HomeMy WebLinkAbout7033RESOLUTION NO. 7033
A RESOLUTION APPROVING PROFESSIONAL SERVICES
CONTRACTS BETWEEN THE CITY OF PUEBLO, STEEL
CITY AGENCIES, INC. AND MAX DAY AGENCIES, INC.
RELATING TO RISK MANAGEMENT AND INSURANCE
CONSULTING SERVICES AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Professional Services Contracts relating to risk manage-
ment and insurance consulting services between the City of Pueblo,
Steel City Agencies, Inc. and Max Day Agencies, Inc., dated
December 14, 1992, copies of which are attached hereto and
incorporated herein, having been approved as to form by the City
Attorney, are hereby approved. The President of the City Council
is hereby authorized and directed to execute the Contracts in the
name of and on behalf of the City of Pueblo, a Municipal
Corporation and the City Clerk shall attest same.
INTRODUCED: December 14, 1992
ATTEST:
r
C�ty Clerk
By ?MICHAEL OCCHIATO
Councilperson
APPROVED:
Presi nt of the City Council
TJ 64.29
PROFESSIONAL SERVICES CONTRACT
BETWEEN
THE CITY OF PUEBLO
AND
STEEL CITY AGENCIES, INC.
THIS AGREEMENT is made as of the /y# day of 199.,
by and between the City of Pueblo, a municipal corporation,
hereinafter called "Pueblo" or "the City," and Steel Agencies, Inc.,
a Colorado corporation, hereinafter generally 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 term of this agreement will begin on January 1, 1993, and shall
continue through December 31., 1994. 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. The parties may extend this agreement by mutual
agreement.
3 SCOPE OF SERVICES
The services to be provided by SCA under this agreement shall be the
following:
3.1 RISK MANAGEMENT SERVICES
SCA shall provide Risk Management services relating to Worker's
Compensation and third -party liability which will include:
The designation of SCA as Risk Management Officer for the City
of Pueblo to administer the risk management policy statement
adopted by the City.
The evaluation of contractual insurance provisions relating to
Worker's Compensation insurance or reinsurance.
In consultation with the City Attorney, review purchase orders
for hold harmless agreements and the provisions relating to
Worker's 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.
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.
PROFESSIONAL SERVICES CONTRACT - PAGE 1
: Assist in the development of a plan that will provide incentive
to the City employees in the form of compensation or other
benefits for the reduction of workers' compensation claims.
3.2 SCA 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.
3.3 SCA WORKERS' COMPENSATION MANAGEMENT
SCA shall answer questions from the City Manager and Director of
Personnel relating to technical worker's 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 worker's
compensation claims and reserves as to frequency and severity by
specific department with the Director of Personnel and at request
with the City Manager.
3.4 SCA 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
transferring. 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 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 attend all meetings of the City Insurance Committee.
3.5 SCA 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
PROFESSIONAL SERVICES CONTRACT - PAGE 2
normally covered by property and casualty insurance, except claims
involving liability coverage for the Pueblo Memorial Airport, and
group health employee claims which 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 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 and, if required, with the City
Insurance Committee.
4 SERVICES NOT INCLUDED
SCA will provide only the services specified in the 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:
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
updating services 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.
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 PUEBLO TRANSPORTATION COMPANY
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.
PROFESSIONAL SERVICES CONTRACT - PAGE 3
7
7 FEES'
SCA shall receive a monthly fee of Five Thousand Two Hundred and
No /100 Dollars ($5,200.00) for each month during the term of this
agreement. Such fee shall be payable 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 shall 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.
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, Bret Kelly and Don Learned as key
personnel under this contract. If at any time any two of these
persons cease to be active in the business of their respective
agencies and to be reasonably available to supervise the services
contemplated by this agreement upon ten (10) days notice to SCA.
9 DUTY OF SCA
SCA shall have the duty under this agreement to carry out its
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 its 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.
P.O. Box 4316
Pueblo, CO 81003
City of Pueblo
City Manager
1 City Hall Place
Pueblo, CO 81003
PROFESSIONAL SERVICES CONTRACT - PAGE 4
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.
CITY OF PUEBLO
A Municipal Corporation
President of City Council
ATTEST:
W/0-17 "I"W"NAWNZ,
APPROVED AS TO FORM:
CITY ATTORNEY
Ski
By:
STEEL CITY AGENCIES, INC.
A Colorado Corporation
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ATTEST:
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Secreta y
PROFESSIONAL SERVICES CONTRACT - PAGE 5