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HomeMy WebLinkAboutR-1992-D6054 Damage ClaimsRESOLUTION NO. D 6 0 5 4 A RESOLUTION authorizing and directing the City Manager and the City Clerk of the City of Yakima to execute a contractual agreement with Zaremba Claims Ser- vices, Inc. for claims adjusting services for damage claims filed against the City of Yakima. WHEREAS, the City desires to obtain claims adjusting services that are both low cost and of high quality, for the resolution of claims filed with the City of Yakima relating to both property damage and bodily injury; and WHEREAS, Zaremba Claims Services, Inc. has submitted a proposal to address the City's concerns with terms acceptable to the City, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and City Clerk of the City of Yakima are hereby authorized and directed to execute a contractual agree- ment with Zaremba Claims Services, Inc. for the purpose ae- scribed above, a copy of which agreement is attached hereto and made by reference a part hereof. 9V7eatl..., ADOPTED BY THE CITY COUNCIL this %/ day of 1992. \,:;)cti Mayor ATTEST: City Clerk (res/zaremba.sc) CLAIMS SERVICE CONTRACT THIS AGREEMENT, made and entered into this Zi 5't day of January, 1992, between ZAREMBA CLAIMS SERVICE, INC., a Washington Corporation, with principal offices at 508 N. 20th Avenue, Yakima, Washington 98902, hereinafter referred to as "ZCS", and CITY OF YAKIMA, WASHINGTON, with principal offices in Yakima, Washington, hereinafter referred to as "Client". WITNESS: WHEREAS, "ZCS" is in the claims service business and Whereas, "Client" desires to employ "ZCS" as its claims service company to service the Property and General Liability claims of "Client's" arising out of their facilities located in Yakima, Washington. NOW, THEREFORE, "ZCS" and "Client" contract as follows: "ZCS" AGREES: 1. (a) To review all claim and/or loss reports with claim and/or loss dates incurred during the term of this Contract which involves Property and General Liability claims against "Client". Page Two (b) To investigate, adjust, settle or resist all such losses and/or claims within the discretionary settlement authority limit of $2,500.00. (c) To investigate, adjust, settle or resist all such losses and/or claims as are in excess of the discretionary settlement authority limit of $2,500.00 only with specific prior approval of "Client". (d) To furnish all claim forms necessary for proper claims administration. (e) To establish claim and/or loss files for each reported claim and/or loss. Such files shall be the exclusive property of "Client" at any reasonable time, with notice. (f) To furnish "Client" a monthly Quarterly Activity Loss Run and a Quarterly Loss Prevention Analysis Run. (g) To maintain adequate General Liability, Automobile Liability, Workers' Compensation, Fidelity Bond and Errors and Omissions Insurance coverage. To furnish the "Client" with a Certificate of Insurance as evidence of liability and errors and omissions coverage at a minimum limits of $1,000,000 per occurrence. (h) To indemnify, defend and hold harmless "Client" with respect to any claims asserted as a result of any errors, omissions, torts, intentional torts or other negligence on the part of "ZCS" and/or its employees unless the complained of actions of "ZCS" were taken at the specific direction of "Client". Page Three "CLIENT" AGREES: 1. (a) To make funds available that "ZCS" may draw from at any time and from time to time for claim and/or loss payments and for associated allocated expense within the discretionary settlement authority limit of $2,500.00 and for claim and/or loss payments in excess of the discretionary settlement authority limit of $2,500.00 with the prior approval of "Client". (b) To pay "ZCS" the service fee as prescribed in this Contract. (c) To pay all allocated loss expense in addition to the claim service fee to be paid to "ZCS" as prescribed in this Contract. "Allocated Loss Expense" shall include but not be limited to attorneys' fees, commercial photographers' fees (i.e. engineering, physicians, chemists, etc.), fees for independent medical examinations, witnesses travel expense, extraordinary travel expense incurred by "ZCS" at the request of "Client", court reporters' fees, transcript fees, the cost of obtaining public records, witness fees, auto appraisal or property appraisal fees, all outside expense items, and any other similar fee, cost or expense associated with the investigation, negotiation, settlement or defense of any claim hereunder or as required by the collection of subrogation on behalf of "Client". Page Four (d) To relinquish authority to "ZCS" in all matters relating to claims service within the discretionary settlement authority limit of $2,500.00. (e) In the event "ZCS" acting at the specific direction of "Client" becomes liable to any third party, "Client" becomes liable to any third party, "Client" agrees to indemnify, defend and hold "ZCS" and/or its employees harmless. (f) If "ZCS" or any of its employees are named as defendant in any action (i) where the plaintiff's cause of action involves a claim hereunder and (ii) where there are not allegations of errors, omissions, torts, intentional torts or other negligence on the part of "ZCS", "Client" will assume the defense of the action on behalf of "ZCS" and/or its employees. "ZCS" AND "CLIENT" MUTUALLY AGREE AS FOLLOWS: 1. (a) The term of this Contract is continuous from its effective date for one (1) year. The Contract may be terminated by either "ZCS" or "Client" with cause by sixty (60) days' prior written notice by certified mail. (b) "Client" shall have the option, upon termination of this Contract: (i) To self -handle to a conclusion all claims and/or losses and associated services pending on the date of termination of this Contract, such Page Five handling not to result in any expense or reduction in Contract revenue to "ZCS" or (ii) For an additional fee to be mutually agreed upon by "ZCS" and "Client" to have "ZCS" handle and adjust to a conclusion all claims and/or losses which have been reported to "ZCS" and which are open on the date of termination of this Contract. 2. (a) The contract covers Claim Service for "Client" in the United States of America. (b) "Client" shall pay "ZCS" fees in accordance with the fee schedule that follows. (c) "Client" agrees to pay "ZCS" within thirty (30) days of receipt of invoice. 3. (a) In the event any one or more of the provisions of this Contract shall be determined to be invalid or unenforceable by any court or other appropriate authority, the remainder of this Contract shall continue in full force and effect, as if said invalid and unenforceable portion had not been included in this Contract. (b) This Contract shall be construed and interpreted in accordance with the laws of the State of Washington. 4. This Contract represents the entire understanding of "ZCS" and "Client" and supersedes all prior oral and written communications between "ZCS" and "Client" as to the subject Page Six matter. Neither this Contract nor any provisions of it may be amended, modified or waived except in writing signed by a fuly authorized representative of "ZCS" and "Client". 5. The failure or delay of either "ZCS" or "Client" to take action with respect to any failure of the other party to observe or perform any of the terms or provisions of this Contract, or with respect to any default hereunder by such other party, shall not be construed as a waiver or operate as a waiver of any rights or remedies of either "ZCS" or "Client" to operate to deprive either "ZCS" or "Client" of its right to institute and maintain any action or proceeding which it may deem necessary to protect, assert or enforce any such rights or remedies. IN WITNESS WHEREOF, "ZCS" and "Client" have caused this Contract to be executed by the person authorized to act in their respective names. Page Seven City of Yakima agrees to pay Zaremba Claims Service, Inc. an annual fee of $19,800.00 paid cn a quarterly basis for up to 120 claims per year. This fee shall remain at $19,800 for a three year period. Claims in excess of 120 per year will be an additional $195 per claim. "ZCS" will be paid a flat fee of $1,650.00 to take over the handling of existing open claims. The cost to transfer historical data from the current provider will be billed on a time and expense basis. Signed this 6 a-- day of ZAREMBA CLAIMS SERVICE, INC. WITNESS: Y, (3(2tift e— , 1992. �v� ��.� BY: CITY OF YAKIMA WITNESS: mv„) (• afvud TITLE: f5'""S- BY: TITLE: City Manager ATTEST: Kc ..a. _ , t/(,--es-cAjti., / City Clerk City Contract No. 92-9/D-6054 CLAIMS SERVICE CONTRACT THIS AGREEMENT, made and entered into this 09---1 "Sr day of January, 1992, between ZAREMBA CLAIMS SERVICE, INC., a Washington Corporation, with principal offices at 508 N. 20th Avenue, Yakima, Washington 98902, hereinafter referred to as "ZCS", a::d CITY OF YAKIMA, WASHINGTON, with principal offices in Yakima, Washington, hereinafter referred to as "Client". WITNESS: WHEREAS, "ZCS" is in the claims service business and Whereas, "Client." desires to employ "ZCS" as its claims service company to service the Property and General Liability claims of "Client's" arising out of their facilities located in Yakima, Washington. NOW, THEREFORE, "ZCS" and "Client" contract as follows: "ZCS" AGREES: 1. (a) To review all claim and/or loss reports with claim and/or loss dates incurred during the term of this Contract which involves Property and General Liability claims against "Client". Page Two (b) To investigate, adjust, settle or resist all such losses and/or claims within the discretionary settlement authority limit of $2,500.00. (c) To investigate, adjust, settle or resist all such losses and/or claims as are in excess of the discretionary settlement authority limit of $2,500.00 only with specific prior approval of "Client". (d) To furnish all claim forms necessary for proper claims administration. (e) To establish claim and/or loss files for each reported claim and/or loss. Such files shall be the exclusive property of "Client" at any reasonable time, with notice. (f) To furnish "Client" a monthly Quarterly Activity Loss Run and a Quarterly Loss Prevention Analysis Run. (g) To .maintain adequate General Liability, Automobile Liability, Workers' Compensation, Fidelity Bond and Errors and Omissions Insurance coverage. To furnish the "Client" with a Certificate of Insurance as evidence o.E liability and errors and omissions coverage at a minimum limits of $1,000,000 per occurrence. (h) To indemnify, defend and hold harmless "Client" with respect to any claims asserted as a result of any errors, omissions, torts, intentional torts or other negligence on the part of "ZCS" and/or its employees unless the complained of actions of "ZCS" were taken at the specific direction of "Client". Page Three "CLIENT" AGREES: 1. (a) To make funds available that "ZCS" may draw from at any time and from time to time for claim and/or loss payments and for associated allocated expense within the discretionary settlement authority limit of $2,500.00 and for claim and/or loss payments in excess of the discretionary settlement authority limit of $2,500.00 with the prior approval of "Client". (b) To pay "ZCS" the service fee as prescribed in this Contract. (c) To pay all allocated loss expense in addition to the claim service fee to be paid to "ZCS" as prescribed in this Contract. "Allocated Loss Expense" shall incl de but not be limited to attorneys' fees, commercial photographers' fees (i.e. engineering, physicians, chemists, etc.) , fees for independent medical examinations, witnesses travel expense, extraordinary travel expense incurred by "ZCS" at the request of "Client", court reporters' fees, transcript fees, the cost of obtaining public records, witness fees, auto appraisal or property appraisal fees, all outside expense items, and any other similar fee, cost or expense associated with the invesigation, negotiation, settlement or defense of any claim hereunder or as required by the collection of subrogation on behalf of "Client". Page Four (d) To relinquish authority to "ZCS" in all matters relating to claims service within the discretionary settlement authority limit of $2,500.00. (e) In the event "ZCS" acting at the specific direction of "Client" becomes liable to any third party, "Client" becomes liable to any third party, "Client" agrees to indemnify, defend and hold "ZCS" and/or its employees harmless. (f) If "ZCS" or any of its employees are named as defendant in any action (i) where the plaintiff's cause of action involves a claim hereunder and (ii) where there are not: allegations of errors, omissions, torts, intentional torts or other negligence on the part of "ZCS", "Client" will assume the defense of the action on behalf of "ZCS" and/or its employees. "ZCS" AND "CLIENT" MUTUALLY AGREE AS FOLLOWS: 1. (a) The term of this Contract is continuous from its effective date for one (1) year. The Contract may be terminated by either "ZCS" or "Client" with cause by sixty (60) days' prior written notice by certified mail. (b) "Client" shall have the option, upon termination of this Contract: (i) To self -handle to a conclusion all claims and/or losses and associated services pending on the date of termination of this Contract:, such Page Five handling not to result in any expense or reduction in Contract revenue to "ZCS" or (ii) For an additional fee to be mutually agreed upon by "ZCS" and "Client" to have "ZCS" handle and adjust to a conclusion all claims and/or losses which have been reported to "ZCS" and which are open on the date of termination of this Contract. 2. (a) The contract covers Claim Service for "Client" in the United States of America. (b) "Client" shall pay "ZCS" fees in accordance with the fee schedule that follows. (c) "Client" agrees to pay "ZCS" within thirty (30) days of receipt of invoice. 3. (a) In the event any one or more of the provisions of this Contract shall be determined to be invalid or unenforceable by any court or other appropriate authority, the remainder of this Contract shall continue in full force and effect, as if said invalid and unenforceable portion had not been included in this Contract. (b) This Contract shall be construed and interpreted in accordance with the laws of the State of Washington. 4. This Contract represents the entire understanding of "ZCS" and "Client" and supersedes all prior oral and written communications between "ZCS" and "Client" as to the subject Page Six matter. Neither this Contract nor any provisions of it may be amended, modified or waived except in writing signed by a fuly authorized representative of "ZCS" and "Client". 5. The failure or delay of either "ZCS" or "Client" to take action with respect to any failure of the other party to observe or perform any of the terms or provisions of this Contract, or with respect to any default hereunder by such other party, shall not be construed as a waiver or operate as a waiver of any rights or remedies of either "ZCS" or "Client'" to operate to deprive either "ZCS" or "Client" of its right to institute and maintain any action or proceeding which it may deem necessary to protect, assert or enforce any such rights or remedies. IN WITNESS WHEREOF, "ZCS" and "Client" have caused this Contract to be executed by the person authorized to act in their respective names. Page Seven City of Yakima agrees to pay Zaremba Claims Service, Inc. an annual fee of $19,800.00 paid cn a quarterly basis for up to 120 claims per year. This fee shall remain at $19,800 for a three year period. Claims in excess of 120 per year will be an additional $195 per claim. "ZCS" will be paid a flat fee of $1,650.00 to take over the handling of existing open claims. The cost to transfer historical data from the current provider will be billed on a time and expense basis. Signed this o, i* day of ZAREMBA CLAIMS SERVICE, INC. WITNESS: CiU CITY OF YAKIMA WITNESS: " , 1992. ( BY: TITLE: BY: TITLE: City M. ATTEST:�i.'_, City Clerk City Contract No. 92-9/D-6054