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