Loading...
HomeMy WebLinkAboutResolution - 2000-R0334 - Contract - TMLIRP - Worker's Compensation Insurance - 09/27/2000Resolution No. 2000-80334 September 27, 2000 Item No. 22 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract for Worker's Compensation Insurance, by and between the City of Lubbock and Texas Municipal League Intergovernmental Risk Pool of Austin, Texas, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 27th day of September , 2000. WINDY,4fT`f0N,MAYOR ATTEST: U Kaythig Darnell, City Secretary APPROVED AS TO CONTENT: V�� Victor Kilman, urchasing Manager APPROVED AS TO FORM: = XL William de Haas, Competition and Contract Manager/Attorney gs/ccdocs//Workers Compensation Insur.res September 18, 2000 Resolution No. 2000—RO334 September 27, 2000 Texas Municipal League Item No. 22 Intergovernmental Risk Pool 1821 Rutherford Lane, First 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 form a joint self-insurance pool to be named the 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, 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 like 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 Pool Members. The conditions of membership 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' compensation 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 a.m. October 1 through 12:01 a.m. the following October 1. h. Agreement Period. The 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. 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 first 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 10/90 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 Agreement: elected officials; volunteer firefighters; police reserves; volunteer ambulance/ems attendants; all inside volunteers; all outside volunteers. Provisions exist for reporting estimated annual payroll substitute 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 may be terminated by eitherparty 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 notice if the reason is because of a 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 further that the Employer 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. 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. Realizing 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 information as soon as possible before the beginning of each new Fund Year. The Fund will have the right to terminate 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 for each 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 collect any and all contributions that are earned 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. If the EmployerPool Memberhas established, through experience, a modifier, then theexperience 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 of assuming such retention. The Employer Pool Member agrees to promptly pay all reimbursable retentions upon receipt of statement. 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 EmployerPool Memberactual payrolls as reflected 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 $50,000 annually. In the event that the Employer Pool Member fails or refuses 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 Iosses to protect its financial integrity. The Employer Pool Member's contributions shall be limited to that amount as calculated under this Agreement. Revised 10/% 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 or during any Fund Year. 7. 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 will 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. 8. 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 injury has been given, to prepare all required Texas Workers' Compensation Commission forms, 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. If a personal appearance by the employer or a co -employer or a 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 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 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 Member shall have the 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' Compensation Commission 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 shall be supplied quarterly to each Employer Pool Member a computerprintout involving a 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 of the Fund, 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 pro rata portion of the 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 order to 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 case reserves 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 uncommitted 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 right to retain a portion of the excess contributions for self -funding such excess and/or aggregate protection. 14. Payroll Classification ,Schedule, Experience Modifier and Volunteer Summary is attached as Addenduun #1 and made a part 1of this contract for all purposes, Sir,a.N\ ca,��r.c a�1G -� �-� :. S C oe� ''rc` A rw\� A,14 , % AA•,e �4, N "o;-X%nc)ob� \,zoao. l TO BE COMPLETED BY MEMBER: EMPLOYER MEMBERS' FUND CONTACT (See Section 8): Member Name City of Lubbock Name of Contact Leisa Hutcheson Title Risk Management Coordinator Mailing Address PO Box 2000, Lubbock, TX 79457 Street Address (if different from above) 1625 13th Street, Suite 104 City Lubbock, TX Zip 79401 Phone (806) 775-2277 SIGNATURE OF AUTHORIZED MEMBER OFFICIAL ao"�4) Title Member's Federal Tax I.D. Number 7 5- 6 0 0 0 5 This Information is MANDATORY APPROVED AS CONTENT: September 27, 2000 DatIrI'E�'I' 9 0 I l Q.(VtJ� �' DC✓� tcaytie Darnell, Sec WYI-rYdM ae Haa5, (UrrlUh Utile; ONLY) (-:antracts Manager/Attrrne� Effective Date of This Agreement October 1, 2000 Member Name City of Lubbock Contract Number 0547 SIGNAq URE OF A Marvin Townsend, Executive Director 9/11/00 Title Date Revised 10/90 Resolution No. 2000- R0334 Addendum #1 September 27, 2000 Item No. 22 TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL PAGE: 1 WORKERS' COMPENSATION PROPOSAL PROPOSAL NUMBER: 547-00 COVERAGE DATES: MEMBER NAME: Lubbock 10/01/2000 TO 10/0112001 ATTN: Ms. Leisa Hutcheson 12:01 AM STANDARD TIME P.O. Box 2000 Lubbock, TX 79457 ENTITY TYPE: CITY FED ID NO: 75-6000590 ACCIDENT DEDUCTIBLE: .00 AGGREGATE DEDUCTIBLE: .00 PAYROLL CLASSIFICATION SCHEDULE: 0971172000 --------------------------- CLASS - CLASSIFICATION ESTIMATED ESTIMATED CODE ------------------------------------------------ DESCRIPTION PAYROLL RATE - ------------------------------------ CONTRIBUTION LOC: LUBBOCK 0011 FARM NOC 135,712 9.08 12,323.00 3064 SIGN MANUFACTURING 44,415 5.25 2,332.00 4299 PRINTING 77,977 3.05 2,378.00 4511 BLDG INSPECT; CADS; ANALY CHEM 1,055,465 1.23 12,982.00 4519 INSECT EXTERMINATION 193,896 7.62 14,775.00 5190 RADIO & ELEC INSTL: TRFF SGNL 582,292 6.34 36,917.00 5191 COMPUTER DEVICE INSTL: INSPECT 1,042,039 1.19 12,400.00 5506 STREET AND ROAD REPAIR 602,302 12.90 77,697.00 5507 STREET AND ROAD CONSTRUCTION 576,162 12.90 74,325.00 5606 CONTRACTORS -EXEC SUPVR (NO DIR 49,218 2.96 1,457.00 6229 FLOOD CONTROL 219,299 8.86 19,430.00 6306 SEWER CONSTRUCTION 49,763 14.49 7,211.00 7380 DRIVERS, CHAUFFEURS & THEIR HE 17,855 6.70 1,196.00 7423 AIRPORT OPERATIONS 666,825 3.60 24,006.00 7520 WTRWRKS OPR; FLD CNTL SYS MAIN 4,680,190 5.25 245,710.00 7539 ELECTRIC DISTRIBUTION 7,748,713 1.26 97,634.00 7580 SEWAGE TREATMENT & COLLECTION 528,171 2.73 14,419.00 7590 REFUSE REDUCTION 423,863 9.37 39,716.00 7704 FIRE FIGHTERS -PAID 11,537,296 2.77 319,583.00 7720 POLICE OFFICERS - PAID 14,524,363 5.05 733,480.00 8107 HEAVY EQUIPMENT MAINTENANCE 1,089,967 5.27 57,441.00 8292 WAREHOUSE OPERATORS 84,464 8.02 6,774.00 8601 SURVEYORS, ENGINEERS & ARCHITE 234,128 .91 2,131.00 8810 CLERICAL - OFFICE 13,216,364 .34 44,936.00 8831 ANIMAL SHELTERS 312,084 2.31 7,209.00 8833 HOSPITAL PROFESSIONALS EXCLD C 1,279,526 1.33 17,018.00 8838 SCHOOLS, LIBRARY, MUSEUM PROF 1,345,350 .41 5,516.00 9015 BUILDING OPERATIONS 1,036,542 5.80 60,119.00 9016 AUDITORIUMS & ZOOS 231,202 5.98 13,826.00 9019 TOLL GATES 12,719 2.31 294.00 9102 PARKS AND RECREATION 2,266,029 3.56 80,671.00 9220 CEMETERY OPERATIONS 182,842 7.46 13,640.00 TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL PAGE: 2 WORKERS' COMPENSATION PROPOSAL PROPOSAL NUMBER: 547-00 COVERAGE DATES: MEMBER NAME: Lubbock 10101/2000 TO 10/01/2001 PAYROLL CLASSIFICATION SCHEDULE: 09/11/2000 CLASS CLASSIFICATION ESTIMATED ESTIMATED CODE DESCRIPTION PAYROLL RATE CONTRIBUTION -------------------------------------------------------------------------------------- 9402 STREET CLEANING 9403 REFUSE COLL-DISP CONVENT 9404 REFUSE COLL-DISP CONTAINERIZED SUB TOTAL VOLUNTEERS AND ELECTED OFFICIALS: 238,166 11.11 26,460.00 138,072 10.93 15,091.00 899,396 7.10 63,857.00 67,322,667 2,164,954.00 ( CLASS CODE 7704V INCLUDES EQUIVALENT PAYROLL FOR VOLUNTEER AMBULANCE WHERE THE VOLUNTEER FIREFIGHTERS PERFORM BOTH FUNCTIONS ) 37240 OUTSIDE VOLUNTEERS 12,875 7.35 946.00 7704V VOLUNTEER FIREFIGHTERS Not Proposed 7720E VOLUNTEER AMBULANCE/EMS Not Proposed 7720V POLICE RESERVES Not Proposed 8742E ELECTED/APPOINTED OFFICIALS 156,900 .42 659.00 8742I INSIDE VOLUNTEERS 54,075 .73 395.00 SUB TOTAL 223,850 2,000.00 TOTALS 67,546,517 2,166,954.00 TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL PAGE: 3 WORKERS' COMPENSATION PROPOSAL PROPOSAL NUMBER: 547-00 COVERAGE DATES: MEMBER NAME: Lubbock 10/01/2000 TO 10101/2001 PAYROLL CLASSIFICATION SCHEDULE: 09/11/2000 -------------------------------------------------------------------------------------- TOTAL MANUAL CONTRIBUTION 2,166,954.00 EXPERIENCE MODIFIER .69 TOTAL STANDARD CONTRIBUTION 1,495,198.00 FUND DISCOUNT ( .05) .95 DISCOUNTED STANDARD CONTRIBUTION 1,420,438.00 DEDUCTIBLE CREDIT .00 NET CONTRIBUTION 1,420,438.00 TOTAL ANNUAL CONTRIBUTION 1,420,438.00 WORKERS' COMPENSATION VOLUNTEER SUMMARY PROPOSAL NO.: 547-00 Lubbock EFFECTIVE DATE: 10/01/2000 Statutory coverage for volunteers as authorized by Section 3 of the Workers' Compensation Interlocal Agreement and Section 504.012 of the Texas Workers' Compensation Act is hereby being providedas accepted by the Member or not being provided because of the Member's rejection of the coverage for the specific categories listed below. VOLUNTEERS AND ELECTED OFFICIALS 37240 OUTSIDE VOLUNTEERS Proposed 7704V VOLUNTEER FIREFIGHTERS Not Proposed 7720E VOLUNTEER AMBULANCE/EMS Not Proposed 7720V POLICE RESERVES Not Proposed 8742E ELECTED/APPOINTED OFFICIALS Proposed 87421 INSIDE VOLUNTEERS Proposed TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL W154 3/24/98 PROPOSAL ACCEPTANCE FORM WORKERS' COMPENSATION Directions: This form and the Interlocal Agreement must be signed 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 P.O. Box 149194 Austin, Texas 78714-9194 Phone: (800) 537-6655 or (512) 491-2300 Fax: (512) 491-2404 --------------------------------------------------------------------------- Workers' Compensation Coverages Accepted X All Paid Employees Mandatory Elected/Appointed Officials Optional Volunteer Firefighters Optional Police Reserves Optional Volunteer Ambulance/EMS Attendants Optioral All Inside Volunteers Optional All Outside Volunteers Optional Deductible Options Deductible Amount X No Deductible Not Applicable Accident Deductible Aggregate Deductible Self -Insured Retention (Excess Only) Contribution: $1,420,438 Contribution as Accepted: $ Method of Payment: { } Quarterly { ) Annually (3% Discount) I, the undersigned, as an authorized representative of: 547 Lubbock --------------------------------------------------------- (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: TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL -------------------------- -------------------------------------------- THE SIGNED INTERLOCAL Contribution: Cont# AGREEMENT MUST ACCOMPANY Verified By, THIS FORM ( ) New ( ) Reawarding Adding Coverage 09/11/2000-16:10 W126 1122/98 Resolution No. 2000—RO334 September 27, 2000 Texas Municipal LeagUe Item No. 22 Intergovemmenfid Risk Pool 1821 Rutherford Lane, First Floor - AuWri, Texas 78754 * P-0. Box 149194 - Austin, Texas 78714-9194 WORKERS' COMIPENSATTON INTERLDCAL AGREEMENT This Contract and Interlocal Agreement is entered into by and between political subdivisions of this %Eale (hereinafter referred to as "Employer Pool Members") to form ajoint self-insurance Pool to be named the Texas Municipal League Workers' Compensation Joint Insurance Fund (hereinafter referred to as. the'Tund") for the purpose of providing the statutory be nefits prescribed by Article 8309h of the Texas Workers' Compensation Act for employees of political subdivis ions. VATNESSETH: The undersigned Employer Pool Mernber, in consideration Of the Zt[IoPticm of a Plan of self-insurance as authorized in Article 8309h, Vernon's Annotated Texas Statute -S. to provide workers' compensation benefits at a minimum cast and in further consideration of other political subdivisions executing like Interlocal Agreements does hereby agree to become a sel N nsured workers'compensation employerby becomi ng one of the mmbers; of the Fund Pool of self-insured EmployerFlool Membem agreed upon by and between the parties are as follows: - The conditions of membership 1, Definitions of term used in this Interlocal Agreement. ;I. Ho". Refers to the Board of Trustees of the Texas Municipal League* Workers'Compensatimi Joint Insurance Fund_ b. Premiti m and ConHbution- A re used interchangeably in some pan$ of the Interlocal Agret nient. "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 Agement to an insuiwice term not ordinarily a W 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 interpretalion such as, but not I imited to, the reference to "reinsurarim" C. Manuel Rates. The basic workers'compensation rate applicable to each classification of employees promulgated by the Slate Board of Insurance or the Board of Trustees, d. Experience Modifier. Refers to the factor applied to the manual rates that m4lects the political subdivision's loss experience, which is based on the State Board of lnsurawce, promulgated experience rating plan. e, Standard Rates. Rates that are detennined by applying the experience modifier of eiach individual Employer Pool Member to the manual rates, C Ftind Modirier. The percentage figure that is applied to the standard rates by the Fund to reflect the savings to the Employcr Pool Member based on past loss experience._ g. Fund Year. 12;4t a.m. October I through 1101 arra, this following October I h. Agrftment Perlod. The Continuous period since the Employer Pool Member first became a member of this Fund excl tiding, however, any period of ti M therein that the Employer Pool Member did not J)arlicipate as a member of the Fund, L Retention Plan. A plan promulgated by the 9(i and where the Employer Pool Member may choa%e to retain part of the risk. j. Reimbursable Retentkm. The amoolit that was chosen by this Employer Pool Member to be applicable to the fust moiiirn; paid by the Fu Fid to effort judgment or settlement of any claim or suit. The Employer Pool Member, upon Ratification of the action taken, shall promptly reimburse the Fund for al I or such pan of the retention amount as has been paid by the Fund, 2. The Board of Trustees, acting through its agenbi and Fund staff, is responsible for the administration of all Fund bushesss on behalf of the Employer Pool Members_ Revised JG Ma 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 ar classes of volunteers by ,pDcific endorsement to the Interlocal Agreement ciccted official s; volunteer firefighters; police reserves4 volunteer ambu lancelems attendants, all inside volunteers; all outside volanteers. Niwisions exist for reporting estimated annual payroll 4ubstiiute figures which will be used to develop an annual contribution for this additional statutory coverage. 4. The term of this Agreerrr-nt and the self -ins ur nce provided to the Employer Pool Member shall be continuous commencing 12-01 am. on the date designated in this Agreement until terminated as provided below. This Agreement maybe termi nit ed by either party giving to the other sixty (60) days prior w-ritica notice of intent to terminate except the Employer Pool Member may terminate this Agrxvment and its statutory coverages LhCreunder without giving the sixty (60) days notice if the reason is because. of a change by the Fund in the Employer Pool Member's contribution, provided that no termination by the Employer Pool Member shall be effecd ve prior to the date that written notice of termination is actually received in OW offices of the Texas Munkipal League Workers' Compensation Joint Insurance Fund and provided further that the Employer 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, It is the intention of all the parties that the Member's statutory coverages under this Agreement steal I remain if fall force and effect from Fund Year to Fund Year, subject to the tenris, conditions and limitrrtions 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 Employer Pool Member rimb, the earliest possible in formation concerning the contribution that will be required for any new Fund Year, the Fund w ill endeavor to provide this information as soon as possible he fom the beginning of each new Fund Year. The Fund will have the right to terminate this agreement only for non-compliance with Paragraphs 5. 7 and 10 Annually, each Employer Pool Member shall submit to the Fund on a Premium Worksheet form supplied by the Fund. its "s unated payroll for each classification of employee. In the event that the Employer Pool Member fai1r, or refuses to submit the Premium Workbeetwith 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 collect any and all contributions that are earned pro rata for the period preceding contract termination. To determine the annual contribution, the rate established by the Board of Trust= shall be used to arrive at a manual contribution. If the 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 aro earned experience modification for rhe Employer Pool Member, the manual rate, as established by the Board of Tn-Litces, in effect at the beginning of each Fund Year will be used as a guide to produce a manual, as well as a stand,ird contribution. The Fund modifier, if applicable, shall then be applied to the standard contribution to produce the annul contribution that the Employer Pool Member shall pay to the Fund. The Employer Pool Member agrucs- (a pay the annul contribution to the Fund in four (4) equal quarterly installments, in advance, commencing at the beginning of each Fund Year, with subsquent installments due at the first of each quarter thercafter. Employer Pool Membm- who elect a retention of $25,000ormore 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 Raternent. It is understood by the Employer Pool Member that there will be contribution adjustments based. upon the increased benefit levels nwdated by the Texas Workers' Compensation Act_ .fitthe end of each Fund Year, there shall be submitted by the Employer Pool Member actual payrolls as reflected 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 wi I I be. made at least onceevery three (3) years on Employer Pool Members with standard contributions less than $50.000 annually, In the event that the Employer Pool Member fails or refuses to make payments of contributions as herein provided, the Fond reserves the right to terminate swh Employer Pool Member by giving ten (10) days written notice and to collect any and al I contributions that are earned pro rata for the period preceding contract termination. 6. The Ftwd 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 Agmeirient. Rrviwd 1G% Notwithstanding the provision of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection outlined above arid/or amend such protection as it Finds available or it deems neccsiary to maintain the fiscal soundness of the Fund at the beginning of or during any Fund Year. The Fund will make available loss control services to the Employer Pool Members to assist them in following a plan of ]am control that may result in reduced losses. The Employer Pool Member agrees that it will cooperate in instituting any and all reasonable safety regulation', that may be recommended for the purpose of eliminating or minimizing hazards that would contribute to workers' compensation Iowws. In the event that the mcommendations seem unreasonable, the Employer Pool Member has a right to appeal to the Board of Trustees. The Board ", I hear the objections of the Employer Pool Member at its next regularly scheduled mecti ag and its decision will be final and binding on all parties. Any Employer Pool Member who doer, not agift to follow the decision of the Board shall be wiflidmwn ftom the Fund Immediately. 8. The Employer Pcx)l Member agrees that it wi 11 appoint a Wor"'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 re rues the Light to change the contact fhim time to time by giving written notice to the Fund - 9. The Fund, dmxgh its. staff aridContractom agrees to handle any and all claims afternotice of injury hasbeen given,toprupam all required Texas Workers' Compensation Commission fiGrrivs, and provide a defense. The Employer Pool Member Wreby 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 suc h defense. The Fund shal I 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. If a personal appearance by the employer or a co -employer or a co -employee is necussary, the expense of this appearance will be paid by the Employer Pool Merriber, With the advice and consent of the Fund, the Fund staff and Contractors wi U retain and supervise legal counsel on behalf of and at the expense of the Fund necessary for the prosecution of any litigation- All J" inions in individual rases shall be made by the Fund through the Fund staff and Contractors, which includes the decision to appeal or not to appeal a Texas Workerq'CompensationComrnis,,,ion's final ruling anddmi6cu, However, any Emplayoy Pool Membershall havetheright 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 schedule d meeting and its &6sion 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' COOIFXcnsaf ion Commission will be the responsibility of the Employer Pool Member. It is further understood that this Agreement does not cover discrimination suits under Article 830Y7c at its successor statute. There shall be supplied quarterly to each Employer Pool Member a computer pm i ntout i n vol ving a 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. N. The Fund agrees that all Fund transactions will be annually audited by a Rationally recognized certified public accounting firm, Z. The Fund is responsible for the filing of all necessary tax form.,s with the Internal Revenue Service. 13. As the administrators of the Fund, the Board shall primad ly and consistently keep foremost in its deliberations and decisions in operating the Fund that each of the participating Employer Pool Members is a "self-insurtd," 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 pro rata portion of the cost of all catastrophic loss protection reinsurance and aggregate stop loss reinsurance allocated to each Employer Pool Member as wel I 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 order to maintain as nearly as possible an equitable and, reasonable "self-insurance'administm- tion of the Fund as applied to each Employer Pool Member. Thaw, Employer Pool Members who have an adverse loss development may be limited by the Board in their participation to a program involving rcuospective contributions - Implementation of any rewaspective program mkv only be by connun between the Fund and the member. The Fund,,hill maintain case reserves and supplemental reserves computed in accordance with standard actuarial principles, taking irate) aCCOLIPit historical aW other data designed to measure claims development and claims incum!d but not yet reported, so the Fund will be able to nr"t these claims as they become due. The Fund may also establirh, to the extent that uncominitted resources are available, a Reserve for Return of Contriblitions to further ensure the Fiscal inteoty of ffic Fund in the event of adverse loss developmeriL Revised LOOM The Fund." I annually determine the amount of excess contributions wW otheT income, if any, that may be available fuT distribution to current Fund members. If excess "or aggregate reinsurance is not avai lable the Fund rewrves the right to retain a portion of die excess contributions for w.lf-funding such excess and/or aggregate protection_ 14. Payroll Classification schedule, Experience Modifier and Volunteer Su is attached as Addendum #1 and made a past of this contract for all purposes., TO HE COMPLETED BY MEMBER: EMPLOYER MEMBERS' FUND CONTACT (See Section 8)- Slemlyer Name — CitY Of LUbbWk Nance of Coritact Loeisa Hutcheson Title Risk Mamqernent 0oordinator Mailing Address P0 Box 2000, Lubbock, TX 79457 Street Address (if different from above) 1625 13th Street, Suite 104 City Lubbock, TX Zip 79401 . Phone (806) 775-2277 SIGNATURE OF AUTHORIZED MEMBER OF-ICIAL M Title Date SepLember 27, 2000 Member's Federal Tax LD- Number 7 5 - 6 0 0 0 5 9 D This Information 6 NLUNDATORY Ka%7thle Darnelle Civ.y e 011113m ae Haas, Contracts Manager/Attorney Effective Date of This Agreern= QQtQ12= 1. 2000 Member Name City of labbock Contract Number 0547 '4a=i -n Tbwn--,end,, Exeuutive Director 9/11/ao T10c Date kcvisad 10%