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CLAIMS SERVICE AGREEMENT
THIS CLAIMS SERVICE AGREEMENT (hereinafter the "Agreement ") is made
and entered into by and between ZAREMBA CLAIMS SERVICE - YAKIMA, P.O. Box 87,
Yakima, Washington 98907 (hereinafter "ZCS "), and the CITY OF YAKIMA, a municipal
corporation, with its principal place of business at 129 North Second Street, Yakima,
Washington 98901 (hereinafter the "City ").
WHEREAS, the City; previously has been self - insured for most property and
general liability damage claims; and effective on December 14, 2005, the City of Yakima
joined the Cities Insurance Association of Washington ( "CIAW "), which offers pooled
insurance purchasing for liability coverage with a $100,000 deductible;
WHEREAS, the City requires investigation and adjustment services regarding
some claims;
WHEREAS, ZCS is {filling to provide said claims investigation and adjustment
services in accordance with the terms and conditions of this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and
conditions set forth herein, it is agreed by and between the City and ZCS as follows:
1. Scope of Services. ZCS shall provide the following claims investigation and
adjustment services to the City:
a. Review and investigate property and general liability damage claims
filed with, against or by the City as assigned.
b. Provide the City and /or CLAW with a written investigation report
concerning each damage claim within thirty (30) calendar days of
receipt of the damage claim from the City. In the event that more
time is necessiary to complete the investigation report, a ZCS
representative shall contact and notify the appropriate attorney or
his /her designee at the City Legal Department and /or CIAW. Each
investigation report shall contain the following: a recommendation
whether the claim should be denied or accepted; if appropriate, an
analysis of the validity of the claimed damages; and, if appropriate,
a recommended settlement amount /range for the claim.
c. In the event that the City attorney responsible for reviewing an
investigation report and /or CIAW determines additional
investigation services are necessary, provide such services as
directed by said attorney or his /her designee and /or CIAW.
d. When a damage claim is accepted and a settlement amount /range is
approved by the City, ZCS shall take all necessary steps to contact
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the damage claimant and resolve the damage claim, including
execution of an appropriate release and settlement agreement by
the damage claimant.
e. Provide accurate claim reports as requested in a format acceptable
to the City and Wells Fargo Insurance Services on the claims that
were filed through December 31, 2006.
f. Furnish all damage claim forms necessary for proper claims
administration!.
g. Maintain an accurate record of open matters on which Zaremba
Claims Service is performing services for the City, as requested by
the City.
h. Establish and maintain an investigation file for each damage claim
received by ZCS from the City. All such files shall be the property of
the City and may be inspected by a City representative at a
reasonable time with or without advance notice.
i. Provide the City with e-mail access and voice mail with individual
mailboxes.
j. As may be requested during the term of this agreement on specific
damage claims occurring or filed on or after January 1, 2011,
provide services as described in Section la through ih above.
k. As may be requested during the term of this agreement, provide
services related to investigating, adjusting, negotiating and settling
claims by or against the City.
• 2. Term of Agreement. The term of this Agreement shall be for a period of two
(2).years, retroactive to be effective on January 1, 2014, and continuing through
December 31, 2015, unless sooner terminated by either party in accordance with Section
6 of this Agreement. The City reserves the right to extend this Agreement for two (2)
additional one (1) year periods, upon thirty (3o) days written notice to ZCS prior to its
expiration. The City Manager has the authority to extend this Agreement pursuant to
this Section.
3. Consideration. In consideration of the damage claims investigation and
- adjustment services to be performed by ZCS hereunder, the City shall pay ZCS a rate of
Sixty-Five Dollars ($65.00) per hour. ZCS shall bill the City on a quarterly basis on
claims that are closed in the preceding quarter, and on a quarterly basis for services
performed on open claims. The City shall make payment to ZCS within thirty (30)
calendar days of receipt of each billing; provided, however, that all such payments are
expressly conditioned upon ZCS providing services hereunder that are satisfactory to the
City.
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ZCS shall provide accurate claim reports as requested in a format acceptable to
the City and Wells Fargo In Services as required by Section le of this Agreement
in consideration of the compensation described above.
4. Payment of Accepted Damage Claims. When a damage claim and
corresponding settlement amount is accepted and approved by the City, the necessary
funds shall be made available by the City or CLAW to ZCS for payment of the damage
claim. Unless otherwise directed by the City, payment of all damage claims by ZCS to
the claimants is expressly conditioned upon the respective claimant executing an
appropriate release and settlement agreement.
5. Payment of Allocated Loss Expenses. In addition to the claim service fee
required under Section 3 of this Agreement, the City shall pay all reasonable and
necessary "allocated loss expenses" incurred during and as a result of the investigation
and adjustment of damage Claims against the City; provided, however, that ZCS must
obtain prior approval for these expenses from the appropriate City attorney at the City
Legal. Department. These expenses include fees and charges for commercial
photography services, expert witness services, witness fees, independent medical
examinations, witness travel extraordinary travel for ZCS personnel (outside of Yakima
County), court reporter services, transcription services, obtaining public records, auto or
property appraisal,' services, and other similar costs or expenses.
6. Termination. The City or ZCS may terminate this Agreement, with or without
cause, by giving not less than sixty (6o) calendar days' written notice of termination to
the other party. If Craig Nance is unable or unwilling to work at ZCS, then the City may
terminate this Agreement, with or without cause, by giving not less than fifteen (15)
calendar days' written notice of termination to ZCS. In the event of termination, and
except as otherwise provided in this Section, the City shall pay ZCS a pro -rata share of
the . applicable quarterly payment through the termination date. With regard to the
processing of damage claims pending with ZCS at the time of termination, the City shall
have the option to directly investigate and adjust all such damage claims, or the City may
negotiate a fee with ZCS for all necessary investigation and adjusting services to bring
these pending damage claims to conclusion.
7. Status of Contractor. ZCS and the City understand and expressly agree that
ZCS is an independent contractor in the performance of each and every part of this
Agreement. ZCS and its employees shall make no claim of City employment nor shall
ZCS make any claim against the City for any related employment benefits, social
security, and /or retirement.
8. Taxes and Assessments. ZCS shall be solely responsible for and shall pay all
taxes, deductions, and assessments, including but not limited to federal income tax,
FICA, social security tax, assessments for unemployment and industrial injury
insurance, and other deductions from income which may be required by law or assessed
against either party as a result of this Agreement. In the event the City is assessed a tax
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or assessment as a result of this Agreement, ZCS shall pay the same before it becomes
due.
9. Indemnification.
a. ZCS agrees to hold harmless, indemnify, and defend the City, its elected
officials, officers, employees, and agents from and against any and all suits, actions,
claims, liability, damages, judgments, costs and expenses (including reasonable
attorney's fees) which result from or arise out of the sole negligence of ZCS, its officers, .
employees, and agents in Connection with or incidental to the performance or non-
performance of this Agreement.
b. The City agree3 to hold harmless, indemnify, and defend ZCS, its officers,
employees, and agents from and against any and all suits, actions, claims, liability,
damages, judgments, costs and expenses (including reasonable attorney's fees) which
result.. from or arise out of the sole negligence of the City, its elected officials, officers,
employees, and agents in connection with or incidental to the performance or non-
performance of this Agreement.
c. In the event til at the officials, officers, agents, and /or employees of both
ZCS and the City are both negligent, each party shall be liable for its contributory share
of negligence for any resulting suits, actions, claims, liability, damages, judgments, costs
and expenses (including reasonable attorney's fees).
d. Nothing contained in this Section or this Agreement shall be construed to
create a liability to any third party or a right of indemnification in any third party.
10. Insurance Provided by ZCS.
a. Commercial Liability Insurance. On or before the date this Agreement is
fully. executed by the parties, ZCS shall provide the City with a certificate of insurance as
proof of commercial liability insurance with minimum liability limit of One Million
Dollars ($i,000,000.00) combined single limit bodily injury and property damage. The
certificate shall clearly state the provider is, the amount of coverage, the policy
number, and when the policy and provisions provided are in effect. Said policy shall be
in- effect for the duration of this Agreement. The policy shall name the City, its elected
officials, officers, agents, and employees as additional insureds, and shall contain a
clause that the insurer will riot cancel or change the insurance without first giving the
City prior written notice. The insurance shall be with an insurance company or
companies rated A -VII or higher in Best's Guide and admitted in the State of
Washington.
b. Automobile Liability Insurance. ZCS has identified Craig Nance as the
individual who will use his !personal vehicle in conjunction with this Agreement. As
proof of insurance, Craig Nance will be required to furnish the City either a certificate of
insurance or a copy of the' declarations page from his personal automobile policy.
Minimum limits required are $250,000 per occurrence for single limit bodily injury and
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$100,000 per occurrence for property damage. Updated declarations pages will be
furnished to the City each time the personal automobile policies renew. The insurance
shall be with an insurance company or companies rated A -WI or higher in Best's Guide
and admitted in the State of Washington.
c. Professional Liability Policy. On or before date this Agreement is fully
executed by the parties, ZCS shall provide the City with a certificate of insurance as
evidence of professional liability coverage with a limit of One Million Dollars
($1,000,000.00) for each wrongful act and an annual aggregate limit of Two Million
Dollars ($2,000,000.00). The certificate shall clearly state who the provider is, the
amount of coverage, the policy number, and when the policy and provisions provided
are in effect. The insurance shall be with an insurance company rated A -VII or higher in
Best's Guide. The retroactive date of the insurance policy shall be on or before January
1, .1993, or shall provide full prior acts. The insurance coverage shall remain in effect
during the term of this Agr and for a minimum of three (3) years following_
> termination of this Agreement.
11. No Insurance. It is understood the City does not maintain liability insurance
for ZCS its employees.
12. Nondiscrimination Provision. During the performance of this Agreement,
ZCS shall not discriminate on the basis of race, age, color, sex, religion, national origin,
creed, marital status, politi affiliation, or the presence of any sensory, mental or
physical handicap. This provision shall include but not be limited to the following:
employment, upgrading, demotion, transfer, recruitment, advertising, layoff or
termination, rates of pay or other forms of compensation, selection for training, and the
provision of services under this Agreement.
13: Compliance, with Law. ZCS agrees to perform those services under and
pursuant to this Agreement in full compliance with any and all applicable laws, rules,
and regulations adopted or promulgated by any governmental agency or regulatory
body whether federal, state, local, or otherwise.
14. Non Waiver. The waiver by ZCS or the City of the breach of any provision of
this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach by either party or prevent either party thereafter enforcing any such
provision.
15. Assignment. This Agreement, or any interest herein, or claim hereunder, shall
not be assigned or transferred in whole or in part by ZCS to any other person or entity
without the prior written consent of the City. In the event that such prior written
consent to an assignment is granted, then the assignee shall assume all duties,
obligations, and liabilities of ZCS as stated herein.
16. Severability. If any portion of this Agreement is changed per mutual
agreement or any portion is !held invalid, the remainder of the Agreement shall remain
in full force and effect.
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17.. Notices. Unless stated otherwise herein, all notices and demands shall be in
writing and sent or delivered to the parties to their addresses as follows:
TO CITY: City of Yakima Legal Department
Attention: Helen Harvey, Sr. Assistant City
Attorney
200 South Third Street
Yakima, WA 98901 -2830
City of Yakima Finance Department
Attn: Cindy Epperson
129 North Second Street
Yakima, WA 98901
TO ZCS: Craig M. Nance, Claims Manager
Zaremba Claims Service - Yakima
P. O. Box 87
Yakima, WA 98907
Fax Number: (509) 45 -7
or to : such other addresses as the parties may hereafter designate in writing. Notices
and /or demands shall be sent by registered or certified mail, postage prepaid or
personally served. Such notices shall be deemed effective when mailed or hand
delivered at the addresses specified above.
18. Survival. Any provision of this Agreement which imposes an obligation after
termination or expiration of this Agreement shall survive the term or expiration of this
Agreement and shall be binding on the parties to this Agreement.
19. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington.
20. Venue. The venue for any action to enforce or interpret this Agreement shall lie
in the Superior Court of Washington for Yakima County, Washington.
21. Integration, and Supersession. This Agreement sets forth all of the terms,
conditions, and agreements of the parties relative to the subject matter hereof and
supersedes any and all such former agreements, which are hereby declared terminated
and of no further force and effect upon the execution and delivery hereof. There are no
terms, conditions, or agreements with respect thereto except as herein provided, and no
amendment or modification of this Agreement shall be effective unless reduced to
writing and executed by the parties.
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•
CITY OF YAKIMA ZAREMBA CLAIMS SERVICE -
YAKIMA
„A
By: By:
.77iy O'R iurke, City Mariager Cigt
Its: , . ager-Owner
Date: [0 ILI Date:
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ATTEST:
I �
e
By: . /Pz „/Ire 0
♦ ? C'■ Clerk
City Contract No.: -€ ( — /
State of Washington )
) ss.
County of Yakima )
I hereby certify that Ii know or have satisfactory evidence that Craig M. Nance is
the person who appeared before me, and said person acknowledged that he signed this
instrument, and on oath stated that he was authorized to execute the instrument and
acknowledged it as the Manager -Owner of Zaremba Claims Service - Yakima, to be the
free and voluntary act of such parry for the uses and purposes mentioned in this
instrument.
SUBSCRIBED AND SWORN TO before me this jay of May, 2014.
� .� �'ON A Kt 'It Printed name: s11-(4-�� X,eDET
`�� ` Q Q.�MMARY • •• NS .. NOTARY PUBLIC i and f • the State of
s: >q k ) j,,,
y . Washington, residing at
• t W4 ,4 ota p = My commission expires •- )S ajg
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First Extension of
Claims Service Agreement
This First Extension of the existing Claims Service Agreement (City
Contract No. 2014 -109) (hereafter "Agreement ") with Zaremba Claims Service -
Yakima (hereafter "ZCS ") is made and entered into by and between the City of
Yakima (hereafter the "City"), and ZCS.
Whereas, the City entered into said Agreement with ZCS for the purpose
of obtaining investigation and adjustment services regarding property and
liability damage claims against or by the City of Yakima; and
Whereas, the original term of said Agreement was for a two (2) year period
beginning January 1, 2014, and ending December 31, 2015; and
Whereas, Section 2 of said Agreement allows the City the right to extend
the Agreement for two (2) additional one (1) year periods, upon thirty (30) days
written notice to ZCS, which has occurred, and provides that the City Manager
has the authority to extend the Agreement pursuant to Section 2 of the
Agreement; and
Whereas, the City wishes to exercise its option to extend the Agreement for
a one (1) year period; and
Now, therefore, the City and ZCS agree to the following first one (1) year
extension of the existing Agreement, under the conditions set forth:
The term of the Agreement (City Contract No. 2014 -109) is hereby
extended for one (1) year through December 31, 2016, at which time
said Agreement shall terminate, unless sooner terminated by either
party in accordance with Section 6 of the Agreement, or unless the
Agreement is extended for another one (1) year period as specified
in Section 2 of the Agreement.
First Extension of Claims Service Agreement 1
between City of Yakima and
Zaremba Claims Service - Yakima
Except as expressly modified herein, all other terms and conditions of the
Claims Service Agreement between the City of Yakima and Zaremba Claims
Service - Yakima. (City Contract No. 2014 -109) shall remain in full force and
effect.
CITY OF YAKIMA ZAREMBA CLAIMS r ICE - YAKIMA
W. O' ourke raig ■ : ce
City M. ager s: Manager -Owner
Date: //t S Date: //—/S 0/S
ATTEST: i(4 r .1
`7" " City er '`,:r-
City Contract No.: 2014 -109
State of Washington
ss.
County of Yakima
I hereby certify that I know or have satisfactory evidence that Craig M.
Nance is the person who appeared before me, and said person acknowledged
that he signed this instrument, and on oath stated that he was authorized to
execute the instrument and acknowledged it as the Manager -Owner of Zaremba
Claims Service - Yakima, to be the free and voluntary act of such party for the
uses and purposes mentioned in this instrument.
SUBSCRIBED A�J ,WORN TO before me this l day of November 2015.
'y�
to � : z = Pr name: ) N K ROCS
�e
:.
• :� NOTARY PUBLIC in and fo the Stake of
�3;•,. •; �� Washington, residing at A
% ;9• o0 1 ., P 5'Z`��� My commission expires Ma .
First Extension of Claims Service Agreement 2
between City of Yakima and
Zaremba Claims Service - Yakima
Second Extension of
Claims Service Agreement
This Second Extension of the existing Claims Service Agreement, City
Contract No. 2014 -109 (hereinafter "Agreement ") with Zaremba Claims Service
- Yakima (hereinafter "ZCS ") is made and entered into by and between the City
of Yakima (hereinafter the "City") and ZCS.
Whereas, the City entered into said Agreement with ZCS for the purpose
of obtaining investigation and adjustment services regarding property and
liability damage claims against or by the City of Yakima; and
Whereas, the original term of said Agreement was for a two (2) year
period beginning January 1, 2014, and ending December 31, 2015; and
Whereas, Section 2 of said Agreement allows the City the right to extend
the Agreement for two (2) additional one (1) year periods, upon thirty (30) days
written notice to ZCS, which has occurred, and provides that the City Manager
has the authority to extend the Agreement pursuant to Section 2 of the
Agreement; and
Whereas, the First Extension of said Agreement was for a one (1) year
period beginning January 1, 2016 and ending December 31, 2016; and
Whereas, the City wishes to exercise its option to extend the Agreement
for another one ( year period; and
Now, therefore, the City and ZCS agree to the following second one (1)
year extension of the existing Agreement, under the conditions set forth:
The term of the Agreement (City Contract No. 2014 -109) is hereby
extended for one (1) year through December 31, 2017, at which
time said Agreement shall terminate, unless sooner terminated by
either party in accordance with Section 6 of the Agreement.
Second Extension of Claims Service Agreement 1
between City of Yakima and
Zaremba Claims Service - Yakima
Except as expressly modified herein, all other terms and conditions of the
Claims Service Agreement between the City of Yakima and Zaremba Claims
Service - Yakima. (City Contract No. 2014 -109) shall remain in full force and
effect.
CITY OF YAKIMA ZAREMBA CLAIMS SERVICE- YAKIMA
r
By :� i fl\ B y .: �'
Clif oo e C,Craig-- M: :N•ance
City Manager Its: Manager -Owner
Date: AA h' . it i C Date: / /,- -/ - /6
ATTEST: •‘ ‘‘
City\Cierk ► { - 1 t' 1
�yA -- , o • ' * f
City Contract No.: 2014 -109 `t;� , , . �' � :
2,Q, 0- ens(o4 11 '04'0\ .=
Second Extension of Claims Service Agreement 2
between City of Yakima and
Zaremba Claims Service - Yakima