HomeMy WebLinkAboutAgenda Report - October 3, 1990 (38)C O U N C I L COMMUNICATION
TO: THE'CITY COUNCIL COUNCIL MEETING DATE:
FROM: THE CITY MANAGER'S OFFICE October 3, 1990
SUBJECT: AUTHORIZE APPROVAL OF CONTRACT FOR WORKERS' COMPENSATION ADMINISTRATOR
PREPARED BY:
Joanne Narloch, Personnel Director
RECOMMENDED ACTION= That the City Council approve awarding the contract for
third -party Workers' Compensation Administration to
Greenfield -Thompson Associates, Inc.
BACKGROUND INFORMATION: On August 16, 1990, the City of Lodz solicited bids for
proposal for administering the workers' compensation
program, Nine proposals were received and reviewed in
accordance with the criteria outlined in the request for
proposal.
Four firms were invited to participate in an oral interview.
It is felt that Greenfield -Thompson Associates, Inc. is best
able to meet the needs cf the City. The cost for contract
administration is a flat annual fee of $52,800. In addition
there is a one-time program implementation fee of $3,500,
which still places them below the median bid.
Attached is a copy of the draft contract for your approval.
The City Attorney will review the contract language and make
any modifications necessary.
Respectfully nSubmitted,
l4ne
z� � toan�tiarloch
Personnel Director
JN/la
Attachment
COUNC030/TXTA.04P
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P. 02
Antl
SERVICE AGREEMENT
111/
This Agreement is entered into by and between GREENFIELD-
THOMPSON ASSOCIATES, INC., hereinafter called "Sarvice
Company" and THE CITY OF LODI, hereinafter called
"Employer", this 1st day of November, 1990.
WITNESSSETH
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; and
WHEREAS, Employer desires to purchase Claims
Administration 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 in the opinion of
the Service Company are competent, capable and experienced
agrees, during the period of time this Agreement is in
effect between the parties:
is 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.
2. 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.
3. To establish and maintain a claim file on each
reported claim, which file shall be available to
Employer for inspection .W4( dqt fdoahcc h,,firm ,
4. To maintain an estimate of the total costs of all
reasonable and foreseeable benefits and related
expenses on each case.
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5. 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.
6. 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.
7. 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.
8. To render assistance as is reasonably necessary in
the preparation of litigated cases.
9. To pay on behalf of Employer out of the bank trust
account funded by Employer all "allocated loss
expense" which is defined to include all fees of
attorneys,, witnesses, court reporters, process
servers, independent investigators, any court or
Workers' Compensation Appeals Board, for
depositions, surveillance or the necessary
engagement of personnel in the handling of any
claim subject to this Agreement.
10. To provide a computerized los analva s and
summaat
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11. All conditions set forth in the proposal of
September 11, 1990, are hereby incorporated into
this contract.
Employer agrees:
I. To promptly report all employee injuries and
forward to Service Company the Employer's Report
of occupational Injury or Illness, 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 reported injury.
2. To fully cooperate with Service Company in the
performance of this Agreement.
3. To maintain or participate in a pooled or trust
type account which at all times shall contain
sufficient funds from which service Company is
SEP -26-90 WED 14:47
authorized to make all payments as required by
this Agreement,
4. To provide Service Company with all necessary
data, payroll, financial and whatever else is
re 'red to enable Service Company to perform
under this agreement.
5. To promptly pay to Service Company all service
fees provided by this agreement.
This Agreement shall be in effect from November 1,
1990, to October 31, 1991, and renewed
automatically every yea -L, thereafter provided,,
eitherrpartytby mailing mtottheyott9sr partyed(6()
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.
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3. 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.
cdnp��R. ��CSJ
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 available to Employer upon
termination of this Agreement.
5. 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 Compapy from
engaging, at the expense of Employer, investigative or other
personnel as said Service Company deems reasonably
advisable.
SEP -26-90 WED 14%48
zW _YII •�03 1I }•
Indemnification or Employer
Service Company shall indemnify and hold Employer harmless
from and against all claims, dydemands, actions or causes of
action that may arise from the conduct, acts, or failure to
act of Service Company's personnel, including but not
limited to claim demands, actions, causes of action and
attorney fees, based upon assault, battery, false
imprisonment, defamation, invasion of privacy, false arrest,
trespass, or wrongful death of any person or loss or damage
to the property of any person.
Defense nf garylao Com
Employer will defend and hold Service Company harmless in
those cases where Service Company is named in a filed
complaint, simply by virtue of the fact that they are the
adjusting company on the given claim, and in no way caused
damage to the plaintiff, .e., the action is spurious as to
the Service Company.
penalties and Fines Purguant to the Workers8 Coensation
Rgf2rM Act
1. Penalties and fines resulting from Service
Company's negligence will be paid by Service
Company.
2. Penalties and fines resulting from Employer's
negligence or late filings or incurred as a result
of action or inaction directed by Empicyer will be
borne by Employer.
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: GREENFIELD-THOMPSON ASSOCIATES
P.O. Box 1885
Pleasanton, CA 94566
Attn: Deborah S. Greenfield
President
If to Employer: THE CITY OF LODI
221 West Pine Street
Lodi, Ct, 95240
Attn: Joanne Naxloch
Personnel Director
P. 0:5
SEP -26-90 WED 14:49
The fees paid by Employer to Service Co mpp under this
Agreement are for services rendered by Service Company
during the twelve month period this Agreement is in effect,
and the service Company assumes no obligation or
responsibility for services beyond an earlier termination
date.
CLAIM ADMINISTRATION: A flat annual fee of $52,800 payable
in equal monthly installments of $4,400 due, advance, the
first of each month beginning November 1, 1990, to
administer 125 new claims, all open medical -only take over
and 125 open indemnity �:akeover claims. Claims reported in
excess of 125 open indemnity takeover claims or 125 new
claim reported during the first year will be administered at
a fee per claim of $325.00.
PROGRAM IMPLEMENTATION FEE: A one-time program
implementation fee of $3,500.00 will be made prior: to
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1, 199.
K
SAFETY AND HEALTH CONSULTING SERVICES/INDUSTRIAL
HYGIENE:
The charge for loss control consulting services is an
hourly rate of $41. to $125. per hour, plus expenses.
These services will be estimated on a project by
project basis with guaranteed costs "not to exceed".
The charge for industrial hygiene services is on an "as
need" basis hourly, plus expenses.
FIELD INVESTIGATZON AND OTHER OUTSIDE SERVICES:
The charge for field and investigation services and
outside services such as mandatory conference, hearing
or trial attendance is $59.00 per hour, plus expenses.
SPECIAL OR ADDITIONAL COMPUTER INFORHATION:
All reports, data processing, training and services
outlined in the proposal presented to the Employer are
included in the annual fee. If additional reports,
special reports, conversion or special programming or
information is needed, costs will be actual as
incurred. Data conversion costs will be billed
separately, not to exceed $2,500. per conversion.
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C,OVERNINLALAG?
This Agreement shall be interpreted and construed in
accordance with the laws of the State of California.
IN WITNESS WHEREOF the parties hereto have executed this
Agreement the day and year first hereinabove written.
THE CITY OF LODI
By: —
Title:
Date
GREENFIELD-THOMPSON ASSOCIATES
By:
Title:_
Date:
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