HomeMy WebLinkAbout1986-312
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RESOLUTION NO. 86-312
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION AND RATIFICATION OF AN AGREEMENT WITH WARREN, McVEIGH,
3 GRIFFIN & SAVAGE RELATING TO AUDITING SERVICES.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
5 SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. The execution of an Agreement relating to
7 auditing services with Warren, McVeigh, Griffin & Savage,
8 effective July 21, 1986, by the City Administrator is hereby
9 authorized and ratified. A copy of said Agreement is attached
]0 hereto, marked Exhibit "A" and incorporated herein by reference as
11 fully as though set forth at length.
12 I HEREBY CERTIFY that the foregoing resolution was duly
13 adopted by the Mayor and Common Council of the City of San
14 Bernardino at a
regular
meeting thereof, held on
15 the
August
, 1986, by the following vote,
4th day of
16 to wit:
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Council Members Estrada, Reilly, Hernandez, Marks,
AYES:
Frazier, Strickler
NAYS:
None
ABSENT:
Council Member Quiel
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City Clerk
The foregoing resolution is hereby approved this 5th
./
//
day
24 of
August
, 1986.
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M'ayor of the Ci ty of San 'Bernardino
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26 Approved as to form:
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T
1
A G R E E MEN T
2 (Auditing Services)
3 T~S AGREEMENT is entered into this .z 3A/' day of
.I /1
4 , 1986, between the CITY OF SAN BERNARDINO, a
5 corporation, hereinafter "City", and WARREN, McVEIGH,
6 GRIFFIN & SAVAGE, claim management consultants, hereinafter
7 "Consultant".
8 The parties hereto set forth the terms and conditions upon
9 which certain auditing and evaluation functions will be provided
10 for the City as follows:
11 1. Consultant shall conduct a comprehensive audit and an
12 evaluation of the City's workers' compensation, general liability
13 and automobile liability claim administration program. Consultant
14 shall provide certain auditing and evaluation services as
15 specified in Consultant's Proposal dated June 30, 1986, and
16 supplemented by letter dated July 11, 1986. A copy of said
17 proposal and letter are annexed hereto as Exhibit "I" and
18 incorporated herein by reference. Consultant agrees to provide
19 all such services in accordance with the terms specified in
20 Exhibit "I", subject to modifications thereto set forth in this
21 agreement and as outlined to and accepted by Consultant on
22 July 11, 1986.
23 2. City retains the services of Consultant for the purposes
24 specified in Paragraph 1 above, and agrees to pay to Consultant
25 the fees for services specified in Exhibit "I". Total cost of the
26 services to the City shall not exceed $4,900 for the scope of work
27 outlined in the Proposal: should the audit uncover any
28 irregularity which requires investigation beyond the scope of work
1 stated in the Proposal, Consultant shall immediately notify and
2 confer with the City Attorney and thereafter the City may request
3 additional services which will be billed on a time-and-expense
4 basis pursuant to Consultant's letter dated July 11, 1986.
5 Payment for services shall be made within 20 days of receipt of
6 Consultant's final report and an itemized bill for services
7 rendered.
8 3. Consultant shall commence its auditing and evaluation
9 services on July 21, 1986, and shall complete the scope of work
10 detailed in the Proposal within two weeks. The Acting City
11 Administrator may extend the date of completion of the services
12 and report for an additional two week period or less subject to
13 a progress report being provided by Consultant.
14 IN WITNESS WHEREOF, the parties have hereunto executed this
15 agreement on the day and year first above written.
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WA REN, McVEIGH, GRIFFIN & SAVAGE
By
Title
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w....... McVeigh. Grltlln a ..~
c.tm wanegement ConIU"""
June 30, 1986
City of San Bernardino
300 North "0" Street
San Bernardino, California 92418
Attention: Ms. Susan Chow
Assistant to City Administrator
PROPOSAL POR WORKBBS' COMPDBA110If, GEJIB1lAL LIABIUfY
AIfD AUTOMOBILE LIABIUfY CLADI ADIIDOSTIlA1101f AUDft'
In response to your request for proposal, Warren, McVeigh, Griffin & Savage proposes to
conduct a comprehensive audit of the City of San Bernardino (City) workers' compensa-
tion, general liability and automobile liability claim adminstration program.
The purpose of the audit will be to evaluate the current systems, procedures and controls
in the self-insured, self-administered prGIram and offer recommendations for improve-
ments and control of the severity of 1011.
SCOPE
The following specific subjects will be investigated during the course of the audit:
1. The current systems, procedures and controls in the reporting, processing,
investigation and settlement of workers' compensation claims. Areas evaluated
will include:
o Reporting - timeliness and
completeness of Employer's Reports
o Staffing
o Caseloads
o Supervision
o Claimant contact
o Medical control
o Subrogation
o Diary system
o Investigation
o Temporary disability
o Permanent disability
o Medical payments
o Litigation
o Rehabilitation
o File documentation
2. !he current systems, procedures and controls in the reporting, processing,
mvestigation and settlement of general and automobile liability claims handled
under the claim program. Area evaluated will include:
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1420 8ri1tol StrMt Norf\. Newport Baach. Calfomia 92e80. (714) 752-1058
a.dAd? -/ ~ ~
Ci ty of San Bernardino
o Reporting of incidents
o Reporting of claims for
damages
o Staffing
o Supervision
o Caseloads
o Claimant contact
o Diary system
o Investiga tion
3. The adequacy of case reserves.
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June 30, 1986
o Application of government codes
o Verification of special damages
o Allocated expense
o Contributions from joint tort feasors
o Transfer of risk
o Settlements
o Li tiga tion
o Subroga tion
o File documentation
4. The accuracy of case reserves, payments and reported claims as shown on the
most recent loss experience report.
PLAN OF ACTION
Results will be achieved through the following activities I
1. We will conduct a comprehensive review of a representative random sampling of
open workers' compensation, general UabWty and automobile claims.
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2. A comprehensive review will be made of a representative sampling of closed
claims. -
3. All claims reviewed will be matched to the latest loss experience report.
4. Worksheets and individual file memos will be main tined to prove patterns and
trends.
5. Interviews will be conducted with the claim personnel.
6. Where appropriate, defense counsel, supervisory personnel and others will be
contacted. .
7. Based on the data obtained in performing the activities listed above, we will
prepare a written report refiecting our findings, conclusions and recommenda-
tions in each specific area studied.
MATERIAL TO BB SUPPLlBD CONSULTANTS
To achieve best results, the following items and data are needed:
1. Letter from you authorizing the audit of the City's workers' compensation,
general liability and automobile liability claims.
2. The most recent loss experience report listing all claims reported.
3. Copies of the last three years' annual reports to California Self-Insurance Plans.
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We"en, McVeIg", Grltftn a ..._
City of San Bernardino
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June 30, 1986
CONSULTANT PERSONNEL AND QUALIPICATlONS
To ensure objectivity as well as the professional competence of its work, Warren,
McVeigh, Griffin & Savage acts solely in an advisory capacity to management. It has no ."",.
coMection with any adjusting firm, claim administration service, broker or insUrer. The
resumes of consultants assigned to this project are appended to the proposal.
COST
For the scope of work outlined in this proposal, the total cost will be $4,900~divll
expenses for transportation, lodging, meals, report production, and telephone cnarges.
Our invoices, which will be submitted with our final report, will be due and payable
within 20 days of your receipt.
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'nIIB SCHEDULB
If our proposal is accepted, the claim audit will be complet4!d and our final report
rendered within 80 days from the notice of acceptance. 'Ibis assumes that we will
encounter no unusual delays in obtaining needed information or in scheduling interviews.
. . . . .
We appreciate the opportunity to submit this proposal and look forward to performing
this important project.
WARREN, McVEIGH, GRIFFIN & SAVAGE
By ~/~L )
K. J. Sa e
Man · Partner
Werren, McVeigh, Grlllln a In_
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WAllllBM, IIcVElGH, GIlIPPDf I: SAVAGB
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Public Bntiti.
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Humboldt, California
Imperial, California
Inyo, CaUfornia
KinI County, Wuhlngton
Kinp, California
Madera, CaUfornia
Marin, CaUfornia
Mendoeino, California
Monterey, California
Nevada, California
Crance, California
Plaeer, CaUfornia
Saeramento, California
San Lull Obilpo, California
Santa Barbara, California
Santa Cruz, CaUfornia
Shasta, CaUfornia
Sonoma, CaUfornia
Tehama, CalIfornia
Trinity, CaUfomla
Tuolumne, CalIfornia
Ventura, CaUfornia
.........1a
Alta Bet.. ROIpital
AIIoeiation of CaUfornia HOIpital Districts
ABMriatiOftl and Pools
Assoeiation of California Water Alencies
CaUtornia Association ot Recreation and
Park Districts
Central San Joaquin Risk Manqement Authority
Marin County Workers' Compensation P\md
Northern California Cities Joint Pow.... Authority
Northern California Cities Workers'
Compensation Fund
Orange County Cities Risk Manacement Authority
Puget Sound Insurance Authority
Redwood Empire Municipal Insurance Fund
San Mateo County Schoolslnlurance Group
Santa Barbara School Districts
Schools Linked for Insurance Manacement
Self-Insurance Procram for Employe..
Southern California Joint Powers
Insurance Authority
Texu Municipal Leque
West Valley JPA
Western Riverside Self-Insurance Procram
for Employ...
Yolo County Public Alency Rille Manqement
Insurance AIIociation
Anaheim, California
Arcadia, CaUfornia
Austin, Texu
Bellewe, Wuhington
Buena Park, California
Burlingame, California
Dallu, Texu
Fullerton, California
Garden Grove, California
Huntincton Beach, California
Juneau, Alaska
Long Beach, California
Mesa, Arizona
Monterey Park. California
Ontario, California
Orange, California
Pasadena. California
Petaluma, California
Phoenix, Arizona
Pomona, California
Redwood, California
Roseville, California
Sacramento, California
San Buenaventura. California
San Francisco, California
San Jose, California
San Mateo, California
Santa Clara, California
Stanton, CaUfornia
Tustin, California
Union City, California
West Covina, California
.....
Alameda County, California
Amador, CaUfornia
Butte, California
Calaveras, California
Clark County, Hevada
Del Horte, California
Fresno, Cali f ornia
University of CaUfornia
Centinela-8outh Bay School Insurance
Authority
Coat Community Coll.e
Contra COIta County Schools Insurance
Group
Foothill-DeAna Community Conege District
Glendale Unified School DlItrict-SLIM
Groamont Unified RiCh School District
Hacienda-La Puente Unified School District
Lone Beach School DlItrictl
LoI Ancel.. County Office of Education
LoI Ancel. Unified School District
MontebeUo Unified School DlItrict
Ocean Vie. School District
Riv....ide Unified School District
Sacramento Unified School District
San Bernardino Schools JP A
San Diego County Schools JP A
Santa Monica/Malibu Unified School District
Schools lnIurance Authority
Southern California Community College Districts
Self-Funded Jnaurance Alency
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AJuka
Arizona
Utah
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Bey Area Rapid Transit District
Bl-State Development ACency
Long Beach Public Transportation Co.
Metropolitan Atlanta Rapid Transit Authority
The Navajo Nation
Southern California Rapid Transit District
Tri-Met, Portland, Oregon
Wisconsin Department of Transportation
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W.rren, McVeigh, Grlfftn . S.V."
Claim Management Consultants
July 11, 1986
City of San Bernardino
300 North "D" Street, 6th Floor
San Bernardino, California 92418
Attention: Ms. Susan Chow
Assistant to City Administrator
CONFIDENTIAL
Dear Ms. Chow:
This will confirm our meeting of this date. Assuming we encounter no unusual delays in
obtaining needed information or in scheduling interviews, Warren, McVeigh, Griffin &
Savage is prepared to start work immediately upon notice from the City and will
complete the scope of work detailed in our proposal within two weeks.
Should our claim audit uncover any irregularity which requires investigation beyond the
scope of work stated in our proposal, we will be pleased to pursue the study further after
consulting with the designated City of San Bernardino official. This additional phase, if
needed, will be billed on a time-and-expense basis. Our current hourly rates are $110 for
both Mr. Low and myself.
Recognizing the City's concern in controlling expenses and as an alternative option (if
needed), we will endeavor to provide an independent and competent investigative service
to perform any necessary field work. We estimate those charges will range between $35
and $60 per hour.
We believe the confidentiality of information must be respected. While our wide
experience with many public entities helps us to render competent service to every
client, we will not divulge any specific information without that client's consent.
We appreciated the opportunity to meet with the City's committee and look forward to
performing this important audit.
Very truly yours,
/J 4 ..-;7
\'.1i(~t~
K~ J:-s8.vage'-
Managi~ Partner
KJS:de
1420 Bristol Street North, Newport Beach, California 92660 · (714) 752-1058