Loading...
HomeMy WebLinkAbout11188RESOLUTION NO. 11188 A RESOLUTION APPROVING A SERVICE AGREEMENT BETWEEN THE CITY OF PUEBLO AND SUMMIT POINT CONSULTING RELATING TO WORKERS' COMPENSATION BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Service Agreement between the City of Pueblo and Summit Point Consulting 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 and deliver the Service Agreement 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. INTRODUCED December 31, 2007 ATTESTED BY APPROVED: ESID NTof City Council CITY CLERK Randy Thurston Councilperson Res. 11 188 D �I � Background Paper for Proposed RESOLUTION AGENDA ITEM # /S DATE: December 31, 2007 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A SERVICE AGREEMENT BETWEEN THE CITY OF PUEBLO AND SUMMIT POINT CONSULTING RELATING TO WORKERS' COMPENSATION ISSUE Should City Council approve an agreement with Summit Point Consulting? RECOMMENDATION Approve the agreement. BACKGROUND Summit Point Consulting will act as third party administrator for City's self- insured workers' compensation program and claims for an annual fee as follows: 2008 - $45,500, 2009 - $53,708 and 2010 - $58,273. Fees payable after 2008 are subject to funds being appropriated and budgeted specifically for such purpose. Computer access will be provided for an additional fee of $10,000 beginning January 1, 2009. City may terminate the agreement upon 60 days notice. FINANCIAL IMPACT See Background. JAN 1 4 2008 SERVICE AGREEMENT Iu " Fccrr- 4c� RECITALS This agreement confirms Summit Point Consulting (hereinafter referred to as "SPC ") and Hub International Southwest Agency, Limited (hereinafter referred to as "HUB ") mutual intention to transfer the Third Party Claim Administration (TPA) for the City of Pueblo (hereinafter referred to as "Employer ") workers' compensation claims from HUB to SPC. AGREEMENT In consideration of the mutual covenants herein contained, SPC, an independent contractor, does hereby contract and agree with The City of Pueblo, hereinafter . referred to as the "Employer as follows: Appointment. The Employer hereby appoints SPC as Service Agent upon the terms and conditions hereinafter set forth. 2. Term. This Service Agreement shall be effective from 12:01 a.m., January 1, 2008, to December 31, 2010. The financial obligations of the City in any fiscal year after fiscal year 2008 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 SPC. SPC may withdraw from this agreement upon sixty (60) days' written notice to the City. 3. Duties and Authority of SPC. The services to be performed by SPC, 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 the administration of Workers Compensation injuries 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 appropriate claims reporting software. SPC will provide quarterly medical cost saving reports to Employer. SPC will convert existing claims data from the Pacaso system to its System at no additional cost to Employer. SPC will provide access to the adjuster's notes and reporting software to HUB and Employer approximately 16 weeks from receipt of the Pacaso data free of charge for the remainder of 2008. Computer access will be provided as long as this Agreement remains in effect for an additional fee of $10,000 per year beginning on January 1, 2009. Agreement Page 1 ii JAN 1 4 2008 3.4 It is expressly understood that SPC shall not qe rgUrft� .tq advance its own funds to pay losses or Ilociv expenses hereunder. It is further understood tha i mployer fails to provide funds sufficient to allow required payments to be made timely, SPC will have no obligation to perform any further services and may terminate this Agreement upon three (3) days' written notice. The Employer is liable for any fees, fines, or penalties resulting from any delays in providing funds to SPC. 3.5 Make such investigations as it deems necessary to determine such obligations and negotiate the settlement of and /or affect the compromise of any claims or suits arising out of such obligations. Claims handling and settlements will be handled as outlined by the Quality Service Plan (hereinafter referred to as "ASPS). 3.6 Arrange for the defense of any claims, suits, or other proceeding arising out of, or claimed to arise out of, such obligations per the QSP. The cost of any such defense shall be paid by the Employer and included in its allocated loss adjustment expenses. 3.7 Furnish claim reports and records per the QSP, which will include 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. All work, data, drawings, designs, plans, reports, studies, computer programs (nonproprietary), computer input and output, analyses, tests, maps, surveys, or any other materials developed and maintained as a part of these contracted services are and shall be the sole and exclusive property of the Employer. Claim files will be maintained and stored by SPC for a period of seven (7) years from the date of closing as long as this Agreement or a renewal of such Agreement remains in effect. At the end of this period or the termination of this agreement, all physical records will be turned over to the Employer. All computer records will be maintained indefinitely as long as this Agreement or its renewal remains in effect. Upon termination of this Agreement an extract of the data will be provided to the Employer for an agreed upon fee. 3.8 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 at an additional rate of $100 per hour. Agreement Page 2 - .• rJ 1 4 2008 U 4. Compensation. The annual service fee payable during the term of ft @;FGCdcKVicE Agreement by the Employer to SPC in consideration of the services , utlirug oFFiCE above shall be: Term Fee Jan! 1 2008 — December 31. 2008 $49,500 January 1 2009 — December 31, 2009 $53,708 January 1 2010 —December 31 2010 $58.273 These fees will be billed at the beginning of each month to Employer and shall be due and payable by the Employer upon receipt. In addition, the Employer will be billed each month for the estimated banking fees and charges. If claim volume increases by greater than ten percent (10 %) in any term, this fee is subject to renegotiation. 5. Termination. In addition to the provisions of paragraph 2 above, either Employer or SPC 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, SPC 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 SPC by this Agreement. SPC shall further assist in the orderly transition of such administration. At the Employer's option, SPC agrees to continue the handling of all claims open 45 days after termination of this Agreement to conclusion for a fee of $300.00 per claim. This fee does not include access to the claims management system as indicated in Section 3.3. 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, 2007. 6. Claims Payments. SPC will maintain an escrow account in its name and will issue claim checks out of this account. This account will be funded by the Employer with an initial deposit equal to four (4) weeks of expected claim payments. SPC will provide Employer a weekly check register and the Employer will make an ACH deposit equal to the amount of the weekly check register to restore the escrow account to its original balance. Such ACH deposit will be made within one week of receipt of the check register. The Employer is responsible only for the bank fees and charges to maintain the escrow account. 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. Agreement Page 3 JAN 1 4 2008 Indemnification. To the extent permitted by law, SPC will jndeF=Wysnd save harmless Employer from all claims, losses, damages, expenses caused by or resulting from the negligence or fraud of SPC 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. 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. 13. SPC certifies that it does not knowingly employ or contract with an illegal alien nor will SPC enter into a contact with a subcontractor that fails to certify to SPC that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. If the SPC obtains actual knowledge that a subcontractor performing work under this contract knowingly employs or contracts with an illegal alien, SPC shall: A. Notify the subcontractor within three (3) days that the SPC has received such knowledge; and B. Terminate the subcontract with the subcontractor if within three (3) days of receiving the notice required pursuant to subparagraph A. above the subcontractor does not stop employing or contracting with the illegal alien; except that SPC shall not terminate the contract with the subcontractor if, during such three (3) days, the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. SPC will comply with any reasonable request by the Colorado Department of Labor and Employment (hereinafter referred to as "CDLE ") made in the course of an investigation that CDLE is undertaking pursuant to its authority under 8- 17.5- 102(5), C.R.S. Violation of the provisions of Item 13 by SPC shall constitute a breach of contract and grounds for termination. In the event of such termination, SPC shall be liable for the City's actual and consequential damages. Agreement Page 4 F. N 1 4 2008 CJFU, vamviCE Dated at Pueblo, Colorado, as of .�i ee�w �z - 71 20 NVER OFFICE SUMMIT POINT CONSULTING INDEPENDENT CONTRACTOR By: Title: Prvs; A- f_ CITY OF PUEBLO, COLORADO By: Title: President of 'Ci.ty.— Council r 15. �r�, &rd�XAJ&l HUB INTERNATIONAL SOUTHWEST /SCA By: Ral h 4. Williams Title: Senior Executive Vice Presid Agreement Page 5