HomeMy WebLinkAbout1979-283
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1 I RESOLUTION NO, -? 1- 2 '1$
2 I RESOLUTION OF THE CITY OF S&~ BERNARDINO AUTHORIZING THE
EXECUTION OF AN AnREEMENT WITH FLEMING & ASSOCIATES RELATING TO
3 THE ADMINISTRATIoN. OF WORKERS' COMPENSATION CLAIMS AND GENERAL
LIABILITY CLAIMS.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
5 OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
7 hereby authorized and directed to execute on behalf of said City
8 an Agreement with Fleming & Associates, relating to the adminis~
9 tration of workers' compensation claims and general liability
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I claims, a copy of which
and::.incorporated herein
is attached hereto, marked Exhibit "A"
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by reference as fully as though set forth
12 at length.
13 I HEREBY CERTIFY that the foregoing resolution was duly
14 adopted by the Mayor and Common Council of the City of San
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on the
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day of
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meeting thereof, held
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Bernardino at a
, 1979 ,by the fOllowing
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vote, to wit:
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NAYS
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Councilmen ~ 11iA4lQ4-t~,. I::brUJ
DL/IA>>-t;' du---ti..L:>~ cpJJLflo)
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AYES:
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ABSENT:
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as to form:
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The foregoing resolution is
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of
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CJ
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1
A G R E E MEN T
2 ~Claims Administration - Workers' Compensation & General Liability
3 THIS AGREEMENT is made and entered into this ~day of
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~- , 1979, by and between the CITY OF SAN BERNARDINO,
la municipal corporation, hereinafter called "City", and FLEMING &
ASSOCIATES, a California corporation, hereinafter called
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"Consultant".
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WIT N E SSE T H:
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WHEREAS, City has undertaken the administration of its
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legally uninsured program for its employees pursuant to the
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Workers' Compensation Laws of the State of California, and of its
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self-insurance program for general claims liability against the
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City; and
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WHEREAS, Consultant is a State Certified Workers' Compen-
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sation Claims Administrator with extensive experience and
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expertise in establishing management practices and procedures for
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the administration of self-insurance programs; and
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WHEREAS, City desires to retain and employ Consultant to
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perform certain services in connection with the City's program
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for administering its own workers' compensation and general
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liability claims, and to perform the tasks and duties hereinafter
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set forth; and
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WHEREAS, Consultant desires to accept said employment upon
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the terms and conditions herein set forth,
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NOW, THEREFORE, in consideration of the performance of the
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mutual covenants and promises herein contained, at the time and
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in the manner specified herein, the parties hereto agree as
follows:
EXHIBIT "A"
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1 I. Term. The term of this agreement shall be for one
2 fiscal year commencing on July 1, 1979, and ending on June 30,
3 11980, unless sooner terminated as provided herein.
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II. Consultant's Services. During the term hereof, Con-
5 sultant shall work with and assist City's Risk Management Division
6 in order to promote, provide, establish and implement all
7 systems required to efficiently and thoroughly administer the
8 City's self-insurance programs with respect to workers' compen-
9 sation and general liability. Consultant's work shall include
10 the following:
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A. The review of all necessary work and the making of
12 appropriate recommendations to City as to the type, number and
13 quantity of forms required to report, log and process all claims.
14 This work shall include designing all appropriate documents,
15 including, but not limited to, face sheets, checks, payment orders ~
16 Change order notices, and other documents needed for City's I
17 'administration program. The said forms are to be adequate for
18 providing the information for statistical analyses to be provided
19 in the monthly Loss Experience Report set forth in Paragraphs E,
20 F and G hereof.
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B. The establishing, implementing and insuring of the
22 efficient operation of City's clerical procedures for claims
23 administration, including, but not limited to', a mail system, a
24 pay diary system, technical diary system, and complete systems
25 required for adequate administration and reporting of all claims.
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C. The establishing of all technical examination pro-
27 cedures, including, but not limited to, the establishment of
28 claims reserves, investigations, regulation of disability, medical
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and legal programs and preparation of litigation claims and
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contentions for workers' compensation and general liability claims
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and to audit liability claims on a quarterly basis.
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I D. In connection with A, Band C hereof, personally
establish the system, together with all ancillary systems adequate
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I for the administration of all claims, and instruct and train
City's Risk Management Coordinator and staff so that they are
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knowledgeable and competent to perform all clerical and technical
9 procedures for the complete administration of the program. As a
10 part of this procedure, Consultant shall:
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1. Spend a maximum of two full work days per quarter
12 on workers' compensation claims and two full work days per quarter
13 on liability claims performing his tasks set forth herein: pro~
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vided, that City's Risk Management Coordinator shall have the
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15 right to direct Consultant to spend fewer days during said quarter
16 City shall have the right to designate the specific days on which
17 Consultant is to be present performing the services.
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2. Answer all relevant telephone calls, written
19 communications, and inquiries of City's Risk Management Coordin-
20 ator in order to promote the installation of the administrative
21 system.
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E. Provide City with a computerized monthly comprehensive
23 Loss Experience Report: City shall promptly provide copies of all
24 face sheets, checks, payment orders, statistical change notices,
25 and any other necessary documents to Consultant in order that
26 Consultant may accomplish the foregoing. It is understood and
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agreed by the parties hereto that all such documents received by
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1 Consultant on or before the last Friday of each month shall be
2 processed into that month's Loss Experience Report.
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F. Provide City with monthly computerized comprehensive
4 Loss Experience Reports, which shall include printed detailed
5 departmental and summary reports by the lOth day of the month
6 following the cut-off date of the last working day of the
7 preceding month.
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G. Provide twelve (12) monthly reports for the term here-
IOf in a form satisfactory to City's Risk Management Coordinator,
and adequate and sufficient to provide City with all data necessart
for City's proper administration of its claims administration
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program.
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H. Spend two days per year preparing and submitting to
14 the City an annual fiscal report which will include reimbursement
15 costs received by the City from the State of California. Said
16 report shall be due not later than September 30, 1979.
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III. ~onsultant's Compensation.
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A. It is anticipated that Consultant's services as
19 required hereinabove will necessitate Consultant spending a
20 maximum of eighteen (18) work days for the City's Risk Mana~ement
21 Division. The term work day as used herein shall mean City's
22 normal eight (8) hour work day, and Consultant shall be present
23 for his work during all normal working hours. Consultant shall
24 be paid for his services at the per diem rate of $180.00 per work
25 day. It is estimated that City's total cost for Consultant's
26 services that are to be provided as set forth hereinabove will
27 be a maximum of $3,240.00 for the full fiscal year ending June 30,
28 1980. In the event more of Consultant's time is required in
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lorder to satisf~ctorily perform said services, then Consultant
shall perform said services without additional compensation
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3 from City when so authorized by the City. Consultant shall be
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responsible for and pay for all of his expenses in connection
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with his performance of the work set forth herein and in
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I connection with his visits to City.
Partial work days shall be prorated.
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B. Consultant's additional compensation for the service
9 provided pursuant to Section II F and G shall be at the rate of
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10 five dollars ($5.00) per claim, with an estimated cost of $3,000.0 :
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for the fiscal year, based upon the present number of claims in
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12 workers' compensation and general liability claims (400 workers'
13 compensation claims and 200 liability claims with ~ ten percent
14 [10%] possible growth factor).
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C. Consultant shall bill City on a monthly basis for the
16 per diem rate for his services as provided herein, and City shall
17 promptly pay said billings in accordance with City's normal
18 accounting and payment schedule.
IV. General.
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A. Consultant warrants his expertise and capabilities for,
21 the performance of all work to be performed by Consultant here-
22 under to be as set forth in the Second Whereas Clause hereinabove.
B. The experience, skill and expertise of Consultant is
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24 of the essence. Consultant shall not assign (whether by assign-
25 ment, novation or otherwise) this agreement in whole or in part
26 or any right or interest hereunder without the prior written
27 consent of City.
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C. Consultant covenants that he presently has no interest,
and shall not acquire any interest, direct or indirect, which
would conflict in any manner or degree with the performance of
services required to be performed under this agreement. Con-
sultant further covenants that in the performance of this agree-
ment no person having any such interest shall be employed.
D. No reports, information, data, etc., given to or
prepared or assembled by Consultant under this agreement shall be
made available to any individual or organization by Consultant
without the prior written approval of City.
E. No material produced in whole or in part under this
agreement shall be subject to copyright in the United States or
in any other country. The City shall have unrestricted authority
to publish, disclose, distribute and otherwise use, in whole or
in part, any reports, data, or other materials prepared under
this agreement.
F. Termination for Cause. If for any cause, Consultant
shall fail to fulfill in a timely and proper manner his obliga-
tions under this agreement, or if Consultant shall violate any of
the covenants, agreements or stipulations of this agreement, City
shall have the right to terminate this agreement by giving written
notice to Consultant of such termination and specifying the
effective date of such termination. In that event, all finished
or unfinished documents, data, studies, surveys, reports, files
or other material prepared by Consultant under this agreement
shall, at the option of the City, become its property and Con-
sultant shall be entitled to receive just and equitable pro rata
compensation for any satisfactory work completed on such documents,
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1 files or other materials. Notwithstanding the foregoing,
2 Consultant shall not be relieved of liability to City for damages
3 sustained by City by virtue of any breach of this agreement by
4 Consultant, and City may withhold any payments to Consultant for
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of set-off until such time as the exact amount of
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to City from Consultant is determined.
City may terminate this agreement at any time by
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8 giving written notice to Consultant of such termination and
9 specifying the effective date thereof at least fifteen (15) days
10 before the effective date of such termination. In such event,
II all finished or unfinished documents and other materials as des-
12 cribed in Parag~aph F above, shall at the option of the City
13 become its property. If the agreement is terminated by City as
14 provided herein, Consultant will be entitled to be paid all com-
15 pensation for work performed to the date of termination. If this
16 agreement is terminated due to the fault of Consultant, Paragraph
17 F hereof relative to termination shall apply.
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H. Should City require changes in the scope of the servic s
19 of Consultant to be performed hereunder, such changes, including
20 any corresponding increase or decrease in the amount of Con-
21 sultant's compensation, which shall be mutually agreed upon by
22 and between City and Consultant, shall be incorporated in this
23 agreement only by written amendment hereto.
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I. All notices herein required shall be in writing,
25 delivered in person or sent by certified mail, postage prepaid,
26 addressed as follows:
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City of San Bernardino
Risk Management Division
300 North "D" Street
San Bernardino, CA 92418
Fleming & Associates,
A California Corporation
PO Box 193
Sunland, CA 91040
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J. It is understood that the contractual relationship
of the Consultant to the City is that of independent contractor.
City shall not exercise control of the means or manner by which
Consultant provides services under this agreement. Consultant,
as an independent contractor, shall obtain at his own expense
any and all required business licenses and permits.
K. Consultant hereby agrees to, and shall, hold City, its I
elective and appointive boards, commissions, officers, agents and
employees, harmless from any and all liability for damaqes and
claims which may arise from Consultant's operation under this
agreement.
L. This constitutes the entire agreement between the
parties hereto, and said agreement can only be amended by written
stipulation executed by both parties.
M. Time is of the essence with respect to Consultant's
performance hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the date first hereinabove written.
ATTEST:
Jc1f~~
WILLIAM EDWARD FLEMING
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