HomeMy WebLinkAboutTerminate Contract - Gates, McDonald & Co - 1976 City & Gates McDmald & Co.
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GATES. NIC C'OM 4,.isN Y
I=Broadway,Oakland.CaUbmia 0012 (41$;8 D1
AGREEMENT
THIS SERVICE AGREEMENT entered into on September 27, 1976
between the City of Cupertino, hereinafter called "City" and GATES, McDONALD &
COMR,a' Y, a corporation hereinafter called "Company".
WHEREAS, the City has elected to terminate 'its contract with the State
Compensation Insurance Fund covering Workmens' Compensation claims; and
WHEREAS, Company has heretofore submitted a proposal to City which was
accepted by City to be effective October 1 , 1976.
Li' COIZIOFRATION OF THE PRE,`USES, the parties mutually agree as follows :
1 . Recitals. The foregoing recitals are ag,--eed to by the parties.
2. Term. This agreement shall be for a period of one year commencing on
October 1 , 1976 and terminating on October 1 , 1977 provided , however,
that the said agreement shall , unless terminated as herein provided,
be self renewing on a year-to-year basis thereafter.
3. Consideration. The annual service fez for the first year shall be
$1 ,250 payable to Company on a quarterly basis in advance.
4. Termination. This agreement may be terminated by either party after
the first ten (10) months thereof by sixty (50) days written notice of
the intention to so terminate. Notice as herein provided shall be
computed from the date of its receipt by addressee.
5. tesponsibiIities of Company. Company agrees to perform at least the
following services.
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a. Internal Cost Control Procedures and Claims Administration.
(1) Conferences with all persons within the organization (Doctors,
nurses, personnel directors, accountants, department heads, etc )
involved directly or indirectly in the processing of industrii '
claims, to insure the maintenance and coordination of vital
control procedures.
(2) Establishment of procedures for the prompt reporting, investigation,
recording and treatment of all industrial injuries and diseases.
(3) Preparation of reports and forms required in the processing of
claims filed with the Workers' Compensation Appeals 3oard.
(4) " aintenance of adequate historical data and dispensary r-cords.
(�) Review and process all industrial cases in accordance with the
requirements of the appropriate State agencies and the City.
( ;) Advice in determining compensability of injuries and illness iii
accordance with State Workers ' Compensation laws.
(7) Determine eligibility for and authorize payr„ent of tei.iporary
disability compensation in coordination with medical advice and
the internal job continuation programs of City.
(8) determine the extent and degree of permarterit disability utilizing
as necessary and desirable, any medical sources or advisory
bodies available.
(9) Authorize payment of permanent disability compensation and deat'n
benefits in accordance with advisory ratings, awards, or, settle-
rnent agreements.
(10) Maintain on each case current estimates of the future anticipilted
cost of all benefits, i .e. , reserves.
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(11) Investigate, as necessary and appropriate, questionable cases and
the status of disabled employees it order to assist in the
adjustment and litigation of cases.
(12) Consult with appropriate personnel of City regarding return to
work problems, or Compromise and Release potentials, and provide
periodic narrative status reports on major cases.
(13) Develop an appropriate payment system utilizing
(a) a claim payment voucher system, or
(b) any other payment system meeting the City's fiscal policies
and procedures and State requirements .
b. Medical Control .
(1 ) Recommendations on the composition of medical facilities for each
of City's locations , or utilize the City's existing medical panels,
(2) U,tilization and adaption of dispensary and medical facilities to
City's particular requirements.
(3) Close liaison with selected doct-ors to insure maximum efficiency
in the processing of claims .
(4) Review of all Doctor's First Reports of tdork Injury and initiation
of the proper procedure in each claim.
(5) Audit of all medical bills .
c. Claims Processing.
(1 ) The processing of all claims including those filed with the
Workers' Compensation Appeals Board for determination.
(2) The reviewing, recording and filing of all Employer's Reports of
Industrial Injury wizh the Department of Industrial Relations.
(3) Consultation and investigation by company representatives on
questionable claims , evaluation of cou,pensability etc.
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(4) Evaluation of disability and compensation payable in each claim,
including permanent disability ratings, compromise settlements,
and other awards.
(5) Issuance of periodic progress reports in pending claims.
(6) Prompt compliance with the requirements of the Department of
Industrial Relations as to the maintenao:e of a detailed
statistical record of all claims and disbursements for cost
analysis purposes.
(7) Preparation of claims filed with the Workers' Compensation
Appeals Board and cooperation with attorneys for City ' n
hearings before the Appeals Board.
�. Cost Analysis and Reports.
(1 ) !Monthly claims reports will be provided, by departmental break-
down so loss trends and problem areas can be readily identified
by the management of City.
a. Legal.
(1 ) Gates, `cDonald & Company will coordinate activities as follows:
(a) Assist the legal counsel of City's choice in preparation
of cases and negotiation of CompromisE and Release settle-
ments.
(b) Monitor all cases for potential subrogation recoveries ,
initiate correspondence to effect collection, and assist
legal counsel whe�i•e litigation is requi;4ed to effect such
recovery.
(c) Keep City currently informed of developments in litigated
cases.
(d) Recommend and direct, where needed, specialized and professional
investigation service.
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6. Revlew. ProLedure. From time to time the Compa:ry shall have periodic
conferences with a representative of City to review the adequacy of the
City's control program and claims matters in general . Company shall also
provide City with periodic service letters dealing with changes or proposed
changes in California Workers' Compensation Administrative Procedures and
the Rules and Regulations of various State agencies involved.
1. Binding on Heirs, Successors and Assigns. This agreement shall be binding
on the heirs, successors and assigns of the parties hereto.
IN WITNESS WHEREOF THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT the
day and year first above written.
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Title
GATES, McDONALD & COMPANY
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Title Manager
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RESOLUTION NO. 4283
A RE30LUTIONI OF THE CITY ==iCIL OF THE CITY OF CUPERTINO
AUTHORIZING EXECUTION OT SERVICE AGREL%1ENT D WEEN THE
CrfY OF CUPERTINO AM GAPES, MCDONALD AND COMPANY
TO TMCMATE ITS CONTRACT WITH THE STATE COMPENSATION
INSURANCE FUND
In EREAS, there has been presented to the City Council a service agreement
between the City of Cupertino and Gates, McDonald and Company to terminate its
contract with the State Compensation Insurance Fund covering Workmens' Comp-
ensation claims;
XW, THEREFORE, BE IT RESOLVED, that t:ze City Manager is hereby authorized
to execute the agreement hmrein referred to in behalf of the City of Cupertino.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of October, 1976, by the following vote:
Vote Members of the City Council
AYES: Frolich, Jackson. imcllis, O'Keefe, Meyers
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
/s/ Robert W. Meyers
Mayor, City of Cupertino
ATTEST:
/s/ Wm. E. Ryder
City Clerk
6
Cite of Cupertim
Y'
10300 Turte Aicnue
Cupertino, California 950i4
'Telephone (408) 252-4505
UEPARPALN1 OF A0'v11Y1,)rR%11V1. SLRVICLS
October 21., 1976
(sates, McDuriald .& Company
1330 Broadway
Oakland, California 94612
ACI:E'
Ericlused `ur :ua. perusal ....1 i i1e i,; a up% u; Scr:*i, _,'-wnt bt,t-weer,
the C i t y: of CuperL L ,,, slid GaLc.-. McDa.nal c t u. wit_'. .at t ;chm. ut of i:rsul ut i _,:a
No. 4283.
ELLEN PAGNIV°I
DEPUTY CITY CLERK
EP/sC
Enclosures