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HomeMy WebLinkAbout13779 ORD - 06/08/1977jkh:6 -8 -77 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE TML WORKMEN'S COMPENSATION FUND TO PROVIDE WORKMEN'S COMPENSATION INSURANCE FOR THE PERIOD OF JULY 1, 1977, THROUGH JULY 1, 1980, IN SUBSTANTIALLY THE FORM OF CONTRACT ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to execute a contract with the TML Workmen's Compensation Fund to provide workmen's compensation insurance for the period of July 1, 1977 through July 1, 1980, all as more fully set forth in the contract, a substantial copy of which is attached hereto, marked Exhibit "A ", and made a part hereof. SECTION 2. The necessity to immediately enter into the afore- said contract in order to effect the terms thereof creates a public emer- gency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared that such emergency and necessity exist, and having requested the suspension of the Charter rule and that this ordinance be passed finally on the date of its introductionand take effect and be in full force and effect flom and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the day of June, 1977. ATTEST: ,yZ�_SfeeZcre tary iZZ MAY THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: 8th DAY OF JUNE, 1977: J. BRUCE AYCOCK, CIT ATTORNEY MICROFILMED By Assistant City torney 9 JUL 0 71980 13'779 1020 Southwest Tower, Austin, Texas 78701 (A Service of the Texas Municipal League) INTERLOCAL AGREEMENT This Contract and Interlocal Agreement entered Into by and between the Texas Municipal League Workmen's Compensation Joint Insurance Fund (hereinafter referred to as "Fund ") and the undersigned political subdivislon of the State of Texas (hereinafter referred to as "Employer Member ") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workmen's Compensation Act for employees of political subdivisions. WITNESSETH: The undersigned Employer Member In consideration of the adoption of a plan of self - Insurance as authorized In Article 8309h, Vernon's Annotated Texas Statutes, to provide Workmen's Compensation benefits at a minimum cost and In further consideration of other political subdivisions executing Identical Interiocal agreements does hereby agree to become a self- Insured workmen's compensation employer by becoming one of the members of the Fund Pool of self - Insured Employer Members. The conditions of membership agreed upon by and between the parties are as follows: 1. The term of this Contract shall be for a term commencing 12:01 a.mafl_ 5— and terminating 12:01 am. July 1, 1980, unless the same is sooner terminated by sixty (60) days written notice of Intent to terminate by either party unless otherwise specified under the terms and agreements of this Contract or by the Bylaws of the Fund. The Fund will have the right to terminate this agreement only for non - compliance with paragraphs 8, 14 and 16. 2. An annual estimated payroll by payroll classification will be furnished by the Employer Member to the Fund. It Is understood that this Is an estimate that shall be adjustable at the end of each Fund year to reflect the actual payroll on the books of the Employer Member. 3. The Employer Member agrees to pay the premiums payable for the payroll classifications based upon a standard annual premium determined by first computing the rates, using as a guide the classifications of payroll as established by the State Board of Insurance. This premium shall be modified by the experience modification of the political subdivision. In the absence of an earned experience modification for the Employer Member, the manual rate as established by the State Board of Insurance In effect at the beginning of each fund year will be used as a guide to produce a manual as well as a standard premium. The Fund will endeavor to develop a specific experience rating plan for the Fund and some modification of the classification systems where appropriate and feasible to more truly reflect safety and experience savings of Employer Members. The premium payable shall be 75% of the standard premium thus obtained. Once the standard annual premium has been computed, the Employer Member agrees to pay the payable premium in twelve (12) equal monthly Installments, in advance, commencing immediately, with subsequent Installments due the first of each month thereafter, provided that if the payable premium shall be less than $5,000, such shall be payable In four (4) equal quarterly Installments In advance, commencing Immediately, with subsequent Installments due the first of each quarter thereafter. It Is understood by the Employer Member that there will be rate adjustments based upon the Increased benefit levels mandated by the Workmen's Compensation Act and those promulgated by the State Board of Insurance. 4. The estimated payable premium for the Employer Members shall be based upon payroll estimates and shall be payable as provided In 3 above. At the and of each and every Fund year, there shall be submitted by the Employer Member actual payrolls as reflected by the books of the Employer Member and EMPLOYER MEMBER COPY (Execute and Return All Copies) �x • any additional amounts payable Into the Fund based upon the actual payroll shall be paid and lesser amounts Payable shall be adjusted by refund to the Employer Member. The Fund reserves the right to audit the Payroll records of any Employer Member. A direct field audit shall be made of all Employer Members at least once In every 36 month period, effective July 1, 1977, and each Employer Member with annual standard Premiums in excess of $20,000 shall be audited annually. Every Employer Member shall give their full cooperation In every field audit. 5. The Fund agrees to use as a guide the workmen's compensation experience rating plan as prescribed by the State Board of Insurance and to calculate and furnish each Employer Member its Individual experience modification when earned in accordance with the provisions of such experience rating plan. 6. The Fund egress that it has obtained aggregate stop loss reinsurance to assure that the Incurred losses and expenses for the total Fund shall not exceed the maximum 75% of standard premiums paid and payable by Employer Members Into this Fund. The Employer Members have no Joint or several liability other than the maximum 75% of standard premium payable by each Employer Member. Any savings to the Fund shall be available for dividend determination as declared by the Board of Trustees (hereinafter referred to as "Board ") from time to time. The Fund shall Invest any and all funds that are on deposit with the Fund, and the Investment earnings from these particular funds shall be used for the benefit of the Employer Members that remain as members of the Fund until such time as the Board deems that it is financially feasible to declare dividends. Such dividend determinations will be made annually. 7. The Fund shall at all times provide for reinsurance of the Fund itself so that the participation of the Employer Members shall at all times be on a non - assessable basis beyond the amounts as set forth in this Contract. The Fund has catastrophe loss protection excess of $100,000.00 for any one accident or occurrence up to a limit of $15,000,000.00 and aggregate stop loss protection excess of 70% aggregate Incurred losses to aggregate standard premiums for the total Fund for this contract period. The Board reserves the right to adjust either one of these reinsurance provisions in the event that the fiscal soundness of the Fund will Justify such an adjustment and result In a savings to the Employer Members. Before any such adjustment is made, notice will be given to all of the Employer Members together with an accounting from the Fund in order that any Employer Member may appear before the Board to discuss the fiscal soundness of the Board's action. S. The Undersigned Employer Member agrees that It will cooperate In instituting any and all reasonable safety regulations that may be recommended for the purpose of eliminating or minimizing hazards that would contribute to workmen's compensation losses. In the event that the recommendations submitted by the Contractor on behalf of the Fund seem unreasonable, the Employer Member has a right to appeal to the Board; and the decision of the Board shall then be final. 9. The Employer Member agrees that It will appoint a workmen's compensation coordinator for the Employer Member and that the Fund and Its Contractor shall not be required to contact any other Individual except this one person. Any notice to ar any agreements with the workmen's compensation coordinator shall be binding upon the Employer Member. The Employer Member reserves the right to change the coordinator from time to time by giving written notice to the Fund and to the Contractor. 10. In addition to the premium as herelnabove set forth, there shall be payable an annual filing fee payable by the Employer Member (currently $7.50) which amount Is paid to the Industrial Accident Board for a filing on behalf of the Employer Member. notice off Injury has beenhgiven,oto prepare employed llot required the Fund Industrial Accident Board forms and a I to l ovldeteg defense. Employer Member hereby appoints Contractor as Its agent to act In all matters pertaining to processing and handling of workmen's compensation claims. They shell carry on all negotiations with the Injured employee or his attorney at the prehearing conferences and negotiate within authority previously granted by the Fund. If a personal appearance by the employer or a co- employee Is necessary, the expense of this appearance will be paid by the Employer Member. The Contractor will retain and supervise legal counsel in behalf of and at the expense of the Fund necessary for the prosecution of any litigation. There will be safety engineering services supplied by the Contractor to the Employer Member to assist them In following a plan of loss control that may result in reduced fosses. The Contractor shall provide all of the services as provided In the proposed service contract entered Into by and between the Contractor and the Fund on behalf of the Employer Member. Notwithstanding any provisions of this paragraph, all reports and filings required by the Industrial Accident Board of an employer will be the responsibility of the Employer Member. 12. There shall be supplied periodically to each Employer Member a computer printout Involving a statement of claims, claims status, and activity report cumulative for each Fund year. 13. The Employer Member agrees to execute necessary authorization forms permitting the Fund and the Contactor to obtain from the State Board of Insurance the experience rating modification for the Employer Member that has previously carried workmen's compensation Insurance. Upon any contract termination or non - renewal, the Employer Member agrees that the Fund may file with the State Board of Insurance loss and payroll data pertaining to the Employer Member as used to develop experience modification. is 14. In the event that the Employer Member falls or refuses to make the payments of premiums as herein provided, the Fund reserves the right to terminate such Employer Member by giving ten (10) days written notice and to collect any and all premiums that are earned pro rate for the period preceding contract termination. Any Employer Member that Is terminated hereunder shall not be entitled to any of the dividends that have not been paid at the time. 15. The undersigned Employer Member does hereby agree that any suit brought by one of Its employees pursuant to the provisions of Article 8309h shall be defended In the name of the political subdivision by the counsel selected by the Contractor. Full cooperation shall be extended to supply any Information needed or helpful In such defense. 16. The Employer Member agrees to abide by the Bylaws of the Fund. 17. The Employer Member Is a political subdivision of the State of Texas and will be bound by the provisions of Article 8309h of the Texas Workmen's Compensation Act as amended or as may hereafter be amended during the term of this agreement. All decisions In Individual cases to appeal awards of the Industrial Accident Board shall be made by the Fund, but the Employer Member shall have a right to appeal to the Board where decisions shall be final. It Is further understood that this agreement does not cover discrimination suits under Article W07c. 18. The Fund agrees that all Fund Transactions will be annually audited by a nationally recognized, certified professional accounting firm. 19. In the event an employee's Injury Is caused by a third party and any recovery from the third party Is made, the Employer Member agrees that the amount of said recovery shall apply first to reimburse the Fund for Its compensation and medical payments and expenses In handling and defending said claim until Fund Is fully reimbursed. 20. In order to have an orderly, complete and well understood basis for contributions to the Fund, the current plans and future amendments with respect to Workmen's Compensation rates and premiums of the State Board of Insurance are hereby adopted as a guide; but by such adoption It Is recognized that the rating structure promulgated by the State Board of Insurance Is not applicable to self - Insurance, and there is no intention to bestow rating authority over this plan of self - Insurance upon the State Board of Insurance. Any reference at any time In this contract 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." By entering Into this agreement, each of the participating Employer Members agrees to pay Into the Fund Its proportionate part as due hereunder and for the Fund, In accordance with the provisions hereof, to make the payments due under the Workmen's Compensation Act to the employees of the participating Employer Members. It Is recognized that this Agreement Is between concurring political subdivisions, as authorized by Article 8309h, Revised Civil Statutes of Texas, as amended, to provide for their employees through "self- Insurance" the workmen's compensation benefits adopted by Article 8309h. As the administrators of the self - Insurance Fund, the Board shall primarily and constantly keep foremost In their deliberations and decisions In operating the Fund that each of the participating Employer Members Is a "self- Insured." At least annually, the Board shall carefully review, study and consider the actual claims or loss experience (Including, reserves for future claims payments) of each of the Employer Members, the experience rating modification developed or earned by each of the Employer Members, the pro rata savings to the Fund resulting from overall loss experience attributed to each of the Employer Members, the pro rate portion of any Investment earnings of the Fund attributed to each Employer Member, and the pro rate portion of the cost of all catastrophic loss protection reinsurance and aggregate stop loss reinsurance allocated to each Employer Member, as well as the pro rata allocation, as determined by the Board of the other and necessary administrative expenses of the Fund, In order to reasonably determine the actual pro rate cost, expense and foss experience of each Employer Member In order to maintain as nearly as possible an equitable and reasonable "self - Insurance" administration of the Fund as applied to each Employer Member. IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto duly authorized this day of Contract Number TEXAS MUNICIPAL LEAGUE WORKMEN'S COMPENSATION JOINT INSURANCE FUND BY Austin, Texas The Workmen's Compensation Coordinator for the Employer Member Is: Chairman FOR NAME Employer Member ADDRESS BY CITY Zip Authorized Official . TELEPHONE Texas [Execute and Return All Copies] Corpus Christi, Hxas day of 19v— TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the "date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of.the City Council. Respectfully, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended by the following vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample The above ordinance was passed by the following vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample 13'7"x9