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HomeMy WebLinkAboutReso 1984-11687 RESOLUTION NO. 11687 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SERVICE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CARL WARREN AND COMPANY The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City of Chula Vista has undertaken to become self-insured to a limited extent for the purposes of public liability insurance, and WHEREAS, the City has retained settlement authority of all undisputed property damage claims to the extent of $500 per occurrence, and WHEREAS, said policy requires the services of an admini- strative organization to process claims, investigate accidents and submit professional services relating to settlement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain agreement entitled Service Agreement between the City of Chula Vista and Carl Warren and Company dated the 26th day of June , 1984, attached hereto as Exhibit "A" and incorporated herein by reference as if set forth in full, be, and the same is hereby approved. BE IT FURTHER RESOLVED that with the exception of the City retained settlement authority listed above, Carl Warren and Company shall have direct claims settlement authority to the extent of $1,000 per occurrence without prior approval by the City of Chula Vista, and that Carl Warren and Company shall have claims settlement authority to the extent of $1,001 to $5,000 with the concurrence of the City Manager and the City Attorney. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said Service Agreement for and on behalf of the City of Chula Vista. as to form by " , I Ii I,r -{, 'Yr' ///7/1 Jl bJ _________' ,,/,'"!./ ....i.&...- ~..,,-,% omas J. Harron, City -, 'Attorney ''----'" JLA VISTA, CALIFORNIA, this 84 , by ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF 26th day of June the following vote, to_it: McCandliss, Scott, Malcolm, Cox, Moore Councilmen ::S: rES: STAIN: Councilmen None CoLncilmen None None :iENT: Councilmen R(J" e City of Chula Vista ~./ City ,TE OF CALIFORNIA ) JNTY OF SAN DIEGO ) s s. (OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 11687 ,and that the some has not been amended or repealed. ED (seal) City Clerk ,660 SERVICE AGREEMENT THIS AGREEMENT, entered into this 26th day of June 1984, by and between THE CITY OF CHUrA VISTA, a municipal corporation, hereinafter called "City" and CARL WARREN AND COMPANY, 10150 Sorrento Valley Road, #315, San Diego, California 92121, hereinafter called "Contractor" for certain services as outlined in connection with the duties and responsibilities of administering a program of self-insurance. WIT N E SSE T H . ------- WHEREAS, City has undertaken to self-insure and is in the need of expertise, not now within the City to administer such self-insurance program, and WHEREAS, 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 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 services 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. R-1l687 -1- (2) 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 and losses but not to include extraordinary professional services set forth in Paragraph 2-8 herein. (3) Contractor shall provide the herein described service on a 24-hour, 7 days a week basis, to receive telephone repcrts of any incident or accident which may be the subject 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. 8. Allocated Expenses. City agrees to pay for the cost of all reasonable and supportable extraordinary ser- vices where expert and professional assistance is required, such as professional photography, inde- pendent medical examinations, professional engi- neering services, and laboratory services. Con- tractor shall order such services only after prior written City authorization, except that such authori- zation may be given orally where such services are urgently required. 3. CLAIMS ADJUSTMENT SERVICES. The City of Chula Vista shall retain settlement authority of all undisputed property damage claims to the extent of $500 per occurrence and such claims shall not be administered by Con- tractor. Contractor shall have claims settlement authority to the extent of $0 to $1000 in disputed or bodily injury claims in cooperation with the Risk Manager and $1001 to $5000 with the Concurrence of the City Manager and City Attorney. The services of Contractor shall include, but not be limited to: A. The maintenance of a claim file on each potential or actual claim repcrted to Contractor. B. Whenever its investigation results in a determination tllat City has sustained a liability to a third party, Contractor shall process any such claim or potential claim for settlement in accordance with the City's instructions for settlement of such claims. -2- ~~//tfJ7 C. 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 insurance carriers and the City on matters affecting the adjustment of such claims. D. Obtain all Release Agreements on settlement of any claim or potential claim. 4. ADMINISTRATIVE SERVICES Contractor shall provide at least the fOllowing admini- strative services: A. Assignment of a Principal Account Adjuster to the City to provide liaison between City and Contractor. B. Provide City with data on all reported claims during the term of this Agreement, indicating the status of each such claim, the outstanding reserves for each claim and details of all claim payments during the month. The Status Report shall be prepared by the City. C. Periodically review and adjust reserves on all open claims. 5. 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. B. Maintain liaison with City's trial attorney and pro- vide such investigation services as are required by such attorney during pre-trial and trial stages. C. Assist City trial attorney in answering any interroga- tories filed by the claimant. D. Assist City Personnel in Small Claims actions filed against City on open claims handled by Contractor by providing the Administrator of Risk Management and Safety with: (1) names of any witnesses to be subpoenaed, (2) necessary evidence, and (3) assistance at the trial, including appearance as a witness, if necessary. -3- ? 1/ Ie ~//[f7 6. PERIOD OF AGREEMENT. This Agreement is for a period of twelve (12) months com- mencing at 12:01 a.m., July I, 1984 and ending June 30, 1985, after which date this agreement shall continue in effect until cancelled by either party. 7. CONSIDERATION. City agrees to pay, effective July 1, 1984, the follcwing claim handling charges: Services (Adjusting Investigation) Photographs Transportation Secretarial Office Expense $26.00 per hour $1.50 per color print 350 per mile $3.50 per page 10% of services + $13.00 8. TIME OF PAYMENT. City agrees to pay Contractor within fifteen (15) days from date of billing. Payments shall be transmitted to Contractor at 10150 Sorrento Valley Road, #315, San Diego, California 92121. 9. CITY RESPONSIBILITIES. City shall provide Contractor with copies of all relevant documents upon request and without charge and shall make available any City employee for interviews by Contractor at reasonable times concerning any investigation of a claim or incident pursuant to this Agreement. 10. 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 so that City may choose an independent investigator and adjuster. 11. CANCELLATION OF AGREEMENT. This Agreement may be terminated by City with or without cause upon giving Contractor written notice at least thirty (30) 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. -4- /? ... //~p 12. DISPOSITION OF FILES ON TERMINATION OF AGREEMENT. A. All files on each claim shall be the property of the City. B. 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 herein- above, for work completed by Contractor on each claim, and also promptly forward all completed and pending claim files to the City. C. In the event of cancellation of this Agreement by City, Contractor shall return all files to City, unless City requests Contractor to continue to process any files on a time and expense basis as are provided in the Contractor's Rate Manual at the time such services are rendered. 13. HOLD HARMLESS. 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 other engaged by City; and indemnify Contractor against any liability, loss, cost or damage including attorneys' fees resulting therefrom. B. Contractor agrees to defend any legal action co~nenced against City caused directly or indirectly by the wrongful or negligent acts of the Contractor, employees, agents or other engaged by Contractor and to indemnify City against any liability, loss, cost or damage including attorneys' fees resulting therefrom . CITY OF CHULA VISTA )1 i / Mayor 0/ he U(i';.! 6f Chul~ .. . /1-, 41-1Ut/ // City Clerk CARL WARREN AND COMPANY Vista /Jitc4/ d~;1X./L. Michael Dekeina Approved as to form by ! . I I).. / " / .I/l,_ I; i ' -'", .. ,)-. "\,(....-11'./ y-.-. .,', ___f._......... ' \_,._'\,. Yity Attorney '\ !/; -5- /2 -//6Il