HomeMy WebLinkAbout20230132.tiffRESOLUTION
RE: APPROVE AGREEMENT FOR PARTIALLY SELF -FUNDED PROGRAM AND
AUTHORIZE CHAIR TO SIGN - COLORADO COUNTIES CASUALTY AND
PROPERTY POOL, C/O COUNTY TECHNICAL SERVICES, INC. (CTSI)
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 the Partially
Self -Funded 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,
c/o County Technical Services, Inc. (CTSI), commencing January 1, 2023, and ending
December 31, 2023, 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 the Partially Self -Funded 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, c/o County Technical Services, Inc. (CTSI),
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 9th day of January, A.D., 2023, nunc pro tunc January 1, 2023.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: daYwo jeito; vk,
Weld County Clerk to the Board
ounty Attorney
Date of signature: 01/17/23
M' man, Chair
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02/at (23
2023-0132
PE0035
CTSI
Serving Colorado's Counties
December 20, 2022
To: Mike Freeman, Weld County
From: Rhonda Curran, Manager of Risk Programs
RE: Self -Funded Contracts
Enclosed are two originals of the Agreement for the Partially Self -Funded Program. Please have
the contracts signed, keep one copy and return one to me.
Also enclosed are the contribution invoice and Certificate of Participation.
Please call me if you have any questions.
2023-0132
u/poi Peoon
County Technical Services, Inc.
Administration & Loss Prevention 800 Grant Street • Suite 400 Claims (CAPP & CWCP)
Phone: 303.861.0507 Denver, Colorado • 80203 Phone: 303.861.0507 1-800.544.7868
Fax: 303.861.2832 email: ctsi@ctsi.org Fax: 303.861.1022
CTSI
Serving Colorado's Counties
Colorado Counties Casualty and Property Pool
Agreement for Partially Self -Funded Program
Weld County
January 1, 2023 through December 31, 2023
THIS AGREEMENT is entered into this 1st day of January, 2023 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 2023 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 January 1, 2023, and shall coincide with the term of CAPP's
obligations to pay the retention under the CAPP excess insurance policies (hereafter "Policies"), subject
to paragraph 3.7 of this Agreement.
ARTICLE 3.0 OBLIGATIONS OF COUNTY
3.1 The County shall pay CAPP $2,825,681 with equity credit of ($63,594) and discount of CTSI fees in the
amount of ($103,764) for a total contribution due of $2,658,323 by January 31, 2023 for insurance
coverage and services rendered by CAPP for the period January 1, 2023 — December 31, 2023. For
services provided by CAPP after December 31, 2023, 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 393,230 in 2023 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 per occurrence 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 �'
020073- 0/302`
2023 CAPP Self -Funded Agreement Page 1
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 January 31, 2023. 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.
2023 CAPP Self -Funded Agreement Page 2
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 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.
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.
2023 CAPP Self -Funded Agreement Page 3
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
c/o County Technical Services, Inc.
800 Grant St., Suite 400
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.
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 January 1, 2023.
COLORADO COUNTIES CASUALTY AND PROPERTY POOL (CAPP)
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Date: December 20, 2022
Meredith K. Burcham
CTSI Executive Director
Weld County, Colorado (County)
By:
Chair, Board of County Commissioners
Date: 01/09/2023
Date: 01/09/2023
02,23-0/302()
2023 CAPP Self -Funded Agreement
Page 4
Certificate of Participation
Colorado Counties Casualty and Property Pool (CAPP)
For the Coverage Period January 1, 2023 through December 31, 2023
WELD COUNTY
Colorado Counties Casualty and Property Pool (CAPP) hereby certifies that Weld County is a participating Member of
CAPP for the period beginning January 1, 2023 through December 31, 2023. The coverages, conditions of membership,
and other provisions applicable to members of CAPP are as described in CAPP's Bylaws and Intergovernmental
Agreement and in the applicable excess policies, policy statements and endorsements thereto, copies of which have been
or will be provided to Weld County.
The types and monetary limits of the coverages provided to Weld County through membership in CAPP, in consideration
of the payment of its contributions, are limited, as of the date of this certificate, to those which are shown below. The
scope, terms, conditions and limitations of coverages are governed by the aforementioned agreement and policies.
I) The types of coverages, subject to the limit on CAPP's liability in Section II below, are as follows:
A) Property (including EDP, mobile equipment, and auto physical damage)
B) Liability
1) Bodily Injury, Property Damage (General Liability, Auto Liability)
2) Wrongful Acts committed in the conduct of duties (Public Entity Management Liability)
3) Bodily Injury, Property Damage, Personal Injury (Law Enforcement Liability)
4) Errors or omissions in the administration of an insured's employee benefits (Employee Benefits Liability)
5) Injury resulting from healthcare professional services rendered by any insured who is not a medical doctor,
psychologist, psychotherapist or nurse practitioner. (Healthcare Professional Liability).
C) Crime
1) Monies and Securities (inside)
2) Monies and Securities (outside)
3) Employee Fidelity
D) Boiler and Machinery
E) Network Security Liability
II) CAPP Retention, Aggregate Limits, and Member Deductibles
For the coverages described in Section I, CAPP shall be liable only for payment of the self -insured retention and only to a total
annual aggregate amount for members of CAPP as a whole of the amount of the CAPP loss fund for the coverage period.
CAPP's per claim/occurrence retentions are limited to the following for the foregoing coverages:
A) $150,000 per claim/occurrence property, except wind/hail, which is 2% per location total value subject to a minimum $1M
per claim/occurrence. County deductible $1,500
B) $1.5M per claim/occurrence liability (per coverage line), except Law Enforcement, which is $1M per claim/occurrence —
County deductible $15,000 except in certain claims - Law Enforcement County deductible $40,000. Employment
Termination deductible $15,000. See CAPP Policy Statements.
C) $200,000 or $300,000 per claim/occurrence crime — County deductible $500
D) $5,000 per loss boiler and machinery — County deductible $500
E) $100,000 per claim/occurrence network security liability — County deductible $0. Pool annual limit aggregate
$5,000,000.
Coverages in excess of the foregoing pool retentions are provided only by the excess insurers in applicable excess policies, and
are payable only by those excess insurers. The limits of coverage provided by the excess insurers are as follows:
A. Liability -Old Republic, Markel and Lexington
From $1.5M per claim/occurrence to $10 million per claim/occurrence except for auto, which is non -aggregated.
1.Law Enforcement
From $1M to 10 million per claim/occurrence.
All liability claims are subject to the following:
020 3 - D /3o2(z)
CAPP 2023 Certificate of Participation
All liability coverages are provided on a claims -made coverage form. In no event shall the maximum per claim/occurrence
payment exceed the following for general liability, auto liability, public entity management liability, law enforcement liability,
employee benefits liability or healthcare professional liability claims subject to the Govemmental Immunity Act $424,000 per
person and $1,195,000 per occurrence. Additional limits, sublimits and aggregates apply as provided in the applicable
excess policies.
Liability Coverage Layers
1.5 million to 2 million
$2 million to $3 million
Carrier
Old Republic
Markel
$1 million to $4 million Standalone Law Enforcement
Lexington
$5 million
Allied World
B. Crime-Policy-Hiscox
From $200,000 or $300,000 to $1 million each occurrence. Additional limits, sublimits and aggregates apply as provided in
the applicable excess policies.
C. Boiler and Machinery- Liberty
From $5,000 to the cost of repair/replacement for each actual loss sustained up to $100 million. Additional Omits, sublimits
and aggregates apply as provided in the applicable excess policies.
D. Property
From $150,000 to $100 million each occurrence, except hail/wind claims, with a sublimit of $5,000,000 for vehicle physical
damage over the road. $1M each occurrence for hail/wind claims. "All Risk" basis with sublimits of $10 million newly
acquired property, $5 million new construction each occurrence and $2.5 million unnamed/unscheduled locations. Sublimits
of $5 million for property in Flood Zone A and $50 million for property in all other flood zones. Newly acquired property must
be reported within 90 days. If new locations are not reported, then the location becomes an unscheduled location.
Additional limits, sublimits and aggregates apply as provided in the applicable excess policies.
Property Coverage Layers
Carrier
Underwrites at Lloyds
$150,000 to $10 million
Westchester Surplus Lines
Starr Surplus Lines
Princeton Excess & Surplus
Allied World Assurance
2% hail deductible/per location
Underwrites at Lloyds
$10 million to $25 million
Westchester Surplus Lines
Starr Surplus Lines
Princeton Excess & Surplus
Evanston (Markel)
Fidelis
$25 million to $50 million
Aspen Specialty
Starstone Specialty
Lexington
Westfield Specialty
RSUI Indemnity
$50 million to $100 million
Oiled Sumitomo
Swiss Re
Hallmark Specialty
Auto Phys Dmg $4m xs $1m
Endurance American
$5k - $100 million Equipment Breakdown
Liberty Mutual
E. Network Security Liability-CHUBB
First Part Liability (Cyber Incident Response, Business/Interruption & Extra Expense, Digital Data Recovery & Network
Extortion): $1,000,000 each claim/$1,000,000 Annual Aggregate, Third Party Liability (Cyber, Privacy & Network Security
Liability, Electronic, Social & Printed Media Liability) $1,000,000 each claim/$1,000,000 Annual Aggregate. All member limits
are subject to the Pool Aggregate Limit of $5,000,000.
Information concerning the CAPP loss fund for the coverage period may be obtained by contacting CAPP through its Administrator,
County Technical Services, Inc. (CTSI).
Colorado Counties Casualty and Property Pool
,&,(4 ckto,&„
Meredith Burcham, CTSI Executive Director
December 20, 2022
CAPP 2023 Certificate of Participation
AGREEMENT FOR PARTIALLY SELF -FUNDED PROGRAM - COLORADO COUNTIES
CASUALTY AND PROPERTY POOL, C/O COUNTY TECHNICAL SERVICES, INC. (CTSI)
APPROVED AS TO SUBSTANCE:
artment Head, or Deputy Department Head
APPROVED AS TO FUNDING:
Chief Financi I Officer, or Controller
APPROVED AS TO FORM:
County Attorney
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