HomeMy WebLinkAboutAgenda Report - December 15, 1982 (18){ } n CITY COUNCIL MEETING
f DECEMBER 15, 1982
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Follawi.ng introduction of the matter by City Manager Glaves,
RENEWAL AGREENEITP Council, on motion of Councilman Pinkerton, Murphy second,
WITH R.L.KAUrZ approved the extension of the Liability Administration &
CO., CONTRACT Agreement with R. L. Kautz and Ccapany for 12 months and
ADMINISTRATORS authorized the Mayor and City Clerk to execute the Extension
APPROVED Agreement on behalf of the City.
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COUNCIL COA'iMUNICAPON
TO THE CITY COUNCIL DATE
FROM: THE CITY MANAGERS OFFICE December 10, 1982
SUBJECT: Extension of Liability Administration Agreement with R. L. Kautz and Company
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The City's agreement with R. L. Kautz b Company for Self Insurance
Administration services is due to expire shortly.
We have been apprised by R. L. Kautz and Company that they are willing to
extend the current agreement for an additional 12 months for the same
consideration under the current agreement i.e. $6,250.00 per annum,
payable quarterly in equal installments, to provide all services set forth
in the agreement except allocated expenses and additional investigative
expenses.
R. L. Kautz and Company has apprised this office that they were able to
hold this price due to the efforts of this office and the City Attorney in
providing followup information; settling claims through this office when
it is in our best interest and the level of verified claims that were
received this past year.
We have attached a copy of the current agreement and the addendum and
respectfully request the Council by motion action, to approve this
extension and authorize the Mayor and City Clerk to execute the Addendum
on behalf of the City.
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Alice M. Reimche
City Clerk
AGREEMENT BETWEEN CITY OF LODI
AND R. L. KAUTZ & CO. FOR SELF-
INSURANCE ADMINISTRATION SERVICES
THIS AGREEMENT, entered into this 27th day of April ,
1981, by and between CITY OF LODI, hereinafter called "CITY," and R. L. Kautz
& Co., a California corporation, hereinafter called "CONTRACTOR," for certain
services as outlined herein in connection with the duties and responsibilities
of administering a program of Liability Self -Insurance,
W I T N E S S E T H:
WHEREAS, CITY has undertaken to self -insure; and,
WHEREAS, CONTRACTOR is engaged in the supervision and administration of
programs of self-insurance,
NOW, THEREFORE, for and in consideration of the mutual obligations hereby
assumed, and the performance of the acts hereinafter set forth, the parties
hereto agree as follows:
1. GENERAL
A. CONTRACTOR agrees to supervise and administer the Liability
Self -Insurance program for CITY and shall act as their
representative in connection with the investigation, adjustment,
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 conduct for which CITY is alleged to be legally responsible,
and agrees further to provide to CITY during the term of
this Agreement all the services more particularly set forth
hereinafter.
In the performance of the services provided for herein,
CONTRACTOR shall use its best efforts without any guarantee
as to the ultimate outcome of any claim adjusted, investigated,
processed, supervised or resolved by CONTRACTOR.
E. CITY shall open a bank account with a federally insured bank
and contractor, as agent for CITY, and shall have sole signing
authority on said account. CITY shall be responsible for maintaining
sufficient balances in the account to cover the payment of the
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general liability and automobile liability claims which m jght
reasonably be expected to result under CITY's Liability
Self -Insurance Program. However, if at any time an overdraft
exists on this account, CITY agrees for the benefit of CONTRACTOR
and the bank to be responsible for the amount thereof.
2. INVESTIGATIVE SERVICES
A. CONTRACTOR agrees to provide investigative services as fo7.lows:
1) Receipt and examination of all reports of accidents, .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 CITY; such investigation to include
contact with claimant, interview employees of CITY, as
hereinafter set forth, and engage, direct and evaluate
outside investigative services as set forth in sub -section
11B.
CITY shall make available to CONTRACTOR all employees of
CITY who are witnesses to an incident or accident or who
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,
CITY shall make available to the employee a convenient
location within the confines of CITY so that a telephone
statement may be taken. CITY shall provide CONTRACTOR
with available photographs and engineering drawings or
other descriptive material of all conditions of CITY
property which are alleged to be dangerous or that were
damaged in the events which produce the claire under investigatic
B. Allocated Expenses and Additional Investi ati enses. CITY
agrees to pay for the cost of investigative servi s 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
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3.
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reconstruction, material analysis and evaluating premises.
ADJUSTMENT SERVICES
CONTRACTOR agrees to provide complete adjustment services on each
accident or incident which 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 reported to CONTRACTOR.
B. Whenever its investigation results in a determination that
CITY has sustained a liability to a third party, CONTRACTOR
shall process any such claim or potential claims 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 CITY's retention and maintenance of liaison between
the insurance carriers and the CITY on matters affecting the
adjustment of such claims and notify CITY when CITY is entitled
to reimbursements for loss in excess of retention.
D. Obtain all Release Agreements on settlement of any claim or
potential claim.
ADMINISTRATIVE SERVICES
CONTRACTOR agrees to provide the following administrative services:
A. Preparation and submission of an Operating Manual of Procedure
for reporting claims to CONTRACTOR and the proper procedures
for completing accident forms.
B. Provide CITY during the term of this Agreement with tabulated
Honthly Status Report on all reported claims during the term
of this Agreement, indicating the status of each reported
open claim assigned to CONTRACTOR, the details of each claim,
the outstanding reserves for each claim and details of all
claims payments during the month. The Status Report shall be
delivered to CITY within twenty (20) days of the close of
each calendar month.
C. Periodic review and adjustment of reserves on all open claims.
S. PERIOD OF AGREEMENT
This Agreement is for a period of twelve (12) months commencing at
12:01 a.m., February 1st, 1981, and ending midnight, January 31st, 1982.
Thereafter, it is the intention of the parties to continue this Agreement
in full force and effect, subject to annual renegotiation of section 6
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hereunder ("CONSIDERATION"), unless and until this Agreement is
terminated by either party as hereinafter provided.
6. CONSIDERATION
CITY agrees to pay to CONTRACTOR the sum of Six Thousand Two Hundred
Fifty Dollars ($6,250) per annum, payable quarterly in equal installments,
to provide all services set forth herein except Allocated Expenses
and Additional Investigative Expenses set forth in 2B herein.
7. CANCELLATION OF AGREEMENT
This Agreement may be terminated by either party giving to the other,
in writing, notice of his intention to cancel this Agreement at
least sixty (60) days prior to the date of termination.
8. DISPOSITION OF FILES ON TERMINATION OF AGREEMENT
A. All files on each claim shall be the property of the CITY.
B. In the event of termination or cancellation of the Agreement,
CONTRACTOR shall return all files to CITY unless CITY requests
CONTRACTOR to continue to process any file, which file CITY
will continue to process on a time and expense basis.
C. In the event of cancellation of the Agreement by CITY, the
total consideration to be paid by CITY to CONTRACTOR as set
forth in Section 6 herein shall be due and payable.
D. In the event of cancellation of this Agreement by CONTRACTOR,
the consideration to be paid pursuant to Section 6 shall
terminate effective with the termination of the Agreement
and CITY shall not be liable for further payment.
9. HOLD HARMLESS
A. CITY agrees to defend any legal action commenced against
CONTRACTOR caused directly or indirectly by wrongful or
negligent acts of CITY officers, employees, agents or others
engaged in CITY and indemnify CONTRACTOR against any liability,
loss, cost, or damage, including attorneys' fees, resulting
therefrom.
B. CONTRACTOR agrees to defend any legal action commenced against
CITY caused directly or indirectly by wrongful or negligent
acts of CONTRACTOR's officers, employees, agents or others
engaged by CONTRACTOR; and indemnify CITY against any liability,
loss, cost, or damage, including attorneys' fees, resulting
therefrom.
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IN WITNESS WHEREOF, the parties hereto have caused these presents to be signeC—
by
their duly authorized officers as of the day and year first above Written.
R. L. ICAUTZ 6 CO.
A California Corporation
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CITY OF LODI
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A Municipal Corporation
James A. McCarty r�
Mayor
ATTEST:
&,U,/ t)t
Alice M. Re
City Clerk
Riiad- M. Stein
City Attorney
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IMP Vj1f,
ADDENDUM TO ADMINISTRATION AC312FMENT_,.,,^.._
It is hereby agreed that the Memorandum of Agreement dated
April 27, 1981 between the City of Lodi and R. L. Kautz &
Company is amended to extend the period of service for
liability claims administration for an additional twelve
(12) month period beginning February 1, 1983 and ending on
January 31, 1984.
R. L. Kautz & Co. City of Lodi
A California Corporation A Municipal Corporation
By: By:�- -' - •
James C. Brooks Pred M. eid
Mayor
ATTEST:
A i
16e M. Reims
City Clerk
APPROVED AS TO FORM:
Ronald M. Stein
City Attorney
CITY COUNCIL
fRED M RE ID. Mayor
ROBERT G MURPHY,
Mayor Pro T ernpore
EVELYN M OLSON
JAMES W. PINKERION, it
JOHN R (Randy) SNIDI R
CITY OF LODI
CITY HALL. 221 WEST PINE STREET
POST OFFICE BOX 320
LODI, CALIFORNIA 95241
(209) 334-5634
Mr. Don Martino
Director, Regional Operations
R. L. Kautz and Company
No. 8 Union Square Blvd.
Union City, CA 94587
December 21, 1982
HENRY A.. CLAVES, Jr.
City Manager
ALICE M_ REIMCHE
City Clerk
RONALE3 M. STEIN
City Attomey
Re: City of Lodi - Extension of Liability
Administration Agreement
Please be advised that the Lodi City Council by motion action taken at a
regular meeting held December 15, 1982 approved the attached heretofore
referenced extension and authorized the Mayor and City Clerk to execute
the subject documents on behalf of -the City.
Please return a fully executed copy of this extension agreement at your
earliest convenience.
It's indeed a pleasure to go to the Council with an agreement with no
increases from the prior year.
0
R. L. KAUTZ c& CO.
INSURANCE MANAGEMENT
NO. 8 UNION SQUARE BLVD. • (415)487-4940
UNION CITY. CALIFORNIA 94587
RECLI!';;�
�LC 10 tit 38
Li t
Y Glttrt
December 9, 1982
Ms. Alice M. Reimche
City Clerk
CITY OF LODI
P. O. Box 320
Lodi, CA 95241
Re: City of Lodi
Extension of Liability Administration Agreement
Dear Ms. Reimche:
As we discussed by telephone, I am enclosing two copies of
the Addendum to the Administration Agreement between the
City of Lodi and R. L. Kautz and Company. Could you please
secure the proper signatures and return both copies to my
office. Once I have secured the signature of a corporate
officer, I will forward a fully executed copy of the agree-
ment to you.
It was a pleasure talking with you, and I look forward to
meeting with you personally in the near future.
Sinc ely,
I
Don Martino
Director, Regional Operations
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