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HomeMy WebLinkAbout1981-06-16; City Council; Resolution 6588* * 1* > I 2 a a. 4 c CI E 7 E 9 1c 13 1% 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 6588 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN AGREEMENT WITH CARL WARREN & CO. FOR LIABILITY CLAIMS ADMIN- ISTRATION SERVICES. WHEREAS, the City of Carlsbad has established a liability self-insurance program; and WHEREAS, as part of this program the City will require claims administration services; and WHEREAS, the City has received and evaluated proposals from various firms to supply such service. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. That the above recitations are true and correct. 2. That the Agreement between the City of Carlsbad and Carl Warren & Co. for claims administration services, attached hereto as Exhibit A is hereby approved. 3. That the City Manager is hereby authorized to sign the agreement on behalf of the City. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 16th day Of June 1981 by the following vote, to wit: AYES : Council Wers Packard, Casler, hear, Lewis and Kulchin NOES: ?!hE ABSENT: None RONALD C. PACKARD, Mayor ATTEST: n / EXHIBIT A AGREEMENT BETWEEN THE CITY OF CARLSB.AD AND CARL WARREN & CO. FOR CLAIM ADMINISTRATION SERVICES THIS AGREEMENT, entered into this day of , 1981, by and between the City of Carlsbad hereinafter called "CITY" and Carl Warren & Co, , hereinafter called "CONTRACTOR', for certain services as outlined in connection with the duties and responsibilities of adminis- tering a program of self-insurance. * WITNESSETH : WHEREAS, CITY has undertaken to self-insure and is in need 'of .. . expertise, not now within the CITY to administer such self-insurance program; and WHEXEBS, CONTRACTOR is engaged in the supervision and administration of programs for self-insurance, NOW, THEREFORE, CITY AND CONTRACTOR mutually understand and agree as follows: 1, GENERAL. CONTRACTOR shall: A, Supervise and administer the Self-Insurance Liability program for CITY: and B. Represent the CITY in all matters related to the investigation, adjustment , processing, supervision and resolution of general liability and automobile liability claims for money damages asserted by third parties against the CITY: and C. Provide to CITY during the term of this Agreement all the - .. services more particularly set forth hereinafter. 2. INVESTIGATIVE SERVICES: A. CONTRACTOR shall provide complete investigative service including, but not limited'to: (1) Receipt of and examination of all reports of accidents; incidents, claims, or cases which are or may be the subject .* .... of such liability claims. The investigation of such accidents, incidents, claims or cases where examination warrants such investigation, or, when requested by CITY, such investigation to include on-site investigation, photographs, interviewing of witnesses, determination of. losses, and other such investigative services necessary to determine liability services as set forth in Paragraph 2-B herein. CONTRACTOR shall provide the herein described service on a 24-hour, 7 days a week basis, to receive telephone reports of any incident or accident which may be the sub- ject of a liability claim, and shall provide immediate investigation services, if the incident or accident so requires, to the extent necessary to provide a complete investigation. B. Allocated Expenses reasonable and supportable extraordinary services where expert and professional assistance is required, such as professional photography, independent medical examinations, professional engineering services, and laboratory services. shall order such Services only after prior written CITY authori- zation, except that such authorization may be given orally CITY agrees to pay for the cost of all CONTRACTOR where s,uch services are urgently required. / -2- 3. CLAIMS ADJUSTMENT SERVICES. CONTRACTOR shall provide complete claims adjustment services on each accident or incident which is or may be the subject of a liability claim against the CITY. Such services shall include, but not limited to: A. The maintenance of a claim file on each potential or actual claim reported to CONTRACTOR. * .. B. Whenever its investigation results in a determination that CITY has sustained a liability to a third party, CONTRACTOR shall process any-such claim or potential claim for settlement in accordance wikh the CITY's instructions for settlement of such claims. -- C, The protection of the CITY'S interests in all cases when recovery may be available to the CITY from third parties. D. Notification of CITY's primary and excess carriers of all claims which exceed the CITY's self-insurance limit, Retention and maintenance of liaison between the 'insur- ante carriers and the CITY on matters affecting the - adjustment of such claims. E. Obtain all Release Agreements on settlement bf any claim or potential claim. -. ADMINISTRATIVE SERVICES CONTRACTOR shall provide at least the 4, e .. .. 5. following administrative services: A, Assignment of a Principal Account Adjuster to the City to provide liaison between CITY and CONTRACTOR. B. Provide CITY with tabulated Monthly Status Report on all re- ported claims during the term of this Agreement, indicat-ing the status of each reported open claim assigned to CONTRACTOR, the details of each such claim, the outstanding reserves for each claim and details of all claim payments during the month. The Status Report shall be delivered.to CITY within twenty (20) days of the close of each calendar month. C. Periodically review and adjust reserves on all open claims, LEGAL SUPPORT SERVICES CONTRACTOR shall provide at least the following legal support services on each claim wherein the claimant has commenced litigation: A. Upon notification by the City that litigation has been filed on an open claim, CONTRACTOR shall meet,with the CITY's trial attorney assigned to handle the case by the CITY and provide such trial attorney with all information and files concerning claim. t B. Maintain liaison with the City Attorney and CITY's trial attorney and provide such investigation services as are re- quired by such ,attorney during pre-trial and trial stages. Assist CITY trial attorney in answering any interrogatories C, filed by the claimant. -. 'D. Assist CITY personnel in Small Claims actions filed against CITY e 6. .* 7. , a. 9. on open claims handled of Risk Management and by CONTRACTOR by providing the Administrator Safety with: (1) names of any witnesses to be subpoenaed, (2) necessary evidence, and (3) assistance at the trial, including appearance. TERM: This Agreement shall take effect at 12:Ol a,m, 1st - day of July, 1981, and shall be automatically renewed on 1st day of July each year thereafter unless and until as hereinafter provided. CONS IDERATION otherwise terminated 'A. CITY agrees to pay CONTRACTOR a single charge of $11 for each . claim on which a reserve is established for monthly com- puterized status report on all reported claims. In addition, the claim handling charges will be: Adjuster's hourly rate, ..$22, $ .30 per mile, $1.25 per print for color photographs and usual file expenses to include telephone, photocopy, stenographic and office expense. PAYMENT Commencing ' day of September, 1981 and every three months thereafter, CONTRACTOR shall submit to CITY, itemized billings for all services performed under the terms of this Agreement during the proceeding quarter, at which time said billings shall be due and payable by CITY. Payments shall be transmitted to CONTRACTOR, 2600 Wilshire Blvd,, Los Angeles 90057. CITY RESPONSIBILITIES of all relevant documents upon request and without charge and shall CITY shall provide CONTRACTOR with copies make available any CITY employee for interviews by CONTRACTOR at at reasonable times concerning any investigation of a claim or incident pursuant to this Agreement. 10. 11. .* .. 12. CONFLICT OF INTEREST In the event a claim or incident is reported to CONTRACTOR by CITY and it is determined that the actual or potential claimants therein are also clients of CONTRACTOR, then CONTRACTOR shall immediately notify CITY of such potential conflict of interest. If CITY elects to have an independent investigator and adjuster, vestigator and adjuster. CANCELLATION OF AGREEMENTI CONTRACTOR shall provide such an in- The Agreement may be terminated by CITY or CONTRACTOR with or notice at least sixty (60) without cause upon giving wr'itten days prior to the date of termination. In case of termination by the CITY a prorata adjustment will be made on any sum paid under Section 8 of this agreement. DISPOSITION OF' FILES ON TERMINATION OF AGREEMENT A. B. C. All files on each claim shall be the property of the CITY. In the event of expiration of the Agreement, and non-renewal thereof, CONTRACTOR shall bill the CITY, subject to the rates quoted in Provision 7-A hereinabove, for work completed by CONTRACTOR on each claim, and also promptly forward'all completed and pending claim files to the CITY. In the event of cancellation of this Agreement by CITY, CONTRACTOR shall return all files to CITY, unless CITY request CONTRACTOR to continue to process any files, in which event CONTRACTOR shall continue to process such files on- a time- ancl-'expense basis as provided in the CONTRACTOR'S Rate Manual at the time such services are rendered. ..- -6- 13. HOLD HARDLESS A. CITY agrees to defend any legal action commenced against CONTRACTOR caused directly or indirectly by the wrongful or negligent acts of CITY'S officers, employees, agents or sothers engaged by CITY; and indemnify CONTRACTOR against any liability, loss, cost or damage including attorney's fees resulting therefrom. CONTRACTOR agrees to defend any legal action commenced against CITY caused directly or indirectly by the wrongful or negligent * * B. .. acts of the CONTRACTOR, employees, agents or others engaged by CONTRACTOR and to indemnify CITY against any liability, loss, cost or damage including attorneys' fees resulting therefrom. 14. INSURANCE A. 'CONTRACTOR agrees at all times during the term of this Agreement to maintain in force comprehensive General Liability Insurance which insures CONTRACTOR in the amount of One Million Dollars ($1,000,000) against any loss or damage as a result of wrongful or negligent acts or acts by CONTRACTOR. B. CONTRACTOR agrees to maintain in force at all times during the term of this Agreement, Workers' Compensation Insurance as required by law. .. C. In addition to general liability insurance required herein, CONTRACTOR agrees to maintain in force at all times during the term of this AGREEMENT, Professional Liability Insurance in the amount of One Million Dollars ($1,000,000) which shall provide coverage for any damages or losses .suffered by CITY as a result of any error or omission or neglect by CONTRACTOR which-arises out of the professional services of this . 0 .* . .. .. 15 , 16. 17. D. E. Insurance policies shall provide that the insurance coverage shall not be cancelled or reduced by the insurance carrier without CITY having been given thirty (30) days prior written notice thereof by such carrier. not cancel or reduce said insurance coverage. At all times during the term of this Agreement, CONTRACTOR shall maintain on file with the City Clerk a certificate of the CONTRACTOR agrees that it will insurance carrier or "carriers showing that the aforesaid policies are in effect in the amounts above provided, and that the policies cannot be cancelled or reduced except on thirty (30) days notice . to- CITY. CONTRACT ADMINISTRATOR: The Assistant City Manager/Administration is designed as the Contract Administrator for CITY: provided, however, the designation may be changed by the City Manager by letter to CONTRACTOR. SUCCESSORS AND ASSIGNS: This Agreement covers professional services .of a specific and unique nature and CONTRACTOR shall not assign, sublet nor transfer its interest in this Assignment without the prior written consent of the CITY. INDEPENDENT CONTRACTOR:. CONTRACTOR shall perform all services Neither CONTRACTOR hereunder as an independent contractor. nor any other person associated with him in the performance of * said services shall be considered'an employee of CITY, X X X X -8- e IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY OF CARLSBAD, a Municipal Corporation of the State of California BY RONALD C. PACKARD, Mayor ATTEST: .* ... ALETHA L. RAUTENKRANZ, City Clerk By KAREN R, .SYWENS, Depw City Clerk CARL WARREN & CO. APPROVED AS TO FORM: \INCENT F. BIONDO, JR. City Attorney