Loading...
1992-081ALL00207\900 3b ORD HANCE HO -o AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE ANINTERLOCAL 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 ls attached hereto and incorporated by reference herein ~ 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 ~ That this ordinance shall become effective imme- diately upon its passage and approval PASSED AND APPROVED this the ~-z~-'/day of ~, 1992 BOB CASTLEBERRY, MAY~ ~ / ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY Page 2 TEXAS POLITICAL SUBDIVISIONS ! 79 JOINT SELF INSURANCE FUNDS P O Box 2759 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 poht~cal subdivisions of this state (hereinafter referred to as "Fund Members") to form a joint self-insurance pool to be named the Texas Pohtacal Subdivisions Property/Casualty Joint Self-insurance Fund (hereinafter referred to as the "Fund") for the purpose of providing habflity, property and automobile physical damage msurance and/or self-insurance funding, reinsurance, clmms admmistrataon, loss control serwces, and other risk management services as needed for the "Fund Members" and their employees WITNESSETH The undersigned Fund Member, in accordance with the Interlocal Cooperauon Act, ArUcle 4413 (32C), T R C S and the lnterpretaUon thereof by the ARomey General of the State of Texas (Opimon ~VlW-347, May 29, 1981), and in conslderauon of other Fund Members execuUng like agreements, does hereby agree to become one of the Fund Members of tins self-insured pool The condmons of memberslup agreed upon by and between the parUes are as follows 1 DefuuUons of terms used in this Interlocal Agreement a Board Refers to the Board of Trustees of the Texas PohUcal Subdiwsions Property/Casualty $olnt Self-Insurance Fund b TPS Joint Seff-ln~urance Fund General Liability Coverage The general habthty coverage document of the Texas Poht~cal Subdivisions Property/Casualty $omt Self-Insurance Fund that seta forth in exact detail, the coverages, limits of serf-insurance, deductables, exclusions and condmons c TI~ Joint Seff-lrt~rance Fund Automobde Liability and Physical Damage CoVerage The automobile hab~hty and phy~cal damage coverage document of the Texas Poht~cal Subdivisions Property/Casualty lomt Self-Insurance Fund that sets~ forth m exact detad, the coverages, hrmts of self-insurance, deductibles, exclusmns and comht~ons d TPS Joint Serf-Imurance Fund Property Coverage The property coverage document of the Texas Polmcal SubdiVlaOnS Property/Casualty Joint Self-insurance Fund that sets fortii, in exact detail, the coverages, hnn~ of self-msuranee, deduct~blea, exclu~ons and condit~ons 'r~xm Politie~ 8ubdlvlsJona Workers Compensation Joint Inaur~nee Fund Texas Political Subdivisions ProlMrty/Cafualty Joint Self Insurance Fund e Servicing Contractor E~ployers Casualty Co~pan~ 2 Each fund Member may adopt e~ther the TPS $oint Self-Insurance Fund General Liability Covelage, TPS Joint Self-Insurance Fund Automobile Liability and Physical Damage Coverage or the TPS Joint Self-Insarance Fund Property Coverage self-lnsurance plans Whichever Self-Insurance Plan(s) the Fund Member accepts, the Fund Member agrees to adopt and accept the coverages, provisions, terms, condiuons, exclusions and hmitaUons of the applicable Self-Insurance Plan(s) Coverage Document(s) The hmits 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 deternune the Fund Member's obhgations to r~lmba~se the Fund if the Fund pays part or all of any deductible to effect settlement of a loss, clmm or suit The Fund Member should also examine the Deductible provisions to deternune the expenditures that the Fund may make that apply to and may exhaust any deductible selected 3 If the Fund Member adopts the TPS Joint Self-lnsurance Fund General Liability Coverage, or the TPS Joint Self-Insurance Fund Automobile Liability and Physical Damage Coverage self-insurance plan(s) which cover hablhty exposures, it is understood that by partic~paUng in this Self-Insurance pool, the Fund Member does not intend to waive any of the lmmumties that its officers or employees now possess The Fund Member recogmzes the Texas Tort Clmms Act and its hmltaUons to certain governmental functions as well as its monetary hmltaUons and that by executing this agreement does not agree to expand those hm~tataons 4 The Fund Member agrees to pay contributions to thc Fund based on a rating system appwved by the Board Contributions are payable to the Fund in advance of the fiscal year 5 Prior to each anmversary date following the inception of this agreement, the Fund Member shall subnut data as requested by the Fund in the form of a self-audit that may be used to determine the final contribution for the prewously ended coverage period Eased on the data subnutted, a final contribution adjustment may be necessary resulting in the payment of ad&Uonal contnbut~on 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 (REVI~ED 10~9/91) 2 181 6 Unencumbered fllnas of the Fund shah be av;ulable for excess contnbuuon refunds as determined by thc Board The Fund shall revest, In accordance with the Board approved gmdelmes, and all monies that are on deposit with the Fund, and the investment earnings from these pam,,,ular monies snail 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 deternunatlons will be made annually 7 The Fund shall at ail times mmntmn adequate reinsurance to protect the financial integrity of the Fund 8 Loss control services will be supplied I~y the serv~cing 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 w~ll cooperate in msUtutang any and ail reasonable loss control recommendations for the purpose of ~1 mmaung or minimizing b~7ards that would contnbute to losses In the event ~hat 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 g~wng 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 ail claims after nouce of claim has been given and to provide a defense ~here appropriate The Fund Member hereby appoints the Fund and its servicing contractor as Its agent to act in all matters peruaimng to processing and handhng of all claims and shall cooperate fully in supplying any lnforma~on needed or helpful in the settlement of those claims The serwcmg contractor shall carry on all negotiations with any thud pames or their attorneys and negotiate within authonty 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 ht~gation At the option of the servicing contractor, a Fund Member may be allowed to choose the legal counsel ~t deems most appropriate for the negotiaUon of individual cases or hfagat~on However, all decislons on md~vidual cases shall be made by the Fund through the serv~ong contractor, which includes the decision to appeal or not to appeal a final 182 adjudication at the trial court level However, any Fund Member shall have the right to consult w~th the [uad or its serwcing conh-actor on any case and hare the right to appeal any decision a~,~e by the servicing contractor to the Board Any stat brought or defended by the Fund shall be brought or defended only m the name of the Fund Member and/or its officers or employees The Fund shall periodically supply each Fund Member w~th a computer printout containing a statement of clmms 11 The Fund Member agrees to execute necessary authorization forms permitting the Fund and the servicing contractor to obtmn from the State Board of Insurance the experience rating mod,fication 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 Intentional or reckless misstatements on the exposure summary shall be grounds for canc, ehataon 13 In the event that the Fund Member flul~ or reuses to make payment, of conmbutions as herein provided, the Fund reserves the right to terminate such Fund Member by giving ten (10) days written noUce and to collect any and all contnbuUons that are earned pro rata for the period preceding contract termination Any Fund Member that is ternunated hereunder shall forfeit any of the refunds that have not been prod prior to the date of terrmnataon 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 raung mechanisms of the State Board of Insurance may be used as a guide It is understood that any raUng structures that may be used and which are promulgated by the State Board of Insurance do qot apply to self-funding and there ,s no lntenuon to bestow rating authority over this plan of self-funding upon the State Board of Insurance 16 At least annually, the Board shall review, study and considei the clmms or loss experience (including reserves for future clmm pay,nents) 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 reformation as a basis for the reasonable determination of the actual cost, expense and loss experience of each Fund Member in order to mamtmn as nearly aa possthle an equitable and reasonable administration of the Fund apphed to each Fund Member (Rl~v~tBl) 10~/91) 4 183 The duraUon of this Int~rlocal Agreement shall be lor a term commencing at 12 01 a m on October 1, 1991 and tecmlnatang at 12 01 a m on October 1, 1992 unless th~s agreement is terminated by sixty (60) days written not~ce by either the Fund Member or the Fund or as otherwise specified ~n the terms and agreements of this Interlocal Agreement or the Bylaws of the Fund TO BE COMPLETED BY FUND MEMBER Fund Member Name Signature of Aut Date THE PROPERTY/CASUALTY COORDINATOR FOR THE FUND MEMBER (Para 10) Coordinator Name & Title Max Blackburn Mailing Address 901-B Texas Street, Denton, TX 76201 Street Address Phone ( ) TO BE COMPLETED BY TPS FUND OFFICE October 1. 1991 F001 l Effective Date of Agreement Contract Number //- a / - Signature of Fund Secretary Date