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
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