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