Loading...
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'~ '~-~-~/ /