Title
Consider recommendation from the Finance/Administrative Committee 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 $160,215, for the period of October 1, 2025 through October 1, 2026.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 09-25-130 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 $160,215, for the period October 1, 2025 through October 1, 2026, 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 board to consider a Finance/Administrative Committee 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, 2025 through October 1, 2026.
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 2025-2026 totals $160,215 and represents an approximate $16,823, or 9.5% decrease over the total current plan year costs. While there were base rate increases in property and mobile equipment coverage, the EAA's overall contribution decreased due to favorable claims experience over the past year, limits and deductibles selected. Increases in EAA contributions for cyber liability and breach response ($600, or 48%) and auto liability/damage ($2,914, or 11%) relate to policy selections and the addition of vehicles.
Attached to this summary is a draft resolution and order which has been reviewed by legal counsel.
At the August 26 meeting, the Finance/Administrative Committee voted to 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 $160,215, for the period October 1, 2025 through October 1, 2026, and authorize the General Manager to take any necessary steps to execute and renew the contracts.
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 $160,215 is available in the 2025 operating budget. By paying the entire premium upfront, the EAA benefits from a 2% discount.