The URL can be used to link to this page

Home My WebLink AboutC20-023 CTSIServing Colorado's Counties Colorado Counties Casualty and Property Pool Agreement for Partially Self-Funded Program Eagle County January 1, 2020 through December 31, 2020 THIS AGREEMENT is entered into this 1st day of January, 2020 by and between the Colorado Counties Casualty and Property Pool ("CAPP" or "Pool"), a legal entity formed by intergovernmental agreement under Colorado law, and Eagle County ("County"), a political subdivision of the State of Colorado. ARTICLE 1.0 RECITALS 1.1 The County is a member in good standing of CAPP and has adopted the CAPP Bylaws and Intergovernmental Agreement (the "Intergovernmental Agreement"), as amended from time to time by the CAPP membership. 1.2 The County is current with respect to all of its obligations to CAPP and therefore eligible to participate in CAPP's partially self-funded option program (the "Program"). 1.3 The County wishes to self-fund through CAPP a portion of its anticipated property and casualty claims for program year 2020 while having CAPP continue to provide claims adjudication and management services and loss control and prevention programs for the County and CAPP is willing to provide such services on the terms and conditions hereafter stated. ARTICLE 2.0 TERM 2.1 This Agreement shall take effect on January 1, 2020, and shall coincide with the term of CAPP's obligations to pay the retention under the CAPP excess insurance policies (hereafter "Policies"), subject to paragraph 3. 7 of this Agreement. ARTICLE 3.0 OBLIGATIONS OF COUNTY 3.1 The County shall pay CAPP 481,387.28 with equity credit of (47,039.92) and discount ofCTSI fees in the amount of (25,234.62) for a total contribution due of 409,112.74 by January 31, 2020 for insurance coverage and services rendered by CAPP for the period January 1, 2020 -December 31, 2020. For services provided by CAPP after December 31, 2020, pursuant to paragraph 4.1 of this Agreement, the County shall budget, appropriate and irrevocably pledge an annual fee to be determined by the CAPP Board of Directors. 3.2 The County shall budget, appropriate, and irrevocably pledge 138,151.49 in 2020 and thereafter at least annually shall budget, appropriate and irrevocably pledge additional funds sufficient, which may be determined from time to time by CAPP after consideration of actuarial or other financial reports, for the payment of the first $125,000.00 of each qualified claim and allocated loss expenses per occurrence subject to the Policies ("County self-funded retention"), none of which payments shall be the responsibility of CAPP. For this purpose, allocated loss expenses means all costs, charges, or expenses of 20 20 CAPP Self-Funded Agreem ent Page 1 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448 third parties reasonably incurred by CAPP, its agents or its employees, which are properly chargeable to a qualified claim including, without limitation, court costs, fees, and expenses of attorneys, independent investigators, experts and witnesses, and fees for obtaining diagrams, reports, documents, and photographs; and "qualified claims" means those claims for which coverage is provided pursuant to the Policies, subject to any additional coverage limitations imposed by CAPP. A 20,000.00 claims deposit shall be paid to CAPP by January 31, 2020. Additional funds shall be forwarded to CAPP from time to time based on payments for qualified claims and allocated loss expenses. Interest earned on payments made to CAPP pursuant to this paragraph 3.2 shall be credited to CAPP. 3.3 The County shall pay promptly CAPP's invoices pursuant to paragraph 3.2 within fifteen (15) days of receipt. Interest on any overdue payment shall accrue at the rate consistent with the Intergovernmental Agreement. 3.4 It is the parties' intent that at all times CAPP shall have available sufficient funds from the County to pay promptly all proper charges to the County self-funded retention. The parties do not intend for CAPP to be required to advance CAPP funds to pay the County self-funded retention or to perform services if the County fails to provide necessary funds as provided in paragraph 3.2. 3.5 The County agrees that the timely payment of all amounts billed to it pursuant to this Agreement is an obligation of the County under the Intergovernmental Agreement. The County agrees that any failure to so pay, or any failure of the County to comply with any other provision of this Agreement, will result in expulsion of the County from CAPP, and will subject the County to all other remedies and consequences provided for in this Agreement and in the Intergovernmental Agreement. 3.6 If the County is entitled to any credit or payment under Article XI of the Intergovernmental Agreement for any year, and if the County fails to timely pay any amounts due under this Agreement, the Board may, in addition to any other remedies it has, apply against any such amounts due the amount of any credit or payment CAPP owes or may in the future owe to the County as a result of such membership. 3.7 The County's obligations under this Agreement are subject to and conditional upon the County annually budgeting, appropriating, and irrevocably pledging funds as provided in paragraphs 3 .1 and 3 .2 of this Agreement. However, the County agrees that coverage of the County through CAPP under the Policies and the services to be provided the County by CAPP are conditional upon such annual budgeting, appropriation, irrevocably pledging of funds, and timely payment of all amounts due in accordance with this Agreement and the Intergovernmental Agreement, and upon the County's compliance with all other provisions of this Agreement. The County further agrees that failure by the County to so budget, appropriate, irrevocably pledge, or make such payment or to so comply will result in no coverage through CAPP under the Policies for any pending qualified claims for which the County fails to provide funds or pay fees as provided in this Agreement, will result in cancellation of coverage under the Policies, and will result in termination of any services provided to the County by CAPP under paragraph 4.1. 3.8 The County shall pay the full amount then pledged pursuant to paragraph 3.2 upon the request of the CAPP Board if the CAPP Board reasonably determines that CAPP needs the payment in order to meet applicable regulatory or statutory requirements. 2020 CAPP Self-Funded Agreement Page 2 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448 ARTICLE 4.0 OBLIGATIONS OF CAPP 4.1 For qualified claims of the County under the Policies: CAPP will supervise, administer, manage and provide claims adjudication through County Technical Services, Inc. or such other entity or person as the Board of Directors of CAPP ("Board") may detennine, until further notice thereof provided to the County, in accordance with the Intergovernmental Agreement and shall act as the representative of County in all matters related to such services. ARTICLE 5.0 WIT HDRAW AL AND EXPULSION 5.1 Withdrawal or expulsion of the County from CAPP shall not affect the obligations of the County or CAPP under this Agreement. 5.2 On or before the effective date of withdrawal or expulsion of the County from CAPP, the full amount then pledged pursuant to paragraph 3.2 shall be paid to CAPP plus such additional amount as the CAPP Board may reasonably detennine is necessary to pay the County's self-funded retention until all qualified claims under the Policies are closed and to pay CAPP's costs pursuant to paragraph 5.3. 5.3 Upon withdrawal or expulsion of the County from CAPP, CAPP shall retain all pending claim files. The County shall continue to pay CAPP for all costs associated with the County's claims paid through CAPP which are subject to the County's self-funded retention in excess of the payment made pursuant to paragraph 5.2. ARTICLE 6.0 INFORMATION 6.1 All information developed for or specifically relating to claims servicing for the County, including all source documents, stored data and technical, claims, and other information of any kind, and reports prepared by or for CAPP, are the property of CAPP and remain CAPP exclusive property during the existence of and after termination of this Agreement. The County shall have reasonable access to such information, and the right, upon reasonable request, to copy the same at the County's own expense. ARTICLE 7.0 GENERAL PROVISIONS 7 .1 This Agreement is personal to each of the parties and no party may assign or delegate any of such party's rights or obligations hereunder without first obtaining the written consent of the other party. 7.2 Time is of the essence in the perfonnance of the parties' obligations and duties under this Agreement. 7.3 If any portion of this Agreement is declared invalid or unenforceable pursuant to a challenge by the County or by any officer, employee, or resident of the County, or by any other person except CAPP, the CAPP Board shall determine whether the Agreement is or is not severable and its decision shall be final. If the Board determines the Agreement is not severable, the entire Agreement shall be tenninated effective on such date as the Board may decide, the County's coverage under the Policies shall be tenninated as to all pending and future claims as of that date, and all services by CAPP to the County shall be terminated as of that date except for claims adjudication under paragraph 4.1 for claims for which coverage is not terminated under this paragraph, if any exist. Nothing shall prevent the County from obtaining coverage through CAPP in the same manner as other non-self-funded members. 7.4 This Agreement does not alter the Intergovernmental Agreement and the County retains all obligations of a CAPP member as set forth therein. The obligations of the County under this Agreement are obligations of the County within the meaning of the Intergovernmental Agreement. 2020 CAPP Self-Funded Agreement Page 3 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448 7 .5 This Agreement may be enforced by the parties or by any member, if so authorized by the CAPP Board of Directors. All costs incurred by CAPP in the attempt to collect any amount due under this Agreement, including reasonable attorney fees, court costs, and any arbitration costs, shall be paid by the County. The venue for any court action related to this Agreement shall be the Denver District Court. 7.6 Notices in connection with this Agreement and its Addenda shall be delivered to the following in the case of CAPP: Colorado Counties Casualty and Property Pool c/o County Technical Services, Inc. 800 Grant St., Suite 400 Denver, CO 80203 and to the following in the case of County: CAPP Designated Correspondent 7 .7 Any functions, powers, and responsibilities of CAPP provided for in this Agreement shall be exercised by the CAPP Board or its authorized designee. 7.8 In addition to any other remedies which may exist, the CAPP Board may submit any dispute under this Agreement to advisory arbitration, which shall be conducted pursuant to the rules of the American Arbitration Association or other Colorado court annexed arbitration system in Denver, Colorado, as the Board may determine. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the following persons authorized to act on behalf of their respective entities, dated and effective as of January I, 2020 . Date: December 5, 2019 Eagle County, Colorado (County) By:-----------------Date: -------- Chair, Board of County Commissioners By: _____________ _ Date: _______ _ County Clerk (COUNTY SEAL) 2020 CAPP Se lf-Funded Agreement Pag e 4 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448 1/14/2020 1/14/2020 Colorado Counties Casualty and Property Pool 2020 Contribution Exposure and Formula CAPP Contribution Formula 1 Property (buildings, contents and mobile equipment) at .25 per $100 of value. Additional Loss 8 Prevention & Risk Management Cost 2 Vehicles at $425 each. Exposure 3 Liability at .92 per $100 of total revenue . Revenue excludes proceeds from 9 Contribution Prior to bond sales, current expenses for welfare and airport operations. $50k Minimum Applied 4 Miles of road at $12 per mile. 10a Contribution 5 Total Exposure Sum of lines 1 through 4. 10b CTSI Fees Discount Loss Rate Loss Rate-% of Total Loss Divided by % of Total Exposure in a three-year 10c Contribution After 6 period . CTSI Fees Discount Loss Factor. Compare Loss Rate to Loss Factor Table below to determine Factor. The loss factor table is subject to change based on pool's budgetary 11 Equity Distribution needs . 7 Loss Rate Loss Rate Factor Loss Rate Factor 12 Final Amount Due Factor 0.00 0.775 1.50 0.835 0.50 0.795 2.00 0.845 1.00 0.815 1 2 3 4 5 6 Uablllty@ .92 2020 Buildings, Contents, Property @ .25 #of Vehicles@ Miles of Miles@$12 Total County Mobile Equipment p~ v,~ S425each 12/17 Revenue per$100of Road each Exposure Loss 1,,,.--Revenue Rate Eagle SF 246 ,980,533 \ 617,451 l 259 110,075 101,520,878 933 ,992 514 6,168 1,667,686 0.44 Eag le SF Total '--"" - 12/5/2019 12/5/19 Call Meredith Burcham if you have questions. 303-861--0507 Service fees for County Technical Services, Inc . will be at least $6,000, ($3,000 for loss prevention services and $3,000 for all other risk management services) but not to exceed a combined total of $35,000 per member. Underwriting factors (revenue, property values, etc.) were the comparatives used for this portion of the formula. With application of the minimum and maximum as indicated above, an additional charge mai need to be made to the member contribution . Total of Line 7 times Line 5 plus Line 8 before contribution floor is applied . A floor of $50,000 is applied . (A county must pay at least $50,000 for insurance) Contribution before discount for CTSI Fees Members are given a discount for CTSI Claims and Administration fees from projected interest. Contribution after discount for CTSI fees. Equity shall be distnbuted based on county's percent of total pool equity . Contribution after fees discount and equity distribution . This is the amount due . 7 8 8 9 10a 10b 11 12 2020 Contribution Prior 2020Amount Addt'I LP Addt1 RM 2020 CTSI Fees Equity Due after Loss Cost Cost to $50k Minimum Contribution Discount Distribution Discounts & Factor Applied Eauitv Credit 0.775 n/a n/a 481,387 481 ,387 (25 ,235 ) (47 ,040 ) 409,113 409,113 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448 CAPP Claim Payment Reimbursement Option 2020 (Large Deductible Option ) County Loss History Year Eag le Claim No. In cu rred 2005 56,970 C219EAG012-O 225,000 2006 44,015 2007 76,593 2008 122,953 2009 183,109 2010 38,658 2011 182,405 2012 140,054 2013 109,424 2014 134,027 2015 72,281 2016 115,200 2017 297,247 2018 314,862 2019 284,474 $2,172,272 $22 5,000 Averag e Und er Averao e 144,818.15 SIR 138,1 51.49 !Average Annual County Losses under Reimbursement Amount Total Estimated County Property & Uability Cost (Contribution & Est Loss) 11/25/2019 Incurred In Poo l Layer $125 000 100,000 $100,000 $138 ,151.49 $619,538.77 Eag le County Co ntribution Ca lculation Contribution (Regular Member) 1,268 , 195 .60 Fixed Costs Brokerage Fees 10,383.73 Claims Administration 43,914.93 Legal, Audit, Actuarial 2,974 .97 Taxes , Licenses & Fees 135.23 Board and Members' Meetings 324 .54 Miscellaneous Expense 108 .18 CTSI Pool Mgmt & LP Sevice 44 ,989 .38 Total Fixed Costs 102,830 .96 Loss Fund Ca lcul ati on Per Claim Payment Reimbursement Amount 125,000.00 Loss Fund Factor 0.13 Loss Fund Contribution (Regular Member) 904,377 .38 Co ntributi on Loss Fund Contribution 117,569.06 Excess Insurance 260,987.26 Fixed Costs 102,830.96 Contri buti on 481 ,387 .28 Discount for CTS I Claims & Adm in Fees (25,234.62) Equity Credit (47,039.92) Contributi on Due 409,11 2.74 Claims Payment Depos it 20,000.00 Total Due 429,112 .74 DocuSign Envelope ID: E36F57F9-5CAA-4CEF-9533-1CFDFD205448