R2000-039 03-27-00RESOLUTION NO. R2000-39
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO AN INTERLOCAL AGREEMENT WITH THE
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE
BENEFITS POOL TO FACILITATE THE TERMINATION OF THE TEXAS
MUNICIPAL LEAGUE GROUP BENEFITS RISK POOL TRUST AND THE
TRANSFER OF ALL TRUST ASSETS AND LIABILITIES TO THE TEXAS
MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS
POOL.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1.
City of Pearland
That certain interlocal agreement by and between the
and the Texas Municipal League Intergovernmental Employee
Benefits Pool, a copy of which is attached hereto as Exhibit "A" and made a part hereof
for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest the original of the attached agreement for and on behalf
of the City of Pearland, to facilitate the termination of the Texas Municipal League Group
Benefits Risk Pool Trust and the transfer of all trust assets and liabilities to the
Texas Municipal League Intergovernmental Employee Benefits Pool.
PASSED AND APPROVED on this the 27th day of March
A.D., 2000. ~-~ ~¢.,,~0
TOM REID
MAYOR
ATTEST: . /~
i~NG L~G//''
SEGP, ETARY // /
RESOLUTION NO. R2000-39
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
CONSENT TO ASSIGNMENT
City of Pearland consents to the assignment to the TML Intergovernmental
Employee Benefits Pool of the fights and responsibilities of the Texas Municipal League
Group Benefits Risk Pool under the following contracts and agreements entered into
between the Texas Municipal League Group Benefits Risk Pool and City of Pearland.
Continuation of Coverage Administration
Section 125 Flexible Spending Account Administration
Retiree Direct Billing
City of Pearland agrees to honor its obligations under the contract and to treat
the TML Intergovernmental Employee Benefits Pool in all respects as though it were the
original contracting party.
This Assignment was approved by the City of Pearland governing body at a duly
called meeting held on 27th day of ~qarch ,2000.
For the City of Pearland
Signature
Glen Erwin
TypedName
City Manager
Title
TML
DmC^T~O ro S~RWC~
Texas Municipal League Group Benefits Risk Pool
1821 Rutherford Lane · #300 · Austin . Texas . 78754 . 800.348.7879
MEMORANDUM
To: TML-Group Benefits Risk Pool Members
Date: 3/1/00
Re: Council or Governing Body Action Required By 4/1/00
The Texas Municipal League Group Benefits Risk Pool (TML-GBRP) was formed on
5/1/79, to ensure political subdivisions had access to employee benefits and to assure
there would be competition in the price of employee benefits. The TML-GBRP was
formed as an employee benefit welfare trust that expires in twenty-one years, or on
5/1/00. The 1979 Trust allows the TML-GBRP Trustees to transfer all assets to another
trust established for substantially similar purposes.
On 9/17/99, the TML Intergovernmental Employee Benefits Pool (TML-IEBP) was
formed. The TML-IEBP will operate under Chapter 172 of the Local Government Code,
the Interlocal Cooperation Act (Chapter 791 of the Government Code), and have
substantially similar purposes as the TML-GBRP. The original Trustees and officers of
the TML-IEBP are the same as the current TML-GBRP Trustees and officers, and the
Polices and Procedures will be the same. On 1/28/00 the TML-GBRP Board of Trustees
voted to transfer all assets and liabilities to the TML-IEBP on 4/1/00 and to terminate the
TML-GBRP Trust on the same date. Also, on 1/28/00 the TML-IEBP Board of Trustees
voted to accept the transfer of all TML-GBRP assets and to assume responsibility for all
TML-GBRP liabilities as of 4/1/00.
Other than the requirement of having your Council or Governing Body adopt and execute
the enclosed Interlocal Agreement with the TML-IEBP the change will be almost
transparent for Members. Please place on your March agenda having your Council or
Governing Body adopt the Interlocal Agreement with the TML Intergovernmental
Employee Benefits Pool and return it to my attention. If you have other service
agreements (e.g. COC Administration, Flexible Spending Account Administration or
Retiree Direct Billing) you will also find enclosed a "Consent To Assignment
Agreement" that will need to be signed and returned with the Interlocal Agreements.
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Daths Lubbock Houston
With the transfer of all TML-GBRP assets and liabilities to the TML-IEBP on 4/1/00,
you will notice some changes, but they will primarily be associated with getting used to
the new name. For the remainder of this plan year, 10/1/99-9/30/2000, the current benefit
booklets, enrollment forms, change forms and. employee ID cards can continue to be
used. When new booklets and ID cards are issued in September, for the plan year
beginning 10/1/00, they will have the TML-IEBP name and logo During the remainder
of this plan year as we reprint forms,when the current supply is gone,they will be printed
with the new name and logo, and you will receive a supply of the new forms.
There will be some changes that you will notice as of 4/1/00 The first change that you
will notice will be that the April bill, which will be prepared around 3/20/00, will be for
the TML-IEBP and payment should be made out to the TML Intergovernmental
Employee Benefits Pool. Your payment will still be sent to the same bank lock box. All
phone numbers and addresses for the TML-IEBP will remain the same as for the TML-
GBRP You will be able to access the Web Site under either www tmlgbrp.org or
www tmliebp.org. Other changes that you will notice are if you have a new enrollee with
an effective date of 4/1/00, or later, they will receive a TML-IEBP ID card. In addition,
beginnmg 4/1/00 all checks issued for payment of claims will be issued by the TML-
IEBP, no matter when the service was rendered.
Prior to the end of March you will receive your April issue of Healthy Lifestyles The
April issue will be dedicated to information for your employees about the change to
TML-IEBP Please assist us by promptly distributing the April issue of Healthy
Lifestyles to you employees upon receipt.
If you have any questions or need additional information in order to present this
information and the TML-IEBP Interlocal Agreement to your Council or Governing
Body please contact your Field Service Representative for assistance.
The TML-GBRP Board of Trustees and staff look forward to this change and being able
to continue to serve the needs of political subdivisions as the TML Intergovernmental
Employee Benefits Pool.
0677iA
(717I:eale
Executive Director
Enclosures
TML
INTERGOVERNMENT_AI. EMPLOYEE
BENEFITS RISK POOL
TML
Intergovernmental
Employee Benefits
Pool
I ITEP, OC
· RISK PARTICIPATING MEMBER
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
of the 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 board and 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 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 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 agreement, together with
any other property which may become subject to this 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.
lnteflocal Agreement (rev. 10/I/99) Page 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.
"Plan" or "Plans" mean the TML-IEBP 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.
"TML-IEBP" means the TML Intergovernmental Employee Benefits Pool.
The Employer Member agrees to be bound by this Interlocal Agreement, the Trust Agreement
Establishing the TML Intergovernmental Employee Benefits Pool, and the policies and
procedures established by the TML4EBP which collectively 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 Summary 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.
Except as may be otherwise specified in the TML-IEBP Trust Agreement Establishing the TML
Intergovernmental Employee Benefits Pool, this agreement may be terminated by either the
Employer Member or the TML-IEBP upon 30 days written notice which will become effective
on the first day of the month following the 30 day notice. The TML-IEBP may terminate this
agreement for non-payment of a payment or contribution immediately upon delinquency as
determined by the TML-IEBP rules and regulations. Retroactive termination is not p6rmitted
and any terminated Employer Member shall not be entitled to any future excess contribution
refunds or credits.
Every Employer Member shall furnish all the information the TML-IEBP deems necessary and
useful for the purposes of this agreement and shall abide by the rules and regulations adopted for
the administration of the benefits plans. The TML-IEBP may amend the rules, regulafions and
Trust Agreement Establishing the TML Intergovernmental Employee Benefits Pool at anytime to
the extent it deems advisable except that no amendment shall change the purpose of the TML-
IEBP. The TML-IEBP may employ and contract with a third party administrator.
The TML-IEBP will purchase excess loss coverage or reinsurance as provided in Chapter 172,
Local Government Code, and all Employer Members are subject to the terms and conditions of
any such excess loss coverage or reinsurance agreement.
Interlocal Agreement (rev. 10/1/99) Page 2
10.
11.
12.
13.
14.
15.
16.
Each Employer Member will designate and appoint a coordinator of department head rank or
above 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.
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.
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 annually.
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, Tire 9, Property Code).
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 employees benefits.
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.
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.
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.
The Employer Member and the TML-IEBP may contract for additional administrative services
related to the Employer Member's employee benefit programs.
The Employer Member agrees that no participant shall have any claim against the property of the
trust. The rights of participants are limited to the benefits specified in the Plan.
InterloealAgreement(rev. 10/I/99) Page 3
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-GBRP 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.
19. If any part of this 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 agreement shall be in
Austin, Travis County, Texas.
20. This agreement represents the complete understanding of the TML-IEBP and the Employer
Member and may not be amended, modified or altered without the written agreement of both
parties.
21. The initial teiin 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 agreement by executing and returning the
rerate notice and benefit selection foi in as authorized at the inception of this agreement.
This agreement is entered into for the Employer Member under authorization of
City of Pearland
(EMPLOYER MEMBER)
at duly called meeting held on March 27, 2000
(Date of Meeting)
By
Glen Erwin
(Typed or Printed Name)
Authorized Official Title City Manager
Date 3-28-2000
This Agreement entered into and Appointment Accepted By:
I'he TML Intergovernmental Employee Benefits Pool at Austin, Texas
By
Date
Interlocal Agreement (rev. 10/1/99) Page 4
TO BE COMPLETED BY EMPLOYER MEMBER:
EMPLOYER MEMBER BENEFITS COO " 1 INATOR
Name
Title
Mailing Address
Mary Hickling
Director of Administrative Services
3519 Liberty Drive
Street Address (if different from above)
City/State/Zip
Phone
Fax
E-mail
Pearland, Texas 77581
281-652-1656
281-652-1706
mhicklin@ci.pearland.tx.us
Interlocal Agreement (rev. 10/1/99) Page 5