HomeMy WebLinkAbout7305RESOLUTION NO. 7305
A RESOLUTION APPROVING A SERVICE AGREEMENT
BETWEEN THE CITY OF PUEBLO AND IIEWITT,
COLEMAN & ASSOCIATES, INC. RELATING TO
TIIE CITY'S WORKERS' COMPENSATION PROGRAM
AND AUTHORIZING THE PRESIDENT OF THE
CITY COUNCIL TO EXECUTE SAME.
WHERE -'AS, the City provides worker's compensation benefits for its employees as a self-
insured employer, and
WHEREAS, the City engaged Hewitt, Coleman and Associates, Inc. in 1993 to provide
administrative and claims processing services for City's Workers' Compensation program and desires
to engage Hewitt, Coleman & Associates, Inc. to perform such services in 1994, and
WHEREAS, Hewitt, Coleman & Associates, Inc. is willing to provide such services in 1994
upon the same terms and conditions as 1993, Now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Service Agreement between the City of Pueblo and Hewitt, Coleman & Associates, Inc.
relating to City's workers' compensation program and the provision of administrative and claims
processing services,a copy of which is attached hereto, having been approved as to form by the City
Attorney, is hereby approved.
SECTION 2.
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 and authorized to affix the seal of the City
thereto and attest same.
INTRODUCED February 14, 1994
By CHARLES JONES
Councilperson
ATTEST:
Ci Clerk
APPROVED:
j 4 res' dent of the City Council
steel city agencies, inc.
insurance • bonds post office box 4316
offices at 1414 west 4th street pueblo, colorado 81003 -0316
telephone (719) 544 -2533
TO:
FROM:
DATE:
RE:
110
Tom Jagger, City Attorney
City of Pueblo bp,
Ralph A. Williams, CPC. /�" "' v Z 91
January 28, 1994 "�
Service Agreement
Enclosed please find the original copy of the Hewitt, Coleman
Service Agreement which last year you had approved by ordinance
prior to execution. This Agreement is at the same terms and
conditions as last year.
Please mail a signed copy of the executed Agreement directly to
Hewitt, Coleman in the self- addressed envelope with a copy to
Steel City Agencies for our records.
If you have any questions, please give me a call.
RAW /sls
Enclosure
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, 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, 1994 to January 1, 1995. On or
before November 1, 1994, 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 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 incidentto payments
made to fulfill the obligations of the Employer under the Colorado Workers'
Compensation Act. It is expressly understood that Company shall not be required to
advance its own funds to pay losses or allocated loss expenses hereunder. It is further
understood that if Employer fails to provide funds sufficient to allow required
payments to be made timely, Company will have no obligation to perform any further
services and may terminate this Agreement upon three (3) days' written notice.
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 forthe defense ofany 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.
3.6 Furnish records by division 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.
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 maj or 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 the Colorado 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 annual 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
5% 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.
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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 ifthe breach is not cured within thirty (3 0) days of receipt ofwritten notice
specifying the material breach.
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, 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 per claim in addition to the compensation outlined in Section 4 of this
contract, provided that Employer continues to make available adequate funds for the
payment of such claims and any allocated loss expenses. 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, 1994.
6. Claims Payments. 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 oftwo
authorized representatives of Company.
7. 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.
8. Modification. This Agreement may only be amended or
modified by a writing signed by the parties hereto.
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9. 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.
10. Entire Agreement. This Agreement constitutes the entire
agreement between the parties.
11. Applicable Law. This Agreement shall be governed, construed,
and enforced in accordance with the laws of the State of Colorado.
HEWITT, COLEMAN &
ASSOCIATES, INC.
By:
Title: President
Date: January 10, 1994
THE CITY OF PUEBLO, COLORADO
By:
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Date: Fe-BRt1#R Y '12/
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