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RESOLUTION N0. 4578
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AUTHORIZING EXECUTION OF AN
AGREEMENT WITH R. L. KAUTZ AND COMPANY FOR CER-
TAIN SERVICES IN CONNECTION WITH THE DUTIES AND
RESPONSIBILITIES OF CITY AS A SELF-INSURER UNDER
THE LIABILITY LAWS OF THE STATE OF CALIFORNIA
WHEREAS, the city desires to undertake to self-insure its
liability under the laws of the State of California; and
City desires to employ a service agent to perform certain
services in connection with the duties and responsibilities of
the city as a self-insurer,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Huntington Beach that the Mayor and City Clerk are hereby
authorized and directed to execute an agreement, attached hereto,
with R. L. Kautz and Company, said agreement to be effective
December 15, 1977.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at an adjourned regular meeting thereof held
on the 3rd day of January , 19 t% .
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Mayor
ATTEST: APPROVED AS TO FORM:
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City Clerk wS(kCity Attorne
REVIEWED AND APPROVED: INITIATED ND APPROVED:
OW
C y Administrator Treasurer
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AGREEMENT BETWEEN CITY OF HUNTiNGTON BEACH
AND R. L. KAUTZ & CO. FOR SELF-
INSURANCE ADMINISTRATION SERVICES.
THIS AGREEMENT, entered into this day of
197 , by and between City of Huntington Beach,
a municipal corporation, hereinafter called "CITY," and R. L.
Kautz & Co. , a California corporation, hereinafter called
"CONTRACTOR," for certain services as outlined herein in
connection with the duties and responsibilities of administering
a program of Liability Self'-Insurance,
W I T N E-S S E T H:
WHEREAS, CITY has undertaken to self-insure; and,
WHEREAS, CONTRACTOR is engaged in the supervision and
administration of programs of self-insurance,
NOW, THEREFORE, for and in consideration of the mutual
obligations hereby assumed, and the performance of the acts
hereinafter set forth, the parties hereto agree as follows:
1. GENERAL.
CONTRACTOR agrees to supervise and administer the
Liability Self-Insurance program for CITY and shall
act as their representative in connection with the
investigation, adjustment, processing, supervision
and resolution of general liability and automobile
liability claims and potential claims for money
damages asserted by third parties against CITY
which are premised upon allegations of negligent
or careless acts or omissions, or conduct for which
CITY is alleged to be legally responsible, and agrees
further to provide to CITY during the term of this
Agreement all the services more particularly set
forth hereinafter.
In the performance of the services provided for
herein, CONTRACTOR shall use its best efforts
without any guarantee as to the ultimate outcome
of any claim adjusted, investigated, processed,
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supervised or resolved by CONTRACTOR
2. INVESTIOATIVE SERVICES.
A. CONTRACTOR agrees to provide investigative
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services as follows:_
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(1) Receipt and examination of all reports of
r accidents, incidents, claims or cases which
are or may be the subject of such liability
claims.
(2) The lAtial investigation of such accidents,
incidents, claims or cases, where nature of
the claim warrants such investigation, or
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when requested by CITY; such investigation
to include contact with claimant, on-site
investigation, photographs (non-commercial),
interview employees of CITY, as hereinafter
set forth, and other such initial investiga-
tive services necessary to determine liability
and damages. CITY shall make available to
CONTRACTOR, at the offices of CONTRACTOR,
all employees of CITY who are witnesses to
an incident or accident or who have knowledge
of the event or incident which is the subject
matter of the claim. The statements of such
individuals shall be taken at the office of
CONTRACTOR without additional charge. CITY
shall provide CONTRACTOR with photographs
and engineering drawings or other descriptive
material of all conditions of CITY property
which are alleged to be dangerous or that
were damaged in the events which produce
the claim under investigation.
The investigative facilities of CONTRACTOR
shall be limited in scope and directed at
de;termi.ning the probable liability or lack
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3. ADJUBTMENT SERVICES.
CQNTRACTt1R
�F agree$ to provide complete adjustment
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$ services on.eech. accident or incident which is or
;� may be the subject of s liability claim. Such ser-
vices skull include:
xhe nm4inten4Mce of a'elaim file on each potential
or actual claim ,reported to CONTRACTOR.
B.' Whenever its investigation results in a determina-
tion that C1* has sustained a liability to a
third party, CONTRACTOR shall process any such
claim or potential claim for settlement in accord
ante with instructions and policies of CITY for
settlement of such claims.
C. Notification of CITY's primary and excess carriers
of all claims which exceed CITY's retention and t
maintenance of liaison between the insurance
carriers and the CITY on matters affecting the
adjustment of such claims and notify CITY when
CITY is entitled to reimbursements for loss in
excess of retention.
D. Rejection of claims when appropriate, pursuant to
relevant provisions of Title 1, Division 3.6, Part 3,
Chapter 2, of the Government Code of the State of
California.
E. Obtain all Release,Agreements on settlement of
any claim or potential claim.
4. ADMINISTRATIVE SERVICES.
CONTRACTOR agrees to provide the following adminis-
trative sery ces:A. Preparation and submission of an Operating Manual
of Procedure for reporting claims to CONTRACTOR
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and the proper procedures for completing accident
forms.
B. Provide CITY during the term of this Agreement
With t0,414ted Monthly Status Report on all
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reported claims during the term of this Agreement,
Indicating the status of each reported open claim
° assigned to CONTRACTOR, the details of each claim,
the outstanding reserves for each claim and details
of all claims payments during the month. The
x' Status Report shall be delivered to CITY within
twenty (20) days of the close of each calendar
� month,
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C. Periodic review and adjustment of reserves on all
open claims
5. PERIOD OF AGREMMENT.
This Agreement is for, a period of twelve (12) months
commencing at 12:01 a.m. , December 15, 1977, and
ending Midnight, December 14, 1978. Thereafter, it
is the intention of the parties to continue this
Agreement in full force and effect, subject to
annual renegotiation of section 6 hereunder ("CON-
SIDERATION"), unless and until this Agreement is
terminated by either party as hereinafter provided.
6. CONSIDERATION:
CITY agrees to pay to CONTRACTOR the sum of Fifteen
Thousand Five Hundred Dollars ($15,500.00), payable
monthly in equal installments, to provide all
services set forth herein.
7. CANCELLATION OF AGREEMENT'.
This Agreement may be terminated by either party
giving to the other, in writing, notice of his
intention to cancel this Agreement at least sixty
(60) days prior to the date of termination.
8, DISPOSITTON OF FILES ON TERMINATION OF AGREEMENT.
A. All files on each claim shall be the property
of the CITY.
B. In the event of termination or cancellation of
` the Agr a ;itt C MRAPTOR shall return all files
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h to" CITY unless CITY requests CONTRACTOR to continue
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3 to process any file, which file CONTRACTOR will
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� �•4 �, continue to process on a time and expense basis.
C. In the event of cancellation of this Agreement by
_x, CITYp the total consideration to be paid by CITY
to CONTRACTOR as set forth in section 6 herein
shall.be,due and payable.
U. In the event of cancellation of this Agreement by
CONTRACTOR, the consideration to be paid pursuant
c, to section 6fshall terminate effective with the
termination of the Agreement and the CITY shall
not be liable ,for further payment.
9. HOLD HARMLESS,
CITY agrees to defend any legal act
ion commenced
against CONTRACTOR caused directly or indirectly by
wrongful or negligent acts of CITY's officers, employees,
agents or others engaged by CITY; and indemnify CON-
TRACTOR against any liability, loss, cost; or damage,
including attorneys' fees, resulting therefrom.
IN WITNESS WHEREOF, the parties hereto have caused these presents
to be signed by their duly authorized officers as of the day and
year first.above ,written,
CITY OF HUNTINGTON BEACH,
a Municipal Corporation
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a�?,7le fsy�
Mayor
ATTEST: APPROVED AS TO FORM:
•` City 'C1erk city A for
APPROVED AS TO CONTENT: INITIATED PROVED;
ity dA-m n strator reasurer
R L. KAUTZ & CO. ,
a California Corporation
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Res. No. 4578
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) as:
CITY OF HUNTINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular meeting thereof held on the 3rd day
of January 1978 , by the following voter
AYES: Councilmen:
Bartlett, Wieder, Coen, Gibbs, Siebert, Pattinsoil
NOES: Councilmen:
None
ABSENT: Councilmen:
Rh,-nkman
i
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California