01-20-05 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting

Browse Search

Excerpts From Texas Local Governmental Code: CHAPTER 791. INTERLOCAL COOPERATION CONTRACTS 8 791.001. Purpose The purpose of this chapter is to increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state. It is clear that the Legislature understands that public entities can purchase more efficiently and more effectively through combined purchasing than they can individually. The Interlocal Cooperation Act provides the vehicle for public entities to join together and benefit from volume purchasing. There are two basic models for "Collective Purchasing" of employee benefits utilizing the Interlocal Cooperation Act. The first model is the most efficient and produces the most cost effective results. In the first model all participating entities reach agreement on a package of benefits that is comprehensive enough so that each entity can select the program(s) they want for their employees, and proposals are sought for the entire benefit package. The second model is to develop individual specifications for each participating entity and to submit the individual specifications to the carriers at the same time. C-CBS recommends the first model because it produces the most cost effective proposals. Using this model for example the specifications would be for an HMO, a High Option PPO and a Low Option PPO. The Interlocal contract would provide for all three Plans and the entity can select which Plan or Plans they want to make available for their employees. The number of Plans solicited is based on the needs of the participating entities and the total number of lives. cS 791.025. Contracts for Purchases (a) A local government, including a council of governments, may agree with another local government or with the state or a state agency, including the General Services Commission, to purchase goods and services. (b) A local government, including a council of governments, may agree with another local government, including a nonprofit corporation that is created and operated to provide one or more governmental functions and services, or with the state or a state agency, including the General Services Commission, to purchase goods and any services reasonably required for the installation, operation, or maintenance of the goods. This subsection does not apply to services provided by firefighters, police officers, or emergency medical personnel. ./""