HomeMy WebLinkAboutbocc.con.029.20192017-11-13 btf
Contract Information
Contract Number
Project Name
Contractor
Budget Line Item 420.97.00000.82409
Procurement Method:
Type:
Contract Start Date
Contract End Date
Contract Type
Retainage
If this is a new contractor, please request they complete and submit to Finance a New Vendor Request Form.
Contact Information:
Department
County Representative Dannette Logan County Representative
Phone (970) 429-2792
Provide a brief description of the contract:
Contract Value Summary:
$ 15,103.92
$ -
$ -
$ 15,103.92
.029.2019
Pitkin County
Procurement Cover Sheet
Please complete the Contract Cover Sheet when the contract/task order is complete and fully executed.
Return all Contract Cover Sheets and Contracts/Change Orders/Amendments/Task Orders to Procurement
No
HR Program Administration
Cannon Cochran Management Services, Inc. ("CCMSI")
$ -
Additional Budget Line
Item(s)
(Please fully allocate New Contract Total)
$ -
$ -
$ -
$ -
Sole Source
Services/Maintenance
1/1/2019
12/31/2019
New Contract
NOTE: Clerks Office will keep original documents in compliance with Colorado State Archives retainage
HR & Risk Mgmt
Program Administration for W/C and other tasks/claims as defined in Attachment A - Scope of Work.
Original Contract Amount
Previous Change Order/Amendment Amount
This Change order/Amendment amount
New Contract Total
Rev 2018-10-10 btf
Note: Every effort should be made to obtain a written contract when otherwise required under County
procedures. When a contract is obtained, complete the Clerk’s check list and send the original signed contract
with coversheet to clerk’s office for archiving.
1
PITKIN COUNTY
SOLE SOURCE PROCUREMENT
JUSTIFICATION REQUEST
TO: Jon Peacock, County Manager
DATE: January 11, 2019
FROM: Dannette Logan, Director of Human Resources
Proposed Contractor: Cannon Cochran Management Services (CCMSI)
Product/Service: Service Agreement - 3rd Party Administator (W/C & Property, Casualty, Liability)
Estimate expenditure for the above Product/Service: $ $15,103.92
This form is required, and is to aid you, in documenting your Sole Source request. Complete all portions of
this form. This purchase is clearly and legitimately limited to a Single or Sole Source. (Examples: original
manufacturer, no regional distributor, standardization etc):
Explain:
Original 3rd Party Administrator for HR claims. They have been valuable partners and are intimately
familiar with our policies and HR functions. It would be in the best interest of the County to maintain their
services to ensure consistent and reliable HR admin functionality.
Rev 2018-10-10 btf
Note: Every effort should be made to obtain a written contract when otherwise required under County
procedures. When a contract is obtained, complete the Clerk’s check list and send the original signed contract
with coversheet to clerk’s office for archiving.
2
The undersigned requests that Pitkin County waive other procurement requirements and recognize this
transaction as a sole source exception to the Pitkin County Procurement Code.
Department Head Section Head
!#COUNTY REPRESENTATIVE#! Date !#SECTION LEADER#! Date
County Manager
Reason for Denial:
______________________________________________
!#COUNTY MANAGER SOLE#! Date
Director of Human Resources
Jan-18-2019
Dannette Logan
County Manager
Jan-23-2019
Jon Peacock
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
1
PITKIN COUNTY CONTRACT FOR PROVISION OF SERVICES
THIS CONTRACT, made January 18, 2019 by and between the Board of County Commissioners
of Pitkin County, Colorado, 530 E. Main St., Suite #302, Aspen, CO 81611, (hereinafter called the
“County”) and Cannon Cochran Management Services, Inc ("CCMSI"), 2 East Main Street,
Danville, IL 61832 (hereinafter called the “Contractor”) to perform the following work: HR
Program Administration (“Project”).
I. Term of Contract: The term of this Contract is from January 1, 2019 to December 31,
2019. At the expiration of the initial term, the contract may be extended for five (5)
additional terms of one (1) year by the express written consent of both parties.
II. Contractor’s Obligations. Contractor shall provide supervisory functions,
administrative tasks, and act as County’s representative, should the need arise, as
further defined in Attachment A – Scope of Work.
III. Compensation and Expenses, Invoicing, Payment and Offset. The County shall
compensate Contractor for its services in accordance with the Project Budget and
Schedule set out in Paragraph II. It is expressly understood and agreed that in no event
will the total compensation and reimbursement to be paid hereunder exceed the sum of
Fifteen-Thousand One-Hundred and Three dollars and Ninety-Two cents ($15,103.92)
for all services rendered. By contract or amendment, the County and Contractor may
reallocate the budget among project tasks if the total budget amount remains
unchanged. Contractor shall invoice for the project monthly based on hours worked,
with payment expected within thirty (30) days of invoice. Any payment by the County
may be offset by any amount the Contractor owes the County for any reason.
IV. County’s Exclusive Ownership of Work Product. Drawings, specifications,
guidelines and other documents prepared by Contractor in connection with this
Contract shall be the property of the County. However, Contractor shall have the right
to utilize such documents in the course of its marketing, professional presentations, and
for other business purposes. Contractor assigns to County the copyrights to all work
prepared, developed, or created pursuant to this Contract, including the right to: 1)
reproduce the work; 2) prepare derivative works; 3) distribute copies to the public; 4)
perform the works publicly; and 5) to display the work publicly. Contractor shall have
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
2
right to use materials produced in the course of this Contract for marketing purposes
and professional presentations, articles, speeches and other business purposes.
V. Pitkin County’s Obligations. Pitkin County shall administer this Contract through
a County Representative. Dannette Logan, Director of Human Resources and Risk
Management will manage the project as the County’s Representative. In the event that
Dannette Logan is not available, an authorized designee shall assume the County
Representative’s duties. The services provided and products delivered by the
Contractor under this Contract will be subject to review by the County’s
Representatives, or a designee, for compliance with Contractor’s obligations prior to
final payment.
VI. Termination Prior to Expiration of Contract Term. The County has the right to
terminate this Contract, with or without cause, by giving written notice to the
Contractor of such termination and specifying the effective date thereof. Such notice
shall be given at least ten (10) days before the effective dat e of such termination. In
such event all finished or unfinished documents, data, studies and reports prepared by
the Contractor pursuant to this Contract shall become the County’s property. Contractor
shall be entitled to receive compensation in accordance with the Contract for any
satisfactory work completed pursuant to the terms of this Contract prior to the date of
termination. Notwithstanding the above, Contractor shall not be relieved of liability to
the County for damages sustained by the County by virtue of any breach of the Contract
by the Contractor.
VII. Independent Contractor Status.
A. The parties to this Contract intend that the relationship between them contemplated
by the Contract is that of independent contractor. Contractor, and any agent,
employee, or servant of Contractor shall not be deemed to be an employee, agent,
or servant of Pitkin County.
B. Contractor is not required to offer his services exclusively to Pitkin County under
this Contract. Contractor may choose to work for other individuals or entities
during the term of this Contract, provided that the basic services and deliverable
products required under this Contract are submitted in the manner and on the
schedule defined under this Contract.
C. Contractor warrants that all work produced will conform to all applicable industry
standard of care, skill and diligence in the performance of Contractor’s obligations
under this Contract.
D. Contractor shall not attempt to oversee or supervise the work or actions of any
Pitkin County employee, servant or agent in the course of completing work under
this Contract.
E. Contractor is not entitled to any Workers’ Compensation benefits through Pitkin
County and is responsible for payment of any federal, state, FICA and other income
taxes.
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Budget Line Item # 420.97.00000.82409
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VIII. Assignability. This Contract is not assignable by either party. Any use of
subcontractors by the Contractor for performance of this Contract must be accepted in
writing by the County.
IX. Severability. In the event that any provision of this Contract shall be held to be invalid
or unenforceable, the remaining provisions of this Contract shall remain valid and
binding upon the parties hereto.
X. Integration and Modification.
A. This Contract represents the entire and integrated Contract between the County and
the Contractor and supersedes all prior negotiations, representations, or contract,
either written or oral. This Contract may be amended only by written contract
signed by both the County and the Contractor.
B. The County may, from time to time, request changes in the scope of services of the
Contractor to be performed hereunder. Such changes, including the increase or
decrease in the amount of the Contractor’s compensation, which are mutually
agreed upon between the County and the Contractor, shall be in writing and upon
execution shall become part of this Contract.
XI. Indemnity.
A. The Contractor agrees to indemnify, hold harmless and, not excluding the County's
right to participate, defend the County, its subsidiary, parent, associated and/or
affiliated entities, successors, or assigns, its elected officials, trustees, employees,
agents, volunteers, and any jurisdiction or agency issuing permits for any work
included in the project, hereinafter referred to as indemnitee, from all suits and
claims, including attorney's fees and cost of litigation, actions, loss, damage,
expense, cost or claims of any character or any nature arising out of the work done
in fulfillment of the terms of this Contract or on account of any act, claim or amount
arising or recovered under workers' compensation law or arising out of the failure
of the Contractor to conform to any statutes, ordinances, regulation, law or court
decree. It is agreed that the Contractor will be responsible for primary loss
investigation, defense and judgment costs where this Contract of indemnity applies.
In consideration of the award of this Contract, the Contractor agrees to waive all
rights of subrogation against the County its subsidiary, parent, associated and/or
affiliated entities, successors, or assigns, its elected officials, trustees, employees,
agents, and volunteers for losses arising from the work performed by the Contractor
for the County.
B. The Contractor further shall investigate, process, respond to, adjust, provide
defense for and defend, pay or settle all claims, demands, or lawsuits related hereto
at its sole expense and shall bear all other costs and expenses related thereto, even
if the claim, demand or lawsuit is groundless, false or fraudulent.
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
4
XII. Insurance. Contractor and subcontractors shall procure and maintain until all of their
obligations have been discharged, including any warranty periods under this Contract
are satisfied, insurance against claims for injury to persons or damage to property which
may arise from or in connection with the performance of the work hereunder by the
Contractor, its agents, representatives, employees or subcontractors.
The insurance requirements herein are minimum requirements for this Contract and in
no way limit the indemnity covenants contained in this Contract. The policies shall
include, or be endorsed to include, the following provision: On insurance policies
where the County is named as an additional insured, the County shall be an additional
insured to the full limits of liability purchased by the Contractor even if those limits of
liability are in excess of those required by this Contract.
The County in no way warrants that the minimum limits contained herein are sufficient
to protect the Contractor from liabilities that might arise out of the performance of the
work under this Contract by the Contractor, its agents, representatives, employees, or
subcontractors. The Contractor shall assess its own risks and if it deems appropriate
and/or prudent, maintain higher limits and/or broader coverages. The Contractor is not
relieved of any liability or other obligations assumed or pursuant to the Contract by
reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or
types. Commercial General Liability Completed Operations coverage must be kept in
effect for up to three (3) years after completion of the project.
A. Coverage and Limits of Insurance. Contractor shall provide coverage with limits
of liability requirements provided that the coverage is written on a “following form”
basis.
1) Statutory Workers’ Compensation: Colorado statutory minimums
a. Policy shall contain a waiver of subrogation against the County.
b. This requirement shall not apply when a contractor or subcontractor
is exempt under Colorado Workers’ Compensation Act AND when
such contractor or subcontractor executes the appropriate sole
proprietor waiver form.
Minimum Limits:
Coverage A (Workers’ Compensation) Statutory
Coverage B (Employers Liability)
$ 500,000
$ 500,000
$ 500,000
2) Commercial General Liability – ISO 1CG 0001 form or equivalent.
(With County named as an additional insured)
Minimum Limits:
General Aggregate $ 2,000,000
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
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Products/Completed Operations Aggregate $ 2,000,000
Each Occurrence Limit $ 1,000,000
Personal/Advertising Injury $ 1,000,000
Fire Damage (Any One Fire) $ 50,000
Medical Payments (Any One Person) $ 5,000
Coverage to include:
Premises and Operations
Explosions, Collapse and Underground Hazards
Personal / Advertising Injury
Products / Completed Operations
Liability assumed under an Insured Contract (including defense costs assumed under
contract)
Independent Contractors
Designated Construction Project(s) General Aggregate Limit, ISO CG 2503 (1997
Edition or equivalent)
Additional Insured—Owners, Lessees or Contractors Endorsement, ISO Form 2010
(2004 Edition or equivalent)
Additional Insured—Owners, Lessees or Contractors Endorsement, ISO CG 2037
(2004 Edition or equivalent)
The policy shall be endorsed to include the following additional insured language
on the Additional Insured Endorsements specified above: “County, its subsidiary,
parent, associated and/or affiliated entities, successors, or assigns, its elected
officials, trustees, employees, agents, and volunteers named as an additional insured
with respect to liability and defense of suits arising out of the activities performed
by, or on behalf of the Contractor, including completed operations”.
3) Auto Liability: Bodily injury and property damage for any owned,
hired and non-owned vehicles used in the performance of this Contract.
Minimum Limits: Statutory
Coverage Bodily/Property Damage (Each Accident)
$ 1,000,000
4) Special Coverages (check as appropriate and insert amount):
a. ☐ Performance Bond $
b. ☐ Professional Errors and Omissions
c. ☐ Aircraft Liability
d. ☐ Owner’s Protective
e. ☐ Builder’s Risk
f. ☐ Boiler and Machinery
g. ☐ Loss of Use Insurance
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
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h. ☐ Pollution Liability
i. ☐ Crime, including Employee Dishonesty Coverage, or Fidelity
Bond
B. Proof of Insurance:
1) Each insurance policy required by the insurance provisions of this
Contract shall provide the required coverage and shall not be suspended,
voided or canceled except after thirty (30) days prior written notice has been
given to the County, except when cancellation is for non -payment of
premium, then ten (10) days prior notice may be given. Such notice shall
be emailed directly to Procurement@pitkincounty.com. If the insurance
carrier will not provide the required notice, the Consultant/Contractor and
or its insurance broker shall notify the County of any cancellation, or
reduction in coverage or limits of any insurance within seven (7) days of
receipt of insurers’ notification to that effect. Simultaneously with the
Certificates of Insurance, the Contractor shall file with the Project Lead a
certified statement as to claims pending against the required coverages,
reserves established on account of such claims, defense costs expended and
amounts remaining on policy limits.
2) In addition, these Certificates of Insurance shall contain the following
clauses:
a. The contractor’s insurance shall be primary and non-contributory with
any insurance or self-insurance purchased by the County.
b. The insurance companies issuing the policy or policies hereunder shall
have no recourse against the County of Pitkin for payment of any
premiums or for assessments under any form of policy.
c. Any and all deductibles or self-insured retentions in the above-
described insurance policies shall be assumed by and be for the
amount of, and at the sole expense of the Contractor.
d. Location of operations shall be: “all operations and locations at which
work for the referenced Project is being done.”
3) Certificates of Insurance for all renewal policies shall be delivered to
the County’s Representative at least fifteen (15) days prior to a policy’s
expiration date except for any policy expiring on the expiration date of this
Contract or thereafter.
4) The County reserves the right to request and receive a copy of any
policy and any policy endorsement at any time during the term of this
Contract.
XIII. Exemptions and Preferences. All purchases of construction or building or any other
materials for this Contract shall not include Federal Excise Taxes or Colorado State or
local sales or use taxes. Pitkin County is exempt from such taxes under registration
numbers 98-02624 and 84-78000-5k.
Contract # 029.2019 Revision: 2018-06-13 btf
Budget Line Item # 420.97.00000.82409
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XIV. Records. The Contractor shall maintain comprehensive, complete and accurate
books, records, and documents concerning its performance relating to this Contract for
a period of three (3) years after final payment under the Contract and the County shall
have the right within the three (3) year period to inspect and audit these books, records
and documents, upon demand, in a reasonable manner and at reasonable times, for the
purpose of determining, by accepted accounting and auditing standards, compliance
with all provisions of the Contract and applicable law.
XV. Contract Made in Colorado. The parties agree that this Contract was made in
accordance with the laws of the State of Colorado and shall be so construed. Venue is
agreed to be exclusively in the courts of Pitkin County, Colorado.
XVI. Attorney’s Fees. In the event that legal action is necessary to enforce any of the
provisions of this Contract, the substantially prevailing party shall be entitled to its costs
and reasonable attorney’s fees.
XVII. Governmental Immunity. Contractor agrees and understands that Pitkin County is
relying on and does not waive, by any provision of this Contract, the monetary
limitations or terms (presently $150,000 per person and $600,000 per occurrence) or
any other rights, immunities, and protections provided by the Colorado Governmental
Immunity Act, 24-10-101, et seq., C.R.S., as from time to time amended, or otherwise
available to Pitkin County or any of its officers, agents or employees. Further, nothing
in this Contract shall be construed or interpreted to require or provide for indemnification
of the Contractor by the County for any injury to any person or any property damage
whatsoever which is caused by the negligence or other misconduct of the County or its
agent or employees.
XVIII. Current Year Obligations. The parties acknowledge and agree that any payments
provided for hereunder or requirements for future appropriations shall constitute only
currently budgeted expenditures of Pitkin County. Pitkin County’s obligations under
this Contract are subject to Pitkin County’s annual right to budget and appropriate the
sums necessary to provide the services set forth herein. No provisions of the Contract
shall constitute a mandatory charge or requirement in any ensuing fiscal year beyond
the then current fiscal year of Pitkin County. No provision of the Contract shall be
construed or interpreted as creating a multiple-fiscal year direct or indirect debt or other
financial obligation of Pitkin County within the meaning of any constitutional or
statutory debt limitation. This Contract shall not directly or indirectly obligate Pitkin
County to make any payments beyond those appropriated for Pitkin County’s then
current fiscal year. No provisions of this Contract shall be construed to pledge or create
a lien on any class or source of Pitkin County’s moneys, nor shall any provision of this
Contract restrict the future issuance of Pitkin County’s bonds or any obligations
payable from any class or source of Pitkin County’s money.
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Budget Line Item # 420.97.00000.82409
8
XIX. Notice. Any notice required or permitted under this Agreement shall be in writing
and shall be provided by electronic delivery to the e-mail addresses set forth below and
by one of the following methods 1) hand-delivery or 2) registered or certified mail,
postage pre-paid to the mailing addresses set forth below. Each party by notice sent
under this paragraph may change the address to which future notices should be sent.
Electronic delivery of notices shall be considered delivered upon receipt of
confirmation of delivery on the part of the sender. Nothing contained herein shall be
construed to preclude personal service of any notice in the manner prescribed for
personal service of a summons or other legal process.
To Pitkin County:
Dannette Logan
530 E Main Street
Aspen, CO 81611
Email: Dannette.Logan@PitkinCounty.com
with copies to:
Pitkin County Attorney’s Office
530 E. Main St., Suite #301
Aspen, Colorado 81611
Email: Attorney@pitkincounty.com
To Contractor:
Cannon Cochran Management Services, Inc
("CCMSI")
2 East Main Street
Danville, IL 61832
Phone: (217) 446-1089
Email: RGolden@ccmsi.com
XX. Public Contracts for Services and Public Contracts with Natural Persons. In
conformance with the provisions of C.R.S. §§ 8-17.5-101, et seq., as amended and
C.R.S. §§ 24-76.5-101, et seq., as amended:
A. PUBLIC CONTRACTS FOR SERVICES. §§8-17.5-101, et seq. C.R.S.
[Not applicable to agreements relating to the offer, issuance, or sale of securities,
investment advisory services or fund management services, sponsored projects,
intergovernmental agreements, or information technology services or products and
services] Contractor certifies, warrants, and agrees that it does not knowingly employ
or contract with an illegal alien who will perform work under this Contract and will
confirm the employment eligibility of all employees who are newly hired for
employment in the United States to perform work under this Contract, through
participation in the E-Verify Program established under Pub. L. 104-208 or the State
verification program established pursuant to §8-17.5-102(5)(c), C.R.S., Contractor
shall not knowingly employ or contract with an illegal alien to perform work under this
Contract or enter into a contract with a Subcontractor that fails to certify to Contractor
that the Subcontractor shall not knowingly employ or contract with an illegal alien to
perform work under this Contract. Contractor (i) shall not use E-Verify Program or
State program procedures to undertake pre-employment screening of job applicants
while this Contract is being performed, (ii) shall notify the Subcontractor and the
contracting State agency within 3 days if Contractor has actual knowledge that a
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Subcontractor is employing or contracting with an illegal alien for work under this
Contract, (iii) shall terminate the subcontract if a Subcontractor does not stop
employing or contracting with the illegal alien within 3 days of receiving the notice,
and (iv) shall comply with reasonable requests made in the course of an investigation,
undertaken pursuant to §8-17.5-102(5), C.R.S., by the Colorado Department of Labor
and Employment. If Contractor participates in the State program, Contractor shall
deliver to the contracting State agency, Institution of Higher Education or political
subdivision, a written, notarized affirmation, affirming that Contractor has examined
the legal work status of such employee, and shall comply with all of the other
requirements of the State program. If Contractor fails to comply with any requirement
of this provision or §§8-17.5-101 et seq., C.R.S., the contracting State agency,
institution of higher education or political subdivision may terminate this Contract for
breach and, if so terminated, Contractor shall be liable for damages.
B. PUBLIC CONTRACTS WITH NATURAL PERSONS. §§24-76.5-101, et seq.,
C.R.S.
Contractor, if a natural person 18 years of age or older, hereby swears and affirms under
penalty of perjury that he or she (i) is a citizen or otherwise lawfully present in the
United States pursuant to federal law, (ii) shall comply with the provisions of §§24-
76.5-101 et seq., C.R.S., and (iii) has produced one form of identification required by
§24-76.5-103, C.R.S. prior to the Effective Date of this Contract.
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IN WITNESS WHEREOF, the parties have executed this Contract as of the date first set out herein
above.
CANNON COCHRAN MANAGEMENT Services, Inc ("CCMSI")
________________________________________________
!#VENDOR SIGNATURE#! Date
PITKIN COUNTY, COLORADO
_________________________________________________
!#DEPARTMENT REPRESENTATIVE#! Date
Jan-18-2019
Director of Human Resources
Dannette Logan
Rodney Golden
Chief Operating Officer
Jan-24-2019
bocc.con.024.2019 - Attachment A - 2019-01-18.pdf
SCOPE OF WORK
CANNON COCHRAN MANAGEMENT SERVICES, INC.
A. FUNCTIONS OF CCMSI. During the term of this Agreement, the regular functions of CCMSI as the
Program’s Administrator shall include the following:
1. General Administrative Duties and Responsibilities.
(a) Regulatory Functions.
1) CCMSI will perform or supervise functions set forth in the rules and regulations
promulgated by the State Self-Insurance Regulations.
2) CCMSI will prepare, compile, and file notices, reports, documents, forms and surveys as
may be required of the Program by the State.
3) CCMSI will represent the Program to the best of its ability at necessary hearings,
meetings, conventions and administrative inquiries involving the interests of the
Program, as required of the Administrator by the State, except those requiring
representation by an attorney at law.
(b) Account Management Functions. CCMSI will perform and manage the daily business affairs
of the Program, including but not limited to:
1) Preparing and maintaining adequate and correct books, member files, records and
accounts on behalf of the Program in compliance with applicable statutes, regulations
and established practices. This includes Program records relating to underwriting and
accounting.
2) Recommending firms or individuals to perform legal, actuarial, audit, financial and other
professional services on behalf of the Program, and paying such firms or individuals with
Program funds.
(c) Cooperation by CCMSI. CCMSI will fully cooperate with any fiscal or fiduciary agent
appointed by the Program for the management of the Program’s investments; however, it is
acknowledged that CCMSI has no responsibility for the structure or performance of
Program’s investment portfolio.
2. Claim Administration.
(a) Claim Management and Administration. In compliance with its Best Practices, CCMSI will
manage and administer all claims of the Program that occur during the period of this
Agreement. All claim payments shall be made with Program funds. CCMSI will act on behalf
of Program in handling, monitoring, investigation, overseeing and adjusting all such actual
and alleged claims.
PITKIN COUNTY - Service Agreement
Page 2 of 14
(b) Claim Settlement. CCMSI will settle claims of the Program with Program funds in
accordance with reasonable limits and guidelines established with the Program.
(c) Claim Reserves. CCMSI will establish reserves for unpaid reported claims and unpaid claim
expenses.
(d) Allocated Claim Expenses. CCMSI will pay all Allocated Claim Expenses with Program funds.
Allocated Claim Expenses are charges for services provided in connection with specific
claims by persons or firms which are eligible claim expenses under the Program.
Notwithstanding the foregoing, Allocated Claim Expenses will include all expenses incurred
in connection with the investigation, adjustment, settlement or defense of Program claims,
even if such expenses are incurred by CCMSI. Allocated Claim Expenses will include, but not
be limited to, charges for:
1) Independent medical examinations of claimants;
2) Managed care expenses, which include the services provided by comp mc™, CCMSI’s
proprietary managed care program. Examples of managed care expenses includes but is
not limited to state fee schedule, PPO networks, utilization review, nurse case
management, medical bill audits and medical bill review;
3) Fraud detection expenses, such as surveillance, which include the services provided by
FIRE, CCMSI’s proprietary Special Investigation Unit (SIU), and other related expenses
associated with the detection, reporting and prosecution of fraudulent claims, including
legal fees;
4) Attorneys, experts and special process servers;
5) Court costs, fees, interest and expenses;
6) Depositions, court reporters and recorded statements;
7) Independent adjusters and appraisers;
8) Index Bureau and OFAC (Office of Foreign Assets Control) charges;
9) MMSEA/SCHIP compliance charges;
10) Electronic Data Interchange, EDI, charges, if required by state law;
11) CCMSI personnel, at their customary rate or charge, but only with respect to claims
outside the State and only if such customary rate is communicated to the Program prior
to incurring such cost;
12) Actual reasonable expenses incurred by CCMSI employees outside the State for meals,
travel, and lodging in conjunction with claim management;
PITKIN COUNTY - Service Agreement
Page 3 of 14
13) Police, weather and fire report charges that are related to claims being administered
under Program;
14) Charges associated with accident reconstruction, cause and origin investigations, etc.;
15) Charges for medical records, personnel documents, and other documents necessary for
adjudication of claims under Program; and
16) Charges associated with Medicare Set-Aside Allocations;
17) Other expenses normally recognized as ALAE by industry standards.
(e) Subrogation. CCMSI will monitor claims for subrogation.
(f) Provision of Reports. CCMSI agrees to provide reports to the Program as specified in the
Schedule of Reports attached hereto as Exhibit A.
3. Risk Management Services. CCMSI will provide the Program with additional risk management
services not contemplated in this Agreement upon mutual agreement of the parties. The
Schedule of additional Risk Management Services to be provided is attached hereto as Exhibit B.
4. Loss Control Services. CCMSI will provide the Client loss control services upon mutual
agreement of the parties. The client shall remain fully responsible for the implementation and
operation of its own safety programs and for the detection and elimination of any unsafe
conditions or practices.
CCMSI assumes no responsibility for the detection, identification, communication, mitigation, or
elimination of any unsafe condition or practice associated with the safety program of any client.
Further, CCMSI assumes no responsibility for any injury sustained by an employee of the client.
The Schedule of Loss Control Services to be provided is attached hereto as Exhibit C.
5. Managed Care Services. CCMSI will provide the Program with managed care (comp mc™)
services upon mutual agreement of the parties. The Schedule of Managed Care Services to be
provided is attached hereto as Exhibit D.
B. PROGRAM RESPONSIBILITIES. Program agrees to:
1. Report all claims, incidents, reports or correspondence relating to potential claims in a timely
manner.
2. Reasonably cooperate fully in disposition of all claims.
3. Provide adequate funds to pay all claims and expenses in a timely manner.
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4. Respond to reasonable information requests in a timely manner.
5. Identify in writing all insurance carriers applicable to CCMSI’s claim handling responsibilities
contemplated in this Service Agreement that CCMSI will have claim or data reporting
requirements. In this regard, Client agrees to provide CCMSI with a complete copy of the
current excess or other insurance policies, including applicable endorsements and audits,
applicable to Clients insurance program and this Service Agreement. CCMSI assumes no
responsibility of any kind for not reporting an otherwise reportable claim to any carrier that
Client has failed to disclose to CCMSI and / or provide CCMSI with a copy of the applicable
insurance policy and reporting instructions relative to that carrier.
6. Pay any fees or costs charged by any carrier or prior TPA of Program for the conversion of data
associated with CCMSI handling run off claims for Program, or for the general transfer of data to
CCMSI’s operating systems.
7. Promptly pay CCMSI’s fees.
C. OPERATING EXPENSES. The Program agrees to be responsible for and pay all of its own operating
expenses other than service obligations of CCMSI. Such operating expenses shall include but not be
limited to charges for the following:
1. All costs associated with meeting State security and licensing requirements;
2. Certified Public Accountants;
3. Attorneys, other than provided for in Section B.2(d)3) and B.2.(d)4) of this Agreement;
4. Outside consultants, actuarial services or studies and State audits;
5. Independent payroll audits;
6. Allocated Claims Expenses incurred pursuant to Section B.2.(d) of this Agreement;
7. All applicable regulatory fees and taxes; and
8. Educational and/or promotional material, industry-specific loss control material, customized
forms and/or stationery, supplies, operator-assisted conference calls and extraordinary postage,
such as bulk mailing, express mail or messenger service.
9. National Council on Compensation Insurance, NCCI, charges;
10. Excess and other insurance premiums;
11. Costs associated with the development, record keeping and filing of fraud statistics and plans,
but only if required by any state or regulatory authority having jurisdiction over Program;
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12. Other operating costs as normally incurred by the Program.
D. BOOKS AND RECORDS.
1. (a) CCMSI shall maintain all books, records, applications and other forms of information relating
specifically to the Program that are necessary to the performance of CCMSI’s obligations
under this Agreement (the “Records”). The Records shall remain at all times the sole
property of the Program.
(b) The Records shall not include any manuals, forms, files and reports, documents, customer
lists, rights to solicit renewals, computer records and tapes, financial and strategic data, or
information which documents CCMSI’s processes, procedures and methods, or which CCMSI
employs to administer programs other than the Program. The items specified in this
Paragraph E.1.(b) shall at all times be and remain the sole and exclusive property of CCMSI,
and the Program shall not have any ownership, interest, right to duplicate or right to utilize
these items except for the above documentation or information that relates solely to the
Program.
2. During the term of this Agreement, CCMSI shall provide the Program with copies of the Records,
if so requested by the Program. Any costs of reproduction of the Records shall be borne by the
Program. In the event this Agreement is terminated or non-renewed, Program Records will be
turned over to the Program or to a successor administrator designated by Program.
3. CCMSI shall make the Records available for inspection by any duly authorized representative of
the Program, or any governmental or regulatory authority having jurisdiction over CCMSI or the
Program.
E. NON-SOLICITATION OF EMPLOYEES. During the term of this Agreement and for two (2) years
thereafter, the Client and CCMSI mutually agree not to recruit, solicit or hire any employee of the
other without written permission.
1. Services Following Termination of Agreement. Should this Agreement be terminated for any
condition, CCMSI will cease providing services, turn over to the Program all Program files in
CCMSI’s possession, which shall include loss control records, reports, surveys and
correspondence, underwriting surveys and premium calculations, reinsurance and excess
insurance files, all open and closed claim files, Program files, and readable form copies of all
regulatory filings. Upon the Program’s request and subject to agreement by CCMSI, CCMSI will
be paid a reasonable negotiated fee to:
(a) Provide continued administration of the open claim files;
(b) Cooperate with any successor administrator in the orderly transfer of all functions; and
(c) Provide an electronic transfer of data if such is feasible, with the cost of providing such
borne by the Client. The electronic transfer of data will be subject to a flat fee of $2,500.
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F. SERVICE FEE PAYMENTS. The Program shall pay to CCMSI a service fee as outlined in the Fee and
Payment Schedule hereto as Exhibit E.
G. RELATIONSHIP OF PARTIES. With respect to the services provided by CCMSI in this Agreement,
CCMSI is considered an independent contractor. Nothing in this Agreement shall be construed to
create a relationship of employer/employee, partners or joint ventures between the Program and
CCMSI. This Agreement is non-exclusive, and CCMSI shall have the right to perform services on
behalf of other individuals, firms, corporations, and entities.
H. SOFTWARE ACCESS. The Client may be provided with the right to use one or more CCMSI
Applications in connection with the services provided by CCMSI in this Agreement. CCMSI
Applications include iCE, MyReports, Loss Control ASAP, Loss Control Resources and iCEBAR. The
right to use CCMSI Applications is non-exclusive, limited to the term of this Agreement per
paragraph H.1., non-transferable and is solely for the internal business use of Client.
CCMSI owns and reserves all rights, title, and interest in and to the CCMSI Applications. Client has
no right to receive a copy of the object code or source code to the CCMSI Applications. Client may
not attempt to:
1. License, sell, lease or otherwise make the CCMSI Applications available to any other party.
Client will not provide any access, passwords or other information regarding the CCMSI
Applications to any third parties and/or competitors of CCMSI without the prior written consent
of CCMSI;
2. Use the CCMSI Applications in any way that violates any law, regulation or mandate, or the term
of this Agreement; or
3. Take any action that jeopardizes confidential or proprietary information held by CCMSI.
Client is responsible for any confidential or proprietary information accessed or downloaded by
Client from the CCMSI Applications, including the implementation of appropriate information
security controls surrounding such information.
Except as expressly provided in this Agreement, CCMSI Applications are provided “as-is”. CCMSI
disclaims all other warranties, express, implied, or statutory, including the implied warranties or
merchantability, satisfactory quality, title, fitness for a particular purpose, non-infringement,
compatibility, security, quiet enjoyment, or accuracy. Without limiting the foregoing, CCMSI does
not warrant that access to or use of the CCMSI Applications will be uninterrupted or error-free.
CCMSI will provide support for the CCMSI Applications in the two most recent two versions of the
Internet Explorer, Chrome, Firefox and Safari browsers.
I. MISCELLANEOUS.
1. Timing of Services. CCMSI may exercise its own reasonable judgment, within the parameters set
forth herein and in compliance with state regulations, as to the time and manner in which it
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performs the services required hereunder. Additionally, CCMSI will be held to a standard of like
administrators performing like services for customers such as Program.
2. Successors in Interest. This Agreement shall be binding upon, and inure to the benefit of, the
successors in interest and permitted assigns of the parties hereto.
3. Paragraph Headings. All paragraph headings in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.
4. Notice Provision. All notices, requests and other communications required under this
Agreement shall be in writing and delivered by hand or mailed, registered or certified, return
receipt requested, postage paid, or sent via a nationally recognized overnight courier to the
other party at the following address.
Program: Dannette Logan
HR Manager
Pitkin County
530 East Main Street, Suite 303
Aspen, CO 81611
CCMSI: Cannon Cochran Management Services, Inc.
2 E. Main St.
Danville, IL 61832
Attn: Chief Operating Officer
5. File Destruction Policy. CCMSI will maintain electronic claim files records or hard copy files
(where applicable) on all closed files on behalf of Program for a period of fifteen (15) years after
the month of closure, or for as long as necessary to protect the applicable statute of limitations,
whichever is longer. It is the sole responsibility of Program to advise CCMSI if files are not to be
destroyed per this policy.
6. Escheatment. CCMSI will monitor all outstanding checks issued on CCMSI escrow accounts for
escheatment. Information necessary for escheatment filings and funds to cover those amounts
will be provided to Client no less than 90 days prior to the applicable filing date. Client is solely
responsible for complying with all applicable abandoned property or escheat laws, making any
required payments, and filing any required reports.
7. Confidential Information. Confidential Information includes nonpublic information that is
exchanged between the Client and CCMSI, including, without limitation, information relating to
the business, financials, personnel, customer data and operating procedures. Confidential
Information includes information whether in written, electronic, or oral form created and
relating to services provided under the Agreement. All Confidential Information is proprietary.
Client and CCMSI may use the other party’s Confidential Information only for the purpose of this
Agreement and will limit its disclosure to only those persons reasonably necessary to perform
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under the Agreement. CCMSI will share nonpersonal bulk claim data with the IDS National
Database unless the Client directs otherwise.
8. Information Security. CCMSI is responsible for the protection of the confidentiality, availability,
privacy and integrity of Client information in our custody. CCMSI has implemented an
Information Security Policy that has been developed to comply with applicable federal and state
laws or regulations and industry best practices. The Information Security Policy applies to all
CCMSI personnel, including temporary employees, independent contractors and vendors with
access to CCMSI systems.
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EXHIBIT A
SCHEDULE OF REPORTS
1. Weekly Indemnity Report that indicates who is off work or on restrictions.
No other reports at this time.
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EXHIBIT B
SCHEDULE OF RISK MANAGEMENT SERVICES
None at this time.
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EXHIBIT C
SCHEDULE OF LOSS CONTROL SERVICES
None at this time.
CCMSI will provide the Client loss control services upon mutual agreement of the parties. The client shall remain fully responsible
for the implementation and operation of it s own safety programs and for the detection and elimination of any unsafe conditions or
practices.
CCMSI assumes no responsibility for the detection, identification, communication, mitigation, or elimination of any unsafe co ndition
or practice associated with the safety program of any client. Further, CCMSI assumes no responsibility for any injury sustained by
an employee of the client.
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EXHIBIT D
SCHEDULE OF comp mc™ SERVICES AND FEES
Provider Bill Re-pricing
Service Fee
Usual and Customary re-pricing $8.25 per bill
Fee Schedule state re-pricing $8.25 per bill
PPO Re-pricing
PPO re-pricing is billed at 30% of savings
Pharmacy Network Services
Pharmacy Network services are priced at 33% of savings.
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EXHIBIT E
FEE AND PAYMENT SCHEDULE
Service Agreement Term: January 1, 2019-December 31, 2019. CCMSI will manage all claims for the Life
of the Agreement for an annual fee as follows:
For all claim handling rendered by CCMSI, the parties agree the annual rate will be $15,103.92 paid in
twelve monthly increments of $1,258.66. This rate includes the annual fee of $7,391.28 for administration
of workers’ compensation claims and $7,712.64 for the administration of the liability and property claims.
In addition, there is an $85.00 per claim charge for property “voucher only” claims that will be billed
separately. As well as a $2,100.00 per year Administration Fee.
Additional Fees:
Index Bureau Fees: Billed as an allocated expense. 2 submissions per year, per claim.
State Reporting EDI: First Report of Injury FRO-$10; Subsequent reports $5 per report
Nurse case Management:
Billed as an allocated expense from vendor of clients choice.
Claims Input:
CCMSI will input losses for an additional fee of $25.00 per claim
Liability Subrogation Claims:
20% of the recovered amount
Carrier Fees:
If applicable, Client will be responsible for payment of any carrier fees associated with the transition of
claim handling responsibilities to CCMSI.
MMSEA Section 111 Reporting $25/Per Claim Hit
CCMSI in conjunction with our reporting agent will comply with MMSEA
Section 111 Reporting on behalf of (PITKIN COUNTY).
All injury claims will be queried to CMS for Medicare eligibility (no
charge).
CCMSI will collect additional mandatory data on claims where Medicare
eligibility has been verified. CCMSI along with our reporting agent will
report all claims meeting the reporting guidelines as set forth by CMS.
(one-time $25 per claim fee)
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