CC Resolution No. 1152 2089
RESOLUTION NO. 1152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ESTABLISHING AN INTERNAL RISK POOL IN THE CITY OF
BAYTOWN TO PROVIDE MEDICAL, PHARMACEUTICAL, DENTAL AND
HOSPITAL BENEFITS TO COVERED INDIVIDUALS; DESIGNATING
THREE TRUSTEES ; AND PROVIDING FOR THE EFFECTIVE DATE
HEREIN.
WHEREAS, the Texas Legislature has enacted legislation which
exempts political subdivision health benefits risk pools from
regulation as health insurance; and
WHEREAS , the City of Baytown has maintained through its
existing health benefits plan reasonable and beneficial levels of
benefits for its employees at reasonable costs without
regulation; and
WHEREAS, the City Council finds that it is advantageous to
both the employees and the citizens of Baytown to continue to
provide the best health benefits available within reasonable cost
parameters; and
WHEREAS , costs mandated by outside regulations are many
times inimical to cost effective health benefits; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1 : The City of Baytown ' s self-funded health
benefits plan is hereby designated as an internal risk pool to
cover medical, pharmaceutical, dental and hospital expenses for
covered officers, employees and retirees of the City of Baytown
according to the levels of benefits as may be from time to time
included in such plan in lieu of health insurance.
Section 2 : The Director of Finance, the Director of Human
Resources , and the City Attorney are hereby designated as
trustees of the risk pool and, in addition to the requirements of
trustees in Chapter 172 , TEXAS LOCAL GOVERNMENT CODE , are
empowered and authorized to undertake and implement the following
duties:
A. Supervise the operation of the risk pool.
B. Select, if advisable, a third-party administrator to
coordinate the delivery of benefits.
C. Select, if advisable, a reinsurance carrier to cover
the costs of excess claims.
D. Invest unencumbered funds of the risk pool with the
City of Baytown's invested funds.
2090
E. Annually audit the accounts of the risk pool through
the use of an independent auditor.
F. File a copy of the annual independent audit with the
State Auditor.
G. Recommend from time to time the levels of benefits
payable from the risk pool, the level of contributions
from the City of Baytown to the risk pool , and the
levels of contributions required from officers ,
employees and retirees to the pool for selected levels
of benefits.
Section 3 : The City Manager is authorized to execute the
necessary documents to effectuate the transition to the risk pool
and to implement and maintain the levels of benefits contemplated
by this resolution , and may from time to time make such
recommendations to the City Council as are deemed necessary and
advisable to maintain adequate levels of benefits consistent with
the sound financial condition of the City of Baytown.
Section 4 : This resolution 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 23rd day of July,
1992 .
BOBBY,Al
7CREDILLE, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
J-GNACIO RAMIREZ, SR City Attorney
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