12-Resolution authorizing the execution of group benefits services interlocal gov. agreement with TML-IEBPCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originaring Department:
Presented By:
A.genda Item No.:
O1/14/10
Council Date:
Finance
Gene Anderson
12.
O1/25/10
RECOMMENDED MOTION:
Move to approve a resolution authorizing the execution of group benefits services interlocal agreement
with Texas Municipal League Intergovernmental Employee Benefits and authorizing the City Manager
to negotiate and execute all necessary documents.
POLICY ISSUE(S):
Employee benefits.
BACKGROUND:
In November 2009 the City of Paris received proposals through a third party consultant for medical,
vision, dental, life, and disability coverage for its active and retired employees. The end result of this
process was that these benefits would be provided through the Texas Municipal League
Intergovernmental Employee Benefits Pool. The proposed interlocal agreement formalizes this
arrangement and is the same type of agreement that we have had with TML in the past.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution and Interlocal Agreement
ACTION:
BUDGET INFO:
Z Financial Report Z Minute Order
Expense
$N/A
❑ Department Report ❑ Resolution
Budgeted Amt.
$N/A
❑ Presentation ❑ Ordinance
y'I'D Actual
$N/A
❑ Public Hearing ❑ Other
Acct. Name
N/A
Acct. Number
N/A
FISCAL NOTES:
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris Revised 2/04/08
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u
DRAFT
attorney\reswork\current\TML-IEBP Interlocal Agreement Res 2010
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AUTHORIZING THE EXECUTION OF AN INTERLOCAL AGREEMENT WITH
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS
POOL (TML-IEBP) FOR TERM LIFE INSURANCE, MEDICAL, VISION, DENTAL,
LIFE, AND DISABILITY COVERAGE FOR ITS ACTIVE AND RETIRED
EMPLOYEES; MAKING OTHER FINDINGS AND PROVISIOIVS RELATED TO THE
SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, in November, 2009 the City of Paris received proposals through a third party
consultant for term life insurance, medical, vision, dental, and disability coverage for its active
and retired employees (hereinafter collectively referred to as "Group Benefits"); and,
WHEREAS, the end result of this process was that these Group Benefits would be
provided through the Texas Municipal League Intergovernmental Employee Benefits Pool and
the City Council should authorize the execution of an Interlocal Agreement with TML-IEBP for
Group Benefits; and,
WHEREAS, it is deemed appropriate that a new interlocal agreement with Texas
Municipal League in the form attached hereto as Exhibit "A" be approved and the City Manager
be authorized to execute same on behalf of the City of Paris, Texas.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 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 be, and he is hereby, authorized and directed to
execute, on behalf of the City of Paris, the Interlocal Agreement with the Texas Municipal League
Intergovernmental Employee Benefits Pool (TML-IEBP) for Group Benefits, under the terms and
conditions and in substantially the form shown in Exhibit A, attached hereto, and any and all
other documents as may be necessary.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 25th day of January, 2010.
Jesse James Freelen, Mayor
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ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Kent Mcilyar, City Attorney
t5
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Interlocal Agreement
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Risk Participating Member (Pool)
EXHIBIT A-
Revised July 2009
r.
Pi 7J)
v ~~v Ji
~ears of 5e~ °
TML Intergovernmental Employee l3enefits Pool
Austin. Texas
INTERLOCAL AGREEMENT
(R[SK PARTICIPATING MEMBL'R)
. WHEREAS, the TML Intergovern mental Employee Benetits Pool, hereinafter rcferred 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 fonnerly operating under the name of
the Texas Manicipal League lnsurance Trust Fund, which %vas established May I, 1979: and
WHEREAS, the undersibned Employer Member represcnts that it is a I'olitical Subdivision of this state
or of unother state, that it is a"Local GovernmenP' qualified to cntcr into ttlis lnterlocal Agreement, and
that its governing bady has acted by majoriry vote, at a duly called and posted public rneeting, to
authorize and participate in this lnterlocal Agreement; and
WHERFAS, the undersigned Political Subdivision has examincd all thc facts and issucs it dcems rclevanr
and detennined that it is in the best interest of the Political Subdivision, its Employees, ofticials, and
rctirccs and tlieir depcndents to cntcr into this ]nterlocal Agreemcnt and to obtain onc or more life, sick,
accident, and other health benefits, as well as the related services, by becominb a member of the TML
IEBP;
WHEREAS, the TML IEBP represents that it is a"Local Governmenr' qualified to enter into this
lnterlocal Agreement pursuant to Chapter 791 of the Texas Govcrnment 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 Agrcements, enters into this lnterlocal Agreement for the purpose of providing certain
benefits and relatcd services for their Employees, officials, and retirees and their depcndents. The benefits
will be provided under the authoriry of ihe laws of the State of 7'exas including the Texas Political
Subdivision Uniform Group I3enefits Program (Chapter 172, Local Government Code), the lnterlocal
Cooperation Act (Chapter 791, Government Code) and the Texas 'frust Cade (Title 9, Subtitle B, 7'exas
Property Code). 7'hc Employer Member hereby designatcs ihc TML IE[3P as its instrumentaliry to
administer the business and supervise the per!'ormance of the lnterlocal Agreement and the operation of
the risk pool. /111 money transferred by the L`•mployer Member to the 'fML IEl3P under this lnterlocal
Agreemcnt, togetlier with any other properiy which may become subject to tliis lnterlocal Agreement, will
be held in trust by thc I3oard of Trustees of the TML IEBP for thc bene(it of thc Cmployccs, officials, and
retirecs and thcir dcpcndcnts, of thc Employer Members. The conditions of'rnernbcrship in thc 'I'ML fEBP
are agrced upan by and between the parties as set forth hereinaFter.
f. When used in this lnterlocal Agreemetu, the capitalized tcrnis shall have the meanings specified
in this paragraph unless the cnntext clearly requires othenvisc:
"E3oard of 'fnistccs" or "f3oard" or "Trustees" means the tnistees selcrted pursuant to the Trust
Abrccment l:stablishing the TML Intergovernmental Ernploycc I3cncfits Pool to supcn•ise the
opcration of thc TML IEBP.
"Covcred Participant" means a person who is eligible for covcrage ancf who fias cnrollcd in a
('lan.
"Employec" means a person «fio works at least 20 hours awcck for a Political Subdivision.
lnterlocal Agreement (rcv. 06/05/09) - Page 1
~"C~0080
"Employer ,Nember" means a Political Subdivision member of the "fML IEBP that has esecuted
the Interlocal Agreement.
"Interlocal Agreemenr' means the T'A1L lntergovernmcntal Employec Bcncfits Pool Risk
Aarticipating Memher Interlocal Agreement.
"Plan" or "Plans" mean the TA4L IEBP bene(it plan(s) sclected and adoptcd by the Employer
Mcmber.
"Political Subdivision" means any legal entiry included within the defjnition of "political
subdivision" in Chapter 172. Local Government Code, or Chapter 791. Govcrnment Code, or
othenvise qualified as a political subdivision under Texas I.aw.
"Schedule of [3enefits" means the document outlining the Plan benefits and cantribution ievel of
the Employer Member.
"'1'ML IEBP" means the TML )ntergovemmenta! Employec 13cnefits Pool.
2. 'fhc Employer Membcr agrees to be bowid by this lnterlocal Agrecmcnt, the Tnist Agreement
Establishing the TML tntergovernmental Employee BeneCts Pool and all amendments thereto,
and ihe Policies and Procedures established by the TMI_ IEBP whicli collcctively establish the
conditions for membership in the TML IEBP.
The Employer Member will adopt one or more of the TML IEBP Plans and make the payments
and contributions set forth in the Schedule of Benefits. The paymeiits required to be made by the
Employer Member shall be made at Austin, Travis County, Texas. Interest, besinning 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 fram 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 Term Disabiliry wili not be offered separately from medical benctits.
d. Excepl as may be otherwise specified in the TML IEBP Trust Agreement Establishing the TML
Intergovernmcntal Employee Benetits Pool, as amended, this Interlocal Agreement may be
terminatcd by cither the Employer Member or the TML IEBP upon 30 days wriuen notice which
will becorne effectivc on the flrst day of the month !'oUowing thc 30 day noticc. An Fmplayer
Membcr tiiat wilhdraws from the TML IEBP may not withdraw lmounts contributed to cover
obligations incurred prior to such withdrawal. 7'he 'I'ML IEBP may tcrminate this [nterlocal
Agreemcnt for non-payment of a payment or contribution in,mcdiately upon de(inyuency as
determined by thc TML IEBP Policies and Procedures. In thc cvc;nl ofa disagrecrncru between an
I:mploycr Membcr and the TML IEBP regarding non-paymcnt of'a paymcnt or contribution, the
Employcr Member may appeal to the Board. The dccision of the 13oard on appeal is final. The
'fML IEBP rnay atsn terminate this Interlocal Agreement if tlie I:mployer Member fails to
cooperate %vith claims agents or attorneys rcpresenting thc TML IEBP or if thc Employer Member
takcs any othcr action dctrimcntal to thc TML fEBP's ability to cam out its purposes in an
crrcicnt n,anncr.
Every Employcr Member shall furnish all the information the 'I'ML tE:13P dcems necessary and
useful for the purposes of this (nterloca) Agreement and sliall abidc by the Policies and
Procedures adoptcd for the administration of the benefits Plans. The 7'M[. f r-BI' may amend the
Policies and Procedures and Trust Agreement Establishing the T itifL lntergovertimenial Emptoyee
Benefits Pool at anytime to the extent it deems advisable ercept that no amendmcnt shall change
I L Interlocal Agreemrnt (rcv. 06/05/09) - Pege 2 ~ I
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the purpose of the TML lEBP. The TML IEBP maY ernploy and contract with a third party
administrator.
6. T'he TML IEBP may purchase excess loss coverage or rcinsurance as providcd in Chapter 172,
Local Government Code, and all Employer Members are subject to the terms and conditions of
any such excess toss coverage or reinsurance abreement.
E.ach Employer Member will designate and appoint a pcrson of department head rank or above to
bc the Employer Mcmbcr's Coordinator with the "I :ML IFBP and agrees that thc 7'MI_ ILBP shall
not be required to contact or provide notices to any other person. Further, any notice to or
aereement by an Cmployer i"vfembers Coordinatur ►vitli respect to serviees ur claims hereunder
shall be binding on the Emplo}'er Member. 7'he Employcr Member rescrves the right to change
the Coordinator from time to time b}' giving tivritten notice to the TML IEBP.
8. The Employer Memben cereby appoints the TML 11:13P as its agent to act in all mattcrs pertaining
to the processing und hundling of claims And abrees ta cooperate fully and provide all information
necessary. All deeisions on individual claims shall be made by the TML IEBP or by its contracted
third party administrator.
9. "fhe TML IEBP shall be audited annually by an independent certified public accountant, and the
audit shall be liled as rcquired 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. Ali monies availablc for investment shall be invested by the TML IE[3P in compliancc with the
Public Funds [nvestment Act of 1987 (Tl:x. Gov'T COl)t:. ANN. Sec. 2256.001, ct seq.) or the
Texas Trust Code (Subtille B, Title 9, Property Code).
H. Each Employer Mcmber, as Plan Administrator, retains the right, duties and privilegcs ofthe Plan
Administrator and acknowledbes it has responsibility far 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 Covcrage is entered into bchvicen TML
IEBP and that Cmployer Mcmber.
12. To the extent authorized by law, the Employer Membcr abrees to indemnify and hold harmless
the TML IEBP for alt claims, damages and expenses, including but not limited lo attorney's fees
and costs of court, arising out of acts or omissians o1' officers or Employees of the Employer
Member in conncction with the Plan. The L'mploycr Mcmber agrees w pay all such claims,
damages, and expenses out of current revenues at the time the obligation is determined. In the
cvent current rcvcnues arc inadequate to fund the obligation at the timc it is dctennined, the
Emplo}er Mcmbcr abrecs to take the appropriate budFetarv action sufficicnt to pay the
obligation.
13. 'I'he Employer Membcr agrees that all conditions of covcragc f'or the benefits pravidcd shall be as
specified in the Plan bookleddocument fiirnished to the Ernployer Member by the "I'ML IGI3P.
The Employcr Membcr agrecs that the Employces and thc flaard of Trustees of thc 'fML tEI3P
and individuals and entitics with whom the "I'ML IE131' contract for staff functions may receive
Plan benefits.
14. Each Employer Memher acknowledges that some !'lan benetits are provided in accordance with
Chapter 172 of the Local Government Codc. Tliese benefits are not insurance and the TML tEDP
is not an insurer under the Insurance Code or othcr laws of the state.
lnterlocal Agreement (rcv. 06/05109) - F'age 3
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15. 7'he Employer Member and the TML IEBP may contract for add'rtional 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.
16. The Employer Member agrees that no Covered Participant shall have any claim against the
property of tlte trust. The rights of Covered Participants are limited to the benefits specified itt the
Plan.
17. The Employer Members desire to join together to purdiase life insurance benefiting their
Employecs, officials, and retirees and their dependents. Therefore, the Employer Member
authorizes the TML IEBP to purchase life insurance coverage insuring the lives of al! Covered
Participants andeF the Plan. • .
18. No bond is required of the Board of Trustees of the TML IEBA.
19. if any part of this Interlocal Agreement, save and except paragraph 3, is declared invalid, void or
unenforceable, the remaining parts and provisions sliall continue in full force and effect. It is
further agreed that venue for any dispute arising under the terms of this lnterlocai Agreement
shall be in Austin, Travis Counry, Texas.
20. This Interlocal Agreement represents the complete understanding of the TML IEBP and the
Empioyer Member and may not be amended, modiFied or attered without the written agreemcnt
of both parties.
21. The initial term of this lnterlocal Agreement shall be from the / 9 day of ls~n mo. rp , 20~q
ai 12:01 a.m. and continue until . Absent notice of termination, the
Employer Member may annually renew and extend the Interlocal Agreernent by cxecuting and
retuming the rerate notice and benefit selection form as authorized at the inception of this
Interlocal Agreement.
This Intcrlocal Agreernent is entered into for the Employer Member under authorization of
(EMPLOYER MEMBER)
at duly called meeting held on
By
(SIGNATURE)
Authorized Official Title
Datc
(Date of Meeting)
' L Interlocal Agreemem (rev. 06/05/W) - Pagc 4 ~ I
(Typed or Printed Name)
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This [nterloca! Agrcement entered into and Appointment Acccpted By:
Thc TML Intergovemmental Employce Benefits Poul at Austin, "fcxas
By
Date
TO I3E COMI'LETED 13Y EMPLOYER MEMl3ER:
EMPLOYER MEMBER BFNEFITS COORDINA'TOR
Name
l'itlc
Mailing Address
Street Address (ifdifferent from abovc)
Cih,lState/Zip
Phone
Fax
E-mail
Intcrlocal Agreemant (rev. 06/05/09) - Yage 5