HomeMy WebLinkAbout12820
., "
!
I o~
pt..:i
i
I
I
RESOLUTION NO. /,;2 Pc::t1J
RBSOLUTION OF THE CITY OF SAN BERNARDIlfO AUTHORIZING THE
ExECUTI:ON OF AN AGREElIIEN'l' WITH WILLI:AM EDWARD FLEMING, DBA FLEMING
& ASSoCIA'mS, RELATING 'lO THE ADMINISTRA'l'I:ON OF CITY'S WORKERS'
COMPENSAtiON CLAIMS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
authorized and directed to execute on behalf of said City an
agreement with William Edward Fleming, dba Fleming & Associates,
relating to the administration of City's Workers' Compensation
claims, a copy of which is attached hereto, marked Exhibit "I- and
incorporated herein by reference as fully as though set forth at
length.
I HEREBY CERTI:FYthat the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
vote, to wit:
meeting thereof, held
, 1977, by the following
Bernardino at a
on the tt ~ day of
AYES:
CO~7~~~~~7
NAYS:
of
, 1977.
-
ABSENT:
foregoing resolution is hereby
. It
I
I
,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
.' .
AGREEMENT
(consultant - workers' compensation audit and administration)
THIS AGREEMENT is made and entered into this
78-a.ay of
/
, 1977, by and between the CITY OF SAN BERNARDINO
corporation, hereinafter called "City", and WILLIAM
EDWARD FLEMING, dba Fleming & Associates, hereinafter called
"Consultant" .
WIT N E SSE T H:
----------
WHEREAS, City is in the process of undertaking the ad-
ministration of its self-insurance program for its employees
pursuant to the Workers' Compensation Laws of the State of
California; and
WHEREAS, Consultant is a State Certified Workers' Compen-
sation Claims Administrator with extensive experience and expertis
in performing competent audits of workers' compensation files
establishing management practices and procedures for the adminis-
tration of self-insurance programs; and
WHEREAS, City desires to retain and employ Consultant to
perform certain services in connection with the City's program
for administering its own workers' compensation claims and to
perform the tasks and duties hereinafter set forth; and
WHEREAS, Consultant accepts said employment upon the terms
and conditions herein set forth,
NOW, THEREFORE, the parties hereto agree as follows:
I. Audit.
A. Consultant shall commence an audit of all City's
open workers' compensation claims files and complete the audit
of all of said files within two weeks after the receipt of the
:.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
files from ESIS, the City's previous claims management agent.
Said audit shall encompass and include:
1. A complete review of all open files with
emphasis up0n disability, medical and legal control. Consultant
will note all relevant deficiencies and recommend appropriate
control measures.
2. A complete reconciliation of claims file
expenditures with those listed in the Loss Experience Report.
Consultant shall note and tabulate all discrepancies.
3. The adjustment and approval for payment of all
unpaid, reasonably incurred bills and accrued benefits.
4. A review of all reserves and the necessary ad-
justments to indicate a true and accurate value for each claim.
All changes to reserves shall be recorded and tabulated.
5. A list of all files requiring indemnity pay-
ents in the payment diary book. Diary entries shall be provided
for all files on the basis of priority for periodic technical
review.
6. The preparation and submission to City of a
omprehensive audit report which shall tabulate, summarize and
total all of the foregoing and which shall relate all relevant
information ascertained as a result of the audit to City.
B. It is understood and agreed by the parties hereto
hat this audit to be conducted by Consultant involves approxi-
ately 150 indemnity files and an unascertained number of pending
"Medical Only" claims.
C. Consultant's total fee for the work set forth in
his Section I shall be the sum of fifteen hundred dollars
-2-
:'
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
W
21
n
23
24
25
26
27
28
($1500.00) which shall be paid promptlY by City upon receipt by
City from Consultant of the audit report which is in a form
satisfactory to City's Loss Prevention Coordinator.
D. Time is of the essence with respect to completion
of this audit report prior to July 1, 1977, and Consultant warrant
and represents that he will have the report delivered to city prio
to July 1, 1977. city agrees to direct ESIS to deliver all files
to Consultant and to cooperate with Consultant to enable Con-
sultant to obtain said files promptly.
II. Consulting Services.
A. During the period from July 1, 1977 through June
30, 1978, Consultant shall work with city's-LosS Prevention
Coordinator and staff in order to provide, establish and implement
all systems required in order to efficiently and thoroughly
administer the City's workers' compensation self-insurance pro-
gram, Consultant's work shall include:
1. The making of appropriate recommendations to
City as to the type, number and quantity of forms required to
report, log, and process all workers' compensation claims. This
work shall include designing appropriate documents including, but
not limited to, face sheets, checks, payment orders, change order
notices, and all documents needed for City's administration pro-
gram. The said forms are to be adequate for providing the statis-
tical analyses to be provided in the Monthly Loss Experience
Report required by Section III hereof.
2. The establishing, implementing and insuring of
the efficient operation of City's clerical procedures for claims
administration including, but not limited to, a mail system,
-3-
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
a pay diary system, technical diary system, and all systems re-
quired for adequate administration and reporting of claims.
3. The establishing of routine and non-routine
technical examination procedures including, but not limited to,
the establishment of claims reserves: Arising Out of Employment -
During Course of Employment investigations, regulation of dis-
ability, medical and legal programs and preparation of litigation
claims and contentions.
4. In connection with 1, 2 and 3 hereof, Con-
sultant shall personally establish the system, together with all
ancillary systems adequate for the administration of all claims,
and instruct and train city's Loss Prevention Coordinator and
staff so that they are knowledgeable and competent to perform
all clerical and technical procedures for the complete adminis-
tration of the program. As a part of this procedure, Consultant
shall:
(a) During the month of July, 1977, spend
eight (8) full work days in city's offices establishing the pro-
. gram and doing all things required of him. city shall have the
right to designate the "work days" Consultant shall so perform.
(b) During the month of August, 1977, Con-
sultant shall spend at least one full day per week in City's
offices doing the tasks required of him for the accomplishment of
the work set forth in this Section II. In the event the one full
day per week is determined by the city's Loss Prevention Co-
ordinator to be insufficient for the month of August, 1977, then
city's Loss Prevention Coordinator shall have the right to direct
Consultant to be present in city's offices to perform the
-4-
II
,
,
I
1
required work; provided that, notwithstanding the foregoing,
Consultant shall not spend and charge for more than eight (8}
full work days during said month of August.
(c} During the month of September, 1977, Con-
2
3
4
5 sultant shall spend one work day per week in City's offices
6 performing his work; provided, however, he shall not be required
7 to spend more than four (4} days during the month of said
8 september.
9
(d} During the period from October 1, 1977
10 through June 30, 1978, Consultant shall spend one full work day
11 per month performing his tasks set forth herein; provided that
12 City's Loss Prevention Coordinator shall have the right to direct
13 Consultant to spend additional days during said months not
14 exceeding a total of four (4} days per month. City shall have the
15 right to designate the specific work days.
16
(e} The term work day as used herein shall
17 an City's normal eight (8} hour work day and Consultant shall be
18 present for his work during all normal working hours.
19
(f} During the one year term hereof, Con-
20 sultant shall make himself available by correspondence or
21 telephone for answering all relevant calls and inquiries of City's
22 Loss Prevention Coordinator in order to assist and encourage the
23 expeditious installation of the administrative system.
~
5. Based on the foregoing, it is anticipated that
25 Consultant will be required to spend from 34 to 38 working days
26 in City's Loss Prevention Coordinator's offices. Consultant
27 shall be paid by City a per diem rate of one hundred eighty dol-
28 lars ($180.00} per work day, and it is anticipated that City's
-5-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
n
23
24
25
26
n
28
".
total cost for Consultant's services that are to be provided
under this Section II will be from the sum of $6,120.00 to
$6,840.00 for the one year period from July 1, 1977 through
June 30, 1978. Notwithstanding the foregoing, Consultant's total
compensation paid by city hereunder shall not exceed said maximum
sum of $6,840.00. Consultant shall be responsible for and pay for
all of his expenses in connection with the work and his presence
with City performed pursuant to Section II.
6. Consultant shall bill City on a calendar
month basis at the per diem rate for his services as provided
for herein, and city shall promptly pay Consultant's said billings
after they are approved by City's Loss Prevention Coordinator and
in accordance with City's normal accounting and payment procedures
III. Loss Experience Report.
A. City shall promptly provide copies of all face
sheets, checks, payment orders, statistical change notices, and
any other relevant documents to Consultant in order that Con-
sultant may provide city with a computerized monthly compre-
hensiv.e Loss Experience Report. It is understood and agreed by
the parties hereto that all such documents received by Con-
sultant on or before the last Friday of each month shall be
processed into that month's Loss Experience Report.
B. Consultant shall promptly provide City with
monthly computerized comprehensive Loss Experience Reports which
shall include printed detailed departmental and summary reports
by the 10th day of the month following the cut off date of the
last Friday of the preceding month.
C. Consultant shall provide twelve (12) monthly
-6-
1 reports for the year commencing July 1, 1977 and ending J~e 30,
2 1978, in a form satisfactory to City's Loss Prevention Coordinator
3 and adequate to provide City with all data necessary for City's
4 proper administration of its claims administration program.
5
D. Computer runs of the Loss Experience Report shall
6 be in a form and provide the information shown on a sample, a copy
7 of which is attached hereto, marked Exhibit "A" and incorporated
8 herein.
9
E. Consultant's compensation for this service shall
10 be at the rate of one hundred dollars ($100.00) per report for a
11 total of twelve hundred dollars ($1200.00) for the twelve month
12 period. Consultant shall bill for this service concurrently with
13 his billing for his services provided under Section II A-6 here-
14 linabove, and City shall promptly pay said bills as provided in
15 said Section II.
16
IV. General.
17
A. Consultant warrants his experience and
18 capabilities for the performance of all work to be performed by
19 Consultant hereunder to be as set forth in the Second Whereas
20 Clause hereinabove.
21
B. The experience, skill and expertise of Consultant
22 is of the essence, Consultant shall not assign (whether by assign-
23 ment, novation or otherwise) this Agreement in whole or in part or
24 any right or interest hereunder without the prior written consent
25 of City.
26
C. Consultant covenants that he presently has no
27 interest and shall not acquire any interest, direct or indirect,
28 which would conflict in any manner or degree with the performance
I -7-
1
IOf services required to be performed under this Agreement. Con-
sultant further covenants that in the performance of this Agree-
ment no person having any such interest shall be employed.
2
3
4
D. Any reports, information, data, etc., given to or
5 prepared or assembled by Consultant under this Agreement shall not
6 be made available to any individual or organization by Consultant
7 without the prior written approval of City.
8
E. No material produced in whole or in part under this
9 Agreement shall be subject to copyright in the united States or
10 in any other country. The final audit report furnished by Con-
11 sultant to City shall become the sole property of City and City
12 shall have unrestricted authority to publish, disclose, distribute
13 and otherwise use, in whole or in part, any reports, data, or
14 other materials prepared under this Agreement.
15
F. Termination for Cause. If for any cause, Consultan
16 shall fail to fulfill in a timely and proper manner his obligation
17 under this Agreement, or if Consultant shall violate any of the
18 oovenants, agreements or stipulations of this Agreement, City
19 shall have the right to terminate this agreement by giving
20 written notice to Consultant of such termination and specifying
21 the effective date thereof at least five (5) days before the
22 effective date of such termination. In that event, all finished
23 or unfinished documents, data, studies, surveys, reports, files
24 or other material prepared by Consultant under this Agreement
25 shall, at the option of City, become its property and Consultant
26 shall be entitled to receive just and equitable pro-rata compen-
27 sat ion for any satisfactory work completed on such documents,
28 files or other materials. Notwithstanding the foregoing, Con-
-8-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
,
I
i
i
I
,
II
II
II
:'.
sultant shall not be relieved of liability to City for damages
sustained by City by virtue of any breach of this Agreement by
Consultant, and City may withhold any payments to Consultant for
the purpose of set-off until such time as the exact amount of
damages due to City from Consultant is determined.
G. City may terminate this Agreement at any time by
giving written notice to Consultant of such termination and
specifying the effective date thereof at least fifteen (15) days
before the effective date of such termination. In such event, all
finished or unfinished documents and other materials as des-
cribed in paragraph F above shall, at the option of City, become
its property. If the Agreement is terminated by City as provided
herein, Consultant will be entitled to be paid all compensation fo
work performed to the date of termination. If this Agreement is
terminated due to the fault of Consultant, paragraph F hereof
relative to termination shall apply.
H. Should City require changes in the scope of the
services of Consultant to be performed hereunder, such changes,
including any corresponding increase or decrease in the amount
of Consultant's compensation, which shall be mutually agreed
upon by and between City and Consultant, shall be incorporated
in this Agreement only by written amendment hereto.
I. All notices herein required shall be in writing,
and delivered in person or sent by certified mail, postage
prepaid, as follows:
City of San Bernardino
Loss Prevention Coordinator
300 North "D" Street
San Bernardino, California 92418
William Edward Fleming
P.o. Box 193 .
Sunland, California 91040
-9-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
; ~
il
"
J. It is understood that the contractual relationship
of the Consultant to the City is that of independent contractor.
City shall not exercise control of the meanS or manner by which
Consultant provides services under this Agreement. consultant
as an independent contractor shall obtain at his own expense any
and all required business licenses and permits.
K. Consultant hereby agrees to, and shall, hold City,
its elective and appointive boards, commissions, officers, agents
and employees, harmless from any and all liability for damages
and claims which may arise from Consultant's operation under this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the day and year first above written.
ATTEST:
'/
WILLIAM EDWARD FLEMING
A~t1L/ito form:
/. 0
. ". . ;;U~
Cl.ty . orney
FILEO
-1~W1
Luat.j.f~H, Clly Clerk
~p, .
'" . 'I LC" '-.:_'::.:~ "--
.' _ .,. ~.__1EPUI'r
-10-
~D
t~
".
~.
.~,
("-.1 I'
C'CI
W~I-
1::)',0
<I:
il.
o
Z
H
o
((
~
Z
((
W
~
~')
t~
t--........
z~
W......
E~
I-
ir: (~
<I <r
(L I..iJ
l1J >-
l~
f-
t,,~ '7
I!J [J:i
ILl ~:::,
ft: ~.-t
}_.~ 1,-.)
1(1" '1
. .1:
z
~
U)
lL
I]
>-
I-
H
U
l-
e!
I]
u.
w
((
W(I'.
"lLl
1,.11-
7r.:I
........
Wo
"
HOO
(rl
((<t
111(') r..... r.....
LUzt.....t-.....
.. "'-;I~"", ,~.
LL E ("l ()
X 1.1.1 (<')
..J...... "'"
Wl.L~i<t'
>- Z tJ..
0) C!I C) CI
iMa :!t
-ii::
1_'<1:
Jft
'J:::
il.
[-I-
EE
t.LI il. il. c')
_J:> .......
<l:n:WI-O
I-WI-Z
CI(l)c:I:lJ.J1---
I-'Iti,::)n:: W
CC: O:::Z
.=, =:t
t-C)
()
.;::' ,:;:. .':;:' .:.::'
.~ (:) (j (:)
....... . . .
() () (1) ()
lD 0) 10 ("'~
... ..-J (.) C')
..-oot... ...
I>~ (I) P)
~-...
(;. () <::. (:)
c:. 0:::' ,;:) ()
,3 (".)U)1<
":::)>::::'1:"-10"
r.....~..,"'f'...
.- .-. .- .~.
~....' '.....' '....' '....,.
0::::> 0;:::' ,;:::. ',:::;'
c' .::>.:::' ()
0::-.:, (;:;. c:. <.:;.
.:':: (0") (') r-:
() 0) (I) ~.-1
("'~,lO o;;:t ~D
. . . .
(~.~ f') ..-.. f")
(,) 0) ("~ If)
I';"r ..."" ....... ('.~
" .
t......q-- (f)
. .
G., e.4 .,:()
f".~ ...... ~-t
... ... ... ...
0'" t-.~ ........ I>~
t;~ ("'~ 1>4
f- l- .:::. ) ':::0 (::- <) '-' ';:::'0
i:) E E () ) .:::... ..... .;::;. - -:> ':::-
lti il. il. .3 .:;': . . .
f- () (~") '--~..' ...... (:) C)
<I: W I- 0) 1>4
U I- Z lO ~
(J <I: W
..J l::l n::
.J cr:
.J: (J ::1
I- (j
1-1-
-.JltiEE
~:I :> fL 0_ (I)
(j 0::: ~.....
'"'....Wl1Jl-l~
~::. (I) J..- z
11.1 1.1.1 <r I1J f.-
E(I.:(7.iO::: l.i.J
n::: ;2:
CI:)
}-I,..).
1-.1-
EE
l-LJ (L LL
"'"> f,)
LL 11:: LjJ 1- <'.:.
EWl-:ZCI
C) ((I <C ILJ
I:...) LJJ C:i fr:: ~-
II: (J': ItJ
I::):') :;~~
J- (.)
,
,
'.:::) " ,',.., .-
,::.:;:, ',,~) ',~ ..-..
..... (:) (::;. (:)
-'
~:)
::::.
,"~~,4.,
.;?().::) ';2
.....1.::).:..;)....1
c~ Lr) u'-:: 1I)
.::) r"" ("~ ("~
.::) (~" "''''1 (:)
- .
~7' ("'~ ~..,..
.:::;. () 0::) ..::;.
0:::).:..::0 (.;> (:)
(:) lI') l.i) II)
() t-.... r-:t (",~
.~.:) r.... I"~ I:~~
() >:::0 (:;. <:.:0
(::> .::. (:) (:;'''
05 f') IJ') Li1
C) I)) "7' r',~
f-'4 ~'-I ...0 (::)
"", :*
. '\""
- :-;;.' ! ,,~,
:).3,.3
~) f"~ .:::."
... (1.,..-01 I.~-.I
(I
~
.
""'~
. .
f"-~ U) (i)
.,....
.. .
t..... I,') ,,~t
..-'" ..~...
,n
. ,;,.-
;tl(~~' .
"... .: ~'..
>
:. :' (.') 0::)
)0(::.
....". '
.~_> t~f~~~.
0:::0 () (:) .:::::'
(:;. ,',::. .:::::' .~")
'J'::) .;::. >::~
c:. C::. C).:)
() () (J 0:::'
<..... (~".:' (':;' ()
. . .
.:::0 (I) ()
) J) f.} I:"~
') (,) ("~ ...."
. . . .
() U)'::) (""
C) 1:'.4 f'...
t.... ~~ I:',"
(2 1~!.5 O? .:,"~
'.,J ',_:, 1'.1 I)'"
("~ to I"'~ f')
. . . .
I.J) .::::. ',.0 0)
("~ () t'-... ("~
("~ C. r:;t ('-4
"
,) ('.~ 'P'"
.,'.... .,,-1
" .
(,) '"-,, I,"."
1"'.... ('J (,)
...." .~...
-. .
f',.f 0:::1"' n)
I') ~-t .......
I)
E ':) II) t,- G". t.", 1_," ".t'
..... 1"1 ,::.:. f- I'" ft:
<t # I: (..~ f.. ~. ("~ <:1:
_.J t~ ItJ
(.) ) :r::
~-
";:r
(I) LiJ
I1J C:' I.J
"""'M t"... rt::
(',! I,) I....
w"'.)::c
':1:
't ::._" . ~,<. ..).J
.',:t (I')
,,_,) ...... IPI
r':.... r-::: I:"~
....... "'~ ""
~..... ~-... (.)
..~) (,) I",)
!'-" "..... ~()
(:, ~~ ~~
(.~ lt~) (:)
~'...
.... "~.~ "-.."
1:'.4 b) t.."
,.<
0'.. () <) >::)
"'.1"......
"J"" (,) (;. 0::::'
0) I~')
I:')>:::''::::> C:'
(i) "-.-:1"'
~.,,~
....... (.... 1"1'-. t.J
'uf:::'~
~ 'j-
fL (~.~ ~~ C) (1_ t.~ W :~ 0_
:> ~ -:> .J I', .:> -') If) f')
~....'" , I I
f~) .I iL (,) -I)
~ ~. <> C) ,
..... '.0 .-0 ~ Z
it:: .,j H
::) * * ,::.
I" ~-:I , * '.1) * n:: ..-D
::~~ z >- '* [- ~ " <I: I'
ItJ I""" tl.J (I) .<< Z --. << :~ .......
..ll l~ Z .-. * III ~.. ,~ (Yo ,..
~-: H IL fr:: :> E * E ,., W
(( "I (j CJ fr:: ',.' ..J t.- ,.~. p:J ".
2 I:::> 1,- 11.1 Ci . ItJ . n: I, 1--
'I Z [- :~ (J: fi_ ll. '..' .--1 (( ,J :;,~
.~:..
.0 () <I: (I) IIJ f~J . :I: n-:: u: <I: fL (:I <1:
.- IL H lLl I)) (I) ~.. '1: l:::t ~" I.LI I ~- I)) I
,. CI I.' -:;r ,::. 1-.... () ttJ C) ,c::, C)
~-
t:! fI- e.. C) ~~ III I E I:C I I- ~') t" IJ_ ~")
. tll H -') ,.... ;';~ ((I >- ::::) 1-- !'-- (':) ~
(I) 0: ...J H ..J fa f-- ...J lJJ ", ......
- =1 C) <r .J 'J: <I: . I'....) <I: '* 11.1 .... '* :~ ~
.
I <I: (I) I~ il. .J ,(. C) ....) [.. <I: c') '* 0::: * ~-
, C.) W 1!J d IIJ ('L W . .-. n:: 11.1 * 1,- .'..... ,<< ..... ".
l::l .J IL (I) ..J fiM :1: IJ. ...J .., (I) ~ '* C) 1-,
...~
.."
",,'
"-
"5::
'..,...,
\-\)
..
.
'-';".:
~\
,,.;.'
j .~.
9 "1.