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R94-154RESOLUTION NO. R94-/~-~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERKTO EXECUTE A SERVICE AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND INSURANCE SERVICING & ADJUSTING COMPANY, (ISAC) PROVIDING FOR CLAIM MANAGEMENT SERVICES FOR THE CITY'S WORKERS' COMPENSATION RISKS; AND PROVIDING ~AN EFFECTIVE DATE. WHEREAS, the City has previously entered into an Agreement with Insurance Servicing & Adjusting Company (ISAC), which Agreement which provides claims management service for the City's Workers' Compensation risks and also provides specific services in connection with such claims, which Agreement expires October 1, 1994; and WHEREAS, upon recommendation of staff, the City Commission deems it to be in the best interests of the citizens and residents of the City of Boynton Beach to renew said Agreement for a term commencing October 1, 1994 through September 30, 1997. NOW, TN~REFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA THAT: ~ The City Commmssion hereby authormzes and directs the Mayor and City Clerk to execute a Service Agreement between the City of Boynton Beach and Insurance Servicing & Adjusting Company (ISAC) for a term commencing October 1. 1994. to expire September 30. 1994. a copy of said Agreement being attached hereto as Exhibit "A" ~ This Resolution shall take effect immediately upon passage. PASSED AND ADOPTED this ~ day of September, 1994. ATTEST: Ci~ Clerk ~-~ CITf~ OF BOY. TON BE~ACH. FLORIDA Aut~h. S ig 9/15/96 S~RVICE AGREEMENT THIS AGREEMENT is entered into this day of , 1993, by and between INSURANCE SERVICING & ADJUSTING COMPANY, a Florida corporation, hereinafter referred to as "ISAC", and THE CITY OF BOYNTON BEACH hereinafter referred to as "THE CITY" I. RECITALS Ao THE CITY wishes to retain the services of ISAC to provide claims Management services for it's Workers' Compensation risks and desires to have ISAC provide specific services in connection with such claims program. Be ISAC is willing to provide such services on the terms and conditions hereinafter stated. This Agreement shall be effective for a period of THREE ( 3 ) year(s) from OCTOBER 1, 1994 through SEPTEMBER 30, 1997 and shall remain in full force and effect except as amended or terminated as hereinafter provided. III. CANCELLATION Either Party shall have the right to terminate the Agreement by giving to the --1-- other Party written notice of'such termination at least Ninety (90) days in advance. THE CITY'S failure to pay the ISAC service fee as provided in Item IV, Section B of this Agreement shall be construed as a breach of the Agreement and and, in such event, ISAC shall have the right to terminate the Agreement by giving THE CITY ten (10) days' written notice of its intention to terminate. Upon termination of this Agreement, neither Party shall have any furthe~-~ responsibility or obligation hereunder except as provided in Item'IV, Section .... of this Agreement. IV. AGREEMENT A. Services to be Performed bv ISAC. ISAC agrees to ~erform the following serv~ces~ 1. With regard to CLAIMS ADMINISTRATION, ISAC shall: a. Review all claim and loss reports submitted by THE CITY to ISAC during the term of this Agreement and process eacb--~ submitted claim or loss repor~ in accordance with administrativ. not~fication requirements. b. Conduct an investigation of each reported claim or loss under subparagraph "a" above (hereinafter referred to as a "qualified claim or loss") to the extent deemed necessary by ISAC in the --2-- performance of its obligations hereunder. Maintain a file for each qualified claim or loss which shall be available for review by THE CITY at any reasonable time. Adjust, settle or resist all qualifying claims or losses arising therefrom within the stated discretionary settlement authority limit and, with specific prior approval of THE CITY, adjust, settle or resist all other qualifying claims and losses resulting therefrom in excess of the discretionary settlement authority limit. Perform reasonable and necessary administrative and clerical work in connection with each qualified claim or loss, including the preparation of checks or vouchers, compromises, agreements and any other documents to finalize a claim. f. Recommend claim reserves and provide a continuous review and updating of these to reflect changes. g. ISAC will assist THE CITY in arranging a loss and expense payment account as set out in Section B, Paragraph 2. -3- h. Notify THE CITY, THE CITY'S representative or excess insurers, as determined by THE CITY, of all qualified claims or losses with respect to which potential losses may exceed THE CITY'S retention and, if requested, provide such parties with necessary information on the current status of those claims or losses. i. Coordinate investigations on litigated claims' with attorne' approved by THE CITY and with adjusters and attorneys of the excess insurance carrier as required. This includes the negotiation of settlements and preparation of subrogation and contribution actions. It is expressly understood by the Parties to this Agreement that all legal costs and loss payments will be charged to THE CITY'S Loss Fund. Nothing herein shall constitute the grant of authority to ISAC to retain or otherwise direct legal counsel or to incur any legal fees without prior written consent from THE CITY. j. All claims will be reviewed by ISAC's staff at no additions cost to THE CITY. k. ISAC will furnish to THE CITY a standard set of loss and information reports showing detail and summary loss information no later than 30 working days following the close of the month. -4- A copy of said loss and information reports shall be provided to the City Attorney. 1. Additional optional and ad hoc information and analysis reports and services can be provided on a time and expense basis, as mutually agreed upon by ISAC and THE CITY. m. Provide narrative or analytical reports of major or litigated claims, if requested by THE CITY. n. Provide claim forms and other forms believed by ISAC to be appropriate for the efficient administration of THE CITY program. o. Investigate and pursue all subrogation possibilities on behalf of THE CITY in all states permitting subrogration. Funds received from all subrogation collections shall be considered revenue of THE CITY. Provide all ~ersonnel necessary to effectively perform the services agreed to herein. 2. With regard to WORKERS, COMPENSATION and MEDICAL CONTROL, ISAC shall~ -5- a. Arrange for independent medical or other experts to the extent deemed necessary by ISAC in connection with processing any qualified claim or loss. Pay medical and death benefits, temporary and permanent disability compensation and other losses and expens~ but only if in the judgment of ISAC, such Payment would b~ prudent for THE CITY andthe anticipated amount thereof does not exceed the stated settlement authority or, in any case, THE CITY specifically approves or directs such action. c. Assist in THE CITY'S selection of a panel of physicians or other providers of health care to initially treat employees and a panel of medical specialists to provide long-term or specialty'care. d. Consult with THE CITY in order to develop using any medical facility more effectively. ways e. Monitor the treatment programs recommended for employees by physicians, specialists and other health care providers by reviewing all medical reports so prepared and by maintaining such contact with these providers as may be appropriate in the judgment of ISAC. --~-- of f. As THE CITY directs, assist in interpreting medical to consider the circumstances under which an employee who desires to do so could return to work in shortest period of time. reports injured the g. Assist THE CITY in arranging for rehabilitation or retraining of employees in appropriate cases; charges for these programs shall be considered allocated expense and charged to THE CITY. 3. With regard to PROGRAM DEVELOPMENT, ISAC shall, to the extent appropriate:'- a. Consult with key personnel of THE CITY on the establishment and coordination of necessary procedures and practices to meet any applicable state requirements and the needs of THE CITY. b. Participate in the orientation of THE CITY'S personnel who are directly or indirectly involved in the processing of qualified claims or losses. -7- c. Review the development of THE CITY'S program periodically with representatives of THE CITY in order to identify problems and recommend corrective action. B. Obliqations of THE CITY. 1. THE CITY shall pay ISAC on a per claim basis for all claims follows= October it 1994 to SePtember 30. 199S The sum of EIGHTY FIVE DOLLARS ($85.00) for MEDICAL ONLY claims and the sum of TWO HUNDRED.AND NINETY FIVE DOLLARS ($295.00) for LOST TIME claims. October 1, 1995 to September 30. 1996 The sum of NINETY DOLLARS (990.00) for MEDICAL ONLY claims and the sum of THREE HUNDRED AND TEN DOLLARS (S310.00) for LOST TIME claims. October 1. 1996 to September 30. 1997 The sum of NINETY FIVE DOLLARS ($95.00) for MEDICAL ONLY claims and the sum of THREE,HUNDRED AND TEN DOLLARS (S310.00) for LOST TIME claims. Said fees are to be billed monthly by ISAC and paid by THE CITY by the 15th of each month. 2. THE CITY shall at all times provide funds adequate for the payment of qualified claims or losses and of allocated loss expensea. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties incurred by ISAC, its agents or its employees, which are properly chargeable to a qualified claim or loss including, without limitation, court costs, --8-- fees and expenses of attorneys, independent investigators, experts and witnesses, and fees for obtaining diagrams, reports, documents and photographs. Nothing herein shall constitute the grant of authority to ISAC to retain or otherwise direct legal counsel or to incur any legal fees without prior written consent from THE CITY. a. THE CITY will establish procedures t° make timely payments of loss and expense vouchers submitted by ISAC during the course of their claims management program. 3. It is expressly understood that ISAC shall not be required to advanc® its own funds to pay losses, allocated loss expenses or banking charges hereunder, or to perform any services hereunder if THE CITY fails to provide adequate funds as herein set forth. C. Discretionary Disbursement AuthoFity L{m{t. The limit on any diecretionarypayment by ISAC for a qualified claim or loss, or for allocated loss expenses, as the case may be, shall be FIVE THOUSAND DOLLARS ( $5,000.00 ) initially'. This amount ma~ be changed at any time by THE CITY upon written notice to ISAC. It is agreed that ISAC shall have full authority and control in all matters pertaining to the payment, processing, investigation and -9- administration of qualified claims or losses within the limit established by this paragraph. Failure of ISAC to settle a qualified claim or loss within such limit, however, sh~ll not subject ISAC to liability to any party in the event of an adverse judgment entered by any court or the settlement of such claim or loss for an amount in excess of such limit. No discretionary payment may be made by IS~7-~ without notice (the standard monthly re~orts shall constitute notice) t~ THE CITY'S Risk Manager. All settlements shall comply with the notice and disclosure requirements of Chapter 69, Florida Statutes. D. Terms of Aqreement and Cancellation. 1. In the event of cancellation of this Agreement, ISAC will handle all files to conclusion with no additional fee to be paid by THE CITY. a. ISAC will treat as confidential all data furnished by THE CITY or generated aea result of the prooessing services- performed under this Agreement and any other information so in writing by THE CITY, and ISAC will make effort to safeguard such information as it doeB in its own confidential data. designate~-~ the sam~.~ protecting -10- b. ISAC reserves the right to gather and utilize, as it sees fit, statistical information from the data base~ provided, however, that THE CITY'S name and proprietary and/or confidential data are adequately protected and not disclosed. E. Practice of Law. It is understood and agreed that ISAC will not perform, and THE CITY will not request performance of, any services which may constitute the unauthorized practice of law. F. Indemnification. ISAC shall be fully responsible for exercising reasonable care at all times in the performance of its obligations hereunder. However, if ISAC is named as a party to any litigation because of its actions, except actions alleging gross negligence or willful conduct by the named ISAC employees, on behalf of THE CITY hereunder, THE CITY agrees to defend ISAC in any such litigation if no allegation is made that ISAC failed to exercise such reasonable care, and to hold harmless and indemnify ISAC if no finding is entered to the effect that ISAC failed to exercise such reasonable care. ISAC shall hold THE CITY harmless and indemnify THE CITY for any loss to THE CITY resulting from fraud or collusion by any ISAC employee in the payment of any claim or charge. -1!- G. Any notice required to be given under this Agreement shall be Notices. sent by certified mail to the following in the case of ISAC: Mr. Joseph P. McCurdy Insurance Servicing & Adjusting Company 9690 Doral Boulevard (NW 41st Street) Miami, FL 33178 and to the following in the case of THE CITY OF BOYNTON BEACH Mr. Wilfred Hawkins The City of Boynton Beach 100 East Boynton Beach Boulevard Eoynton Beach, FL 33425 Successors. This Agreement shall be binding upon and shall inure to the benefits of all assigns, transferees and successors in the interest of any kind of the Parties hereto. Entire Aareement and Mo~{~ication or a~,,~m.~. This Agreemen represents the entire and exclusive statement of the agreement of the Par~ies and, except as otherwise provided in Item IV, Section C, may be modified or amended only by a written statement signed by both Parties. Such mo~ification or amendment shall be attached to, and shall thereupon become a part of this Agreement. -12- J. Headin=s. Headings herein are for convenience of reference only and shall not be considered £n any interpretation of this Agreement. K. Independent Contractor. It is understood and agreed that ISAC is engaged to perform services under this Agreement as an independent contractor and not as an agent of THE CITY . The Parties hereto agreed that neither Party has any relationship with, or contractual liability to, the other with respect to the subject matter of this Agreement, other than as set forth herein. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the day and date first above written. B~s~IN~URAN~ SERVICING & ADJUBTING COMPANY Thomas A. Williams Title: SBNXOR VZ~ PBSXD~ TH~ CITY OF BOYNTON BEAC~ Edward Harmening T£tle: M~YOR bbagree -13-