Resolution No. 4890
. . . J
1
2
3
4
5
6
RESOLUTION NO. 4890
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE AGREEMENT BY AND
BETWEEN CAS ASSOCIATES, INC. AND THE CITY OF
VERNON PROVIDING FOR SELF-INSURED CLAIMS
ADMINISTRATION SERVICES AND RATIFYING THE
EXECUTION OF SAID AGREEMENT BY THE CITY
ADMINISTRATOR ON FEBRUARY 17, 1982
7 WHEREAS, the City Administratcr has submitted a
8 recommendation to the Finance Committee reccmmending that the
9 City of Vernon become self-insured for general liability and
10 auto liability; and
11 WHEREAS, the City Administrator has recommended that
12 the claims administration services be provided by CAS Associates,
13 Inc.; and
14 WHEREAS, the Finance Committee recommended cn
15 February 8, 1982 that the City enter into a trial agreement with
16 CAS Associates, Inc. to provide claims administration services
17 fcr the City in its self-insured program.
18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
19 OF THE CITY OF VERNON AS FOLLOWS:
20 SECTION 1: That the Agreement with CAS Associates, Inc.
21 which was previously executed by the City Administrator on
22 February 17, 1982, a copy of which is attached hereto as Exhibit
23 "A" and made a part hereof, is hereby approved.
24
SECTION 2: That the City Administrator's execution cf
25 said Agreement on behalf of the City is hereby ratified.
26 III
27 I I I
28 III
III
III
III
.'
1
,
SECTION 3: That the City Clerk of the City cf Vernon
2 shall certify to the passage of this Resolution and thereupon
3 and thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 23rd day cf March, 1982.
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
ATTEST:
6~~/~J~
BRUCE V. MALKENHORST, City Clerk
-2-
~
~ EONI S C. . "BURG, ;r;ycr"
\...,-,"
15
16
19
20
21
22
23
24
25
26
27
28
".
1 STATE OF CALIFORNIA )
) ss
2 COUNTY OF LOS ANGELES )
3
4 I, ,BRUCE V. MALKENHORST, City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6
Resolution No. 4890
, was duly adopted by the City Council
7 of the City of Vernon, and was approved by the Mayor of said
8 City at an adjourned meeting of the City Council held on Tuesday,
9
March 23
, 1982.
10
11
~;/~~~
BRUCE V. MALKENHORST, City Clerk
12
13
14
(SEAL)
17
18
-3-
, ,
January IS, 1982
. .
cal aIIOCIQte~lllC.
5400 ORANGE AVE., #105 CYPRESS, CA 90630
(714) 826-2671 · (213) 583-0722
City of Vernon
4305 Santa Fe
Vernon, CA 90058
Attn: Mr. Lou Hauger, Risk Manager
RE: General Liability & Auto Liability
Self-Insured Claims Administration
Dear Mr. Hauger:
Thank you very much for your kind visit to our offices on January 13, 1982
with respect to CAS Associates, Inc. proposal for administration of'the City
of Vernon's General Liability and Auto Liability Self Insured Claims.
As per your request I will endeavor to specifically outline the provisions of
our proposal in which you expressed an interest and for your review and approval.
TERMS: CAS Associates, Inc. agrees to investigate, adjust and manage all
reported claims and to provide automated data management and monthly reporting.
The above services win be performed at a cost to the City of Vernon of $150.00
per claimant plus time and expense for necessary field investigation on serious
cases and subject to a minimum monthly fee of $200.00 billed quarterly in
advance. It is understood and agreed that CAS Associates, Inc. will not assume
responsibility for any pending files and will not have responsibility for
non-serious incidents, incident tracking and/or reporting.
ADVANCE SETTLEMENT AUTHORITY: It is recommended that the City of Vernon extend
to CAS Associates, Inc. field file authority of $2,500. per claim for purpose
of settlement and payment ofc1aims and payment of allocated expense without
prior approval of the City of Vernon.
ALLOCATED EXPENSE DEFINED: Allocated expense includes legal fees and costs,
extraordinary expense for professional or expert assistance i.e., professional
photography, independent medical examinations, required appraisal services,
professional engineering services, laboratory services and costs for police
reports, Highway Patrol reports, Medical reports, etc..
EXH'BIT A
AFFILIATED WITH
CLAim! AOmlnl!TRATIOn fYfTEmJ: Inc.
Page 2
City of Vernon
January 15. 1982
TRUST FUND: It is recommended that a Trust Fund in the amount of $10,000.00
be established for payment of claims and expense for Self Insured General
and Auto Liability Claims for the City. of Vernon by CAS Associates, Inc. as
Claims Administrator. CAS Associates, Inc. will provide a check copy to the
City of Vernon upon check issuance and .will provide a second copy upon
recap which will be done at least monthly and/or as otherwise needed depending
upon disbursements and the Trust Fund balance.
Very truly yours.
<Q~a~~L0
Vice-President of Claims
AGREED BY: ~~-'"t~t'L/ 4~~-A[TE:
C~of ~e(n)on, I)
ACCEPTED BY ~c;.,.~" {,I~~.~). !,'r.t',
CAS Associates. Inc.
~~)h 2---
~ i I '7 ~-f' 2_
J I
DATE:
cc: Jerry Barber. President CAS Associates. Inc.
cc: Doug Hanson, President Claims Administration,Systems