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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: i · To ensure that the caseload average per claims technician, will not exceed 250 files. -1- · · · · · · · · 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. -2- 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. -3- · · · 0 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 -4- · 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 -5- 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 · 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. -6- 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. · Rehabilitation: expenses. A charge of $35.00 per hour, plus · 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 - 7 - 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 - 8 - 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. - 9 -