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Home My WebLink AboutCC Resolution 6892 (Liability Claims Administration)RESOLUTION NO. 6892 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 INSURANCE CONSULTING ASSOCIATES INC FOR LIABILITY CLAIMS ADMINISTRATION, 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 19 84 , by the following vote, to wit: 6th day of Auyust AYES: COUNCILMEMBERS : Breiner, , Frugoli , Nave & D4ayor Drtulry n NOES: COUNCILMEA113ERS : None ABSENT: COUNCILMEMBERS: R.ussom JE E M. LEONCINI, City Clerk ORIGINAE �a SrJLF-INSURED CLAIMS MANAGEMEi.� AND LOSS CONTROL CONSULTING CONTRACT THIS CONTRACT is made and entered into this sixth_ day of August , 1984, by and between the CITY OF SAN RAFAEL, here- inafter referred to as the City, and INSURANCE CONSULTING ASSOCIATES, INC., hereinafter referred to as the Claims Administrator. INSURANCE CONSULTING ASSOCIATES, INC. is licensed in California to provide independent adjusting services. Its State License number is B -1430-C. It is a California Corporation with Home Office located at #7 Fourth Street, Suite #28, Petaluma, CA 94952, Telephone Number: (707) 778-1118. The Corporate Officers are Ronald Blanquie, President; Michael Craig Patterson, Senior Vice President and General Manager; Daniel A. Blanquie, Vice President -Carrier Operations. IT IS HEREBY AGREED by and between the parties signing this Contract as follows: I. GENERAL The City desires to have a unified claims management and loss control service. INSURANCE CONSULTING ASSOCIATES, INC. is a Claims Management and Consulting firm experienced in providing the re- quested services and is ready and capable to perform such services for the City. II. SERVICES The Claims Administrator will receive claims and incident reports from the City. It will initiate prompt investigations and attempt to secure the cooperation and confidence of claimants and their attorneys. It will provide reports to the City with respect to issues of fact, damages, and liability. It will provide recommend- ations with respect to courses of action regarding settlement and/or defense. Utilizing settlement authority as provided by the City, it will negotiate with claimants and with their attorneys with the goal of securing a mutually -acceptable resolution to any claim. It will attempt to resolve cases without litigation. If assignment of a case to defense counsel is necessary, it will make the assignment on behalf of the City utilizing firms approved for defense assignments by the City. It will receive and review all expense billings for payment, and will secure any necessary supportive documentation. Releases of All Claims will be obtained from all claimants receiving settlements through the Claims Administrator. The Claims Administrator will provide timely and complete reporting to the excess insurors for the City in a manner consistent with the reporting guidelines provided by the carrier(s). The Claims Administrator will perform Loss Control Analysis and Consulting services for the City in a manner and to an extent agreed upon. It will make itself available to the City Council for discussion of pending cases. It will make itself available for scheduled claim reviews with the City staff and management. It will provide a monthly computerized Loss Run of pending and closed cases active since the inception of this Contract and will include in the Summary Section totals concerning previously -closed cases in the aggregate. It will encourage cooperative activity amongst the various other firms providing administration or consulting services to the City. - 2 - III. PAYMENT FOR SERVICES The annual Computer Service Fee for the first year of this Contract is $2,400.00. That fee covers the cost of the monthly Loss Run Register and Summary Reports. 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 to the first year are as follows: Professional Services [Includes services by claims personnel, plus secretarial, telephone, insurance, and postage charges] Mileage Photocopies Color Photographs Necessary Expenses Special Computer Runs $42.00/hour .40/mile .30/page 1.50/print As Incurred As Incurred Any increase during the subsequent two years of this contract will not exceed 7% per year for Time & Expense and/or for the Computer Services Fee. There will be no charge for the Claims Administrator's time in reviewing and responding to incident reports not requiring inves- tigation. There will be no charge for providing the City with periodic updates of the General and Police Exposures Manuals. The Claims Administrator shall submit Statements on a monthly basis providing for an itemized breakdown by claim and by consulting activity. Payment for services must be made within a reasonable period of time, not to exceed 30 days. Any unpaid billing will be subject to a late charge of 1% per month after 30 days. IV. TERM The term of this agreement shall be a period of three (3) years beginning September'10 , 1984, and terminating on September 10 , 1987. This Contract shall be terminated by either party for any reason upon thirty (30) days written notice. This Contract may be renewed on a three-year anniversary subject to the same terms and conditions, except that Paragraph III, PAYMENT FOR SERVICES, herein may be renegotiated by the parties hereto. V. INDEPENDENT CONTRACTOR It is expressly agreed between the parties signing this Contract that the Claims Administrator shall have the status of an indepen- dent contractor and shall not be deemed to be an officer, employee, or agent of the City. VI. DENIAL, COMPROMISE OR SETTLEMENT OF CLAIMS It is agreed that the City has designated $1,000.00 authority to the Claims Administrator for the purpose of compromising and/or settling any claims against the City. Prior approval to compromise or settle any claim will be obtained from the designated City official or Risk Manager on matters exceeding $1,000.00. == VTI. INDEMNIFICATION The Claims Administrator will indemnify and hold harmless the City from and against all claims, demands, actions, or causes of action which may arise from the action, conduct, or failure to act by INSURANCE CONSULTING ASSOCIATES, INC. personnel. The City will defend at no cost to the Claims Administrator and will indemnify the Claims Administrator in those cases where the Claims Adminis- trator is named in a filed or verified complaint simply by virtue of the fact that it is the claims administration firm with respect to a given claim. VIII.INSURANCE The Claims Administrator will provide the City a certificate of insurance duly executed by an insurance company or companies authorized to transact business in the State of California, and said certificate shall evidence that the Claims Administrator has in full force and effect $1,000.00 coverage applying to bodily injury, personal injury, property damage, statutory Workers Compen- sation. The Claims Administrator shall maintain errors and omis- sions coverage in the amount of $1,000,000.00 per occurrence and shall also maintain employee fidelity bond coverage in the sum of $100,000.00. IX. RESPONSIBILITY FOR CLAIMS ADMINISTRATION FEES It is agreed that the City is liable for payment of all services rendered in accord with this Contract. Should the self-insured retention, the deductible, or the annual aggregate applicable to a particular claim or policy•year be exceeded, the Claims Admin- istrator's billings will be the responsibility of the City, and the Claims Administrator is expressly authorizeu to continue appropriate handling until it receives from the City express written instruc- tions to terminate any involvement in the claim or grouping of claims. X. TERMINATION OF SERVICES The responsibility of the Claims Administrator to provide any services terminates at the date that this Contrct is terminated, whether or not that date is the scheduled date provided herein or is earlier or later. Should this Contract be terminated for any reason and should the City wish the Claims Administrator to continue to handle any aspect of any claim or grouping of claims, charges for services so rendered will be billed at the rates then in effect as established by the Claims Administrator. CITY OF SAN RAFAEL August 6, 1984 B �. Date AWRENCE E. MULRYAN, Ma r Attest: J103W M. LEONCIN , City Clerk Approved as to Form: PETER J. MUZIO, City Attorney INSURANCE CONSULTING ASSOCIATES, INC. By: IAIJ..• Date Michael Craig Pat erson Senior Vice President and General Manager 32 A/1