HomeMy WebLinkAboutReso 169-1982 RESOLUTION NO. 169-82
CITY COUNCIL., CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING EXECUTION OF A
WORKERS COMPENSATION CLAIMS ADMINISTRATION
CONTRACT AGREEMENT WITH EBI SERVICES,, INC.
BE IT RESOLVED By the City Council of the City of South San Francisco that:
1. Contract Authorization
The execution of the Workers Compensation Claims Administration
Contract Agreement between the City of South San Francisco and EBI,
Services, Inc., {as attached to this resolution as Exhibit "A") pro-
viding for the services therein described, is hereby authorized.
2..Si~qnatures
C. Walter Birkelo, The City Manager, is authorized to execute the
contract on behalf of the City and the City Clerk attest her signature
thereto.
I hereby certify that the foregoing Resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at a
regular meeting held on the 15th day of December , 1982, by the
following vote:
AYES:
Councilmembers Ronald G. Acosta, Mark N. Addiego, Emanuele N. Damonte,
Gus Nicolopulos; and Roberta Cerri Teglia
NOES: None
ABSENT: None
City Clerk
AGREEMENT
This agreement is entered into by and between EBI
Services Inc., hereinafter called "Service Company" and
City of South San Francisco, hereinafter called "Employer",
this 1st day of January, 1983.
WITNESSETH
WHEREAS, Service Company is in the business of providing
claims administrative assistance to California self-insured
employers subject to the California Workers' Compensation Laws;
and
WHEREAS, Employer holds a Certificate of Consent to-
Self-Insure issued by the California Director of Industrial
Relations and said Employer is subject to the California
Workers' Compensation Laws;
WHEREAS, Employer desires to purchase Claims Administrative
Services from Service Company as hereinafter set forth below;
NOW, THEREFORE, in consideration of the policies, covenants
and obligations of the parties hereinafter set forth, it is
agreed as follows:
Service Company using individuals who are competent,
capable and experienced agrees, during the period of time this
Agreement is in effect between the parties:
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To ensure that the caseload average per claims
technician, will not exceed 250 files.
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To provide any necessary instruction to Employer's
personnel with regard to Claims, both the reporting
and the maintenance. This instruction includes
providing instructional manuals.
To review on behalf of Employer all reports of
injury as defined by California Labor Code Sections
3208 and 3208.1 that are reported by Employer to
Service Company.
To determine on behalf of Employer for each
reported employee injury those benefits, if any,
that should be paid or rendered under the California
Workers' CompenSation Laws.
To establish and maintain a claim file on each
reported claim, which file shall be available
to Employer for inspection.
To maintain an estimate of the total costs of all
reasonably forseeable benefits and related expenses
on each case.
To prepare and file on behalf of the Employer legally
required forms with the Administrative Director and
the Rehabilitation Bureau of the California Division
of Industrial Accidents.
To pay on behalf of the Employer from a bank trust
account established and funded by Employer those
sums that should reasonably be paid under the
California Workers' Compensation Laws for each
reported claim.
To refer cases where an employee of Employer files
an application with the California Workers' Compen-
sation Appeals Board to attorneys selected and
approved by Employer.
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10. To render assistance as is reasonably necessary
in the preparation of litigated cases.
11. To pay on behalf of Employer out of the bank trust
account'established and funded by Employer all
"allocated loss expense" which is defined to
include all fees of attorneys, witnesses, court
reporters, process servers, independent investiga-
tors, any court or Workers' Compensation Appeals
Board, for depositions, surveillance or the
necessary engagement of personnel independent of
the Service Company in the handling of any claim
subject to this Agreement.
It is specifically understood that "allocated loss
expense" is in addition to the service fees to be
paid by Employer to Service Company.
12. To provide a computerized loss analysis and summary
each month, a computerized check register each
month, Public Entities Self-Insured Annual Report,
and to fulfill IRS 1099 requirements.
13. To provide needed information for the SB 90 report-
ing requirements.
14. To fully cooperate with the Employer in the performance
of this Agreement.
Employer agrees:
1. To promptly report all employee injuries and forward
to the Service Company the Employer's Report of
Occupational Injury or Illness, all letters, corre-
spondence or any other information, oral or written,
received by Employer which is or could be relevant
to the efficient and proper handling of any reported
injury.
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TO fully cooperate with Service Company in the
performance of this Agreement·
To establish and maintain a bank trust account which
at all elme~ shall contain su~c~en% ~un~s ~rom
which Service Company is authorized to make all
payments as required by this Agreement·
To provide Service Company with all necessary data,
payroll, financial and whatever else is required to
enable Service Company to perform under this Agree-
ment.
To promptly pay to Service Company all service fees
provided by this Agreement.
RENEWAL AND TERMINATION PROVISIONS
1. This Agreement shall be in effect for a period of
three (3) years provided, however, that this Agree-
ment may be cancelled by either party by mailing
to the other party a sixty (60) day written notice
of cancellation.
2. The fees, terms or conditions of this Agreement may
be modified in writing with the consent of the
parties.
3. Upon termination of this Agreement, a final account-
ing shall be made of the fees payable to Service
Company and any funds belonging to Employer in the
possession of Service Company and any balance due
either party will be promptly paid by the debtor
party.
4. All original claim files, records, reports and
material pertaining to employee claims subject to
this Agreement shall be the property of Employer
and shall be delivered to Employer upon termination
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of this Agreement, provided, however, that Service
Company may microfilm any file returned and provide
Employer with a copy of such microfilm.
In the event Employer purchases Workers' Compensation
Insurance or its Certificate of Consent to Self-
Insure is rescinded or revoked, this Agreement is
terminated and cancelled as of the effective date
of either event.
ASSIGNMENT
Neither party shall assign this Agreement or any part
hereof without the written consent of the other party. This
provision is not intended to restrict Service Company from
engaging, at the expense and consent of Employer, investigative
or other personnel as said Service Company deems reasonably
adviseable.
NOTICES'
All notices which may be, or are, required to be given under
this Agreement shall be sent to the respective parties at the
address set forth below. The places to which such notices
are to be sent may be changed from time to time by either
party by a written notice as herein provided:
If to Service Company:
EBI SERVICES, INC.
66 East Rosemary Street
San Jose, CA 95112
Attn: Brian R. Shutts
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If to Employer:
City of South San Francisco
P..O. Box 711
400 Grand Avenue
South San Francisco, CA 94080
Attn: C. Walter Birkelo,
City Manager
SERVICE FEES
The fees paid by Employer to Service Company under this
Agreement are for services rendered by Service Company during
the three (3) year period this Agreement is in effect, and
Service Company assumes no obligation or responsibility for
services beyond the three year specified time period of this
Agreement or for services beyond an earlier properly noticed
termination date.
CLAIMS ADMINISTRATION - NEW CASES:
A charge of $136.00 per claim for the first 120 cases
. reported during the contract year 1-1-83/12-31-83. A
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charge of $125.00 per case for each claim reported
thereafter.
For the contract year 1-1-84/12-31-84, a maximum
increase of 15%.
For the contract year 1-1-85/12-31-85, a maximum
increase of 15%.
The fee increase based on 15% are based on salary
increases to our employees and inflationary increases in the
economy. These increases will enable EBI Services, Inc. to
maintain the quality of case management for the City of South
San Francisco.
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CLAIMS ADMINISTRATION - TAKE OVER OF RUN-OFF
A charge of $100.00 per open claim payable in one
lump s,~m or twelve (12) equal monthly installments.
The following services are available should the Employer desire:
1. Industrial Hygiene: A charge of $75.00 per hour,
plus expenses.
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Rehabilitation:
expenses.
A charge of $35.00 per hour, plus
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Field Investigation: A charge of $30.00 per hour,
plus expenses.
4. Medical Advisor Program: A maximum charge of $75.00
per case.
5. Terminal Recall Capability (CRT): A charge of
$4,000.00 a year for installing and maintaining a
terminal in the Employer's office.
INSURANCE:
~ The Service Company agrees to provide and maintain the
following insurance during the duration of the project:
1. Workers' Compensation as required by law.
2. Comprehensive General Liability Insurance with limits
not less than $100,000 each occurrence.
3. Comprehensive Automobile Liability Insurance, with
limits not less than $300,000 each occurrence and
$50,000 property damage liability for each occurrence.
4. Professional Liability Insurance with limits not less
than $100,000 for any one claim.
As a provision of the Comprehensive General Liability
Insurance and the Comprehensive Automobile Liability Insurance,
the coverage shall include, as additional insureds of the
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poligies, City of South San Francisco, its elective and
appointive boards, officers, agents and employees with
respect to work performed by Service Company.
Further, the insurance policies required above shall
include the following provision:
"For all operations performed for City of
South San Francisco, City of South San
Francisco is named as an additional insured
but solely as respects liability arising from
all operations of the named insured (EBI
Services, Inc.) performed for City of South
San Francisco. The insurance afforded here-
under to the City of South San Francisco shall
be primary as to any other insurance or re-
insurance covering or available to the City
of South San Francisco."
As evidence of said coverage the Service Company shall
include a provision for a cancellation notice of not less than
thirty (30) days, directed to the Employer. Further, the
Service Company shall, upon request, submit'for inspection any
such insurance policies to the Employe~
RESPONSIBILITY: INDEMNIFICATION:
Service Company shall indemnify, save harmless its employees,
agents, and representatives from and against all claims, demands,
actions, causes of action, losses, damages, liabilities, costs
and expenses including reasonable attorney's fees or obligations,
for or in connection with injury or damage to any person or
property which arises out of or is in any way connected solely
with the negligent act, error or omission of Service Company
and its agents, subcontractors, or employees as a result of
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Service Company's rendition of service under this Agreement.
IN WITNESS WHEREOF the parties hereto have executed this
Agreement the day and year first hereinabove written.
CITY OF SOUTH SAN FRANCISCO
EBI SERVICES, INC.
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