HomeMy WebLinkAboutReso 17-1986 RESOLUTION NO. 17-B6
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AND AU-HORIZING THE
EXECUTION OF AN AGREEMENT FOR WORKERS'
COMPENSATION CLAIMS ADMINISTRATION WITH
GTA INSURANCE SERVICES
BE IT RESOLVED by the City Council of the City of South San Francisco that:
1. Approval of Agreement. :
The Agreement entitled "Service Agre~ment" to furnish Workers' Cmpen-
sation Claims Administration between the Ci~
Insurance Services is hereby approved, and a
hereto as Exhibit "A."
2. Execution of Agreement.
The City Manager is hereby authorize~
of the City, and the City Clerk attest his s'
I hereby certify that the foregoing Reso'
of South San Francisco and GTA
of said Agreement is attached
to execute said Agreement on behalf
gnature thereto.
uti on was regularly introduced and
adopted by the City Council of the City of S6uth San Francisco at a regular
meeting held on the 22nd day of January , 19 86 , by the following
vote:
AYES:
NOES:
ABSENT:
Councilmembers Mark N. Addiego, Johin "Jack" Draqo, Richard A. Haffey,
Gus Nicolopulos; and Roberta Cerri Teglia
None
None
City Cl
EXHIBIT "A" TO RESOLUTION NO. 17-86
SERVICE AGREEMENT
Th~s Agreement ks entered ~nto by and between GREENFIELD-
THOMPSON ASSOCIATES, INSURANCE SERVICES, INC., hereinafter
called "Service Company", and CITY OF SOUTH SAN FRANCISCO,'
hereinafter cal~ed "Employer", this 22nd day of 'January , 19~ .
WITNESSETH
WHEREAS, Service Company is in the business of providing
c/aims administrative assistance to California self-insured
employers subject to the California Workers' Compensation Laws;
and
WHEREAS, Employer holds a Certificate ~f Consent to Self-
Insure issued by the California Director of Industrial
Relations and said Employer is subject to the California
Workers' Compensation Laws; and ~
WHEREAS, Employer desires! to purchase Claims
Administration Services from ServiceI Company as hereinafter set
forth below; I
NOW, THEREFORE, in consideration of the policies,
covenants and obligations of the parties hereinafter set forth,
it is agreed as follows: i
Service Company
the Service Company
agrees, during the
between the parties:
using lnd~viduals who ~n the opinion of
are competent, capable and experienced
period of time this Agreement is in effect
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 pa~d or rendered under the California Workers'
Compensation Laws.
To establish and maintain
reported claim, which file
Employer for inspect~on.
a claim file on each
shall be available to
10.
To maintain an estimate of the total costs of all
reasonable and foreseeable benefits and related
expenses on each case.
To prepare and [ile on behalf of the Employer legally
required forms with the ,tdministrattve Director and
the Rehabilitation Bureau of the California Division
of Industrial Accidents.
To pay on behalf of the Employer from a bank trust
account 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' Compensation
Appeals Board to attorneys selected and approved by
Employer.
To render assistance as is reasonably necessary in
the preparation of litigated cases.
To pay on behalf of Employer out of the bank trust
account funded by Empl.~yer all "allocated loss
expense" which te defined to include all fees of
attorneys, witnesses, court reporters, proc.se
servers, independent investigators, 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 fee to be paid
by Employer to Service Company.
To ensure that the
examiner administering
exceed 250 cases.
caseload average per claims
Employer's claims will not
To provide any necessary instruction including
reporting manuals to Employer's personnel with regard
to claims reporting and maintenance.
12. To provide a computerized loss analysis, a monthly
summary, a monthly check register, Public Entities
Self-Insured Annual Report, and to fulfill
requirements of information for 1099 IRS filings.
13. To provide needed InformatiOn for the Employer's
filing of SB-90 reportings.
14. To fully cooperate wi[th the Employer in the
performance of this Agreement.
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Employer agrees:
To promptly report all employee injuries and forward
to Service CSmpany the Employer's Report of
Occupational XnJury or Xllness, all letters,
correspondence or any other information, oral or
written, received by Employer which is or could be
relevant to the efficient and proper handling of any
report-ed injury.
To fully cooperate with Service Company in the
performance of this Agreement.
To maintain or participate in a pooled or trust type
account which at all times shall contain sufficient
funds from 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
Agreement. i
To promptly pay to Service Company all service fees
provided by this Agreement.
RENEWAL AND TERMINATION PROVISIONS
1. This Agreement shall be in effect from February 1,
1986, to February 1, 1987 and renewed automatically
every year thereafter provided, however, that-this
Agreement may be cancelled by either party by mailing
the other party sixty (60) day written notice of
cancellation.
The fees, terms
be modified In
parties.
or condi=ions of this Agreement may
writing with the consent of the
Upon termination of this Agreement, a final
accounting 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.
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All ortgtna! claim files, records, reports and
mat.rte! pertaining to e~ployee claims subject to
this Agreement ~hal! be thejproperty of Employer and
shall be available to E~ployer upon termination of
this Agreement, provide~, 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 ts rescinded or revoked, this Agreement is
terminated and cancelled &s of the effective date of
either event.
ASSIGNMENT
Neither party shall assign this A~reement or any part hereof
without the written consent of the ol:her party. This provision
is not intended to restrict Service Company from engaging, at
the expense of Employer, investtgtLtive or other personnel ae
said Service Company deems reasonably advisable.
INDEMNIFICATION:
It is agreed that Service Company shall defend and hold
harmless and indemnify the Employer, ~ts officers, agents
and/or employees from any and all claims which arise out of the
terms and conditions of this Agreement and which result from
the negligent acts or omissions of the Service Company,
officers, agents and/or employees.
It ts further agreed that Employer shall defend, hold harmless
and indemnify the Service Company, its officers, agents and/or
employees from any and all claims which arise out of the terms
and conditions of the Agreement and which result from the
negligent acts or omissions of Employer, its officers, agents
and/or employees.
In the event of the concurrent negligence of Service Company
its officers, agents and/or employees and Employer, its
officers, agents, and/or employees, then the /lability for any
and ell claims which arise out of ~he terms and conditions of
this Agreement shall be apportionediunder "California's Theory
of Comparative Negligence" as presently established, or as may
be hereafter modified.
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NOTICES ~
Al/ notices which may b~, or are, ~equired 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:
GTAI Insurance Services, Inc.
1645 McCandless Drive
Mllpttas,CA 95035
Attn: Deborah S. Greenfield
President
If to Employer:
CityI of South San Francisco
P.O.~ Box 711
400 Grand Avenue
South San Francisco, CA 94080
A~n: Barry Lipton, Director
of Finance
SERVICE FEES
The fees paid by Employer to Service Company under this
Agreement are for services rendered by Service Company during
the one (1) year period this Agreement is in effect, and
Service Company asssumes no obligation or responsibility for
services beyond an earlier terminationi date.
CLAIM ADMINISTRATION: A guaranteed flat annual fee of $26,580
payable tn equal monthly installments of $2,215.00 due the
first of each month beginning with February 1, 1986, to
administer approximately 90 open ~ndemn~ty "run-off" claims and
135 new claims per year. New claimsl reported tn excess of 135
will be admin~stered at a fee per claim of $180.00.
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The following additional services fare
Employer desire: i
LOSS CONTROL CONSULTIN~ SERVICES:I
available
should the
The charge for Safety and Loss
per hour, plus expenses.
INDUSTRIAL HYGIENE SERVICES:
Control Services is $6S.00
The charge for Industrial Hyg~
hour, plus expenses.
FIELD INVESTIGATION AND OUTSIDE SERVICES:
· ne ServiCes is $?5.00 per
The charge for Field Investigation Services and mandatory
conference attendance is $40.00 per hour,.plus expenses.
INSURANCE:
The Service Company shall obtain and'maintain in full force and
effect throughout the entire tern of this agreement the
fo/lowing described insurance coverages:
1. Workers' Compensation as lsirequtred by law,
2. Comprehensive General Liability, with limits not less
$100,000 each occurrence,
3. Professional Liability/Errors and Omissions, with
limits of not less than $100,000 for any one claim,
4. Fidelity Bond with limits of not less than $250,000.
As a provision of the Comprehensive General Liability
insurance, the coverage shall include the Employer as an
additional insured of the policy. Further, the policy shall
clearly state that the insurance afforded the Employer as an
additional insured shall be primary as to any other insurance
Qr r l urance cowrln Qr available the Employer.
Employer will reimburse the Service Company for actual costs of
these endorsements, if any.
As evidence of said coverages and endorsements, the Service
Company shall include a provision for a cancellation notice of
not less than thirty (30) days, be directed to the Employer.
Further, the Service Company shall, upon request, submit for
inspection and approval any such policies to the Employer.
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In the event of the breach of any provision of this paragraph.
or in the event of any notices received which indicate any
coverage will be dtmtntsBed or cancelled, Employer, at Its
option, may, notwithstanding any other provision of this
agreement to the contrary, Immediately declare a material
breach of this agreement and suspend all further work pursuant.
to this agreement. ~
GOVERNING LAW I
This Agreement shall be interpreted and construed in accordance
with the ~aws of the State of Call£ornla.
.IN WITNESS WHEREOF the parties hereto have executed this
Agreement the day and year first hereinabove written.
GREENFIELD-THOMPSON ASSOCIATES,
CITY OF SOUTH SAN FRANCISCO
Title: City Manager
City Clerk
Tit/e: Chairman