PRESENTER: Presenter
Rebecca Miears Human Resources & Risk Management Director
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SUBJECT: Title
Ratification for approval of the annual contract renewal with Texas Municipal League for the purpose of providing workers’ compensation, liability, and property insurance coverage.
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DEPARTMENT: Human Resources & Risk Management
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COUNCIL DISTRICTS IMPACTED: NA
BACKGROUND INFORMATION:
The City of New Braunfels is renewing its Workers’ Compensation coverage, Property and Liability coverages for the FY 2024 year with Texas Municipal League (TML). TML is a non-profit association that exists to provide services to Texas political subdivisions at “pooled” rates. The League exists solely to provide services to Texas municipalities. The city uses TML through an interlocal agreement. 97% of Cities in Texas utilize TML for their lines of service. They are the largest pool of its type in the United States, and has the necessary knowledge, multi-discipline experience and areas of expertise to provide recommendations that will enhance our programs.
The contract term is October 1, 2023 to September 30, 2024 with automatic annual renewals. The term of these Agreements and the self-insurance provided to the “pool” member is continuous with payment of the annual membership fees and rates. The staff is satisfied with the services provided and recommends the renewal for contact for FY 2024. Staff requested approval of this annual spend on the bulk spend agenda on October 9, 2023 with an estimated spend of $1,900,000. However, the final renewal amount is $2,270,398.84 due to the addition of new facilities, an increase in workers’ compensation fees and an increase of property rates and law enforcement liability rates due to inflation.
ISSUE:
Maintain fiscal stability of City operations.
FISCAL IMPACT:
The cost of liability, property/casualty insurance, as well as workers compensation coverage, has been incorporated into the FY 2024 departmental budgets. Therefore, sufficient funds are available to renew the contract as described above.
Recommendation
RECOMMENDATION:
Staff recommend a ratification for approval of the annual contract renewal with Texas Municipal League for the purpose of providing workers’ compensation, liability and property insurance coverage.