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HomeMy WebLinkAboutContracts & Agreements_41-2008_CCv0001.pdf AGREEMENT FOR PROFESSIONAL SERVICES FOR PLAN ADMINISTRATION FOR WORKERS' COMPENSATION PROGRAM This Agreement is made and entered into this 181h day of March, 2008, by and between the City of Redlands, a municipal corporation (hereinafter "City") and Dynamic Claims Services, Inc. (hereinafter "Consultant"). City and Consultant are sometimes individually referred to herein as a "Party" and, together, as the "Parties." ARTICLE I — ENGAGEMENT OF CONSULTANT 1.1 Engagement. City hereby engages Consultant to perform certain professional services associated with the administration of City's workers' compensation program. Such professional services are more particularly described in Exhibit "A," which is attached hereto and incorporated herein by this reference (the "Services"). 1.2 Performance of Services. The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services. 1.3 Compliance with law. Consultant shall comply with all applicable Federal, State and local rules, laws and regulations in its performance of the Services under this Agreement. ARTICLE 2 —RESPONSIBILITIES OF CITY 2.1 Provision of information. City shall make available to Consultant all information in its possession that is reasonably necessary for Consultant's performance of the Services. 2.2 City representative. City designates Debbie Scott-Leistra, City's Human Resources Manager, to act as City's representative with respect to the Services. ARTICLE 3 —DURATION OF AGREEMENT 3.1 Tenn. The term of this Agreement shall be from March 18, 2008 through January 31. 2009. DJIM/Avree/Dynarnic Claims Services 3-18-08 3/13108 8:48 a.m. ARTICLE 4—PAYMENTS TO THE CONSULTANT 4.1 Compensation. As compensation for the Services, City shall pay to Consultant the amount of Seven Thousand One Hundred Dollars ($7,100.00) per month. 4.2 Data Conversion. The compensation described above includes the cost of summary claims data conversion, completion of the administrator's portion of the self insured annual report, check printing and processing fees, and storing open and closed claims files during the term of this Agreement. 4.3 Invoices. Consultant shall bill City within ten days following the close of each month by submitting an invoice describing the Services performed. Payments by City to Consultant shall be made within thirty (3)0) days after receipt and approval of Consultant's invoice, by warrant payable to Consultant. 4.4 Notices. All notices, bills and payments shall be made in writing and may be given by personal delivery or by mail. Notices, bills and payments sent by mail shall be addressed as follows: city Consultant Debbie Scott-Leistra David Erickson Human Resources Manager Dynamic Claims Services, Inc. City of Redlands 100 West Broadway, Suite 200 P.O. Box 3005 Glendale, CA 91210 Redlands, CA 92373 When so addressed, such notices shall be deemed given upon deposit in the United States Mail. Changes may be made in the names and addresses of the person to whom notices and payments are to be given by giving notice pursuant to this section. ARTICLE 5 — INSURANCE AND INDEMNIFICATION 5.1 Consultant's Insurance to be Primary All insurance required by this Agreement shall be maintained by Consultant throughout the term of this Agreement and shall be primary with respect to City and non-contributing to any insurance or self-insurance maintained by City. Consultant shall not perform any Services unless and until all required insurance listed below is obtained by Consultant. Consultant shall provide City with Certificates of Insurance and endorsements evidencing such insurance prior to commencement of the Services. All insurance policies shall include a provision prohibiting modification or cancellation of the policy except upon thirty (30) days prior written notice to City. DJM/Ageree/Dynamic Claims Services 3-18-08 2 3/13/08 8:48 an. 5.2 Workers' Compensation and Employer's Liability Consultant shall secure and maintain Workers' Compensation and Employer's Liability insurance throughout the term of this Agreement in amounts which meet statutory requirements with an insurance carrier acceptable to City. 5.3 Comprehensive General Liability Insurance, Consultant shall secure and maintain in force throughout the term of this Agreement comprehensive general liability insurance with carriers acceptable to City. Minimum coverage of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate for public liability, property damage and personal injury is required. Consultant shall obtain an endorsement that City shall be named as an additional insured. 5.4 Professional Liability Insurance. Consultant shall secure and maintain professional liability insurance throughout the duration of the Services in the amount of one million dollars ($1,000,000) per occurrence and two million dollars($2,000,000) annual aggregate. 5.5 Business Auto Liability Insurance. Consultant shall have business auto liability coverage, with minimum limits of one million ($1,000,000) per occurrence, combined single limits for bodily injury liability and property damage liability. This coverage shall include all Consultant-owned vehicles used in connection with performance of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. Consultant shall obtain and an endorsement that City shall be named as an additional insured. 5.6 Assignment and Insurance Requirements. Consultant is prohibited from assigning any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign a portion of the Services, Consultant shall add the assignee as an additional insured and provide City with the insurance endorsements prior to any Services being performed by the assignee. Assignment does not include printing or other customary reimbursable expenses that may be provided in connection with the Services. 5.7 Hold Harmless and Indemnification. Consultant shall defend, indemnify and hold harmless City, it's elected officials, officers, employees and agents, from and against any and all actions, claims, demands, lawsuits, losses and liability for damages to persons or property, including costs and attorney fees, that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization arising out of or in connection with Consultant's negligent and/or intentionally wrongful acts or omissions in the performance of the Services, but excluding such actions, claims, demands, lawsuits and liability for damages to persons or property arising from the sole negligence or intentionally wrongful acts of City, it's officers, employees or agents. DJNI/Agree/Dynamic Claims Services 3-18-08 3;13/'08 8:48 a.m. ARTICLE 6— GENERAL CONSIDERATIONS 6.1 Attornevs' Fees. In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of it's reasonable attorneys' fees, including fees for use of in-house counsel by a Party. 6.2 Document Ownership. A. All documents, records, drawings, designs, cost estimates, electronic data files, databases, and other documents developed by Consultant pursuant to this Agreement, and any copyright interest in said above described documents, shall become the property of City and shall be delivered to City upon completion of the Services, or upon the request of City. Any reuse of such documents and any use of incomplete documents will be at City's sole risk. B. Consultant shall allow City and its designated representatives access to all records and files in Consultant's possession pertaining to City. All records, reports and files, whether stored in hard copy or data processing media, are acknowledged to be the sole property of City and shall be returned to City upon request, expiration or termination of this Agreement. 6.3 Independent Contractor Status. Consultant is for all purposes an independent contractor. Consultant shall supply all tools and instrumentalities required to perform the Services. All personnel employed by Consultant are for its account only, and in no event shall Consultant or any personnel retained by it be deemed to have been employed by city or engaged by City of the account or on behalf of City. 6.4 Termination. A. This Agreement may be terminated by either Party by providing thirty (30) days prior written notice to the other Party (delivered by certified mail,, return receipt requested). B. If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default of Consultant. C. Upon receipt of a termination notice, Consultant shall (1) promptly discontinue all Services, and (2) deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of any data, reports, summaries and such other information and materials as may have been DJM/Aarce/Dynamic Claims Services 3-18-08 4 3/13/08 8:48 a.m. accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up until notice of termination. 6.5 Entire Agreement/Amendment. This Agreement, including the exhibit incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, proposals or oral arguments are superseded by this Agreement. Any amendment to this Agreement shall be in writing, approved by the City Council of City and signed by City and Consultant. 6.6 Governing Law, This Agreement shall be governed by and construed in accordance with the laws of the State of California. ARTICLE 7 - CONFLICTS OF INTEREST 7.1 Consultant covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, that may be affected by the subject matter of this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement, 7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant: A. Does not make or participate in: (i) the making or any governmental decisions regarding approval of a rate, rule or regulation, or the adoption or enforcement of laws; (ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certifications, approvals, orders or similar authorizations or entitlements; (iii) authorizing City to enter into, modify or renew a contract; (iv) granting City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) granting City approval to a plan, design, report, study or similar item; WNI/AgreeiDynamic Claims Services 3-18-08 5 31/13/08 8:48 a.m. (vi) Adopting, or granting City approval of, policies, standards or guidelines for City or for any subdivision thereof. B. Does not serve in a staff capacity with City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302. 7.3 In the event City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk's office pursuant to the written instructions provided by the Office of the City Clerk. IN WITNESS WHEREOF, duly authorized representatives of the City and Consultant have signed in confirmation of this Agreement. City of Redlands Dynamic Claims Services, Inc. By: By: ay,or Jon ll'arrison David Erickson Attest: City Verk. CitvR, edlands DMAeree/Dynamic Claims Services 3-18-08 6 3/13/08 8:48 a.m. EXHIBIT"A" PLAN ADMINISTRATION SERVICES EXAMINING SERVICES I Consultant shall provide complete administration services including, but not limited to: a. Review and process all claims for Workers' Compensation benefits in accordance with the requirements of the California Department of Industrial Relations for reporting and notification. b. Determine the compensability of claimed injuries and illnesses in accordance with the California Workers' Compensation laws. C. Determine eligibility and authorize payments of medical benefits and authorize examinations to determine the nature and extent of disability when appropriate. d. Determine the eligibility for and authorize payment of temporary disability compensation in coordination with medical advice and rehabilitation efforts. e. Determine the degree of permanent disability, if any, of injured workers utilizing, as necessary and desirable, advisory ratings of the Permanent Disability Rating Bureau. f. Authorize the payment of permanent disability compensation and death benefits in accordance with advisory ratings, orders of the Workers' Compensation Appeals Board, Compromise and Release settlements and Litigation Avoidance Programs. 9. When appropriate, refer litigated cases to attorneys utilizing an agreed listing of legal firms, assist in the preparation of litigated cases, negotiations of Compromise and Release settlements and subrogation actions. h. Maintain current estimates of costs of all anticipated benefits and related expenses on each case. i. Investigate or arrange for investigation ofas necessary and appropriate, questionable cases and the status of disabled employees in order to adjust all cases and to assist in the trial or settlement of litigated cases. Authorization for outside investigation is subject to approval by the City of Redlands. j. When medically appropriate, develop rehabilitation programs for injured employees for approval by the City of Redlands, the employee and other agencies to provide rehabilitation, retraining, or reassignment for employees with physical or performance limitation resulting from industrial injuries. k. Provide monthly reports to the City of Redlands that will set forth requested accounting and statistical data to allow the City of Redlands to MM"Agree/Dnarnic Claims Services 3-18-08 7 Y13/08 8:48 a.m. interpret and evaluate their claims and safety programs. Reports shall be delivered within 20 days of the close of each calendar month. 1. Notification of the City of Redlands excess insurers of all claims which exceed the City of Redlands self-insurance retention limit. Maintain liaison between the insurance carriers and the City of Redlands on matters affecting the adjustment of such claims. M. Prepare the City of Redlands Self-Insured Annual Report in a timely fashion for submission to the Department of Self-Insurance Plans prior to the October I" deadline. 2. Non-staff expenses such as legal costs and fees, investigations and rehabilitation vendor fees, the cost of employing experts for professional advise, opinion or testimony, and similar costs normally considered as Allocated Loss Expenses are not included in the compensation to' Consultant as hereinafter set forth. Such expenses are chargeable as part of the claims cost, as is the custom under insured plans when computing losses for experience rating, retrospective rating, or dividend computation, and are paid by the City of Redlands. 3. Consultant shall provide at least the following legal support services on each claim wherein the claimant has commended litigation. Upon notification by the City that an Application for Adjudication has been filed, Consultant shall attempt to settle the claim directly with the employee's attorney without litigation. If litigation becomes imminent, an attorney specializing in the defense of Workers' Compensation claims shall be retained to represent the City of Redlands. Upon request of the City of Redlands, Consultant shall provide all information and files concerning said attorney. DJNl/Agree/Dynam i c Claims Services 3-18-08 3/11/08 8:48 a.m.