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HomeMy WebLinkAbout6647RESOLUTION NO. 6647 A RESOLUTION APPROVING A SERVICE AGREEMENT RELATING TO WORKERS' COMPENSATION BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND HEWITT, COLEMAN & ASSOCIATES, INC. AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: O VOrPTnM l The Service Agreement relating to workers' compensation between Pueblo, a Municipal Corporation and Hewitt, Coleman & Associates, Inc. effective January 1, 1991, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is hereby authorized and directed to execute the Agreement in the name of and on behalf of Pueblo, a Municipal Corporation and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED: December 10, 1990 By DR. GILBERT GARBISO Councilperson ATTEST: APPROVED: E City Clerk Pr ds ' ent of the City Council SERVICE AGREEMENT In consideration of the mutual covenants herein contained, Hewitt, Coleman & Associates, Inc., hereinafter referred to as the "Company ", does hereby contract and agree with The City of Pueblo, Colorado, hereinafter referred to as the "Employer ", as follows: 1. Appointment. The Employer hereby appoints the Company as Service Agent and Attorney -in -Fact upon the terms and conditions hereinafter set forth. 2. Term. This Service Agreement shall be effective for a period of twelve (12) months from 12:01 a.m. January 1, 1991 to January 1, 1992. On or before November 1, 1991, Employer and Company will engage in negotiations for another Service Agreement for a twelve (12) month term upon such conditions and provisions as the parties shall mutually agree. 3. Duties and Authority of Company. The services to be performed by the Company, 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 of Employer 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 division of all details incident to payments made to fulfill the obligations of the Employer under the Colorado Workers' Compensation Act. Company will make such payments out of funds made available to Company for such purposes. 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. Where practicable, settlements will be made in consultation with the Employer. 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 the Company after consultation with the Employer and approval of the City Attorney of Employer. 3.6 Furnish records by division showing: a. The number, type, b. All payments made for benefits or expenses. C. Estimate of anticipated, or potential benefits or and severity of accidents. by, or on behalf of, Employer all reserves for actual, 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. In addition to the service fee provided for in paragraph 4, the Company shall receive an annual excess insurance placement fee of $10,000 from the Employer in lieu of commissions. 4. Compensation. The service fee payable during the term of this Agreement by the Employer to the Company in consideration of the services outlined above shall be: 2.6% of manual premium for claims administration .50 of manual premium for loss control services 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. 5. Termination. 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. -2- Upon any termination of this Agreement, the Company 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 the Company by this Agreement. The Company shall further assist in the orderly transition of such administration. At the Employer's option, the Company agrees to continue the handling of all claims open forty -five days after termination of this Agreement to conclusion for a fee of $250.00 per claim in addition to the compensation outlined in section 4. of this contract. In the event of cancellation or nonrenewal of subsequent year contracts, this per claim charge shall be adjusted by the Consumer Price Index changes from January 1, 1992. 6. Claims Payment. Company 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 Company for the sole purpose of paying such claims. All amounts withdrawn in excess of $5,000 shall require the signatures of two authorized representatives of Company. 7. Indemnification To the extent permitted by law, Company 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 Company or its officers, employees or agents. 8. Waiver of Breach. Failure of 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. 9. Modification. This Agreement may only be amended or modified by a writing signed by the parties hereto. 10. Binding Effect. This 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. -3- 12. Applicable Law. This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of Colorado. Dated at this tti of re 1990. i HEWITT, COLEMAN & ASSOCIATES, INC. THE CITY OF PUEBLO, COLORADO By . ..�. Title: City Council President -4-