HomeMy WebLinkAboutCC Resolution 10352 (Claims Administration Services)RESOLUTION NO. 10352
A RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT WITH
ACCLAMATION INSURANCE MANAGEMENT SERVICES FOR
LIABILITY CLAIMS ADMINISTRATION SERVICES (2/01/99 - 6/30/01)
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:
The MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San
Rafael, an Agreement with Acclamation Insurance Management Services for Liability Claims
Administration Services from February 1, 1999 to June 30, 2001.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the
City Council of said City on Tuesday, the 19th day of January, 1999, by the following vote, to
wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro
NOES: COUNCIL.MEMBERS: None
ABSENT: COUNCILMEMBERS: None
JEA �'M. LEONCIN ,City Clerk
AGREEMENT BETWEEN CITY OF SAN RAFAEL AND
ACCLAMATION INSURANCE MANAGEMENT SERVICES,
INC., FOR THE ADMINISTRATION OF LIABILITY CLAIMS
This Agreement is made and entered into this 1st day of February, 1999, by and between
the CITY OF SAN RAFAEL (hereinafter "CITY"), and ACCLAMATION MANAGEMENT
SERVICES, INC. (hereinafter "ADMINISTRATOR').
RECITALS
WHEREAS, ADMINISTRATOR is licensed in California to provide management and
independent adjusting services for liability claims (State license #2772984); and
WHEREAS, ADMINISTRATOR is a corporation duly organized under the laws of the
State of California with its home office located at 2000 Powell Street, Suite 1000, Emeryville, CA
94608; Mr. Leonard J. Russo, Chief Executive Officer, and Mr. Dominic Russo, President and
Chief Operating Officer, and
WHEREAS, CITY is a municipal corporation duly organized and existing in the Sate of
California, County of Marin; and
WHEREAS, CITY is self-insured for all liability claims asserted against it by third parties;
and
WHEREAS, ADMINISTRATOR has the training, knowledge and experience to provide,
and has provided third -party liability claims administration and independent adjusting services to
both public entities and private corporations since 1978.
AGREEMENT
NOW, THEREFORE, the parties hereby agree as follows:
PROJECT COORDINATION.
A. CITY. The City Manager, or designee, shall be the representative of the CITY for
all purposes under this Agreement. The Risk Manager is hereby designated the PROJECT
MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the
progress and execution of this Agreement.
B. ADMINISTRATOR. ADMINISTRATOR shall assign a single PROJECT
DIRECTOR to have overall responsibility for the progress and execution of this Agreement for
ADMINISTRATOR. Mr. Dominic Russo is hereby designated as the PROJECT DIRECTOR for
ADMINISTRATOR. Should circumstances or conditions subsequent to the execution of this
Agreement require a substitute PROJECT DIRECTOR for any reason, the ADMINISTRATOR
shall notify the CITY within ten (10) business days of the substitution.
1
2. DUTIES OF ADMINISTRATOR.
ADMINISTRATOR shall perform the duties and/or provide the services as outlined in
Exhibit "A", attached and incorporated herein.
3. DUTIES OF CITY.
CITY shall perform the duties as outlined in Exhibit "B", attached and incorporated herein.
4. COMPENSATION.
For the full performance of the services described herein by ADMINISTRATOR, CITY
shall pay ADMINISTRATOR as outlined in Exhibit "C", attached and incorporated herein.
Payment will be made monthly upon receipt by PROJECT MANAGER, of itemized
invoices submitted by ADMINISTRATOR.
5. TERM OF AGREEMENT.
The term of this Agreement shall be for two years and 5 months commencing on February
1, 1999 and ending on June 30, 2001.
For the purpose of maintaining the continuity of claims administration for CITY upon the
end of the term of this Agreement, or upon termination pursuant to paragraph 6 herein,
ADMINISTRATOR may continue to perform services as outlined in Exhibit "A" on a month-to-
month basis, at the rates then in effect.
6. PERFORMANCE REVIEW.
In January of 2000, parties shall meet to review the Administrator's performance under this
Agreement, and to negotiate any adjustments or changes to the Agreement that such review might
indicate. Nothing herein shall obligate either party to agree to any modification of this Agreement,
nor prevent either party from discussing at any time with other party, the terms and conditions of
this Agreement.
7. TERMINATION.
A. Discretionary. Either party may terminate this Agreement without cause upon
sixty (60) days written notice mailed or personally delivered to the other party.
B. Cause. Either party may terminate this Agreement for cause upon thirty (30) days
written notice mailed or personally delivered to the other party, and the notified party's failure to
cure or correct the cause of the termination notice, to the reasonable satisfaction of the party giving
such notice, within twenty (20) days of the receipt of said notice.
C. Effect of Termination. Upon receipt of notice of termination, neither party shall
incur additional obligations under any provision of this Agreement without the prior written
consent of the other.
N
8. PROJECT DOCUMENTS: OWNERSHIP.
A. Ownership. The written documents and materials prepared by and provided the
ADMINISTRATOR in connection with the performance of its duties under this Agreement, shall
be the property of CITY. CITY may use said property for any purpose, including projects not
contemplated by this Agreement.
B. Return of Documents. Upon termination of this agreement for any reason, any and
all CITY documents or materials provided to ADMINISTRATOR and any and all of
ADMINISTRATOR's documents and materials prepared for or relating to the performance of its
duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than
thirty (30) days after termination. Cost of delivery and of duplication/photocopy of said
documents, as required by law, shall be borne by City.
9. INSPECTION AND AUDIT.
Upon reasonable notice, ADMINISTRATOR shall make available to CITY, or its agent,
for inspection and audit, all documents and materials maintained by ADMINISTRATOR in
connection with its performance of its duties and its provision of services under this Agreement.
ADMINISTRATOR shall fully cooperate with CITY or its agent in any such audit or inspection.
10. ASSIGNABILITY.
The parties agree that they shall not assign or transfer any interest in this Agreement nor the
performance of any of their respective obligations hereunder, without the prior written consent of
the other party, and any attempt to so assign this Agreement or any rights, duties or obligations
arising hereunder shall be void and of no effect.
11. INSURANCE.
A. During the term of this Agreement, ADMIN STRATOR shall maintain, at no
expense to CITY, the following insurance policies:
1. A comprehensive general liability insurance policy in the minimum amount
of one million ($1,000,000) dollars per occurrence for death, bodily injury, personal injury, or
property damage;
2. An automobile liability (owned, non-owned, and hired vehicles) insurance
policy in the minimum amount of one million ($1,000,000) dollars per occurrence;
3. If any licensed professional performs any of the services required to be
performed under this Agreement, a professional liability insurance policy in the minimum amount
of one million ($1,000,000) dollars to cover any claims arising out of the ADMINISTRATOR's
performance of services under this Agreement.
B. The insurance coverage required of the ADMINISTRATOR by section 10. A.,
shall also meet the following requirements:
1. The insurance shall be primary with respect to any insurance or coverage
maintained by CITY and shall not call upon CITY's insurance or coverage for any contribution;
2. Except for professional liability insurance, the insurance policies shall be
endorsed for contractual liability and personal injury;
3. Except for professional liability insurance, the insurance policies shall be
specifically endorsed to include the CITY, its officers, agents, and employees as additionally
named insureds under the policies;
4. ADMINISTRATOR shall provide to PROJECT MANAGER, or City
Attorney (a) Certificates of Insurance evidencing the insurance coverage required herein, and (b)
specific endorsements naming CITY, its officers, agents and employees, as additional insureds
under the policies;
5. The insurance policies shall provide that the insurance carver shall not
cancel, terminate or otherwise modify the terms and conditions of said insurance policies except
upon thirty (30) days written notice to CITY's PROJECT MANAGER;
6. If the insurance is written on a Claims Made Form, then, following
termination of this Agreement, said insurance coverage shall survive for a period of not less than
five years;
7. The insurance policies shall provide for a retroactive date of placement
coinciding with the effective date of this Agreement;
8. The insurance shall be approved as to form and sufficiency by PROJECT
MANAGER and the City Attorney.
C. If it employs any person, ADMINISTRATOR shall maintain worker's
compensation and employer's liability insurance, as required by the State Labor Code and other
applicable laws and regulations, and as necessary to protect both ADMINISTRATOR and CITY
against all liability for injuries to ADMINISTRATOR's officers and employees.
D. Any deductibles or self-insured retentions in ADMINISTRATOR's insurance
policies must be declared to and approved by the PROJECT MANAGER and the City Attorney.
At CITY's option, the deductibles or self-insured retentions with respect to CITY shall be reduced
or eliminated to CITY's satisfaction, or ADMINISTRATOR shall procure a bond guaranteeing
payment of losses and related investigations, claims administration, attorney fees and defense
expenses.
12. INDEMNIFICATION.
ADMINISTRATOR shall indemnify, release, defend and hold harmless CITY, its
officers, and employees, against any claim, demand, suit, judgment, loss, liability or expense of any
kind, including attorney's fees, arising out of or resulting in any way from any acts or omissions,
intentional or negligent, of ADMINISTRATOR or ADMINISTRATOR's officers, agents and
employees in the performance of their duties and obligations under this Agreement.
13. NONDISCRUVIINATION.
ADMINISTRATOR shall not discriminate, in any way, against any person on the basis of
age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to
the performance of its duties and obligations under this Agreement.
4
14. COMPLIANCE WITH ALL LAWS.
ADMINISTRATOR shall observe and comply with all applicable federal, state and local
laws, ordinances, codes and regulations, in the performance of its duties and obligations under this
Agreement. ADMINISTRATOR shall perform all services under this Agreement in accordance
with these laws, ordinances, codes and regulations. ADMINISTRATOR shall release, defend,
indemnify and hold harmless CITY, its officers, agents and employees from any and all damages,
liabilities, penalties, fines and all other consequences from any noncompliance or violation of any
laws, ordinances, codes or regulations.
15. NO THIRD PARTY BENEFICIARIES.
CITY and ADMINISTRATOR do not intend, by any provision of this Agreement, to
create in any third party, any benefit or right owed by one party, under the terms and conditions of
this Agreement, to the other party.
16. NOTICES.
All notices and other communications required or permitted to be given under this
Agreement, including any notice of change of address, shall be in writing and given by personal
delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the
parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or
if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as
follows:
TO CITY: Ms. Sharon Andrus
Risk Manager/Project Manager
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael, CA 94915-1560
TO ADMINISTRATOR: Mr. Dominic Russo
President/Project Director
Acclamation Insurance Management Services (AIMS)
2000 Powell St., #1000
Emeryville, CA 94608
17. INDEPENDENT CONTRACTOR.
For the purposes, and for the duration, of this Agreement, ADMINISTRATOR, its
officers, agents and employees shall act in the capacity of an Independent Contractor, and not as
employees of the CITY. ADMINISTRATOR and CITY expressly intend and agree that the
status of ADMINISTRATOR, its officers, agents and employees be that of an Independent
Contractor and not that of an employee of CITY.
18. ENTIRE AGREEMENT -- AMENDMENTS,.
A. The terms and conditions of this Agreement, all exhibits attached, and all
documents expressly incorporated by reference, represent the entire Agreement of the parties with
respect to the subject matter of this Agreement.
B. This written Agreement shall supersede any and all prior agreements, oral or
written, regarding the subject matter between the ADMINISTRATOR and the CITY.
C. No other agreement, promise or statement, written or oral, relating to the subject
matter of this Agreement, shall be valid or binding, except by way of a written amendment to this
Agreement.
D. The terms and conditions of this Agreement shall not be altered or modified except
by a written amendment to this Agreement signed by the ADMINISTRATOR and the CITY.
E. If any conflicts arise between the terms and conditions of this Agreement, and the
terms and conditions of the attached exhibits or the documents expressly incorporated by reference,
the terms and conditions of this Agreement shall control.
19. SET-OFF AGAINST DEBTS.
ADMINISTRATOR agrees that CITY may deduct from any payment due to
ADMINISTRATOR under this Agreement, any moneys which ADMINISTRATOR owes CITY
under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses,
assessments, unpaid checks or other amounts.
20. WAIVERS.
The waiver by either party of any breach or violation of any term, covenant or condition of
this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any
other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or
violation of the same or other term, covenant, condition, ordinance, law or regulation. The
subsequent acceptance by either party of any fee, performance, or other consideration which may
become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding
breach or violation by the other party of any term, condition, covenant of this Agreement or any
applicable law, ordinance or regulation.
21. COSTS AND ATTORNEY FEES.
The prevailing party in any action brought to enforce the terms and conditions of this
Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney fees expended in connection with such action.
22. CITY BUSINESS LICENSE / OTHER TAXES.
ADMINISTRATOR shall obtain and maintain during the duration of this Agreement, a
CITY business license as required by the San Rafael Municipal Code. ADMINISTRATOR shall
pay any and all state and federal taxes and any other applicable taxes. ADMINISTRATOR's
taxpayer identification number is 94-3105085 , and ADMINISTRATOR certifies under
penalty of perjury that said taxpayer identification number is correct.
23. APPLICABLE LAW.
The laws of the State of California shall govern this Agreement.
0
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month
and year first above written.
CITY O AN 70
i
ALAER7 J. BOR ayor
ATTEST:
jtqt. LEON IM,City Clerk
APPROVED S RM:
G'ARY T. RAG I, City �c mey
ADMINISTRATOR--
By:
Name: —D bl,t i li i` I?u s; d
Title:
EXHIBIT "A"
DUTIES AND SERVICES OF ADMINISTRATOR
A. Claims Administration:
ADMINISTRATOR shall perform the following duties and/or provide the following
services in a competent and professional manner, compatible and consistent with the standards of
ADMINISTRATOR'S profession, and shall use reasonable care and due diligence in performing
said duties and/or services:
1. Assist CITY in the overall management of its liability claims administration and
loss control program;
2. Provide claims administration services to CITY, including but not limited to:
a) Review all new verified claims submitted to ADMINISTRATOR, create
file for each claim, input appropriate claim information into the computer data base, and contact all
claimants, within ten (10) working days of the initial receipt of claim.
b) Initiate prompt investigations of designated claims, and, upon request of
CITY, initiate investigations of incidents that might develop into claims.
C) Attempt to secure the confidence and cooperation of claimants and their
attorneys.
d) Set reserves on each new claim within ten (10) working days of initial
receipt of claim.
e) Provide within ten (10) working days to CITY a written report regarding
designated claims; these reports shall include 1) issues of fact, 2) liability, 3) possible defenses, 4)
damages, 5) recommendations for action, including settlement, rejection and defense, and provide a
written report within seventy-two (72) hours on all serious or catastrophic occurrences with large
potential liability.
fl In consultation with City Attorney, retain defense counsel to defend claims
proceeding into litigation, and obtain a litigation budget from defense counsel for all litigated
claims.
g) Where possible, and subject to the approval by CITY of settlement
authority, attempt to negotiate with claimants and/or their attorneys, settlement of claims at the
earliest possible stage of the claims process.
h) In accordance with its established guidelines, report appropriate claims to
the excess insurer or excess liability pool in a timely manner.
i) Subject to approval of CITY, attempt to obtain open extensions of time,
where appropriate, in order to more efficiently, economically and expeditiously settle claims and
actions.
I
j) Obtain release of all claims from claimants receiving settlements from
CITY through ADMINISTRATOR
k) Receive, review and approve all expense billings, including attorney fees,
related to pending claims or actions, and obtain any additional documentation as needed prior to
approval.
1) Upon request of CITY, attend bi-monthly meetings of CITY's loss
committee, any settlement conferences or other hearings, and any meetings of the City Council
regarding liability claims or actions.
m) Provide CITY a monthly computerized loss run of open and closed cases,
and such other non -customized reports as are requested, to include claim summary by year, claim
cost detail, loss history analysis detail, exposure analysis report, and final payment on closed claims
report.
n) Provide a "Windows" based application for computer data and access, no
later than 12/31/99.
o) Provide City with 24-hour on-line access to claims data base, and on-line
reporting capability.
3. Provide processing of small property damage claims as follows:
a) Receive and acknowledge claim, open file and input into computer.
b) Review, evaluate and, if necessary, adjust claim, and obtain settlement
authority.
C) Obtain release and issue check.
For purposes of this subsection, "small property damage claim" means a claim of
$2,000.00 or less, which involves no claim of personal injury or other damages.
B. Administrator's Staffing:
CITY's claims will be managed and reviewed by Don Draughn, Administrator's Branch
Manager in Santa Rosa.
Investigation of CITY's claims will be handled by Mike Churchich.
C. Training Services:
ADNIINISTRATOR shall provide the following training services:
1. Specialized training workshops (eg. Principles of liability, sexual harassment in
workplace) up to three (3) times per year.
2. Claims procedures training.
3. Prepare liability claims processing information materials.
9
C. Defense Costs. Attornevs Fees. and Settlement Authoritv:
1. ADNHNISTRATOR shall obtain settlement authority from the CITY or, in the
event of an exposure piercing the CITY's self-insured retention, jointly from the CITY and its
excess insurer or excess liability pool.
2. Subject to CITY approval, the ADNHNISTRATOR may incur on behalf of the
CITY defense costs including, but not limited to attorney fees, court costs, charges for court
reporters, experts, technical analyses and reviews, medical examinations, and related items as are
necessary or appropriate in the judgment of ADMINISTRATOR or defense counsel for the proper
preparation and defense of any case.
3. ADNHNISTRATOR is expressly authorized to issue checks for such costs, and for
settlements and judgments utilizing a designated Trust Account which is funded and maintained by
the CITY.
10
EXHIBIT `B"
DUTIES OF CITY:
A. CITY shall be responsible for the timely payment to ADMINISTRATOR for the services
provided to CITY under this Agreement, pursuant to Section 3.
B. Processine of Liabilitv Claims:
CITY shall perform the following in conjunction with the claims process:
1. Forward all verified claims to ADMINISTRATOR within five (5) working days of
receipt.
2. Obtain and forward to ADMINISTRATOR a preliminary departmental report
concerning the circumstances of all verified claims within five (5) working days after receipt of
claim.
3. Regarding incidents that might develop into claims, CITY shall be responsible to
notify and to provide ADMINISTRATOR such incident reports as are available, and to request
ADMINISTRATOR to perform such precautionary investigation and report as may be
appropriate.
4. CITY shall approve all legal forms used by ADMINISTRATOR in the claims
process, pursuant to the California Government Tort Claims Act.
C. CITY shall provide to ADMINISTRATOR all available information, staff, records or
other materials necessary to the proper preparation and defense of any claim or action.
D. CITY shall be responsible to notify ADMINISTRATOR to cease any claim -management
activity or service with regard to any particular claim and CITY shall be responsible for payment
for such activities or services until such notice is given, in the manner provided in Section 15. of
this Agreement.
E. CITY shall establish and maintain a Trust Account for the payment of all costs, fees, and
settlements of liability claims. Detailed procedures for payments and deposits shall be arranged
between ADMINISTRATOR and CITY's Management Services Department.
11
EXHIBIT "C"
COMPENSATION:
CITY shall pay to ADMINISTRATOR for services rendered under this agreement,
according to the following schedule:
A. All activities related to the handling of specific claims and to the providing of
consulting services will be billed on a Time & Expense basis. The rates applicable are as follows:
1. Composite hourly rate
(includes all related secretarial, tel/fax,
office, photocopy services)
2. Photos
3. Transportation
4. Video/Audio cassettes
5. Specialized training workshops (up to 3x/yr.)
6. Train City personnel in liability claims process
7. Claims Procedure Information "Manual"
8. Computer fees (except "custom" reports)
$63/hr.
$2.00/ea. (Pass t1ra#i egomm)
40¢/mile (Pass t eqoam)
at cost (ice U= rfi OPTM)
included
included
included
included
9. Computer "custom" report at quoted cost
B. Total fees and charges charged to CITY by ADMINISTRATOR shall not exceed
the following: except for pass through expenses to include photographs, mileage, cassettes
and the cost of public reports.
1. First year (2/1/99 - 1/31/00) $57,000.00
2. Second year (2/1/00 - 1/31/01) $59,000.00
3. Last five months (2/1/01 - 6/30/01) $24,585.00
C. The ADMINISTRATOR shall submit statements to the PROJECT MANAGER on
a monthly basis showing an itemized breakdown by claim. Billings are payable within thirty (30)
days of presentation.
(12/03/99)
12