HomeMy WebLinkAbout10012RESOLUTION NO. 10012
A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT BETWEEN PUEBLO, A
MUNICIPAL CORPORATION AND STEEL CITY AGENCIES, INC., AND A SERVICE AGREEMENT
EXTENSION BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND SCA CLAIMS
MANAGEMENT SERVICES, AND HEWlTT, COLEMAN & ASSOCIATES, INC. RELATING TO RISK
MANAGEMENT SERVICES AND WORKERS' COMPENSATION INSURANCE, AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND ADOPTING A RISK
MANAGEMENT POLICY STATEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The following: (a) Professional Services Contract Between The City of Pueblo And Steel City
Agencies, Inc., dated December 22, 2003 relating to risk management services; (b) Service
Agreement Extension between the City of Pueblo, SCA Claims Management Services, and Hewitt,
Coleman & Associates, Inc., dated December 22, 2003 relating to workers' compensation insurance;
and (c) Risk Management Policy Statement, copies of which are attached hereto, having been
approved as to form by the City Attorney, are hereby approved.
SECTION 2.
The President of the City Council is authorized to execute and deliver the Contract and
Service Extension Agreement described in Section l(a) and (b) 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 22, 2004
BY Al Gurule/Councilperson
APPROVED: Bill Sova/President of City Council
ATTESTED BY: Gina Dutcher/City Clerk
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 5
DATE: December 22, 2003
DEPARTMENT: Law Department
TITLE
A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND STEEL CITY
AGENCIES, INC., AND A SERVICE AGREEMENT EXTENSION BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND SCA CLAIMS MANAGEMENT
SERVICES, AND HEWITT, COLEMAN & ASSOCIATES, INC. RELATING TO RISK
MANAGEMENT SERVICES AND WORKERS' COMPENSATION INSURANCE,
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME,
AND ADOPTING A RISK MANAGEMENT POLICY STATEMENT
ISSUE
Should the City Council adopt the Resolution and approve the documents therein
described?
RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The agreement for professional risk management services with Steel City Agencies,
Inc. expire December 31,2003. The workers' compensation administrative contract
with SCA Claims Management Services and Hewitt, Coleman & Associates expires
December 31,2003. Both agreements are hereby extended to December 31,2005
so that they expire at the same time. The services to be performed are those
presently being performed under identical existing agreements.
FINANCIAL IMPACT
Fees payable under the agreements for 2004 and 2005 are the same as those now
being paid. City's self-funded workers' compensation services - 2.6% of annual
manual premium for claims administration; and professional risk management
services - $6,600 per month.
PROFESSIONAL SERVICES CONTRACT
BETWEEN
THE CITY OF PUEBLO
AND
STEEL CITY AGENCIES, INC.
THIS AGREEMENT is made as of the 22nd day of December, 2003, by and
between the City of Pueblo, a municipal corporation, hereinafter called "Pueblo"
or "the City," and Steel City Agencies, Inc., a Colorado corporation dba SCA
Insurance hereinafter called 'SCA".
SERVICE AGREEMENT
SCA shall provide to the City and the City shall pay for specified risk
management services, all in accordance with the tei:ms of this agreement.
TERM
The two-year term of this agreement will begin on January 1, 2004, and
shall continue through December 31, 2005. The financial obligations of the
City for fiscal year 2005 is subject to funds being appropriated and
budgeted specifically for such purpose. The City may temdnate this
agreement upon sixty (60) days' written notice to SCA. SCA may withdraw
from this agreement upon sixty (60) days' written notice to the City.
3
OBLIGATIONS OF SCA
As consideration for payment of the fee by the City hereunder, SCA shall
provide the following services to City:
A. RISK MANAGEMENT SERVICES
SCA shall provide Risk Management services relating to Workers'
Compensation and third-party liability which will include:
The evaluation of contractual insurance provisions relating to
Workers' Compensation insurance or reinsurance.
In consultation with the City attorney, review purchase orders for
hold harmless agreements and the provisions relating to Workers'
Compensation and liability exposures.
Page 2
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.
Investigate employee injuries as they occur, when called by the City
to do so.
Assist in the development of a plan that will provide incentives to City
departments and their employees for the reduction of workers'
compensation claims.
B. 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 pertaining to the
self-insured workers' compensation program through SCA in exchange
for receiving the specific services outlined in this section.
Page 3
C. WORKERS' COMPENSATION MANAGEMENT
SCA shall answer questions from the City Manager and Director of
Human Resources relating to technical workers' 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 workers'
compensation claims and reserves as to frequency and severity by
specific department with the Director of Human Resources and at
request with the City Manager.
D. 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 risk
transfer. 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. Ralph Williams 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 meet with City
personnel, at their request, relating to Insurance Management program.
City is under no obligation to purchase any insurance pertaining to
insurance provided to City through SCA in exchange for receiving the
specific services outlined in this Agreement.
E. LOSS MANAGEMENT
SCA shall receive and process infommtion on all claims for the City or
against the City involving property damage or third-party claims
normally covered by property and casualty insurance including claims
involving liability coverage for the Pueblo Memorial Airport and Pueblo
Transportation; however, employee group health claims are specifically
Page
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, 8CA shall generate a loss notice and shall
assign the claim to the Colorado Intergovernmental Risk Sharing Agency
(CIRSA) or to other insurance cm'riers, 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.
F. RISK MANAGEMENT
SCA shall inspect and update underwriting information and valuations
for all City property on an annual basis. Loss control information shall
be furnished to City departments and the Office of the City Manager.
G. LOSS MANAGEMENT
SCA shall evaluate loss settlements in relation to property schedule.
H. MANAGE AIRPORT LIABILITY
SCA shall manage the liability coverages for the airport owned and
operated by the City of Pueblo.
SERVICES NOT INCLUDED
SCA will provide only the services specified in this 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
under this agreement: legal services related to claims.
COOPERATION OF CITY
The City shall cooperate with SCA in carrying out their respective functions
under this agreement. Specifically, the City shall:
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 without charge copies of all city documents, records,
ordinances, resolutions and other information of any kind affecting
SCA's duties under this agreement.
Page 5
Provide to SCA without charge a set of the Code of Ordinances of the
City of Pueblo, including all updates and changes during the te~m of
this agreement.
Notify SCA as promptly as possible upon receiving infoiu,ation about
a new claim or a potential claim ag~irtst the City.
Make its personnel and records available to SCA and the designated
claims investigator for the purpose of investigating any claim.
Operate under the Health Insurance Portability and Accountability
Act of 1996 (HIPAA) in making protected health information available
to SCA. SCA is familiar with HIPAA's Privacy and Security
Requirements and will secure and maintain privacy of any medical
infom~ation made available to SCA by City.
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.
Upon te~,ination of this agreement and request of the City, all City documents
and ordinances shall be returned to the City. To the extent perufitted by law all
information and documents provided or furnished by the City under this
agreement shall be treated by SCA as confidential.
SERVICES TO PUEBLO TRANSPORTATION COMPAI~
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 7.
FEES
SCA's monthly fee shall be Six Thousand Six Hundred and No/100 Dollars
{$6,600.00) for each month during the te~m 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.
7.1
COMMISSIONS
SCA 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 shail be credited to the City's fees in
Paragraph 7. SCA shall make an annual accounting, to the City of
insurance purchased through SCA for the City, if any, showing premiums
and commissions earned.
Page 6
7.2
8
9
10
NO INSURANCE
SCA are not an insurance company. No insurance is to be provided by SCA
and no insurance is included in the fee set for services under this
agreement.
KEY PER1SONNEI,
It is understood by the parties that the City is relying on the availability of
Ralph Williams, CPCU; John Putnam, CPCU; and Don Learned, CIC, as key
personnel under this contract. If at any time any two of these persons
cease to be active in the business or 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.
DUTIES OF SCA
SCA 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, 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 sh~ll be liable to the City only for their respective
negligent acts or omissions in cm~ying out their duties under this
agreement.
NOTICES
Any notices sent under this agreement shall be sent by certified mail,
return receipt requested, to:
Steel City Agencies, Inc, dba SCA Insurance
P.O. Box 4316
Pueblo, CO 81003-0316
City of Pueblo
City Manager
i City Hall Place
Pueblo, CO 81003
Page 7
11
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.
IN WITNESS WHEREOF, this agreement has been executed by the parties on the
day and date first set forth.
ATTEST:
City ~rk
CITY OF PUEBLO
A Municipal Corporat~
President/~~ncil
By: ~ '
Bill Sova
APPROVED AS TO FORM:
CITY ATTORNEY
ATTEST:
Secretary
STEEL CITY AGENCIES, INC.,
A COLORADO CORPORATION,
DBA SCA INSURANCE ~
r/~e~idtnt/CEd- -
RISK MANAGEMENT POLICY STATEMENT
The City of Pueblo hereby adopts the following policy for their property, casualty,
liability, and workers' compensation risk management program.
The risk management program and its administration are functions involving all
departments, (appointed commissions, boards, committees, agencies, and authorities),
non-profit corporations sponsored by the City and City employees. The principal
objective of the risk management program is to protect the City, its Council Members,
Managers, Department Heads, Members of City Commissions, Boards, Committees,
Agencies, Authorities, Non-Profit Corporations, their Officers and employees, and its
assets from liability, casualty and other losses at the lowest possible cost. The
program is to be conducted as efficiently and economically as possible with centralized
control to assure uniformity of practice and procedure.
The principal objective of the program is to be achieved, as determined by good
business judgment, through a balanced use of pooling arrangements, purchased
insurance, deductibles, transfer of risk, control of losses of all types, and governmental
immunity, as appropriate.
The designated Risk Manager for the City of Pueblo shall supervise the risk
management program. The Risk Manager shall report to the City Manager. Steel City
Agencies, Inc., dba SCA Insurance has been designated Risk Manager under
agreement effective January 1, 2004.
Internal administration of the program shall be delegated to the City Manager.
The contractual transfer of risk (indemnification and hold ha~-mless), and review of
certificates of insurance of parties dealing or contracting with the City of Pueblo shall
be under the supervision of the City Attorney.
The Risk Manager will serve as advisor to the City Manager and shall review and
recommend loss control procedures and practices and recordkeeping for losses and
loss prevention costs. Risk Manager shall maintain internal costs of the risk
management program, including administrative costs and loss costs.
The responsibility for review and recommendation to the City relating to pooling
arrangements with other public entities, the purchase of insurance, self-insurance,
transfer of risk, control of losses, and the use of governmental immunity, shall be
delegated to the Risk Manager. The Risk Manager shall cooperate with the City
Administration in perfmmance of its duties.
The Risk Manager shall report annually at a City Council work session in the
month of November on the current risk management program. The report shall
include costs of the program for pooling, insurance, losses and administration. The
report shall also include recommendations, if any, for significant changes in practices
and procedures.
SERVICE AGREEMENT EXTENSION
BETWEEN
THE CITY OF PUEBLO, SCA CLAIMS MANAGEMENT SERVICES,
AND HEWITT, COLEMAN, ASSOCIATES, INC.
Per Item 2 - Term of the Service Agreement between the City of Pueblo, SCA Claims
Management Services, and Hewitt, Coleman & Associates, Inc., dated November 25,
2002, and approved under Resolution No. 9726, the parties hereby agree to extend
this Agreement by mutual agreement to December 31, 2005.
All other terms and conditions of the Service Agreement will remain the same.
Dated at Pueblo, Colorado this 22nd day of December
2003 .
THE CITY OF PUEBLO, COLORADO
A Municipal Corporation
Bill Sova
Title: President of City Council
HEWITT, COLEMAN &
ASSOCIATES, INC.,
CONTRACTOR
By:
Title: x~'~ s i d~n t
SCA CLAIMS MANAGEMENT
SERVICES, A COLORADO LIMITED
LIABILITY COMPANY,
SUBCONTRACTOR
Title: _VL'~ '~-~-~/
/