HomeMy WebLinkAbout930836.tiff RESOLUTION
RE: APPROVE AGREEMENT FOR PARTIALLY SELF-FUNDED PROGRAM WITH COLORADO
COUNTIES' CASUALTY AND PROPERTY POOL AND AUTHORIZE CHAIRMAN TO SIGN
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Agreement for Partially
Self-Funded Program between the Colorado Counties' Casualty and Property Pool and
Weld County, commencing July 1, 1993, with the further terms and conditions being
as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said
agreement, a copy of which is attached hereto and incorporated herein by
reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Agreement for Partially Self-Funded Program between
the Colorado Counties' Casualty and Property Pool and Weld County be, and hereby
is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 23rd day of August, A.D. , 1993, nunc pro
tunc July 1, 1993.
/01/1" BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUNTY, COLORADO
Weld County Clerk to the Board ( ' Ti.�io
Constance H rbert, Chairman
271
BY: L �,
Deputy lerk to the Boar W. ,bste , Pro-Tem
APPROVED AS TO FORM: 2 -c
•
Dal K. Hall '
County Atto ney # r
b/ J
x�r.fJJ' O
ra J. Kirkmey r 7
930836
crnnllo Cc : it �� l
AGREEMENT FOR PARTIALLY SELF-FUNDED PROGRAM
THIS AGREEMENT is entered into this 1st day of July, 1993 by and between the
Colorado Counties Casualty and Property Pool ("CAPP" or "Pool"), a legal entity formed by
intergovernmental agreement under Colorado law, and Weld County ("County"), a political
subdivision of the State of Colorado.
ARTICLE 1.0 RECITALS
1.1 The County is a member in good standing of CAPP and has adopted the CAPP Bylaws
and Intergovernmental Agreement (the"Intergovernmental Agreement"), as amended from
time to time by the CAPP membership.
1.2 The County is current with respect to all of its obligations to CAPP and therefore eligible
to participate in CAPP's partially self-funded option program (the "Program").
1.3 The County wishes to self-fund through CAPP a portion of its anticipated property and
casualty claims for program year 1993-1994, while having CAPP continue to provide
claims adjudication and management services and loss control and prevention programs
for the County and CAPP is willing to provide such services on the terms and conditions
hereafter stated.
ARTICLE 2.0 TERM
2.1 This Agreement shall take effect on July 1, 1993, and shall coincide with the term of
CAPP's obligations to pay the retention under the St. Paul Excess Property, National
Union Excess Liability, and Travellers Boiler and Machinery Policy (hereafter "Policies"),
subject to paragraph 3.7 of this Agreement.
ARTICLE 3.0 OBLIGATIONS OF COUNTY
3.1 The County shall pay CAPP $167,039 by AUGUST 30, 1993, for insurance coverages
and services rendered by CAPP for the period July 1, 1993 - June 30, 1994. For services
provided by CAPP after June 30, 1994, pursuant to paragraph 4.1 of this Agreement, the
County shall budget, appropriate, and irrevocably pledge an annual fee to be determined
by the CAPP Board of Directors.
3.2 The County shall budget, appropriate, and irrevocably pledge $84,416 in 1993 and
thereafter at least annually shall budget, appropriate and irrevocably pledge additional
funds sufficient, which may be determined from time to time by CAPP after consideration
of actuarial or other financial reports, for the payment of the first $125,000 of each
qualified claim and allocated loss expenses subject to the Policies ("County self-funded
retention"), none of which payments shall be the responsibility of CAPP. For this
purpose, allocated loss expenses means all costs, charges, or expenses of third parties
1
101471341•11C•
reasonably incurred by CAPP, its agents or its employees, which are properly chargeable
to a qualified claim including, without limitation, court costs, fees, and expenses of
attorneys, independent investigators, experts and witnesses, and fees for obtaining
diagrams, reports, documents, and photographs; and "qualified claims" means those
claims for which coverage is provided pursuant to the Policies, subject to any additional
coverage limitations imposed by CAPP.
A $20,000 claims deposit shall be paid to CAPP by August 30, 1993. Additional funds
shall be forwarded to CAPP from time to time based on payments for qualified claims and
allocated loss expenses. Interest earned on payments made to CAPP pursuant to this
paragraph 3.2 shall be credited to CAPP.
3.3 The County shall pay promptly CAPP's invoices pursuant to paragraph 3.2 within fifteen
(15) days of receipt. Interest on any overdue payment shall accrue at the rate consistent
with the Intergovernmental Agreement.
3.4 It is the parties' intent that at all times CAPP shall have available sufficient funds from the
County to pay promptly all proper charges to the County self-funded retention. The
parties do not intend for CAPP to be required to advance CAPP funds to pay the County
self-funded retention or to perform services if the County fails to provide necessary funds
as provided in paragraph 3.2.
3.5 The County agrees that the timely payment of all amounts billed to it pursuant to this
Agreement is an obligation of the County under the Intergovernmental Agreement. The
County agrees that any failure to so pay, or any failure of the County to comply with any
other provision of this Agreement, will result in expulsion of the County from CAPP, and
will subject the County to all other remedies and consequences provided for in this
Agreement and in the Intergovernmental Agreement.
3.6 If the County is entitled to any credit or payment under Article XI of the Intergovernmental
Agreement for any year, and if the County fails to timely pay any amounts due under this
Agreement, the Board may, in addition to any other remedies it has, apply against any
such amounts due the amount of any credit or payment CAPP owes or may in the future
owe to the County as a result of such membership.
3.7 The County's obligations under this Agreement are subject to and conditional upon the
County annually budgeting, appropriating, and irrevocably pledging funds as provided in
paragraphs 3.1 and 3.2 of this Agreement. However, the County agrees that coverage
of the County through CAPP under the Policies and the services to be provided the
County by CAPP are conditional upon such annual budgeting, appropriation, irrevocably
pledging of funds, and timely payment of all amounts due in accordance with this
Agreement and the Intergovernmental Agreement, and upon the County's compliance with
all other provisions of this Agreement. The County further agrees that failure by the
County to so budget, appropriate, irrevocably pledge, or make such payment or to so
comply will result in no coverage through CAPP under the Policies for any pending
qualified claims for which the County fails to provide funds or pay fees as provided in this
2
930835
Agreement, will result in cancellation of coverage under the Policies, and will result in
termination of any services provided to the County by CAPP under paragraph 4.1.
3.8 The County shall pay the full amount then pledged pursuant to paragraph 3.2 upon the
request of the CAPP Board if the CAPP Board reasonably determines that CAPP needs
the payment in order to meet applicable regulatory or statutory requirements.
ARTICLE 4.0 OBLIGATIONS OF CAPP
4.1 For qualified claims of the County under the Policies: CAPP will supervise, administer,
manage and provide claims adjudication through Aon Insurance Management Services,
Inc. or such other entity or person as the Board of Directors of CAPP ("Board") may
determine, until further notice thereof provided to the County, in accordance with the
Intergovernmental Agreement and shall act as the representative of County in all matters
related to such services.
ARTICLE 5.0 WITHDRAWAL AND EXPULSION
5.1 Withdrawal or expulsion of the County from CAPP shall not affect the obligations of the
County or CAPP under this Agreement.
5.2 On or before the effective date of withdrawal or expulsion of the County from CAPP, the
full amount then pledged pursuant to paragraph 3.2 shall be paid to CAPP plus such
additional amount as the CAPP Board may reasonably determine is necessary to pay the
County's self-funded retention until all qualified claims under the Policies are closed and
to pay CAPP's costs pursuant to paragraph 5.3.
5.3 Upon withdrawal or expulsion of the County from CAPP, CAPP shall retain all pending
claim files. The County shall continue to pay CAPP for all costs associated with the
County's claims paid through CAPP which are subject to the County's self-funded
retention in excess of the payment made pursuant to paragraph 5.2.
ARTICLE 6.0 INFORMATION
6.1 All information developed for or specifically relating to claims servicing for the County,
including all source documents, stored data and technical, claims, and other information
of any kind, and reports prepared by or for CAPP, are the property of CAPP and remain
CAPP exclusive property during the existence of and after termination of this Agreement.
The County shall have reasonable access to such information, and the right, upon
reasonable request, to copy the same at the County's own expense.
ARTICLE 7.0 GENERAL PROVISIONS
7.1 This Agreement is personal to each of the parties and no party may assign or delegate
any of such party's rights or obligations hereunder without first obtaining the written
consent of the other party.
3
533093%
7.2 Time is of the essence in the performance of the parties' obligations and duties under this
Agreement.
7.3 If any portion of this Agreement is declared invalid or unenforceable pursuant to a
challenge by the County or by any officer, employee, or resident of the County, or by any
other person except CAPP, the CAPP Board shall determine whether the Agreement is
or is not severable and its decision shall be final. If the Board determines the Agreement
is not severable, the entire Agreement shall be terminated effective on such date as the
Board may decide, the County's coverage under the Policies shall be terminated as to
all pending and future claims as of that date, and all services by CAPP to the County
shall be terminated as of that date except for claims adjudication under paragraph 4.1 for
claims for which coverage is not terminated under this paragraph, if any exist. Nothing
shall prevent the County from obtaining coverage through CAPP in the same manner as
other non-self-funded members.
7.4 This Agreement does not alter the Intergovernmental Agreement and the County retains
all obligations of a CAPP member as set forth therein. The obligations of the County
under this Agreement are obligations of the County within the meaning of the
Intergovernmental Agreement.
7.5 This Agreement may be enforced by the parties or by any member, if so authorized by
the CAPP Board of Directors. All costs incurred by CAPP in the attempt to collect any
amount due under this Agreement, including reasonable attorney fees, court costs, and
any arbitration costs, shall be paid by the County. The venue for any court action related
to this Agreement shall be the Denver District Court.
7.6 Notices in connection with this Agreement and its Addenda shall be delivered to the
following in the case of CAPP:
Colorado Counties Casualty and Property Pool
do County Technical Services, Inc.
1177 Grant, Suite 200
Denver, CO 80203
and to the following in the case of County:
CAPP Designated Correspondent
7.7 Any functions, powers, and responsibilities of CAPP provided for in this Agreement shall
be exercised by the CAPP Board or its authorized designee.
7.8 In addition to any other remedies which may exist, the CAPP Board may submit any
dispute under this Agreement to advisory arbitration, which shall be conducted pursuant
4
to the rules of the American Arbitration Association or other Colorado court annexed
arbitration system in Denver, Colorado, as the Board may determine.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the
following persons authorized to act on behalf of their respective entities, dated and effective as
of July 1, 1993.
COLOR COUNTIES A UA Y AND PROPERTY POOL (CAPP)
By:
Title: r ident, AP oar of Directors
WELD COUNTY, COLORADO (County)
By: ,0-9J(>/ers..7. h` �.Clec,,- Date: 08/23/93
Chair, B rd of o t m ssioners 08/25/93
By: Date: 08/23/93
Clerk to t Board
By• -L �r,1,i
Deputy Clerk to the Boa
(COUNTY SEAL)
081693/1133]dkm]c:ctskcapp\selff und.agm
5
9,3083%
Hello