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HomeMy WebLinkAboutHR12-270 - Original - Eberle Vivian, Inc. - Worker's Compensation Liabilities - 01/01/2013 CLAIMS ADMINISTRATION AGREEMENT THIS AGREEMENT is made and entered into between EBERLE VIVIAN INCORPORATED,with its principal place of business at 1209 Central Avenue So., #120, Kent, Washington,98032 (hereinafter referred to as "EV"), and, City of Kent with its principal place of business at 220 Fourth Ave S , Kent,WA 98032 (hereinafter referred to as "the Client") WITNESSETH WHEREAS,the Client maintains a self-insured plan to cover its Workers' Compensation liabilities in the State of Washington, and EV has agreed to perform certain services in connection therewith, as herein set forth: NOW,THEREFORE,it is agreed as follows: 1. The term of this Agreement shall be for the period of one (1) year commencing January 1,2013 and ending December 31,2013. Nonetheless, this Agreement may be terminated by either party at any time by giving not less than sixty (60) days written notice to the other party,and EV may terminate this Agreement on shorter notice in the circumstances described in Sections 3(c) and 5(e). If no notice is given,this contract will be renewed for another twelve (12) month period without further action by either party using the U.S. Department of Labor Consumer Price Index previous 12 months percent change for the Seattle Metro area to increase the annual fees plus two percent of the current annual fee to increase the annual fees 2. During the period of this Agreement, EV shall represent and act for the Client in matters pertaining to the actual or potential liability of the Client for claims based on injuries to the Client's employees which occur during the term of this Agreement that are or should be, in the Client's judgment, handled pursuant to the self-insured provisions of the Industrial Insurance Act of the State of Washington (the "Act"). More specifically, EV shall. (a) Receive notice of and create files on each claim reported and maintain these files for the Client. (b) Investigate all claims as required to determine their validity and compensability (c) Determine proper benefits due on compensable claims. EV/City of Kent Contract Agreement Page 2 (d) Make timely payment of benefits due, in accord with payment procedures as established from funds provided by the Client. The Client will be wholly responsible for providing such funds as may be r. required for these payments (e) Prepare documentation and defense of cases considered non- compensable and assist legal counsel selected by the Client in preparation of cases for hearing, appeals,and/or ti ial (f) Maintain and provide the Client pertinent data on all claim payments (g) Provide monthly and/or quarterly computerized loss reports in a tailored format,as mutually agreed at inception of the program, showing descriptive data, details of each month's payments,total payments, reserves and total experience for each claim (h) Provide the Client's excess insurers such reports as they may reasonably require within specific excess coverage reporting requirement (1) Provide information and assistance as may be reasonably required for preparation and filing of all reports required by the Act and any other applicable law in connection with the Client's approved self-insured status. (j) File with the appropriate State of Washington administrative agencies, including but not limited to the Department of Labor and Industries, such information as is required by the Act and any other applicable law with respect to each claim (k) Provide loss control services,defined as loss control,consultations and surveys as mutually agreed. (1) Perform all services to be rendered pursuant to this Agreement in full compliance with the Act and all other applicable law 3 In consideration of the services to be performed by EV hereunder, the Client shall pay to EV. (a) A service fee of$51 .250 00 per year for all claims administration service performed within the contract period (b) Such additional fee as mutually agreed by the parties for any services in addition to those described in Section 2 that are requested by the EV/City of Kent Contract Agreement Page 3 Client. (c) Interest of 1 5% per month on invoices not paid within 30 days of client's receipt thereof In the event invoices are not paid within sixty (60) days of client's receipt thereof. EV may terminate this Agreement,at its option, after ten (10) days written notice to the Client. 4. (a) EV will indemnify and hold harmless the Client from any and all damages, loss,cost,fines,assessments, penalties or expense to which the Client may be subjected, including reasonable attorneys'fees and expenses in defending against any threatened or actual claim, arising directly or indirectly from EV's breach of this Agreement or the willful misconduct or negligent acts or omissions of EV and/or its employees in connection with activities undertaken pursuant to this Agreement. (b) The Client will indemnify and hold harmless EV from any and all damages, loss, cost,fines,assessments, penalties or expense to which EV and/or its employees may be subjected,including a reasonable attorneys' fees and expenses in defending against any threatened or actual claim,arising from EV's or its employees' activities undertaken pursuant to this Agreement unless such threatened or actual claim was solely the result,directly or indirectly,of EV's breach of this Agreement or the willful misconduct or the negligent act or omission of EV and/or its employees, in which event the Client shall have no obligation to defend or indemnify under this subsection 5. The Client agrees: (a) To pay EV the fee provided for hereunder and any other fees agreed to by the Client (b) To pay all allocated loss expense,as hereinafter defined, in addition to the fees to be paid to EV Allocated loss expense is defined as reasonable attorneys' fees, court and/or hearing costs, costs of depositions,documents and exhibits, witness and expert fees, medical and engineering appraisal, surveillance, independent adjusting, photography and other incidental and special costs incurred to evaluate compensabilrty of claims. (c) To make funds available to EV to be used by EV to pay claims that the Client V determines it should pay pursuant to the Act and allocated loss expense EV/City of Kent Contract Agreement Page 4 (d) To advise EV on a timely basis of all pertinent excess insurance reporting requirements and/or reporting modifications for all annual periods for which claim administration services are provided. (e) That this Agreement is entered into with the assumption that existing Federal, State or other jurisdictional regulations will remain in effect for the duration of this Agreement. The Client agrees that should administrative or other costs of service provided hereunder be substantially increased as a result of modifications in existing law,enactment of new legislation,or promulgation of new administrative guidelines, The Client and EV agree to attempt to negotiate an adjustment to the service fees to equitably reflect the effect of such change. If the parties cannot agree on a revised service fee, EV may terminate this Agreement,at its option,after thirty (30) days written notice to the Client 6. All claims and related files generated by EV as a result of its activity under this Agreement shall remain at all times the property of the Client with the exception of any supporting data required by EV to make such accountings to the Client or excess insurers as are required in this Agreement. EV will retain claim files for three (3) years following date of closure returned, at the Client's direction and Thereafter.files may be et expense,to the Client or forwarded to such location as may be designated for continued storage Upon EV's request,closed claim files will be returned for additional administration as may be required In the event of termination or non-renewal of EV's services, EV will, at the Client's request and expense,transfer all open and retained closed claim files to the Client or its designee, as of the effective date of termination 7. EV is retained by the Client only for the purposes and to the extent set forth in this Agreement,and its relationship to the Client shall be that of an independent contractor. 8. The Client agrees that during the term of this Agreement and for a period of one (1) year following its termination, it will not employ any person employed by EV during the term of this Agreement without the prior written consent of EV. EV/City of Kent Contract Agreement Page 5 9 Any notice required or permitted to be given under this Agreement shall be sufficient if given in writing and sent by registered or certified mail to the Client or to EV at the addresses first set forth above or to any other address of which written notice of change is given 10. The waiver by EV or the Client of the breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by either party or prevent either party thereafter enforcing any such provision. 11. This Agreement is for the term provided for in Section 1. Upon termination of this Agreement,the Client shall have the option to: (a) Assume all open claims pending for the terminated or non-renewal portion of the program as of the effective date of termination or non- renewal,provided, however,that EV shall be entitled to receive its full fee for all quarters beginning prior to the effective date of termination or non-renewal, or (b) Upon agreement by both parties to a rate of compensation, require EV to continue administration ,to conclusion,of all open claims associated with that portion of the program terminated or non- renewed Such rate of compensation shall thereafter be reviewed by the parties on an annual basis and shall be the subject of mutual agreement between the parties. Adequate funds shall continue to be made available by the Client for the payment of claims and allocated loss expense until all claims are liquidated. (c) In the event the Client requests EV to provide post-termination or non-renewal claims administration,upon agreement by both parties to a rate of compensation,the Client may continue to purchase computer data services. Such rate of compensation shall thereafter be reviewed by the parties on an annual basis and continued on-line services shall be the subject of mutual written agreement between the parties. 12 The obligation of EV to perform its duties hereunder is conditioned upon the Client's cooperation with EV with respect to the activities of EV including, but not limited to,responding to EV's requests for information promptly, providing excess carrier reporting requirements, meeting with EV and/or third parties,as may be needed, making decisions on matters which, in the professional opinion of EV, should be made by the Client, the provision of funds referred to in Section 5, and performance by the Client of all other obligations of this Agreement. EV/City of Kent Contract Agreement Page 6 13. This Agreement may not be assigned by either party without the prior written consent of the other party, which consent will not be unreasonably withheld. 14. Any unresolved dispute between the Client and EV which may arise from the obligations of either party as set forth herein. will be resolved by arbitration on the written request of either party. Such arbitration shall be binding upon the Client and EV The parties shall attempt in good faith to select a single arbitrator within 15 days of the written request for arbitration If they are unable to select a single arbitrator within said period,then each party shall select an arbitrator If the two arbitrators cannot agree on a third within fifteen (15) days,either party may request that selection be made by a judge of a court having competent jurisdiction. The laws of the State of Washington will apply. The prevailing party in any such arbitration shall be entitled to an award by the arbitrators of its reasonable attorneys' fees and costs associated with such arbitration and in any subsequent court enforcement or appeal thereof. 15. This Agreement sets forth all of the terms,conditions,and agreements of the parties relative to the subject matter hereof and supersedes any and all such former agreements which are hereby declared terminated and of no further force and effect upon the execution and delivery hereof There are no terms, conditions or agreements with respect thereto,except as herein provided and no amendment or modification of this Agreement shall be effective unless reduced to writing and executed by the parties. All terms,conditions,and definitions as set forth in this Agreement will be interpreted under the laws of the State of Washington IN WITNESS WHEREOF,the parties hereto have executed this Agreement in duplicate counterparts as of this date written and the persons signing below warrant that they have the authority to execute this Agreement EBER E V INCORPORATED CITY OF T By: isa ivian jPresiden Ti Date: (yl I D , 1 Date. �— REQUEST FOR MAYOR'S SIGNATURE KENT Please Fill in All Applicable Boxes T Reviewed by Director Originator's Name: Chris Hills Dept/Div. Corrections Extension: 5285 Date Sent: 12-12-12 Date Required: 12/14/12 Return to: Chris Hills CONTRACT TERMINATION DATE: 12-31-13 VENDOR: Eberle Vivian DATE OF COUNCIL APPROVAL: 12/11/12 ATTACH THE COUNCIL MOTION SHEET FOR THE MAYOR - If applicable Brief Explanation of Document: Contract for claims administration for the City's Workers' Compensation Liabilities. RECEIVED DEC 12 2012 City of Kent Office of the Mayor All Contracts Must Be Routed Through The Law Department (This area to be completed by the Law Department) Received: � D Approval of Law De t.: ' I Ja p DEC 12 20t� Law Dept. Comments: j � 1l v KEN T ; , W DE 1, T. Date Forwarded to Mayor: Shaded Areas To Be Completed By Administration Staff Received: Recommendations and Comments: DEC 4 2012 Disposition: �Z�J3�✓Z ,¢�GL - 7lYlU CITY U KENT CM n.HRK Date Returned: