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R01-301RESOLUTION NO. R01- ~O1 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ADDEND~ NO. 1 TO AGR_EEMENT FOR SERVICES BETWEEN ~E CiTY OF BOYNTON BEACH AND GALLAGHER BASSETT SERVICES, INC.; AND PROVIDING AN EFFECTIVE DATE. WItEREAS, on November 8, 2000, the City Commission entered into an Agreement with Gallagher Bassett Services, Inc., providing for insurance claims adjustment services for third party general and auto liability claims, and first and third party property damage claims; and WItEREAS, the attached Addendum extends that Agreement for an additional one year period, at a reduced cost to the City NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF ritE CITY OF BOYNTON BEACH, FLORIDA, TItAT: Section 1. The City Commission of the City of Boynton Beach, Florida does ~ereby authorize and direct the Mayor and City Clerk 4o execute an Addendum to the kgreement for Services between the City of Boynton Beach and Gallagher Bassett Services, 2c., extending the term for a one (1) year period, and amending Schedule V Services and Fees, a copy of said Agreement being attached hereto as Exhibit "A". Section 2. This Resolution shall become effective immediately upon passage, ~TTEST: Clerk PASSED AND ADOPTED this ~o day of November, 2001. CITY OF~ BOYNTON BFakCtt, FLORIDA Vice Mayor Commissioner Co ~ ~ ADDENDUM #1 TO AGREEMENT FOR SERVICES BETWEEN CITY OF BOYNTON BEACH AND GALLAGHER BA~SETT SERVICES, INC. ORIGINAL. PERIOD OF AGREEMENT: 10/1/00 - 10/lj01 DATE OF CHANGE: 10/I/01 It is hereby noted and agreed that for the pedod from 10/1/01 to 10/1/02, Schedule V of this Agreement is amended to read as per the attached revised Schedule V. All other terms and condilJons remain unchanged. DATED THIS ~J ~ ~''/f DAY OF ~ A.D. 2001. CITY OF BOY~'TON BEACH By: 'ri.e: I GALLAGHER BASSE'rr SERVICES, INC. ROBERT MASON, CHIEF FINANCIAL OFFICER ~ov/~s TO FORM: ! Client; Clt~ of Boynton Beach Service Period_' From 10/1/01 to SCHEDULE V SER.~ICES AND FEES 10/1/02 GB Client #: 001470 ADDITIONAL SERVICE TERMS AND C~NDITION$: Client will be billed against the initial claim handrmg deposit of $1 $,435 at the foliow~g per claim rates; Auto/General Liability Bodity Injut3/{~ $651 per ctaim Auto/Genera Uab#m/Pmper~ Damage Q $332 per cJa~ Property Q $5,34. per claim BILLING AND PAYMENT TERMS: Fee is pay-able in I annual installment beginning 10/1/01. Fees are payable Ul:X,l receipt of invoice. GB reserves the right charge 1% per mor~fl, or th-, maximum legal f,,[=, on baJences unpaid after 30 days. Gallagher Bassett Services, Inc. Tax I.D. 36-3365500 ILL TO: ATTN: COO 1470000 CITY OF BOYNTON BEACH 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH. FL 33425-0310 CHUCK MAGAZINE CLIENT: NUMBER TYPE INV-00033430 INSTALL DATE PAGE 10/26/2001 1 P.O./REFERENCE CONTRACT NO. 00147000102 INST.~LLMEN 10/ 1/2001-9/30/20(T2 COO 1470000 CITY OF BOY'NTON BEACH Contract Period: 10/01/2001 - I 0/01 '2002 DESCRIPTION Contracted Service Fees AMOUNT 42,030.0 For any questions regarding your account or this invoice please contact: NANCY COUNTRYMAN 954/846- t 33 I GALLAGHER BASSETT SERVICES, INC. t5!51 SAWGRASS CORP. PARKWAY sUITE 220 SUNRISE. FL 33323 INVOICE-TOTAL I Please Remit To: GALLAGHER BASSETT SERVICES. INC. ACCOUNTING DEPARTMENT 5TH FLR TWO PIERCE PLACE ITASCA. IL 60143-3141 Direct Electronic Payments To: BANK OF AMERICA, CHICAGO, IL ACCOUNT NO. 8188101083 ABA NQ 0710 000 39 ORIGINATOR: CITY OF BOYNTON BEACH PAYMENT DETAIL: INV-00033430 42.030.£ Original RESOLUTION NO, R 00- I~'~,R~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, APPROVING THE AWARD OF A BID TO GALLAGHER BASSET SERVICES, INC. TO PERFORM ADJUSTMENT SERVICES FOR LIABILITY AND PROPERTY CLAIMS, IN THE AMOUNT OF $46,246; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID CONTRACT; A.ND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Boymon Beach, upon recommendation of staff, deems it to be in the best interests of the citizens of the City of Boynton Beach to piggyback off the Contract for Services between City of Riviera Beach and Gallagher Bassett Services, he., effective 10/01/2000 through 10/01/2001 to perform adjustment services for liability and property claims, in the mount of $46,246. NOW, TI~-E~REFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The City Commission of the City of Boynton Beach, Florida, hereby approves the piggyback off Contract for Services between City of Riviera Beach and Gallagher Bassett Services, Inc. effective 10/01/2000 through 10/01/2001, and authorizing the Mayor and City Clerk to execute a Contract between the parties, a copy of which is ~achefl h~'eto as Exhibit "A". Section 2. That this Resolution shall become effective immediately. PASSED AND ADOPTED THIS ~ dayof November, 2000. Vice Mayor Co~ufsion~r Cowmi.qsioner ATTEST: (Co~t, s~W. w,r.~-.Ko, ti ~ GALLAGHER BASSETT SERVICES~ INC. CONTRACT FOR SERVICES PARTIES City of Boynton Beach (hereinafter ~CLIENT") hereby retains Gallagher Bassett Services. inc. (hereinafter "GB") to perform the services listed on Schedule V. TERM This contract shall be in effect fi.om 10/1/00 to 10/1/01 and shall remain in full force and effect unless amended or terminated. IfCLIENTelects to continue this Agreement beyond 10/1/01. GB will renew the contract by Addendum on an annual basis. ATTACHMENTS Attached hereto and made a part hereof are the following schedules: L OBLIGATIONS OF THE PARTIES II. BANKING III. TERMS AND CONDITIONS IV. DEFINITIONS V. SERVICES AND FEES CITY OF BOYNTON BEACH By:__ Title: GALLAGHER BASSEr I SERVICES. INC, By: Date: ROBERT MASON CHIEF FINANCIAL OFFICER ADDRESS: P.O, Box 310 100 E. Boynton Beach Blvd. Boynton Beach. FL 33425-0310 ADDRESS: Two Pierce Place Itasca. tL 60143-3141 O~C~ll~:~mlO~ I~laO~. Ciiy of - O01470.d(X: -2- SCHEDULEI OE'LIGATIONS OF THE PARTI;-~ A. Obli.qations of GB GB agrees to perform the following services: 1. With regard to Claims Administration, GB shall: Review each claim and loss report submitted Dy the CLIENT during the term of this contract. Conduct an investigation of each qualified claim or loss to the extent deemed necessary by GE,. Maintain a file for each qualified claim or loss which shall be available for review by the CLIENT. eo Adjust, settle or resist all qualified claims or losses: 1) within the stated discretionary serdemant authodt~ limit;, 2) with specific approval of the CLIENT. if outside the stated authority limit. Perform necessary and customary administrative and clerical work in connexion with each- qualified claim or loss, including the preparation of checks or vouchers, releases, agreements and other documents needed to finalize a ctsim. f. Establish and update claim reserves as needed. Assist the CLIENT in establishing a banking arrangement for lOSS and expense payments as set forth in Schedule I1. Notify CLIENT. CLIENT's agent or carders, as designated by the CLIENT. of all qualified claims or losses which may exceed the CLIENT's retention and, if requested, provide information on the status of those claims or losses. Coon:linate investigations o~ litigated claims with attomeys representing the CLIENT and with representatives of the excess career, as required. It is expressly understood that all legal casts and loss payments wil! be charged to the CLIENT. Have GB's intemal Product Support staff review large and unusual claims at no additional cost to the CLIENT, unless specified in Schedule V. Investigate and pursue subrogation possibilities on behalf of the CLIENT in all states permitting subrogatl~l. Funds received fi'om all subrogation collections shell be considered revenue of the CLIENT. Maintain an automated loss and information system, and provide the CUENT with reports from RISX-FACSe as eat forth in Schedule V. m. Provide forms, as determined by GB, needed to administer the CLIENT,s program. Provide additional ed hoc information, analysis, reports and services on a time and expense basis. -3- o. Assist the CLIENT in selecting appropriate experts or soecialists as the claims may reau~re. p. Provide personnel nee(led to perform the services agreed to herein. With respect to Self-Insurance Qualification. GB shall assist the CLIENT in the filing of aeriodic reports and renewal applications re(3uired by state administrative agencies. Ail fees and assessments in connection with such are the obligation of the CLIENT. With regard to Risk Control Consulting and Appraisals. GB shall Provide the services set forth'in Schedule V. 4. Provide other services as set forth in Schedule V. Obligations of CLIENT CLIENT shall Jay GB for services the annual sum set forth in Schedule V'. as agreed to under the "Billing and Payment Terms" section. At the end of eac~ co~act period, the annual compensation shall be subject to adjustment. Whereapplicable. GB shall audit the claim counts at the 18th, 24th, 36th and 48th month. CLIENT shall pay GB any additional fees due as a result of these audits as specified under the Billing and Payment Tertns section in Schedule V. CLIENT shall provide funds for the payment of qualified claims or losses, allocated loss expenses, and any Managed Care fees, if applicable. GB shall not be required to advance funds to pay losses, allocated loss eXPanses, bank charges, or Managed Care fees. Fees are payable upon receipt of invoice. GB reserves the right to charge 1% per month, or the maximum IogaLrate, on balances unpaid after 30 days. SCHEDULE II BANKING - VOUCHER GB agrees to assist the CLIENT in setting up a voucher system for loss and expense payments. CLIENT shall at all times be r~sponsible for the payment of qualified claims or losses and of allocated loss expenses. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties incurred by GB, its agents or its employees, which are propedy chargeable to a qualified claim or loss including without limitation court costs, feas and expenses of attomeys, independent investigators, experts and witnesses, fees for obtaining diagrams, reports, documents, photographs, surveillance and appraisals. CLIENT will establish procedures to make timely payments of loss and expense vouchers submitted by GB during the course of its claims management program. It is expressly understood that GB shall not be required to advance its own funds to pay losses, and GB shall have aut~ to commit the CLIENT's funds up to the discretionary payment limit set fortt~ in Schedule IlL GB shall De held harmless and indemnified by CLIENT fi'om any failure of CLIENT to make payments within agreed to or statutory time fi'ames. SCHEDULE III TERMS AND CONDITION,~ ..D. iscretionary Settlement Authority - The limit on any settlement payment by GB shall be as set forth in Schedule V. it is agreed thatGB shall have Pall authority in all matters pertaining to the payment, processing, mvesagafion and administration of qualified claims or losses within this limit. Failure of GB to settle a qualified claim or loss within such limit shall not subject GB to liability to any party in the event of an adverse judgment entered by any court or the settlement of such claim or ross for an amount ix excess of such limit. Terms of Cancellation or Nonrenewal - Either party shall have the dght. to cancel or renegotiate the contract after each contract ~eriod by giv ng the other party written notice of intent to cancel or renegotlate at least sixty (60) days in advance. If timely notice of cancellation is given, this contractshail terminate upon the expiration of the current term. Unless stated otherwise in Schedule V, GB agrees that all claim files for claims incurred during the contracted periods will be handled for rio additional fees for as long,as the CLIENT continues to renew at least 50% of its p?.gra~..under this Agreement, In the event of cancai~aon or no,renewal of 5g% or moreof this program, GB wm ~n.~n~e t0 .m. an.age ail pen.ding. run-?ff claims, and mn-off claims irmu~ in this so,ViCe term but not repo~ ~.ea.pr~or t0 m~ oate of.!erm~nat~ol~ only ~f CLIENT pays GB, within es~ebi'~hed rehash;to continue handling bOt~een ~, ,a, ! .G,B~,s, ,p~re,,v~ihn. g rote on ~e d.a.te of t~ _m~,n.a '.t~....Ar~. uced?SX-FACS~ relating package wa p_r_o ;.ea~ at me ~?-N t,s expense. ~am(mg and adm~mstrat~on fees wfl be charged to the CLIEN~ as ong as ~ handles the cmims. S~ld the- ~.LIENT elect to have the files ratumed to them, CLIENT agrees to reimburse GB for ail payments made and =~bsequ?ntly paid by the bank, on behalf of the CLIENT, Until all claims are Closed within the RISX- FACSe system!and al! ~iain~ files haVe,been ratumed to the CLIENT. GB Wili provide atape or paper copy of the ~aim inT~ation ~ pJSX-FAGSe at GB's prevailing rale on the ,idate of te~;minatio~ uPOn daiivery of th s informa~ioh ~ CLIENT. claim infor~nati°n may be daiet~d from the system. If the CLIENT fails to pay ~ny amounts billed, including but not limited to GB's semice fee during the contract period; aud~!bi!!iags per ~edUle I, ~ B,1, Paragraph 2; the service fea to continue handling claims past t~inatimi ~ or bank charges, within 30 days, GB shall have theft to ten'ninale the contract by giving t~e C~!~i{~l q)idays° n°~ in Writing; Aff~ taceipt of peYment 0f ~11 leas due, GB wlil then retum all files to tlie CLIENT in an orderly manner. Co,ts for file transfer shall be the obligation of the CLIENT. Sole_ Claims Ad. ministrato~:- During the terms of this Agraement and except es otherwise agreed to by the ~ ha~eto, ~ENT agrees that GB shall be the sole claims administrator with respect to CLIENT's program and ~ a{l~n~ cle~'nS~ ~ CUENT's program shall be forwarded to GB. CLIENT further agrees not to self- ~ndividUal Wftho~t GB's prior writtan consanL Mutual Indernnif~cetlen - GB agrees to defend, indemnify, protect, save and keep harmless CLIENT fi'om any and all loss, cost, damage or exposure adsing Eom the nagligant acts or omissions of GB. CLIENT agrees to defend, indemnify, protect, save and keep harmless GB from any and all loss, cost, damage or exposure adalng from the nagr#;~ent acts or omissions of CLIENT. The foregoing indemnification provisions shall survive termination of this Agreement. 06~l~Boynt~l Beach, City of- 001470.d~3 F. Notices - Any not~ce required to be g~ven under this contract shall ce sent by cert'fied ma~ to the fo owing in the case of GB: Mr. Robert Mason Chief Financial Officer Gallagher Bassett Services. Inc. The Gallagher Centre Two Pierce Place Itasca. IL 60143-3141 and in the case of the CLIENT: Mr. Charles Magazine Risk Manager City of Boynton Beach P.O. Box 310 100 E. Boynton Beech Blvd. Boynton Beach, FL 33425-0310 Successors/Affiliates - This contract shall be binding ul~on and shall inure to the benefit of all assigns, transferees and successors in interast ofthe Dar'des. The services to be provided by GB hereunder may be provided in whole or in part by any affiliated entity of GB, at the sole discretion of GB. In such event, the terms of this Agreement shall be binding upon and shell inure to the benefits ~)f such affiliated entity. Modification * This contract represents the entire Agreement between the parties and may be modified only in writing. GB reserves the right to modi~ fees if:. It is determined that Use historical data upon which GB's fees and service charges developed were based upon en'oneous, obsolete or insufficient information, or that a change in CLIENT's business will materially change the nature and/or volume of its business or claims as contemplated at the inception of the Agreement. During the term of the Agreement, legislative and/cr regulatory requg'ements matedatly impact or change the scope of GB's se~'vices or raslxmsibilittas. Confidentiality of Data- .a,.q data furnished by the CLIENT, or generated as a result of services performed under this agreement, and ~ ioformafion designated by the CLIENT in writing, shall be treated as confidential. GB reserves the right to use =~G~tJcel information or other data, so long as the CLIENT's name and/or confidential data are adequately protected. Status - It is understood that GB is engaged to perform services under this contract as an independent contractor and not as an agent of the CLIENT. This contract shall be governed by the taws of the State of Florida. Managed Care - If GB provides Managed Care services as pert of the CLIENT's program, either directly or indirectly through an independent contractor, CLIENT agrees that GB may be endUed to an additional fee in connection with the Managed Care services (all or part of which may be paid to GB by the independent contractor) and to comply with the procedures for utilizing any such Managed Care service~. Any such additional fee will be in exchange for bona fide administrative services provided by GB in connection with the 06~ql~3ynto~ BeaCtl. City of- 001470.do¢ -6- Manage~3 Care services. If GB provides CLIENT access to the First Health Preferred Provider Organization, CLIENT agrees to comply with the procedures for utiliZing the First Health PPO Program. Reportinq - GB will not assume that other coverage (unknown lo GB) exists for a qualified claim or ~oss. GB shall not 3e responsible for reporting to carriers on a ~pe of claim or loss no[ managed by Fines and Penalties - GB shall not De responsible for any fines or penalties assessed by any governmental agency because of the acts or omissions of the CLIENT. or by previous or successor claim administrators. GB ~hall not be responsible for any fines or penalties assessed as a result of delayed submissions of first re~3orts of injury due to inaccurate or improperly reported information provided by the CLIENT. Solicitation of Employees - CLIENT agrees that, during the term of this Agreement and for a ~vo-year period thereafter. CLIENT shall not. without the consent of GB, solicit to hire. or hire any employee of GB who, ciuring the term of this Agreement, has performed, or contributed to the perfOrmance of, services hereunder. CLIENT furthe~r acknow!edges that the damages suffered by GE' as a result pla breach of this obligation wou d be signi~cant but not susceptible of easy calculation Accordingly, in the event of a breach of the aforesa d obligation. CL ENT agrees to pay GB an amount equal to one hundred fifty percent (150%) of such employee's annualized salary amount at GB as of the date of breach. Risk Control Consultinq - With respect to any dsk control consulting services, including any form of inspection service provided by GB to CLIENT: Such services shall be in the nature of advisory to the CLIENT only and shall not be' construed as imposing upon GB any duty to implement any recommendation mede by GB or to olbe~visa ensure that any premises, equipment or other subject matter of a GE, consulting service is safe or free from hazards or defects; Such services shall be solely for the benefit of CLIENT and shall not be construed as creating any duty to, or conferring any right to, any third party, including without limitation, any duty to warn any third party or the public at large; CLIENT shall make no communication to any third party concerning the role or nature of GB's services without the prior consent of GE. If GE fails to complete the contracted Risk Control Consulting Services dudng the term of this Agreement due to the CLIENT's failure to cooperate with GB's service delivery objectives, then GB will have an additional six [6) mor~ths in which to complete the contracted services. If the CLIENT fails to cooperate with GB's service delivery objectives dudng such six (6) month period, then GB's obligation to complete the contracted services will be deemed to be fulffiled and CLIENT shall not be entitled to any refund for services not provided. If for any reason other than CLIENT's lack of cooperation, GB fails to complete the contracted ~ during the term of the Agreement, then CLIENT, at its discretion, may either receive a refund for that portion of the contracted services which were not completed or may extend the time for completion of the contracted services by a pe~od of six (6) months. Records Retention - GB will retain claim ~es for 24 months following date of cto~ura. Thereafter, files will be returned to the CLIENT or fonearded to such location as may be designated by the CLIENT for continued storage. GB wa retath hard-copy checks for 24 months following the date of bank clearance. Thereafter, copies of checks will be maintained on microfiche. Subrof:tation - To the extent GB is involved in pursuing recoveries against third [3arfias or olhen~viee undertaking subrogation activities on behalf of CLIENT, GB is authorized to collect, in the name of the CLIENT or in the name of GB, ail funds due as a result of such recovery or subrogation activibe~. GB shall not be required to establish any trust accounts for the benefit of CLIENT, but shall promptly and fully account for all funds so received. 06~q l~BOynto~ Beach. City of- 001470.doc Taxes - CLIENT shall be responsible for payment of all applicable sales, use. ad valorem and excise taxes: auces: and assessments relating to the services orowded hereunder. CLIENT shall hold GB harmless from all claims and liability ansing from CLIENT's failure to pay such taxes. Non-U.S. Dollar Transaction - In the event [nat GE, handles any non-U.S. Dollar claims. CLIENT shall be resoonsible for any rate fluctuations, SCHEDULE IV DEFINITIONS Claim - Any report of an accident (first or third party) atteging or resulting in injury, damage, or loss which could give rise to a aemand for the payment of money. The claim charge is applicable on a per occurrence, per claimant, per line of COverage basis as defined in the RISX-FACS· system. Discretionary Settlement Authority - GB is authorized to make payment, for loss or expense, up to this amount, as GB deems n~:essary. Qualified Ctaim or Loss - GB will investigate and adjust any loss or claim occurring within the service term, provided the loss or claim type is identified in Schedule V. Allocated Expenses - Shall be the responsibility of the CLIENT and shall include, but not be limited to: · legal fees · professional photographs · medical record · experts' rehabilitation costs · accident reconstruction · architects, contractors · engineers · police, fire, coroner, weather, or other such reports · property damage appraisals · extraordinary COsts for witness statements e official documents and transcripts · sub rosa investigations · medical examinations · extraordinary travel made at CLIENT's request · court reporters · fees for service of process · pre- and post-judgment interest paid · chemists · collection costs payable to third parties on subrogation · any other similar cost, fee or expense reasonably chargeable to the investigation, negotiation, se~ement or defense of a claim or loss which must have the explicit prior approval of the CLIENT · Managed Cam Managed Care - Managed Care services shall include, but not be limited to: · preferred provider organization netwo~,s · state fee scheduling · usual, customary and reasonable bill rev~w · medk~ case management and vocational rehabilitation network · utilization review services · light duty and retum to work programs · prospective inju~/management services · hospital bill audit services · wholesale pharmaceutical network · retail pharmml network r__ lent: Cit~ of Boynton Beach ,~arv~ce Period: From 10/1/00 to SCHEDULE V SERVICES AND FEE~ Client #: 001470 SERVICES PROVIDED: Incl A, Claims Administration Auto Liabili[y - S~lily injury (AB) X Auto Liability. Property Damage (AD) X Auto Physical Damage (APD) Genera~ Liability - Bodily Injury (GB) X General Liability - Propeg(y Damage (GQ) X Products Liability Professional Liability pro~ x Workem' Compensation (WC) Medical Only Indemnit~ Info~osflon S~'vica~ RISX-FAC_,S~ Standard Pac~(age X Non-Standard Reports dsxfaca.com Terminals & Pdnters Data Transfer Othec SERVICES PROVIDED: C. Loss Funding SIMMS Client Owned SanKmg O. Supplemental Loss Neflca Program RpL Leve~ S Top{cai Caplioned Rpta Rpc Level $50,000 Meednge Set-U~m Incideflt Procassing Recom ~ Processing Risk Inspectidns GB/GCR Mgcl. Care (Paid Off File) E. Risk ConSol Consulting LOSS Contmi - Hours Risx-Conl]-oi Consulting - Houm TOTAL $ 46,246 ADDITIONAL SERVICE TERMS AND CONDmON$: Client will be billed against the initial ciaim handling deposit of $30,736 at the following per claim rates: Auto/General Liability Bodily Injury ~ $620 per claim Auto/General Liability Property Damage ~ $316 per claim Property ~ $509 per claim BILLING AND PAYMENT TERMS: Fee is payable in 1 annual installrne~t beginning 10/1101. Fees are payable upon receipt of invoice. GB reserves the dght to charge 1% per month, or the maximum legal rate, on balances unpaid after 30 days. 06t~l'*Boynm 8eactt, City Of- 001470.d0¢