R08-092
II I
I
2 RESOLUTION NO. R08- Of 2/
3 .
4
5 A RESOLUTION OF THE CITY COMMISSION OF
6 BOYNTON BEACH, FLORIDA, APPROVING A
7 SERVICE AGREEMENT BETWEEN THE CITY OF
8 BOYNTON BEACH AND COMMERCIAL RISK
9 MANAGEMENT, INC., FOR WORKERS'
10 COMPENSATION THIRD PARTY ADMINISTRATION;
II AUTHORIZING THE CITY MANAGER AND CITY
12 CLERK TO EXECUTE SAID AGREEMENT; AND
13 PROVIDING AN EFFECTIVE DATE.
14
15
16 WHEREAS, efforts by City staff to reduce costs have resulted in a proposal to
17 unbundle services provided by the current third party administrator; and
18 WHEREAS, the City's Consultant obtained, analyzed and recommended change to a
19 new provider identitying specific services to be provided; and
20 WHEREAS, the City Commission of the City of Boynton Beach deems it in the best
21 interest, health, safety and welfare of the citizens and residents of Boynton Beach to enter into
22 the twelve (12) month Service Agreement with Commercial Risk Management, Inc.
23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
24 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
25 Section 1. Each Whereas clause set forth above is true and correct and
26 incorporated herein by this reference.
27 Section 2. The City Commission of the City of Boynton Beach, Florida hereby
28 approves and authorizes the City Manager and City Clerk to execute the Service Agreement
29 between the City of Boynton Beach and Commercial Risk Management, Inc., for workers'
30 compensation third party administration services, a copy of said Agreement is attached hereto
s. IC A \RESO\Agreements-Commercial Risk Management doc
ff I
] as Exhibit "A".
2 Section 3. That this Resolution shall become effective immediately upon passage.
3 PASSED AND ADOPTED this ~ day of August, 2008.
4
5 CITY OF BOYNTON BEACH, FLORIDA
6
7
8
9
10
1 ]
12
13
14
15
16
17
]8
19
20
21 Commissione: - WOOdrowz
22 L~7~L-//~
23
24
25 Commissioner - Marlene Ross
26 ATTEST:
27
28 .by
29
30 Ja t M. Prainito, CMC
31 Ity Clerk
32
33
34
35
36
S \CA\RESO\Agreements-Commerclal Risk Management.doc
(;f;O 1 Z,
SERVICE AGREEMENT
TIllS SERVICE AGREEMENT (the "Agreement") is made and entered into by and
between COMMERCIAL RISK MANAGEMENT, INC. (referred to as the "Company") and
CITY OF BOYNTON BEACH, FLORIDA (referred to herein as the "Self.Insured").
In consideration of the covenants and conditions set forth below to be performed and
observed by the parties hereto and in consideration of the sum often dollars ($10.00) and other
good and valuable considerations passing between the parties hereto, it is agreed as follows:
1. The excess workers' compensation and employers liability insurance coverage is to
be placed by others.
2. So long as this Agreement remains in effect, the Company will furnish claims
handling and statistical data, including filing of all forms and reports (from data supplied by the
Self.Insured) as required by the Florida Department of Financial Services.
3. The Company will handle to a conclusion all claims which occur during the period
that this Agreement remains in effect. The cost of handling the tail for the initial twelve (12)
month term of this Agreement and for each one.year renewal of the term of this Agreement will
be considered to be included in the Annual Service Fee to be paid upon each renewal of the term
of this Agreement. However, in the event of any cancellation of this Agreement, the Self-Insured
shall pay to the Company an administrative fee for handling the tail in an amount to be
negotiated between the Company and the Self-Insured, which administrative fee shall not exceed
ten percent (10%) of paid loss, and which administrative fee shall be payable on a monthly basis
as invoiced by the Company.
Furthermore, in the event of any cancellation of this Agreement, the Company agrees to
continue to provide claims adjusting services on all claims incurred during the period that this
Agreement was in effect, if requested to do so by the Self-Insured, for a maximum period of
ninety (90) days. The Company shall be entitled to a fee for such continuing claims adjusting
services equal to a pro.rata portion of the Annual Service Fee specified below, payable monthly
as invoiced by the Company.
In the event claims files and claims servicing responsibilities are transferred to a new
service company, the Company will provide an accounting of all claims and claims activity to
the new service company. Upon the transfer of the files and final accounting of the claims
Page 1 of 4
activity, the Company shall be released from all further responsibility and liability under this
Agreement and the Self-Insured shall indemnify and hold harmless the Company with respect to
all claims activity occurring on and after the date of such transfer.
In the event of the insolvency of the Self-Insured, the Company will provide claims
adjusting services on all claims incurred during the period that this Agreement was in effect for
a maximum period of ninety (90) days or until relieved of this responsibility by the Division of
Workers' Compensation of the Department of Financial Services. The Company shall be
entitled to a fee for such continuing claims adjusting services equal to a pro rata portion of the
Annual Service Fee specified below, payable monthly as invoiced by the Company.
The Company acknowledges that files containing the records of the Self-Insured's claims
shall belong to the Self-Insured, provided that the Company shall, at its expense, have the right
to retain copies of any and all such records to the extent determined appropriate by the
Company.
All claim expenses commonly referred to in the insurance industry as "Allocated Claims
Expenses" shall be the responsibility of, and paid by, the Self.Insured. Without limiting the
generality of the immediately preceding sentence, the term "Allocated Claims Expenses" shall
include such items as attorneys' fees, court costs and independent investigative claims costs.
4. Manual Premium is computed by multiplying unlimited payroll by class times
National Council on Compensation Insurance ("NCCf') manual rates in effect for the auditable
period. Standard Premium equals Manual Premium times experience modification, computed in
accordance with the Rules of NCCI. Furthermore, NCCI rates will be utilized to determine
Florida State Assessments and Guaranty Fund Assessments. All such Assessments shall be paid
directly by the Self-Insured to the Florida Department of Financial Services on a quarterly basis,
as invoiced.
5. The Self-Insured shall pay to the Company, for the Company's services under this
Agreement (except as otherwise provided in this Agreement), an Annual Service Fee (referred
to herein as the "Annual Service Fee"). The initial Annual Minimum and Deposit Service Fee
shall be $24,900.00 adjustable by final annual payroll audit at a rate of 1.32% of Manual
Premium. January 1, 2008 manual rates will be used for calculating the audited service fee for
the term of this Agreement. The Annual Service Fee is payable in four quarterly payments of
$6,225.00 as invoiced by the Company. C#V'ee--~ to l..O e 'l Cf!!t
6. The term of this Agreeme shall be twelve (12) months, with such term being
deemed to have commenced at 12:01 .m. on October 1, 2008, and with such term to terminate
at 12:01 a.m. on September 30, 010 Any renewal of the term of this Agreement shall be
documented by an instrument in wnting signed on behalf of both the Company and the Self-
Insured.
Notwithstanding the foregoing provisions of this paragraph, either the Self-Insured or the
Company shall have the right to cancel this Agreement solely by giving the other not less than
sixty (60) days' advance written notice of the proposed date of cancellation. Any such
cancellation of this Agreement shall be subject to all of the applicable terms and provisions of
this Agreement.
Page 2 of 4
.
7. Each notice, request, demand, consent, approval or other communication required
or permitted under this Agreement (collectively a "notice") shall be valid only if it is (a) in
writing [or sent by telex, telegram or telecopy and promptly confirmed in writing] and (b)
addressed by the sender to the other party at its address and in the manner set forth below:
a. If to the Company: COMMERCIAL RISK MANAGEMENT, INC.
Post Office Box 18366
Tampa, Florida 33679.8366
b. If to the Self.Insured: CITY OF BOYNTON BEACH, FLORIDA
P.O. Box 310
Boynton Beach, FI 33425
Except as otherwise provided herein, each notice shall be effective on the earlier of its
receipt, if delivered personally or by courier, or the third day after it (or the written confirmation
of it) is postmarked for dispatch by first-class, postage prepaid, certified or registered, United
States Mail, with return receipt requested (whether or not the return receipt is subsequently
received by the sender).
Any party wishing to change the person or address to which notices are to be given may
do so by complying with the notice provisions of this paragraph.
8. This Agreement embodies the entire Agreement and understanding between the
parties with respect to the subject matter hereof: expressly superseding all prior Agreements and
understanding, whether oral or written. No amendment, modification or attempted waiver of
any provisions of the Agreement shall be binding upon either party to this Agreement unless
reduced to writing and signed by or on behalf of each of the parties to this Agreement. The
waiver by either party of any breach of any covenant or condition of this Agreement shall not be
construed as a waiver of any subsequent breach of such covenant or condition or of the breach
of any other covenant or condition contained in this Agreement. Any number of counter parts of
this Agreement may be signed and delivered, each of which shall be considered an original and
all of which, together, shall constitute one and the same instrument. The normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be utilized in the interpretation or construction of this Agreement. This Agreement shall be
governed by and shall be construed in accordance with the laws of the State of Florida. In the
event any litigation shall be instituted for the purpose of enforcing any of the provisions of this
Agreement, the prevailing party, as determined by the court having jurisdiction thereof: shall be
entitled to recover from the non-prevailing party, in addition to all other relief: an amount equal
to all costs and expenses incurred in connection with such litigation, including, without
limitation, reasonable attorneys' fees at the pretrial level, the trial level and in connection with
all appellate proceedings. The provisions of this Agreement shall be binding upon, and shall
inure to the benefit of: the parties hereto, and their respective successors and assigns.
Page 3 of 4
IN WITNESS WHEREOF, the Company ~ caused this ~eement to be executed by
its undersigned officers duly authorized this "LS - day of '-' v ~l ' 2008, but
effective as of October 1, 2008. 1
::~;~~,~c.
its Vice President
~h
its PreSident
IN WITNESS WHEREOF, the Self-Insured has caused this Agreement to be executed by
its undersigned officers duly authorized this day of . 2008,
but effective as of October 1, 2008.
CITY OF BOYNTON BEACH, FLORIDA
By:
Its
ATTEST:
By:
Its APPROVEO AS TO FORM:
e/TV ATTORNEY
Page 4 of 4
IN WITNESS WHEREOF, the Company ~ caused this ~eement to be executed by
its undersigned officers duly authorized this "2... S - day of '-' v \.1 ' 2008, but
effective as of October 1,2008. '
::;tri~~'INC
its Vice President
~k
its PresIdent
IN WITNESS WHEREOF, the Self-Insured has caused this Agreement to be executed by
its undersigned officers duly authorized this 8; day of SepT~Mbe' , 2008,
but effective as of October 1, 2008.
CITYOF~ronA
By:
KURT BRESSNER
Its r.ITY MANAGER
BOYNTON BEACH. FL
ATTEST:
Bet Yn . __~:t, APPROVED AS TO FORM:
"_ ts q -~-08 D~)(
CflY ATTORNEY
Page 4 of 4
CITY CLERK'S OFFICE
MEMORANDUM
TO: Chuck Magazine
Director, Risk Management
FROM: Janet M. Prainito
City Clerk
DATE: May 28, 2008
RE: R08-092 Service Agreement with Commercial Risk Management,
Inc.
Attached for your information and files is a copy of the Resolution and a copy of the fully
executed agreement mentioned above, I have retained the original for Central File.
Please contact me if there are any questions. Thank you.
~m R~l~~fo
Attachments
cc: Central File
S:ICCIWPIAFTER COMMISSIONIDepartmental Transmlttals\20081Chuck Magazine - R08-092 doc