Loading...
HomeMy WebLinkAboutResolution - 548 - Interlocal Agreement - TML WCJI Fund - Workman's Compensation Claims - 06/26/1980:bs RESOLUTION #548 - 6/26/80 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and he is hereby authorized and directed to execute a new interlocal agreement with the Texas Municipal League Workers' Compensation Joint Insurance Fund, 1020 Southwest Tower, Austin, Texas, 78701, which agreement changes some of the fiscal arrangements between the City and said fund with respect to the handling of Workman's Compensation Claims and costs in connection therewith. Passed by the City Council this 26th day of June , 19 80 B MCALISTER, MAYOR ATTEST: = EVelyn-Gaf.ga, ,City Sec APPROVED AS TO CONTENT: Robert Massengale, Direc� APP RO D AS TO FORM: surer or of Finance ( ► J J. WoVVh Fullingim,; Asst. CJVyAttorney TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND 1020 Southwest Tower, Austin, Texas 78701 INTERLOCAL AGREEMENT This Contract and Interlocal Agreement entered into by and between the Texas Municipal League Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") and the undersigned political subdivision of the State of Texas (hereinafter referred to as "Employer Member") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workers' Compensation Act for employees of political subdivisions. WITNESSETH: The undersigned Employer Member in consideration of the adoption of a plan of self- insurance as authorized in Article 8309h, Vernon's Annotated Texas Statutes, to provide Workers' Compensation benefits at a minimum cost and in further consideration of other political subdivisions executing interlocal agreements does hereby agree to become a self- insured workers' compensation employer by becoming one of the members of the Fund Pool of self-insured Employer Members. The conditions of membership agreed upon by and between the parties are as follows: 1. Definition of terms used in this Interlocal Agreement. a. 'Board" -- refers to the Board of Trustees of the Texas Municipal League Workers' Compensation Joint Insurance Fund. b. "Premium" and "Contribution" -- are used interchangeably in some parts of this Interlocal Agreement. "Premium" is used to identify the rating formula established by the State Board of Insurance, which is 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 except where the context clearly indicates no other possible interpretation such as but not limited to the reference to "reinsurance". c. "Servicing Contractor" --Texas Employers Insurance Association. d. "Manual Rates" -- the basic workers' compensation rates applicable to each classification of employees promulgated by the State Board of Insurance. e. "Experience Modifier" -- refers to the factor applied to the manual rates that reflects the political subdivisions' loss experience, which is based on the State Board of Insurance promulgated insurance plan. f. "Standard Consideration" or "Standard Premium" -- the amount that is determined by applying the experience modifier of the Employer Member to the manual rates. i V 2. The term of this Interlocal Agreement shall be for a term commencing 12:01 a.m. and terminating 12:01 a.m. October 1, , unless the same is sooner terminated by sixty (60) days written notice of intent to terminate by either party unless otherwise specified under the terms and agreements of this Interlocal Agreement or by the Bylaws of the Fund. The Fund will have the right to terminate this agreement only for non-compliance with paragraphs 3, k and 7. 3.Annually, each Employer Member shall submit, on a Premium Worksheet form supplied by the Fund, its estimated payroll for each classification of employees to the Fund. The rates established by the State Board of Insurance shall be applied to arrive at a manual premium. If the Employer Member has established, through experience, a modifier, then the experience modification of that Employer Member shall be used to arrive at the standard premium to be paid by the Employer Member. In the absence of an earned experience modification for the Employer Member, the manual rate as established by the State Board of Insurance in effect, at the beginning of each Fund Year, will be used as a guide to produce a manual, as well as a standard, contribution. The Employer Member agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, an initial deposit of one (1) month's estimated paid losses times (x) 1.095, for the claims administration herein contracted for, plus 1/12 of the administrative service charge, catastrophic excess of loss reinsurance charge and the safety engineering charge (if applicable) as set forth in Exhibit A attached hereto. On or before the first month after the inception date of this Interlocal Agreement, the Employer Member agrees to make an identical payment as determined above on or before the beginning of the second month after the .inception date of this Interlocal Agreement. On or before the beginning of the third month after the inception date of this Interlocal Agreement, the Employer Member shall pay an amount equal to the actual paid losses of the first month times (x) 1.095, for claims administration services plus 1/12 of the annual administrative service charge, catastrophic excess of loss reinsurance charge and safety engineering charge (if applicable). On or before the beginning of the fourth month of this Interlocal Agreement, a similar payment based upon the actual paid losses of the second month shall be paid to the Fund with subsequent monthly payments to be paid each and every month thereafter, based upon actual paid losses. It is further agreed that the other charges (administrative service charge, catastrophic excess of loss reinsurance charge, and safety engineering charge if applicable) that are based on standard considerations will be adjustable at the end of each Fund Year, based on actual payrolls, manual rates and experience modifiers. At the end of each Fund Year there will be submitted by the Employer Member actual payrolls as reflected on the books of the Employer Member. The Fund reserves the right to audit the payroll records of any Employer Member. 4. The Fund has contracted with the . Servicing Contractor to supply safety engineering services to the Employer Member to assist them in following a plan of loss control that may result in reduced losses. The Servicing Contractor shall provide all of the services as provided in the service contract entered into by and between the Servicing Contractor and the Fund on behalf of the Employer Member. The Employer Member agrees that it will cooperate in instituting any and all reasonable safety regulations that may be recommended for the purpose of eliminating or minimizing hazards that would contribute to workers' compensation losses. In the event that the recommendations submitted by the Servicing Contractor 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. The safety engineering services provided are, however, optional with the Employer Member. If the Employer Member does not want this service, its denial should be indicated on Exhibit A. -2- 5. The Employer Member agrees that it will appoint a workers' compensation coordinator of department head rank, and that the Fund and its Servicing Contractor shall not be required 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 and to the Servicing Contractor. 6. The Fund, through the Servicing Contractor employed by the Fund, agrees to handle any and all claims after notice of injury has been given, to prepare all required Industrial Accident Board forms, and provide a defense. The Employer Member hereby appoints Servicing Contractor as its agent to act in all matters pertaining to processing and handling of workers' compensation claims and shall cooperate fully in supplying any information needed or helpful in such defense. They shall carry on all negotiations with the injured employee and his attorney at the pre -hearing conference and negotiate within authority previously granted by the Fund. If a personal appearance by the employer or a co - employee is necessary, the expense of this appearance will be paid by the Employer Member. The Servicing Contractor will retain and supervise legal counsel on behalf of and at the expense of the Fund necessary for the prosecution of any litigation. All decisions on individual cases shall be made by the Fund through the Servicing Contractor, 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 their employees, to consult with the Fund on any decision made by the Servicing Contractor. Any suit brought or defended by the Servicing Contractor and the Fund shall be in the name of the political subdivision. Notwithstanding any provisions of this paragraph, all reports and filings required by the Workers' Compensation Law and the Industrial Accident Board of an employer will be the responsibility of the Employer Member. It is further understood that this agreement does not cover discrimination suits under Article 8307c. There shall be supplied periodically to each Employer Member a computer printout involving a statement of claims, claims status, and activity report cumulative for each Fund year. 7. The Employer Member acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any amendments thereto. S. The Fund agrees that all Fund transactions will be annually audited by a nationally recognized, certified public accounting firm. 9. - The Fund shall pay on behalf of each Employer Member to the State Board of Insurance the Industrial Accident Board maintenance tax (Article 8306, Sec. 28, V.A.T.S.). The Employer Member shall reimburse the Fund for this payment when presented. 10. The Fund shall at all times provide for catastrophic excess of loss reinsurance as set out in Exhibit A. 11. The Fund further agrees to provide a complete range of administrative services to include, by way of example, but not of limitation, the following: a. Claims print-outs rendered monthly and keyed by designated Employer Member functions or departments. b. Breakdown of payments made by compensation and medical. C. Monthly billing statement 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. 12. 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 -payments of any claim due to the failure of the Employer Member to maintain adequate reserves for the payment of claims. IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto duly authorized this 26th day of June , 1980 Contract Number The Workers' Compensation Coordinator for the Employer Member is: NAME P. 0. Box 2000 CITY Lubbock, Texas Zip 79457 TELEPHONE 806-762-6411 -4- TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND BY Fund Secretary Austin, Texas FOR CITY OF LUBBOCK Employer Member BY " Authorized Official Bill McAlister, Mayor Lubbock, Texas ATTEST: EVELYN GAFFGA City Secretary -Treasurer Texas