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HomeMy WebLinkAbout8010RESOLUTION NO. 8010 A RESOLUTION APPROVING AGREEMENTS BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND SCA CLAIMS MANAGEMENT SERVICES AND HEWITT, COLEMAN & ASSOCIATES, INC. RELATING TO WORKERS' COMPENSATION, AND BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND STEEL CITY AGENCIES, INC. AND STEEL CITY AGENCIES, INC., dba MAX DAY AGENCIES RELATING TO RISK MANAGEMENT SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The following agreements, dated as of December 23, 1996, copies of which are attached hereto, having been approved as to form by the City Attorney, are hereby approved: (a) Professional Services Contract between the City of Pueblo and Steel City Agencies, Inc. and Steel City Agencies, Inc., dba Max Day Agencies relating to risk management services. (b) Service Agreement between the City of Pueblo and SCA Claims Management Services and Hewitt, Coleman & Associates, Inc., relating to workers' compensation. SECTION 2. The President of the City Council is authorized to execute and deliver the agreements described in Section 1 hereof in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED: December 23, 1996 BY Al QJDJ1_e Councilperson ATTEST: APPROVED: City Clerk �� Presi nt of the City Council PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND STEEL CITY AGENCIES, INC. THIS AGREEMENT is made as of the 23rd day of December 1996, by and between the City of Pueblo, a municipal corporation, hereinafter called "Pueblo" or "the City," and Steel Agencies, Inc., a Colorado corporation, and Steel City Agencies, Inc., dba Max Day Agencies hereinafter generally called "SCA or MDA ". 1 SERVICE AGREEMENT SCA or MDA shall provide to the City and the City shall pay for specified risk management services, all in accordance with the terms of this agreement. 2 TERM The term of this agreement will begin on January 1, 1997, and shall continue through December 31, 1997. The City may terminate this agreement upon sixty (60) days' written notice to SCA or MDA. SCA and MDA may withdraw from this agreement upon sixty (60) days' written notice to the City. The parties may extend this agreement by mutual agreement. 3 SCOPE OF SERVICES SCA The services to be provided by SCA under this agreement shall be as listed in 3.1, 3.2, 3.3, 3.4, and 3.5. City is under no obligation to purchase any insurance product through SCA in exchange for receiving the specific services outlined in this Agreement. 3.1 SCA RISK MANAGEMENT SERVICES SCA shall provide Risk Management services relating to Worker's Compensation and third -party liability which will include: The evaluation of contractual insurance provisions relating to Worker's Compensation insurance or reinsurance. In consultation with the City Attorney, review purchase orders for hold harmless agreements and the provisions relating to Worker's Compensation and liability exposures. Assist the CPA firm for the City in furnishing detailed information for each open claim year for the self - insured funds in response to the requirements of the Governmental Accounting Standards Board (GASB) Statements No. 10. Assist the City in implementing loss prevention programs. Implementation throughout the City of Safety Committees that will investigate and provide solutions for employee- related losses. This can also include third -party losses, at the option of the City. PAGE 2 Investigate employee injuries as they occur, when called by the City to do so. Assist in the development of a plan that will provide incentive to the City employees in the form of compensation or other benefits for the reduction of workers' compensation claims. 3.2 SCA SELF - INSURED WORKERS' COMPENSATION SERVICES Obtain quotations for claims administration and reinsurance quotes for Self - Insured Workers' Compensation Program on an annual basis. Answer questions by phone or in writing (by fax or mail) as requested by the City from time to time. Provide information to National Council on Compensation Insurance (NCCI) so that experience modification can be developed. Review experience modification worksheets when completed by NCCI. Assist in tax computation with Department of Labor for self - insurance. Place self- insurers bond net of commission. City is under no obligation to purchase any insurance product through SCA in exchange for receiving the specific services outlined in this section. 3.3 SCA WORKERS' COMPENSATION MANAGEMENT SCA shall answer questions from the City Manager and Director of Personnel relating to technical worker's compensation program and benefit issues and questions and respond in writing if deemed appropriate. SCA shall conduct safety meetings in conjunction with risk management meetings to assist in development and maintenance of a comprehensive program for employee safety. SCA shall review and evaluate not less than six times per year open and paid worker's compensation claims and reserves as to frequency and severity by specific department with the Director of Personnel and at request with the City Manager. 3.4 SCA INSURANCE MANAGEMENT SCA shall continue the review of opportunities for self- insurance, cooperative or pooled insurance buying, insurance and /or reinsurance of specific City activities and other methods of risk pooling or transferring. SCA will report on an annual basis at a council work session in the month of November on the current risk management program. SCA will also report to the City upon finding any significant changes in the availability of or need for insurance or reinsurance; upon the request of the City, SCA will report from time to time on the availability of and need for insurance and reinsurance, regardless of whether there is a significant change. PAGE 3 Ralph Williams, Bret Kelly, or Don Learned of SCA shall represent the City as the voting member at any meetings of insurance cooperatives or pooling arrangements, including the Colorado Intergovernmental Risk Sharing Agency. SCA shall attend all meetings of the City Insurance Committee. 3.5 SCA LOSS MANAGEMENT SCA shall receive and process information on all claims for the City or against the City involving property damage or third -party claims normally covered by property and casualty insurance, except claims involving liability coverage for the Pueblo Memorial Airport, and group health employee claims which are specifically not covered by this agreement. Workers' compensation claims will be reported by employees directly to the City's Personnel Department. For each claim reported to SCA, SCA shall generate a loss notice and shall assign the claim to the Colorado Intergovernmental Risk Sharing Agency or to other insurance carriers, as appropriate. The Colorado Intergovernmental Risk Sharing Agency monthly reports and workers' compensation reports will be reviewed with the appropriate City officials at least six times a year and, if required, with the City Insurance Committee. 4 SCOPE OF SERVICES MDA The services to be provided by MDA under this agreement shall be as listed in 4.1, 4.2, and 4.3. City is under no obligation to purchase any insurance product through MDA in exchange for receiving the specific services outlined in this Agreement. 4.1 MDA RISK MANAGEMENT MDA shall inspect and update underwriting information and valuations for all City property on an annual basis. Loss control information shall be furnished to the designated Safety Officer and to the City Insurance Committee. 4.2 MDA LOSS MANAGEMENT MDA shall evaluate loss settlements in relation to property schedule. 4.3 MDA MANAGE AIRPORT LIABILITY MDA shall manage the liability coverages for the airport owned and operated by the City of Pueblo. 5 SERVICES NOT INCLUDED SCA or MDA will provide only the services specified in the previous section and miscellaneous services incidental to such services. It is understood by the parties that the following essential services are NOT to be provided by SCA or MDA under this agreement: legal services related to claims. 6 COOPERATION OF CITY The City shall cooperate with SCA or MDA in carrying out their respective functions under this agreement. Specifically, the City shall: PAGE 4 Designate SCA as Risk Management Officer for the City of Pueblo to administer the risk management policy statement adopted by the City. Provide to SCA or MDA without charge copies of all city documents, records, ordinances, resolutions and other information of any kind affecting SCA or MDA's duties under this agreement. Provide to SCA or MDA without charge a set of the Code of ordinances of the City of Pueblo, including all updating services during the term of this agreement. Notify SCA or MDA as promptly as possible upon receiving information about a new claim or a potential claim against the City. Make its personnel and records available to SCA or MDA and the designated claims investigator for the purpose of investigating any claim. Make diligent efforts to implement the risk management policy developed under this agreement and the reasonable risk management and claims handling procedures recommended from time to time by SCA or MDA. Upon termination of this agreement and request of the City, all City documents and Ordinances shall be returned to the City. To the extent permitted by law all information and documents provided or furnished by the City under this agreement shall be treated by SCA and MDA as confidential. 7 SERVICES TO PUEBLO TRANSPORTATION COMPANY All services included in this agreement will be provided to Pueblo Transportation Company. The City, at its option, can charge back to Pueblo Transportation a portion of the fees in Paragraph 8. 8 FEES SCA and MDA joint monthly fee shall be Six Thousand One Hundred and No/100 Dollars ($6,100.00) for each month during the term of this agreement. Such fee shall be payable to SCA within fifteen (15) days after the end of the month for which the services were provided. The monthly fee for any partial month at the beginning or end of this agreement shall be pro -rated based on a 30 -day month. 8.1 COMMISSIONS SCA and MDA shall not receive commissions from insurance companies or others on insurance purchased for the City while this agreement is in effect. All commissions otherwise payable to SCA and MDA shall be credited to the City's fees in Paragraph 8. SCA or MDA shall make an annual accounting to the City of insurance purchased through SCA or MDA for the City, if any, showing premiums and commissions earned. PAGE 5 8.2 NO INSURANCE SCA and MDA are not an insurance company. No insurance is to be provided by SCA and MDA and no insurance is included in the fee set for services under this agreement. 9 KEY PERSONNEL It is understood by the parties that the City is relying on the availability of Ralph Williams, Bret Kelly, Dick Quigg, and Don Learned as key personnel under this contract. If at any time any two of these persons cease to be active in the business of their respective agencies and to be reasonably available to supervise the services contemplated by this agreement, the City shall have the right to terminate this agreement upon thirty (30) days notice to SCA or MDA. 10 DUTIES OF SCA and MDA SCA and MDA shall have the duty under this agreement to carry out their respective obligations diligently, in good faith and in a professional manner. It is understood by the parties that the City, and not SCA or MDA, will continue to have control of the facilities, employees, agents and activities of city government that lead to claims and potential claims against a municipal government. In this context, SCA and MDA shall be liable to the City only for their respective negligent acts or omissions in carrying out their duties under this agreement. 11 NOTICES Any notices sent under this agreement shall be sent by certified mail, return receipt requested, to: Steel City Agencies, Inc. P.O. Box 4316 Pueblo, CO 81003 City of Pueblo City Manager 1 City Hall Place Pueblo, CO 81003 12 COMPLETE AGREEMENT, CONSTRUCTION This agreement contains the complete agreement between the parties and shall be amended only by a writing signed by all parties. However, as an agreement for professional services, it cannot contain every detail of the continuing professional relationship between the parties; thus, it should be implemented and construed broadly to achieve the intent of the parties as reflected in the agreement. All words shall be given their common and ordinary meanings unless the context otherwise requires. The singular includes the plural and words of one sex include other sexes, as the context may suggest. Captions are finding aids only and are not to be used in the construction of the agreement. PAGE 6 IN WITNESS WHEREOF, this agreement has been executed by the parties on the day and date first set forth. CITY OF PUEBLO A Municipal Corporation President of City Council ATTEST: City Cl rk APPROVED AS TO FORM: CITY ATTORNEY By: STEEL CITY AGENCIES, INC. A Colorado Corporation B Pr si ent ATTEST: Secretary SERVICE AGREEMENT In consideration of the mutual covenants herein contained, SCA Claims Management Services, a Colorado Limited Liability Company, Subcontractor, hereinafter referred to as "SCA ", and Hewitt, Coleman & Associates, Inc., Contractor, hereinafter referred to as "Hewitt ", does hereby contract and agree with The City of Pueblo, hereinafter referred to as the "Employer ", as follows: 1. Appointment. The Employer hereby appoints SCA as Service Agent and Attorney -in -Fact upon the terms and conditions hereinafter set forth. 2. Term. This Service Agreement shall be effective from 12:01 a.m., January 1, 1997 to January 1, 1998. On or before November 1, 1997, Employer and SCA will engage in negotiations for another Service Agreement for a twelve (12) month term upon such conditions and provisions as the parties shall mutually agree. 3. Duties and Authority of SCA. The services to be performed by SCA, during the time this Agreement remains in effect, shall include: 3.1 Act as advisor and representative of the Employer in all matters pertaining to any and all obligations and requirements as imposed by the Colorado Workers' Compensation Act. 3.2 Compile and file notices, reports, and forms required under the Colorado Workers' Compensation Act upon receipt of the first report of injury from the Employer. 3.3 Maintain records by division of all details incident to payments made to fulfill the obligations of the Employer under the Colorado Workers' Compensation Act with mainframe computer and claims reporting software supplied by Hewitt. It is expressly understood that SCA shall not be required to advance its own funds to pay losses or allocated loss expenses hereunder. It is further understood that if Employer fails to provide funds sufficient to allow required payments to be made timely, SCA will have no obligation to perform any further services and may terminate this Agreement upon three (3) days' written notice. 3.4 Make such investigations as it deems necessary to determine such obligations and negotiate the settlement of and /or effect the compromise of any claims or suits arising out of such obligations. Where practicable, settlements will be made in consultation with the Employer. SERVICE AGREEMENT PAGE 1 3.5 Arrange for the defense of any claims, suits, or other proceeding arising out of, or claimed to arise out of, such obligations. The cost of any such defense shall be paid by the Employer and included in his loss experience costs. The selection of the defense attorney will be made by SCA after consultation with the Employer and approval of the City Attorney of Employer. 3.6 Furnish records by division showing: a. The number, type, and severity of accidents. b. All payments made by, or on behalf of, Employer for benefits or expenses. C. Estimate of all reserves for actual, anticipated, or potential benefits or expenses. 3.7 Conduct loss prevention inspections, attend safety meetings, and perform such other duties as requested by the Employer to assist in the conduct of the Employer's Workers' Compensation Loss Prevention Program. Surveys shall be conducted at least quarterly and major loss investigations/ reports will be generated for all claims with total incurred costs in excess of $25,000. 3.8 Use its best efforts to obtain excess coverage for the Employer and obtain such other insurance and bonds, which shall be required either by the Employer, or any appropriate State Workers' Compensation Act. 3.9 In addition to the service fee provided for in Paragraph 4, Hewitt shall receive an annual excess insurance placement fee of $10,000 from the Employer in lieu of commissions as compensation for use of computer mainframe and claim reporting software. 4. Compensation. The annual service fee payable during the term of this Agreement by the Employer to SCA in consideration of the services outlined above shall be: 2.6% of manual premium for claims administration Estimated fees will be billed at the beginning of each quarter and shall be due and payable by the Employer upon receipt. Said fees will be adjusted as per payroll audit at the close of the contract period. SERVICE AGREEMENT PAGE 2 5. Termination. Either party may terminate this Agreement at any time for material breach of contract, gross negligence, wanton misconduct, or fraud. Such termination for cause shall be by written notice specifying the grounds for termination. Said notice shall be effective when received except in the case of material breach of contract. In the case of material breach of contract, said notice shall be effective if the breach is not cured within thirty (30) days of receipt of written notice specifying the material breach. Upon any termination of this Agreement, SCA shall return all books, records, files, and other items pertaining to the Employer and its claims and shall have no further obligation to perform any services imposed upon SCA by this Agreement. SCA shall further assist in the orderly transition of such administration. At the Employer's option, Hewitt agrees, from their Greenville, South Carolina office, to continue the handling of all claims open 45 days after termination of this Agreement to conclusion for a fee of $250.00 per claim. In the event of cancellation or non - renewal of subsequent year contracts, this per claim charge shall be adjusted by the Consumer Price Index changes from January 1, 1993. 6. Claims Payments. SCA shall advise in writing Employer's Director of Finance the amount of claims to be timely paid on a periodic basis. The Director of Finance will deposit in a separate checking account the amount so requested which shall be withdrawn by the Director of Finance at the request of SCA for the sole purpose of paying such claims. 7. Waiver of Breach. Failure to either party to claim a breach or to terminate this Agreement when cause for termination exists shall not constitute a waiver of subsequent breaches or subsequent causes for termination. 8. Indemnification. To the extent permitted by law, SCA will indemnify and save harmless Employer from all claims, losses, damages, penalties and expenses caused by or resulting from the negligence or fraud of the SCA or its officers, employees or agents. 9. Modification. This Agreement may only be amended or modified by a writing signed by the parties hereto. 10. Binding Effect. The Agreement is binding upon and shall inure to the benefit of the parties hereto, their successors by merger or consolidation, and upon their assigns approved by the other party in writing. SERVICE AGREEMENT PAGE 3 11. Entire Agreement. This Agreement constitutes the entire Agreement between the parties. 12. Applicable Law. This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of Colorado. Dated at Pueblo, Colorado as of December 23, 1996. SCA CLAIMS MANAGEMENT SERVICES, A COLORADO LIMITED LIABILITY COMPANY, SUBCONTRACTOR Tit THE CITY OF PUEBLO, COLORADO By: Title: resident of City Council HEWITT, COLEMAN & ASSOCIATES, INC., CONTRACTOR. - - -- f 4 By: Title °:v.._ SERVICE AGREEMENT PAGE 4