2010-011 RES AUTHORIZING INTERLOCAL AGREEMENT WITH TML-IEBP FOR TERM LIFE INSURANCE, MEDICAL, VISION, DENTAL, LIFE AND DISABILITY COVERAGERESOLUTION NO. 2010-011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AUTHORIZIIVG THE EXECUTIOIV OF A1V INTERLOCAL AGREEMENT WITH
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE
BENEFITS POOL (TML-IEBP) FOR TERM LIFE INSURAIVCE, MEDICAL,
VISION, DENTAL, LIFE, AND DISABILITY COVERAGE FOR ITS ACTIVE
AND RETIRED EMPLOYEES; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDI111G 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.
o ~
sse Jam Freelen, Mayor
ATTEST:
1 ~
)nice Ellis, City Clerk
APPROVED AS TO FORM:
Kent McIlyar, City ttorney
Interlocal Agreement
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Risk Participating Member (Pool)
EXHIBIT A-
Revised July 2009
ears of Se o ~
TML Intergovernmental Employee BeneGts Pool
Austin. Texas
INTERLOCAL AGREEMENT
(RISK PARTICIPATING MENiBL•'R)
W}{EREAS, the TML lntergovernmental Employee Bene(its Pool, hereinafter rcferred to as TW_. 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 Bencfits Risk Pool fonnerly operating under the name of
the Texas Municipal Leaguc Insurance Trust Fund, which %vas established May l. 1979; and
WHERGAS, t1ie undersigned Employer Member represents that it is a Politica! Subdivision of tliis state
or of anotheF state, that it is a"Local Government" qualified to entcr into this Interlocat Agreernent, and
that its goveniing bady has acted by majority vote, at a duly callcd and posted public rnecting, to
authorize and participate in this Interlacal Agreement; and
WHEREAS, thc undersigned Political Subdivision has examincd all thc facts and issucs it deems relevant
and detennined that it is in the best interest of the Political Subdivision, its Employees, officials, and
rctirecs and thcir dependcnts to enter into this Interlocal Agreemcnt and to obtain onc or more life, sick,
accident, and other healtli benefits, as well as the related services, by becoming a member of the TML
IEBP;
VlHEREAS, the TML IEBP represents that it is a"Local Governmenr' qualificd to enter into this
lnterlocal Agrcement 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
simitar Interlocal Agreements, enters into this [nterlocal Agreemcnt for the purpose of providing certain
benefits and related services for their Employees, officials, and retirees and their depcndents. The benefits
will be provided under the authority of the laws of the State of I'eaas including the Texas Political
Subdivision Uniform Group [3enefits Prograrn (Chapter 172, Local Government Code), the lnterlocal
Cooperation Act (Chapter 791, Government Code) and the Texas 'I"rust Code (Title 9, Subtitle B, 7'exas
Propert,y Codc). Thc Emptoyer Member hereby designatcs thc TML lE[3P as its instrumcntaliry to
administer the business and supervise the performance of the Interlocal Agreement and the operation of
the risk pool. All money transferred by the Lmployer Member lo the 'fMl. IEBP utider this Interlocal
Agreement, togetlter witli any other properiy which may become subject to tliis Interlocal Agreement, will
be held in trust by thc I3oard of Trustees of the TML IEBP for thc benefit of thc Gmployccs, officials, and
retirecs and thcir dcpcndcnts, of the Employer Members. Tlie conditinns of mcrnbcrship in thc TML [EBP
arc agrced upon by and between the partics as set lonh hereinafter.
When used in this (nterlocal Agreement, the capitalized tcrnis shall havc the mcanings specified
in this paragraph unless the context clearly requires othenvise:
"F3oard of Trustccs" or "Board" or "Trustees" means the lnistees sclccted pursuant to the Trust
Agrccment I:stablishing the TML lntergovernmental F..mploycc I3cncfits Pool to supcn•ise the
opcration of thc TML IEBP.
"Covcrcd Participant" means a persnn who is elieible for crn•crage and who has cnrolled in a
Plan.
"L:rnployec" means a person who works at least 20 hours awcck for a Political Subdivision
Interlocal Agreement (rev. 06105/09) - Page 1
"Employer Membcr" means a Political Subdivision mernber of thc "fML (EBP that has executed
the lnterlocal Agreement.
"Interlocal Agreemenr' means the TA9L Intergovernmcntal Employcc Bcncflts Pool Risk
Participating Member Interlocal Aereement.
"Plan° or "Plans" mean the TR4L IEBP benefit plan(s) selected and adopted by the Employer
Vlcmber.
"Political Suhdivision" means any leeal en[ity included within the definition of "political
subdivision" in Chapter 172, Local Government Code, or Chapter 791. Government Code, or
otherwise yualified as a political subdivision under Texas l.aw.
"Sehedule oF f3enefits" means the document outlininb the Plan beiiefits and cantribution ievel of
thc f:mployer Member.
"'1'ML 1LBP" means the TML lntergovemmental Employec f3enefits Pool
2. 'fhc Employer Member agrees to be bound by this Interlocal Agrccmcnt, thc Tnist Agreement
Establishing the TMI. tntergovernmental Employee Benefits Pool and all amendments thereto,
and the Policies and Procedures established by the TMf_ 1EBP which col)cctively establish the
conditions for membership in the TA1I_ IEBP.
3. The Employer Member will adopt one or more of the TML !L-'f3P Nlans and make the payments
and contributions set forth in the Schedule of Benefits. The pavments required to be ►nade by the
Employer Member shall be made at Austin, Travis Counry, Texas. lnterest, beginning the first
day after the due date and continuing until paid, shall accrue at tlie 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 paymcnt 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 Disability wilt not be offered scpara[ely from medical benefits.
Except as may be otherwise specified in the TML tEBP Trust Agreement Establishing the TML
Intergovernmental Employee Benefits Pool, as amended, this inlerlocal Agreement may be
terminatcd by cither the Employer Member or the TM[. IEBP upon 30 days written notice which
wiil becorne effective on thc first day of the month following thc 30 day notice. An Employer
Member that wilhdraws from the TML IEBP may riot withdraw lmounts coiitributed to cover
oblibations incurred prior to such withdrawal. 'I'he 7'ML ICBP may tcnninate this Interlocal
Agreement for non-payment of a payment or contribution immcdiately upon de(inquency as
determincd by the TML lEf3P Policies and Procedures. In the evenl of a disagrecrncnt between an
Employer Membcr and the TML ICBP regarding non-payment of'a paymeiit or contribution, the
Employcr Member may appeal to the Board. The decision of the l;oard on appeal is final. 7he
"fML IrBP may also terminate this tntertocal Agree►nent il' tfic I:mploycr Member fails to
caopcrate %vith claims agents or attorneys representing thc 7'ML IL'BP or if thc Employer Member
takcs anv othcr action dctrimcntal to thc TML fEI3P's ability to carry out its purposes in an
cfficicnt manncr.
Even Employcr Member shall furnish all the information the 7'Mt_ IEBP dcems necessary and
useful for the purposes of this Interlocal Agreement and sliall abide by the Poiicies and
Arocedures adoptcd for the administration of the benefits Plans. Thc TML f GBP may amend the
Policies and Procedures and Trust Agreement Establishing tlse TML lntergovemmenta! Employee
Benefits Pool at anytime to the extent it deems advisable escept that no amendment shaU change
Interlocal Agreemrnt (rev. 06/05/09) - Ysge 2
the purpose of the T.'v1L IEBP. The Ty1L IEBP maN ernploy and contract with a third party
administrator.
The TML IEBP may purchase escess 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 eacess loss coverage or reinsurance agrecrnent.
Each Employer Member will designate and appoint a pcrson of department head rank or above to
be the L-mployer Alembcr's Coordinator with the 7-ML IF-.BP and agrees that thc 'l'N1L fEBP shall
not be required to contact or provide notices to anv other person. Funher, am- notice to or
agreement by an Gmployer Nefembers Coordinator with respect to services or claims hereunder
shall be binding on the Employer Member. The Employcr Member reserves the right to change
the Coordinator from time ro time b}• giving written notice to the TML (EBP.
8. The Employer Membcn cereby appoints the TML 1l:DP as its agent to act in a11 mattcrs pertaining
to the processing and handling of claims nnd agrees to cooperate fully and provide all information
necessary. All decisioris on individual claims shAll be made by the TML IEBP or by its contracted
third parry administrator.
9. "fhe ?ML IEBP shall be audited annually by an independent certified public accountant, and the
audit shall be filed as rcquired by the laws of the State of Teras including, but not limited to
Chapter 172 of the Local Government Code. A summary financial report will be pravided to each
Empioycr Member upon request.
10. All monies availablc for investment shal) be investcd by the TML IE[3P in compliancc with thc
Public Funds Investment Act of 1987 (Rx. Gov''t' Cout:. ANN. Sec. 2256.001, cl seq.) or the
Texas Trust Code (Subtitle B. Title 9, Property Code).
H. Each Employer Mcmber, as Plan Administrator, rctains thc riglu, duties and privileges of thc 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 IEB!' is not thc Group Administrator for any Employer Member unless and until a
separate contract for administration of Continuation of Coverage is entered into bchveen TML
IEBP and that Employer Member.
12. To the extent authorized by la.v, the Employer Membcr nbrees 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, arisinb out of acts or omissions of officers or Employees of tlle Employer
Member in conncction with the Plan. The Lmploycr Member agrees w pay all such claims,
damages, and expenses out of current revenues at the time the obligation is deterrnined. In the
cvent current revcnues arc inadequate to fund thc obligation at the timc it is dctcnnined, the
Employer Member agrccs to take the appropriate budeetan action sufficicnt to pay the
obligation.
13. 'Che Employer Vlembcr agrees that all conditions of c;overage for the beneCts providcd shall be as
specifed in the Plan booklcUdocument fiirnishcd to the Ernployer ~Membcr b), thc "rML ICBP.
The Employer Member agrees that the Emplo}'ees and the Board of Trustees of thc "CML tEI3P
and individuats and entities mrith whom the 'I'ML IEf3!' contract for staff' functions may receive
Plan benefits.
14. Gach Employer Member acknowledges that some I'lan benefits are provided in accordanee with
Chapter 172 of the Locai Government Code. Tliese benefits are not insurance and the TML lEE3P
is not an insurer under the Insurance Code or othcr laws of the state.
lnterlocal Agreement (rcv. 06/05/09) - Page 3
15. I'he Employer Member and the TIvII. IEBP may contract for additional administrative services
related to the Employer Members 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 the trust. The rights of Covered Participants are limited to the benefits specified in the
Plan.
17. The Employer Members desire to join together ta purchase life insurance benefiting their
Employccs, officials, and retirees and their dependents. Therefore, the Cmployer Member
authorizes the ?ML IEBP to purchase life insurance coverage insuring the lives of al( Covered
Participants ander.the Plan. ' •
18. No bond is required of the Board of Trustees of the TML IEBP.
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. lt is
further agreed that venue for any dispute arising under the terms of this ]nterlocal Agreement
shall be in Austin, Travis Counry, Texas.
20. This Interlocal Agreement represents the complete understanding of the TML IEBP and the
Employer Member and may not be amended, modified or attered without the written agreement
of both parties.
21. The initial term of this lnterlocal Agreement shAl l be from ttie day of ~ ry-o. r4 , 20~q
at 12:41 a.m. and cantinue until . Absent notice of termination, the
Employer Member may annually renew and extend the Intcrlocal Agreement by cxecuting and
retuming the rerate notice and benefit selection form as authorized at the inception of this
Interlocal Agreement.
This Intcrlocal Agreement is entered into for the Employer Member under authorization of
(EMPLOYER MEMBER)
at duly caUed meeting held on
(Date of Meeting)
By
(SIGNATURL)
Authorizcd Official Title
Datc
(Typed or Printed Name)
Interlocat Agreement (rev. 06105/09) - Pngc 4
This Interlocal Agrccment entercd into and Appointment Accepted By:
Thc TML Intergovernmental Employce Benefits Pool at Austin, Tcxas
By
' Date
TO I3E COMI'LETED BY EMl'LOYER MEMI3ER:
EMPLOYER MEMBER BENEFITS COORDINATOR .
Name
l'itle
Mailing Address
Street Address (ifdifierent from abovc)
Cih,!State/Zip
Plione
Fax
E-mail
Interlocal Ageement (rcv. 06/05/09) - Pagc 5