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REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:August 8, 2022 Requested By:Corby Alexander, City Manager Source of Funds:N/A Department:Administration/CMO Account Number:N/A Amount Budgeted:N/A ReportResolutionOrdinance Amount Requested:N/A Exhibits:TMLIRP Board Nomination Notice Budgeted Item:YesNo SUMMARY& RECOMMENDATION History of the Texas Municipal League Intergovernmental Risk Pool (TMLIRP): In 1973, the Legislature passed legislation requiring Texas cities to provide workers' compensation coverage to employees. The cost of workers' compensation through traditional insurers, however, was extremely cost prohibitive and cities found it difficult to secure coverage. Fortunately, the law allowed cities to meet the requirement by creating a self-insurance program under theInterlocal Cooperation Act. It was this legislation that allowed for the creation of the Risk Pool. By July 1, 1974, the Texas Municipal League Workers' Compensation Joint Insurance Fund was created. During the first year, 130 cities became members. Through this partnership, cities in Texaswere able to join forces by pooling funds together and managing risks as a unified team. The impact of the program on Texas cities was significant. By year five, membership was at almost 500 members. In 1982, the Liability Fund was added for similar reasons; liability insurance coverage was scarce and expensive. Shortly thereafter in 1983, Property Fund was added as well. By 1989, membership had grown to 850 members strong in Workers' Compensation, 500 members in Liability, and 400 members in Property. In 1989, the Funds were collectively renamed the Texas Municipal League Intergovernmental Risk Pool. Today the Risk Pool serves almost 2800 members, providing a stable and economic source of risk financing and loss prevention services. The City of La Porte is one of the risk pool members. As a member, the City has an opportunity to make a nomination to its board of directors. Mayor Rigby has expressed an interest in being the City of La Porte’s nominee and representative on the TMLIRP Board of Directors. ACTION REQUIRED BY CITY COUNCIL