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