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HomeMy WebLinkAboutCC Resolution 7751 (Compensation Claims Administrator)RESOLUTION NO. 7751 A RESOLUTION AUTHORIZING THE SIGNING OF A CONTRACT, LEASE OR AGREEMENT 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, a contract, lease or agreement with SELF INSDRERS SERVICE TO FUNCTION AS THE CITY'S WORKERS' COMPENSATION CLAIMS ADMINISTRATOR FROM JULY 1, 1933 THROUGH JUNE 30, 1989 a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby , certify that the foregoing resolution was duly and regularly intro- duced and adopted at a REGULAR meeting of the City Council of said City held on MONDAY the 20th day of JUNE , 19 88, by the following rote, to wit: AYES: COUNCILME`.SBERS:Boro, Breiner, Frugoli, Thayer & Mayor Mulryan NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEISBERS:None JEA ELEONCINI, City Clerk 7 �6r 011rAt i, , 11 SELF INS.UREIZ� SERVICE A ROWNS BURDICK HUNTER CORP SELF INSURERS SERVICE. INC 2620 AUGUSTINE DR'VE SANTA CLARA CALIFORNIA 95054 408 • 727 • 9515 CLAIM SERVICE AGREEMENT This Agreement entered into this first day of July, 1988, by and between City of San Rafael (hereafter called the Client) and Self - Insurers Service, Inc. (S.I.S.) (hereafter called the Service Agent), for the administration of Workers' Compensation Claims in the State of California. SECTION I: Service Agent The Service Agent shall provide services including, but not limited to the following and all services set forth in the Proposal for Claims Management Services dated June 6, 1988 to the Client. 1. Investigate, adjust and otherwise administer all of the above referenced claims during the period of this contract. 2. Determine the compensability, if any, of the settlement after client approval thereof and pay all claims, with funds provided by the Client. 3. Prepare and file all claim reports in accordance with established procedures and State guidelines. 4. Maintain a separate claim file on each reported claim. 5. Provide computerized monthly loss reports disclosing pertinent claims data as well as a copy of each check issued. 6. Coordinate all litigation activity with selected outside legal counsel. 7. Establish appropriate reserves for each file. 8. Advise the Client of claims which may penetrate the self- insured retention and/or coverages provided by the excess insurance company. 9. Keep the Client informed of major claim changes. 10. Develop a detailed client procedures guide. 11. Participate in the development and presentation of in-house training programs. SECTION II: Client The Client agrees to: 1. Provide adequate funds from which to pay all claims and allocated expenses, and the timely replenishment of same. 2. Provide up-to-date information on all excess insurance. 3. Cooperate fully in the disposition of all claims. 4. Establish a settlement authority of zero per claim. 5. Report on a timely basis all claims, incidents, claim reports and all other claim correspondence. 6. Continue to utilize all claims and allocated expenses. 7. Promptly pay the Service Agent's fee. SECTION III: General Conditions (1) Client agrees to hold harmless, indemnify including attorneys' fees, and defend Service Agent, its directors, officers, employees, parents, subsidiaries and affiliates from and against any and all claims, losses, liability, costs and damages incurred by Service Agent, and arising from any negligent or intentional act or omission of the Client, any of its directors, officers and employees made in connection with client's activities relative to this agreement. (2) Service Agent agrees to hold harmless, indemnify, including attorneys' fees, and defend Client, its officers, agents and employees from and against any and all claims, loss, liability costs and damages incurred by Client arising from any negligent or intentional act or omission of Service Agent, any of its directors, officers, employees, parents, subsidiaries or affiliates, arising from Service Agent's work performed under this agreement. (3) The Service Agent and Client agree to submit any claims arising under this contract to binding arbitration pursuant to the current provisions of the California Code of Civil Procedures or successor statutes. (4) The Service Agent shall provide the Client with evidence of current Errors and Omissions insurance coverage of no less than one million dollars. SECTION IV: Fees The Client agrees to pay the Service Agent a service fee of $50,000 payable monthly, in the amount of $4,166.66 beginning July 1, 1988 through June 30, 1989. - 2 - In addition to the above service fee, and subject to the Client's prior approval, the Client agrees to pay all Allocated Expenses as defined below: Allocated Loss Expenses means any cost or expense we incur on your behalf as a result of our engaging the service of firms or persons outside our organization for work in connection with the investigation, adjustment, settlement or defense of a Claim. Allocated Loss Expenses includes, but is not limited to the following: subrogation; rehabilitation; automobile or other physical damage appraisal; all court costs, fees and expenses; fees for service of process; fees to attorney; the cost of services of undercover operations and detectives; fees of independent adjusters or attorneys for investigation or adjustment of Claims in areas removed from reasonable access to our salaried employees; the cost of employing experts for the purpose of preparing maps, photographs, diagrams, and chemical or physical analysis, or for expert advice or opinion; the cost of obtaining copies of any public records; and the costs of depositions and court reporters or recorded statement. SECTION V: Cancellation This Agreement may be cancelled by either the Client or the Service Agent, by giving the other, in writing, notice of his intention to cancel this Agreement, thirty (30) days prior to the actual date of cancellation. Upon cancellation, the Service Agent will not be required to provide any further services to the Client. Service Agent may also cancel immediately for non-payment of service fee. In the event of termination of this Agreement by the Client for any reason whatsoever, the Client shall also designate, in writing, one of the following options: Option I: Require the Service Agent to return all open/pending or closed files to Client on the effective date of the termination. Cooperate fully with Client to ensure the orderly transition to a succeeding administrator. Option II: Require the Service Agent to continue to provide all services as previously outlined in this Agreement, at a fee to be negotiated between the Client and the Service Agent. - 3 - IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on their behalf by the undersigned duly authorized persons. Attest: CITY OF SAN RAFAEL panne M. Leo�lcini, City Clerk awrence E. Mulryan, Mayor SELF INSURERS SERVICE, INC. By: Y .Q'/ Ucretia Marcus, Vice --President Regional Manager, Western Div. Approved as to Form: y Ragghianri( City Attorney - 4 -