HomeMy WebLinkAbout1979-284
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RESOLUTION NO. '19-;). $~
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH JAMES G. PALERMO AND GERALD DERBY,
3 A PARTNERSHIP, DOING BUSINESS AS INLAND COUNTIES CLAIMS SERVICE
RELATING TO THE ADMINISTRATION OF A SELF-INSURANCE LIABILITY
4 PROGRAM.
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
8 hereby authorized and directed to execute on behalf of said City
9 an Agreement with James G. Palermo and Gerald Derby, a partnership
10 doing business as Inland Counties Claims Service, relating to the
11 administration of a self-insurance liapility program, a copy of
12 which is attached hereto, marked Exhibit "A" and incorporated
13 herein by reference as fully as though set forth at length.
14 I HEREBY CERTIFY that the foregoing resolution was duly
]5 adopted by the Mayor and Common Council of the City of San
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to wit:
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mee~ing thereof, held on
1979, by the following vote,
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Bernardino at a
the 1 day of
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AYES:
Councilmen
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NAYS:
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ABSENT:
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C~ty C erk
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The foregoing resolution is hereby approved this
of ~ ' 1979.
day
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A G R E E MEN T
(Self-insurance Service)
THIS AGREEMENT is made and entered into thisC\~~day of
"'* V' , 1979, by and between the CITY OF SAN
BERNA~DINta municipal corporation, hereinafter called "City",
and JAMES G. PALERMO and GERALD DERBY, a partnership, doing
business as INLAND COUNTIES CLAIMS SERVICE, hereinafter called
"Contractor".
WIT N E SSE T H:
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WHEREAS, City has undertaken a self-insurance program; and I
WHEREAS, Contractor is engaged in the supervisio~ and
administration of like programs for self-insurance,
NOW, THEREFORE, for and in consideration of, the mutual
obligations hereby assumed, and the performance of the acts here-
in after set forth, the parties hereto agree as follows:
1. General. Contractor agrees to assist and advise in
the administration of the self-insurance liability prOgram for
City, and shall act as the representative in connection with the
investigation, adjustment, processing, supervision and resolution
of claims for general liability, automobile liability and other
potential claims for money damages asserted by third parties
against the City which are premised upon allegations of negligent
or careless acts or omissions of parties for whom City is alleged
to be legally responsible, and agrees further to provide to City
during the term of this agreement all services more particularly
set forth hereinafter.
2. Investigative Services.
A. Contractor agrees to provide complete investigativ
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services to include but not limited to:
(1) An examination of all reports of accidents,
incidents, claims, or cases which are or may be the subject of
such liability claims.
(2) The investigation of such accidents, incidentl,
claims or cases where examination warrants such investigation, or
when requested by City; such investigation to include on-site
investigation, photographs, interviewing of witnesses, determina-
tion of losses, and other such investigative services necessary to
determine liability and losses, but not to include extraordinary
professional services as set forth in subse.ction "B" herein.
(3) Contractor agrees tOT,maintain service on a
24-hour, 7 days a week basis, to receive telephone reports 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. nec.essary to pro-
vide a complete investigation.
B. Allocated Expenses - City agrees to pay for the
cost of all extraordinary investigative services where expert and
professional assistance is required, such as professional photo-
graphy, independent medical examinations, professional engineering
services, and laboratory services. Contractor shall order such
services only upon written authorization by the City Administrator
or his authorized representative, provided such authority may be
given orally only when such services are urgently required.
3. Adjustment Services. Contractor agrees to provide
complete adjustment services on each accident or incident which
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is or may be the subject of a liability claim. Such services
shall include:
A. The maintenance of a claim file on each potential
or actual claim referred to Contractor.
B. Whenever its investigation results in a determina-
tion that City has sustained a liability to a third party, Con-
tractor shall process any such claim or potential claim for
settlement in accordance with instructions and policies of City
for settlement of such claims.
C. Notification of City's primary and excess carriers
of all claims which exceed the City's retention, and maintenance
of liaison between the insurance carriers and the City on matters
affecting the adjustment of such claims.
D. Obtaining all Release Agreements on settlement of
any claim or potential claim.
4. Administrative Services. Contractor ,agrees to provide
he following administrative services:
A. Assignment of a Principal Account Adjuster to City
o provide liaison between City and Contractor.
B. The periodic review and adjustment of reserves for
11 open claims.
5. Legal Support Services. Contractor agrees to provide
he following legal support services for each claim that a third
arty claimant has commenced litigation upon:
A. Liaison with the trial attorney assigned to
itigation for the open claim. Contractor shall provide all
ecessary trial preparation authorized by the City.
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1 B. Assistance to the trial attorney in answering any
2 interrogatories filed by third parties.
3 6. Period of Agreement. This agreement is for a period of
4 twelve (12) months commencing at 12:01 a.m., July 1, 1979, and
5 ending midnight, June 30, 1980.
6 7. Consideration.
7 A. All claims that require field investigation,
8 adjustments, or services, as directed by standards of good and
9 professional claims handling will be billed at the rate of $18.00
10 per hour for direct hours expended, $0.30 per mile for automobile
11 usage, $1.50 per print for color photographs and the usual file
12 expenses, such as telephone, photocopy, stenographic and office
13 items, at actual cost. All file expenses charged hereunder shall
14 be only those direct expenses attributable to the file being
15 processed by Contractor. Contractor will not initiate services
16 under this contract where the billing will exceed Three Hundred
17 Dollars ($300.00) in anyone calendar month without prior
18 authorization in writing from the City's Risk Management Coordin-
19 ator.
20 B. City agrees to reimburse Contractor for all
21 Allocated Expenses incurred pursuant to Section 2-B herein which
22 are supported with proper invoices.
23 8. Time of Payment and Billing. All billings shall be
24 computed to the nearest one-tenth (1/10) of an hour. All billings
25 shall be based on a calendar month and submitted to the City no
26 later than fifteen (15) days after the expiration of the calendar
27 month. The City shall pay the Contractor for all monthly billings
28 no later than twenty (20) days after receipt.
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1 9. City Responsibilities. City shall provide Contractor
2 with copies of all relevant documents upon request and without
3 charge and shall make available any employee for interviews by
4 Contractor at reasonable times and places for any investigation
5 of a claim or incident being processed by Contractor pursuant to
6 this agreement.
7 10. Conflict of Interest. In the event a claim or incidert
8 is reported to Contractor by City and it is determined that the
9 third party claimant or a cross-complainant is also a client of
10 Contractor to whom Contractor is committed to serve by contract,
11 and there is a dispute as to the liability of t~e parties or as
12 to the amount of the loss, Contractor shall notify City of the
13 conflict of interest. If City elects to have an independent
14 investigator and adjuster, Contractor shall provide and select
15 such an investigator and adjuster subject to the concurrence of
16 City.
17 11. Cancellation of Agreement. The agreement may be
18 terminated by City with or without cause upon giving Contractor
19 written notice at least thrity (30) days prior to the termination
20 date.
21 12. Disposition of Files on Termination of Agreement.
22 A. All files for each claim and all materials belong-
23 ing in the files shall be the property of the City.
24 B. In the event of termination of this agreement, Con-
25 tractor shall bill the City, subject to the maximum contract price
26 and the rates quoted in paragraph 7-A, for work completed on each
27 claim file and adjuster will promptly return all claim files to
28 the City.
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C. In the event of cancellation of this agreement
2 by City, Contractor shall return all files to City unless City
3 requests Contractor to continue to process any files. Contractor
4 will continue to process on a time and expense basis as provided
5 in the Contractor's Rate Manual at the time such services are
6 rendered.
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13. Hold Harmless.
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A. City agrees to defend any legal action commenced
9 against Contractor caused directly or indirectly by the wrongful
10 or negligent acts bf City's officers, employees, agents, or
11 others engaged by City; and indemnify Contractor against any
12 liability, loss, cost or damage, including attorneys' fees, result
13 ing therefrom.
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B. Contractor hereby agrees to, and shall, defend any
15 legal action commenced against City, its elective and appointive
16 boards, commissions, officers, agents and employees caused
17 directly or indirectly by the wrongful or negligent acts of the
18 Contractor, employees, agents or ot:hers engaged by Contractor and
19 indemnify City against any liability, loss, cost or damage,
20 including attorneys' fees, reSUlting therefrom.
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14. Notices. All notices herein required shall be in
22 writing and delivered in person or sent by first class mail,
23 postage prepaid, addressed as follows:
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City of San Bernardino
300 North "n" Street
San Bernardino, CA 92418
Inland Counties Claims Service
515 No. Arrowhead Avenue
Suite 103
San Bernardino, CA 92401
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15. No Assignment. Contractor shall not assign this
agreement, or any interest therein or part thereof, or any right
or privilege appurtenant to it.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the day and year first above written.
ATTEST:
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Approved as to form:
INLAND COUNTIES CLAIMS SERVICE
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By ('~;.. ~~
/. . ~AMl'IS G:' PALERMO
C. .
By
GERALD DERBY
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