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RESOLUTION NO. /;2./.:2 7
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2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH CARL WARREN AND COMPANY PROVIDING
3 FOR CERTAIN SERVICES IN CONNECTION WITH THE DUTIES ANDRESPON-
SIBILITIES OF ADMINISTERING A PROGRAM OF SELP-INSURANCE.
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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 Carl Warren and Company providing for certain
9 services in connection with the duties and responsibilities of
10 administering a program of self-insurance, a copy of which is
11 attached hereto, marked Exhibit "A" and incorporated herein by
12 reference as fully as though set forth at length.
13 I HEREBY CERTIFY that the foregoing resolution was duly
14 adopted by the Mayor and Connnon Council of the City of San
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Bernardino at a
on the ~~ day of
meeting thereof, held
, 1977, by the following
17 vote, to wit:
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Councilmen
AYES:
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City'C1e
is hereby approved' ~
day
NAYS:
ABSENT:
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of
The foregoing resolution
/4-' , -. 1977.
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AGREEMENT
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THIS
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a . icipal
(self-insurance service)
AGREEMENT is made and entered into this --2..1tday of
, 1977, by and between the CITY OF SAN BERNARDINO
corporation, hereinafter called "City", and CARL
WARREN AND COMPANY, a California corporation, hereinafter called
"Contractor".
W !. T N E S 2. E T H:
WHEREAS, City has undertaken a self-insurance program I and
WHEREAS, Contractor is engaged in the supervision 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-
inafter set forth, the parties hereto agree as follows:
1. General. Contractor agrees to supervise and administer
the Self-Insurance Liability program for City and shall act as
the representative in connection with the investigation, adjust-
ment, processing, supervision and resolution of general liability
and automobile liability claims and potential claims for money
damages asserted by third parties against City which are premised
upon allegations of negligent or careless acts or omissions, or
parties for whom City is alleged to be legally responsible, and
agrees further to provide to City during the term of this Agree-
ment all services more particularly set forth hereinafter.
2. Investigative Services.
A. Contractor agrees to provide complete investigative
services to include but not limited to:
(1) An examination of all reports of
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1 accidents, incidents, claims, or cases which are or may be the
2 subject of such liability claims.
l (2) The investigation of such accidents, incidents
4 claims or cases where examination warrants such investigation, or
5 when requested by City, such investigation to include on-site
6 investigation, photographs, interviewing of witnesses, determina-
7 tion of losses, and other such investigative services necessary to
8 determine liability and losses but not to include extraordinary
9 professional services as set forth in subsection liB. herein.
10 (3) Contractor agrees to maintain service on a 24-
11 hour, 7 days a week basis, to receive telephone reports of any
12 incident or accident which may be the subject of a liability
13 claim, and shall provide immediate investigation services, if the
14 incident or accident so requires, to the extent necessary to pro-
15 vide a complete investigation.
16 B. A~located Expenses. City agrees to pay for the
17 cost of all extraordinary investigative services where expert and
18 professional assistance is required, such as professional photo-
19 graphy, independent medical examinations, professional engineering
20 services, and laboratory services. Contractor shall order such
21 services only upon written authorization by the City Administrator
22 or his authorized representative, provided such authority may be
23 given orally only when such services are urgently required.
24 3. Adjustment Services. Contractor agrees to provide
25 complete adjustment services on each accident or incident which
26 is or may be the subject of a liability claim. Such services
27 shall include:
28 A. The maintenance of a claim file on each potential
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1 or actual claim reported to Contractor.
2 B. Whenever its investigation results in a determina-
3 tion that City has sustained a liability to a third party, Con-
4 tractor shall process any such claim or potential claim for
5 settlement in accordance with instructions and policies of City
6 for settlement of such claims.
7 C. Notification of City's primary and excess carriers
8 of all claims which exceed the City's retention, and maintenance
9 of liaison between the insurance carriers and the City on matters
10 affecting the adjustment of such claims.
11 D. Obtaining all Release Agreements on settlement of
12 any claim or potential claim.
13 4. Administrative Services. Contractor agrees to provide
14 the following administrative services:
15 A. Assignment of a Principal Account Adjuster to City
16 to provide liaison between City and Contractor.
17 B. A comprehensive tabulated Monthly Status Report on
18 all reported claims during the term of this Agreement, indicating
19 the status of each reported open claim assiqned to Contractor,
20 the details of each such claim, the outstanding reserves for each
21 claim and details of all claim payments during the month. The
22 Status Report shall be delivered to City within twenty (20) days
23 after the close of each calendar month.
24 C. The periodic review and adjustment of reserves for
25 all open claims.
26 5. Legal Support Services. Contractor agrees to provide
27 the followinq legal support services for each claim that a third
28 party claimant has commenced litigation upon:
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A. Upon notification by the City Administrator or his
2 authorized representative that litigation has been filed on an
3 open claim, Contractor shall promptly meet with the trial attorney
4 assigned to handle case by the City Administrator, and provide
5 said trial attorney with all information and files concerning
6 claim.
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B. The maintenance of liaison with trial attorney
8 assigned to litigation for the open claim, and Contractor shall
9 provide such investigation services as are required during pre-
10 trial and trial stages.
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C. Assistance to the trial attorney in answering any
12 interrogatories filed by third parties pursuant to any litigation
13 filed on an open claim.
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D. Assistance to the City's Authorized Representative
15 in Small Claims actions filed against City on open claims handled
16 by Contractor by advising said City Authorized Representative of
17 names of any witnesses to be subpoenaed and necessary evidence.
18 COntractor shall appear at the trial to assist in case, and to
19 appear as a witness if necessary.
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1917,
6. Period of Agreement.
(12) months commencing at
and ending fiLM( 3 (J .
7. consiaation. /
This Agreement is for a period
12:01 a.m., ~ 3",
o '
, 1978.
of
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twelve
,
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A. City agrees to pay to COntractor the sum of five
25 hundred dollars ($500.00) per month as and for Contractor's
26 administrative fee, such fee shall include cost of monthly
27 statistical run, investigation and handling to conclusion of
28 telephone adjusted claims and all other necessary administrative
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duties. All claims that require field investigation as directed
by standards of good and professional claims handling will be
billed at the rate of $14.50 per hour for time expended, 20~ per
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mile for automobile mileage, $1.00 per print for color photographs
and usual file expenses to include telephone, photocopy, steno-
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6 graphic and office expense. All file expenses charged hereunder
7 shall be only those direct expenses attributable to the file being
8 processed by Contractor. The maximum amount to be paid to Con-
9 tractor by City for this contract year, including the administrati e
10 fees, shall be the sum of fourteen thousand dollars ($14,000.00).
11 Allocated expenses provided for in Section 2-B hereinabove shall
12 not be considered as being included in the maximum sum of fourteen
13 thousand dollars ($14,000.00).
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B. When twenty or more individual claims arise out
15 of a single loss or accident (a "catastrophe"), all individual
16 claims in excess of said twenty shall be completed by Contractor
17 on the basis of time and expense notwithstanding the $14,000.00
18 annual maximum sum if the catastrophe charges, the monthly
19 administrative fee and filed time and expense charges to date
20 have not exceeded the $14,000.00 annual maximum sum. Under such
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circumstances, time and expense shall be billed at the rates set
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forth in 7-A hereinabove.
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C. City agrees to reimburse Contractor for all
24 Allocated Expenses incurred pursuant to Section 2-B herein which
25 are supported with proper invoices.
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8. Time of Payment. Commencing upon execution of this
Agreement by both parties, for administrative fee City shall
transmit payment of one thousand five hundred dollars ($1,500.00)
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1 for the first three (3) months of the contract commencing
2 , 19~ and will transmit a payment of
3 1,500.00 for each of the following three (3) month periods of the
4 term hereof. Payments shall be transmitted to Contractor at 2600
5 Wilshire Boulevard, Los Angeles, California 90057 on a quarterly
6 basis.
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9. City Responsibilities. City shall provide Contractor
8 with copies of all relevant dOCUlllents upon request and without
9 charge and shall make available any employee for interviews by
10 Contractor at reasonable times and places for any investigation of
11 a claim or incident being processed by Contractor pursuant to this
12 Agreement.
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10. Conflict of Interest. In the event a claim or incident
14 is reported to Contractor by City and it is determined that the
15 third party claimant or a cross complainant is also a client
16 of Contractor to whom Contractor is committed to serve by contract
17 and there is a dispute as to the liability of the parties or as
18 to the amount of the loss, Contractor shall notify City of the
19 conflict of interest. If City elects to have an independent
20 investigator and adjuster, Contractor shall provide and select
21 such an investigator and adjuster subject to the concurrence of
22 City at the rates quoted in 7-A.
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11. Cancellation of Agreement. The Agreement may be
24 terminated by City with or without cause upon giving Contractor
25 written notice at least thirty (30) days prior to the termination
26 date.
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12. Disposition of Files on Termination of ~reement.
A. All files for each claim and all materials belong-
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1 ing in the files shal.l be the property of the city.
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B. In the event of termination of this Agreement, Con-
3 tractor shall bill the City, subject to the maximum contract price
4 and the rates quoted in 7-A, for work completed on each claim file
5 and adjuster will promptly return all claim files to the city. In
6 the event Contractor owes any sums to City as a result of City's
7 advance payment, Contractor shall refund said excess sums to City
8 forthwith.
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C. In the event of cancellation of this Agreement
10 by City, Contractor shall return all files to City unless City
11 requests Contractor to continue to process any files. Contractor
12 will continue to process on a time and expense basis as pro-
13 vided in the Contractor's Rate Manual at the time such services
14 are rendered.
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13. Hold Harmless.
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A. City agrees to defend any legal action commenced
17 against COntractor caused directly or indirectly by the wrongful
18 or negligent acts of City's officers, employees, agents, or
19 others engaged by City; and indemnify Contractor against any
20 liability, ~oss, cost or damage including attorneys' fees result-
21 ing therefrom.
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B. Contractor hereby agrees to, and shall, defend any
23 legal action commenced against City, its elective and appointive
24 boards, commissions, officers, agents and employees caused
25 directly or indirectly by the wrongful or negligent acts of the
26 COntractor, employees, agents or others engaged by Contractor
27 and indemnify City against any liability, loss, cost or damage
28 including attorneys' fees resulting therefrom.
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14. Notices. All notices herein required shall be in
2 writing and delivered in person or sent by certified mail,
3 postage prepaid, addressed as follows:
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City of San Bernardino
300 North "0" Street
San Bernardino, CA 92418
Carl Warren and Company
1505 East. 11th' 'Street:.'
Santa '1\naf:CA':9.2101:'.,
15. N~ Assignment. Contractor shall not assign this
7 Agreement, or any interest therein or part thereof, or any right
8 or privilege appurtenant to it.
9 IN WITNESS WHEREOF, the parties hereto have executed this
10 Agreement on the day and year first above written.
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ATTEST:
y
CARL WARREN ,AND COMPANY,
a California Corporatiion
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