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HomeMy WebLinkAboutResolutions - 1988.01.21 - 17428Y APPROVE THE FOREGOING niel 4 Le y;6rfty DO4 MISCELLANEOUS RESOLUTION #88002 January 21, 1988 BY: FINANCE COMMITIFE, DR. G. WILTJAM CADDELL, CHAIRPERSON RISK MANAGER- IN RE: IMPREST CASH ACCOUNT -WORKERS COMPENSATION , TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS Miscellaneous Resolution #81012 authorized the establishment of a self-insured Workers' Compensation Fund for county officials and amployees; and WHEREAS an imprest cash account established for the administrator of the Workers' Compensation Fund will substantially reduce cost and administrative burden to the County; and Fred S. Janes and Company has been retained to administer said fund, under a professional services contract reviewed December 3, 1987 by the Finance Committee, for the period December 31, 1987 through January 1, 1989; and WHEREAS the establishment of an imprest cash account is specified in the contract so that James and Company can effectively pay qualified claims and losses; and WHEREAS sufficient funds are available in the Workers Compensation Fund to establish an tmprest cash account. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the establishment of an imprest cash account for the administrator of the Workers' Compensation Fund not to exceed $50,000. BE IT FURTHER RESOLVED that funds be transferred within the Workers' Compensation Fund, as specified below to support the tmprest cash account: 1-75310-001-001 Workers' Compensation Cash $(50,000) 1-75310-060-001 Workers' Compensation imprest Cash 50,000 -0- Mr. Chairperson on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE ER efi,.c.6%/4 ovUo--/ vvn C4 -k CPP.f TY 41 \- A , SERVICE AGREEMENT FOR ADMINISTRATION OF " A WORKERS COMPENSATION SELF-INSURANCE PROGRAM''N/ Qz, Agreement entered into this 31st day of December, '1987, by and between Fred. S. James & Company of Michigan, and County- of Oakland ("CLIENT"). RECITALS 1. CLIENT proposes to self-insure its workers' compensation risks and desires to have JAMES provide specific services in connection with such self-insurance program. 2. JAMES is willing to provide such services on the terms and , conditions hereinafter stated. AGREEMENT Services to Be Performed by JAMES: JAMES agrees to perform the following services: A. With regard to CLAIMS ADMINISTRATION, JAMES shall: (1) Review all claim and loss reports received from CLIENT during the term of this Agreement and process each such claim or loss report in accordance with applicable statutory and administrative regulations; Conduct an investigation of each reported claim or loss. under subparagraph (1) above (hereinafter referred to as a "qualified claim or loss") to the extent deemed necessary by JAMES in the performance of its obligations hereunder; (3) Arrange for independent investigators or medical or other experts to the extent deemed necessary by JAMES in connection with processing any qualified claim or loss; 1 (2) 2 (4) Pay medical and death benefits, temporary and permanent disability compensation and other losses and expense, but only if, in the judgment of JAMES, such payment would be prudent for CLIENT and the anticipated aMount thereof does not exceed the limit specified in accordance with paragraph 3 below, ,or, in any case,' CLIENT specifically approves or directs such action; (5) Perform reasonable and necessary - administrative . and . clerical work in connection with qualified claims or losses including the preparation of checks bearing the name of JAMES and .drawn on the account or accounts established pursuant to paragraph 2C below; claim or loss which by CLIENT :at any (6) Maintain a file for each qualified shall be available for review reasonable time; all qualified claims or losses potential losses may exceed if reqUested, provide such information on the current losses unless relieved of this obligation by CLIENT pursuant to paragraph 2E below;. (8). Assist in preparing the defense of litigated cases, negotiating settlements and pursuing, subrogation or contribution actions; attend all trials held at the. Workers' Compensation Bureau. (9) Monitor the treatment programs recommended for employees by physicians, specialists and . other health care providers by reviewing all reports prepared by them and maintaining such contact with these providers as may be appropriate in the judgment of JAMES; • , (10) As CLIENT directs, assist in interpreting medical reports to consider the circumstances under which an ill or injured employee could return to work in the shortest period of time; (7) Notify excess insurers of with respect to which CLIENT's retention and, insurers with necessary status of those claims or 5 1F (11) Assist CLIENT in arranging for rehabilitation or retraining of employees in appropriate, cases; • (12) maintain a current estimate of the expected total cost of each qualified claim or loss; • (13) Use computer programs to furnish to CLIENT selected less and information reports which are entitled: Claim and Expense Report - Monthly Transaction Register - Monthly Loss Analysis Report - Quarterly These reports shall contain such information as the 'date and condensed description of the incident, other identifying information, the payments made, estimated future costs and total expected costs of the claims or losses as well as summary and other data; (14) Provide narrative or analytical reports of major or litigated claims, if requested by CLIENT; (15) provide claims forms and other forms believed by JAMES to be appropriate for the efficient operation of the self-insurance program. B. With regard to MEDICAL CONTROL, JAMES shall: (1) Assist CLIENT, where permitted by law, in the selection of a panel of physicians or other providers of health care to initially treat employees and a panel of medical specialists to provide long-term or specialty care, (2) Consult with CLIENT in order to develop ways of using any in-house dispensary or other medical facility more effectively. C. With regard to EMPLOYEE COUNSELING, JAMES shall: (1) AS CLIENT directs, provide information to ill or injured employees regarding the benefits available under the self-insurance program and counsel any such employees who wish to obtain the assistance of third parties (non-legal) in dealing with problems arising out of work-related illnesses or injuries; 3 (a) (b) (c) z• (2) (3) If CLIENT reques t s, consult with employee groups in regard to specific aspects • of the self-insurance program; Assist CLIENT in developing policies and procedures to ensure that an employee's return to work or reassignment is consistent with any findings of an appropriate state administrative agency. D. With regard to PROGRAM DEVELOPMENT, JAMES shall, to the - extent appropriate: (1) Consult with key personnel of CLIENT on the establishment and coordination of necessary procedures and practices to meet any applicable state requirements and the needs of CLIENT; (2) Participate in the orientation of CLIENT's personnel' who are directly or indirectly involved in the processing of qualified claims or losses; (3) Provide information on changes or proposed changes in legislation, rules or regulations affecting the responsibility of CLIENT; (4) Review the development of the self-insurance program periodically with representatives of CLIENT in order to identify problems and recommend corrective action. E. JAMES shall also furnish appropriate renewal application forms and shall file all periodic reports and renewal applications required by state admtnstrative agencies to maintain the self-insurance program. F. JAMES shall: James shall provide the equivalent of 15 days Risk Control services per annual term which is included in the flat rate charged. Additional services can be purchased at an hourly rate of $65 per hour subject to an increase of no more than 10% per year for 1989 and 1990. 4 . Obligations of CLIENT: A. CLIENT shall pay to JAMES a service fee which, in the first year of this Agreement, shall ba computed and payable as follows: The annual flat rate charge for the initial Contract period from 12/31/87 - 01/01/89 shall be $35,900 to be paid in one installment due 30 days from the contract inception date. Subject to the provisions of paragraph 5 below, the amount and schedule for payment of the service fee to be paid to JAMES in any subsequent contract year shall' be specified in accordance with paragraph 10 of this Agreement. If client initiates cancellation of this contract, the contract will be cancelled on a pro rata basis subject to a minimum of 33.1/3% in any contract year. B. CLIENT shall at all times provide funds adequate for the. payment of qualified claims or losses and of allocated loSs expenses. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties incurred by JAMES, it agents or its employees, which are properly chargeable to a qualified claim or loss including, without limitation, court costs, fees and expenses of attorneys, investigators, experts and witnesses, and fees for obtaining diagrams, reports, documents and photographs.. C. CLIENT shall deposit such funds in a bank account or accounts established by and belonging to JAMES. jAME$ shall have ftkil responsibility for the care, custody and control of 'such account or accounts, and CLIENT shall 'readily make such funds available to JAMES for use in the payment of its qualified claims and losses. Such funds shall be provided at: the' inception of the self-insurance program in the amount .of $50,000 and will be promptly replenished from time' to time. thereafter, based upon estimates furnished by JAMES of the anticipated or actual level and volume,of qualified claims or losses and allocated loss expenses. Any individual payment exceeding $10,000 will be sent directly to the client for immediate approval prior to actual payment of the expense enabling client to appropriately transfer' funds into .,their banking account. D. It is expressly understood that JAMES shall not he required to advance its own funds to pay losses or allocated :1055 expenses hereunder, or to perform any services hereunder if CLIENT fails to provide adequate funds as herein set forth. 5 6 - E. CLIENT shall provide JAMES with excess intormation for the policy years necessary for proper notification of applicable' claims to such insurers by JAMES. 3. Discretionary Disbursement Authority Limit: The limit on any discretionary payment by JAMES for a qualified claim or loss, or for allocated loss expenses, as the case may be, shall be $5,000. This amount may be changed . at any time by CLIENT upon written notice to JAMES. It is agreed that JAMES shall have full authority and control in all matters pertaining to the payment, processing,' investigation and administration of qualified claims or losses within the limit established by this paragraph. Failure of JAMES to settle a qualified claim or loss within such limit, however, shall not subject JAMES to liability to any party in the event of an adverse judgment entered by any court or the settlement of such claim or loss for an amount in excess of such limit, Geo9raphic Limitations: This Agreement shall cover all operations of CLIENT in the following geographic areas or locations: Michigan operations. Term of Agreement and Cancellation: A. The initial term of this Agreement shall be for one year ending on 01/01/89. If not cancelled in accordance with this paragraph, this Agreement shall be renewed automatically for successive twelve month periods thereafter. However, this Agreement shall not be so renewed unless. the amount of the service fee to be paid to JAMES in any year after the third, and the fee to be paid pursuant to paragraph 5C below, shall have been agreed upon by the parties hereto not later than sixty (60) days prior to the end of the preceding contract year. . B. This Agreement may be cancelled by either party at the end of any contract year, provided that written notice of such cancellation is received by the other party not later than ninety (90) days prior to the end of such year. JAMES will continue to process any qualified claims or losses remaining open at the termination of this Agreement, provided that CLIENT shall continue to make adequate funds available for the payment of such qualified claims or losses and any allocated loss expenses. D. Upon termination of this Agreement, CLIENT shall be entitled, if it so requests, to have the files JAMES has mainta'ined for qualified claims or losses (but not including any computer hardware, firmware, software or other proprietary information of JAMES); provided, however, that JAMES or its agents, employees or attorneys shall continue to •be entitled to inspect such files and make copies or extracts therefrom. if CLIENT does not request these files, they will be retained or destroyed at JAMES option and CLIENT shall have no receurse against JAMES for failure to retain them. r' Practice of Law: It is understood and agreed that JAMES will not perform, and CLIENT will not request performance of, any services which may constitute the unauthorized practice of law. Indemnification: JAMES shall be fully responsible for exercising reasonable care at all times in the performance of its obligations ' hereunder. However, if JAMES is named as a party to any litigation because of its actions on behalf of CLIENT' hereunder, CLIENT agrees to defend JAMES in any such litigation if no allegation is made that JAMES failed to exercise such reasonable care, and to hold harmless and indemnify JAMES if no finding is entered to the effect that JAMES failed to exercise such reasonable care. Notices: Any notice required to be given under this Agreement shall be sent by certified or registered mail to James R. Parry in the case of JAMES, and to Stanley B. Fayne in the case of CLIENT. 9,, Successors: This Agreement shall be binding upon and shall inure to the benefit of all assigns, transferees and successors'.in interest of any kind of the parties hereto. County of Oakland By Title Date el.• James & of MI AO James R. Parr President-ESJ(4 Co of MI Fre Date 10. Entire Agreement and Modification or Amendment: This Agreement represents the entire and exclusive statement of the agreement of the parties and, except as otherwise provided in paragraph 3 above, may be modified or. amended only by a written statement signed by both parties. Such modification or amendment shall be attached to, and -shall thereupon become a part of, this Agreement, 11. Applicable Law: The terms and conditions of this Agreement shall be governed by the laws of the State of Michigan. 12. Headings: Headings herein are for convenience of reference only and shall not be considered in any interpretation of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and date first above written. 8 ADDENDUM I SERVICE FEES 1988 $ 35,900 Flat Rate 1989 ' $ 38,400 Flat Rate 1990 $ 40,900 Flat Rate IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and date first above written. County of Oakland Fred . James & Co. of MI 1 PY By James R. Parry rtle ate eCo of MI 'T. 1 1- 1 e President-FSJ ate Date ALLEN RESOLUTION # 88002 January 21, 1988 Moved by Wilcox supported by Law the resolution be adopted. AYES: Jensen, R. Kuhn, Lanni, Law, Luxon, McConnell, McDonald, A. McPherson, R. McPherson„ Moffitt, Oaks, Pernick, Price, Rewold, Skarritt, Wilcox, Aaron, Bishop, Calandra, Crake, Doyon, Gosling. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of this Miscellaneous Resolution adopted by the Oakland County Board of Commissioners at their meeting held on January 21, 1 988 with the orginial record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. in Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan 21st day of LI ) _January 19 88 Counity Clerk/Register of Deeds this