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RESOLUTION NO. /~t?~~
,
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH OMNITRANS RELATING TO THE WORKER'S
COMPENSATION/LOSS PREVENTION PROGRAM.
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
hereby authorized and directed to execute on behalf of said City
an agreement with Omnitrans relating to the Worker's Compensation/
Loss Prevention Program, a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as
fully as though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at
0t.~'L."
day 0 /" ,1977,
by the following
meeting thereof, held
on the /~pt
vote, to-wit:
AYES:
Councilmen ~~;:d~~ A:::~A'-: ~~I.wy--;
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~(~N;~~/ q/~//L/
~/A1/fi./k~.,..)' .~ A 4/4/
NAYS:
ABSENT:
The foregoing resolution
Of7<7~.kh ,1977.
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is hereby approved this~/day
Approved as to form:
h~~;i/~/
Eity At orney
no
SEP/f,. 1977
LUCILLE GOFORTH, City Clerk
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A G R E E MEN T
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(worker's compensation/loss prevention program)
THIS AGREEMENT is made and entered into this
day of
4 , 1977, by and between the CITY OF SAN BERNARDIN ,
5 a municipal corporation, hereinafter called "City", and OMNITRANS,
, a joint powers authority, hereinafter called "Omnitrans".
7 WIT N E SSE T H:
8 WHEREAS, Omnitrans has heretofore undertaken to self-
9 insure its liability to its employees pursuant to the Worker's
10 Compensation Laws; and
11 WHEREAS, City has a Loss Prevention Division with the
12 capacity to administer Omnitrans' loss prevention program; and
13 WHEREAS, the City has the capacity to provide supervision
14 and administration of Worker's Compensation, a self-insured and
15 loss prevention program; and
16 WHEREAS, Omnitrans desires the services of the City's Loss
17 Prevention Division to administer a total loss prevention program
18 for Omnitrans' management and employees, and to administer its
19 Worker's Compensation self-insurance program,
20 NOW, THEREFORE, in consideration of the mutual promises,
21 provisions, and legal detriments herein provided, it is ~greed as
22 follows:
23
1. City Duties. The City shall supervise and administer
24 the legally uninsured (self-insurance) Worker's Compensation and
25 loss prevention programs of Omnitrans and act as the representa-
26 tive of Omnitrans in matters related to Omnitrans' obligations
27 pursuant to the Worker's Compensation Laws and the Occupational
28 Safety & Health Act of the State of California as provided in
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1 this agreement. In connection therewith, City shall provide
2 services for Omnitrans as follows:
3
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A. Medical Services.
(a) City shall make available a listing of a panel of
5 physicians, surgeons, chiropractors, and specialists for injured
6 employees, and supervise the furnishing of medical treatment to
7 injured employees as required by said Worker's Compensation Law.
8 Omnitrans shall have the prior right to approve all persons liste
9 for said medical service. Notwithstanding the foregoing, City
10 shall not be responsible for compensating the aforesaid
11 physicians, surgeons, chiropractors and specialists for their
12 services to Omnitrans.
13
(b) City shall audit, inspect and closely supervise
14 all medical expenses and adjust all charges in accordance with
15 the State fee schedule.
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(c) City shall maintain all records and statistical
17 data regarding accidents, employee injuries and medical treatment
18 therefor.
19
B. Legal Services.
(a) City shall provide technical advice concerning
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21 the acceptance or denial in Omnitrans' name of all submitted
22 Worker's Compensation claims. Said advice shall be on the basis
23 of the laws, rules or regulations governing Worker's Compensation
24 and employer's liability.
25
(b) City shall hire and retain attorneys at law with
26 the approval of Omnitrans to represent and defend Omnitrans in
27 all hearings before the Worker's Compensation Appeals Board and
28 any and all other Worker's Compensation proceedings in all State
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and Federal courts. Said attorneys shall be certified Worker's
Compensation Specialists certified by the State Bar of California.
Attorney's fees and legal expenses shall conform with an
established fee schedule approved in advance by Omnitrans, and
said attorney's fees and legal expenses shall accurately be
assigned as direct costs to individual case files. Omnitrans
shall bear and pay all legal costs. The payment for such legal
expense shall be made from Omnitrans' special Trust Fund provided
for herein. Checks shall be issued and signed by City personnel.
A monthly bank reconciliation shall be provided promptly to
Omnitrans by City.
(c) City shall keep Omnitrans informed as to the
current status of all cases; and, with the prior written approval
of Omnitrans, shall prepare and effect all compromise and release
agreements, communications and permanent disability ratings.
(d) City shall exert its best efforts to protect and
preserve the interests of Omnitrans and shall supervise the legal
aspects of Omnitrans' Worker's Compensation and Occupational
Safety & Health Act obligations to employees.
(e) City shall advise the General Manager of Omnitrans
of all changes in law and procedures which may materially affect
Omnitrans and/or its employees.
C. Administrative Services.
(a) City shall provide assistance and advice to
Omnitrans relating to the administration of Omnitrans' self-
insurance program; shall prepare and file all notices and reports
with the appropriate State agencies as may be required for
administration of the self-insurance program.
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(b) City shall investigate and adjust claims of
2 employees and shall pay all claims from funds provided by
3 Omnitrans as hereinafter provided. Payments shall be disbursed
4 by City from a special imprest Trust Fund bank account establishe
5 with funds provided by Omnitrans. Checks shall be issued by the
6 City with monthly bank account reconciliation provided to
7 Omnitrans. The balance on hand in this bank account shall be
8 maintained in a sum of at least three thousand dollars ($3,000.00)
9 at all times. City shall promptly advise Omnitrans of all checks
10 drawn on this account, and Omnitrans shall be responsible for
11 maintaining said account at said balance and shall promptly make
12 all deposits necessary to so do.
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(c) City shall provide a Manual of Operating procedur s
14 establishing efficient and adequate procedures for the processing
15 of employee claims and the reimbursement of the Trust Fund bank
16 account.
17
(d) City shall assist Omnitrans in the maintenance an
18 preparation of necessary forms and records for reporting and
19 accounting of employee claims by appropriate functions determined
20 by the parties hereto.
21
(e) City shall assist and advise Omnitrans in the
22 administration of personnel procedures and policies affecting the
23 Omnitrans' Worker's Compensation program. Said procedures and
24 pOlicies shall provide for:
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(i) Types of pre-employment examination, and the
26 development and maintenance of physical standards for the various
27 occupations;
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(ii) The organization and operation of the
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Omnitrans' Safety Committee;
(iii) Return-to-Work regulations;
(iv) The reclassification and rehabilitation of
injured employees; and
(v) Supplementary payments to injured employees
made by 'OMnitrans in excess of those required under the Worker's
Compensation Law.
D. Record Services.
(a) City shall prepare and file with the State of
California and all appropriate agencies, all forms, reports,
statistics and other documents required to be filed by Omnitrans
pursuant to the Worker's Compensation Laws of the State of
California.
(b) City shall maintain records and statistical data
on losses arising from employee injuries and occupational ill-
nesses in accordance with the requirements of the Department of
Industrial Relations of the State of California.
(c) City shall maintain a file for each reported
employee injury and/or occupational illness and shall maintain a
complete accounting record for all payments made for such employe s.
(d) City shall assist Omnitrans in maintaining all
payroll and loss records required by the California Inspection
Rating Bureau.
(e) City shall compute the projected extent of
anticipated permanent disability ratings and provide Omnitrans
with estimates necessary for the establishment of appropriate
reserves for all losses.
(f) City shall provide Omnitrans monthly reports
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showing:
{i} A listing of all employee inj~ry claims and
the current status thereof, including a statement of amounts
paid for medical or compensation expense and the net reserve for
each case;
{ii} The cause and nature of injury or illness;
{iii} The number of days charged to loss time,
modified for light duty and wage continuation considerations;
{iv} The present status {permanent and stationary
date};
{v} The third parties involved, if any, and
{vi} The dollar cost of sick leave supplement and
wage continuation.
{g} City shall prepare and furnish an annual evalua-
tion report to Omnitrans analyzing the effectiveness of the
Worker's Compensation self-insurance program and determining the
cost for the Worker's Compensation self-insurance program. Said
report shall compare the cost of the program against the cost of
insurance obtained from the State Compensation Insurance Fund.
During the budget preparation process, Omnitrans shall report its
annual payroll to the City so that appropriate rates may be pro-
jected for the next fiscal year.
{h} City shall provide rehabilitation consultation fo
disabled employees.
E. Loss Prevention Services.
{a} The City shall provide loss prevention services a
requested by Omnitrans, which shall consist of:
{i} Management/Supervisor Training in Loss
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1 Control and Investigative techniques;
2 (ii) Defensive Driving Course for operators;
3 (iii) On-site advisory consultation to the
4 Ornnitrans' Safety Committee;
5 (iv) In-depth annual and spot industrial safety
, inspections of equipment and physical facilities; and
7 (v) A manual containing appropriate loss
8 prevention procedures.
9 2. Term of Agreement. The term of this agreement shall
10 be for a fiscal year commencing July 1, 1977 and ending on June
11 30, 1978.
12 3. Payment for Services. Omnitrans shall pay to City as
13 and for full payment for the services provided for hereunder
14 during the term hereof, the total sum of five thousand eight hun-
15 dred dollars ($5,800.00) in four (4) equal quarterly payments of
16 one thousand four hundred fifty dollars ($1,450.00), payable
17 August 1, 1977, November 1, 1977, February 1, 1978 and May 1,
18 1978, commencing on August 1, 1977.
19 The parties hereto agree that the sum of five thousand
20 eight hundred dollars ($5,800.00) is as and for City's
21 compensation for its services hereunder, and that Omnitrans
22 shall bear all costs of the programs and shall promptly reimburse
23 City for all expenditures made in connection with the programs,
24 whether such expenditures are made from the Trust Fund bank
25 account by City or otherwise.
26 4. Termination. This agreement may be terminated by
27 either party at any time by the terminating party giving sixty
28 (60) days advance written notice to the other party. This
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1 agreement shall terminate forthwith on the date designated in
2 said notice. In the event of such termination, Omnitrans shall
3 pay City for its services to the termination date in an amount
4 determined by pro-rating the quarterly charge set forth in
5 Section 3 hereinabove.
6 5. Non-Assignability. This agreement shall not be
7 assigned by either of the parties hereto.
8 6. Amendment. This written agreement represents the
9 entire agreements of the parties hereto and may only be amended
10 by further written agreements executed by both of the parties
11 hereto, and failure on the part of either party to enforce any
12 provision of this agreement shall not be construed as a waiver
13 of the right to compel enforcement of such provision, or act to
14 relieve any party of its obligations under this agreement.
15 7. Hold-Harmless. Omnitrans hereby agrees to, and
16 shall, hold City, its elective and appointive boards, commissions
17 officers, agents and employees harmless from any liability for
18 damage or claims for damage, including claims for personal
19 injury, including death, claims for property damage, and all
20 other claims which may arise from City's activities under this
21 agreement, whether such activities be by City or by anyone or
22 more persons directly or indirectly employed by or acting as
23 agent for City. Omnitrans agrees to, and shall, defend City
24 and its elective and appointive boards, commissions, officers,
25 agents and employees from any suits or actions at law or in
26 equity for damages caused, or alleged to have been caused, by
27 reason of any of City's activities hereunder.
28 8. Notices. All notices herein required shall be in
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, ~-T'"
writing and delivered in person or sent by certified mail,
postage prepaid, addressed as follows:
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
Omnitrans
183 South "G" Street
San Bernardino, CA
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the date first hereinabove written.
ATTEST:
OMNITRANS
By , ~-~~._ 4~
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Title ~~/;bI""JI!1
I"
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