HomeMy WebLinkAboutContract 44004-A1 (2)CITY SECRETARY CONTRACT NO `�LIWHO
FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 44004
PROFESSIONAL SERVICES AGREEMENT FOR WORKERS' COMPENSATION CLAIMS
ADMINISTRATION AND RELATED SERVICES
STATE OF TEXAS §
COUNTY OF I ARRANT §
This First Amendment to City Secretary Contract No. 44004 — Professional Services Agreement for
Workers' Compensation Claims Administration and Related Services ("First Amendment") is made and
entered into this day of November, 2014, by and between the City of Fort Worth ("CITY"), a
home -rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant
City Manager, and CorVel Enterprise Comp, Inc., a Delaware corporation ("CORVEL"), acting by and through its
Senior Vice President, who is duly authorized to act on its behalf. CITY and CORVEL may be referred to herein
individually as a "party" and collectively as the "parties."
WITNESSETH:
WHEREAS, the parties entered into an agreement for CORVEL to provide claims administration
and related services for the CITY's workers' compensation program beginning January 1, 2013, the same
being City Secretary Contract No. 44004 (the "Agreement"), and
WHEREAS, CITY and CORVEL wish to amend the Agreement to add subrogation services
associated with the CITY's workers compensation program beginning October 1, 2014.
NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein, CITY and CORVEL hereby agree as follows:
1. That Fort Worth City Secretary Contract No. 44004 is hereby amended to revise Section 1.3,
"Claims Administration Services" to add a new Section 1.3.8 to read as follows:
1.3.8 Subrogation Services — CORVEL shall provide workers' compensation subrogation services for every claim
in accordance with terms outlined below.
1.3.8.1 Statutory Applicability — The following Texas statutes shall govern all actions by CORVEL when
pursuing subrogation interests on behalf of the CITY: (1) Labor Code, Chapter 417, "Third Party
Liability"; and (2) Local Government Code, Chapter 142, Section 142.008 "Salary Continuation
Payments; Subrogation".
1.3.8.2 Initial Evaluation for Subrogation Potential — Upon receipt of each claim, the claims adjuster shall
review the potential for subrogation. If subrogation potential exists, the adjuster shall notify
CorVel's subrogation team within one (1) business day of the completion of the adjuster's review.
1.3.8.3 Subrogation Investigation Procedures -- CORVEL's subrogation specialist team shall conduct a
thorough investigation that includes establishing liability, collecting, evaluating, and preserving the
evidence.
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OFFUCIAL RECORD
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1.3.8.4 Subrogation Evidence --- Evidence may include statements, photographs, videos receipts, logs,
maintenance records, tangible evidence (stored when feasible) and other such similar evidence.
1.3.8.5 Reserves — Initial subrogation reserves for each claim shall be established by the claims adjuster
and subrogation team after completion of the initial investigation. Reserves shall then be reviewed
by the claims adjuster or claims supervisor at each claim review and adjusted as necessary. The
rationale for setting the reserve level shall be documented in the claims adjuster s plan of action
review.
1.3.8.6 Statute of Limitations -- Applicable statutes of limitations for each potential source of subrogation
recovery shall be noted in the claims adjuster s plan of action. The City Human Resources
Manager for Occupational Health & Safety / Workers Compensation shall be notified at least sixty
(60) days prior to expiration of the statute of limitations on any applicable claim
1.3.8.7 Notification to Parties -- Once identified, the potentially responsible parties for each identified
subrogation source shall be placed on notice of lien by the subrogation team, with such to include
the current lien amount and other pertinent information and with copies of such notice to be
provided by the subrogation team to the injured CITY employee, CITY Human Resources Manager
for Occupational Health & Safety / Workers' Compensation, and the court.
1.3.8.8 Claimant Attorneys -- Notices of lien shall be sent to claimant's attorneys by the subrogation team.
The subrogation team will work with claimant's attorneys to establish the claim, settle the lien or
obtain favorable judgment to maximize overall recovery from each subrogation source.
Unrepresented claimants shall be sent a copy of notice of lien that is sent to third party carriers so
the claimant is aware of the lien. If necessary, the claimant shall be sent a release by the
subrogation unit to sign from the third party carrier.
1.3.8.9 Attorney Representation — Upon request to and approval by the City's Human Resources Manager
for Occupational Health & Safety / Workers' Compensation, CorVel shall arrange for highly
qualified attorney representation to represent CITY's interests and shall assist CITY personnel in
ensuring that any contracts required between the CITY and the outside attorney are timely and fully
executed Such outside attorney representation shall be billed to the specific claim file as a legal
expense
1.3.8.10 Recoveries -- Recovery of all claims costs shall be aggressively pursued with the intent of
obtaining recovery as soon as possible. CORVEL shall notify the CITY Human Resources
Manager for Occupational Health & Safety / Workers Compensation of any and all recoveries, and
shall request and receive prior approval from the CITY Human Resources Manager for
Occupational Health & Safety / Workers' Compensation for any waiver or reduction of any lien, or
of any settlement offer. All recoveries shall be made payable to "City of Fort Worth, Texas", and
the recovery shall be fully documented in the CorVel CareMC Claims Management System.
2. That Fort Worth City Secretary Contract No. 44004 is further amended to revise Section 5.0,
"Payment for Services' to add a new Section 5.2.4 to read as follows:
5.2.4 As full and complete compensation for subrogation services provided under Section 1.3.8,
CITY shall pay CORVEL twenty-five percent (25%) of each net subrogation recovery that
the CITY actually receives as a result of CORVEL's efforts, The fee paid to CORVEL shall
be noted and charged to the associated claim as an allocated loss adjustment expense.
The parties acknowledge and agree that, in the event the total payments to CORVEL
exceed Forty -Thousand Dollars during the initial term or any Renewal Term, approval from
the Fort Worth City Council shall be required.
3. CORVEL shall begin providing subrogation services under Section 1.3.8 on October 1, 2014 and
shall continue to provide such services throughout the remainder of the initial term of Fort Worth City
Secretary Contract No. 44004 and any Renewals Terms thereof.
First Amendment of CSC 44004 Page 2 of 4
4, That all other terms and conditions of Fort Worth City Secretary Contract No. 44004 that are not
specifically amended herein shall remain in full force and effect throughout the term of the Agreement and
any subsequent renewals.
[Signature page to follow]
First Amendment of CSC 44004 Page 3 of 4
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment, this _. -�" ?sday of
October, 2014
CITY OF FORT WORTH:
B
y
Susan Alanis, Assistant City Manager
Approved as to Form and Legality:
By7M4((lie Ic
Assistant pity Attorney
Contract Authorization: M&C C-25912 (original
contract)
Date Approved: October 9, 2012
Attest:
By:
Mary J Kayserny Sthi-etary
First Amendment of CSC 44004
CoRvgL ENTERPRISE COMP, INC.:
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Bennie Stoner, Senior Vice President
OFFICIAL RECORD
CITY SECRETARY
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