market Street City Baytown Zip 77522 SIGNATURE OF AUTHORIZED MEMBER OFFICIAL Title Date Member's Federal Tax I.D. Number 7 4. 6 0 0 0 2 4 6 This Information is MANDATORY ,tv JDZ w1Vii'LiSil<',1J DX rulNV: tUr lUh USE ONLY) Phone 713 -420 -5362 -• •ar%,� '-'"Cfr p'�,t. .YL. wc,�.b' 7 �z.'� °1 a+_t,+.. r�i.� -.. - 7a !�. �sY -. s r�S?,L'• A.t . {}�7.. ��tatl `L3Y N ht` �* _ - .... +� iC�^ L 1:- Mcmbcr. Namc ' ap. nit e?cP�p'T3 3"" °L s :•.i.- r�r�^%'1��:a - i31Y.p - +'� �ata`I.a`•' �„ � •LZr `e"'r' r -w. .- �} ,t '1+'�er (�.J1.� �e- 'r+, :_>:Y ♦s'-_? ,e k'P ,..Cy,+'u 1•t .. -:` {G'� f n t s }.., Contract _ _ - _ w' -•r•�t Ntimlicr, �_�.:.„7+ M1 r-h t_ =^ '� ry d 'Y:r ?"?� :�r'!t+: -�'•�vh�+ -r-� �, , - ,. rc u�-a� ., r��•��'��' `•= SIGNATURE OF AUTHORIZED FUND OFFICitAI. •.— _..;r_ z Y:r ^,� , i n ,s ,„ �= _ ,: ;. - �•'"�y ^ ,. f TM1 �"y +�tTTt�• 41� ' '•L � 71 �-1c'a:t 1 -. -w�, � _ �+,•w.�sJ:•,�it •� �tl_.. -- .. 4e ti :,, i;•�,� 'i��ra f _:w �l�i�. ,'tieL�,f'e1'l4'�7'`4� Y ... ..;Y y ,. 'a - .-ar. � -' _-. - _ _ c- �S � Title`-= „�� ?����;�:. -.= •:.- -� �- . :.� = � _ Date • _ � r Revised I0190