HomeMy WebLinkAboutReso 022-86 LiabilityClaimsRESOLUTION NO. 22- 86
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING LIABILITY CLAIMS ADJUSTING AND
ADMINISTRATION SERVICE CONTRACT
AND ESTABLISHING SETTLEMENT AUTHORITY LIMITS
WHEREAS, the City of Dublin is 'in need of professional
liability claims adjusting and administration services; and
WHEREAS, the City Staff reviewed proposals to determine
the most effective method of providing these services; and
WHEREAS, the George Hills Company, Inc., is licensed as
Independent insurance Adjusters and Administrators~ and
WHEREAS, the settlement of claims can be expedited
through an author'izat[on of settlement authority.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Du~lin does hereby authorize the Mayor to execute the
attached Liability Cla.lms Adjusting & Administration Service
Contract atta~'hed hereto and by reference made a part hereof.
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BE IT FURTHER. RESOLVED that George Hills Company, Inc.,
shall be author~ized a One Thousand Dollar ($1,000) authority for
the purpose of compromising and/or settling any claims against the
City handled pursuant to this agreement. For the purpose of
facilitating settlement payments, the Claim Administrator may
establish a trust account and make said payments on behalf of the
City. The balance in said account shall not exceed Five Thousand
Dollars ($5,000), unless author[zed by the City Council.
BE IT FURTHER RESOLVED that the City Council shall
authorize a supplemental settlement authority to the City Manager
of Four Thousand Dollars ($4,000). In no case shall a claim be
settled for more than $5,000 without direct authorization from the
City Council.
1986.
PASSED, APPROVED AND ADOPTED this 10th day of March,
AYES: Councilmembers Hegarty, Jeffery, Moffatt,
Vonheeder and Mayor Snyder
NOES: None
ABSENT: None
4~fay~Sr
particular claim to a conclusion.
VIII. INDEPENDENT CONTRACTOR
In perforn~-ing claims administrative services herein agreed upon, the CLAIM AD-
MINISTRATOR shall have the status of an independent contractor and shall not be deemed
to be an officer, employee or agent of the CITY.
IX. INDEMNIFICATION
The CLAIM ADMINISTRATOR will indemnify and hold harmless the CITY from
and against all claims, demands, actions, or causes of action which may arise from the
action, conduct or failure to act by GEORGE HILLS COMPANY, INC., personnel. The
CITY will defend, at no cost to the CLAIM ADMINISTRATOR, in those cases wherein
the CLAIM ADMINISTRATOR is named in a filed or verified complaint simply by virtue
of the fact they are the claims administration firm on a given claim.
X. INSURANCE
The CLAIM ADMINISTRATOR shall provide the CITY with a Certificate of
Insurance duly executed by the insurance company or companies authorized to transact
business in the State of California and said Certificate shall certify that the CLAIM
ADMINISTRATOR has in full force and effect $1,000,000.00 coverage applying lo bodily
injury, personal injury and property damage.
The CLAIM ADMINISTRATOR shall maintain errors and omissions coverage in
the amount of $1,000,000.00 per occurrence and shall also maintain employee fidelity
bond coverage in the sum of $500,000.00.
CITY OF DUBLIN
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TRATOR will provide the CITY with a full factual report, showing name(s) of claimant(s),
type of claim, date of loss, comments on liability, reserve recommendations, settlement
recommendations, and other pertinent information. Subsequent to the initial thirty
(30) day report, CLAIM ADMINISTRATOR will report at least every thirty (30) days
until claim closes unless extended diary is appropriate.
All original reports, documents, and claim data of every kind or description that
are prepared in whole or in part by or for CLAIM ADMINISTRATOR in connection with
this agreement shall be CITY'S property and constitute CLAIM ADMINISTRATOR'S
work product for which compensation is paid. A copy of all reports, documents and
claim data of every kind or description, that is in whole or in part by or for CLAIM
ADMINISTRATOR is the property of the CLAIM ADMINISTRATOR and must be
maintained by CLAIM ADMINISTRATOR in accordance with Title 10, Article 6, Section
2691.14, of the California Administrative Code. Additional copies of original reports~
documents, and data requested by the CITY wilt be at the CITY'S expense in accordance
with this agreement.
tV. DENL~L~ COMPROMISE O1~ SETTLEMENT OF CLAIMS
It is agreed that the CITY has designated $1,000.00 authority to the CLAIM AD-
MINISTRATOR for the purpose of compromising and/or settling any claims agains'~
the CITY being handled by the CLAIM ADMINISTRATOR. Prior approval to compromise
or settle any claim will be obtained from the designated CITY officer or employee on
matters exceeding $1,000.00.
V. PAYMENT FOR SER¥ICES
Annual Claims Administration fee is $1,200.00. Time and expense charges wi~
be incurred only when necessarily required in the form of adjuster's fees. Time and
expense fees at the inception of the contract will be as follows:
(a) Adjuster's Fee: $32.00 per hour
(b) Mileage: 40¢ per mile, with probable increase during contract
based upon cost to operate a compact vehicle
(c) Stenographic and Office Overhead: 30% of hourly rate (Minimum
$22.50)
(d) Telephone Expense: 9% of hourly rate
(e) Photographic Expense: $2.00 per colored print
(f) Photoco. py Expense: 30¢ per page
(g) Insurance: 2½% of hourly rate
(h) Video Taping Service: $50.00 per hour (includes all expenses except
$10.00 Video Tape Charge)
The aDove time and expense services apply to work billed during the term of this
contract.
IT IS AGREED AND UNDERSTOOD that whenever practical, any attorney fees,
court costs, cost of outside experts, and other costs related to services to be performed
by persons other than the CLAIM ADMINISTRATOR should be billed directly to the
CITY.
CLAIM ADMINISTRATOR will submit its bills and payment by the CITY shall
be within a reasonable period of time, not to exceed thirty (30)days. CLAIM ADMiNIS-
TRATOR bills incurred when the self-insured retention limit is penetrated will be paid
by the CITY unless it chooses to cancel representation by CLAIM ADMINISTRATOi~
prior thereto. In the event a claim is open six months or exceeds 10 hours time, the
CLAIM ADMINISTRATOR shall submit an interim bill for payment.
VI. TERM
The term of this contract shall be from MARCH 1, 1988 to and including
.FEBRUARY 28, 1987. This contract shall be terminated by either party, for any reason~
upon sixty (60) days written notice.
This contract may be renewed on a yearly basis sub,ject to the same terms and
conditions, except that Paragraph V, PAYMENT FOR SERVICES, herein may be renegoIi-
ated by the parties hereto.
VII. CONFLICT OF INTEIiEST
in the event the CLAIM ADMINISTRATOR receives a claim from the CiTY in
which there arises a "conflict of interest" the CLAIM ADMINISTRATOR shall immediately
notify the CITY. The CITY will hire another well-qualified claims firm to handle that
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Date
GEORGE HILLS COMPANY, INC.
APPROVED AS TO FORM:
City Attorney