HomeMy WebLinkAboutResolutions 86-322 N.C.S. 12/01/1986C
Resolution No. 86-322 N ~.s. MJA:cw
of the City of Petaluma, California
RESOLUTION OF THE COUNCIL OF THE-CITY OF PETALUMA APPROVING
AND AUTHORIZING EXECUTION OF AGREEMENTS FOR CLAIMS AND
ADJUSTING SERVICES BETWEEN THE CITY OF PETALUMA AND THE
REDWOOD EMPIRE MUNICIPAL INSURANCE FUND (R.E.M.I.F.)
EFFECTIVE JANUARY 1, 1987 SUBJECT TO COUNCIL APPROVAL OF FUNDS.
WHEREAS, the City of Petaluma has determined that the continuation
of Self-Insuring Workers' Compensation is cost effective; and,
WHEREAS, based on advice by the City's consultant it is recommended
that an outside firm be retained to administer the City's workers' compensation
program:
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of
Petaluma approves the execution of an agreement between the City and the Redwood
Empire Municipal Insurance Fund for the administration of the City's workers'
compensation program and that the Mayor or the City Manager be and hereby is
authorized to execute for and on behalf of the City of Petaluma such agreement.
The Council hereby generally approves the form of agreement attached hereto
subject, however, to the authority, hereto given, of the City Attorney to
revise such terms to clarify the obligation of the parties to the agreement.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a (Regular) ~~ ~ meeting /„
on the .1St ................ day of ...-.........-.....December................-., 19.86., by the
following vote:
ity Attorney
AYES: ~d.V1S, Woolsey, Balshaw, Vice Mayor Tencer, Mayor Mattei
NOES:
ABSENT: ~obe~ ,~~,~~
ATTEST: ~,l_..~;~.-~l,~.~1.!!./.G~~~.~,._.....,~ :::.......................
City Clerk 86-322
Council File ....................................
CA 10-55 Res. No . ...................._........ N.C.S.
,a
....
..-.- ..................... E. _........ .. ~... ._ .... .. .........-.-.:...-..
Mayor
AGREII~NT
This Agreement, entered into this , 1986, by
and between the. City of Petaluma, a municipal corporation, hereinafter
called the "Self-Insurer".and the Redwood Empire Municipal Insurance Fund,
hereinafter called "R.E.M.L.F.", for certain services in connection with the
duties and responsibilities of the Self-Insurer under the provisions of the
Workers' Compensation Laws of the State of California as a result of injuries
to it employees.
GENERAL CONDITIONS
1. R.E.M.I.F. AGREES:
(a) To examine, on. behalf of the Self-Insurer, all reports of
industrial, .injury to or disease of employees reported to it.
(b) To conduct such investigation of such cases by its salaried
employees as in its judgment is deemed necessary.
(e) With the approval of the Self-Insurer,. to engage the services of
persons or firms outside its organization for- work in connection
with, investigations and adjustments of claims at the Self-
Insurer's expense., hereinafter referred to in "Allocated Loss
Expense""paragraph 3 (e).
(d) To decide on behalf`of the Self-Insurer what benefits, if any,
should be paid or rendered under the applicable Workers'
Compensation laws in each reported claim.
(e) To pay compensation, medical expense and Allocated Loss Expense
out of funds provided by the Self=Insur-er.
(f) To maintain a claim file on each reported claim which shall be
available to the Self-Insurer at al.l times for inspection.
(g) In the performance:. of its obligations under this contract, to
assign the work involved to persons who, in the opinion of
R.E.M.I.F., ane capable, competent, and experienced.
(h) To endeavor to~eonsult with and advise the Self-Insurer on any
matfer arising°n connection with the business of the Self-Insurer
which involves the subject matter of this contract.
(i) To provide all forms necessary for the efficient operation of the
worleers' compensation self-insured program, and. to prepare and
file all legally required forms..
(j) 'To furnish monthly Loss Experience Reports in sufficient
. quantities to meet the needs of the Self-Insurer.
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2. 'I'II SELF-INSURER AGREES:
(a) To make funds available upon which "R.E.M, T:`F. 'may' draw at ariy time
and from time to time for claims. "or -loss payments within the
discretionary settlement authority limit and for claim or loss
payments in.excess of the discretionary settlement authority limit
which are specifically approved; by the Self-Insurer and for all
Allocated Loss Expense.
(b) To pay to R.E.M.I.F. the services fee as prescribed and included in
the conditions of-this contract.. The service- fee is not included
in and does not include Allocated Loss Expense.
(c) All Allocated Loss~Expense, as defined herein, incurred in the
adjustment, handling.,. settlement,, or resistance to claims
(including litigation), within the discretionary settlement
authority limit of R.;E.M',I.F.., or in excess of the discretionary
settlement authority limit with the specific approval of the Self-
Insurer shall be borne by the Self-Insurer.
(d) That R:E.M.:I.F. shall have full authority and .control ;in all.
matters pertaining to the adjustment., handling, investigation,
and; administration of claims and losses within the discretionary
settlement authority limit and may make such adjustment or
settlement of claims with~ri the discretionary settlement
authority limit which in its judgment it deems proper.
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(e) That R:E:M.I.F. shall. maintain all records and stati"steal data on
losses arising from employee injuries .in accordance with the
requrements~of The Department of Industrial Relations, State of
California:
3. R.E.M.I.F.,AND THE SELF-INSURER MUTUALLY AGREE; THAT:
(a) This contract shall be in effect fora period of two years from date
of inception;: that it will be automatically renewed each year
thereafter~unless written notice to the contrary is given by either
party to the other, sixty (60) days prior to its anniversary date.
(b) In the event the Self-Insurer purchases Workers' Compensation
Insurance or .ts "Certificate of Consent to Self-Insurer" is
rescinded;, this contract automatically and immediately is
terminated and canceled.
(c) Upon termination of 'the contract, a.final accounting will be made
of the service fees and Allocated Loss Expense,. if any ow"ing
R.E..M.I.F: and of any funds belonging to the Self-Insurer in
possession of R.E.M.I.F. Any balance due will be promptly paid.
{;d) Any cla"ims(s) or loss(es) pending on date of contract termination
'will. be handled and adjusted to conclusion by R.:E:M:I.F, and
sufficient funds of the Self-Insurer shall remain available to
R,E,M'.L.F. "to liquidate such outstanding claims(s) or loss(es)
ncludi"ng sufficient funds to .satisfy anticipated Allocated Loss
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Expense. Should the Self-:Insurer peeify in writing to
R.E.M.`I.F. that pending claim(s:) and loss(es) are to revert to
control. of and become the responsib"ility of the Self-Insurer upon
date of contract termination, final accounting as per 3 (b) above
shall include any amounts due either party on account of such
pending claim(s) and loss(es) including Allocated Loss Expense.
(e) "Allocated Loss Expense" shall mean all. Workers' Compensation
Appeals Board or court costs, fees and .expenses; fees for service
of process; fees to attorneys:; the cost of services of undercover
operatives and. detectives; fees of independent adjusters or
attorneys for investigation or adjustment of claims in areas
removed from reasonable access. to salaried employees of
R.E.M.I.F..; the. costs of employing, experts for the purpose, of
preparing maps,. photographs., diagrams,. chemical or physical
analysis, or giving expert advice or opinions involving chemical
or physical questions; the cost. of copies of transcripts of
testimony at coroner's inquests or criminal or civil proceeding;
the cost of obtaining copies of any public records; the costs of
depositions and court reporter or recorded statements; and any
similar costs or expenses properly chargeable to the defense of a
particular claim or to protection of the. subrogation rights of the
Self-Insurer. Allocated Loss Expense is not included. in the
annual 'service fee.
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(f) This contract excludes services of a 'Safety Consultant or
Administrative Services not described above...
(g) The Self-Insurer agrees to pay~R.E:M.I.F. fees of $225.00 per claim
effective January 1, 1987 through June 30, 1987, with the fee to be
adjusted each. year (July 1 through June 30). The minimum
guaranteed number of claims per year is 90, and the minimum number
for the period, of January 1, 1987 to June 30, 1987 is ~5 claims.
(h) That such fees as described in paragraph 3 (g) above will be due and
payable semi-annually on July 1 and January T.
(i) R.E.M.IF. has settlement authority not to exceed $5,000 per
claim..
IN WITNESS, the parties have. caused this contract to be executed by the
-persons authorized to act in their respective names.
Signed this
day of , 1986.
REDWOOD ;EMPIRE MUNTCIEAL INSURANCE FUND CITY OF
BY
BROOK ARNER, President
ATTEST
BY
MAYOR
FRANK: E. JAMES, General Manager