HomeMy WebLinkAboutResolution No. 6475 (Liability Claims Administration),-..
RESOLUT ION NO. 6475 -:.....::....:.~--
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL AUTHORIZING THE SIGNING OF A
CONTRACT, LEASE OR AGREEMENT
(WITH R. L. KAUTZ & COMPANY FOR CLAIMS ADMINISTRATION)
(Liability Claims)
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES
as follows:
WHEREAS, the Mayor and City Clerk are authorized to
execute, on behalf of the City of San Rafael, a contract, lease
or agreement with R. L. Kautz & Company for Liability Claims
Administration.
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 Council of said
City on Monday , the 17th day of January , 198 , by the
following vote, to wit:
AYES: COUNCILMEMBERS:Breiner, Frugo l i, Jensen, Miskimen & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
25 B/27
AGREEMENT BETWEEN
CITY OF SAN RAFAEL
AND
R.L. KAUTZ & COMPANY
FOR
SELF-INSURANCE ADMINISTRATION SERVICES
THIS AGREEMENT, entered into this seventeenth day
of January ,1983, by and between CITY OF SAN RAFAEL,
hereinafter called "SELF-INSURER," and R.L. KAUTZ & COHPANY
1\ California corporation, hereinafter called "CONTRACTOR,"
for certain services outlined herein in connection with the
duties and responsibilities of administering a program of
Liability Self-Insurance.
t-lITNESSETH:
WHEREAS, SELF-INSURER has undertaken to self-insure;
and
WHEREAS, CONTRACTOR is engaged in the supervision
and administration of programs of self-insurance,
NOW, THEREFORE, for and in consideration of the mutual
obligations hereby assumed, and the performance of the acts
hereinafter set forth, the parties hereto agree as follows:
1. GENERAL
A. CONTRACTOR agrees to 'supervise and administer
the Liability Self-Insurance program for SELF-
INSURER and shall act as their representative in
connection with the investigation, adjustment,
processing, supervision and resolution of general
liability and automobile liability claims and
potential claims for money damages asserted by
third parties against SELF-INSURER which are
premised upon allegations of negligent or careless
acts or omissions for which there is coverage for
defense and indemnity through the SELF-INSURER'S
excess insurance policy, and agrees further to
provide to SELF-INSURER during the term of this
Agreement all the services more particularly set
forth hereinafter.
CONTRACTOR shall use its best efforts in the
performance of the services provided for herein
without any guarantee as to the ultimate outcome of
any claim adjusted, investigated, processed,
supervised or resolved by CONTRACTOR.
• .
B. CONTRACTOR shall open a bank account with a
federally insured bank, as agent for SELF-INSURER,
and shall have sole signing authority on said
account. SELF-INSURER shall be responsible for
maintaining sufficient balances in the account to
cover the payment of the claims which might reason-
ably be expected to result under the program.
llowever, if at any time an overdraft exists on this
account, SELF-INSURER agrees for the benefit of
CONT~~CTOR and the bank to be responsible for the
amount thereof.
2. INVESTIGATIVE SERVICES
A. CONTRACTOR agrees to provide investigative
services as follows;
(1) Receipt and examination of all reports of
accidents, incidents, claims or cases which
are or may be the subject of such liability
claims.
(2) Investigation of such accidents, inci-
dents, claims or cases, where nature of the
claim warrants such investigation, or when
requested by SELF-INSURER; such investigation
to include contact with claimant, interview
employees of SELF-INSURER, as hereinafter set
forth l and engage, direct and evaluate outside
investigative services as set forth in sub-
section "8 H
• SELF-INSURER shall make available
to CONTRACTOR all employees who are witnesses
to an incident or accident or who have knowl-
edge of the event or incident giving rise to
the claim. The statemen~s of such employees
shall be taken at the office of CONTRACTOR, or,
if practical, SELF-INSURER will make available
to the employee a convenient location within
the confines of the SELF-INSURER will make
available to the employee a convenient location
within the confines of the SELF-INSURER'S
offices so that a recorded telephone statement
m~y be taken. SELF-INSURER sh~ll provide
CONTRACTOR with available photographs, engineering
drawings, internal reports, or other aescrip-
tive material of all conditions of SELF-INSURER'S
property which are alleged to be dangerous or
that were damaged in the events giving rise to
the claim under investigation.
----_._--------
B. Incurred Exrenscs and Additional Investigative
Expenses:
SELF-INSURER agrees to pay all incurred investiga-
tive expenses as Loss Expenses against individual
claims. Included in this provision are services
performed by outside contractors where expert and
professional assistance is required, such as
professional photography, inoependent medical
examinations, laboratory services, on-side invest-
igations, taking statements from witnesses away
from the premises of CONTRACTOR, obtaining medical
and other records and reports, trial preparation
and professional engineering services, including,
but not limited to, map preparation, accident
reconstruction, material analysis, and evaluating
premises.
SELF-INSURER agrees to reimburse CONTRACTOR for
travel expenses away from CONTRACTOR'S office at
the rate of $0.30 per mile plus bridge tolls.
CONTRACTOR will provide for appropriate reimburse-
ment as a Loss Expense against individual claims.
3. ADJUSTMENT SERVICES
CONTRACTOR agrees' to provide complete adjustment
services on each accident or incident which is or may
be the subjec~ of a liability claim. Such services
shall include:'
A. The maintenance of a claim file on each claim
reported to CONTRACTOR.
.
B. Whenever its investigat{on results in a deter-
mination that SELF-INSURER has sustained a liabil-
ity to a third party, CONTRACTOR shall direct its
efforts toward obtaining a fair resolution of the
matter reflectini the best interests of SELF-
INSURER and will operate in conformance with the
instructions and policies of SELF-INSURER for
concluding claims.
C. CONTRACTOR will notify SELF-INSURER'S excess
carrier(s} of all claims which threaten to exceed
SELF-INSURER'S RETENTION and will maintain liaison
between the carrier(s) and SELF-INSURER on matters
affecting the adjustment of such claims.
-.
D. Rejection of claims when appropriate, pursuant
to the applicable laws of the State of California
and the policies of SELF-INSURER.
E. Engage, direct, and evaluate defense counsel
experienced in matters bearing on SELF-INSURED'S
exposure on particular cases. Selection of counsel
\-lill be made by CONTRACTOR.
F. Obtain Release of All Claims agreements from
all claimants with whom settlement is made.
4. ADMINISTRATIVE SERVICES
CONTRACTOR agrees to provide the follo\-ling
administrative services:
A. P.reparatiori and submission of an Operating
t1anual for reporting claims to CONTRACTOR and for
the proper procedures for completing accident
forms.
B. Provide SELF-INSURER during t~e term of this
Agreement with a tabulated Monthly Status Report of
all claims, indicating the status of each reported
open claim assigned to CONTRACTOR, the details of
each claim, the outstanding reserves, litigation
status, and payments. The Status Report will be
delivered to SELF-INSURER within twenty (20) days
of the close of each calendar month.
C. Periodic review and adjustment of reserves on
all open claims.
D. Schedule and conduct quarterly loss reviews
with City department managers and other key person-
nel. The purpose of the reviews will be to enhance
the following:
(1) The City's understanding of currently
significant claims and their status.
(2) Discernment of claim trends and thier
causes.
(3) Consideration of approaches that the
City might take to reduce liability exposures.
(4) Discussion of the City's liability program
and its administration.
.. -.... ----... -.~-----.---.-.--.. _-----------
.'
AMENDMENT NUMBER I
LIABILITY CLAIMS ADMINISTRATION
I tis her e by a g r e e c1 t hat the Me m 0 ran dum 0 f P. g r e e men t d ate d
April 5, 1982, between the City of San Rafael and R. L.
Kautz and Co. is amended as follows:
5. PERIOD OF AGREEMENT
This Agreement is for a period of twelve (12) months
commencing at 12:01 a.m., 1/4/83 and ending midnight,
1/3/84. Thereafter, it is the intention of the parties
to continue this Agreement in full force and effect,
subject to annual renegotiation of Section 6 hereunder
(nCONSIDERA'rrON"), unless and until this Agreement is
terminated by either party as hereinafter provided.
6. CONSIDERATION
Base Fee of $10,500*
Base fee allows for up to and inclUding seventy-five
(75) claims. All claims above the basic allowance will
be handled on a Time and Expense basis at the following
rates:
$25.00 per hour for administrator
and managerial services.
As incurred, expenses for field services,
etc.;' as outlined in Paragraph 2-B
contract.
reports,
of th is
* Exclusive of incurred expenses for field inves-
tigation, reports, independent medical examination,
an~ like items as enumerate6 in Secti~n 2-8 of the
contract. Also exclusive of attorney fees and other
litigation costs.
7. CANCELLATION OF AGREEMENT
This Agreement may be terminated by either party giving to
the other, in wr i ting, notice of his intention to cancel
this Agreement at least sixty (60) days prior to the date of
termination.
r
R. L. KAUTZ e. co .
.. . _--_._,,----_._------
. ....
This Agreement may be terminated by the Self Insurer by
giving to R. L. Kautz in writing notice of its intention to
cancel this Agreement at least 60 days prior to the date of
termination, and the Self Insurer shall not be liable for
more than a pro-rata share of the base fee if there has been
a change in personnel or level of services unacceptable to
San Rafael.
If termination is made by the CONTRACTOR at any time other
than at an l'.nniversary date of this Agreement, the SEJ.JF-
INSURER shall not be liable for more than a pro-rata share
of the base fee if less than 75 claims have been reported or
more than the time and expense charges actually incurred for
claims handling as of the date of termination if more than
7S claims have been reported.
All other terms of the Agreement remain in full force and
effect.
This Amendment is accepted and formalized this sevent(~ent h
day of January, 1983.
ATTEST:
~ ~Q'6~C ~ness) .
Deputy City Clerk
APPROVED AS TO FORM:
&~~~
Ci ty Attorl1l~Y
(h'itness)
/
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City of San Rafael
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R. L. Kautz and Co.
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By ____ ~~/~~!~·~'·~·(~7-~ .. ~(~·r~h~~~~-C~·.~. __________ __
Henry J:. Cotton
Asso~iate Vice President
R. L . KAUTZ 6. CO . I