HomeMy WebLinkAboutResolution No. 5395RESOLUTION N0. 5395
A RESOLUTION AUTHORIZING THE EXECUTION OF
AN AGREEMENT FOR SERVICES WITH R. L. KAUTZ
AND ESTABLISHING THE NECESSARY TRUST ACCOUNT
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES as
follows:
The MAYOR and CITY CLERK are authorized to execute,
on behalf of the City of San Rafael an agreement with R. L.
KAUTZ for liability self-insurance services, a copy of which
is hereby attached and by reference made a part hereof.
IT IS FURTHER RESOLVED that the Treasurer should
establish a separate trust account for the settlement of claims
by R. L. KAUTZ not to exceed $1,000 per claim.
I, JEANNE M. LEONCINI, City 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 held on Tuesday the
third day of January 1978, by the following vote,
to wit:
AYES: COUNCILMEN: Jensen, Miskimen, Mulryan, Nixon and Mayor Bettini
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: None
NNE M. LEONCINI, City Clerk
41 A/13
ORIGINAL
AGREEMENT BETWEEN CITY OF SAN RAFAEL
AND R. L. KAUTZ & CC- FOR SELF-
INSURANCE ADMINISTRATION SERVICES.
THIS AGREEMENT, entered into this fourth day of
January , 1978, by and between City of San Rafael, a
municipal corporation, hereinafter called "CITY," and R. L.
Kautz & Co., a California corporation, hereinafter called
"CONTRACTOR," for certain services as outlined herein in
connection with the duties and responsibilities of administering
a program of Liability Self -Insurance,
W I T N E S S E T H:
WHEREAS, CITY 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.
CONTRACTOR agrees to supervise and administer the
Liability Self -Insurance program for CITY 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 CITY
which are premised upon allegations of negligent
or careless acts or omissions, or conduct for which
CITY is alleged to be legally responsible, and agrees
further to provide to CITY during the term of this
Agreement all the services more particularly set
forth hereinafter.
In the performance of the services provided for
erein, CONTRACTOR shall use its best efforts
without any guarantee as to the ultimate outcome
of any claim adjusted, investigated, processed,
COPY
supervised or resolved by CONTRACTOR.
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) The initial investigation of such accidents,
incidents, claims or cases, where nature of
the claim warrants such investigation, or
when requested by CITY; such investigation
to include contact with claimant, on-site
investigation, photographs (non-commercial),
interview employees of CITY, as hereinafter
set forth, and other such initial investiga-
tive services necessary to determine liability
and damages, but not to include extraordinary
professional services as set forth in sub-
section "B." CITY shall make available to
CONTRACTOR, at the offices of CONTRACTOR,
all employees of CITY who are witnesses to
an incident or accident or who have knowledge
of the event or incident which is the subject
matter of the claim. The statements of such
individuals shall be taken at the office of
CONTRACTOR without additional charge. CITY
shall provide CONTRACTOR with photographs
and engineering drawings or other descriptive
material of all conditions of CITY property
which are alleged to be dangerous or that
were damaged in the events which produce
the claim under investigation.
The investigative facilities of CONTRACTOR
shall be limited in scope and directed at
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determining the probable liability or lack
thereof of CITY. All additional investiga-
tions that may be required shall be construed
as extraordinary professional services as set
forth in subsection "B" herein.
B. Allocated Expenses and Additional Investigative
Expenses. CITY agrees to pay for the cost of
extraordinary investigative services where expert
and professional assistance is required, such as
professional photography, independent medical,
examinations, laboratory services, taking state-
ments from witnesses away from the premises of
CONTRACTOR, copying medical and other records,
trial preparation and professional engineering
services, including but not limited to map
preparation, accident reconstruction, material
analysis and evaluating premises.
3. ADJUSTMENT SERVICES.
CONTRACTOR agrees to provide complete adjustment
services on each accident or incident which is or
may be the subject of a liability claim. Such ser-
vices shall include:
A. The maintenance of a claim file on each potential
or actual claim reported to CONTRACTOR.
B. Whenever its investigation results in a determina-
tion that CITY has sustained a liability to a
third party, CONTRACTOR shall process any such
claim or potential claim for settlement in accord-
ance with instructions and policies of CITY for
settlement of such claims.
C. Notification of CITY's primary and excess carriers
of all claims which exceed CITY's retention and
maintenance of liaison between the insurance
carriers and the CITY on matters affecting the
adjustment of such claims and notify CITY when
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CITY is entitled to reimbursements for loss in
excess of retention.
D. Rejection of claims when appropriate, pursuant to
relevant provisions of Title 1, Division 3.6, Part 3,
Chapter 2, of the Government Code of the State of
California.
E. Obtain all Release Agreements on settlement of
any claim or potential claim.
4. ADMINISTRATIVE SERVICES.
CONTRACTOR agrees to provide the following adminis-
trative services:
A. Preparation and submission of an Operating Manual
of Procedure for reporting claims to CONTRACTOR
and the proper procedures for completing accident
forms.
B. Provide CITY during the term of this Agreement
with tabulated Monthly Status Report on all
reported claims during the term of this Agreement,
indicating the status of each reported open claim
assigned to CONTRACTOR, the details of each claim,
the outstanding reserves for each claim and details
of all claims payments during the month. The
Status Report shall be delivered to CITY within
twenty (20) days of the close of each calendar
month.
C. Periodic review and adjustment of reserves on all
open claims.
5. PERIOD OF AGREEMENT.
This Agreement is for a period of twelve (12) months
commencing at 12:01 a.m., January 4, 1978, and
ending Midnight, January 3, 1979. 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 ("CON-
SIDERATION"), unless and until this Agreement is
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terminated by either party as hereinafter provided.
6. CONSIDERATION.
CITY agrees to pay to CONTRACTOR the sum of Four
Thousand Five Hundred Dollars ($4,500.00), payable
quarterly in equal installments, to provide all
services set forth herein except Allocated Expenses
and Additional Investigative Expenses set forth in
2B herein.
7. CANCELLATION OF AGREEMENT.
This Agreement may be terminated by either party
giving to the other, in writing, notice of his
intention to cancel this Agreement at least sixty
(60) days prior to the date of termination.
8. DISPOSITIOr: OF FILES ON TERMINATION OF AGREEMENT.
A. All files on each claim shall be the property
of the CITY.
B. In the event of termination or cancellation of
the Agreement, CONTRACTOR shall return all files
to CITY unless CITY requests CONTRACTOR to con- .
tinue to process any file, which file CONTRACTOR
will continue to process on a time and expense
basis.
C. In the event of cancellation of this Agreement by
CITY, the total consideration to be paid by CITY
to CONTRACTOR as set forth in section 6 herein
shall be due and payable.
D. In the event of cancellation of this Agreement by
CONTRACTOR, the consideration to be paid pursuant
to section 6 shall terminate effective with the
termination of the Agreement and the CITY shall
not be liable for further payment.
9. HOLD HARMLESS.
CITY agrees to defend any legal action commenced
against CONTRACTOR caused directly or indirectly by
wrongful or negligent acts of CITY's officers,
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employees, agents or others engaged by CITY; and
indemnify CONTRACTOR against any liability, loss,
cost, or damage, including attorneys' fees, resulting
therefrom.
IN WITNESS WHEREOF, the parties hereto have caused these presents
to be signed by their duly authorized officers as of the day and
year first above written.
R. L. KAUTZ & CO.
A California Corporation
W� V y/am, WS, i 000R-14217
Irs�
CITY OF SAN RAFAEL
A Municipal Corporation
By:
MAYOR OF THE CITY F SAN RAFAEL
Attest:
CITY CLERK