HomeMy WebLinkAboutRES 23-310RESOLUTION NO. 23 -3 10
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into an interlocal
agreement with the Texas Municipal League Intergovernmental Risk Pool for Liability Insurance
Coverages.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beamont this the 24th day of
October, 2023.
ceSS' �U.,l,m�
'f4j%W"_'��L
Roy West -
Texas Municipal League
Intergovernmental Rise Pool
1821 Rutherford Lane, First Floor • .Austin,'Fcxas 78754
LIABILITY/PROPERTY INTERLOCAL AGREEMENT
This Contract and Interlocal Agreement is entered into by and between political subdivisions of this state (hereinafter referred to as "Pool
Members") to form a joint self-insurance pool to be, named the Texas Municipal League faint Self -Insurance Fund (hereinafter referred to
as the "Fund") for the purpose of providing coverages against risks which are inherent in operating a political subdivision.
WITNESSI:aTH:
The undersigned Pool Member, in accordance with the Interlocal Cooperation Act, Tex. Gov't Code § 791.001, et seq., arrd the interpretation
thereof by the Attorney General of tine State of Texas (Opinion #MW-347, May 29,1981), and in consideration of other political subdivisions
executing like agreements, does hereby agree to become one of the Pool Members of this self -insured pool, The conditions of membership
agreed upon by and between the parties are m follows:
I, Definitions of terms used in this Interlocal Agreement.
a. Board. Refers to the Board of Trustees of the Texas Municipal League Joint Self -Insurance Fund,
b. fund Year, 12:01 a.m, October I through 12:01 a.m. the following October 1.
e. Manual Rates. The basic rates applicable to each liability classification promulgated by the Insurance Service Office or the Board
of Trustees.
d. TML Municipal Liability Self -Insurance flan. The liability coverage document that sets forth in exact detail the coverages provided
as part of the overall plan.
e. Adjustments. Refers to any offsets to manual premium that may result from the Pool Member's election of deductibles, loss ex-
perience or Fund Modifier which reflects the savings to the Pool Member by entering into this Agreement,
f. TMLMunicipal Property Self -Insurance Plan, Theproperty coveragodoaumcnL that 8etsforth in exact detail the coverages provided
as pall of the overall plan.
1;. Premium and Contribution, Used interchangeably in some parts of this Interlocal. Agreement, Any reference at arty 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
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 tho reference to "reinsurance,"
h. Reimbursable Deductible. 'rho amount that was chosen by this Pool Member to be applicable to the first monies paid by the Fund
to effect judgment or settlement of any claim or suit. The fool Member, upon notification of the action taken, shall promptly reltrr-
burse the Fund for till or such part of the deductible amount as has been paid by the Ruud. Further, however, the Fund's obligation
to pay damages shall be subject to the Limits of Liability stated in the Declarations of Coverage or Endorsements to this Interlocal
Agreement less the stated deductible amount,
1. Fund Modifier. A percentage figure that is applied to the manual rates by the Fund to reflect the savings to the Pool Member by
entering into the Interlocal Agreement,
j, Agreement Period. 'rho continuous period since the Pool Member first becarne a member of this Fund excluding, However, any
period or periods of time therein that the member did not participate as a member of the Pool.
k. Declarations of Coverage. The' pccific indication of the, coverages, limits, deductibles, contributions and special provisions elected
by each individual Pool Member. The Declarations of Coverages may be modified by Endorsement,
2, The Hoard of Trustees, acting through its agents and Fund staff, is responsible for flit) administration of all Fund business on behalf
of the Pool Members.
Revised 10/90
3. In consideration of the execution of this Agreement by and between the Pool Member and the Fund and of tine contributions of the
.Pool Member, the coverage elected by the fool Member is afforded according to The terms of ditTML Liability. Self -Insurance P]an
and the TML Property Self -Insurance Plan. The affirmative declaration of contributions and limits of liability in the Declarations of
Coverage and Endorsements determines the applicability of the Self Insurance flans.
Rach Pool Member agrees to adopt and accept the coverages, provisions, terms, conditions, exclusions and limitations as further pro-
vided for in theTML Self -Insurance Plans or as specifically modified by the Pool Mernber's Declarations of Coverage. This Interlocal
Agreement shall be. construed to incorporate the TML Liability Scif-Insurance Plan and/or the TML Property Self -Insurance Plan,
Declarations of Coverage, find Endorsements and addenda whether or not physically attached hereto,
4, It is understood that by participating in this risk sharing mechanism to cover liability exposures, the Pool Member does not intend to
waive any of the immunities that its officers or its employees now possess. The Pool Member recognizes the Texas Tort Claims Act
and its limitations to certain governmental functions as well as its monetary limitations and that by executing this Agreement does not
agree to expand those limitations.
'Tire fool Member, upon the, execution of this Agreement, shall supply the Fund with a current copy of its charter provisions or ordi-
nance that sets out its requirement as to the number of days in which a third party liability claim must be made against it.
If the Pool Member does not have such an ordinance provision that establishes a set number of days or if it has an ordinance provision
which provides for less than sixty (fit)) days notice and for good cause shown up to six (6) months notice the Pool Member agrees to
adopt an ordinance providing for such notice reasonably describing the damage or injury claimed and the lima, manner and place of
the incident from which it arose. The notice requirement shall not be changed by The fool Member without .first giving the Fund thirty
(30) days written notice. Violation of this provision may, at The Fund's discretion, void this Interlocal Agreement,
5. The term of this Agreement and the self insurance provided to the fool Member shall be continuous commencing 12,01 a.m, on the
date designated in this Agreement until terminated as provided below, Although the self-insurance provided for in this Agreement
shall be continuous until terminated, the limit of liability of the Fund under the coverages that the Pool Member elects shall be limited
during any Fund Year to the amount stated in fire Declarations of Coverage for that Fund Year.
This Agreement may he terminated by either party giving to the other sixty (60) days prior written notice of intent to terminate except
the Pool Membermay terminate this Agreement and its coverages thereunder without giving the sixty (60) days notice if the reason
is because of a change by the Fund in the fool Member's contribution, coverage, or- other change in the limits of liability, terms,
conditions, exclusions and limitations provided for in the Texas Municipal League Self -Insurance Plans provided that no termination
by the Member shall be effective prior to the date that written notice of termination is actually received in the offices of the Texas
Municipal League Joint Self-insurance Fund and provided that the fool Member agrees to and shall pay the applicable premium and
contribution far those coverages it is terminating until the date the notice of termination is actually recelved by the Fund.
The Fund shall provide the Pool Member with Declarations of Coverage and any Endorsements that determine the applicability of
the Texas Municipal League Self Insurance Plans annually by December 1, Such Declarations of Coverage shall include, but not
be limited to, the coverage period which shall be the applicable Fund Year, limits, deductibles, contributions, special provisions and
limitations. Changes madc during the Fund Year, whether requested by the Pool Member or required by the Fund, will be handled
by Endorsement.
It is the intention of the parties that the Pool Mernber's coverages under this Agreement shall remain in full force and effect from Fund
Year to Fund Year, subject to the limits of liability that the Fund can provide each Fund Year and The terms, conditions, limitations
that the Fund may require. to protect its solvency and to comply with reinsurance requirements, until notice of totmination is given
as herein provided. Realizitrg that the pool Member needs the earliest possible information concerning the Fund coverages, limits,
and exclusions and the Pool Member's contribution that will be required for any new Fund Year, the Fund will endeavor to provide
this inforrrsadorr as soon its possible before t.ire beginning of each Fund Year, The parties recognize, however, that conditions in [tic
reinsurance industry are such that the fund may not be able to provide this information to the Pool Member before the beginning
of a Fund Year for various reasons including the failure of tire, Pool Member to timely submit the appropriate exposure summary or•
delays on the part of reinsurers in getting information to (tic Fund, and so, to protect the Pool Member from gaps in its coverage and
to protect the solvency of the Fund, the parties agree as follows;
If, for any reason other than the Pool Member's failure to provide the information rearrested in the exposure sr mniary, the Fund
has not been able to provide the ,Fool Member with information concerning available coverages for a neiv Fund Year or advise th.e
Pool lvlember of the amount of its contribution for the new Pond Year by the beginning of the fi'und Year, the Fund shall neverthe-
less continue the fool Member's coverages at the saute limits of liability {if still available and V not, then at the highest limit of
liability available for the neiv Fund fear) so that the fool Member shall at all times rerrrain covered as herein provided and the
Pool Member's lidtial contributions for the new Fund Year shall be determined by a "tentative contribution" as determbied by
Revised 10/90
the Poard with the Pool Members actual annual contribution to be credited by the arnviort paid in accordance with the tentative
coriti-ibittiorr arr.d adjusted during the Farad Year. In tire event the Pool Member sloes not wish to have its coverages extended or
received at the end of airy Fund fear, the burden shall be upon the Pool Member to give written notice to the Fund as provided
hereinabove and lire Pool Member- agrees to pay as hereinabove staled all contributions or• pro raja contributions until the date,
such written notice is received in lite offices of the Fund or the date of ierminalion of this Agreement, whichever- is later.
b, Commensurate with the execution of this Agreement and annually thereafter, the Pool Member shall complete the appropriate exposure
summary and deliver it or cause it to be delivered to the Fund, or, if so instructed, to a designated contractor, no later than September 1
of each year and new annual contributions shall be calculated using manual rates times exposure, less any adjustments. Intentional or
reckless misstatements on the exposure summary shall be grounds for cancellation. In the event that the Pool Member fails or refuses
to subunit the appropriate exposure suminar'y, the Fund reserves the right to terminate such Pool 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.
The Pool Member agrees to pay the annual contribution to the Fund in four (4) equal quarterly installments, in advance, commencing
at the beginning of this Agreement with subsequent installments due the first quarter thereafter, Fool Members who elect adeductible
in excess of $25,000 shall comply with the monthly payment schedule outlined to them in advance of assuming such a large deductible.
In the event this Agreement is terminated as herein provided, the Fund shall promptly repay to the Pool Member any such unearned
annual contribution prorated as of the date of termination and the Pool Member agrees during the term of this Agreement to promptly
pay all reimbursable deductibles upon reccipt of statement,
At tine end of each and every Fund Year, the Fund may require the Pool Member to submit the actual data requested on the exposure
summary as reflected by the books and records of the fool Member. The Fund reserves tile, right to audit the records of any Pool
Member, and adjust contributions accordingly,
In the event that the Pool Member fails or refuses to make the payments, including accrued interest, as herein provided, the Fund
reserves the right to terminate such Pool Member by giving them ten (10) days written notice and to collect any and all amounts that
are earned pro rata for the period preceding contract termination, If the amounts owed, including reimbursable deductibles, have to
be collected by suit, the fool Memberagrees to pay attorneys' fees and costs incurred in such suit.
7. The Sound shall maintain adequate protection front catastrophic losses to protect its financial integrity. Aggregate protection shall also
be maintained. 'fire Member'& contributions shall be limited to that amount as calculated under this Agreement,
8. Notwithstanding the provisions of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection
outlined above and/or amend coverages as it finds available or deems necessary to maintain the fiscal soundness of the fund at the
beginning of or during any Fund Year,
Tile fund will make available loss control services to the Pool Members to assist them in following a plan of loss control that may
result in reduced losses, The Pool Member agrees that it will cooperate in instituting any and all reasonable loss control recommen-
dations. In the event that the recommendations submitted scent unreasonable, tine Pool Member has a right to appeal to the Board of
Trustees. The Board shall hear the objections of the Pool Member at its next regularly scheduled meeting and its decisions will be
final and binding on all parties. Any Pool Member who does not agree to follow the decision of the Board shall be wlthdrawn from
the Fund immediately.
10, The fool Member agrees that it will appoint a contact of department head rack, and the Fund shall riot be required to contact any other
individual except this one person. Any notice to or any agreements with the contact shall be binding upon the Pool Member. The
Pool Member reserves the right to change the contact from time to time by giving written notice to the Fund.
11. Tire Fund agrees to handle all liability and property claims, and provide a defense for any and all liability claims covered under this
Agreement after prompt notice has been given. The Pool Member hereby appoints the Fund staff and Contractors as its agents to act
in all matters pertaining to processing and handling of claims covered under this Agreement and shall cooperate fully in supplying
any information needed or helpful in settlement or defense of such claims. As respects liability claims, the Fund staff and Contractors
shall carry on all negotiations with the claimant and his attorney and negotiate within authority previously granted by true Fund. If a
personal appearance by the Pool Member or an employee is necessary, the expense of this appearance will not be the responsibility of
the Fund. With the advice turd consent of the Fund, rite Fund staff and the Contractors will retain and supervise legal counsel for the
prosecution and defense of any litigation. All decisions oil individual cases shall be made by the Fund through the Fund staff and the
Contractors, which includes the decision to appeal or not to appeal, However, any Pool .Member shall have the right in any case to
consult with the Fund on arty decision made by the Fund staff or Contractors. The Board shall hear Clio objections of the Pool Member
at its next regularly scheduled meeting and its decision will be final and binding oil all parties. Any suit brought or defended by the
Fund shall be brought or defended only in the name of tine fool Member and/or its officers or employees. 'There shall be supplied
Revised 10190
periodically to each Pool Mernber a computer printout involving a statement of claims. As respects the TML Municipal Liability
Self -Insurance Plan, the Fund shall have priority ill r:n£orcing its subrogation claims against the claims of fool Member except as to
claims of the'1'exas Municipal League' Workers' Compensation joint Insurance fund, which shall take preference,
12, The Pool Member acknowledges that h has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any
amendments thereto,
13. The Fund agrees that all fund transactions will be annually audited by a nationally recognized certified public accounting firm.
14. If legally required, the Fund shall cause to be filed the necessary tax forms with the Internal Revenue Service.
15, As the adininistrator's of the fund, the Board shall primarily and consistently keep foremost in their deliberations and decisions in
operating the Fund that each of the participating Pool Members is a "self -insured.." At least annually, the Board shall carefully revicw,
study and consider the actual claims or loss experience (including reserves for fixture claims payments) of each of the pool Members,
the pro rata savings to the fund resulting from overall loss experience attributed to each Pool Member, and the pro rata portion of the
cost of all catastrophic loss protection and aggregate stop loss protection allocated to each Pool Member as well as the pro rata al-
location, as determined by the Board of the other and necessary administrative expenses of the fool, in order to reasonably determine
Ole actual pro rata cost, expense and loss experience of each fool Member in order to maintain as nearly as possible an equitable and
reasonable self -Insurance administration of the Fund as applied to each Pool Member.
The Fund shall maintain case reserves and supplemental reserves computed in accordance with standard actuarial principles, tak-
ing into account historical and other data, designed to measure claims development and claims incurred but not yet reported, so that
funds will be available to meet these claims as they become due, The Fund shall also establish and maintain a reserve for Return of
Contributions to further ensure the fiscal integrity of the Fund in the event of a potential adverse loss development, Only current Pool
Members may t'eceive return of contribution,
16, The Pool Member may elect to participate. in the Fund only to the extant of obtaining administrative services, and, if desired and avail-
able, reinsurance. In that event, the Pool'Mcmber shall not make contributions as provided in Paragraph 5 nor receive the coverages
provided for in the `IML Self -Insurance Plan, nor shall the TMI., Joint Self-lnsurarrcc Fund be liable for the payment of claims against
the Pool Member, The Fund shall only handle and service claims for the fool Member and pay same out of funds to be deposited
by the Pool Member in a separate account administered by the fund for the payment of claims and judgments only against that: Pool
Member as hereinafter provided.
Notwithstanding the provisions of any other section of this Interlocal Agreement, a Pool Mcrnber who elects to receive Administrative
Services Only as specified in the attached Dcclarations (hereinafter referred to as tie "ASO Pool Member") shall be subject to the
following requirements and conditions;
A. Although the ASO fool Member will receive coverage documents setting forth the. coverages, provisions, terms, conditions,
exclusions and limitations provided for in the TML Self -Insurance Plans, these documents are not intended to and shall not cre-
ate an insured -insurer' relationship between the Fund or any of its other Pool Members and the ASO Pool Member, but rather are
provided solely for the purposes of., (1) defining the scope of claims the Fund will handle on behalf of the ASO Pool Member, and
(2) defining the nature and scope of claims and conditions applicable thereto that will be covered by reinsurance, if available and
obtained by the ASO fool Member, beyond the ASO Pool Member's self -insured retention. ne. hind shall not itself be liable
for the payment of claims or judgments against the electing ASO Pool Mernbor, nor to provide the electing ASO Pool Member
with a defense of any such claims or suits at the expense of the Fund. The Fund will only make payments on behalf of the ASO
Pool Member out of the ASO Pool Member's claims account. The ASO Pool Member shall comply with all requirements of
any reinsurer including but not limited to furnishing timely claims reports, proposed settlements that would impact the r'einsurar
as well as progress reports involving litigation. The ASO Pool Member f€irther agrees to hold the Fund harmless from any and
all claims (including attorney fees) that may be asserted against tixe Fund for the non-payment of any claims due to the failure of
the ASO fool Member to maintain adequate reserves for tile payment of claims as well as claims based upon breach of a duty of
good faith and fair dealing because of the ASO Pool Member's or their agents' conduct toward the claimant,
13, In connection with olairns within the scope of the coverage documents, the Fund shall provide tine following services or on behalf
of the ASO Pool Member as confir tned specifically in the attached Declarations•.
1. Overall contract and clairns administration',
2, Loss control services to the ASO Pool Member to assist it in developing a plan of loss control to attempt to control or reduce f
file frequency and severity of claims against it; e
Revised 10190
3. Claims servicing including investigation and recommendation by tdieFund's contractors; periodic meetings with the ASO fool
Member's claims official or claims committee attended by representatives of Contractors;
4. Claims administration including coordination and recommendation of defense; reserverecommendations; claims handling and
defense recommendations by the Fund claims manager and assistants, as well as review of all files to monitor the ASO Pool
Member's self-insurance exposure; participation by Fund staff member(s) in the periodic meetings to review claims with the
ASO Pool Member's claims official or claims committee.
5, Storage and retention of claims records; periodic MIS reports detailing claims and loss information and history.
The Fund shall charge the ASO Pool Member its usual and customary charges for the aforesaid services based on actual services provided.
Allocated claim expenses, including defense attorney's fees, discovery fees, expert and witness fees and court costs shall be paid by the
Fund on behalf of the ASO Pool Member out of the ASO pool Member's claims account as part of the administrative services provided by
the Pool, but shall never be an expense or liability of the Fund but rather is solely that of the ASO Pool Member.
The Fund shall handle all liability and automobile physical damage claims and oversee, coordinate and make recommendations in connection
with the defense of any and all liability lawsuits covered under this Agreement after prompt notice has been given. The ASO pool Member
hereby appoints Fund staff and Contractors as its agents to act in all matters pertaining to processing and handling of claims covered under
this Agreement and shall cooperate fully in supplying any information needed or helpful in settlement ordefense of such claims. As respects
liability claims, the Fund staff and Contractors shall catty on all negotiations with the claimant or his attorney, but no settlement sliall be
made without express prior approval of the ASO Pool Member, All claims will be discussed with the ASO Pool Member's claims official
or claims committee on a periodic basis. As information on each claim develops, the Fund staff and Contractors shall make recommenda-
tions concerning claim reserves, settlement and whether or not a case should be tried or settled or a judgment should be appealed, but all
decisions on individual cases shall be made by the ASO Pool Member, In the event of litigation, the Fund staff and Contractors will retain
on behalf of the ASO Pool Member legal counsel approved by the ASO Pool Member to represent it and will supervise the defense of the
litigation, including any appeals.
The ASO Pool Member shall establish in its name a "claims account" at a bank designated by the Fund, out of which the Fund, through
its agents, shall pay on behalf of the ASO Pool Member qualified claims or losses and allocated claims expense including court costs, fees
and expenses of attorneys, independent investigators, experts and witnesses and all other costs, charges or expense properly chargeable to
a qualified claim or loss. Funds shall be provided at the inception of the ASO Member's self-insurance program and promptly from time
to time under the following formula based on estimates furnished by the Fund of the anticipated or actual level and volume of qualified
claims or lasses and allocated! expenses; The ASO fool Member shall deposit into the account initially an amount equal to one-fourth (%a)
of the estimated volume of qualified claims or losses and allocated claim expenses during the first twelve (12) months of its self insur-
ance program and each month thereafter, or sooner if necessary, shall deposit into the account an arnount sufficient to restore, maintain
or increase the account balance to an amount equal to onc-fourth (%a) of the estimated volume of qualified claims or losses and allocated
claim expenses during the next twelve (12) months.
The Fund shall account to the ASO Pool Member monthly for all expenditures from the claims account. If at airy time tlic claims account
balance drops to below fifty percent (50%) of the balance currently tailed for under the above formula, the ASO Pool Member shall
promptly deposit additional funds to restore the full balance, During any period of time that the claims account balance is fifty percent
(50%) or less of that currently called from tinder the formula, only allocated claim expenses shall be, paid out and the ASO Pool Member
shall directly pay qualified claims or losses out of other Rinds until it deposits into the claims account tine amount necessary to restore the
account to its fall balance. In the event payment of a qualified claim or loss would reduce the claims account balance to less than fifty
percent (50%) of that called for under the formula, the ASO Pool Member shall be promptly notified and shall either pay the qualified
claim or loss directly out of other funds or deposit into the claims account sufficient funds for• its payment.
It is expressly understood that the Fund shall not be required to advance its own funds or those of the ,loint Self-insurance Fund to pay
claims or losses or allocated expenses hereunder, or continue to perform any services hereunder if theASO Pool Member fails to provide
necessary and adequate funds as herein set forth.
It shall be the sole responsibility of the ASO Pool Member to establish and maintain adequate reserves In addition to the limited funds
in the claims account for payment of all claims, including catastrophic claims, The Fund will provide reserve recommendations and
estimates of liability exposures, but both parties realize that judges and juries have wide discretion in assessing damage awards and the
award in any particular case may be greatly in excess of or greatly less than a recommended reserve.
Reviled 10/90
Either party to this agreement may at any time terminate it upon sixty (60) days written notice for any reason as to either all pending and
future claims, or alternatively, only as to future claims, In the event cancellation is with respect to both bending and future claims, the
Fund will no longer be obligated to perform the services outlined in this Agreement and shall promptly and in an orderly mariner forward
to the ASO Pool Member or its designee all pending claim Files. In the event termination is only as to future claims, this Agreement
shall continua in full force and effect with respect to all pending claims and claims occr»°ring but not reported prior to cancellation until
concluded. In either event, the ASO Pool Member shall be. entitled, if it so requests and at its own expense, to have the closed claim filed
retrieved from storage and delivered to it. In the event the ASO Pool Member does not request closed files in the notice of cancellation,
however, they will be retained or destroyed at the Fund's option and the ASO Pool Member shall have no recourse against the Fund for
failure to retain them,
TO BE COMPLL+'TED BY MEMBER:
EMPLOYER MEMBERS' FUND CONTACT (Set; Section 10),
Mernber blame
Name of Contact Title
Mailing Address _
Street Address (if different from above)
City_ zip Phone
SIGNATURE OF AUTHORIZED MEMBER OFFICIAL
Title Date
Member's Federal Tax I.D. Number
Tltls Inforrnatiou is MANDATORY —
TO BE COMPLETED BY FUND: (OFFICE USE ONLY)
Revised I0i40
lexas M r Pal League
Intergovernmental Risk Pool
18,21 �Rut�herfbrd �Lane, First Floor * Austin, Texas 78754
LIABILITY t PERTY" O AL AGREEMENT
This Contract arid Interlocal Agreement is entered into by arid between political subdivisions of this state (hereinafteri,-eferred, to as, "Pool
Membeis") to form a joint self-insurance pool to be veined the, Texas Municipal League, Joint Self -Insurance Fund (hereinafter referred to
as the "Fund") for the purpose, of providing coverages against risks, which are inherentin operating, a, political subdivision.
2MRINS10113,
The undersigned Pool Meinber, in accordance w , ith theInterlocal Cooperation Act,'Tex. Govt Code § 791 -001 , of seq., and the interpretation
thereof by the Attorney General of'the State of Texas (Opinion #MW-34,7,, May 29,1981), and in consideratlon of other political subdivisions
executing like agreements, to hereby agree to beconie one of the Pool Mernbers of this self -insured pool.The conditions of membership
agreed u'pon by and between the parties are as follows:
I Definitions of terms used in this Interlocal. Agreement.
,a. Board. Refers to the Board of Trustees of the'rexas MunicipalLeague Joint, Self -Insurance Fund.
b. Fund Year. 12:01, a.m. October I through 12:01 a.m. the following October. 1.
c. Manual Rates. The basic rates applicable to each liabilitly classification, promulgated by the, Insurance Service Office or the Board
of Trustees.
d. TML Municipal Liability Self -Insurance Plan. The liability coverage document that sets forth in exact detail the coverages provided
as pail of the, overall 'Plan.,
e. Adjustments. Refers, to any offsets to manual premium that may result from the Pool ember's election of deductibles, loss ex-
perience or Fund Modifier whic , 11 refl,ec,ts the savings to the Pool Mernber by entering into this Agreement.
r® TMI.Municipal Property Self -Insurance Plan. Theproperty coverage document that sets forth, in exact detail thecoverr ges provided
as part of the overall plan.
g i . Premium and Contribution. Used interchangeably in. some parts of this IriterlocalAgreement. Any reference at any time in this
Interlocal Agreement to air insurance term not ordinarily a part of self-insurance shall be deemed for conveiiience only and is riot
coristmed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretat"I oil
such as but not. hinited to the reference to "reinsurance."
h- Reim,bursable Deductible. The amount that was chosen by this Pool, Member to be app'licable to the first morale s paid by the Fund
to effect "Judgment or settlement of any claim or suit. 'The fool Member, upon notification of the action taken, shall prom reitn-
,
burse the Fund for, all or such. pail of the, deductible amount as, has, been paid by the Fund., Further, howeer, the Fund's obligation
to,.Pay damages shall be subject to the Limits of'Liabilitstated in the Declarations of Coverage, or Endorsements to this Interlocal
Agreement less the stated deductible amount.,
i. Fund Modifier, A percentage figure that is applied to, the manual rates by the Fund to reflect the savings to the, Pool Member by
entering into the Interlocal Agreement,
j. Agreement Period. The continuous period since the Pool Member first became a member of this, Fund excluding, however, ally
period, or periods of time therein that the member did, not, palllicipate as, a member of the Pool.
k. Declarations of Coverage,. The specific indication of the coverages,, firnits, deductibles,, contributions and special provisions elected
by each individual Pool Member. The Declarations of Coverages may be, modified by Endorsement.
2. The Board of Trustees, acting through its, agents and Fund, staff, is responsible for the administration of all Fundbusiness on behalf
of the Tool, Members.
3. In consideration of the execution of this Agreenient by and between the Pool Member and the, Fund and of the contributions ofthe
Pool Member, the coverage elected by the Pool Membe-r is afforded according to the ternlis of the TML.Liabilit y Self -Insurance Plan
and the 17 ML Property Self- ITISurn ce Plan. The affiri-native declaration of contributions and lin-its of liability in the Declarations of
Coverage andEndorsenients cleteiTnitiles the applicability of the Self-InStirance Plans. I
Each Pool Member agrees, to adopt, and accept the coverages, provisionsi, terms, conditions, exclusions, and limitations asi furtherpro-
videdthe TML Self -Insurance Plans or as specifically tiiodifiedby the, Polo! Meryliber's Declarations of Coverage. This Interjoical
A I irate the 7ML Liabi fit Plan and/or the "I'MI, Property Sielf-Insurance Plan,
glii-eement shall be, construed to incorpo
I I y Self
Declarations of Coverage, and Endorsements and, addenda whether or �n,ot. physically attachied hereto.
4. It is understood thiat by participating in this risk, sharing mechanism to cover liability eXPOSUres, the Pool Member does not intend to
i it #
waive any of the imi-nunities, that its, officers or its employees now possess., The Pool Member recognizes the 'Texas Tort Clainis Act,
and its litinitationsto certain govemmilental functior-I as well as ifts monetary limitations, and thait by executing this Agreeinent dole-s not
agree to expand those limitations.
Tile Pool Member, upon the execution of this Agreement, shall sup, ly the Fund with a current co y of its, charter . 4,
p p provisions or ordi-
nance that sets, out its requirement as to thle number of days in which a third party liability claim, must be, made against it.
5. le term of this Agreeinent and the self-insurance provided to the Pool Member shall be continuous commencing 12:01
date designated in this Agreement until tenninated, as Provided below. Although the self-insurance provided for in tbisAgreernent
shall be co'ntinuous until tenninated, the linift of liability of theFund under the coverages that the Plool Member elects, sliall. be limited
during, any Fund Year t�io the amount stated in the Declarations of Coverage for that Fund Year.
This Agreement nlay be, terilliflated by either pwill giving to the other sixty, (160) days prior written notice of intent to tenninate except
the Pool Member ma terminate this, Agreement and its coverages, thereunder without giving the s,jxtyI (60) days noItice if the reason,
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is because of a change, by the Fund in, the Pool Mernber's contribution', covei-age, or other ang,e in the limits of liability, terms,
conditions,, exclusions and linlitations provided for in the Texas municipal League Self -Insurance Plans provided that no tenniination
by the Member shall be effective prior to the date that written, notice of terinination 'is, actually received irl the offices of the Texas
Munlcipal League Joint Self -Insurance Fund arid provided that the Pool Mleinber agrees to and shall play the applicable prerniurn and
contribution for those coverages it is terminating until the date the notice of terminati,onis actually received, by the Fund.
The and shall provide the Pool, Member with Declarations of Coverage and any Endorsements that deterniine the applicability of
the Texas Municipal League Self -Insurance Plans annually by December L Such Declarations of Coverage s1lall include,, but not
be limited to,'the coverage perjold which shall be the applicable Fund Year,, limits, deductibles, contributions, special provisions and
limitations. Changes made during the Fund Year, whetbei,- requested by the Pool Member or required red by the, Fund, will be, handled
by Endorsement.
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the Board it/ the Pool Members actual annualcontribution to, be credited by the aniount paid in accordance with the teat
contribution anjusled during the Fund Year. Ili the event Ilse Pool Alleniber does not wish to liave its coverages extended or
renewed art ihe end of any Fund.Year; the burdett shall be upon the Pool Member to give 'vvrittennonce to the F'und as provided
hereinabove, and the Pool Aleniber agrees to pay as hereinabove stated all contributions oi- pro rat a contribations until die date
such written notice is received Un the offices of, the Fund or the date of ferinination ofthis Agreement, whicliever is later.
6. Cornt'nensurate with theexecution of this Agreement and annually thereafter, the Pool Member shall complete the appropriate exposure
sunimmy and deliver, it orcause it to be delivered to the Fund, or, if so instructed, to a designated contractor, no later than September I
of each year and new arinual contribut ions shall be calculated using manual rates times exposure, less any adjustments. Intenit ional or
reckless misstatements on the exposure surnmary shall be grounds for cancellation, In the event that the Pool, Member fails or reffises
to submit the appropriate exposure ssurninary, the Fund reserves the right to tenn,inate such of Member by giving thirty (30), days
written notice and to collect any and al] contributions that are earned pro rata for the period preceding contract termitiation.
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At the end of each and every Fund Year, the Fund may require the Pool Member to submit the actual dat�a requested on the exposure
summaq as reflected by the books and records of the Pool Member. The Fund reserves the right to audit the records of' any Pool
Member and adjust contributions accordingly.
In the, event'. that the Pool Member fails or refuses to make the paynilents, including accrued Merest,, as herein provided, the Fund
reserves the rightto teni,iire ate such Pool Member by, giving them ten (10), days written notice and to collect any and all amounts that
are earned pro rata for the eriod preceding contract termination. If the amounts owed, including reimbursable deductibles, have to
p 11,
be collectedby suit, the Pool Member agrees to pay attorneys' fees, and costs incurred in such suit.
7. The Fund shall maintain adequate protection fi-om catastrophic losses to protect its financial integrity. Aggregate protection shall also
be maintained. 'The Member's contributions shall be limited to that, amount as calculated, under this Agreement.
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pert , odically to, each Pool, Member a computer printout itivolviilg a statement of claims. As respects the TML Municipal 1,iability
Self -Insurance Plan,, the Fund shall have priority in enforcing its subrogation claims against the claims of Pool Meinber exce,pt as to
claims of the Texas Mun,icipal League Workers' Compensation Joint Insurance, Fund,, which shall, take preference,
The Pool Menib acknowledges that it has received a copy of the Bylaws ofthe Fund and agrees to abide b,y the Bylaws and any
amendments thereto.,
13. The Fund, agrees, that all. Fund transactions will be, annually audited by a natiotially recognized certified public accounting firm.
14. If legally required, the Fund shall cause to be filed, the necessary tax forms, with the Internal 1 ue Service.
The Fund shall maintain case reserves and supplemental reserves computed in accordance with standard actuarial principles,, tak-
ing into account historical. and other data, designed to measure claims development and claims incurred but not yet repoiled, so, that
funds will be available to meet these claims as they become due., The Fund, shall also establish and maintain a reserve forReterr of
Contributions to further ensure the fiscal. integrity of the and iti the event of a Potential adverse to development,., Only current Pool
Members, may receive return of contribution.
16. The Pool Member may elect to participate in the Fund only to the extent of obtaining administrative services, and, ifdes ired arld avail-
able, reinsurance. In that event, the Pool"Member shall not make contributions as provided in Paragraph 5 nor receive the cloverages
provided for in the TML Self -Insurance. Plan, nor shall, the, TML Joint Self -Insurance Fund be liable for the payment of claims against
the Pool Member'. The Fund shall only hanAle and service claims for the Pool Member and pay same out of funds to be deposited
'by the Pool Member in a separate account administered by the Fund for the, payment of claims and judgment's Ionly against that Pool
Member as hereinafter provided.
Notwithstanding the provisions ofarly other section of this InterlocalAgreementl a Pool Member who ellects, to receive Administrative
Services Only as specified in the attached Declarations (hereinafter referivd, to as the "ASO Pool Member") shall be subject to tile
following requirements and conditions:
Z' -
connection with claims within, the scope of file coverage, documents, the Fund shall provide the following services, or on beha,lf
of the ASO Pool, Member as confiniied specifically in the attached Declarations:
L Overall contract and claims administration, e
2. Loss controll sell -vices to the ASO Pool Member to, assist it in developing a plan of loss control, to attempt, to, control or reduce
the frequency and severity of claims against it;
Revised 10/90
EMPLOYER MEMBERS"FUN D, CONTACT (See Sectlon 10):
Member Name owynadt;
'Ila Na,me of Contact mill- 51 Title 4p6iiiiiier
Mailing Addri ss
A
Street Address (if different ftom above) 3K
eft
zip,-77f,91 Phone
1111111"1 11 i 1111 iiiir 11111111 ; i 11 i i i � 111111 ii 11 i ;
'00V 6 1
C.00
Rig X
Title Date I OF
MemberFederal Tax J.D. Number
This Information is MANDATORY
ii 111% 1 i I lii
I 1� V111111
di
Contract Number
SIGNATURE OF AIMORIZED FUND, OFFICIAL
Title Date
Either party to this agreement may at any tires, terminate it upon sixty, (60), days written notice for any reason as to either all pending and
future claims, or alternatively, only as to titer e claims. Iri the event cancellation is with respect, to both, pending and future clainis, the
Fund willno longer be obligated to perfo.nn the services outlined, in this Agreement and shall Promptly and in, an orderly mannerforward
to the ASO Pool Member or itdesignee all pending, claiiin files. In the event termination is only as to future claims, this Agreement
shall continue infull force and effect witli respect to all Pending claimts and claims occurring but not reported prior to cancellation until
'0 I nd. at its own expense, to'have the closed claini, filed
concluded. In either event, the, ASO Pool, Member shall be entitle d, f it so, requests a I
retrieved froin storage and delivered to it. In the, event the AS O Pool Member does not, request closed files in the notice ofcancellation,
however, they will be retained or destroyed at the un s option and the ASO P(R)l Member shall, hiave no recourse against the Fund for
failure tretain thern.
EMPLOYE41Z MEMBERTFUND CONTACT (See Section 10):
Mernber Name
Maii I I jig Add ress,
wMam-0 Mfjm Mumma=
WE
SIGNATURE OF AUFHORIZED MEMBER OFFICIAL
Member's Federal Tax I.D., Number
This Inforniation is MANDATORY
Title
Date
rw ms-
Revised �1.0/90