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HomeMy WebLinkAbout10592RESOLUTION NO. 10592 A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND STEEL CITY AGENCIES, INC. RELATING TO RISK MANAGEMENT SERVICES AND A SERVICE AGREEMENT EXTENSION BETWEEN THE CITY OF PUEBLO, SCA CLAIMS MANAGEMENT SERVICES AND HEWITT, COLEMAN & ASSOCIATES, INC. RELATING TO WORKERS' COMPENSATION BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: The following agreements, 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. relating to Risk Management services, and (b) Service Agreement Extension between the City of Pueblo, SCA Claims Management Services and Hewitt, Coleman & Associates, Inc. relating to workers' compensation. The President of the City Council is authorized to execute and deliver the above referenced agreements in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2 This Resolution shall become effective upon final passage and approval. APP 1; 4 A 'i • - R ..= • A, t INTRODUCED December 12, 2005 BY Michael Occhiato Councilperson � # i65 o a D D 0 Background Paper for Proposed RESOLUTION AGENDA ITEM # 1 8 DATE: Dec 12, 2005 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND STEEL CITY AGENCIES, INC. RELATING TO RISK MANAGEMENT SERVICESANDA SERVICE AGREEMENT EXTENSION BETWEEN THE CITY OF PUEBLO, SCA CLAIMS MANAGEMENT SERVICES AND HEWITT, COLEMAN & ASSOCIATES, INC. RELATING TO WORKERS' COMPENSATION ISSUE Should the City Council extend for 1 year the professional services contracts for risk management and workers' compensation services? RECOMMENDATION Approve the extension. BACKGROUND Steel City Agencies, Inc. provides risk management services for the City and its departments and agencies for a services charge of $6,600 per month. The current Agreement expires December 31, 2005. The Professional Services Contract is for one (1) additional year from January 1, 2006 to December 31, 2006 upon the same terms and conditions as the contract for 2005. SCA Claims Management Services and Hewitt, Coleman & Associates provide claims and other services relating to the City's self- funded workers' compensation program. The current agreement expires December 31, 2005 and will be extended upon the same terms, conditions and for one (1) additional year from January 1, 2006 to December 31, 2006. FINANCIAL IMPACT See Background. PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND STEEL CITY AGENCIES, INC. THIS AGREEMENT is made as of the Zak A day of December, 2005, 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 ". 1 SERVICE AGREEMENT SCA 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 one -year term of this agreement will begin on January 1, 2006, and shall continue through December 31, 2006. The City may terminate 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. 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. Page 2 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. 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. Page 3 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 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 including claims involving liability coverage for the Pueblo Memorial Airport and Pueblo Transportation; however, employee group health claims 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 (CIRSA) 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. 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. Page 4 G. LOSS MANAGEMENT SCA shall evaluate loss settlements in relation to property schedule. SCA shall participate in settlements of third -party liability claims with City Attorney, CIRSA, and CIRSA legal counsel. H. MANAGE AIRPORT LIABILITY SCA shall manage the liability coverages, including Pollution Liability, for the airport owned and operated by the City of Pueblo. 4. 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. 5. 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. Provide to SCA without charge a set of the Code of Ordinances of the City of Pueblo, including all updates and changes during the term of this agreement. Notify SCA 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 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 information made available to SCA by City. Page 5 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 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 as confidential. 6. SERVICES TO ENTERPRISE FUNDS All services included in this agreement will be provided to all Enterprise Funds. The City, at its option, can charge back to Enterprise Funds a portion of the fees in Paragraph 7. SCA shall provide a breakdown of Pool costs on Enterprise Funds and shall provide actual losses sustained by Enterprise Funds. 7. FEES SCA's monthly fee shall be Six Thousand Six Hundred and No/ 100 Dollars ($6,600.00) 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. 7.1 Insurance, if any, purchased for City will be net of fees or commissions. All commissions otherwise payable to SCA shall be paid over to City as a credit to the annual fee. Indirect profit sharing, if any, earned by SCA will remain with SCA. Any direct profit sharing pertaining to the City, if any, earned by SCA will be disclosed to City. 7.2 NO INSURANCE SCA is 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. 8 KEY PERSONNEL 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. Page 6 9 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 shall be liable to the City only for their respective negligent acts or omissions in carrying out their duties under this agreement. 10 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 1 City Hall Place Pueblo, CO 81003 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. Page 7 IN WITNESS WHEREOF, this agreement has been executed by the parties on the day and date first set forth. CITY OF PUEBLO ATTEST: City Jerk APPROVED AS TO FORM: CITY ATTORNEY A Municipal Corporation Presi ent of City oi4nc 1 Byv STEEL CITY AGENCIES, INC., A COLORADO CORPORATION, vi Male] ATTEST: Secretary 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, 2006. All other terms and conditions of the Service Agreement will remain the same. Dated at Pae6/ 200S . this (a day of &c haw . THE CITY OF PUEBLO, COLORADO A Municipal Corporation , By: Robert D. S&I I ng, Jr. Title: President of Citv Counc' HEWITT, COLEMAN & ASSOCIATES, INC., CO 0 Titl SCA CLAIMS MANAGEMENT SERVICES, A COLORADO LIMITED LIABILITY COMPANY, SUBCONTRACTOR