HomeMy WebLinkAboutAgenda Report - March 18, 1981 (55)}•yl�,�bflow ,w
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UNCIL MEETING
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AMENDED
Council was apprised that R,L. Kautz and _
IABILI•TY
Company, the City's Contract Administrator for
DMINISTRATION
Liability Claims has presented a renewal Li abi l i t
GREt:MENT WITH
Administration Agreement.. Historically, any
R.L. KAUT7,
investigative or appraisal expense incurred
ANIS CO.
during the initial stages of the investigation
APPROVED
of a claim was an expense borne by R.L. Kautz
and Company. The total actual expense for each
city has varied considerably and Kautz feels it:
is inequitA le to continue to adjust their basic_
fees to assume an average amount of expense,
when the variation from city to city is so cheat.
BY Passing this expanse to each city, the high
users will no longer be subsidized by the low
users, and each city will be responsible for
its own exact. costs. The existinq fee of
$6,250.00, according to R.L. Kautz and Co.,
will prove sufficient for the new contract,
basad can the City's claims activity over the
past twelve months,
On motion of Mayor Fro Tempore McCarty, Murphy
second, Council approved renewal of the Liability
Administration Agreement as amended with R.L.
Kautz and Company as heretofore set forth and
authorized the Mayor and City Clerk to execute
the Agreement on behalf of the City.
i
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R. I.— K A L.? 'I` I& C O
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;larch 10, 1981
Alice M. Weinche
City Clerk
City of Lodi
221 W. Pine
Lodi, CA 95240
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P,().1)Ox 7338 • (115)
n -\ \ I'll A N ('I S(: O. FA L E f' O f t e l 119
Rui Renewal Liability Administration Agreement
tear Alice:
During our conversation last week you asked me to provide you with some
supplemental information regarding the level of allocated expense paid in
behalf of other cities in Northern California under our administration.
I trust the following; information will prove satisfactory.
CITY ALLOCATED EXPENSES
Lodi
$216
A
$450
B
$ 800
C
$825
D
$750
E
$1500
Of the five cities illustrated in addition to Lodi, the expenses are projections
based on eight to ten months actual expenmes.
The City of Lodi's allocated expense remains low by comparison primarily
due to the City's ability to provide essential information. If this information
were not being provided by the City, outside adjustors would have to be
employed at a charge of $20-25 per ;Tour plus expenses.
If I may provide you with any additional information, please let me know.
Very truly yours,
Norton Postings
Vice President
Nall/b h
A V1 VM u (,O&P'ANY pI P'M140c15T COR[+pNAtiON
MAR 1 3 1981
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February 17, 1981
Alice M. Re-inche, city Clerk
City of Lodi
221 West Pine Street
Lodi, CA 95240
Re: Renewal Liability Administration Agreement
Dear Alice;
MAIEAN(, AnDRU.55
►' (k MIX 7338 - Y115) 981-202-'
v \N F tiANl't`CO, ( Al.IY01ZNIA, ()lttl)
I gather from Michael Patterxon's report fallowing his visit with you that
the City of Lodi's liability program is going well.
Based on review of the claims activity over the past twelve months, we do
not feel that there to as need for the forthcoming year to increase our
administration tue. The existing fee of $6,250 will prove sufficient for
the period February 1, 1981 through January 31, 1982.
We are requesting the following amendment to they contract be made. Historically,
any invust igat ive or appraisal expense incurred during the initial stages of
the Invest igat ion of a claim was an expense borne by R.L. Kautz & Co. The
total actual expense for each city has varied considerably from as low, as is the
case with Lodi, $216,to several thousand dollars. We feel it is inequitable to
continue to adjust our basic fee to assume an average amount of expense, when
the variation from city to city is so great. By passing this expense to each
city, the high users will no longer be subsidized by the low users, and each
city will be responsible for its own exact costs.
As indicated above, the investigative expense incurred by the City of Lodi
over the past year totaled $216. Over the forthcoming year it may be more
or less, depending upon the claims activity.
The enclosed pages reword those paragraphs dealing with this type of expense,
I would aapprociaat. your reviewing them and letting me have your thoughts.
Very truly yours,
Norton Innytings
Vice Presideht
NRH: I
Enclosures
2 . INVEST All IyE SERVICES.
A, CONTRACTOR agrees to provide investicative
services as follows:
(1) Receipt and examination of all reports of
ac.clients, incidents, claims or cases which
are or may be the subject of such liability
claims
(2) Investigation of such accidents, incidents,
claims or cases, where nature of the claim
warrants such investigation, or when requested
by member city: such investigation to include
contact with claimant, interview employees of
AUTHORITY, as hereinafter set forth, and
engage, direct and evaluate outside
investigative services as set forth in sub-
section "Ba" AUTHORITY shall make available
to CONTRACTOR all employees of participant,
cities under the AUTHORITY who are witnesses
to an incident or accident or %.,ho have
knowledge of the event or incident which is
the subject matter of a claim. The
statements of such employees shall be taken
at the office of CONTRACTOR, or, if
practical, the participating city under the
AUTHORITY shall make available to the
employee a convenient location within the
confines of the participant city so that a
-2-
telephone statement may be taken. AUTHORITY
.shall provide COMM.!XTOR with available photo-
graphs and engineering drawings or other
descriptive material of all conditions of
AUTHORITY property which are alleged to be
dangerous or that were damaged in the events �.
which produce the claim under investigation,
�o Allocated QS enses and Additional Inve i v
E?.Mpens . AUTHORITY agrees to pay for the coast of
investigative services not provided under 2A
performed by outside contractors where expert, and
professional assistance is required, such as
professional photography, independent medical
examinations, laboratory services, on-site
investigations, taking statements from witnesses
away from the premises of CONTRACTOR, obtaining
medical and other records and reports, trial
preparation and professional engineering services,
including but not limited to map preparation,
accident reconstruction. material analysis and,
evaluating premises