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2007-215Isiell al 2007-215 Resolution to Authorize Entry into Contract for Workers' Compensation Services At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County, New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on October 9`', 2007. The meeting was called to order by Joseph Ruggiero, Supervisor, and upon roll being called, the following were present: PRESENT: Supervisor Councilmembers ABSENT: Joseph Ruggiero William H. Beale Vincent F. Bettina Joseph P. Paoloni Maureen McCarthy The following Resolution was introduced by Councilwoman McCarthy and seconded by Councilman Bettina. WHEREAS, the Town of Wappinger is required by New York Law to provide Workers' Compensation Benefits to its employees; and WHEREAS, the Town Board has determined that it is in the best interest of the Town to enter into an agreement to limit the Town's exposure to Workers' Compensation claims by employees; and WHEREAS, the Town Board has determined that Public Employer Risk Management Association, Inc. (hereinafter PERMA) is a responsible workers' compensation group self- insurance program for local governments and public employers in the State of New York and is capable of providing suitable workers' compensation services for the Town; and WHEREAS, the Town has been presented with an agreement to become a member of PERMA, a copy of the agreement entitled "PUBLIC EMPLOYER RISK MANAGEMENT ASSOCIATION WORKERS' COMPENSATION PROGRAM AGREEMENT" is attached hereto and made a part hereof, marked and designated as Exhibit "1' ; and NOW, THEREFORE, BE IT RESOLVED, that the Town Board hereby accepts the terms and conditions set forth and contained in the "PUBLIC EMPLOYER RISK MANAGEMENT ASSOCIATION WORKERS' COMPENSATION PROGRAM AGREEMENT" attached hereto as Exhibit" I", and. BE IT FURTHER RESOLVED, that this acceptance shall be deemed retroactive to August 2r'd' 2007, the commencement of the term of the agreement; and BE IT FURTHER RESOLVED, that the Supervisor of the Town is hereby authorized and directed to execute the "PUBLIC EMPLOYER RISK MANAGEMENT ASSOCIATION WORKERS' COMPENSATION PROGRAM AGREEMENT", a copy of which is attached hereto as Exhibit "I", by and on behalf of the Town of Wappinger. The Supervisor is further authorized to forward the original signed contracts to PERMA. The foregoing was put to a vote which resulted as follows: 1#AW JOSEPH RUGGIERO, SUPERVISOR Voting: AYE WILLIAM H. BEALE, COUNCILMAN Voting: AYE VINCENT F. BETTINA, COUNCILMAN Voting: AYE JOSEPH P. PAOLONI, COUNCILMAN Voting: AYE MAUREEN McCARTHY, COUNCILWOMAN Voting: AYE Dated: Wappingers Falls, New York 10/9/2007 The Resolution is hereby duly declared adopted. JPTN C. MA ERSON, TOWN CLERK PUBLIC EMPLOYER RISK MANAGEMENT ASSOCIATION WORKERS' COMPENSATION PROGRAM AGREEMENT THIS AGREEMENT is entered into by and between the Public Employer Risk Management Association, Inc., hereinafter referred to as "PERMA" and the Town of Wappin2er hereinafter referred to as the "member", for the purpose of providing a risk management workers' compensation service program and statutory workers' compensation benefits for its employees. WITNESSETH: WHEREAS, the undersigned public employer desires to secure its statutory obligation to provide workers' compensation benefits through participation in a group self-insurance plan of which the undersigned will be a member; and WHEREAS, the undersigned public employer desires to become a member of PERMA, a workers' compensation group self-insurance program and risk management workers' compensation service program for local governments and other public employers and instrumentalities of the State of New York; The conditions of membership agreed upon by and between the parties are as follows: (1) Term. The initial term of this contract shall commence on 8/2/2007 and shall continue in force from said date until 8/1/2008 at 12:01 am, and shall renew automatically for successive one year terms commencing on August lst of each year, unless either party shall provide the other with written notice of its intent not to renew this Agreement at least thirty (30) days prior to August Is of the then -current one-year term of this Agreement ("Renewal Date"). Any notice of intent not to renew provided by the member less than thirty (30) days prior to the Renewal Date shall be ineffective as a notice of non -renewal under this section but shall be deemed, to the extent otherwise valid, a notice of termination under paragraph 14(c) below. I PERMA WC03 (ED. 10-02) X j During the term of this Agreement, PERMA agrees to provide the member with workers' compensation coverage as required by the Workers' Compensation Law. (2) Coverage During the term of this Agreement. PERMA agrees to provide the member with workers' compensation coverage as described in PERMA's certificate of coverage and policy document and the member agrees to pay the deposit contributions established by PERMA for such coverage. (3) Statement of Policy. As a condition of membership, the member subscribes to the following statement of policy: a) Purpose The policy of the member with respect to its exposure to workers' compensation loss shall be to minimize the financial impact upon it resulting from employee accidents covered by the New York Workers' Compensation Law. This will be accomplished by means of: 1. loss prevention and safety programs to minimize or eliminate risk of employee injury. 2. purchase of specific stop loss insurance; and, 3. investment income from reserves and operating funds for the benefit of PERMA members. b) Loss Prevention The policy of the member shall be to emphasize the reduction, modification, or elimination of conditions and practices which may cause loss. Safety to personnel and the public shall have the highest priority. The member shall be responsible to see that its operations conform to applicable safety standards. "Safety activities shall be the responsibility of each supervisor and all loss prevention activities, including safety, shall be coordinated by a safety officer who shall be designated by and responsible to the Chief Executive Officer of the member." PERMA WC03 (ED. 10-02) 2 c) Reporting of Injuries All injuries will be reported through appropriate channels to PERMA by a representative of the member so designated to PERMA. (4) Payroll Classification. An annual estimated payroll by job classification will be furnished by the member to PERMA. It is understood that this is an estimate that shall be adjustable at the end of each premium year so as to reflect the actual payroll of the member. The member agrees to pay any additional contributions as a result of this annual adjustment within thirty (30) days of notice or invoice. A return premium shall be adjusted by refund to the member within thirty (30) days of notice or invoice. PERMA reserves the right to audit payroll records. (5) Contributions . The member agrees to pay a deposit contribution which is computed by first multiplying payroll organized by classification, times the manual rate as published and amended from time to time by the New York Compensation Rating Board, times the experience modification based on member's loss experience compared with industry expected losses at the same payroll, less the stock company premium discount then in force. The product of this formula is the standard contribution. PERMA may then apply its own discount, if any, which may vary in amount and formula from year to year which will produce the annual contribution required by the member. PERMA may combine the above two discounts. The member agrees to pay such contribution, in advance unless a payment plan is approved by PERMA, for the initial coverage period, commencing on the date of this Agreement and ending on the following August 1st at 12:01 am. It is understood and agreed by the member that there may be interim rate adjustments, as required, because of increased benefit levels mandated by amendments to the New York Workers' Compensation Law or by mandated increases in Workers' Compensation Board assessments. The member agrees to execute necessary authorization forms permitting PERMA and its designee to obtain information and data required in determining the experience rating modification of the member. PERMA WC03 (ED. 10-02) 3 (5a) Large Deductible Program. For qualified. members who elect a large deductible program, the required contributions shall be modified to meet the terms and conditions of the specific program which shall be enumerated in a separate contract for services with member. (6) Entry Fee. Upon receipt of an invoice for such, the member shall pay PERMA an initial entry fee of 3% of the member's deposit contribution for membership. The member may participate in any other service program which may be developed by PERMA without payment of any other fee. If a member terminates its membership and, after a period of at least one year, desires to return as a member, PERMA may levy a new entry fee. (7) PERMA Advance Discount. The Board of Directors will annually determine the amount of discount to be offered by PERMA. (8) Excess Insurance. PERMA shall place and maintain excess insurance coverage with a qualified underwriter for specific loss limits stop loss insurance. (9) Limit of Liability. The member shall have no liability to PERMA, to other members of PERMA, to any claimant against PERMA, or to any claimant against another member of PERMA, except for payment of contributions under this Agreement. The member specifically, but without limitation, disclaims any liability to pay workers' compensation claims which PERMA is obligated to pay on behalf of any other past, present or future member of PERMA. The parties agree that, for the payment of any claims against PERMA or the performance of any obligation by PERMA hereunder, resort shall be had solely to the assets and property of PERMA, and no member, officer or director of PERMA shall be personally liable therefore. (10) Safety Program. PERMA or its designee will provide safety services to the member, designed to assist it in following a plan of loss control which may result in reduced losses. The member agrees that it will cooperate in instituting any and all reasonable safety regulations that may be recommended by PERMA or its designee for the purposes of eliminating or minimizing hazards that would contribute to injuries. PERMA WC03 (ED. 10-02) q (11) Claims. PERMA, through its designee, agrees to administer, service, settle, and pay any and all workers' compensation claims, as are defined in a certificate of coverage issued to the member; after notice of injury has been given to prepare all required forms; and to provide a defense if required and contact injured employees as appropriate; and attend necessary compensation hearings. PERMA or its designee will retain and supervise legal counsel on behalf of and at the expense of PERMA necessary for the prosecution or defense of any litigation. The member agrees to fully cooperate by supplying any information needed or helpful to defend such action. PERMA agrees to provide the member each month with a computer printout showing a statement of claim, claims status and activities report. (12) Bylaws, Rules and Regulations of PERMA. The member agrees to abide by and is bound by the rules, regulations and bylaws which. are adopted by the Board of Directors or P embers of PERMA. The member further agrees to abide by the terms and conditions of the policy document which should be provided to the member annually upon renewal. (13) Termination of Coverage and Membership. This Agreement, including the member's workers' compensation coverage and membership in the program, may be terminated other than at its Renewal Date as follows: a) By PERMA for the member's failure or refusal to make any payment set forth herein, which termination shall be effective ten (10) days following written notice by PERMA to the member, unless the member shall have made such payment prior to the expiration of said 10 days; b) By PERMA for other cause, including but not limited to the member's failure to comply with the terms of this Agreement, the terms of the member's workers' compensation and/or employer's liability coverage agreement with PERMA, or the rules, regulations or by- laws of DERMA, on sixty (60) days' advance written notice to the member; PERMA WC03 (ED. 10-02) 5 c) By the member upon advance written notice received by PERMA at least thirty (30) days prior to renewal effective date. In the event written notice is received less than thirty (30) day prior to the renewal effective date, the procedures as outlined in paragraph d) will be followed. d) In the event this Agreement is terminated pursuant to subparagraph (a) or (c) of this paragraph, the member shall pay any and all contribution owed for the period preceding termination, computed using the New York Compensation Insurance Rating Board Short Rate Cancellation Table, including the procedure accompanying such Table. Said final contribution shall not be less than the minimum contribution set forth in the member's Workers' Compensation/Employer's Liability Agreement. In the event this Agreement is otherwise terminated, the member shall pay any and all contribution covered for the period preceding termination computed pro rata, based upon the time this Agreement is in force, in which case, the member's final contribution shall not be less than the pro rata share of the minimum contribution set forth in the member's Workers' Compensation/Employer's Liability Coverage Agreement. (14) Notice to the Parties. Notice by either party, as the case may be, shall be effected by certified mail to PERMA at its address, 9 Cornell Road, Latham, New York 12212, and to the member at its address, 20 Middlebush Road, PO Box 324Wappingers Falls, New York 12590, except that notice under Section 12(c) of this Agreement is effective upon receipt by PERMA. (15) Notwithstanding any other provision of this Agreement, the Member does not by this Agreement transfer to PERMA and PERMA does not assume any reporting or records retention obligations imposed upon the Member by the New York State Workers' Compensation Law. PERMA WC03 (ED. 10-02) Title: ATTEST: In PERMA WC03 (ED. 10-02) Town of Wappinj!er PUBLIC EMPLOYER RISK MANAGEMENT ASSOCIATION Joseph Braun Chairman, PERMA Board of Directors Brent A. Wilkes President