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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) / -2- City of San Rafael f~·-- ,;; . R. L. Kautz and Co. /1;' :) .. ~!. By ____ ~~/~~!~·~'·~·(~7-~ .. ~(~·r~h~~~~-C~·.~. __________ __ Henry J:. Cotton Asso~iate Vice President R. L . KAUTZ 6. CO . I