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Home My WebLink AboutResolution - 2024-R0122 - Workers’ Compensation , Texas Municipal League Intergovernmental Risk Pool - 03/26/2024Resolution No. 2024-R0122 Item No. 5.9 March 26, 2024 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 $1,970,994.44; and THAT the City Manager may execute any routine documents and forms associated with said coverage. Passed by the City Council this � March 26, 2024.___.__ _____ ___ APPROVED AS TO CONTENT: ! D. u Kost ich, Chief Financial Officer APPROVED AS TO FORM: G%/ Je art el , Deputy City Attorney RES.Risk Mgmt-Municipal League Risk Pool February 26, 2024 Resolution No. 2024-R0122 Workers' Compensation Insurante 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. Total Contribution: 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. $1,870,994.44 + $100,000.00 Loss Deposit Fund . �• . . Employers Liability - Each Accident $1,000,000 Employers Liability - Disease (Policy Limit) Employers Liability - Disease (Each Employee) Experience Mod Statutory Limits Apply Deductible $1,000,000 $1,000,000 0.53 Yes $25,000 Coverage is not automatic in all states. Please notify us immediately if you begin operations in another state. • Total Premium $1,909,178 • 2% Paid in Full Discount: ($38,183.56) • Premium Including Discount: $1,870,994.44 • Average Out of Pocket at $25,000 deductible is: $781,000 This requires $100,000 deposit in addition to the $1,870,994.44 premium. The deposit will be credited as deductible is applied. Total Due at Binding: $1,970,994.44 This proposal is merely a descriptive summary of coverege provided by the insurence companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurence contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. �� 2021 USI Insurance Services. All rights reserved. � i �� Workers' Compensation Schedule of Exposures State: TX Experience Modifier: 0.53 Classlficatlon Descriptlon Estimated Rate # ot Estlmated Payroli Emp. Contrlbutlor 3365 Welding/Cutting, Not Otherwise Classified 136,005 11.98 3 16,293 4299 Printing 84,300 2.83 2 2,386 4511 Building Inspectors 3,801,218 0.87 79 33,071 4511 Analytfcal Chemists 1,816,939 0.87 34 15,807 4519 Insect Extermination 234,668 7.06 5 16,568 5190 Radio & Electrical Installatlons and Trattic Stgnals 1,251,886 5.24 29 65,599 and Controls 5191 Computer Device Installation, Inspecdon, 2,330.807 1.10 33 25,639 Servicing or Repalr 5506 Street & Road Repafr 1,759,183 7.62 35 134,050 7423 Airpo�t Operations 2,135,191 3.66 40 78,148 7520 Watervvorks Operation, Flood Contral System 7,432,561 4.50 138 334,465 Malntenance, IrrtgaUon Control 7550 Combined Utility OperaUons (Water and Sewer) 159,749 4.50 3 7,189 7580 Sewage Treatment & Collection 2,550,841 4.50 42 114,788 7590 Refuse Reducdon 345,963 9.15 7 31,656 7704 Firefighte�s - Paid 44.401,076 6.02 406 2,672,945 7720 Police Of(icers - Paid (excluding Motorcycle 49,542,784 5.33 505 2,640,630 Offlcersy 8107 Heavy Equlpment Maintenance 478,866 7.91 9 37,878 8292 Warehouse Operatlons 174,463 7.43 4 12,963 8391 Aulomoblle Garage 1,298,048 4.18 26 54,258 8601 Surveyors, Engineers & Architects 1,877,576 0.84 23 15,772 8742 Messengers and Socfal Workers 539,598 0.83 15 4,479 8810 Clerical - Office 25,883,341 0.41 433 105,302 8831 Animal Shelters 1,460,177 6.38 40 93,159 8833 Hospital Professlonals 944,875 1.21 15 11,433 8837 Soclal Weltare Operations, Not Otherwise 1,536,595 10.10 26 155,196 Classified 8838 Public Llbrary or Museum Protessional 2,438,738 0.55 81 13,413 Employees & Cle�ical 9014 Lawn Maintenance, Bullding Service Contractor 35,498 6.07 1 2,155 and Mowtng along Canals & Roadways 9015 Bullding Operations 1,269,157 5.52 19 70,057 9016 Audltoriums & Zoos (Use Code 8288 for 200 1,336,602 5.54 27 77,372 Animal Handlers.) 9101 C School Crossing Guards 110,244 3.27 13 3,605 9102 Parks 8 RecreaUon 4,115,91 B 3.60 120 148,173 9220 Cemetery Operattons 281,146 6.92 6 19,455 9402 Street Cleaning 479,928 11.34 11 54,424 9404 Refuse CollecUon & Disposal - Fully 4,286,394 6.47 76 277,330 Containerized Subtotals 166,390,333 2,306 7,345,658 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 contrect. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. O 2021 USI Insurance Services. All rights reserved. �� 34 Classiflcatlon Descriptlon Estimeted Rate # 01 Estlmated Payrall Emp. Contributlon Volunteers and Elected Officlals: 37240 7744V 7720E 7720V 8742E 8742F 87421 8888V Outside Volunteers Volunteer Fireflghters Volunteer Ambulance/EMS Police Reserves ElectedlApptd Of�cfals-Governing Board Elected�Apptd Oiflcials-All Boards/Commisslons Inside Voiunteers Police Reserves-Motorcycle No Exposure Subtotals 3,820 110 7.11 No Expasure No Exposure No Expqsure 3,600 0.43 No Exposure 110 0.70 8 Not Covered Not Covered Not Covered 15 Not Covered t Not Covered 24 0 0 0 0 6 0 0 0 6 Totals 166,394,153 2,312 7,345,682 Locatlon 2: Lubbock Power 8� Light, Lubbock, TX Ciasslficatlon Descriptlon Esrimeted Rete # of Estimated Payroll Emp. ContHbutlon 7539 Electricaf Distribution 17,305,659 4_08 161 706,071 8601 Surveyors, Engineers & Architects 1.197,153 0.84 14 10,056 8810 Clerical — Offlce 7,889,449 0.41 128 32,347 Subtotels 26,392,261 303 748,474 Volunteers and Elected Offlclals: 37240 Outside Volunteers No Enposure 0 Not Covered 7704V Volunteer Flrefighters No Enposure 0 Not Covered 7720E Volunteer AmbulancelEMS No F�cposure 0 Not Covered 7720V Police Reserves No Exposure 0 Not Covered 8742E Elected�Apptd Officials-Goveming Board No Exposure 0 Not Covered 8742F ElectedlApptd Oi�cials-All BoardslCommissions No Exposu�e 0 Not Covered 87421 Inside Volunteers No Exposure 0 Not Covered 8888V Police Reserves-Motorcycle No Enposure 0 Not Covered Subtotels 0 0 0 Totals 26,392,261 303 748,474 $192,786,414 � �. � . Total Manual Contribution $8,094,156.00 Experience Modifier (0.53) Fund Discount (20%) Paid in Full Discount (2%) Deductible Credit ($3,804,253.00) ($857,981.00) ($38,183.56) ($1,522,744.00) $1,870,994.44 $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 insurence contrect. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. �O 2021 USI Insurance Services. All rights reserved. �6 � 35 Audit Provisions �- � . �-.. Audit based on Payroll $1,870,994.44 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: 02/22/2024 Prepared for City of Lubbock Confidential. OO 2021 USI Insurance Services. All rights reserved. � � 36 VOLUNTEER ENDORSEMENT TOINTERLOCAL AGREEMENT This endorsement . forms a part of the Decleratlons to which attached, effective on the Inceptlon date of the coverage unless otherwise stated herein, and modlfies such coverage as is afforded by the provislons of the coverage shown below: WORKERS' COMPENSATION COVEt�AGE Member Name: Lubbock Member ID: 0547 Efiective Date: 04f01 i2024 In consideraUon of the Employer Pool Member's request for payment of addidonal benefits and in further consideratlon of the Fund's agreement to pay such beneflts, the Interlocal Agreement ts amended by adding thereto the applfcabie coverages indicated below. The Fund will pay on behalf of the Employer Pool Member If a volunteer employee in a classification for whfch coverage was accepted shall sustain InJury, including death resulting theretrom, under cfrcumstances which would have rendered the Employer Pool Member Ifable tor cflmpensaUon It 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 compensaUon and other benefits which would have been payable under such law had the 1nJured volunteer and the Empioyer Pool Member bee� subject to such law with respect to such voluntary employment. me partles ot this agreement do not by Its use intend to make applicable to themselves any provislon oi the Texas Workers' Compensation Law not already in torce and eftect as to them. The reterence 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 Emptoyer Pool Member agrees to pay the contribudon for the volunteer employee classificatlons shown on the Payroll Schedule (W 102). The informatlon regarding coverages accepted or rejected has been deri�ed irom documentaUon on tile 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 ihe terms, provisions and conditions oi the Interlocal Agreement, and nothing hereln contained shall vary, alter or extend any terrn, provision or conditlon 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: 02/22/2024 Prepared for City of Lubbock Confidential. OO 2021 USI [nsurance Services. All rights reserved. � � 37 Proposal Workers' Compensation Retention Sche�ule Member Name : Lubbock Member ID : 0547 Effective Date : 04I01/2024 Anniversary Date : 04�01f2025 Date : 02l21 l2024 1. TOTAL ANNUAL CONTRIBUTION $ 1,909, t 78 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' Compensatlon Joint Insurance Fund, hereinafter referred to as the FUND, shall make init(al payment tor all losses and allocated loss adJustment expenses which shall Include, but not be Iimited to, attomey's fees, outside investigatlon and Texas Department of Insurance Dfvislon of Workers' Compensation representation charges. 2. PER OCCURRENCE RETENTION $ 25,000 OCCURRENCE is deflned as an accident resulting In bodfly inJury to one or more empbyees at a speciiic place and t(me. Repetitive traumaUc 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 conditlons allegedly causing such traumatic inJury or occupattonal disease. 3. ANNUAL AGGREGATE RETENTION $ NIA 4. AGGRERATE LIMIT OF LIABILITY $ N/A Aiter payments within the PER OCCURRENCE RETENTION exceecl the ANNUAL AGGREGATE RETENTION. the FUND will pay all losses and allocated loss adjustment expenses, including those within the PER OCCURRENCE RETENTtON, unttl the AGGREGATE LIMIT OF LIABILITY is exhausted 5. LOSS DEPOSIT FUND $ t oo,000 The Member agrees to promptly relmburse monthly the FUND for any payments made on its behalf and to mafntain a LOSS DEPOSIT FUND in the amount specitied. The LOSS DEPOSIT FUND is an average of two months of the Member's pald losses and is evaluated annually. If the Member iails to relmburse the FUND wfthin 15 days of the date of the invoice, the FUND shall notify the Member in writfng oi its non-compUance. If the Member falls to reimburse the FUND within flve days of such notice, the FUND, at Its discretfon, may declare the Member in detault and terminate the Interlocal Agreement by giving the Member 10 days' written notice of its intent to termfnate as specifled in paragraph 5 oi the Workers' Compensation Interlocal Agreement. Interest charges oi t% per month shall be due on any blll not pald within 30 days. 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: 02/22/2024 Prepared for City of Lubbock Confidential. �O 2021 USI Insurance Services. All rights reserved. � � 38 Proposat Workers' Compensation Retention Schedule 6. SUBROGATION RECOVERIES: The FUND shall be subrogated to all the Member's rights oi recovery in a thtrd-party action under Texas Labor Code Chapter 417. The FUND wflt act in concert with the Member in the exercise of such rights of recovery. Ii the FUND obtains a subrogat[on recovery of workers' compensaUon beneffts, the proceeds oi such subrogatlon 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 thefr losses in the proportlon of their respective interests in benefits paid for the OCCURRENCE at the tlme of recovery. My excess paid to the Member shall not be applfed toward the Member's PER OCCURRENCE RETENTION for the workers' compensatlon clalm and thus shall not be applled to reduce the amount of payments deemed paid by the Member wlthin the PER OCCURRENCE RETENTION. If the FUND obtalns an advance against future benefits under Sectlon 471.002(b) of the Texas Labor Code, the ad�rance shall first be applfed toward the Member's PER OCCURRENCE RETENTION li not yet fully paid at the time oi recovery, and any excess advance against future benefits shall be applied toward future beneflts owed by the FUND. 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 contrect for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock � Confidential. O 2021 USI Insurance Services. All rights reserved. d � 39