Loading...
HomeMy WebLinkAbout09166RESOLUTION NO. 9166 A RESOLUTION APPROVING A SERVICE AGREEMENT BETWEEN THE CITY OF PUEBLO, SCA CLAIMS MANAGEMENT SERVICES AND HEWITT, COLEMAN & ASSOCIATES, INC. RELATING TO WORKERS' COMPENSATION AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Service Agreement dated as of November 27, 2000 between the City of Pueblo, SCA Claims Management Services and Hewitt, Coleman & Associates, Inc. relating to workers' compensation, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute the Service Agreement in the name of the City. INTRODUCED: November 27, 2000 BY Al (-j'lariale Councilperson ATTEST: AP IVED: City C President of the City Council SCA Insurance Steel City Agencies, Inc. To: Tom Jagger, City Attorney - City of Pueblo From: Ralph A. Williams, CPCU � +� Date: January 2, 2001 Re: Service Agreement between the City of Pueblo and SCA Claims Management Services and Hewitt, Coleman & Associates, Inc., relating to workers' compensation (Resolution No. 9166) Enclosed please find a signed original of the above captioned, effective January 1, 2001, to January 1, 2003, to be filed in the City's records. Please note on Page 3, that Charles Warne, President of Hewitt, Coleman & Associates, changed the January 1, 2001, date back to January 1, 1993, as was originally in the previous agreement. RAW / sll Enclosure 1414 West 4th Street • P. 0. Box 4316 • Pueblo, CO 81003 -0316 • (719) 544 -2533 • FAX (719) 544 -6425 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, 2001, to January 1, 2003. The financial obligations of the City in any fiscal year after fiscal year 2001 is subject to funds being appropriated and budgeted specifically for such purpose. The City may terminate this agreement upon sixty (60) days' written notice to SCA or Hewitt. SCA and Hewitt may withdraw from this agreement upon sixty (60) days' written notice to the City. 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 departments 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. 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 departments 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 annual 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. In addition to the provisions of paragraph 2 above, 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, p3 . 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 November 27, 2000. SCA CLAIMS MANAGEMENT SERVICES, A COLORADO LIMITED LIABILITY COMPANY, SUBCONTRACTOR By: Title. THE CIT OF PUEBLO COLORADO . Y' B � 11 / � lI Corinne Koehler Title: President of ( i ty Cminri l HEWITT, COLEMAN & ASSOCIATES, INC., CONTRACTOR By: Title: President SERVICE AGREEMENT PAGE 4