Loading...
1987-1692005L NO AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND, AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the Mayor is authorxzed to execute an agreement between the Cxty of Denton and the Texas Political Subdlvlsxons Workers' Compensatxon Joint Insurance Fund for the purpose of providing the statutory benefits prescrxbed by art 8309h of the Texas Workers' Compensation Act, under the terms and condltxons contained in said agreement whxch xs attached hereto and made a part hereof SECTION II That the City Councxl hereby authorxzes the expenditure of funds in the manner and amount as speclfxed in the agreement SECTION III That this ordinance shall become effective lmme~iately upon 1ts passage and ~oval ~~ PASSED AND APPROVED this the day of , 1987 ATTEST APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY TEXAS POLITICAL SUBDIVISIONS UORKERS' COMPENSATION JOINT INSURANCE FUND (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 (hereinafter referred to as "Fund") and the undersigned political subdivision of the State of Texas (hereinafter referred to as "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 ~IITNESSETH The undersigned Fund Member in consideration of the adoption of a plan of self-insurance as authorized in Article 8309h, Vernon's Annotated Texas Statutes, to provide Workers' Compensation benefits at a 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 l, Definition of terms used in th~s Interlocal Agreement a "Board" - refers to the Board of Trustees of the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund ,, ,, ,' utlon" - are used ~nterchangeably b Premium and ~o~rib. ~ _,A_~, ~ .... nt "Premium" is in some parts ot this ln~erm~a, ~,:~m~ ~.~ k,, +k~ used tO identify the rating tormumas es~a~m,~-:~ ~ .... State Board of Insurance, which are used as quidel~nes to establish Fund Members' cash contributions to the Fund Any reference at any t~me in this Interlocal Agreement to an insurance term not ordinarily a part of self-insurance shall be deemed for convenience only and ~s not to be construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible ~nterpretatlon such as but not l~mited to the reference to "reinsurance" c, "Servicing Contractor" ..Texas. Fmp}oyers' In~rance~A~sociation d "Manual Rates" - the basic workers compensation ra~es applicable to each classification of employees promulgated by the State Board of Insurance e "Manual Premium or Contribution" -the premium determined by applying the manual rate of each classification code to the payroll in that classification It is the oross premium before any modifiers or discounts are applied f. "Experience Modifier" - that factor which reflects the Fund Member's individual loss experience and is based on the State Board of Insurance experience rating plan g "Standard Premium or Contribution" - the amount that is determined by applying the experience modifier of the Fund Pember to the Fund Member's manual premium. Uhile ?is premium figure under the Fund ~ember's sel?tnsured 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 O1 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 Irovtdad. 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 shall submit to the Fund on a Premium Worksheet form supplied by the Fund, its estimated payroll for each classification of e~ployees The rates established by the State Board of Insurance shall be applied to arrive at a nanual 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 ~ember, 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 ~ember 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 ~nitlal 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, aggregate excess of loss excess insurance/reinsurance charge, and the afet en ineertng charge {if applicable) as set forth in Exhihtt A ~tta~ed ~ereto On or before the beginning of the ,econd month after the inception date of this Interlocal Agreement, the Fund Member agrees to make an identical payment as determined above On or before 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 serwces plus 1/12 of the annual administrative service charge, catastrophic excess of loss excess rice reinsurance charge, aggregate excess of loss excess insurance/ tn~?__.~ ~-r-e and safety engineering charge (l~ ~pp!ica~l?}. relnsura.~= ~-- ~ , rtoca/ ~ reeme.~, or before the beginning of the fourth month of this ~n[e g a similar payment based upon the actual paid losses of the second ~onth shall be paid to the Fund with subsequent monthly payments to be paid each~ and every month thereafter, based upon actual paid losses The Fund Member who has previously been a member of th~s 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 ~nclude 1/12 of the annual charge for administrative services, safety engineering, catastrophic excess of loss excess insurance/reinsurance, and aggregate excess of loss excess insurance/reinsurance as set forth in Exhibit A attached 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 rember are those losses paid by the Fund on behalf of the Fund Member in the month which is two months prior to the billing month These payments are due at the beginning of the 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 uslno actual payrolls, manual rates, and experience modifiers. At the end of each Fund Year there will be submitted by the Fund Member actual payrolls as reflected on the books of the Fund Member The Fund reserves the right to audit the payroll recorus of any Fund 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 th~s deposit will be adjustable ~eriodlcally to accurately reflect realistic ~onthly loss payments After termination of this Agreement, the Fund will continue to handle claims with an accident date occurring durlno the term of this Agreement until such claims are disposed of After termination of this Agreement, the Fund Member will pay the Fund each and every month, until all claims handled by the Fund are disposed of, only the monthly claims administration charge calculated as described above, and the monthly reimbursement of actual claims losses pard on behalf of the Fund Member as determined above In the event that the Fund Member falls 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/ reinsurance and aggregate excess of loss excess insurance/reinsurance on behalf of its Fund )~embers. The excess insurance/reinsurance protection is, however, optional with the Fund Member. If the Fund Member elects this protection, its election shall be indicated on Exhibit A 3 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 prowde all of the services as provided in the service contract entered into by and between the Serwcing Contractor and the Fund or as may be modified for the ind~wdual 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 The safety engineering services provided are, however, optional with the Fund Member If the Fund Member elects this serwce, its election shall be indicated on Exhibit A 6. The Fund Member agrees that it will appoint a workers' compensation coordinator of department head rank, and that the Fund and ~ts Servicing Contractor shall not be required to contact any other individual except this one person Any notice to or any agreements w~th the workers' compensation coordinator shall be b~ndino upon the Fund Member. The Fund Member reserves the riqht to chanqe the coordinator from time to time but when doing so agrees to give written notice to the Fund 7 The Fund, through the Servlctnq 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 h~s attorney at the preheartng conference and negotiate within authority previously qranted by the Fund If a personal appearance by a representative or a co- employee is necessary, the expense of this appearance w~ll be paid by the Fund Member. The Servicing Contractor will retain and 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 mede 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 tlember shall have the right in any case involving one of their employees, to consult with the Fund on any decision made by the Servicing Contractor The Board shall hear the objections of the Fund Member at ~ts next regularly scheduled meeting and their decision will be final and b~nding on all parties Any suit brouqht or defended by the Servicing Contractor and the Fund shall be in the name of the political subdivision Notwithstanding any provisions of th~s paragraph, all reports and filings required by the Workers' Compensation Law and the Industrial Accident Board of any employer will be the responsibility of the Fund Member. It is further understood that this agreement does not cover discrimination suits under Article 8307c. There shall be supplied periodically to each Fund Member a computer printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year 8. 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 f~rm 10. The Fund )~ember agrees to pay any Industrial Accident Board maintenance tax that may be imposed and the Fund agrees to file the necessary tax forms with the Internal Revenue Service ll. 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 l~r~itation, 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 B), 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, as approved by the Texas State Board of Insurance, includlna the Texas Amendatory Endorsement as it is applicable to such Part Two, 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 In3ury by Disease $100,000 each accident Bodily In3ury by Disease $500,000 policy limit 5 c It is understood that this Employer Liability coverage does not cover discrimination su~ts under Article 8307c d References to "workers' compensation" in this Interlocal Aqreement shall include Employers L~ab~lity 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. The Fund agrees to provide at no additional charge Employers Liability Coverage at the following l~mlts Bodily Injury by Accident $100,000 each accident BoUily Injury by Disease $100,000 each accident Bodily Injury by Disease $500,000 policy limit If the Fund Member elects higher l~mlts 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 th~s 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 or willful failure to carry out reasonable instructions of the Fund Member with respect to a specific matter 15 The Fund Member will be solely responsible for future benefits payable and for funding its net reserve The Fund )lember agrees to hold the Fund harmless from any and all claims {includinq 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. 6 E~HIBIT A CITY OF DENTON TtmS ~a3RKERS' C(3v~ATION JOINT I~ FUND I~r~oca~ A(~T I The Fund shall at all times provide for specific excess of loss (catastrophe) reinsurance of the FundMsmberexcess of $ 200,000 for any one accident or occurrence up to a maximum limit of $ 10,000,000 for anyone accident or occurrence 2 It is mutually agreed that the fees payable for services and excess reinsurance under this contract shall be based on the fo]lowing schedule Claims Admin~stration 7 54 of Pa~d Loese~ Administrative Services 3 04 of First $100,000 of Standard Contribution ,1 §4 of Next $400,000 of Standard Contribution,O ?§4 of Star~4~d Contribution over 8500,000, Not toE xceed Overall Charge of $25,000 SefetyEnginsering I 04 of Standard contribution Catastrophe Reinsurance 4 34 of Standard Contr~bution IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto duly authorized this day of Contract Number_ H0165 TEXAS POLITICAL SUBDIVISIONS WOPKERS' COMPENSATION JOINT INSURANCE FUND i0-i-87 BY Fund Secretary Effective Date Dallas, Texas FOR City of Denton Fund Member Name kYSignature & Title Denton , Texas The Workers' Compensation Coordinator for the Fund Member is COORDINATOR NArlE Harlan Jefferson FUND MEMBER NAME City of Denton ADDRESS 901-B Texas Street TELEPHONE 817-566-8)~0