HomeMy WebLinkAbout8297RESOLUTION NO. 8297
A RESOLUTION APPROVING AN AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION
AND SCA CLAIMS MANAGEMENT SERVICES, LLC
AND HEWITT COLEMAN & ASSOCIATES, INC.
RELATING TO WORKERS' COMPENSATION
INSURANCE AND CLAIMS AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE
SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Services Agreement between Pueblo, a Municipal Corporation and SCA Claims
Management Services, LLC and Hewitt Coleman & Associates, Inc. relating to workers'
compensation insurance and claims, a copy of which is attached hereto, having been approved as
to form by the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is authorized to execute and deliver the Service Contract
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 22, 1997
By Charles Jones
Councilperson
ATTEST: APPROVED:
G(
City Clerb President of e Cit Council
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, 1998 to January 1, 1999. On or
before November 1, 1998, 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
determine such obligations a
settlement of and /or effect the
claims or suits arising out of
Where practicable, settlements
consultation with the Employer.
SERVICE AGREEMENT PAGE 1
deems necessary to
nd negotiate the
compromise of any
such obligations.
will be made in
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:
3.1% of standard 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 11, 1997.
SCA CLAIMS MANAGEMENT SERVICES,
A COLORADO LIMITED LIABILITY
COMPANY, SUBCONTRACTOR THE CITY OF PUEBLO, COLORADO
.
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HEWITT, COLEMAN & ASSOCIATES, INC.,
CONTRACTOR
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SERVICE AGREEMENT PAGE 4