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LOCAL GOVERNMENT CODE CHAPTER 172 BENEFITS CONTRACT <br />This agreement (the "Agreement ") is entered into by and between the City of San <br />Marcos, Texas (the "City ") and the San Marcos Area Chamber of Commerce (the "Chamber ") <br />pursuant to the authority granted by Chapter 172 of the Texas Local Government Code. <br />I. RECITALS <br />1.1. Pursuant to Section 172.001 et seq. of the Texas Local Government Code (the <br />"Act "), the City of San Marcos (the "City) directly or through a risk pool may provide health and <br />accident coverage for its officials, employees, and retirees, or any class of officials, employees, <br />or retirees, and employees of eligible affiliated service contractors ( "ASC") qualified for <br />exemption under Section 501 (c) of the Internal Revenue Code. <br />1.2. The San Marcos Area Chamber of Commerce (the "Chamber ") is an eligible ASC <br />that receives funding from the City of San Marcos, a portion of which is applied toward <br />employee health insurance coverage. <br />1.3. Cost savings associated with health insurance will be achieved by enabling the <br />Chamber to participate in a risk pool created by the City, thereby reducing the amount of <br />funding provided to the Chamber annually. <br />II. AGREEMENT <br />In consideration of the mutual benefits and obligations under this Agreement, the parties <br />agree to the terms and conditions set forth below. <br />III. BENEFITS PROVIDED BY THE CITY <br />3.1. Pursuant to a resolution of the City Council of the City of San Marcos, the City <br />established the City of San Marcos Medical and Dental Plan as a risk pool (the "Pool ") under the <br />Act. The City of San Marcos agrees to the Chamber's participation in the Pool as an ASC. The <br />City, directly or through the Pool, will provide the following to eligible Chamber employees and <br />their dependents on the same basis as available to eligible City employees and their dependents: <br />(a) Medical and Dental benefits as defined in the City of San Marcos Medical <br />and Dental Plan Document (partially self - funded); <br />(b) Life insurance products; <br />(c) Disability insurance products; <br />(d) Employee Assistance Program. <br />