HomeMy WebLinkAboutCC RESO 11,540RESOLUTION NO. 11,540
RESOLUTION AUTHORIZING EXECUTION OF A MEMORANDUM
OF AGREEMENT BETWEEN CITY OF NATIONAL CITY AND R.
L. KAUTZ & CO. FOR A SELF INSURANCE PROGRAM FOR
WORKMEN'S COMPENSATION
BE IT RESOLVED by the City Council of the City
of National City, California, that the Mayor is hereby
authorized and directed to execute, and the City Clerk is
authorized to attest, that certain memorandum of agreement
between the City of National City and R. L. Kautz & Co.
for a Self Insurance Program for Workmen's Compensation.
PASSED AND ADOPTED this 23rd day of July, 1974.
ATTEST:
MEMORANDUM of AGREEMENT
THIS AGREEMENT, entered into this day of 19 ,
by and between the CITY OF NATIONAL CITY, hereinafter called THE
SELF -INSURER, and R. L. 1AUTZ & CO., hereinafter called TEE SERVICE
AGENT, for certain services in connection with the duties and
responsibilities of THE SELF -INSURER under the provisions of the
Workmen's Compensation Laws of the State of California as a result
of injuries to its employees,
WITNESSETH:
WHEREAS, TEE SELF -INSURER has undertaken to self -insure its liabil-
ity to i.s employees pursuant to the Workmen's Compensation 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 obligations
hereby assumed, and the performance of the acts hereinafter set
forth, the parties hereto agree as follows:
THE SERVICE AGENT agrees to supervise and administer the self-
insurance program of TI:E SELF -INSURER, to act as the representative
of THE SELF -INSURER in matters related to THE SELF -INSURER'S obliga-
tions under the Workmen's Compensation Laws of the State of Calif-
ornia 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 all 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 C).
2. Provide a panel of physicians and specialists
for the treatment of injured employees, subject
to THE SELF-INSUP,IR'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 super-
vise the furnishing of medical treatment to
injured employees which is required under the
Workmen's Compensation Laws of the State of
California.
3. Prepare and file in the name of THE SELF -INSURER
all forms, reports and other documents required
under the Workmen's Compensation Laws of the
State of California.
4. 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.
5. 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.
6. Provide monthly a me nine tabulated report on
all employee injury claims showing amounts
paid as medical or compensation expense, and
the net reserve on each case.
7. The fees of attorneys, approved by THE SERVICE
AGENT, who appear before the Workmen's Com-
pensation Appeals Board of the State of
California on behalf of THE SELF -INSURER on
account of injuries to THE SELF-INSURER's
employees shall be allowed by THE SERVICE AGENT
as a charge against THE SERVICE AGENT's compen-
sation set out below for the first year of this
Agreement. Thereafter, such legal fees shall be
paid out of THE SELF-INSURER's Loss Fund Trustee
Account.
THE REMUNERATION to be paid under this Agreement to THE SERVICE
AGENT by THE SELF -INSURER shall be based upon a period commencing
July 1, 1974, and shall be calculated and paid to THE SERVICE AGENT
monthly at the rate of Eight Percent (8%) of Eighty Percent (80%)
of Developed Manual Premium. 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 MANUAL PREMIUM shall be calculated by applying to THE
SELF-INEURER's total insurable California payroll, by classification
of occupations, the rates for Workmen's Compensation Insurance which
are now or may hereafter be established by the Insurance Commissioner
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 Workmen's Compensa-
tion Insurance Division of the Labor. Code of the State of California.
Remuneration paid to corporate officers shall be included only to
the extent of, but not to exceed, Fifteen Thousand Six Hundred
Dollars ($15,600) per annum per officer.
This Agreement shall take effect at 12:01 a.m., July 1, 1974, and
shall continue in effect until June 30, 1975, after which date
this Agreement shall continue in effect until cancelled by either
party as hereinafter provided.
This Agreement may be cancelled by THE SELF -INSURER giving to THE
SERVICE AGENT, in writing, notice of intention to cancel this Agree-
ment sixty (60) days prior to any annual anniversary of July 1.
This Agreement may be cancelled by THE SERVICE AGENT giving to THE
SELF -INSURER, in writing, notice of intention to cancel this Agree-
ment sixty (60) days prior to any annual anniversary date subsequent
to July 1, 1978.
Services herein contemplated shall cover the operations of TEE 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.
Attest:
e i c ,,,
Attest:
CITY OF NATIONAL CITY
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