Loading...
HomeMy WebLinkAbout1992-081ALL00207\900 3b ORDINANCE NO -0,91 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE TEXAS POLITICAL SUBDIVISIONS PROPERTY/CASUALTY JOINT SELF INSURANCE FUND FOR THE PURCHASE OF CERTAIN INSURANCE COVERAGES, AUTHORIZING THE EXPENDI- TURE OF FUNDS THEREFORE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, political subdivisions of the State of Texas have formed a joint self-insurance pool for the purpose of providing liability, property and automobile physical damage insurance and self-insur- ance funding, reinsurance, claims administration, loss control ser- vices and other risk management services for Fund members, and WHEREAS, the City Manager having recommended that the City enter into this Agreement for the purposes authorized by the Interlocal Cooperation Act and that the City be authorized to purchase insur- ance and reinsurance provided that the Fund or, when appropriate, the City has complied with all applicable statutory bidding re- quirements, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is hereby authorized to execute an Interlocal Agreement with the Texas Political Sub- divisions Property/Casualty Joint Self -Insurance Fund, a copy of which is attached hereto and incorporated by reference herein SSECTION II That the City Manager is hereby authorized to purchase insurance and reinsurance through such Fund so long as all applicable statutory bidding requirements have been met, either by the City or by the Fund SECTION III That this ordinance shall become effective imme- diately upon its passage and approval', / PASSED AND APPROVED this the ✓ day of -,L12 V 1992 BOB CASTLEBERRY, MA ATTEST: JENNIFER WALTERS, CITY SECRETARY BY � ✓�/11� U APPROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY BY Page 2 TEXAS POLITICAL SUBDIVISIONS JOINT SELF INSURANCE FUNDS P O Box 2768 Dallas Texas 75221 (214) 760 6185 Fax (214) 760 3707 TEXAS POLITICAL SUBDIVISIONS PROPERTY/CASUALTY JOINT SELF-INSURANCE FUND INTERLOCAL AGREEMENT This contract and Interlocal Agreement is entered into by and between political subdivisions of this state (hereinafter referred to as "Fund Members") to form a joint self-insurance pool to be named the Texas Political Subdivisions Property/Casualty Joint Self -Insurance Fund (hereinafter referred to as the "Fund") for the purpose of providing liability, property and automobile physical damage insurance and/or self-insurance funding, reinsurance, claims administration, loss control services, and other risk management services as needed for the "Fund Members" and their employees WITNESSETH The undersigned Fund Member, in accordance with the Interlocal Cooperation Act, Article 4413 (32C), T R C S and the interpretation thereof by the Attorney General of the State of Texas (Opinion NMW-347, May 29, 1981), and in consideration of other Fund Members executing like agreements, does hereby agree to become one of the Fund Members of this self -insured pool 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 Political Subdivisions Property/Casualty Joint Self -Insurance Fund b TPS Joint Self -Insurance Fund General Liability Coverage The general liability coverage document of the Texas Political Subdivisions Property/Casualty Joint Self -Insurance Fund that sets forth in exact detail, the coverages, limits of self-insurance, deductibles, exclusions and conditions TPS Joint Self-Imurance Fund Automobile Liability and Physical Damage Coverage The automobile liability and physical damage coverage document of the Texas Political Subdivisions Property/Casualty Joint Self -Insurance Fund that sets' forth in exact detail, the coverages, limits of self-insurance, deductibles, exclusions and conditions d TPS Joint Self -Insurance Fund Property Coverage The property coverage document of the Texas Political Subdivisions Property/Casualty Joint Self -Insurance Fund that sets forth, in exact detail, the coverages, limits of self-insurance, deductibles, exclusions and conditions Texas Political Subdivisions Workers Compensation Joint Insurance Fund Texas Political subdivisions Property/Casualty Joint Self Insurance Fund fi80 e Servicing Contractor Employers Casualty Company Each fund Member may adopt either the TPS Joint Self -Insurance Fund General Liability Covetage, TPS Joint Self -Insurance Fund Automobile Liability and Physical Damage Coverage or the TPS Joint Self -Insurance Fund Property Coverage self-insurance plans Whichever Self -Insurance Plan(s) the Fund Member accepts, the Fund Member agrees to adopt and accept the coverages, provisions, terms, conditions, exclusions and limitations of the applicable Self -Insurance Plan(s) Coverage Document(s) The limits of self- insurance, optional coverages and deductibles selected by the Fund Member will be shown on the Declarations of each coverage document The Fund Member should examine the Deductible provisions of the coverage document(s) selected to determine the Fund Member's obligations to mimb irse the Fund if the Fund pays part or all of any deductible to effect settlement of a loss, claim or suit The Fund Member should also examine the Deductible provisions to determine the expenditures that the Fund may make that apply to and may exhaust any deductible selected If the Fund Member adopts the TPS Joint Self -Insurance Fund General Liability Coverage, or the TPS Joint Self -Insurance Fund Automobile Liability and Physical Damage Coverage self-insurance plan(s) which cover liability exposures, it is understood that by participating in this Self -Insurance pool, the Fund Member does not intend to waive any of the immunities that its officers or employees now possess The Fund 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 4 The Fund Member agrees to pay contributions to the Fund based on a rating system approved by the Board Contributions are payable to the Fund in advance of the fiscal year Prior to each anniversary date following the inception of this agreement, the Fund Member shall submit data as requested by the Fund in the form of a self -audit that may be used to determine the final contribution for the previously ended coverage period Based on the data submitted, a final contribution adjustment may be necessary resulting in the payment of additional contribution by the Fund Member or return of contribution to the Fund Member The Fund reserves the right to audit the relevant records of any Fund Member MEW= 1WI9/91) !M 6 Unencumbered hinos of the Fund shall be available for excess contribution refunds as determined by the Board The Fund shall invest, in accordance with the Board approved guidelines, and all monies that are on deposit with the Fund, and the investment earnings from these parti.ular monies snall be used for the benefit of the Fund Members until such time as the Board deems that it is financially prudent to declare excess contribution refunds Such determinations will be made annually 7 The Fund shall at all times maintain adequate reinsurance to protect the financial integrity of the Fund Loss control services will be suppued by the servicing contractor to the Fund Members to assist them in following a plan of loss control that may result in reduced losses The undersigned Fund Member agrees that it will cooperate in instituting any and all reasonable loss control recommendations for the purpose of el nimaung or minimizing hazards that would contribute to losses In the event that the recommendations submitted on behalf of the Fund seem unreasonable, the Fund Member shall have the right to appeal to the Board, and the decision of the Board shall be final 9 The Fund Member agrees that it will appoint a coordinator of department head rank or above and that the Fund and its servicing contractor shall not be required to contact any other individual except this person Any notice to or any agreements with the coordinator shall be binding upon the Fund Member The Fund Member reserves the right to change the coordinator from time to time giving written notice to the Fund and to the servicing contractor 10 The Fund, through the servicing contractor employed by the Fund, agrees to administer any and all claims after notice of claim has been given and to provide a defense vhere appropriate The Fund Member hereby appoints the Fund and its servicing contractor as its agent to act in all matters pertaining to processing and handling of all claims and shall cooperate fully in supplying any information needed or helpful in the settlement of those claims The servicing contractor shall carry on all negotiations with any third parties or their attorneys and negotiate within authority granted by the Fund The servicing contractor shall retain and supervise legal counsel on behalf of and at the expense of the Fund as necessary for the prosecution and defense of any litigation At the option of the servicing contractor, a Fund Member may be allowed to choose the legal counsel it deems most appropriate for the negotiation of individual cases or litigation However, all decisions on individual cases shall be made by the Fund through the servicing contractor, which includes the decision to appeal or not to appeal a final (REVORD 10/29191) 182 adjudication at the trial court level 11cwever, any Fund Member shall have the right to consult with the Fund or its servicing contactor on any case and hale the right to appeal any decision m. ue by the servicing contractor to the Board Any suit brought or defended by the Fund shall be brought or defended only in the name of the Fund Member and/or its officers or employees The Fund shall periodically supply each Fund Member with a computer printout containing a statement of claims 11 The Fund Member agrees to execute necessary authorization forms permitting the Fund and the servicing contractor to obtain from the State Board of Insurance the experience rating modification or loss data for the Fund Member 12 Commensurate with the execution of this Agreement and annually thereafter, the Fund Member shall complete the appropriate exposure summary Litentional or reckless misstatements on the exposure summary shall be grounds for caricA•hation 13 In the event that the Fund Member fails or refuses to make payment., of contributions as herein provided, the Fund reserves the right to terminate such Fund 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 Any Fund Member that is terminated hereunder shall forfeit any of the refunds that have not been paid prior to the date of termination 14 The Fund Member agrees to abide by the Bylaws of the Fund 15 In order to have a basis for contributions to the Fund, the various rating mechanisms of the State Board of Insurance may be used as a guide It is understood that any rating structures that may be used and which are promulgated by the State Board of Insurance do not apply to self -funding and there is no intention to bestow rating authority over this plait of self -funding upon the State Board of Insurance 16 At least annually, the Board shall review, study and considei the chums or loss experience (including reserves for future claim payments) of each of the Fund Members, the unencumbered monies to the Fund resulting from overall loss experience attributed to each of the Fund Members, the investment earnings of the Fund, as well as payment and authorization by the Board of other necessary administrative expenses of the Fund The Board shall use the foregoing information as a basis for the reasonable determination of the actual cost, expense and loss experience of each Fund Member in order to maintain as nearly as possible an equitable and reasonable administration of the Fund applied to each Fund Member (REVISED IOM/91) 11 The duration of this Interlocal Agreement shall be for a term commencing at 12 01 a in on October 1, 1991 and terminating at 12 01 a m on October 1, 1992 unless this agreement is terminated by sixty (60) days written notice by either the Fund Member or the Fund or as otherwise specified in the terms and agreements of this Interlocal Agreement or the Bylaws of the Fund City of Denton Fund Member Name 5-S-qd Date Signature of Authorized Official THE PROPERTY/CASUALTY COORDINATOR FOR THE I'UND MEMBER (Para 10) Coordinator Name & Title Max Blackburn Mailing Address —%I-B Texas Street Denton TX 76201 Addm cny ZIP Street Address Add m. - chy zW Phone ( 1 October 1. 1991 Effective Date of .Agreement Signature of Fund Secretary F0011 Contract Number /-.>/_er Date n I I n I F