HomeMy WebLinkAboutCC Resolution 9493 (Risk Management Consultation)RESOLUTION NO. 9-4!13
A RESOLUTION AUTHORIZING THE SIGNING OF AN AGREEMENT WITH
INSURANCE CONSULTING ASSOCIATES, INC. FOR ADMINISTRATION OF
THIRD -PARTY LIABILITY CLAIMS AND FOR RISK MANAGEMENT
CONSULTATION (Three year agreement from 12/11/95 through 11 /30/98)
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES AS FOLLOWS:
The CITY MANAGER and CITY CLERK are authorized to execute, on behalf
of the City of San Rafael, an agreement with INSURANCE CONSULTING
ASSOCIATES, INC., a copy of which is hereby attached and by this reference
made a part hereof.
I, JEANNE M. LEONCINI, Cleric 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 Monday, the 20th day of
November, 1995, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Zappetini and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Phillips
JEArIE M. LEONCI I, City Cleric
ORIGINA1 &% A�
AGREEMENT
FOR ADMINISTRATION OF THIRD -PARTY LIABILITY
CLAIMS AND FOR RISK MANAGEMENT CONSULTATION,
This Agreement is made and entered into this 1st day of
December, 1995, by and between the CITY OF SAN RAFAEL (hereinafter
"CITY"), and INSURANCE CONSULTING ASSOCIATES, INC. (hereinafter
"ADMINISTRATOR").
RECITALS
WHEREAS, ADMINISTRATOR is licensed in California to provide
independent adjusting services (State license #0607524); and
WHEREAS, ADMINISTRATOR is a corporation duly organized under
the laws of the State of California with its home office located at
621 A, Second Street, Petaluma, California; Mr. Ronald R. Blanquie,
President, and Mr. Daniel A. Blanquie, Executive Vice President;
and
WHEREAS, CITY is a municipal corporation duly organized and
existing in the Sate of California, County of Marin; and
WHEREAS, CITY is self-insured for all liability claims
asserted against it by third parties; and
WHEREAS? ADMINISTRATOR has provided third -party liability
claims administration and risk management consulting services to
CITY for the past fourteen years;
AGREEMENT
NOW, THEREFORE, the parties hereby agree as follows:
1. PROJECT COORDINATION.
A. CITY. The City Manager, or designee, shall be the
representative of the CITY for all purposes under this Agreement.
The Assistant City Manager is hereby designated the PROJECT MANAGER
for the CITY, and said PROJECT MANAGER shall supervise all aspects
of the progress and execution of this Agreement.
B. ADMINISTRATOR. ADMINISTRATOR shall assign a single
PROJECT DIRECTOR to have overall responsibility for the progress
and execution of this Agreement for ADMINISTRATOR. Mr. Ronald R.
Blanquie is hereby designated as the PROJECT DIRECTOR for
ADMINISTRATOR. Should circumstances or conditions subsequent to
the execution of this Agreement require a substitute PROJECT
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DIRECTOR for any reason, the ADMINISTRATOR shall notify the CITY
within ten (10) business days of the substitution.
2. DUTIES OF ADMINISTRATOR.
ADMINISTRATOR shall perform the duties and/or provide
the services as outlined in Exhibit "A", attached and incorporated
herein.
3. DUTIES OF CITY.
CITY shall perform the duties as outlined in Exhibit "B",
attached and incorporated herein.
4. COMPENSATION.
For the full performance of the services described herein
by ADMINISTRATOR, CITY shall pay ADMINISTRATOR as outlined in
Exhibit "C", attached and incorporated herein.
Payment will be made monthly upon receipt by PROJECT
MANAGER or City Attorney, of itemized invoices submitted by
ADMINISTRATOR.
5. TERM OF AGREEMENT.
The term of this Agreement shall be for three (3) years
commencing on December 1, 1995 and ending on November 30, 1998.
Compensation for the first two (2) years shall be at the rates
shown in Exhibit "C". Compensation for the final year of the
agreement shall be increased in an amount to be determined by
mutual agreement of the parties, not to exceed the "CPI/C" as
defined in Exhibit "C".
However, for the purpose of maintaining the continuity of
claims administration for CITY upon the end of the term of, or upon
termination of this agreement, ADMINISTRATOR may continue to
perform services as outlined in Exhibit "A" on a month-to-month
basis, at the rates then in effect.
6. TERMINATION.
A. Discretionary. Either party may terminate this
Agreement without cause upon sixty (60) days written notice mailed
or personally delivered to the other party.
B. Cause. Either party may terminate this Agreement
for cause upon thirty (30) days written notice mailed or personally
delivered to the other party, and the notified party's failure to
cure or correct the cause of the termination notice; to the
reasonable satisfaction of the party giving such notice, within
twenty (20) days of the receipt of said notice.
C. Effect of Termination. Upon receipt of notice of
termination, neither party shall incur additional obligations under
any provision of this Agreement without the prior written consent
of the other.
7. PROJECT DOCUMENTS: OWNERSHIP.
A. Ownership. The written documents and materials
prepared by and provided the ADMINISTRATOR in connection with the
performance of its duties under this Agreement, shall be the
property of CITY. CITY may use said property for any purpose,
including projects not contemplated by this Agreement.
B. Return of Documents. Upon termination of this
agreement for any reason, any and all CITY documents or materials
provided to ADMINISTRATOR and any and all of ADMINISTRATOR's
documents and materials prepared for or relating to the performance
of its duties under this Agreement, shall be delivered to CITY as
soon as possible, but not later than thirty (30) days after
termination. Cost of delivery and of duplication/photocopy of said
documents, as required by law, shall be borne by City.
8. INSPECTION AND AUDIT.
Upon reasonable notice, ADMINISTRATOR shall make
available to CITY, or its agent, for inspection and audit, all
documents and materials maintained by ADMINISTRATOR in connection
with its performance of its duties and its provision of services
under this Agreement. ADMINISTRATOR shall fully cooperate with
CITY or its agent in any such audit or inspection.
9. ASSIGNABILITY.
The parties agree that they shall not assign or transfer
any interest in this Agreement nor the performance of any of their
respective obligations hereunder, without the prior written consent
of the other party, and any attempt to so assign this Agreement or
any rights, duties or obligations arising hereunder shall be void
and of no effect.
10. INSURANCE.
A. During the term of this Agreement, ADMINISTRATOR
shall maintain, at no expense to CITY, the following insurance
policies:
1. A comprehensive general liability insurance
policy in the minimum amount of one million ($1,000,000) dollars
per occurrence for death, bodily injury, personal injury, or
property damage;
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2. An automobile liability (owned, non-owned, and
hired vehicles) insurance policy in the minimum amount of one
million ($1,000,000) dollars per occurrence;
3. If any licensed professional performs any of
the services required to be performed under. this Agreement, a
professional liability insurance policy in the minimum amount of
one million ($1,000,000-) dollars to cover any claims arising out of
the ADMINISTRATOR's performance of services under this Agreement.
B. The insurance coverage required of the ADMINISTRATOR
by section 10. A., shall also meet the following requirements:
1. The insurance shall be primary with respect to
any insurance or coverage maintained by CITY and shall not call
upon CITY's insurance or coverage for any contribution;
2. Except for professional liability insurance,
the insurance policies shall be endorsed for contractual liability
and personal injury;
3. Except for professional liability insurance,
the insurance policies shall be specifically endorsed to include
the CITY, its officers, agents, and employees as additionally named
insureds under the policies;
4. ADMINISTRATOR shall provide to PROJECT MANAGER,
or City Attorney (a) Certificates of Insurance evidencing the
insurance coverage required herein, and (b) specific endorsements
naming CITY, its officers, agents and employees, as additional
insureds under the policies;
5. The insurance policies shall provide that the
insurance carrier shall not cancel, terminate or otherwise modify
the terms and conditions of said insurance policies except upon
thirty (30) days written notice to CITY's PROJECT MANAGER;
6. If the insurance is written on a Claims Made
Form, then, following termination of this Agreement, said insurance
coverage shall survive for a period of not less than five years;
7. The insurance policies shall provide for a
retroactive date of placement coinciding with the effective date of
this Agreement;
8. The insurance shall be approved as to form and
sufficiency by PROJECT MANAGER and the City Attorney.
C. If it employs any person, ADMINISTRATOR shall
maintain worker's compensation and employer's liability insurance,
as required by the State Labor Code and other applicable laws and
regulations, and as necessary to protect both ADMINISTRATOR and
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CITY against all liability for injuries to ADMINISTRATOR's officers
and employees.
D. Any deductibles or self-insured retentions in
ADMINISTRATOR's insurance policies must be declared to and approved
by the PROJECT MANAGER and the City Attorney. At CITY's option,
the deductibles or self-insured retentions with respect to CITY
shall be reduced or eliminated to CITY's satisfaction, or
ADMINISTRATOR shall procure a bond guaranteeing payment of losses
and related investigations, claims administration, attorney fees
and defense expenses.
11. INDEMNIFICATION.
ADMINISTRATOR shall indemnify, release, defend and hold
harmless CITY, its officers, and employees, against any claim,
demand, suit, judgement, loss, liability or expense of any kind,
including attorney's fees, arising out of or resulting in any way
from any acts or omissions, intentional or negligent, of
ADMINISTRATOR or ADMINISTRATOR's officers, agents and employees in
the performance of their duties and obligations under this
Agreement.
CITY shall indemnify, release, defend and hold harmless
ADMINISTRATOR, its officers, and employees, against any claim,
demand, suit, judgement, loss, liability or expense of any kind,
including attorney's fees, arising out of or resulting in any way
from any acts or omissions, intentional or negligent, of CITY or
CITY's officers, agents and employees in the performance of their
duties and obligations under this Agreement.
12. LIMITATION OF LIABILITY.
ADMINISTRATOR will provide services utilizing good faith
efforts based upon its experience in claims management and
consulting. ADMINISTRATOR provides no warranty, express or
implied, that its services will result in any specific outcome for
any case, in any reduction in frequency, severity or cost of any
liability claims, or in reduction of any incidents giving rise to
claims no matter how caused.
13. NONDISCRIMINATION.
ADMINISTRATOR shall not discriminate, in any way, against
any person on the basis of age, sex, race, color, religion,
ancestry, national origin or disability in connection with or
related to the performance of its duties and obligations under this
Agreement.
14. COMPLIANCE WITH ALL LAWS.
ADMINISTRATOR shall observe and comply with all
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applicable federal, state and local laws, ordinances, codes and
regulations, in the performance of its duties and obligations under
this Agreement. ADMINISTRATOR shall perform all services under
this Agreement in accordance with these laws, ordinances, codes and
regulations. ADMINISTRATOR shall release, defend, indemnify and
hold harmless CITY, its officers, agents and employees from any and
all damages, liabilities, penalties, fines and all other
consequences from any noncompliance or violation of any laws,
ordinances, codes or regulations.
15. NO THIRD PARTY BENEFICIARIES.
CITY and ADMINISTRATOR do not intend, by any provision of
this Agreement, to create in any third party, any benefit or right
owed by one party, under the terms and conditions of this Agree-
ment, to the other party.
16. NOTICES.
All notices and other communications requi=ed or
permitted to be given under this Agreement, including any notice of
change of address, shall be in writing and given by personal
delivery, or deposited with the United States Postal Service,
postage prepaid, addressed to the parties intended to be notified.
Notice shall be deemed given as of the date of personal delivery,
or if mailed, upon the date of deposit with the United States
Postal Service. Notice shall be given as follows:
TO CITY: Ms. Suzanne Golt
Acting City Manager/Project Manager
City of San Rafael
1400 Fifth Avenue
P.O. Box 151560
San Rafael, CA 94915-1560
TO ADMINISTRATOR: Mr. Ron Blanquie, President
Project Director
621 A Second Street
P.O.Box 750849
Petaluma, CA 94975-0849
17. INDEPENDENT CONTRACTOR.
For the purposes, and for the duration, of this Agree-
ment, ADMINISTRATOR, its officers, agents and employees shall act
in the capacity of an Independent Contractor, and not as employees
of the CITY. ADMINISTRATOR and CITY expressly intend and agree
that the status of ADMINISTRATOR, its officers, agents and
employees be that of an Independent Contractor and not that of an
employee of CITY.
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18. ENTIRE AGREEMENT -- AMENDMENTS.
A. The terms and conditions of this Agreement, all
exhibits attached, and all documents expressly incorporated by
reference, represent the entire Agreement of the parties with
respect to the subject matter of this Agreement.
B. This written Agreement shall supersede any and all
prior agreements, oral or written, regarding the subject matter
between the ADMINISTRATOR and the CITY.
C. No other agreement, promise or statement, written or
oral, relating to the subject matter of this Agreement, shall be
valid or binding, except by way of a written amendment to this
Agreement.
D. The terms and conditions of this Agreement shall not
be altered or modified except by a written amendment to this
Agreement signed by the ADMINISTRATOR and the CITY.
E. If any conflicts arise between the terms and
conditions of this Agreement, and the terms and conditions of the
attached exhibits or the documents expressly incorporated by
reference, the terms and conditions of this Agreement shall
control.
19. SET-OFF AGAINST DEBTS.
ADMINISTRATOR agrees that CITY may deduct from any
payment due to ADMINISTRATOR under this Agreement, any monies which
ADMINISTRATOR owes CITY under any ordinance, agreement, contract or
resolution for any unpaid taxes, fees, licenses, assessments,
unpaid checks or other amounts.
20. WAIVERS.
The waiver by either party of any breach or violation of
any term, covenant or condition of this Agreement, or of any
ordinance law or regulation, shall not be deemed to be a waiver of
any other term, covenant, condition, ordinance, law or regulation,
or of any subsequent breach or violation of the same or other term,
covenant, condition, ordinance, law or regulation. The subsequent
acceptance by either party of any fee, performance, or other
consideration which may become due or owing under this Agreement,
shall not be deemed to be a waiver of any preceding breach or
violation by the other party of any term, condition, covenant of
this Agreement or any applicable law, ordinance or regulation.
21. COSTS AND ATTORNEY FEES.
The prevailing party in any action brought to enforce the
term" and conditions of this Agreement, or arising out of the
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performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney fees expended in
connection with such action.
22. CITY BUSINESS LICENSE / OTHER TAXES.
ADMINISTRATOR shall obtain and maintain during the
duration of this Agreement, a CITY business license as required by
the San Rafael Municipal Code. ADMINISTRATOR shall pay any and all
state and federal taxes and any other a licable taxes.
ADMINISTRATOR' s taxpayer identification number isJ 1 -2s ,
and ADMINISTRATOR certifies under penalty of perjury that said
taxpayer identification number is correct.
23. APPLICABLE LAW.
The laws of the State of California shall govern this
Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day, month and year first above written.
CITY OF SAN RAFAEL
City nager V
ATTEST:
C 9- Clerk
�eY
LJ
ADMINISTRATOR
Name:
Title:
EXHIBIT "A"
2. DUTIES AND SERVICES OF ADMINISTRATOR.
A. Claims Administration:
ADMINISTRATOR shall perform the following duties and/or
provide the following services in a competent and professional
manner:
1. Assist CITY in the overall management of its
liability claims administration and loss control program;
2. Provide claims administration services to CITY,
including but not limited to:
a) Review all new verified claims, create file for
each claim, input appropriate claim information into the computer
data base, and contact all claimants, within fifteen (15) working
days of the initial receipt of claim;
b) Initiate prompt investigations of new claims,
and, upon request of CITY, initiate investigations of incidents
that might develop into claims;
C) Attempt to secure the confidence and co-
operation of claimants and their attorneys;
d) Set reserves on each new claim within ten (10)
working days of initial receipt of claim;
e) Provide timely reports to CITY regarding new
claims; these reports shall outline 1) issues of fact, 2)
liability, 3) possible defenses, 4) damages, 5) recommendations for
action, including settlement, rejection and defense;
f) In consultation with City Attorney, retain
defense counsel to defend claims proceeding into litigation;
g) Where possible, and subject to the approval by
CITY of settlement authority, attempt to negotiate with claimants
and/or their attorneys, settlement of claims at the earliest
possible stage of the claims process;
h) In accordance with their established
guidelines, report appropriate claims to the excess insurer or
excess liability pool in a timely manner;
i) Subject to approval of CITY, attempt to obtain
open extensions of time, where appropriate, in order to more
efficiently, economically and expeditiously settle claims and
actions;
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j) Obtain release of all claims from claimants
receiving settlements from CITY through ADMINISTRATOR;
k) Receive, review and approve all expense
billings, including attorney fees, related to pending claims or
actions, and obtain any additional documentation as needed prior to
approval;
1) Upon request of CITY or CITY's defense counsel,
attend bi-monthly meetings of CITY's loss committee, any settlement
conferences or other hearings, and any meetings of the City Council
regarding liability claims or actions;
M) Provide CITY a monthly computerized loss run of
open and closed cases, in computer disc form compatible to CITY
equipment, in a format to be approved by CITY.
3. Provide processing of small property damage claims
as follows:
a) Receive and acknowledge claim, open f ile and
input into computer;
b) Review and evaluate proof of loss and photos of
damage at loss committee meetings;
C) Obtain release and issue check.
For purposes of this subsection, "small property
damage claim" means a claim of $1,000.00 or less, which involves no
claim of personal injury or other damages.
B. Risk Management Services:
ADMINISTRATOR shall provide, upon request of CITY, the
following risk management services:
1. Consult with CITY staff, including the Risk
Management Committee, on loss control and risk management issues;
2. Provide training to all CITY departments and staff,
concerning risk management and loss control subjects;
3. Provide risk analysis of particular areas or
functions of CITY government.
C. Defense Costs, Attornevs Fees. and Settlement Authoritv:
1. ADMINISTRATOR shall obtain settlement authority from
the CITY or, in the event of an exposure piercing the CITY's self-
insured retention, jointly from the CITY and its excess insurer or
excess liability pool.
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2. Subject to CITY approval, the ADMINISTRATOR may
incur on behalf of the CITY defense costs including, but not
limited to attorney fees, court costs, charges for court reporters,
experts, technical analyses and reviews, medical examinations, and
related items as are necessary or appropriate in the judgment of
ADMINISTRATOR or defense counsel for the proper preparation and
defense of any case.
3. ADMINISTRATOR is expressly authorized to issue
vouchers for such costs, and for settlements and judgments
utilizing a designated Trust Account which is funded and maintained
by the CITY.
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EXHIBIT "B"
3. DUTIES OF CITY:
A. CITY shall be responsible for the timely payment to
ADMINISTRATOR for the services provided to CITY under this
agreement, pursuant to section 4.
B. Processing of Liabilitv Claims:
CITY shall perform the following in conjunction with
the claims process:
1. Forward all verified claims to ADMINISTRATOR within
five (5) working days of receipt;
2. Obtain and forward to ADMINISTRATOR a preliminary
departmental report concerning the circumstances of all verified
claims within a reasonable time after receipt of claim;
3. Regarding incidents that might develop into claims,
CITY shall be responsible to notify and to provide ADMINISTRATOR
such incident reports as are available, and to request
ADMINISTRATOR to perform such precautionary investigation and
report as may be appropriate.
4. CITY shall approve all legal forms used by
ADMINISTRATOR in the claims process, pursuant to the California
Government Tort Claims Act.
C. CITY shall provide to ADMINISTRATOR all available
information, staff, records or other materials necessary to the
proper preparation and defense of any claim or action.
D. CITY shall be responsible to notify ADMINISTRATOR to
cease any claim -management activity or service with regard to any
particular claim and CITY shall be responsible for payment for such
activities or services until such notice is given, in the manner
provided in section 15. of this agreement.
E. CITY shall establish and maintain a Trust Account for the
payment of all costs, fees, and settlements of liability claims.
Detailed procedures for payments and deposits shall be arranged
between ADMINISTRATOR and CITY's Finance Department.
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EXHIBIT "C"
4. COMPENSATION:
CITY shall pay to ADMINISTRATOR for services rendered under
this agreement, according to the following schedule:
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 for the f irst two ( 2 ) years of
this agreement are as follows:
A. Computer Service Fee for this contract is $3,600 per
year. This fee covers the cost of computer hardware, space on the
system, as well as the cost of the monthly Claims Register and
Summary Sections of the computerized loss runs. The Computer Fee
shall be paid monthly in the amount of $300.
B. Claims Administration: (hourly) $50.00*
C. Risk Management and Loss Control
Consulting Fees: (hourly) $75.00, not to
exceed a total
of $5,000.00 in
any year.
D. Allocated Costs:
Mileage rate $ .40/mi
Color photographs (only those
developed and mounted; no charge
for those not used) $ 2.00/ea
Verbatim transcriptions (of
recorded statements) $ 5.00/pg
FAX transmissions (only those
originating at ICA's office; no
charge for incoming FAX messages) $ 2.50/1st pg
$ 1.75/ea pg
Long distance telephone calls (all
calls out of the 707, 415 or 510
area codes) $ .25/min
Cassette tapes (for recorded
statements) $ 2.50/ea.
Photocopies $ .30/copy
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Computer record searches (As incurred)
Video cassettes (As incurred)
Travel expenses (As incurred)
Other necessary & reasonable expenses (As incurred)
-Other computer reports & services (As incurred)
Posting costs (As incurred)
* Includes 25% for office services, 10% for secretarial
and 9% for local telephone calls (within the 707, 415 and
510 area codes).
E. Monthlv Statements:
The ADMINISTRATOR shall submit statements to CITY on a
monthly basis showing an itemized breakdown by claim or by
consulting activity. Billings are payable within thirty (30) days
of presentation and are subject to a late charge of 1% per month
imposed on the next billing cycle.
F. "CPI/C" shall mean the percentage change in the consumer
price index for California, All Urban Consumers, San Francisco -
Oakland -San Jose areas, compiled by the Bureau of Labor Statistics,
San Francisco, over the most recent twelve month period for which
figures are available. The most recently published CPI figure
available sixty (60) days prior to the expiration of the first two
(2) years of the agreement, shall be used for the calculation.
Revised 11-13-95
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