Title
Consider EAA staff recommendation to approve the renewal of interlocal cooperation contracts with the Texas Municipal League Intergovernmental Risk Pool for property, casualty, cyber liability and data breach response, and workers' compensation insurance, in the total amount of $170,976,for the period of October 1, 2026 through October 1, 2027.
Body
STAFF RECOMMENDED MOTION:
Move the Finance/Administrative Committee recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors approving the renewal of interlocal cooperation contracts with the Texas Municipal League Intergovernmental Risk Pool for property, casualty, cyber liability and data breach response, and for workers’ compensation insurance, in the total amount of $170,976, for the period October 1, 2026 through October 1, 2027, and authorize the General Manager to take any necessary steps to execute and renew the contracts.
SUMMARY:
The purpose of this agenda item is for the Finance/Administrative Committee to consider an EAA staff recommendation to approve the renewal of interlocal cooperation contracts with Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for property, casualty, cyber liability and data breach response, and workers' compensation insurance for the plan year October 1, 2026 through October 1, 2027.
EAA staff did not competitively bid these insurance services prior to proposing approval of the contract with TMLIRP. Participation in the TML Intergovernmental Risk Pool is considered to be an alternative to purchasing insurance and is characterized as an agreement to self-insure consistent with Statement No. 10 of the Governmental Accounting Standards Board (GASB). As such, competitive bidding requirements do not apply since there is no “purchase of insurance” but rather interlocal cooperation contracts to self-insure. Since 2002, TMLIRP has provided property, casualty, and workers' compensation insurance, to the EAA. The coverage related to cyber liability and data breach response was added in 2024.
The renewal for plan year 2026-2027 totals $170,976 and represents an approximate $10,761 or 6.7% increase over the total current plan year costs. Increases in EAA contributions for property coverage ($6,948, or 8.4%), auto liability/damage ($4,321, or 14.8%), and workers compensation ($624, 2.3%) and are offset by decreases in general liability/errors & omissions ($1,132, 7%). The premium increases are largely attributable to inflationary pressures affecting most major coverage lines. These impacts include updated real and personal property valuations and higher auto liability and physical damage rates driven by underwriting and market conditions within the San Antonio region.
Attached to this summary is a draft resolution and order which has been reviewed by legal counsel.
M/WBE PARTICIPATION:
Texas Municipal League Intergovernmental Risk Pool is not a Minority Business Enterprise vendor.
STRATEGIC PLAN REFERENCE:
This agenda item supports the general EAA mission.
FISCAL IMPACT:
Funding in the amount of $170,976 is available in the 2026 operating budget. By paying the entire premium upfront, the EAA benefits from a 2% discount.