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HomeMy WebLinkAboutCC Resolution 8870 (Insurance Consulting)RESOLUTION NO. 8870 A RESOLUTION AUTHORIZING THE SIGNING OF A CONTRACT WITH INSURANCE CONSULTING ASSOCIATES, INC. (1 - Year Agreement from May 1, 1993 through April 30, 1994) 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 with INSURANCE CONSULTING ASSOCIATES, INC., 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 introduced and adopted at a regular meeting of the City Council of said City, held on Mondav the 5th day of April , 1993, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Breiner je�EM. , yE,EO, iit lerk ORIGINAL_ -*se76 SELF-INSURED CLAIMS MANAGEMENT AND GENERAL RISK MANAGEMENT CONSULTING CONTRACT THIS CONTRACT is made and entered into this 4th day of March 1993, by and between the CITY OF SAN RAFAEL, hereinafter 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 0607524. It is a California Corporation with Home Office located at 1125 North McDowell Boulevard, Petaluma, CA 94954; Telephone number: 707/778-1118. The Corporate Officers are Ronald Blanquie, President, and Daniel A. Blanquie, Executive Vice President. IT IS HEREBY AGREED by and between the parties signing this Contract, as follows: I. GENERAL The CITY desires to have unified claims management and risk management consulting services. INSURANCE CONSULTING ASSOCIATES, INC. is a Claims Management and Consulting firm experienced in providing the requested services and is ready and capable to perform such services for the CITY. II. SERVICES The CLAIMS ADMINISTRATOR will assist the CITY in the management of the CITY's liability claims program. The CITY will transmit promptly to the CLAIMS ADMINISTRATOR all verified claims which it receives and will notify the CLAIMS ADMINISTRATOR through Incident Reports of circumstances which it believes may give rise to future claims. The CLAIMS ADMINISTRATOR will perform no I cof'-Dy investigation of Incident Reports without the express request of 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 recommendations 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 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 counsel specified and approved in advance by the CITY. It will receive and review all expense billings related to pending cases and, before approving such billings for payment, will secure any necessary supportive documentation. Absent direction from the CITY to the contrary, it will attempt to secure open or limited extensions of time on cases which it believes are likely to be resolved more quickly, efficiently, and economically in that manner. Releases of All Claims will be obtained from all claimants receiving settlements from the CITY through the CLAIMS ADMINISTRATOR. The CLAIMS ADMINISTRATOR will provide timely and appropriate reporting to the excess insurers of the CITY in a manner consistent with the reporting guidelines provided to it by the carriers. It will make itself available to the City Council for discussion of pending cases. Consistent with the expressed wishes of the CITY, it will make itself available for scheduled claim reviews with the CITY. It will provide to the CITY a monthly computerized Loss Run of pending and closed cases sorted in a format to be approved by the CITY. The CLAIMS ADMINISTRATOR will perform loss control analysis and consulting services for the CITY and will assist the CITY with risk management services in a manner and to an extent agreed upon. It will encourage cooperative activity amongst the various other firms providing administration or consulting services to the CITY. III. DEFENSE. COMPROMISE OR SETTLEMENT OF CLAIMS Settlement authority will be ADMINISTRATOR from the CITY or, piercing the CITY's self-insured CITY and its Excess Insurer. Ab the contrary from the CITY, 1 authorized to incur on behalf including, but not limited to charges for court reporters, exr obtained by the CLAIMS .n the event of an exposure retention, jointly from the ant specific instructions to ie CLAIMS ADMINISTRATOR is of the CITY defense costs ttorney fees, court costs, rts, technical analyses and reviews, medical examinations, ana relatea items as are necessary or appropriate in the judgment of the CLAIMS ADMINISTRATOR or defense counsel for the proper defense of any case. Further, the CLAIMS ADMINISTRATOR is expressly authorized to issue voucher for such costs and for settlements and judgments utilizing a designated Trust Account which is funded and maintained by the CITY. IV. PROFESSIONAL SERVICES 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 of this Contract are as follows: A. Rather than $4,800.00, the Computer Services Fee for the first year of this contract is $3,600.00. The 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 Services Fee is due in full at the beginning of each calendar year of the contract. However, for the convenience of the CITY, payments of $300.00 may be made monthly toward the remaining balance of the Computer Services Fee. B. Claims Administration: $ 50.00 C. Risk Manaaement and Loss Control Consultina Fees.: $ 75.00 Although $120.00 per hour is presently the current fee, this amount shall be reduced to $75.00 per hour if claims administration is performed by INSURANCE CONSULTING ASSOCIATES, INC. 3 V. D. Allocated Costs: Mileage rate $ .40/mile Color photographs (only those developed and mounted; no charge for those not used) $ 2.00/each Verbatim transcriptions (of recorded statements) $ 5.00/page FAX transmissions (only those originating at ICA's office; no charge for $ 2.50/1st page incoming FAX messages) 1.75/ea. page Long distance telephone calls (all calls out of the 707 or 415 area codes) $ .25/minute Cassette tapes (for recorded statements) $ 1.75/each Photocopies $ .30/copy Computer record searches (As incurred) Video cassettes (As incurred) Public records & miscellaneous expenses (As incurred) Travel expenses (As incurred) Necessary expenses (As incurred) Computer reports and services (As incurred) Posting costs (As incurred) The CLAIMS ADMINISTRATOR shall submit Statements on a monthly basis showing an itemized breakdown by claim or by consulting activity. Billings are payable within 30 days of presentation and are subject to a late charge of 1% per month imposed on the next billing cycle. Annual increases in time -and -expense charges are authorized, in an amount not to exceed ten percent (10%) per year. TERM The term of this Contract shall be for a period of one (1) year beginning May 1, 1993 and terminating at midnight, April 30, 1994. This contract may be terminated by either party for any reason upon sixty (60) days written notice. The Contract may be renewed subject to renegotiation of terms and conditions by the parties hereto. 4 For the purpose of maintaining the continuity of claims administration for the CITY, the CLAIMS ADMINISTRATOR may continue to perform services on a month-to-month basis, at the rates set forth within Section III, above, subsequent to the termination of this contract unless 60 days' notice is given by the CITY to terminate. VI. INDEPENDENT CONTRACTOR It is expressly agreed that the CLAIMS ADMINISTRATOR shall have the status of an Independent Contractor and shall not be deemed to be an officer, employee, or agent of the CITY. VII. MUTUAL HOLD HARMLESS AND INDEMNIFICATION, Each party hereto agrees to indemnify, hold harmless and defend the other, its officers, agents, and employees from and against any and all claims, demands, liability, costs and expenses of whatever nature, including court costs and counsel fees arising out of injury, death, or loss to any person or persons, or loss of, or physical damage to, any property resulting in any manner from the sole negligence or willful acts of the responsible party, its agents, employees, licensees, or guests in the making or arising out of the performance of this agreement. In the event it is determined by settlement or litigation that there is a joint liability and/or responsibility of the parties for the settlement of judgment, the parties hereto agree that the responsibility for payment of such settlement or judgment shall be borne by the parties in proportion to the share of fault as determined by the court or jury in case of a judgment, and by agreement, or arbitration in the event that agreement cannot be reached, in the case of a settlement. The parties further agree hereunder that in those cases described under this paragraph, each party shall bear its own costs and attorney fees. 5 VIII.RESPONSIBILITY FOR CLAIMS ADMINISTRATION FEES It is agreed that the CITY is liable for payment for 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 ADMINISTRATOR's billings remain the responsibility of the CITY, and the CLAIMS ADMINISTRATOR is expressly authorized to continue all claims management activities which it deems to be appropriate until it receives from the CITY express written instructions to terminate any involvement in the claim or grouping of claims. IR. OWNERSHIP OF FILES It is agreed that the claim files maintained in the CLAIMS ADMINISTRATOR's offices are the property of the CITY and may be reviewed upon reasonable notice. Upon termination of this Contract, possession of the files will be transferred to the CITY which will pay the reasonable costs of any activity associated with the transfer including, but not limited to, the cost of photocopying in whole or in part any and all claims files are required for the CLAIMS ADMINISTRATOR to be in compliance with any law pertaining to the maintenance of records by a licensed adjusting firm. The CLAIMS ADMINISTRATOR is authorized to destroy any claim file without notice to the CITY after seven years following the date of file closure. R. INSURANCE Without limiting the CLAIMS ADMINISTRATOR's obligation to indemnify the CITY hereunder, the CLAIMS ADMINISTRATOR shall maintain and keep in force during the term of this Agreement the following insurance. A. Bodily Injury and Property Insurance for all activities of CLAIMS ADMINISTRATOR (and its subcontractors) arising out of or in connection with this Agreement, written on a Comprehensive General Liability form including, but not limited to, premises and operations, independent contractors, products and completed operations, contractual liability and personal injury, in an amount no less than $1,000,000 combined single limit for each occurrence and aggregate. B. Non -owned automobile liability insurance covering bodily injury and property damage for all activities of the CLAIMS ADMINISTRATOR arising out of or in connection with this Agreement in an amount no less than $300,000.00 combined single limit for each occurrence. Each said Comprehensive General Liability and Insurance policy shall be endorsed with the following specific language: The CITY OF SAN RAFAEL, its officers, agents, and employees, is named as an Additional Insured under this policy, but only with respect to operations conducted by the Named Insured, subject to the following limitations: 1) The inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies have been issued to each insured. 2) The insurance provided herein is primary with respect to damages caused solely by the negligence or wrongful conduct of the Named Insured, and no insurance held or owned by the CITY OF SAN RAFAEL shall be called upon to contribute to that portion of a loss which is caused by the sole negligence or wrongful conduct of the Named Insured. IFA 3) The coverage provided by this policy shall not be reduced or canceled without thirty (30) days' written notice given to the CITY OF SAN RAFAEL. C. Professional Malpractice Insurance for all activities of the CLAIMS ADMINISTRATOR (and its subcontractors) arising out of or in connection with this Agreement in an amount no less than $1,000,000 combined single limit for each occurrence. Said insurance policy shall remain in full force and effect for no less than one year following the completion of work under this Agreement. D. Workers' Compensation Insurance to cover CLAIMS ADMINISTRATOR's employees (and as required by the Labor Code of the State of California.) The CLAIMS ADMINISTRATOR shall require all subcontractors to provide Workers' Compensation Insurance for all of their employees. Each said Workers' Compensation policy and Professional Malpractice Insurance Policy shall be endorsed with the following specific language: This policy shall not be canceled or materially changed without first giving thirty (30) days' prior notice to the CITY OF SAN RAFAEL in writing. %I. ARBITRATION The CITY OF SAN RAFAEL and the CLAIMS ADMINISTRATOR agree to submit any claims arising under this Contract to binding arbitration pursuant to the current provisions of the California Code of Civil Procedure and any successor statutes. In the event of any claim between the parties hereto arising out of the terms and conditions of this agreement, the prevailing party, whether by way of arbitration or by judicial litigation, shall be entitled to reasonable attorney's fees and costs as determined either by the arbitrator or by a court of competent jurisdiction. XII. LIMITATION OF LIABILITY It is agreed that the CLAIMS ADMINISTRATOR will provide services utilizing good faith efforts based upon its experience in claims management and consulting. The CLAIMS ADMINISTRATOR provides no warranty, express nor implied, that its services will result in any specific outcome for any case nor any reduction in the frequency, severity, or cost of any liability claims (s) nor any incidents giving rise to claims, no matter how caused. XIII.TERMINATION OF SERVICES The responsibility of the CLAIMS ADMINISTRATOR to provide any services terminates on the date that this Contract 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 parties agree that the CLAIMS ADMINISTRATOR will continue to handle any aspect of any claims or grouping of claims, charges for services so rendered will be billed at the rates then in effect as established by the CLAIMS ADMINISTRATOR. XIV. NONDISCRIMINATION During the performance of this Contract,the CLAIMS ADMINISTRATOR and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age (over 40), gender, or sexual orientation. The CLAIMS ADMINISTRATOR and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Sections 129001 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990, V.I. set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this Contract by reference and made a part hereof as if set forth in full. The CLAIMS ADMINISTRATOR and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Date ATTEST: j1EANXE VZ:�LMI�WI . City Clerk Date CITY OF SAN RAFAEL BY: -� v �Aurized.Signature ALBERT J. HOBO, Magor INSURANCE CONSULTING ASSOCIATES, INC. Byl ,� Ronald R. Blanquie ' President 10