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HomeMy WebLinkAboutResolution - 2023-R0124 - Workers Compensation from Texas Municipal LeagueResolution No. 2023-R0124 Item No. 6.11 March 7, 2023 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, workers' compensation coverage from the Texas Municipal League Intergovernmental Risk Pool, for a total amount not to exceed $2,171,579.00; and THAT the City Manager may execute any routine documents and forms associated with said coverage. Passed by the City Council this A EST: Cdirtirey Paz, Interim City geahary APPROVED AS TO CONTENT: f �- A052�z D. 11ru Ko lich, Chie mancial Officer APPROVED AS TO FORM: sell, Deputy City Attorney RES.Risk Mgmt-Municipal League Risk Pool February 21, 2023 March 7, 2023 Resolution No. 2023-R0124 Workers' Compensation Insurance Company: Texas Municipal League Policy Term: 04/01/2023 to 04/01/2024 Coverage: Part One — Workers' Compensation agrees to pay the benefits required under the applicable State's Workers' Compensation Law. Part Two — Employers Liability for work -related injuries or disease other than that which is imposed by a state Workers' Compensation Law. Part Three — Other States. States in which you have no exposure on the policy inception date, but in which you may have a temporary or future worksite or exposure in during the policy term. If listed, statutory benefits will apply as if the state were listed in Part One. Total Contribution: $2,071,579.00 Employers Liability - Each Accident Employers Liability - Disease (Policy Limit) $1,000,000 $1,000,000 Employers Liability - Disease (Each Employee) $1,000,000 j Experience Mod 0.62 Statutory Limits Apply Yes Deductible $25,000 Coverage is not automatic in all states. Please notify us immediately if you begin operations in another state. • Total Premium $2,114,040 • 2% Paid in Full Discount: ($42,461) • Premium Including Discount: $2,071,579 • Average Out of Pocket at $25,000 deductible is: $781,000 This requires $100,000 deposit in addition to the $2,071,579 premium. The deposit will be credited as deductible is applied. Total Due at Binding: $2,171,579 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W�138 Workers' Compensation Schedule of Exposures State: TX Experience Modifier: 0.62 Location 1: PO Box 2000, Lubbock, TX Classification Description Estimated Rate # of Estimated Payroll Emp. Contribution 0011 Farm, Not Otherwise Classified & Drivers 75,173 8.42 1 6,330 3365 WeldinglCutting, Not Otherwise Classified 131,064 11.98 2 15,701 4299 Printing $4,207 2.83 2 2,383 4511 Building Inspectors, County Appraisal District, 2,470,395 0.87 45 21,492 Analytical Chemists 4519 Insect Extermination 224,286 7.06 5 15.835 5190 Radio & Electrical Installations and Traffic Signals 1,383,508 5.24 46 72,496 and Controls 5191 Computer Device Installation, Inspection, 1,666,642 1.10 29 18,333 Servicing or Repair 5506 Street & Road Repair 5,713,241 7.62 124 435,349 5507 Street & Road Construction 195,937 7.62 4 14,930 7380 Drivers, Chauffeurs and their Helpers, NOC 13,242 6.72 2 890 7423 Airport Operations 974,440 3.66 17 35,665 7520 Waterworks Operation, Flood Control System 9,704,400 4.50 232 436,698 Maintenance, Irrigation Control 7580 Sewage Treatment & Collection 246,357 4.50 5 11,086 7590 Refuse Reduction 539,004 9.15 8 49,319 7704 Firefighters - Paid 43,559,813 6.02 458 2,622,301 7720 Polioe Officers - Paid (excluding Motorcycle 47,082,950 5.33 587 2,509,521 Officers) 8107 Heavy Equipment Maintenance 1,103,992 7.91 28 87,326 8292 Warehouse Operations 124,197 7.43 3 9,228 8391 Automobile Garage 170,068 4.18 4 7,109 8601 Surveyors, Engineers & Architects 1,163,308 0.84 3 9,772 8810 Clerical - Office 29,562,737 0.41 727 121,207 8831 Animal Shelters 1,056,89E 6.38 23 67,430 8833 Hospital Professionals 2,394,969 1.21 39 28,979 6838 Public Library or Museum Professional 1,873,728 0.55 68 10.306 Employees & Clerical 9014 Lawn Maintenance, Building Service Contractor 33,591 6.07 2 2,039 and Mowing along Canals & Roadways 9015 Building Operations 1,523,482 5.52 48 84,096 9016 Auditoriums & Zoos (Use Code 8288 for Zoo 284,186 5.54 4 15,744 Animal Handlers.) This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W.139 Classification Description Estimated Rate # of Estimated Payroll Emp. Contribution 9079 Restaurants, Not Otherwise Classified 13,382 5.06 2 677 9101 School, Day Nursery, Museum or Public Library 18,986 6.34 2 1,204 Employees, Other than Clerical and Professional 9102 Parks & Recreation 3,183,735 3.60 148 114,614 9154 Theaters - All Others 122,948 2.65 2 3,258 9220 Cemetery Operations 177,127 6.92 5 12,257 9402 Street Cleaning $4,446 11.34 3 9,576 9403 Refuse Collection & Disposal - Conventional 98,784 8.12 1 8.021 Subtotals 157,055,223 2,679 6,861,172 Volunteers and Elected Officials: 37240 Outside Volunteers 5,800 7.11 5 412 7704V Volunteer Firefighters No Exposure 0 Not Covered 7720E Volunteer Ambulance/EMS No Exposure 0 Not Covered 7720V Police Reserves No Exposure 0 Not Covered 8742E Elected/Apptd Officials -Governing Board 4,200 0.43 7 18 8742F Elected/Apptd Officials -All Boards/Commissions No Exposure 0 Not Covered 87421 Inside Volunteers 2,900 0.70 20 20 8888V Police Reserves -Motorcycle No Exposure 0 Not Covered Subtotals 12,900 32 450 Totals 157,068,123 2,711 6,861,622 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. ®, 40 Location 2: Lubbock Power & Light, Lubbock, TX Classification Description Estimated Rate # of Estimated Payroll Emp. Contribution 4511 Building Inspectors, County Appraisal District, 142,725 0.87 1 1,242 Analytical Chemists 5190 Radio & Electrical Installations and Traffic Signals 50,984 5.24 1 2,672 and Controls 5191 Computer Device Installation, Inspection, 190,830 1.10 1 2,099 Servicing or Repair 7539 Electrical Distribution 18,640,221 4.08 241 760,521 8107 Heavy Equipment Maintenance 36,554 7.91 1 2,891 8810 Clerical — Office 7,465,011 0.41 482 30,607 Subtotals 26,526,325 727 800,032 Volunteers and Elected Officials: 37240 Outside Volunteers 7704V Volunteer Firefighters 7720E Volunteer Ambulance/EMS 7720V Police Reserves 8742E Elected/Apptd Officials -Governing Board 8742F Elected/Apptd Officials -All Boards/Commissions 87421 Inside Volunteers 8888V Police Reserves -Motorcycle Subtotals Total Manual Contribution Experience Modifier (0.62) Fund Discount (20%) Paid in Full Discount (2%) Deductible Credit No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered No Exposure 0 Not Covered 0 0 0 Totals 26,526,325 727 800,032 $183,594,448 $7,661,654.00 ($2,911,429.00) ($950,045.00) ($42,461.00) ($1,686,140.00) $2,071,579.00 $100,000.00 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. 41 Audit Provisions i Audit based on Payroll $2,171,579 Premiums are calculated based on the insurance company's rules and rates. Premiums shown as advance or deposit premiums are subject to audit and adjustment at the close of each audit period. If the advance premium is less than the earned premium as determined by the audit, the insured pays the difference. If the advance premi26um is more than the earned premium as determined by the audit, the insurance company returns the difference to the insured. The insured must keep records of the information needed for the audit and the premium calculations and send copies to the insurance company when it requests them. Excluded coverage or other coverages sought may be available: please discuss with USI Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations, exclusions and sublimits that will govern in the event of a loss. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W.142 VOLUNTEER ENDORSEMENT TO INTERLOCAL AGREEMENT This endorsement forms a part of the Declarations to which attached, effective on the inception date of the coverage unless otherwise stated herein, and modifies such coverage as is afforded by the provisions of the coverage shown below. WORKERS' COMPENSATION COVERAGE Member Name: Lubbock Member ID: 0547 Effective Date: 04/01/2023 In consideration of the Employer Pool Member's request for payment of additional benefits and in further consideration of the Fund's agreement to pay such benefits, the Interlocal Agreement is amended by adding thereto the applicable coverages indicated below. The Fund will pay on behalf of the Employer Pool Member if a volunteer employee in a classification for which coverage was accepted shall sustain injury, including death resulting therefrom, under circumstances which would have rendered the Employer Pool Member liable for compensation if the injured volunteer employee and the Employer Pool Member had been subject to the Texas Workers' Compensation Law with respect to such voluntary employment, an amount equal to the compensation and other benefits which would have been payable under such law had the injured volunteer and the Employer Pod Member been subject to such law with respect to such voluntary employment. The parties of this agreement do not by its use intend to make applicable to themselves any provision of the Texas Workers' Compensation Law not already in force and effect as to them. The reference to the Texas Workers' Compensation Law is intended as a measure and extent of benefits and the liability therefore and not an adoption of the law. The Employer Pool Member agrees to pay the contribution for the volunteer employee classifications shown on the Payroll Schedule (W102). The information regarding coverages accepted or rejected has been derived from documentation on file including the signed acceptance executed by a representative of this entity duly authorized to accept or reject Workers' Compensation coverage for volunteers. This agreement shall be subject to all the terms, provisions and conditions of the Interlocal Agreement, and nothing herein contained shall vary, alter or extend any term, provision or condition of the Interlocal Agreement except as herein specifically stated. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W,143 Proposal Workers' Compensation Retention Schedule Member Name Lubbock Member ID 0547 Effective Date 04/01/2023 Anniversary Date 04/01/2024 Date 02/17/2023 1. TOTAL ANNUAL CONTRIBUTION $ 2,114,040 The Member shall pay the TOTAL ANNUAL CONTRIBUTION shown in four equal quarterly payments, subject to adjustment based on the annual anniversary date payroll audit The TML Workers' Compensation Joint Insurance Fund, hereinafter referred to as the FUND, shall make initial payment for all losses and allocated loss adjustment expenses wlilch shall include, but not be limited to, attorney's fees, outside investigation and Texas Department of Insurance Division of Workers' Compensation representation charges. 2. PER OCCURRENCE RETENTION $ 25,000 OCCURRENCE is defined as an accident resulting in bodily injury to one or more employees at a specific place and time. Repetitive traumatic injury or occupational disease sustained by each employee shall be deemed to be one, separate OCCURRENCE and the OCCURRENCE shall be deemed to take place on the date upon which the employee is last exposed at work to conditions allegedly causing such traumatic injury or occupational disease. 3. ANNUAL AGGREGATE RETENTION $ N/A 4. AGGREGATE LIMIT OF LIABILITY $ N/A After payments within the PER OCCURRENCE RETENTION exceed the ANNUAL AGGREGATE RETENTION, the FUND will pay all losses and allocated loss adjustment expenses, including those within the PER OCCURRENCE RETENTION, until the AGGREGATE LIMIT OF LIABILITY is exhausted 5. LOSS DEPOSIT FUND a 100,000 The Member agrees to promptly reimburse monthly the FUND for any payments made on its behalf and to maintain a LOSS DEPOSIT FUND in the amount specified. The LOSS DEPOSIT FUND is an average of two months of the Member's paid losses and is evaluated annually. If the Member fails to reimburse the FUND within 15 days of the date of the invoice, the FUND shall notify the Member in writing of its non-compliance. If the Member fails to reimburse the FUND within five days of such notice, the FUND, at its discretion, may declare the Member in default and terminate the Interlocal Agreement by giving the Member 10 days' written notice of its intent to terminate as specified in paragraph 5 of the Workers' Compensation interlocal Agreement Interest charges of 1 % per month shall be due on any bill not paid within 30 days. Texas Municipal League Intergovemmental Risk Pool 1821 Rutherford Lane, First Floor, Austin, Texas 78754 E120 (512) 491-2300 1 (800) 537-6655 05114/2020 Page 1 of 2 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock r Confidential. © 2021 USI Insurance Services. All rights reserved. I'�q l�1 44 Proposal Workers' Compensation Retention Schedule 6. SUBROGATION RECOVERIES: The FUND s."Il be subrogated to all the Member's rights of recovery in a third -party action under Texas Labor Code Chapter 417. The FUND will act in art with the Member in the exercise of such rights of recovery. If the FUND obtains a subrogation recovery of workers' compensation benefits, the proceeds of such subrogation recovery shall first be used by the FUND to pay its costs of recovery, and any excess shall be divided between the FUND and the Member to pay their losses in the proportion of their respective interests in benefits paid for the OCCURRENCE at the time of recovery. Any excess paid to the Member shall not be applied toward the Member's PER OCCURRENCE RETENTION for the workers' compensation claim and thus shall not be applied to reduce the amount of payments deemed paid by the Member within the PER OCCURRENCE RETENTION. If the FUND obtains an advance against future benefits under Section 471.002(b) of the Texas Labor Code, the advance shall first be applied toward the Member's PER OCCURRENCE RETENTION if not yet fully paid at the time of recovery, and any excess advance against future benefits shall be applied toward future benefits owed by the FUND. Texas Municipal League Intergovernmental Risk Pool 1821 Rutherford Lane, First Floor, Austin, Texas 78754 E120 (512) 491-2300 1 (800) 537-6655 05114l2= Page 2 of 2 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/17/2023 Prepared for City of Lubbock Confidential. C 2021 USI Insurance Services. All rights reserved. W�145