HomeMy WebLinkAbout931099.tiff RESOLUTION
RE: APPROVE AGREEMENT FOR PAYMENT OF ADDITIONAL CONTRIBUTIONS WITH COUNTY
WORKERS' COMPENSATION 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 Payment of
Additional Contributions between County Workers' Compensation Pool and Weld
County, Colorado, with the 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 Payment of Additional Contributions
between County Workers' Compensation Pool and Weld County, Colorado, 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 25th day of October, A.D. , 1993.
/ ) J BOARD OF COUNTY COMMISSIONERS
ATTEST: t J ,�f th^ WELD COUNTY, COLORADO
!th' Board
97
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Weld County Clerk to Board
Constance L. Hairber(t, Chairman
SI BY: I� G J ,e / tar_
ar_
Deputy Cl k to the Board W. H( WebsterPro-Tem
APPRO S TO FORM: L�,..,,�,r ., f
/ rgBaxte
C ty Atto ney Dale K. Ha 1
EXCUSED DATE OF SIGNING (AYE)
Barbara J. Kirkmeyer
931099
P£0013 CC r )
AGREEMENT FOR PAYMENT OF ADDITIONAL CONTRIBUTIONS
This Agreement is made by and between the County Workers'
Compensation Pool ( "CWCP" ) , a separate entity formed by
Intergovernmental Agreement among certain Colorado counties, and
Weld County, Colorado ( "County" ) , a former member of CWCP, each of
which hereby agrees to abide by the terms and conditions of this
Agreement and all actions taken pursuant to this Agreement .
1 .0 Purposes and Declarations .
1 . 1 The County became a member of CWCP by the adoption of the
CWCP Bylaws and Intergovernmental Agreement ("Intergovernmental
Agreement" ) and remained a member for the years 1988-1991 . The
County withdrew from membership in CWCP effective 1/1/92, but
remains covered for qualified workers' compensation claims pursuant
to the CWCP insurance coverages and policies in effect during those
years .
1 . 2 Pursuant to the Intergovernmental Agreement and policies
adopted by the CWCP Board of Directors ( "Board" ) and members, the
County remains liable after withdrawal for additional contributions
for the years during which it was a member of CWCP, if the moneys
available for payment of claims and related expenses for those
years are inadequate.
1 . 3 The parties understand that CWCP is regulated by the
Colorado Commissioner of Insurance and the Colorado Division of
Insurance, pursuant to state laws and regulations applicable to
CWCP; that CWCP is operating under an abatement plan approved by
the Commissioner of Insurance, a copy of which has been provided to
the County; that the abatement plan includes various CWCP financial
obligations; and that the County' s timely performance of this
Agreement is a necessary element of that abatement plan and is
essential for CWCP compliance with applicable state laws and
regulations .
1 .4 The actuary for CWCP has determined that additional
contributions are necessary for years during which the County was
a member of CWCP.
1 . 5 Pursuant to the Membership Accounting Policy Statement
adopted by the Board, and action of the members authorizing the
billing of the additional contributions to the County pursuant to
the Membership Accounting Policy Statement, the County has been
billed the amount of $136 , 647 as its proportionate share of
additional contributions for the years during which it was a member
of CWCP . A copy of the bill is attached as Exhibit 1 .
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PEOOf
1 . 6 The County agrees that it owes the full amount of Exhibit
1, which is due and payable on the date set out in Exhibit 1 .
However, CWCP is willing to permit the County to pay the amount
billed in Exhibit 1 over time, without interest on the unpaid
amount, and the County wishes to pay the amount billed over time,
subject to the terms and conditions of this Agreement .
1 . 7 The sole purpose of this Agreement is to permit the
County to pay the amount billed over time, subject to the terms and
conditions of this Agreement .
2 .0 Obligations of the County.
2 . 1 The County will annually budget, appropriate, and
irrevocably pledge cash reserves adequate to pay in full the bill
attached as Exhibit 1, and any amendment thereto. The County shall
provide to CWCP copies of documents which budget, appropriate and
irrevocably pledge the cash reserves at the request of the CWCP
Board or its authorized agents .
2 . 2 The County will pay to CWCP at least $45, 549 by November
30, 1993 . One half of the remaining amount due under Exhibit 1,
and any amendment thereto, shall be paid by May 1, 1994 , and the
remaining amount due under Exhibit 1, and any amendment thereto,
shall be paid by May 1, 1995 . The County may, at any time, pay the
full amount due .
2 .3 The County recognizes and agrees that it is not entitled
to any distribution under Article X of the Intergovernmental
Agreement until the entire amount of Exhibit 1, and any amendment
thereto, is paid in full and that any distribution to be made under
said Article X may be used by the CWCP Board to pay such unpaid
amount .
2 .4 Interest on any past due amount under this Agreement
shall accrue at the prime interest rate on the date of the
delinquency of the bank which invests the majority of the Pool
money, plus five percent .
3 .0 Obligations of CWCP and County.
3 . 1 CWCP agrees to apply any payments made by the County
pursuant to this Agreement to the amount appearing in Exhibit 1,
and any amendment thereto.
3 . 2 Beginning in 1994, for each year in which an amount
remains owing on Exhibit 1, or any amendment thereto, CWCP will,
within a reasonable time after receipt of the final annual
actuarial report for the immediately preceding year, recalculate
the County' s share of additional contributions for the years during
which it was a member of CWCP, the calculation to be in the same
manner as for other liable counties which were members for those
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years and notify the County of any change in the amount appearing
in Exhibit 1, or any amendment thereto, based on such prior
payments, actuarial report, and calculations . The amount so
calculated shall become, without further action of the parties, an
amendment to Exhibit 1, effective upon CWCP providing written
notice thereof to the County.
3 . 3 CWCP shall provide to the County, upon its request, a
copy of the Exhibit used by CWCP for the calculation described in
paragraph 3 . 2 .
4 .0 Term and Termination.
4 . 1 This Agreement shall become effective upon Weld County' s
execution and shall terminate at such time as the full amount owing
on Exhibit 1, or any amendment thereto, is paid OR ON May 31, 1995,
whichever is earlier.
4 . 2 In addition to the termination provided in paragraph 4 . 1,
this Agreement may be terminated with or without cause by either
party upon thirty days' prior written notice to the other, and may
be terminated by the CWCP Board upon ten days' notice to the County
after any payment hereunder becomes past due .
4 . 3 The County shall pay the full amount remaining due on
Exhibit 1, or any amendment thereto, prior to the date of
termination. If the County fails to pay such amount, the
provisions of paragraph 2 . 3 shall survive the termination and CWCP
may, in addition to any other remedies it may have, pursue recovery
of such amount pursuant to that paragraph.
4 .4 Termination of this Agreement shall not terminate any
obligations of the County under the CWCP Intergovernmental
Agreement including, but not limited to, any additional
contributions for which the County may be liable under the
Intergovernmental Agreement .
5. 0 General Provisions.
5 . 1 If any portion of this Agreement is declared invalid or
unenforceable pursuant to a challenge by the County, the CWCP Board
shall determine whether the Agreement is or is not severable and
its decision shall be final .
5 . 2 All costs incurred by CWCP in collecting any amount due
under this Agreement, including reasonable attorney fees, court
costs, and any arbitration costs, shall be paid by the County.
Jurisdiction and venue for any court action to enforce this
agreement shall be in the applicable court in the City and County
of Denver, Colorado.
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5 . 3 In addition to any other remedies which may exist, the
CWCP Board may submit any dispute under this Agreement to binding
or 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 .
5 . 4 This Agreement does not alter the Intergovernmental
Agreement and the County retains all rights and obligations of a
withdrawn member set forth therein. The obligations of the County
under this Agreement are obligations of the County within the
meaning of Articles IX and XV of the Intergovernmental Agreement .
5 . 5 This Agreement may be enforced by the parties or by any
member of CWCP .
5 . 6 Any functions, powers, and responsibilities of CWCP
provided for in this Agreement shall be exercised by its
Administrator, unless otherwise provided by the Board.
5 . 7 Notices in connection with this Agreement shall be
delivered to the following in the case of CWCP:
County Workers' Compensation Pool
c/o County Technical Services, Inc .
1177 Grant Street, Suite 200
Denver, Colorado 80203
and to the following in the case of the County:
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5 . 8 Time is of the essence in the performance of this
Agreement .
IN WITNESS WHEREOF the parties hereto have made and executed
this Agreement .
County Workers' Compensation Pool (CWCP)
By: L(i1!
Title : President
Date : /�i�00 �� , 99j
I 4
931091
1ILJI Ed_ County, Colorado (County)
By: ��u ciXYZ
/0/J 1h3
Title : Chair, Board of County Commissioners
Date : Aedimet, as 1993
101393/1527(dkm)c,cwcp\contrib.agm
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EXHIBIT 1
COUNTY WORKERS' COMPENSATION POOL
October 8, 1993
Donald Warden
Weld County
915 Tenth Street
Greeley, CO 80632
INVOICE
County Workers' Compensation Pool Additional Contribution for workers' compensation
coverage for county employees for policy years 1988-1991. Additional contribution figure is
a combined fund balance calculated under the Membership Accounting Policy Statement as
approved by the CWCP Board of Directors and the CWCP membership, which is based on the
CWCP loss-ratio based formula and losses (paid and reserved) as of December 31, 1992.
Additional Contribution due: $136,647
Payment of this additional contribution is due November 30, 1993, and becomes delinquent if
not paid by December 31, 1993, at which time interest on the unpaid balance will begin to
accrue.
Please call County Technical Services, Inc. at 861-0507 if you have any questions.
921999
1177 Grant Street, Suite 200 • Denver, Colorado 80203 • (303) 861-0507 • Fax (303)861-2832
IA) CA- V2- � E - Lm
COUNTY WORKERS' COMPENSATION POOL
//October 8, 1993
! I
Mr. Donald Warden
Finance Direcor
Weld County
P.O. Box 758
Greeley, CO 80632
RE: CWCP - Additional Contributions
Dear Don:
Enclosed is an invoice which represents Weld County's share of additional contributions for
the claim years 1988-1991, based on the most recent CWCP actuarial report. The amount was
calculated in accordance with the member-approved formula that has been used for previous
calculations.
The CWCP Board of Directors understands the difficulty counties have experienced in the past
regarding full and timely payment of additional contribution billings. Therefore, as part of a
general membership accounting policy statement, the Board adopted the following policy on
April 16, 1993, amended August 20, 1993:
"For a withdrawn member which remains liable for additional contributions and for an
expelled member, a projected combined fund balance deficit will result in a billing and
full payment of that amount regardless of the estimated future interest earnings, unless
the withdrawn or expelled member executes an additional agreement regarding payment
of future additional contributions for past years in a form acceptable to the Board. If
such an agreement is made, the withdrawn or expelled member will be treated as a
member for purposes of timing of payment of additional contributions."
During the June 10, 1993 membership meeting, the CWCP members approved billing of
additional contributions to withdrawn members in accordance with the Board's Policy
Statement. Current members have been and will continue to be billed for their proportionate
shares of additional contributions. If Weld County wishes to make payments in installments,
please execute the enclosed agreement and forward the original with a check for the 1993
installment indicated in the agreement by November 30, 1993. If Weld County does not wish
to make payments, please send a check for the total amount indicated on the invoice by
November 30, 1993.
1177 Grant Street, Suite 200 • Denver, Colorado 80203 • (303)861-0507 • Fax (303)861-2832
931039
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