HomeMy WebLinkAbout971170.tiffRESOLUTION
RE: APPROVE AGREEMENT FOR PARTIALLY SELF -FUNDED INSURANCE PROGRAM
AND AUTHORIZE CHAIR 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
Insurance Program between the County of Weld, State of Colorado, by and through the Board
of County Commissioners of Weld County, and Colorado Counties Casualty and Property Pool,
with 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 Insurance Program
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and Colorado Counties Casualty and Property Pool be, and
hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair 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 June, A.D., 1997.
Cc : , Pe
BOARD OF COUNTY COMMISSIONERS
WELD OUNTY, Cr DO
Geor e E Baxter, Chair
/ J T !a I....7 /-C/
nstance L. Harb= P o-Tem
Dale K. Hall
EXCUSED DATE OF SIGNING
Barbara J. Kirkmeyer
(AYE)
971170
PE0015
AGREEMENT FOR PARTIALLY SELF•FUNDED PROGRAM
THIS AGREEMENT is entered into this 1st day of July, 1997 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 1997.1998, 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, 1997, and shall coincide with the term of CAPP's obligations to pay
the retention under the St. Paul Excess Property, St. Paul Excess Liability, and Hartfor Steam Boiler 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 $114,100 by AUGUST 15, 1997, for insurance coverages and services rendered by
CAPP for the period July 1, 1997 - June 30, 1998. For services provided by CAPP after June 30, 1997,
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 599,469 in 1997 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 S125,000
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 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.
Agreement for Partially Self -Funded Program (WELD COUNTY) 7/1/97 - 6/30/98 Page # 1
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A $20,000 claims deposit shall be paid to CAPP by August 15, 1997. 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 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 County Technical 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 Inter-
governmental Agreement and shall act as the representative of County in all matters related to such services.
ARTICLE 5.0 WITHDRAWAL AND EXPULSION
Agreement for Partially Self -Funded Program (WELD COUNTY) 7/1/97 - 6/30/98 Page # 2
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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.
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.
Agreement for Partially Self -Funded Program (WELD COUNTY) 7/1/97 - 6/30/98
Page # 3
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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
clo County Technical Services, Inc.
1700 Broadway, Suite 1512
Denver, CO 80290
and to the following in the case of County:
CAPP Designated Correspondent
Pc) b'o x
Gzee(v, , eo
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.
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, 1997.
COLOR ' ' ' COUNTIES C ' ;U ' TY D P' OPERTY POOL (CAPP)
By:
Title: ' esident, APP Board of Directors
WELD COUNTY, COLORADO (County)
By
air, Bo of County Commissioners
Date: June 23, 1997
Date: June 23, 1997
Agreement for Partially Self -Funded Program (WELD COUNTY) 7/1/97 - 6/30/98 Page # 4
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