HomeMy WebLinkAbout1978-08-22; City Council; Resolution 55141
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RESOLUTION NO- 551 4
A RESOLUTION OF THE CITY CQUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROVING
AN AGREEMl3NT BETWEEN THE CITY OF CARLSBAD
AND R. I;. KAUTZ & COMPANY FOR CERTAIN
SERVICES RELATIVE TO SELF-INSURANCE/
WORKERS' COMPENSATION PLAN.
The City Council of the City of Carlsbad, California, does
tereby resolve as follows:
1. That certain agreement between the City of Carlsbad and
L. L. Kautz & Company for certain services relative to Self-
Insurance/Workers' Compensation Plan, a copy of which is attached
iereto marked Exhibit "A" and made a part hereof, is hereby approved
2. That the Mayor of the City of Carlsbad is hereby authorized
md directed to execute said agreement for and on behalf of the
:ity of Carlsbad.
an adjourned
PASSED, APPROVED AND ADOPTED at/ regular meeting of the City
:ouncil of the City of Carlsbad, California, held on the -- 22nd' --_-
lay of Auaus t , 1978 by the following vote, to wit:
AYES : Councilmen
Counci NOES : None
ABSENT: None
Packard, Skotnicki, Lewis, Anear and woman Casler
RONALD C. PACKARD, Mayor J
ATTEST:
(SEAL)
.-< -, Exhibit "A'' to 0 Resolution No. 5574 'c'
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MEMORANDUM OF AGREEMENT
THIS AGREEMENT, entered into this 22nd day of Ausust I 1978, by and between the CITY OF CARLSBAD, hereinafter called
THE SELF-INSURER, and R. L. KAUTZ & CO,, a California corpora- tion, hereinafter called THE SERVICE AGENT, for certain services in connection with the duties and responsibilities of
THE SELF-INSURER under the provisions of the Workers' Compen- sation Laws of the State of California as a result of injuries to its employees,
WITNESSETH:
WHEREAS, THE SELF-INSURER has undertaken to self-insure its
liability to its employees pursuant to the Workers' Compen- sation Laws of the State of California, and whereas, THE
SERVICE AGENT is engaged in the supervision and administration of programs for self-insured employers,
NOW, THEREFORE, for and in consideration of the mutual obliga- tions hereby assumed, and the performance of the acts herein- after set forth, the parties hereto agree as follows:
THE SERVICE AGENT agrees to supervise and administer the- self-insurance program of THE SELF-INSURER, to act as the representative of THE SELF-INSURER in matters related to THE
SELF-INSURER'S obligations under the Workers' Compensation
Laws of the-State of California, and agrees further to provide to THE SELF-INSURER during the term of this Agreement all the services more particularly set forth hereinafter:
1. Administer the self-insurance plan of THE SELF-
INSURER in full compliance with a11 rules and
regulations governing the administration of self-insurance pursuant to Section 3700, et seq.,
Labor Code and the California Administrative
Procedure Act (Government Code, Title 8).
2. Provide a panel of physicians and specialists for
the treatment of injured employees, subject to
THE SELF-INSURER'S approval; provide counsel and
advice regarding THE SELF-INSURER'S first aid and in-plant medical facilities and coordinate these
activities with those of the Claims Department of
THE SERVICE AGENT; and to supervise the furnishing of medical treatment to injured employees which
is required under the Workers' Compensation Laws
of the State of California.
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3.
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6.
Prepare and file in the name of THE SELF-INSURER
all forms, reports and other documents required
under the Workers' Compensation Laws of the
State of California,
Compute and pay all disability benefits due injured employees and audit and pay all medical
benefits from funds provided by THE SELF-INSURER
for these purposes.
Maintain all records and statistical data on losses arising from employee injuries in accordance
with the requirements of the Department of Industrial Relations, State of California,
Provide monthly a machine tabulated report on all
employee injury claims showing amounts paid as medical or compensation expense, and the net reserve on each case.
THE SERVICE AGENT shall open a bank account with a federally
insured bank, as agent for THE SELF-INSURER, and shall have sole signing authority on said account. THE SELF-INSURER shall be responsible for maintaining sufficient balances in
the account to cover the disability and medical benefits due or to become due to its employees. However, if at any tlme an
overdraft exists on this account, THE SELF-INSURER agrees for the benefit of THE SERVICE AGENT and the bank to be responsible for the amount thereof,
THE REMUNERATION to be paid under this Agreement to TSE SERVICE
AGENT by THE SELF-INSURER shall be based upon a period commenc- ing September 1, 1978, and shall be calculated and paid to THE SERVICE AGENT, monthly, at the rate of Five Percent (5%) of
annual premium, with a minimum of Ten Thousand Dollars
($10,000.00) per annum, THE SELF-INSURER agrees to prepare a statement of its earned payroll and premium promptly at the close of each month and to remit the aforesaid remuneration to
THE SERVICE AGENT with said statement,
THE SELF-INSURER agrees to permit THE SERVICE AGENT to audit at any reasonable time THE SELF-INSURER'S payroll developed during the period of this Agreement.
DEVELOPED ANNUAL PREMIUM shall be calculated by applying to THE
SELF-INSURER'S total insurable California payroll, by classifi- cation of occupations, the rates for Workers' Compensation
Insurance which are now or may hereafter be established by the
Insurance Commission of the State of California,
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INSURABLE PAYROLL shall mean total wages, salaries, commissions,
bonuses, and other remunerations paid by THE SELF-INSURER to
its employees, but excluding "overtime remuneration" as defined in the California Manual of Rules, Classifications and
Basic Rates for Compensation Insurance, who are covered by the
Workers' Compensation Insurance Division of the Labor Code of the State of California. Remuneration paid to each department head shall be included only to the extent of, but not to
exceed, Twenty Thousand Eight Hundred Dollars ($20,800.00) per
annum.
This Agreement shall take effect at 12:01 a.m., Septe&er 1, 1978 and shall continue in effect until August 31, 1979, after which
date this Agreement shall continue in effect until cancelled
by either party as hereinafter provided.
This Agreement may be cancelled by either party giving to the other, in writing, notice of his intention to cancel this Agreement sixty (60) days prior to any anniversary of July 1,
Services herein contemplated shall cover the operations of THE
SELF-INSURER in the State of California only.
IN WITNESS WHEREOF, the parties hereto have caused these
..-\,* presents to be signed by their duly authorized officers as of
the day and year first above written, x
CITY OF CARLSBAD .L.
I' Attest:
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By :
Ronald C. Packard, Mayor -
R. L, KAUTZ & CO.
P -.. By :
PEESFDENT
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ADDENDUM TO MEMORANDUM OF AGREEMENT
BETWEEN THE CITY OF CARLSBAD AND R. L. KAUTZ & CO.
It is understood and agreed by both parties that legal expense
shall be paid from the City's bank account established for
payment of the City's Workers' Compensation claims,
CITY OF CARLSBAD
R. L. KAUTZ & CO.
By : President
DATED : E, -6-- 7k/