HomeMy WebLinkAbout940676 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 County of Weld, State of Colorado, by and through
the Board of County Commissioners of Weld County, and the Colorado Counties
Casualty and Property Pool, commencing July 1, 1994, and ending June 30, 1995,
with 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 County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and the Colorado Counties Casualty and Property
Pool 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 20th day of July, A.D. , 1994, nunc pro tunc
July 1, 1994.
ATTEST: alik/a444
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
Weld County Clerk to the Board h" ` f1/ (A .' (''M'
Webster, Ch irman
BY: il/1c (J � l�_ JY16ktf v '
Deputy Ciiirk to the Board Dale K. Hall, Pro-Tem
APPRO S TO FORM: EXCUSED
Geo e E. Baxter
/ y626
ounty Attorney nstance L. Harbert
EXCUSED
Barbara J. Kirkmeyer
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AGREEMENT FOR PARTIALLY SELF-FUNDED PROGRAM
THIS AGREEMENT is entered into this 1st day of July, 1994 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 1994-1995, while having CAPP continue to provide claims
adjudication and management services and loss control and prevention programs for the
County and CAPP>:is wil.11ing to provide such services ors the term:and conditions hereafter
tiji'stated.
ARTICLE 2 0 TERM
2.1 This Agreement shall take effect on July 1, 1994, 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 $198,691 by AUGUST 15, 1994, for insurance coverages and
services rendered by CAPP for the period July 1, 1994 - June 30, 1995. For services
provided by CAPP after June 30, 1995, 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 $94,121 in 1994 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 reasonably incurred by
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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 15, 1994. 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 agrgp§ that .tlq, timely :;paymen.E;of all'amewts billed to it pursuant to this
Agreement is an obligation of the County under the lnterrovernmental Agreement. The
County agrees that any tai:1:u're to.s Y or any failure othee r*oudty to comply with any
other provision of this Agreginent, swill fesu t inpulsion of the County from CAPP, and
will subject the Bounty to all tith ..ex
er 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 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.
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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 Intergovern-
mental 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 qualjt ed claims:.=under,d a,Policies are closed and
to pay CAPP's costs pursuant tapara raph;5.3
5.3 Upon withdrawal or expulsion of t(1e Coun from CAPS, CAPP 0hall retain all pending
claim files. Thetounfy"shall C( itinue to "pay CAPP''for afl"tosts 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.
7.2 Time is of the essence in the performance of the parties' obligations and duties under this
Agreement.
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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 penver Cltsttict Court.
7.6 Notices in con ne, tion 'vr::ith this Ag:reerrlenCand 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 to the rules
of the American Arbitration Association or other Colorado court annexed arbitration system
in Denver, Colorado, as the Board may determine.
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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, 1994.
COLD b0 COUNTIES CASUALTY AND PROPERTY POOL (CAPP)
I 41/ /c/Pd7 /1
By:
Title: President, LAPP Board of Directors
WELD COUNTY, COLORADO (County)
BY a�._: { Li /( Date:
Chair Board f o ty o /mission
By. de /d ,, t _ __ Date: 7720/7,/
County Clerk t`O oaaa
(COUNTY `FA!_)
071194/1442[dkmiccts I\capp\selffund.agm
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