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2006-038-RES-TML intergovernmental employee RESOLUTION NO. 2006-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS ASSOCIATED WITH ENTERING INTO AN INTERLOCAL AGREEMENT WITH TML INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager and the City Finance Director have identified the necessity of entering into an Interlocal Agreement with TML Intergovernmental Employee Benefits Pool for the purpose of becoming a member of the TML Intergovernmental Employees Benefit Pool; and, WHEREAS, the City has received recommendations from representatives of the Texas Municipal League Intergovernmental Employee Benefits Pool, which acts as the administrator of the City's health insurance program; and, WHEREAS, the City Council desires to authorize the City Manager to execute any and all necessary documents associated with entering into an Interlocal Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Manager is hereby authorized to execute any and all documents necessary and required associated with entering into an Interlocal Agreement. Section 3. That this resolution shall be effective May 1,2006. PASSED AND APPROVED this 13th day of March, 2006. ATTEST: ({, v APPROVED AS TO FORM: /~1r' ~ . 1 r ;' ! /4"4 /}~) .1. I I .<, '- fl , Jo' D. Lestock, Assistant City Attorney -~ ~q~"'''''''~'''''''--''"''~''-~~~~1l'''f,,~'''' ~~-~-....,."~"......~--.,,--,,,.......,.,,-~~~C'IV"~ NTERLOCAL GREEMENT 'PI' Risk Participating Member 't.;,~ ..,. .~_~ .... ... "~_ '... ""'....,,.,_..>,,,..l<'~...._,;,,;;;~""'~~,~..;ibad_,.......~ .. "tri___. '"'..,.. ,_ _ ._~" '-""-_......... , . ~...... .....,...'-'"_.,._<_""......~""'....__ ~ _~..._.. O!. www.tmliebp.org Revised 04/2004 TML Intergovernmental Employee Benefits Pool Austin, Texas INTERLOCAL AGREEMENT (RISK PARTICIPATING MEMBER) WHEREAS, the TML Intergovernmental Employee Benefits Pool, hereinafter referred to as TML IEBP, is a legal entity created by Political Subdivisions of the state and governed by trustees, and is the successor of the Texas Municipal League Group Benefits Risk Pool formerly operating under the name ofthe Texas Municipal League Insurance Trust Fund, which was established May 1, 1979; and WHEREAS, the undersigned Employer Member represents that it is a Political Subdivision of the state and that its governing body has acted by majority vote, at a duly called and posted public meeting, to authorize and participate in this Interlocal Agreement; and WHEREAS, the undersigned Political Subdivision has examined all the facts and issues it deems relevant and determined that it is in the best interest of the Political Subdivision, its Employees, officials, and retirees and their dependents to enter into this Interlocal Agreement and to obtain one or more life, sick, accident, and other health benefits, as well as the related services, by becoming a member of the TML IEBP' , WHEREAS, the TML IEBP represents that it is a "local government" qualified to enter into this Interlocal Agreement pursuant to Chapter 791 of the Texas Government Code; NOW, THEREFORE, in consideration of the covenants and agreements herein set forth, the undersigned Political Subdivision, together with other Political Subdivisions executing identical or substantially similar Interlocal agreements, enters into this Interlocal Agreement for the purpose of providing certain benefits and related services for their Employees, officials, and retirees and their dependents. The benefits will be provided under the authority of the laws of the State of Texas including the Texas Political Subdivision Uniform Group Benefits Program (Chapter 172, Local Government Code), the Interlocal Cooperation Act (Chapter 791, Government Code) and the Texas Trust Code (Title 9, Subtitle B, Texas Property Code). The Employer Member hereby designates the TML IEBP as its instrumentality to administer the business and supervise the performance of the Interlocal Agreement and the operation of the risk pool. All money transferred by the Employer Member to the TML IEBP under this Interlocal Agreement, together with any other property which may become subject to this Interlocal Agreement, will be held in trust by the Board of Trustees of the TML IEBP for the benefit of the Employees, officials, and retirees and their dependents, of the Employer Members. The conditions of membership in the TML IEBP are agreed upon by and between the parties as set forth hereinafter. 1. When used in this Interlocal Agreement, the capitalized terms shall have the meanings specified in this paragraph unless the context clearly requires otherwise: "Board of Trustees" or "Board" or "Trustees" means the trustees selected pursuant to the Trust Agreement Establishing the TML Intergovernmental Employee Benefits Pool to supervise the operation of the TML IEBP. "Covered Participant" means a person who is eligible for coverage and who has enrolled in a Plan. "Employee" means a person who works at least 20 hours a week for a Political Subdivision. Interlocal Agreement (rev. 04/15/04) - Page 1 "Employer Member" means a Political Subdivision member of the TML lEBP that has executed the Interlocal Agreement. "Interlocal Agreement" means the TML Intergovernmental Employee Benefits Pool Risk Participating Member Interlocal Agreement. "Plan" or "Plans" mean,the TML lEBP benefit plan(s) selected and adopted by the Employer Member. "Political Subdivision" means any legal entity included within the definition of "political subdivision" in Chapter 172, Local Government Code, or Chapter 791, Government Code, or otherwise qualified as a political subdivision under Texas Law. "Schedule of Benefits" means the document outlining the Plan benefits and contribution level of the Employer Member. "TML lEBP" means the TML Intergovernmental Employee Benefits Pool. 2. The Employer Member agrees to be bound by this Interlocal Agreement, the Trust Agreement Establishing the TML Intergovernmental Employee Benefits Pool and all amendments thereto, and the Policies and Procedures established by the TML lEBP which collectively establish the conditions for membership in the TML lEBP. 3. The Employer Member will adopt one or more of the TML lEBP Plans and make the payments and contributions set forth in the Schedule of Benefits. Interest, beginning the first day after the due date and continuing until paid, shall accrue at the maximum rate allowed by law on the balance of any payment or contribution not paid when due. All such payments and contributions shall be paid from then current revenues and be available for payment of eligible benefits and administrative expenses for all participating Employer Members. Supplemental benefits, including but not limited to dental, vision, life, Medicare Supplement and Long and Short Tenn Disability will not be offered separately from medical benefits. 4. Except as may be otherwise specified in the TML lEBP Trust Agreement Establishing the TML Intergovernmental Employee Benefits Pool, as amended, this Interlocal Agreement may be terminated by either the Employer Member or the TML lEBP upon 30 days written notice which will become effective on the first day of the month following the 30 day notice. An Employer Member that withdraws from the TML lEBP may not withdraw amounts contributed to cover obligations incurred prior to such withdrawal. The TML lEBP may terminate this Interlocal Agreement for non-payment of a payment or contribution immediately upon delinquency as determined by the TML lEBP Policies and Procedures. In the event of a disagreement between an Employer Member and the TML lEBP regarding non-payment of a payment or contribution, the Employer Member may appeal to the Board. The decision of the Board on appeal is final. The TML lEBP may also terminate this Interlocal Agreement if the Employer Member fails to cooperate with claims agents or attorneys representing the TML lEBP or if the Employer Member takes any other action detrimental to the TML IEBP's ability to carry out its purposes in an efficient manner. 5. Every Employer Member shall furnish all the information the TML lEBP deems necessary and useful for the purposes of this Interlocal Agreement and shall abide by the Policies and Procedures adopted for the administration of the benefits Plans. The TML lEBP may amend the Policies and Procedures and Trust Agreement Establishing the TML Intergovernmental Employee Benefits Pool at anytime to the extent it deems advisable except that no amendment Interlocal Agreement (rev. 04/15/04) - Page 2 -~ - ~ shall change the purpose of the TML IEBP. The TML IEBP may employ and contract with a third party administrator. 6. The TML IEBP may purchase excess loss coverage or reinsurance as provided in Chapter 172, Local Government Code, and all Employer Members are subject to th~ terms and conditions of any such excess loss coverage or reinsurance agreement. 7. Each Employer Member will designate and appoint a person of department head rank or above to be the Employer Member's Coordinator with the TML IEBP and agrees that the TML IEBP shall not be required to contact or provide notices to any other person. Further, any notice to or agreement by an Employer Member's Coordinator with respect to services or claims hereunder shall be binding on the Employer Member. The Employer Member reserves the right to change the Coordinator from time to time by giving written notice to the TML IEBP. 8. The Employer Member hereby appoints the TML IEBP as its agent to act in all matters pertaining to the processing and handling of claims and agrees to cooperate fully and provide all information necessary. All decisions on individual claims shall be made by the TML IEBP. 9. The TML IEBP shall be audited annually by an independent certified public accountant, and the audit shall be filed as required by the laws of the State of Texas including, but not limited to Chapter 172 of the Local Government Code. A summary financial report will be provided to each Employer Member upon request. 10. All monies available for investment shall be invested by the TML IEBP in compliance with the Public Funds Investment Act of 1987 (TEX. GOV'T CODE. ANN. Sec. 2256.001, et seq.) or the Texas Trust Code (Subtitle B, Title 9, Property Code). 11. Each Employer Member, as Plan Administrator, retains the right, duties and privileges of the Plan Administrator and acknowledges it has responsibility for compliance with the state and federal laws applicable to employee benefits. For purposes of delivery of any Continuation of Coverage notices, TML IEBP is not the Group Administrator for any Employer Member unless and until a separate contract for administration of Continuation of Coverage is entered into between the TML IEBP and that Employer Member. 12. The Employer Member agrees to indemnify and hold harmless the TML IEBP for all claims, damages and expenses, including but not limited to attorney's fees and costs of court, arising out of acts or omissions of officers or Employees of the Employer Member in connection with the Plan. The Employer Member agrees to pay all such claims, damages, and expenses out of current revenues at the time the obligation is determined. In the event current revenues are inadequate to fund the obligation at the time it is determined, the Employer Member agrees to take the appropriate budgetary action sufficient to pay the obligation. 13. The Employer Member agrees that all conditions of coverage for the benefits provided shall be as specified in the Plan booklet/document furnished to the Employer Member by the TML IEBP. The Employer Member agrees that the Employees and the Board of Trustees of the TML IEBP and individuals and entities with whom the TML IEBP contract for staff functions may receive Plan benefits. 14. Each Employer Member acknowledges that some Plan benefits are provided in accordance with Chapter 172 of the Local Government Code. These benefits are not insurance and the TML IEBP is not an insurer under the Insurance Code or other laws of the state. Interlocal Agreement (rev. 04/15/04).- Page 3 Ii , 15: The Employer Member and the TML IEBP may contract for additional administrative services related to the Employer Member's employee benefit programs as long as the Employer Member is a full medical risk participating member of the TML IEBP. Ii 16. The Employer Member agrees that no Covered Participant shall have any claim against the property of the trust. The rights of Covered Participants are limited to the benefits specified in the Plan. 17. The Employer Members desire to join together to purchase life insurance benefiting their Employees, officials, and retirees and their dependents. Therefore, the Employer Member authorizes the TML IEBP to purchase life insurance coverage insuring the lives of all Covered Participants under the Plan. 18. No bond is required of the Board of Trustees of the TML IEBP. i . 19. If any part of this Interlocal Agreement, save and except paragraph 3, is declared invalid, void or unenforceable, the remaining parts and provisions shall continue in full force and effect. It is further agreed that venue for any dispute arising under the terms of this Interlocal Agreement shall be in Austin, Travis County, Texas. 20. This Interlocal Agreement represents the complete understanding of the TML IEBP and the Employer Member and may not be amended, modified or altered without t~e written agreement of both parties. 21. The initial term of this Interlocal Agreement shall be from the _ day of , 20_, at 12:01 a.m. and continue until . Absent notice of termination, the Employer Member may annually renew and extend the Interlocal Agreement by executing and returning the rerate notice and benefit selection form as authorized at the inception of this Interlocal Agreement. This Interlocal Agreement is entered into for the Employer Member under authorization of (EMPLOYER MEMBER) at duly called meeting held on (Date of Meeting) By (SIGNATURE) (Typed or Printed Name) Authorized Official Title Date Interlocal Agreement (rev. 04/15/04) - Page 4 i ~ .-. - ~ - ..---. -.... .- .- ..-- .-. -- This Interlocal Agreement entered into and Appointment Accepted By: The TML Intergovernmental Employee Benefits Pool at Austin, Texas By Date TO BE COMPLETED BY EMPLOYER MEMBER: EMPLOYERMEMBERBENEmTSCOORDffiATOR Name Title Mailing Address Street Address (if different from above) City/State/Zip Phone Fax E-mail Interlocal Agreement (mo. 04/15/04) - Page 5