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HomeMy WebLinkAbout1987-1511967L NO f'7-/S/ AN ORDINANCE ACCEPTING THE PROPOSAL OF ARKWRIGHT INSURANCE COMPANY AND A PORTION OF THE PROPOSALS OF ARTHUR J GALLAGHER & COMPANY AND EMPLOYERS INSURANCE OF TEXAS FOR PROPERTY, CASUALTY AND WORKERS' COMPENSATION INSURANCE, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND DECLARING AN EFFECTIVE DATE THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the proposal of Arkwright Insurance Company and a portion of the proposals of Arthur J Gallagher & Company and Employers Insurance of Texas for property, casualty and workers' compensation insurance, copies of which are attached hereto and incorporated by reference herein, are hereby accepted SECTION II That the City Council hereby authorizes the expenditure of funds in the manner and amount as specified in the agreement SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of 4 ) , 1987 klAzial-I /�OR ATTEST JEb7FER ALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY ) 1 V n CfV\/1 ATTACHMENT A ARIMUGUT Al hwrioil 1"mm u¢c Company Smll 270 127(N) 1111IMSt (toad August 13, 1986 Ddln IX79210 214 211 1094 Purchasing Department City of Denton 901B Texas Street +, Denton, Texas 76201 SUBJECT Property Insurance Proposal Bid #9768 Gentlemen Enclosed is Arkwright Insurance Company's proposal for Property insurance Some objectives of our proposed "All Risk" program are 1 Consolidate all property coverages into one master program, including your current Arkwright Boiler and Machinery coverages This also encompasses the EDP equipment and mobile equipment 2 Only one deductible applies in the event of a joint property and Boiler & Machinery loss This feature could save a significant amount of money for the City of Denton No Joint Loss Agreement is necessary as all coverages are underwritten by Arkwright 3 Ease of administration Combining several small policies into a single program accomplishes this 4 Three Year policy This provides stability while avoiding annual negotiations caused by contracts expiring Excellent engineering/property conservation services are provided free of charge to enable The City of Denton to improve and to control your risk management programs to the fullest degree This proposal meets or exceeds specifications See attached forms and proposal details We are prepared to bind these coverages effective October 1 1987 If any questions arise from this proposal, I will be available for assistance Cordially, Alan H Armbruster Senior Account Representative 0459a INSURANCE PROPOSAL FOR THE CITY OF DENTON, TEXAS August 13 1986 By Alan H Armbruster Arkwright Insurance Company 12700 Hillcrest Road Suite 270 Dallas, TX 75230 OVERVIEW As a member of the Factory Mutual System, Arkwright enjoys the reputation as one of the world's foremost property insurance companies' We are organized to work closely with our policyholders It is important that The City of Denton know Arkwright and its capabilities as this will enable you to improve and control your risk management programs to the fullest degree Our presentation is designed within the principles of Risk Management. We feel you will know us even better through our proposal All of Arkwright's property forms are fully approved and admitted by the State of Texas Included in this proposal is the most recent Arkwright Annual Report This report reflects the success we've had in achieving our long term goal to provide a stable economical market for you Stability will be an important factor in the future as reinsurance markets and many stock companies face severe market restrictions because of recent poor underwriting results and cyclical financial results in the securities markets Sound financial management and the high quality of the organizations we insure has made this stability possible These factors, coupled with a traditionally low level of losses is a source of pride to us and one in which we hope you will elect to participate CLAIMS SERVICES Property claims are adjusted through Factory Mutual Adjustment located in Dallas, Texas Factory Mutual Adjustment will work directly so that claims can be expedited and delays minimized Losses are reported to Mr Alan H Armbruster, Sr Account Representative, at 214 233 1094 or directly to Factory Mutual Adjustment at 214-661 9202 The report of loss will be immediately transmitted to Factory Mutual Adjustment, which will contact the insured for immediate action based on the loss Depending upon the nature of claims adjustment representatives can be at the site of the loss within hours Mr Tom Freeman, Vice President and Regional Claims Manager for Arkwright is responsible for developing a positive working relationship with our policyholders and working closely with Factory Mutual Adjustment He will monitor all loss adjustment activities and participate where necessary to provide supplemental service that will assure fair and equitable settlements on a timely basis Representatives of The City of Denton will be kept informed through correspondence and reports so that the status of claims can be known at all times I II COVERAGES BASIC COVERAGES. "All Risk" coverages, Real and Personal Property including Flood and Earthquake, and EDP Equipment See enclosed property forms COVERAGES INCLUDE. Automatic Coverage Error and Omissions Demolition Increased Cost of Construction Debris Removal Collapse Theft/Burglary Transit Property of Others III SPECIAL CONDITIONS. 60 Day Cancellation Clause No Coinsurance Agreed Amount Repair or Replace Premium and/or Rates can be adjusted annually IV POLICY TERM, October 1, 1987 to October 1 1990 V LOCATIONS. As per specifications VI VALUES TOTAL. $43,508 000 100% per specifications VII LIMITS OF LIABILITY VIII DEDUCTIBLES. IX PREMIUM, X COVERAGE OPTIONS. Blanket EDP Equipment EDP/Media EDP/EE Flood Earthquake Unnamed Floater Lee Errors & Omissions Demolition and Incr Cost of Constr Automatic Coverage Transit 43 508,000 IJ500 000 250,000 100,000 5 000,000 annual aggregate 5 000,000 annual aggregate 500 000 1 000 000 1 000 000 5 000,000 100,000/200,000 "All Risk" $50,000 Combined $38 285 annually Coverage for scheduled locations $6,535 deductible applies vehicles at described annual premium, policy SUMMARY OF BENEFITS 1 Arkwright is a major underwriter of Municipalities and Institutional rganizations The property insurance programs we design for these Insureds are unique in each case 2 Policy Administration will be simple and time expended by The City of Denton management will be minimal 3 Arkwright is committed to providing stability in the marketplace 4 repair or replacement coverage is provided for property coverages without coinsurance 5 Favorable pricing and deductibles, both now and in the future 6 Excellent Engineering/Property Conservation services An engineer of our organization will periodically visit with you to assist in property conservation needs Free engineering reviews of plans, materials and completed work is provided for any new or proposed projects 7 Service is grovided on several levels with planned visits by management the account underwriter, and the account engineers 8 New additions at Insured locations are covered automatically without the need for additional Builder's Risk policy, up to the policy limits 9 High limits of capacity to provide Fire and DIG limits as well as Boiler and Machinery requirements as needed 10 Coverage for llapse and liquid damage is to full policy limits 11 Full DIC coverage including rhefr flood and earthauake 12 The deductible for the various property coverages applies concurrently A joint loss involving Fire Boiler and Machinery, and Difference In Conditions coverages would have only one deductible applying to any one loss 13 There will be no need for a joint loss agreement as all property coverages are being underwritten by Arkwright Boston Insurance Company 14 Damage to property of others is included while in your "care, custody and control", with values appropriately reported 15 Written notice is not required in the event of loss 16 Extra Exnenae and Valuable Papers coverages can be added at any time CURRENT ARKWRIGHT POLICYHOLDERS INCLUDE. CITY OF DENTON 0 CITY OF DALLAS CITY OF AUSTIN CITY OF EL PASO CITY OF GARLAND CITY OF ODESSA PUBLIC SERVICE OF SAN ANTONIO DALLAS/FORT WORTH INTERNATIONAL AIRPORT DALLAS INDEPENDENT SCHOOL DISTRICT RICHARDSON INDEPENDENT SCHOOL DISTRICT DRESSER INDUSTRIES INC TEXAS INSTRUMENTS INCORPORATED Policy No ALL RISK POLICY Arkwright-Boston Insurance 0m, Arkwright-Boston Insurance Company 225 Wyman Street Waltham Massachusetts 02154 STOCK COMPANY FORM In Consideration of the Provisions and Stipulations herein or added hereto and of — Dollars Premium this Company for the term from the day of 19 _ at 12 01 am Standard Time at of to the day of 19 _ location of property involved to an amount not exceeding Dollars does insure — and legal representatives to the extent of the actual cash value of the property at tune of loss but not exceeding the amount which it would cost to repair or replace the properly with material of like kind and quality within a reasonable time after such loss without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating construction repair and use and without compensation for loss resulting from interruption of business or manufacture nor in any event for more than the interest of the insured against ALL RISKS OF PHYSICAL LOSS OR DAMAGE except as hereinafter excluded to the property described hereinafter while located or contained as described in this Policy or pro rata for ninety days at each proper place to which any of the property shall necessarily be removed for preservation from loss insured against in this Policy but not elsewhere PROVISIONS SPECIALLY APPLICABLE TO THIS POLICY Assignment of this Policy shall not be valid except with the written consent of this Company This Policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated which are hereby made a part of this Policy together with such other provisions stipulations and agreements as may be added thereto as provided in this Policy In Witness Whereof, this Company has executed and attested these presents but this policy shall not be valid unless countersigned by the duly authorized Agent of this Company at 6419b�r1 -� Secretary Countersigned this day of 19 President (Rev 286) MOM 2 (a) hostile or warlike action in time of peace or war including action in hinder ing combating or defending against an actual impending or expected attack (Q by any government or sovereign power (de Pure or de facto) or by any authority maintaining or using military naval or air forces, or (n) by military naval or air forces or (m) by an agent of any such government power authority or forces (b) any weapon of war employing atomic fission or radioactive force whether in time of peace or war, (c) insurrection rebellion revolution civil war usurped power or action taken by governmental authority in hindering combating or defending against such an occurrence seizure or destruction under quarantine or custom regulations confiscation by order of any government or public authority or risks of contra band or illegal transportation or trade 3 explosion rupture bursting cracking burning or bulging of steam boilers steam I turbines gas turbines steam engines and pressure vessels or piping or apparatus attached to any of the foregoing while such property is owned operated or controlled by the Insured cumulated corn bu)stibleexcept gases ordamage sumedresulting fuelfrom within the explosion a furnace of a boiler or pressure I vessel other than combustion gas turbines or within the flues or passages I which conduct the gases of combustion therefrom (b) unless 1 caused by fire, or 2 damage by fire results and then the Company shall be I table for only such resulting fire damage 4 delay or loss of market 5 any fraudulent or dishonest actor acts committed alone or in collusion with others (a) by any proprietor partner director trustee officer or employee of the Insured whether or not such acts are committed during regular business hours or (b) by any proprietor partner director trustee or officer of any proprietorship partnership corporation or association (other than a common carrier) engaged by the Insured to render any service or perform any act in connection with property insured under this Policy 6 extremes or changes of temperature (except damage to equipment) or changes in relative humidity all whether atmospheric or not unless liquid escapes to the open in which case the Policy will cover damage caused by the escaped liquid and loss of or damage to the liquid 7 lack of incoming electricity fuel water gas steam or refrigerant caused by an occurrence off the premises described in this Policy unless specifically endorsed herein, however if the lack of such a service causes physical damage otherwise insured under this Policy on the described premises this Policy shall cover the resulting damage, 8 insects or vermin 9 flood waters waves tide or tidal water the release of water the rising overflowing or breaking of boundaries of natural or man made bodies of water or the spray from any of the foregoing whether or not caused by resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage, Form 3000T PAGE 2 OF 7 Edition May 1985 Factory Mutual Service Qureau Normod Meesechusettq diff SPECIAL CONDITIONS The coverages provided by the Texas Standard Policy are herein extended to Include All Risks of physical loss or damage to Insured property located in Texas except as hereinafter excluded The terms and conditions of the Texas Standard Policy shall take precedence over any terms and conditions of this Form and Endorsements thereto which are inconsistent therewith A PROPERTY INSURED Unless otherwise excluded this Policy covers the following property while on the described premises and within 1 000 feet thereof 1 real property in which the Insured has an insurable interest 2 personal property owned by the Insured 3 personal property other than motor vehicles of officers and employees of the Insured 4 personal property of others in the custody of the Insured which the Insured is under obligation to keep insured for physical damage of the type insured against under this Policy 5 personal property of others in the custody of the Insured to the extent of the Insured s legal liability for physical loss or damage of the type insured against by this Policy This Company further agrees to defend any suit against the Insured alleging liability for such damage destruction or loss and seeking damages on account thereof even if such suit is groundless false or fraudulent but this Company may without prejudice make such investigation negotiation and settlement of any claim or suit as this Company deems expedient B PROPERTY EXCLUDED This Policy does not insure against loss or damage to 1 bills evidences of title notes fine arts furs jewelry precious metals or precious stones 2 land standing timber growing crops 3 vehicles otherwise insured watercraft 4 property sold by the Insured under conditional sale trust agreement installment plan or other deferred payment plan after delivery to customers 5 property in transit unless endorsed hereon 6 underground mines and mining property located below the surface of the ground 7 dams or dikes C EXCLUSIONS GROUP A This Policy does not insure against loss or damage caused by or resulting from any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss 1 nuclear reaction or nuclear radiation or radioactive contamination from any cause all whether director indirect proximate or remote however (a) if fire not otherwise excluded results the Company shall be liable for direct loss by such resulting fire but not including any loss due to nuclear reaction nuclear radiation or radioactive contamination and (b) this Policy does insure against loss or damage caused by sudden and accidental radioactive contamination including resultant radiation damage from material used or stored or from processes conducted on the described premises provided that at the time of such loss there is neither a nuclear reactor capable of sustaining nuclear fission in a self supporting chain reaction nor any new or used nuclear fuel on the described premises Form 3000T Factory Mutual Service Bureau PAGE t OF 7 Edition May 1985 Norwood Massachusetts PROPERTY 3 This Policy covers property of the Insured at any location within the Continental Rico Canada when removed from the REMOVED FROM United States Hawaii Alaska Puerto or described premises for the purpose of being repaired serviced or in order to avoid DESCRIBED threatened damage from flood excluding PREMISES (a) property otherwise insured (b) property excluded from the insurance under this Policy or (c) property removed from the described premises for normal storage or proces sing or preparation for sale or delivery This Policy also covers pro rate for ninety days at each proper place to which property of the Insured shall necessarily be removed for preservation from loss insured against in this Policy DEMOLITION 4 If at the time of any physical loss or damage insured against by this Policy there is AND in force any law or ordinance regulating the construction repair replacement or use then this Policy shall cover as a result of enforcement of INCREASED of buildings or structures COST OF CONSTRUCTION' such law or ordinance (a) the additional loss sustained in demolishing any undamaged portion of the buildings or structures (b) the cost incurred in actually rebuilding both the damaged and demolished portions of such buildings or structures with materials and in a manner to satisfy such law or ordinance The total liability hereunder shall not exceed the actual expenditure incurred in demolishing the undamaged portion of the building(s) or structure(s) involved plus the lesser of the following (a) the actual expenditure incurred not including the cost of land in rebuilding on another site or (b) the cost of rebuilding on the same site This Policy shall not be liable for any cost of demolition or increased cost of reconstruction repair debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating any form of pollution AUTOMATIC 5 Unless otherwise insured on an all risk basis this Policy also covers property up COVERAGE to a limit of $ at any location in the United States Puerto Rico or Canada rented or purchased by the Insured after the inception date of this Policy for a period of 90 days from date of acquisition of such location ERRORS AND 6 In the event of loss or damage to property of the Insured located in the United OMISSIONS States Puerto Rico and Canada and such loss is not payable under this Policy solely because of (q) any error or unintentional omission in the description or location of property insured under this Policy which error or omission existed at the inception date of this Policy or error in the or ocation of roperty subsequentdescription nderrth this Policiynal in anyssion nsuedny amendmentslto this Policy or (c) failure through error or unintentional omission to include (1) any location owned or occupied by the Insured at the inception date of this Policy or (2) any location newly acquired or occupied during the term of this Policy or Form 9000T rddion May 1985 Factory Mutual Servme Bureau PAGE 4 OF 7 Norwood Massachusetts I 10 any earth movement Including but not limited to earthquake landslide or subs) dence whether or not caused by resulting from or contributed to by loss or damage of the type Insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage GROUP B This Policy does not insure against 1 indirect or remote loss or damage 2 mechanical or electrical breakdown (except lightning damage) of any equip ment unless physical damage not otherwise excluded results in which event this Policy shall cover only such resulting damage 3 mysterious disappearance or loss or shortage disclosed on taking inventory or any unexplained loss 4 faulty workmanship material construction or design from any cause unless physical damage not otherwise excluded by this Policy results in which event this Policy will cover only such resulting damage 5 loss attributable to manufacturing or processing operations which result in dam age to stock or materials while such stock or materials are being processed manufactured tested or otherwise being worked upon all unless physical dam- age not otherwise excluded by this Policy results in which event this Policy shall cover only such resulting damage 6 deterioration depletion rust corrosion erosion wear and tear inherent vice or latent defect unless physical damage not otherwise excluded by this Policy results in which event this Policy shall cover only such resulting damage 7 contamination shrinkage or change in color flavor texture or finish unless such damage results directly from other physical damage not otherwise excluded by this Policy 8 settling cracking shrinking bulging or expansion of pavements foundations walls floors orceilings unless physical damage not otherwise excluded by this Policy results in which event this Policy will cover only such resulting damage 9 impact damage to docks piers and wharves 10 increase in loss attributable to any law or ordinance which regulates construc tion repair replacement debris removal use or which necessitates demolition of any undamaged portions of property on the premises described herein D ADDITIONAL COVERAGES CONSEQUENTIAL 1 This Policy covers reduction in value of insured components or parts of products REDUCTION due to physical loss or damage insured against by this Policy to other insured IN VALUE components or parts of such products DEBRIS 2 This Policy covers expense of removal from the described premises of debris REMOVAL remaining after any loss hereby insured against Form 3000T Factory Mutual Service Bureau PAGE 3 OF 7 Edition May 1985 Norwood Massachusetts VALUATION (e) on media data and programs for electronic and electromechanical data equipment the cost of reproducing such media data (Cont d) processing and production and programs from duplicates or from originals of the previous generation of the data (f) on jigs and fixtures dies small tools patterns contractors equipment am and personal property of third parties the actual cash ployees personal property value with proper deduction for depreciation but not to exceed the cost to repair or replace the property with material of like kind and quality (g) on leasehold Improvements and betterments the replacement cost less phyyears depreciationcal i actually replacede Insureds ense within two d value unamort ze from the date of loss if (h) on all other property the actual cash value with proper deduction for depre ciation but not to exceed the cost to repair or replace the property with material of like kind and quality all to be computed at the time and place of loss CONSEQUENTIAL 4 In the event of physical damage Insured by this Policy to any property situate on the described and such damage without the Intervention of any other DAMAGE premises independent cause results In a sequence of events which causes physical damage to other property Insured by this Policy then this Policy will cover such resulting loss or damage Nothing In this clause shall be deemed to extend this Insurance to excluded from coverages by the terms of property which is otherwise specifically this Policy The liability of this Company includes only the physical damage incurred during such period as would be required with the exercise of due diligence under normal conditions to repair or replace the damaged property and does not include any liability resulting from inability of the Insured to make repairs or replacements because of strikes or labor disputes BRANDS AND 5 If branded or labeled merchandise covered by this Policy is damaged and this LABELS Company elects to take all or any part of such merchandise at the value established by the terms of this Policy thelnsuredmay at their own expense stamp salvage on the merchandise or its containers or may remove or obliterate the brands or labels If such stamp removal orobliteration will not physically damage the merchandise but the Insured must re label the merchandise or containers in compliance with the requirements of law SUBROGATION 6 This Company may require from the Insured an assignment of all right of recovery for loss to the extent that payment therefor is made by this against any party Company but this Company shall not acquire any rights of recovery which the Insured has expressly waived prior to loss nor shall such waiver affect the Insured s rights under this Policy Any recovery as a resultof subrogation proceedings arising out of a loss occurrence after expenses incurred in such subrogation proceedings are deducted shall accrue to the Insured in the proportion that the amount of deductible and/or the amount of any provable uninsured loss bears to the amount of the entire provable loss NO REDUCTION 7 Any loss hereunder shall not reduce the amount of this Policy BY LOSS DIVISIBLE S If the premises described in this Policy include two or more buildings or the CONTRACT contents of two or more buildings the breach of any condition of this Policy in respect to any one or more of the buildings insured or containing the property insured shall not prejudice the right to recover for loss occurring in any building insured or containing the property insured where at the time of the loss a breach of condition does not exist Form 9000T Edition May 1985 Factory Mutual Service Bureau PAGE 6 OF 7 Nor"orl Maaeachusale Inbel irvA `°ll ti ERRORS AND (d) any error or unintentional omission which results in cancellation of property OMISSIONS Insured under this Policy (Cont d) such loss or damage shall be insured by this Policy only to the extent this Policy would have provided coverage had the error or unintentional omission not been made up to a limit of $ EXPEDITING 7 This Policy covers up to a limit of $ the reasonable and neces EXPENSE sary extra costs of temporary repair or damage to property and the extra costs of expediting the permanent repairor replacement of such damaged property resulting from physical damage insured against by this Policy In no event shall these Expediting Expenses include expenses recoverable else where in this Policy or the cost of permanent repair orteplacement of the damaged property PROTECTION 8 In case of actual or imminent physical loss or damage of the type insured against AND by this Policy the expenses incurred by the Insured in taking reasonable and PRESERVATION necessary actions for the temporary protection and preservation of property insured OF hereunder shall be added to the total physical loss or damage otherwise recoverable PROPERTY underthe Policy and be subject to the applicable Deductible and without increase in the Limit provisions contained in this Policy E GENERAL CONDITIONS TITLES OF 1 The titles of the various paragraphs of this form (and of endorsements attached to PARAGRAPHS the Policy) are solely for reference and shall not in any way affect the provisions to which they relate DEDUCTIBLE 2 In each case of loss or damage covered by this Policy this Company shall not be liable unless the Insured sustains a loss in a single occurrence in excess of any applicable deductible provided elsewhere in this Policy and then only for its share of such excess When this Policy covers more than one location the deductible shall apply against the total loss or damage covered by this Policy in any one occurrence If two or more deductible amounts provided in this Policy apply to a single occur rence the total to be deducted shall not exceed the largest deductible applicable unless otherwise provided in this Policy If this Policy insures against both Property Damage and Time Element losses the deductibles as shown in this Policy shall apply separately to each such coverage even if both are involved in a single occurrence unless otherwise provided in this Policy VALUATION 3 Unless otherwise endorsed hereon adjustment of loss under this Policy shall be (a) on stock in process the value of raw materials and labor expended plus the proper proportion of overhead charges (b) on finished goods manufactured by the Insured the regular cash selling price at the location where the loss occurs less all discounts and charges to which the merchandise would have been subject had no loss occurred (c) on raw materials supplies and other merchandise not manufactured by the Insured the replacement cost (d) on exposed film records manuscripts and drawings the value blank plus the cost of transcription Form 9000T Factory Mutual Service Bureau PAGE 5 OF 7 Edition May 1985 Nonvood Massachusetts ti. INSPECTION COLLECTION FROM OTHERS OTHER INSURANCE CANCELLATION 9 The Company at all reasonable times during the Policy period shall be permit ted but not obligated to inspect the property insured by this Policy Neither the Company s right to make inspections nor the making thereof nor any report thereon shall constitute any undertaking on behalf of or for the benefit of the named Insured or others to determine or warrant that such property is safe or healthful 10 No loss or part of a loss shall be paid or made good hereunder to the extent the Insured has collected such loss from others 11 The Company shall not be liable for loss under this Policy if at the time of loss there is any other insurance which would attach if this insurance had not been effected except that this insurance shall apply only as excess and in no event as contributory insurance and then only after all other insurance has been exhausted 12 This Policy shall be cancelled at any time at the request of the Insured in which case this Company shall upon demand and surrender of this Policy refund the excess of paid premium above the customary short rates for the expired time This Policy may be cancelled at any time by this Company by giving to the Insured a thirty (30) days written notice of cancellation with or without tender of the excess of paid premium above this Company s normal earned premium for the expired time which excess if not tendered shall be refunded on demand Notice of cancellation shall state that said excess premium (if not tendered) will be refunded on demand However this Policy may be cancelled by the Company if the Insured fails to remit when due the payment of Premium for such policy by giving the Insured not less than ten (10) days written notice of cancellation Form 3000T Factory Mutual Service Bureau Norwood Massachusetts PRINTED IN U S A PAGE 7 OF 7 Edition May 1985 REPAIR OR REPLACE ENDORSEMENT In consideration of additional premium paragraphs (f) (g) and (h) of General Condition No 3 VALUA TION of part E GENERAL CONDITIONS of the Policy to which this Endorsement is attached are amended to Indemnify the Insured for the cost of rebuilding repairing or replacing the damaged or destroyed property subject to the following conditions 1 If property damaged or destroyed is useless to the Insured or is not repaired rebuilt or replaced on the same or nothe _ not be liable fora morer rthan the actual cash value alueh h (witproof spers deduct oor damagneforlCompanyshall depreciation) site within two years of the property destroyed 2 The total liability of this Company under this Policy for loss to property included under this Endorsement shall not exceed the smallest of the following a the cost to repair or b the cost to rebuild or replace on the same site with new materials of equivalent size kind and quality, or c the actual expenditure ertuororenthe t ed or poperty onesame or anoer sebut nttexceedthsize and operating capacity hat existed at the time of loss all as of the time when, with due diligence and dispatch rebuilding repairing or replacement of the damaged or destroyed property could be effected 3 If at the time of loss covered under this Policy claim is made for the cost of replacement of the property damaged or destroyed, then this Company shall be (sable un bears to 100% of the Enclorsementoust at or no greater proportion of such loss than the amount of $ site time fsquality the sme site of replacement in a new ala he property included under the t� ms of this Endorndition with semeials nnt The and at hev ze kind andvalue of the foundations and other property located below the lowest basement floor or where there is no bas provision t below the In the event that the aggce of eregate claimshall forr andisregarded losss covered under (the conditions insurance of this Endorsement is less than $100 000 no special inventory or appralsement of the undamaged property shall be required For property located in the Commonwealth of Massachusetts orthe State of North Carolina paragraph 2 c of this Endorsement is amended to read as follows 2 c the actual expenditure incurred in rebuilding repairing or replacing the damaged or des troyed property on the premises described in this Policy or some other location within the Commonwealth of Massachusetts or the State of North Carolina as the case maybe mutually agreed upon between the Insurer and the Insured but not to exceed the size and operating capacity that existed at the time of loss Form 3100 PAGE 1 OF 1 Edition May 1984 Factory Mutual Service Bureau Norwood Massachusetts PRINTED IN U S A F:N ttlal shy: m AGREED AMOUNT ENDORSEMENT (Repair or Replace) Until the amount stipulated under Paragraph 3 of the Repair or Replace Endorsement represents at least 100% of the value of the property included under the Endorsement Form 3101 Factory Mutual Service Bureau Norwood Massachusetts PRINTED IN U S A PAGE 1 OF 1 Edition November 1984 Replaces March 1984 GENERAL CONDITIONS ELIMINATION The following exclusions Nos 8 and 9 in Group A of Part C EXCLUSIONS of this OF Policy do not apply to coverage under this Endorsement EXCLUSIONS 8 Flood waters waves tide or tidal water the release of water the rising overflow ing or breaking of boundaries of natural or man made bodies of water or spray from any of the foregoing whether or not caused by resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage 9 Any earth movement including but not limited to earthquake landslide or subsidence whether or not caused by resulting from or contributed to by loss or damage of the type Insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage NO BENEFIT This insurance shall in no way inure directly or indirectly to the benefit of any carrier TO BAILEE or bailee VALUATION In case of loss the basis of adjustment unless otherwise endorsed hereon shall be as follows (A) Property shipped to or for the account of the Insured shall be valued at actual invoice to the Insured together with such costs and charges (including the commission of the Insured as selling agent) as may have accrued and become legally due thereon (B) Property which has been sold by the Insured and has been shipped to or for account of the purchaser (if covered hereunder) is valued at the amount of the Insureds selling Invoice Including prepaid or advanced freight t value at (C) Property dent destination oner invoice on the datelof disalsterd atthe less anytual cha charges saved ewhich would have become due and payable under delivery at destination BILLS OF Permission is hereby granted to the Insured without prejudice to this insurance to LADING accept the ordinary Bills of Lading used by carriers including released and/or under valued Bills of Lading and/or Shipping or Messenger Receipts and the In sured may waive subrogation against railroads under side track agreements and except as otherwise provided the Insured shall not enter into any special agreement with carriers releasing them from their common law or statutory liability FRAUD This Endorsement also covers loss of or damage OR DECEIT (A) Occasioned by the acceptance by the Insured Insureds agent customer or consignees) or others of fraudulent Bills of Lading Shipping or Messenger Receipts (B) Obtained by fraud or deceit perpetrated by any person(s) who may represent themselves to be the proper party or parties to receive the property for shipment or to accept it for delivery Form 3107 PAGE 2 OF 2 Edition March 1984 Factory Mutual Service Bureau Norvrood Massachusetts PRINTED IN u S A �i TRANSPORTATION ENDORSEMENT In consideration of additional premium the Policy to which this Endorsement is attached is extended to cover Personal Property as described herein except as otherwise excluded by this Policy while such property is in transit PROPERTYINSURED 1 Personal Property owned by the Insured 2 Personal Property shipped to customers on F O B C & F or similar terms The Insured s contin gent interest in such shipments is admitted 3 The interest of the Insured in and legal liability for Personal Property of others in the actual or constructive custody of the Insured 4 Personal Property of others sold by the Insured which the Insured has agreed prior to loss to insure during course of delivery ADDITIONAL PROPERTY EXCLUDED 1 Samples in the custody of salespersons or selling agents 2 Property insured under import or export ocean marine policies 3 Waterborne shipments via Panama Canal and waterborne or airborne shipments to and from Alaska Puerto Rico and Hawaii 4 Shipments made by air unless via regularly scheduled airlines 5 Property shipped by mail 6 Property of others including the Insureds legal liability therefor hauled on vehicles owned leased or operated by the Insured when acting as a common or contract carrier as defined by the Interstate Commerce Commission Regulations or state regulatory agencies LIMIT OF LIABILITY The liability of this Company in anyone loss disaster or casualty either in case of partial or total loss or salvagecharges or any other charges or expenses orallcombined shall not exceed the applicable limit of liability as follows (A) $ on Personal Property moron anyone conveyanceor individual unitthereof except (B) $ aggregate liability in any one loss disaster or casualty DEDUCTIBLE CLAUSE Each claim for loss or damage or expense under this Endorsement shall be adjusted separately and this Company shall not be liable unless the Insured sustains a loss in excess of $ and then only for its share of such excess ATTACHMENT AND DURATION OF COVERAGE Except as hereinafter provided this insurance attaches from the time the property leaves the original point of shipment for the commencement of transit and covers thereafter continuously in the due course of transit within the Continental United States of America and Canada and Alaska within Hawaii or within Puerto Rico until delivered at destination Coverage on export shipments not insured underocean marine policies does not extend beyond the time when the property is loaded on board overseas vessel or aircraft Coverage on import shipments not insured under ocean cargo policies does not attach until after discharge from overseas vessel or aircraft ADDITIONAL COVERAGE Coverage provided by this Endorsement shall include general average and salvage charges on ship ments covered while waterborne ADDITIONAL EXCLUSION This Endorsement does not insure against loss or damage caused by or resulting from delay loss of market or business interruption Form 3107 Factory Mutual Service Bureau PAGE 1 OF 2 Edition March 1984 Norwood Massachusetts 0 AUTOMATIC COVERAGE QIf this block is checked the coverage provided by this Endorsement is extended to cover property Insured under this Policy by virtue of any Automatic Coverage Endorsement attached hereto subject to the Limits of Liability set forth in the Automatic Coverage Endorsement FLOATER COVERAGE If this block is' checked the coverage provided by this Endorsement is extended to cover property insured under this Policy by virtue of any Floater Coverage subject to the Limits of Liability applicable to Floater Coverage Form 3300 PAGE 2 OF 2 Edition March 1984 Factory Muluai Service Bureau Norwood Massnrhucetts PRINTED IN U " EARTH MOVEMENT ENDORSEMENT In consideration of additional premium the Policy to which this Endorsement is attached is extended by deleting the following exclusion No 9 in GROUP A of Part C EXCLUSIONS 9 Any earth movement including but not limited to earthquake landslide or subsidence whether or not caused by resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage LIMITS OF LIABILITY This Company shall not be liable under the terms of this Endorsement for more than the limit specified elsewhere in this Policy for each single earth movement nor for more than the limit specified elsewhere in this Policy during any twelve consecutive months If this Policy includes Time Element Coverage or Automatic Coverage or Floater Coverage the foregoing limits shall be the maximum amount collectible under this Policy For the purposes of this Endorsement the term single earthquake includes all shocks occurring within a continuous 72 hour period DEDUCTIBLE CLAUSES APPLICABLE TO COVERAGE IN ALASKA CALIFORNIA HAWAII AND PUERTO RICO 1 PROPERTY DAMAGE In case of claim for loss or damage under this Endorsement the Company shall not be liable as a result of a single earthquake or other covered occurrence in Alaska California Hawaii or Puerto Rico unless the Insured sustains a loss in excess of per cent ( %) of the value of the property (including foundations) insured under this Endorsement and then only for its share of such excess If the insurance provided by this Endorsement covers more than one location this deductible percentage shall apply separately at each location TIME ELEMENT COVERAGES If this Policy is endorsed to include Time Element coverage the Company shall not be liable under such Endorsement(s) as a result of a single earthquake or other covered occurrence in Alaska California Hawaii or Puerto Rico for more than the amount by which such Time Element loss shall exceed per cent ( %) of the full annual Time Element value which would have been earned in the twelve month period following the occurrence by use of the facilities at the location where the physical damage occurred and then only for its share of such excess If the insurance provided by this Endorsement covers more than one location this deductible percentage shall apply separately to each such location ADDITIONAL EXCLUSIONS 1 This Endorsement does not apply to property in transit This Endorsement does not insure against loss or damage caused by or resulting from flood waters waves tide or tidal water or by the rising overflowing or breaking of boundaries of natural or man made bodies of water or spray from any of the foregoing all regardless of cause Unless otherwise indicated below thiG Endorsement does not apply to any property covered underthis Policy by virtue of any Automatic or Floater Coverages attached to this Policy Form 3300 Factory Mutual Service Bureau FACT t OF 2 Edition March 1984 Norwood Massachusetts FLOOD ENDORSEMENT In consideration of additional premium the Policy to which this Endorsement is attached is extended by deleting the fllowmg exclusion No 8 in GROUP A of Part C EXCLUSIONS 8 Flood waters, waves tide or tidal water the release of water the rising overflowing or breaking of boundaries of natural or man made bodies of water orthe spray from any of the foregoing, whether or not caused by resulting from or contributed to by loss or damage of the type insured under this Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage LIMITS OF LIABILITY This Company shall not be liable under the terms of this Endorsement for more than $ each single occurrence nor for more than $ during any twelve consecutive months If this Policy includes Time Element Coverage or Automatic Coverage or Floater Coverage the foregoing limit shall belthe maximum amount collectible under this Policy ADDITIONAL EXCLUSIONS 1 This Endorsement does not apply to property in transit 2 Unless otherwise indicated below, this Endorsement does not apply to any property covered under this Policy by virtue of any Automatic Coverage or Floater Endorsement(s) attached to this Policy AUTOMATIC COVERAGE If this block is checked the coverage provided by this Endorsement is extended to cover property insured Under this Policy by virtue of any Automatic Coverage Endorsement attached hereto subject to the Limits of Liability set forth in the Automatic Coverage Endorsement FLOATER COVERAGE F] If this block is checked the coverage provided by this Endorsement is extended to cover property insured under this Policy by virtue of any Floater Coverage subject to the Limits of Liability applicable to Floater Coverage Form 3301 Factory Mutual Se Ice Bureau PAGE t OF 1 Edition March 1984 Norwood Meesec uBetts PRINTED Mfg nm BOILER AND MACHINERY EXCLUSION The Policy to which this Endorsement is attached is amended as follows ADDITIONAL EXCLUSIONS 1 This Policy does not insure against loss or damage caused by or resulting from explosion in or of steam boilers steam turbines gas turbines steam engines and steam pipes Interconnecting any of the foregoing equipment owned operated or controlled by the Insured however liability is assumed for loss or damage resulting from an explosion A of gases or fuel within the furnace of a boiler or within the flues or passages therefrom B involving the smelt bed within the furnace of a boiler of thg chemical recovery type C outside of any equipment 2 This Policy does not Insure against loss or damage caused by or resulting from rupture bursting cracking bulging burning or change of temperature of steam boilers steam turbines gas turbines steam engines and pressure vessels or piping or apparatus attached to any of the foregoing equipment owned operated or controlled by the Insured however liability is assumed for loss or damage resulting from accidental discharge escape leakage backup oroverflowto the open of any material from confinement within piping plumbingsystems tanks or equipment except from that equipment identified in paragraph 1 above locatedonthe described premises 3 This Policy does not insure against mechanical or electrical breakdown (except by direct lightning damage) of any equipment unless physical damage not excluded results in which event this Policy shall cover only such resulting damage Form 3500 Factory Mutual Seance Bureau PAGE 1 OF 1 Edition January 1986 Norwood Massachusetts PRINTED IN U 5 A bATTACHMENT B ARTHUR J GALLAGHER & CO -DALLAS oS August 13, 1987 City of Denton Re Insurance Proposal/Renewals Sirs Essentially our renewal is on an as is basis with carriers, terms, and conditions remaining virtually the same You will note some changes in the retention, loss fund and exposures As always, we welcome your questions, and we look forward to having the opportunity to discuss our program and all available options in depth Respectfully, _ - �% .ril� e4rw%f/ 7rM Leonard Account Executive JL me Enclosure 1222' Ivleiit Drive Suite 670 Dallas Tex i� 75 )-1 214 991 3700 • TWX 9I0 8bl 4321 TLFX 214-991-4061 An i HUR J GALLAGHER & CO Airport Liability Policy Global Aviation Insurance Cities Exposure $ 1, 000, 00 C S L Limit (Contingent Liability) $ 8, 000 Premium Southeastern Aviation (Texas), Inc Limit - $1,000,000 C S L for premises - Products Liability $ 50,000 any one aircraft $ 150,000 anyone occurrence Ground Hangar Keepers' Liability Annual Premium - $15,000 For $5,000,000 - $24,000 ,a RR WRRIR of PROT(CTIaN ATTACHMENT C EMPI.OYBRS CaSUaLTY company EMPL,OYeRS NaT1on8L insURanCe Company POST OFFICE BOX 2755 1 DALLAS TEXAS 75221 August 12, 1987 Mr Harlan Jefferson, Risk Manager City of Denton 901-B Texas St Denton, Texas 76201 Re City of Denton — W '-M. Cl1 PI Comprehensive Insurance Proposal Dear Harlan We are pleased to submit the attached proposal for the City's Property and Casualty Coverage You will notice that the coverage for your Airport is not included Your current carrier is our best market for this coverage We sent applications to several other markets but received no quotations If we are awarded the other coverages, we can have your current policy trans- ferred to our company with a letter of record from the City Also we have not included a quotation for the Money and Securities & Employee Fidelity We use the Fidelity and Deposit Company of Maryland for this coverage Although we were unable to obtain a quotation at this time because of lack of some information and the time factor, this coverage is available at a minimal cost The physical damage coverage on your vehicles still needs to be worked out We have several options to choose from but none of them were exactly what your bid specifications called for so we felt that it would be better to discuss this coverage further with you before quoting it We feel we have an excellent program and if you should have any questions about our quote please call me at (214)760-6616 Yours truly, N ^ o _. _ ' Q _ 0 0J.401'�`all Carolyn Osborn, CPCU, AAI Risk Management Services CO/jw EMPLOYERS INSURANCE OF TEXAS Tans EmpbYOM Insurance Association I Employers CmualtY Cpmpsrry Employer, National Insurenu CAnIRinY Engloyns National Life Insurance Comparo CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PLAN Program zx8q �d8 r;Pn -° �Yerr l�enBa ion ;1`a"°id'ErInjU-rgtic'e'Pund a 2 ti faaces Estimated Annual Standard Premium - $828,978 Contracted Services 1 Claims Handling Services 2 Administrative Services 3 Safety Engineering Services 4 Catastrophe Reinsurance (To indemnify the Fund Member of losses for any one accident or occurrence in excess of a pre- determined retention by the Member up to a maximum limit of $10,000,000 per accident or occurrence ) at $200,000 Retention Per Occurrence at $250,000 Retention Per Occurrence at $300,000 Retention Per Occurrence 5 Aggregate Stop Loss Reinsurance @ 100% (To stop aggregate losses from 10-1-87 through 10-1-89 at 100% of aggregate standard premium over same period up to a maximum liability of $5,000,000 ) Aggregate Stop Loss Reinsurance @ 125% of aggregate standard premium from 10-1-87 through 10-1-89 $-13-g'1 Cost 7 5% of paid losses 3 07 of first $100,000 of Stnd Prem 1 5% of next $400,000 of Stnd Prem 0 757 of Stnd Prem over $500,000 Not to Exceed Overall Charge of $25,000 1 57 of Standard Premium 4 3% of Standard Premium 3 77 of Standard Premium 3 37 of Standard Premium 2 5% of Standard Premium 1 67 of Standard Premium CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PROPOSAL Program Texas Political Subdivision Workers' Compensation Joint Insurance Fund Estimated Standard Premium -- $828,978 Contracted Services Annual Cost 1 Claims Handling Services 7 57 of paid losses 2 Administrative Services $11,467 3 Safety Engineering Services 12,435 4 Catastrophe Reinsurance @ $200,000 Retention 35,646 Per Occurrence @ $250,000 Retention 30,672 Per Occurrence @ $300,000 Retention 27,356 Per Occurrence 5 Aggregate Stop Loss Reinsurance 20,724 @ 100% of aggregate standard premium from 10-1-87 through 10-1-09 @ 125% of aggregate standard 13,264 premium from 10-1-87 through 10-1-89 Note Claims Handling Services and Safety Engineering Services will be provided by Employers Insurance Of Texas out of their Sherman District office Reinsurance will be provided by Employers Casualty Company CITY OF DENTON CASH FLOW PLAN COST ILLUSTRATION Standard Premium $828,978 Loss Ratio 30% 407 507 1 Losses 248,693 331,591 414,489 2 Claims Handling Expense 18,652 24,869 31,087 3 Administration Expense 11,467 11,467 11,467 4 Safety Engineering 12,435 12,435 12,435 5 Catastrophe Reinsurance (Up to $10,000,000 Maximum Limit) @ $200,000 retention 35,646 35,646 35,646 per occurrence @ $250,000 retention per occurrence 30,672 30,672 30,672 @ $300,000 retention 27,356 27,356 27,356 per occurrence 6 Aggregate Stop Loss Reinsurance 20,724 20,724 20,724 @ 100% TOTAL ULTIMATE COST @ $200,000 $347,617 436,732 525,848 RETENTION TOTAL ULTIMATE COST @ $250,000 342,643 431,758 520,874 RETENTION TOTAL ULTIMATE COST @ $300,000 $339,327 428,442 517,558 RETENTION TEXAS POLITICAL SUBDIVISIONS WORKERS COMPENSATION JOINT INSURANCE FUND 'R'_fvl(UM WORKSHEET FOR Citv of Denton NAME No Ertimeted Menu al Manual Classification of Operations Rates Effective 1-1-87 Fund Year 101 66/ 101 87 of Emp Oreas Payrolls Rate for S700 Payroll Premium 19,444 4 50 875 7423 AimonOperations 135, 608 1 80 2441 8831 Animal Shelters 271,720 4 80 13 043 S391 Automobile Garage 14 7380 Bookmobile Drivers7 89,864 5 54 4,978 9015 Buildingoceretlons 9 78 9220 cemetery operations 36 15 519 e610 Clencel -Omce ,310,836 1 40 8720 County Appraisal 01% 2, 974, 668 1 1 96 1 5$ 303 7539 Electric Distribution 21940,168 1 2 49 1 73,210 7704 Firemen 2 03 7602 Gas Distribution 4 88 8227 Maaw Ement Ma quipl tenon 1 50 9833 Hospital ProNuionals 8 23 9040 Hospitals - All Othersl 4 .39 9033 Mousing Authority Op rations 5 93 4519 Insect Exto"in wn 5 0, 7 4 44 2,291 8838 Librones end Museum 75 8742 Mertengen Social Wo en ate Officials) 9409 Municipal Employees Not Otherwise Clsspfred) 13.64 4,55 9060 Municipal Galt Course 372,452 1 4 17 72 7520 Municipal Waterworks Operation 1,000,308 5.0350 1 9102 Parks and Recreation 5-01 7418 Pilots 2,721 444 1 5.74 1 56,211 7720 Policemen 5190 Radio and Electrical 1 stallat1o111 6.17 2 9403 Refuse Collection an Disposal - Conventional 414,668 5 .947 2 9404 Refuse Collection an Disposal - Fully Containented 309,148 110,392 9 31 10,277 7590 Refuse Reduction 1 188,29 13.51 25,439 6306 Sower Construction 621,508 3.57 1 22 188 7680 Sewage Treatment PI nt 624.852 74,795 5508 Street and Rood Repair _12.69 9402 street and Sewer ale ning 9156 Thassert Plavan 47 9164 Theaters All Other rnploycet 3724 Traffic Signals end C ntrols 1 146,928 7382 Transit Authority 8305 Transit Geroge! Ill water Mani Conn tion 727,968 W11 8288 Zooa Animal Mandl rs 7 Buildin Ins actors & En i ear 2 Warehouse 0 !rations 1 TOTAL MANUAL PREMIUM 828,978 •Any, refirence to on insurance qrm net onllnullY .pert of cell Inwnnce shell to doomed to be for ocrevenience only and it not to to construed as 2 YOUR EXPERIENCE MODIFIER 1.0 contrary to the self insurance concept 3 LINE 1 X FACTOR ON LINE 2 - STANDARD PREM 828,978 4 FUND DISCOUNT FACTOR Use gross payroll on all enwloyea only the straight time For hourly employees that are paid overtime use 5 LINE 3 X FACTOR ON LINE 4 - PAYABLE PREM rate times all hours worked it is our Intent tq rro-,wM Voluntary Compensation for ❑ elected officials Estimaled Premium (Line 51 Payable 12 equal monthly installments 11 Line 5 ❑ vol firemen police reserves Sri fnetruepons Is Ice than $5 000 the full payable premium is payable in four equal queneriv Installments certify that the abotje payroll a our year ending 10 1 97 DATA atanao BYLAWS OF TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND 1 Board of Trustees The Texas Political Subdivisions Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") shall be governed by a Board of Trustees The Board shall operate the Fund on behalf of the Fund Members pursuant to bylaws and shall be composed of the members appointed in the manner hereinafter set out and shall have the further functions, powers and duties as herein set forth I Original Board The original Board of Trustees shall consist of nine (9) members who shall be appointed by the political subdivisions originating the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund at the same time the Fund is created The original Board shall serve for a period of sixty (60) days or until their successors are qualified A permanent Board of Trustees, as herein described, shall be elected by the Fund Members at an election set by the original Board, to begin serving terms on December 1, 1983 3 Permanent Board Qualifications The majority of members of the permanent Board must be either an employee or elected official of a political subdivision within the State of Texas which is a Member of the Fund Any Board member that ceases to be an employee or elected official of a Member of the Fund shall automatically be disqualified to serve as a member of the Board, and his position shall become vacant 4 Number and Term of Permanent Board The permanent Board of Trustees shall consist of nine (9) members elected by the Fund Members Each member of the permanent Board shall be elected to occupy a designated place Those initially occupying Places Nos 1, 2, and 3, shall be originally elected for a term to expire on December 31, 1984, or until their successors are qualified Those initially occupying Places 4, 5, an6 6, shall be originally elected for a term to expire on December 31, 1985, or until their successors are qualified Those initially occupying Places 7, 8, and 9 shall be originally elected for a ,term to expire on December 31, 1986, or until their successors are qualified After the initial election of the permanent Board, the Fund shall conduct a regular election annually by means of a mail ballot involving all Fund members Each election after the initial election shall be for a threelyear term No person shall serve for more than two (2) consecutive threetyear terms At the time of the election, the Place to be filled shall be designated When a Board Member vacancy occurs due to death, resignation, dis- qualification or inability to act, the Board shall appoint a replacement to ser4 until the next regular election At that election, the Fund Members shall elect the permanent replacement who will serve the remaining period in the term of that designated Place 2 5 Election of Officers, Meetings Within fifteen (15) days after the initial election of the members of the permanent Board of Trustees, and annually thereafter within ninety (90) days after the regular election of Trustees on a specific date set by the Board, the Board shall hold a meeting for the purpose of electing officers for the ensuing year, and the transaction of such other business that may cane before it. The Board shall hold at least three meetings annually and such other meetings as may be necessary for the transaction of its general business, when called by the Chairman or requested in writing by any three (3) Board members The meetings shall be held at any convenient place in the State of Texas according to proper resolution of the Board designating same 0 Officers Quorum The Board shall organize by electing one of its members as Chairman, and another of its members as Vice -Chairman The Board shall designate a Secretary to keep the minutes and records of the Board, who may or may not be a member of the Board itself A majority of members of the Board shall constitute a quorum Concurrence of a majority of the Board shall be necessary for any official action taken by the Board 7 Members Compensation, Reimbursement The duly elected, qualified and acting members of either the original or permanent Board shalt serve without compensation, but shall be entitled 3 to reimbursement of actual expenses incurred in the performance of their official duties upon the approval of such expenses by the Board 0 Powers and Duties The Board, in addition to other powers and duties herein conferred and imposed or authorized by law, shall have the following powers and duties to -wit A, The Board may contract for such professional services as it may deem necessary and shall fix the time, manner and payment therefor B. It shall be authorized to contract with any oualified organization to perform any of the functions necessary for the carrying out of a self -insured workers' compensation pool arrangement, including reinsurance, claims, administration, safety engineering services, administrative services and any and all other services that the Board shall deem expedient for the proper servicing of those Fund Members who use the services of the Fund c It shall make provision for proper accounting and reporting procedures for each of the Fund Members so that they shalt be apprised at all times of the nature of the claims arising within their jurisdiction, the manner in which these claims are being handled and the impact of the same upon the Fund D. It shall provide for annual audit of the books of the Fund to be supplied to each of the Fund Members as may be requested E. It shall carry out all of the duties necessary for the proper operation and administration of the Fund on behalf of the Fund Members and to that end shall have all of the powers necessary 4 and desirable for the effective administration of the affairs of the Fund F It shall arrange for the investing of the monies of the Fund so as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the Fund Members It shall provide for the banking of the monies of the Fund and the proper security of any and all investments G The Chairman of the Board shall appoint an Executive Committee of the Board to handle the affairs of the Board in between the regular Board meetings or any of the called Board meetings, with such functions as may be designated to the Executive Committee by the Board by resolution properly adopted H It shall have the authority to terminate membership of any Fund Member that fails to abide by the reasonable requirements of the Board concerning payment of dues and contributions, installation of safety requirements, cooperation with the claims agents or attorneys representing the Fund or any of the Fund Members, or any other action that may be detrimental to the fiscal soundness or efficiency of the Fund on behalf of its Fund Members I It shall develop and prepare a contract to be signed by each of the Fund Members as they Join the Fund and shall determine the amount of reinsurance that shall be purchased by the Fund J It may require the securing of a fidelity bond upon each and all of the employees of the Board or upon other persons charged with the duty of handling any of the monies or investments of the Fund K It may hire attorneys, accountants or such other professional persons that it may deem necessary for the proper protection of 5 the Fund These persons shall be paid as provided in the contract for hire as executed by the Board L It shall provide for a suitable seal with the following letters upon its face "TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND " The seal shall be used for the authentication of legal documents, contracts and other instruments indicating the official action of the Board M The Board shall have the general power to make and enter into all contracts, leases and agreements necessary or convenient to carry out any of the powers granted under these bylaws or by any other law All such contracts, leases and agreements or other legal documents herein authorized shall be approved by resolution of the Board and shall be executed by those individuals designated in such resolution In the absence of such designation they shall be executed by the Chairman or Vice Chairman and attested by the Secretary of the Board a Fund Members Any political subdivision within the State of Texas is eligible to became a member of the Fund Each of the Fund Members shall be required to pay to the Fund the contribution as provided by the contract between the Fund and the Fund Member Failure to pay the contribution as and when due shall render the membership of the Fund Member subject to termination by action of the Board For the proper protection of the Fund each Fund Member shall be required to make such reasonable safety regulations and take such safety precautions as may be required by the contractor representing the Fund In the event that there is any disagreement between the Fund Member and the contractor, the Fund Member shall have the right to appeal to the Board and a decision of the Board shall be final U 1n Fund Year The fiscal or fund year for the Fund shall he from the 1st day of October of each year and ending on the 30th day of September of the succeeding year 11 Withdrawal From Membership Any Fund Member may withdraw from the Fund at the end of any fund year by giving at least sixty (60) days notice in writing to the Board of its desire to so withdraw The Fund Member withdrawing may not withdraw the reserves on any of the claims that are being paid from the Fund or will be required to be repaid from the Fund The Fund shall continue the servicing of any claim pending after the withdrawal of the Fund Member unless the Fund Member specifically assumes the liability and makes provision to indemnify the Fund from loss by taking over the servicing of the claim 12 Amendments to Bylaws These Bylaws may be amended by the Board of Trustees of the Fund after notice of the proposed amendment has been mailed to the members of the Board of Trustees at least ten (10) days prior to the day of the meeting to consider same The Board of the Fund shall recommend such changes as it deems necessary or desirable from time to time 7 TEXAS POLITICAL JOINT SUBDIVISIONS WORKERS' COMPENSATION UND (Flexible Cost Plus/Cash Flow Plan For Large Political Subdivisions) INTEPLOCAL AGREEMENT This Contract and Interlocal Agreement entered into by and between the Texas Political Subdivisions Workers Compensation Joint Insurance Fund (hereinaftero as Fund") and cal "Fund Member") for the purpose of providing the statutory benefits prescribed by Article 8309h of the Texas Workers' Compensation Act for employees of political subdivisions. WITNESSETH The undersigned Fund Member in consideration of the adoption of a TplanexasoStatutesnstoaprovideauthorized in Article Workers' Compensation8benefitsratnasAnnotated minimum cost and in further consideration of other political subdivisions executing similar interlocal agreements does hereby agree to become a self -insured workers' compensation employer by becoming one of the members of the Fund. The conditions of membership agreed upon by and between the parties are as follows 1 Definition of terns used in this Interlocal Agreement a. Polit"Board" - refers to ical Subdivisions eWorkers' Compensation JBoard of Trustees of ointTexas Insurance Fund. b, "Pemiuinrsomemparts ofothisbInterlocalre used Agreementter"haneably Premium" Is used to identify the rating formulas established by the State Board of Insurance, which are used as guidelines to establish Fund Members' cash contributions to the Fund. Any reference at any time in this Interlocal Agreement to an insurance term not ordinarily a part of self-insurance shall be deemed for convenience only and is not to be construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretation such as but not limited to the reference to "reinsurance". d�"Manual"Servicing Ratesntrether'basicexas Employers' workers' compensation ce rates Association rates applicable to each classification of employees promulgated by the State Board of Insurance. e, "Manual inContribution" hadeterminedremium by applying the manualrate ofeachclssificationod premiumpbefore anythat modifiersclassification discountstare applied "Exp rience difier" - hat actor ts f. FundeMember'soindividualtlossfexperiencehandfisce based on the State Board of Insurance experience rating plan g. "Standard Premium or Contribution"- the amount er othat is determined by applying the Fund Member to the Fund Member's manual premium While this premium figure under the Fund Member's self -insured "Cost Plus" plan does not reflect payments or charges made, it does serve as a desirable benchmark and allows the Fund Member to compare its results with other entities of comparable size. h. "Fund Year" - October 1 through September 30 2. This Contract shall commence at 12 01 a.m on the date shown as "effective date" found on the signatory page of this contract, and shall remain in full force and effect until terminated as hereinafter provided. This Contract may be terminated by mutual consent or by sixty (60) days prior written notice by certified mail of such termination by either party 3. Annually, each Fund Member Fund, itsestimated shall tpayrollFund for eachPremium Worksheet form supplied bythe classification of employees. The rates established by the State Board of Insurance shall be applied to arrive at a manual premium If the Fund Member has established, through experience, a modifier, then the experience modification of that Fund Member shall be used to arrive at the standard premium In the absence of an earned experience modification for the Fund Member, the manual rate as established by the State Board of Insurance will be used as a guide to produce a manual, as well as a standard, contribution The newly enrolling Fund Member who has not previously been a member of this Fund or the Fund Member who has not previously operated under this "Cost Plus" plan, agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, an initial deposit of one (1) month's estimated paid losses plus 1/12 of the administrative service charge, catastrophic excess of loss excess insurance/reinsurance charge, safetyaengineeringfloss chargee(ifsapplicable)/asisetrance forthcinrge, and Exhihithe A attached hereto. On or before the beginning of the second month after toemakeeaniidentical fpayment nasrdetermined above local Agreement thOnFordbefore ragrees incpton date this the beginning of the third month after the inception date of this Interlocal Agreement, the Fund Member shall pay an amount equal to the actual paid losses of the first month times (x) the loss conversion factor as set forth in Exhibit A, for claims administration services plus 1/12 of the annual administrative service charge, catastrophic excess of loss excess insurance/reinsurance charge, aggregate excess of loss excess insurance/ reinsurance charge, and safety engineering charge (if applicable) On or before the beginning of the fourth month of this Interlocal Agreement, a similar payment based upon the actual paid losses of the second month shall everyto the Fund with month thereaftersubasedent upononthly actualppaidnts to be paid be paid losses 2 The Fund Member who has previously been a member of this Fund prior to the inception date of this Interlocal Agreement and has operated under this "Cost Plus" plan agrees to pay the Fund for those services described in this Agreement and at the charges listed in Exhibit A attached hereto. Each month's billing will include 1/12 of the annual charge for administrative services, safety engineering, catastrophic exceloss excess Exhiaggrebit excess Aattached hereto Also included in this billing will be an amount equal to the actual paid losses of the Fund Member times (x) the loss conversion factor as set forth in Exhibit A as the claims administration charge The actual paid losses of the Fund Member are those losses paid by the Fud ton then billing months Fund TheseMember paymentsthe are duemonth atwhich the begiinnni gmonths thprior behalf of e month, that is, for example, the December billing is due at the Servicing Contractor's office on December 1 It is further agreed that those charges (administrative services, catastrophic excess of loss excess insurance/reinsurance, aggregate excess of loss excess insurance/reinsurance, and safety engineering) that are based on standard contribution will be adjustable at the end of each Fund Year, based on audited standard premium which is calculated using actual payrolls, manual rates, and experience modifiers. At the end of each Fund Year there will be submitted by the Fund Member actual payrollsed on the payrollooks of recordsthe of anydFundber he Fund reserves Member It is further agreed that the Fund Member will maintain a loss deposit with the Fund equal to two months estimated paid losses and this deposit will be adjustable periodically to accurately reflect realistic ronthly loss payments After termination of this Agreement, the Fund will continue to handle claims with an accident date occurring durino the term of this Agreement until such claims are disposed of After termination of this alleclaims handledent, the dby therFundlare disposedthe deach of, onlydthee onthlymonth, claimsuntil administration charge calculated as described above, and the monthly reimbursement of actual claims losses paid on behalf of the Fund Member as determined above In the event that the Fund Member fails or refuses to make the payments of charges as herein provided, the Fund reserves the right to terminate such Fund Member by giving ten (10) days written notice by certified mail and to collect any and all payments that are earned pro rata for the period preceding contract termination 4. The Fund has obtained specific excess of loss excess insurance/ reinsuane behalfrofcitsnFundgMembers.regate The excess ess of sinsurance/reinsurainsurance/reinsurance excess insurance/reinsurance thishprotection, itslelectioneshall bemIndicatedton ExhibitmAer elects 5. The Fund has contracted with the Servicing Contractor to supply safety engineering services to the Fund Member to assist them in following a plan of loss control that may result in reduced losses. The Servicing Contractor shall provide all of the services as provided in the service contract entered into by and between the Servicing Contractor and the Fund or as may be modified for the individual Fund Member The Fund Member agrees that it will cooperate in instituting any and all reasonable safety regulations that may be recommended for the purpose of eliminating or minimizing hazards that would contribute to workers' compensation losses In the event that the recommendations submitted by the Servicing Contractor on behalf of the Fund seem unreasonable, the Fund Member has a right to appeal to the Board of Trustees The Board shall hear the objections of the Fund Member at its next regularly scheduled meeting and its decision will be final and binding on all parties. Fund Member enIfntheing Fundservices Member electsprovided thisare, optional service, Its election shall be indicated on Exhibit A 6. The Fund Member agrees that it will appoint a workers' compensation coordinatoanits Srvicin Contractor rshall of enot benrequired t head ato�contact and aany hother dindividualeexceptg this one person Any notice to or any agreements with the workers' compensation coordinator shall be binding upon the Fund Member The Fund time Memberge the oorintofrom me to the Fund 7. The Fund, through the Servicinq Contractor employed by the Fund, agrees to handle any and all claims after notice of injury has been given, to prepare all required Industrial Accident Board forms, and provide a defense The Fund Member hereby appoints the Servicing Contractor as its agent to act in all matters pertaining to processing and handling of workers' compensation claims and shall cooperate fully in supplying any information needed or helpful in such defense They shall carry on all negotiations with the injured employee and his attorney at the prehearing conference and negotiate within authority previously granted by the Fund If a personal appearance by a representative or a co- the1F nd Member. The,ServicingnContractor wPllaretainwand supervise legal counsel on behalf of and at the expense of the Fund necessary for the prosecution of any litigation 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 an Industrial Accident Board's final ruling and decision However, any Fund Member shall have the righh the involving one of their emploees, the Servicing Contractoro consult t case Board shall hear the objections of the Fund Member at its next regularly scheduled meeting and their decision will be final and binding on all parties Any suit brouqht or defended by the Servicing Contractor and the Fund shall be name of the allical reportsdandsion filingsorequirednbyntany he Workers' Compensation Law and the Industrial Accident Board of any employ r will be the responsibility of the Fund Member. It is further unders ood that this agreement does not cover discrimination suits under Articli 8307c. There shall be supplied periodically to each Fund Member a comp ter printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year B; The Fund Member acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any amendments thereto. 9� The Fund agrees that all Fund transactions will be annually audited by a nationally recognized, certified public accounting firm 10. The Fund Member agrees to pay any Industrial Accident Board maintenance tax that t theI imposed nternaland RevenueFund Serviceagrees to file the necessary tax forms wi 1i1 Any party hereto paying for the performance of governmental functions or services shall make payments therefor from current revenues available to the paying party. 12. The Fund further agrees to provide a complete range of admini- strative services to include, by way of example, but not of limitation, the following a. Statement of claims printouts rendered monthly and keyed by designated functions or departments. b. Monthly billing statements for reimbursement of current payments plus contracted fees c. Semi-annual printouts of all claims including prior Fund Years indicating current incurred loss valuation. d Maintenance of loss and payroll statistics for determination of the Fund Member's experience modifier 13. The Fund agrees to provide Employers Liability Insurance coverage (commonly called coverage 8), in accordance with and to the same extent as, the provisions of Part Two -Employers Liability Insurance of the standard Workers Compensation and Employers Liability Insurance Policy toryapproved EndorTexas itState Insurance, PartcTwo,no the Texas6enda except as follows a, In Part Two, paragraph A, 2, the state or territory listed is to be Texas. b. In Part Two, paragraph G, the limits of liability of this coverage are to be as follows Bodily Injury by Accident $100,000 each accident Bodily Injury by Disease $1001,000 each Disease $500,000 Policy Bodily C. It is understood that this Employer Liability coverage does not cover discrimination suits under Article 8307c d ReferenceAgreementsshall to winclude Employers ion" in iocal Liability Coverage unless the context clearly shows otherwise. All other provisions of this Interlocal Agreement shall apply to this Employers Liability Coverage unless the context clearly shows otherwise. e LThe Fund iabilityaCoverage at theeat no followingadditional charge Employers limits Bodily Injury by Accident $100,000 each accident BodilBodily Injury by Disease Disease $500,000 each accident 000 Policy limit If the Fund Member elects higher limits than this, the Fund Member agrees to pay an additional charge for the higher limits at a mutually agreeable rate The higher limits and corresponding charge, if so elected, shall be indicated on Exhibit A. 14. No accidental errors or omissions upon the part of either party shall relieve the other party of its responsibilities under this Agreement, provided such errors or omissions are rectified as soon after discovery as possible The Fund shall not be held accountable for any increased cost or expense to the Fund Member under any contention that a claim, safety engineering, or an administrative service could have been handled differently except that the Fund may be held accountable for any deliberate willful respect toa ocarry specific matterreasonable instructions of the Fund Member with 15. The Fund Member will he solely responsible for future benefits payable and for funding its net reserve The Fund Member agrees to hold the Fund harmless from any and all claims (including attorney fees) that may be asserted against the Fund for the non -payments of any claim due to the failure of the Fund Member to maintain adequate reserves for the payment of claims. IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto duly authorized this day of , Contract Number TEXAS POLITICAL SUBDIVISIONS WOPKERS' COMPENSATION JOINT INSURANCE FUND BY Effective Date Fund Secretary Dallas, Texas FOR Fund Member Name BY -Authorized ofc a Signature & Title The Workers' Compensation Coordinator for the Fund Member is COORDINATOR NAME FUND MEMBER NAME ADDRESS CITY ZIP_ --- TELEPHONE Texas SUPPLEMENT TO INTERLOCAL AGREEMENT TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND In consideration of the Fund Members' request for payment of additional pay such benefits, thenInterlocalfurther oAgreement is amended nsideration of the u,agreement by adding to thereto the following applicable coverages Volunteers - Firemen, Policemen and Emergency Medical Personnel - If any person within these groups of employees hereinafter described and for which a payroll classification is checked below, shall sustain Injury. course and scope of their official volunteer duties, the Fund will payon behlf of the Fund Member including death resulting therefrom. while acting within the hlmedical compensation payments providedundertheTexas Workers' Compensation um Compensation Law. Other Volunteers - Inside and Outside - If the Fund Member specifi- cally names volunteers other than those in catagories set out above, registers such names with the Fund, and a payroll classification is checked below for these groups of employees hereinafter described. the Fund will pay on behalf of the Fund Member the full medical benefits and the minimum compensation payments provided under the Texas Workers' Compensation law for injury, including death resulting therefrom, sustained by such persons while acting within the course and scope of their official volunteer duties. Elected Officials - If a resolution of the governing body has been adopted providing coverage for elected officials as required by law, and a payroll acting within sthe icourse and cation is csc pedofetheirlow sofficialuch tduties,ed cshallials wbele covered by the Interlocal Agreement as any other employee of the political subdivision. The Fund Member agrees to pay premium for the payroll classifications checked below Description of Group of Employees Volunteer Firemen _ Volunteer Policemen Volunteer EM Personnel Other Volunteers -Inside ' Other Volunteers -Outside —' Elected Officials The parties to this agreement do applicable to themselves any provision Lew not already in force and effect as Code 7704 Code 7720 Code 7720 Code 8742 Code 3724 Code 8742 not by its use intend to make of the Texas Workers' Compensation to them This agreement shall be subject to all the terms, provisions and conditions of the Interlocal Agreement, and nothing herein contained shall vary, alter or extend any term,iprovision or condition of the Interlocal Agreement except as herein specifically stated. This agreement shall be effective on 19 . Contract um er Fund Member By Si gnature H TEXAS POLITICAL SUBDIVISION WORKERS' COMPENSATION JOINT INSURANCE FUND By TPS un ecretary -2- II III city of Denton Liability Program Third Party Claims Administrative Services Proposal Preface The Employers insurance of Texas Group, by utilizing an affiliated company named "Employers Claime Adjustment Services, Inc ", wishes to offer the City of Denton a self -funded liability program with third party liability claims investigation, adjustment and management services Administrative service Period The term of the services offered in this proposal shall be from ®October 11,1907 - September 30, 1990 and annually thereafter Services To Be Provided A. Employers will provide claims investigation, management, administration, and settlement recommendation services to the CCit OOf Denton c(hereafter '*City") for the following coverage classifications 1 General Liability 2 Auto Liability 3 Police Professional Liability 4 Public Officials Liability B The city will report all claims falling within the coverage classifications mentioned in section III, A to Employers and Employers shall establish claim files to include claim codings, reserves, and record of payments for the reported claims C. Employers will investigate, adjust, make settlement recommendations and negotiate settlements on behalf of the city with the injured third parties or their duly assigned representative D The Employers settlement authority will not exceed the mutually agreed value reached between Employers and the City previous to settlement negotiations with the Injured third party or its duly assigned representative E The City 1e to establish a fund This Trust Account i city for payment of claims. Trust Account as a loss s to be funded by the rs not be iven the orit o Issue I draftseand/or lchecks in an payment Ofhclaimt sincurred by the City, 2 The City will be soley responsible for funding and will agree to maintain the lose fund at a level necessary to pay the claims and claims expenses incurred. 3 All cost in connection with establishing the Trust Account and with maintaining the lose fund will be paid by the City 4 The cost of printing checks or check requisitions, administration and account reconciliation of the Trust Accounts loss fund will be the responsibility of the City. F This proposal dove not obligate Employers to providing the City with safety and loss control services Upon the request of the City, Employers will offer these services on an annualized basis at the expense of the City 0 The City will notify Employers of any excess insurance applicable to any claim. it will be the City's responsibility to report claims which may fall within the excess carrier's level of coverage and to make any filings with the excess carrier as required H Employer$ will supply to the city during the term in thesewhich claim services a monthly loss reports Thesereportswillincluderendered, a detailed listing of all claims by areas or departments, by loss Employers payments,o®willenotobeeresponsdescription the oflosses failure of the City to notify Employers of any claims incident, payment or settlement, or other circumstance beyond Employers control Should the professional services be terminated for any reason, Employers will be under no further obligation to furnish the City with statistical reports, bligated I eanylCity y officialoyers will not be orepo is or documents prepare o docuents n behalf of the required by rederal. State or Local authorities in connection with claims handling. J Employers necessary for 1proper furnish forme claims administration tion K Employers will recommend and upon approval by the City retain and supervise legal counsel on behalf of the City for the defense of any litigation Any suit handled by Employers shall be in the name of the City L This proposal for professional services does not require Employers to provide services to the City for losses or occurrences prior to the proposed commencement date of service mentioned in Section II In no event will Employers have any liability or obligation for work performed or expense incurred by others M Appeal of any came will be solely at the discretion of the City N The claims files, excepting for the internal working Papers of Employers, will be deemed to be owned by the City Employers will release to the possession of the City all closed claim files o Employers will furnish all labor required to perform the services and will have full control and direction over the method and manner of supervision of their employees P Employers will be in agreement with the City appointing a coordinator and Employers working primarily through this individual for liaison purposes IV Compensation A Employers will be compensated by the City as invoiced Compensation will be payable within thirty (30) days of receipt of the invoice Fees shall be per Addendum I B Exclusions• The fee schedule contained in Addendum I does not included the following items 1 Attorney's fees, reporter's fees, bonds of any nature or type (including but not limited to appeal and supersedeas bonds) and court costs 2. Medical examinations and witness fees 3 official documents and transcripts 4 Photographs, official reports and appraisals 8 Expert's fees, subrogation investigations and sub rose investigation 6 Extraordinary travel expense, incurred at the city's request 7 Safety and loss control expense 8 Any extraordinary expense, and 9 Any other expense not expressly assumed by Employers The City will pay expenses of this nature from the City's lose fund and Employers will not be required to advance funds on behalf of the City for such expenses V Proposal Conditions Pricing for these third party claims administrative willthe City services are award itspremised Workers, C mpensationon the ucoverage totion the Texas politicalon which assumption prove to be incorrect , , current proposal charges for the third party services could not be honored and would require adjustment, This proposal is only an expression or outline of service intent and will be subject to the finalization of a contract agreed upon by both parties prior to the proposed commencement date of service Addendum I Fees And Expenses 1, $3s per hour for a field adjuster's service 2 $40 per hour for a home office adjuster's service 3 260 per mile auto charge 4 $3a for each claim file creation 6 Monthly computerized loss reports at $Boo annually for each line of coverage recorded A general Liability B Auto Liability C Police Professional Liability p Public Officials Liability 6 ndlnoeseparatesAdjustment administrativerfeess has specialcopying charge services including but not limited to, out-of-state adjusting firms reconstructiveand services, engineering studies, legaldefense, specialinvestiatorrsandwitnesspY transportation and lodging fees will be charged to the City at actual cost 7 Any sales tax, if applicable ** TOTAL PAGE 06 **