Resolution No. 94921
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RESOLUTION NO. 9492
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION,OF A
SERVICE AGREEMENT WITH SOUTHERN CALIFORNIA RISK
MANAGEMENT ASSOCIATES, INC. TO PROVIDE FOR THE
ADMINISTRATION OF A WORKERS' COMPENSATION SELF-
INSURANCE PROGRAM AND GENERAL LIABILITY SELF
INSURANCE PROGRAM
WHEREAS, the City of Vernon is self -insured in its workers'
compensation program and its general liability program; and
WHEREAS, on November 19, 2007, the City Council of the City
of Vernon adopted Resolution No. 9471 terminating all agreements with
AdminSure, Inc. (formally Colen and Lee) for Liability Claims
Administration Services and Workers' Compensation Claims Administration
Services effective January 1, 2008; and
WHEREAS, the Risk Manager has solicited proposals for the
jadministration of said programs effective January 1, 2008; and
WHEREAS, Southern California Risk Management Associates,
Inc. ("SCRMA") has submitted proposals which the Risk Manager has
i
recommended as being fair and reasonable to administer the programs
for the City of Vernon.
WHEREAS, the SCRMA Workers' Compensation Claims
Administration.fees shall be.as follows: $68,993.00 for theperiodof
January 1, 2008 through December 31, 2008, $70,373.00 for the period
of January 1, 2009 through December 31, 2009, $71,780.00 for the
period of January 1, 2010 to December 31, 2010, and fees for the
period beginning January 1, 2011 shall be negotiated by the parties
with price increases not to exceed 8.0 percent per year; and
WHEREAS, General Liability fees shall be compensated at an
1hourly rate of $78.00 per hour with charges in minimum increments of
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one -tenth of an hour, a one time charge of $50.00 per claim filed,
compensation for claims requiring special investigative work because
lof suspected fraud, compensation for assistance in recovery and
subrogation matters, a one time data conversion fee not to exceed
$10,000.00 upon successful completion, and a one time fee of $1,200.00
for view -only access to its claim management system once initiated.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
ICITY OF VERNON AS FOLLOWS
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained herein above
lare true and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Service Agreement with Southern California Risk,
Management Associates, Inc., in substantially the same form as the
copy which is attached hereto as Exhibit A and incorporated by
reference.
. SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute said Service
Agreement for, and on behalf of, the City of Vernon and the City Clerk
is hereby authorized to attest thereto.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the Risk Manager, or his designee, to make whatever
nonsubstantive, administrative and/or text changes, upon advice of
1counsel, to the Service Agreement.
SECTION 5: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary or required to implement and carry out the
Agreement consistent with the terms of the Agreement approved herein
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for, and on behalf of, the City of Vernon and to perform such other
acts and deeds, as may be necessary or convenient to effect the
purposes of this Resolution and the transactions herein authorized.
SECTION 6: The City Council of the City of Vernon hereby
directs the City Clerk, or her designee, to send one executed Service
Agreement to:
Southern California Risk Management Associates, Inc.
Attn. Contract Manager
313 E. Foothill Boulevard
Upland, CA 91786-3952
SECTION 7: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 3rd day of December, 2007.
ATTEST:
jxe2i� X'6'�L
MANUELA GIRON, Ci Clerk
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Name: Leonis C. Malburg
Title: Mayor -
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9492, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, December 3, 2007, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
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&,I,-
YIANUELA GIRON, ity Clerk
EXHIBIT A
CLAIMS ADMINISTRATION
SERVICE AGREEMENT
This Agreement is entered into by and between the CITY OF VERNON hereinafter referred to as
"CLIENT," and SOUTHERN CALIFORNIA RISK MANAGEMENT ASSOCIATES, INC., a Delaware Corporation,
hereinafter referred to as "SCRMA."
4
RECITALS
WHEREAS, CLIENT has elected to self -insure its workers' compensation and general liability
programs in the State of California; and
WHEREAS, SCRMA provides claims administration services and management information services
to self -insured employers; and
WHEREAS, CLIENT and SCRMA have agreed to enter into a Service Agreement for claims
administration services effective January 1, 2008.
The foregoing recitals are agreed to by the parties.
TERMS AND CONDITIONS
Term of Agreement
This agreement is effective January 1, 2008, and shall renew on annual basis unless otherwise
terminated in accordance with paragraph 6.
2. Consideration
a. Workers' Compensation:
i. SCRMA's Workers' Compensation Claims Administration fees shall be as follows:
For the period January 1, 2008 through December 31, 2008: $68,993
For the period January 1, 2009 through December 31, 2009: $70,373
For the period January 1, 2010 through December 31, 2010: $71,780
ii. Workers' Compensation service fees for the period beginning January 1, 2011 shall be
negotiated by the parties with price increases thereafter not to exceed 8.0% per year.
iii. Workers' Compensation Claims Administration fees are payable quarterly in advance by
CLIENT upon receipt of SCRMA's invoice.
iv. It is recognized that the Claims Administration fee as negotiated each year represents
the expense of administering and adjusting Workers' . Compensation claims that are
reported prior to or during the current contract period. The Claims Administration fee
covers the expense involved in processing claims to their ultimate conclusion as long as
SCRMA continues to provide Claims Administration services pursuant to the terms of
this Service Agreement or any renewal or further Service Agreement.
Claims Administration
Service Agreement
Page 2 of 6
b. General Liability:
i. SCRMA shall be compensated at an hourly rate for services rendered by its personnel.
This rate, which is subject to change from time to time, is currently $78.00 per hour.
Services are charged in minimum increments of one -tenth of an hour.
ii. SCRMA shall be reimbursed for out-of-pocket expenses incurred in connection with the
services, including but not limited to, telephone, photocopying, postage, travel and
photograph processing.
iii. SCRMA shall be compensated a one time charge of $50 per claim file for entry of loss
data for the sole purpose of producing loss reports.
iv. For claims requiring special investigative work because of suspected fraud, SCRMA will
be compensated at its prevailing time and expense rate for such services. For
assistance in recovery and subrogation matters, SCRMA will be compensated on a time
and expense basis at its prevailing rate for such services. If the parties so agree in
writing, subrogation services may be rendered on a contingent fee basis.
c. CLIENT shall pay SCRMA a one-time data conversion fee not to exceed $10,000 upon successful
completion of the data conversion.
e. CLIENT shall pay SCRMA's invoices within 30 days of receipt. SCRMA's invoices shall contain
reasonable detail of each time charge for services. If CLIENT disagrees with any item on any
invoice, CLIENT shall set forth the particulars of such disagreement in writing within 30 days of
receipt of the invoice and pay the undisputed portion of the bill. Unless CLIENT sets forth its
disagreement with an invoice as aforesaid, an invoice shall be conclusively presumed valid and
correct. Any invoice not paid within 15 days after notice that it ispast due shall bear interest
at the lesser of the one and one-half percent (1 1 /2%) per month or the interest rate allowed
by law. If SCRMA engages legal counsel to collect past due amounts, the reasonable cost of
such legal counsel together with interest as aforesaid and court costs shall be added to the
amount due and shall be recoverable as a part thereof.
Responsibilities of SCRMA
a. Claims Administration
SCRMA agrees to provide claims service for CLIENT's Workers' Compensation and general
liability exposure in the State of California as required by the regulatory bodies of said
State and at a level acceptable to CLIENT.
b. Management Information System
i. SCRMA will provide management information service to CLIENT as agreed upon by the
parties.
ii. During the contract period and during the contract period referred to in any
subsequent service agreement with CLIENT, SCRMA will provide CLIENT with one name
and password for access to SCRMA's proprietary browser -based claims system known as
Claims Administration
Service Agreement
Page 3 of 6
Claims ConnectTM. CLIENT will have "view only" access to that system. SCRMA will
provide a basic training session by telephone for using the Claims ConnectTm System.
Special training, special programming, special "IT" services, will be provided on a time
and expense basis at SCRMA's prevailing rates for such services. Extended access to
Claims Connect'"^ may be obtained at SCRMA's prevailing rate.
iii. SCRMA retains sole right of ownership to its programs. However, CLIENT has a right to
the data. In the event of a cancellation of SCRMA's service, CLIENT is entitled to a
complete history file (tape) of all claims and payment information, as well as a
complete format of the tape, and all written records maintained by SCRMA on behalf of
CLIENT.
C. Medical Cost Containment and Management
SCRMA agrees to provide medical cost containment and management services through
its affiliate, Medical Audit and Management, Inc. (MAAM). Services to be provided
include, but are not limited to, repricing of medical bills to the Official Medical Fee
Schedule, repricing of medical bills based on network contracts, pre -negotiated
agreements for medical services, Utilization Review pursuant to Labor Code 4610,
optional use of the WellComp Medical Provider Network established pursuant to LC
4616, and nurse case management services.
4. Responsibilities of CLIENT
CLIENT shall timely report all claims and provide all information available in a timely manner,
cooperate and assist in the investigation of claims as may be necessary to administer its claims.
CLIENT may refuse the services of any vendor selected by SCRMA. CLIENT agrees that SCRMA
retains ownership of its, programs, processes, forms and methods and will not use or
disseminate them without written consent of SCRMA.
5. Claim Payment Fund
a. The parties agree that SCRMA will pay claim expenses from a fund established by
CLIENT and funded by CLIENT. CLIENT will maintain the fund at an amount sufficient
to cover the expense of all claims. SCRMA agrees to make its records available to
CLIENT for audit purposes at all times.
b. Claim expenses are defined as medical, indemnity, and allocated claim expense.
C. Allocated claim expense includes such costs as legal fees, court costs, court reporters,
expert witnesses, investigation, photocopy, subpoena, photographic, fees to
undercover operatives, depositions, bill review, utilization review, and certain special
costs as may be required.
6. Termination
a. Either party may terminate this Agreement by providing written notice sixty (60) days
in advance to the other. In the event of termination, SCRMA will be obligated to
Claims Administration
Service Agreement
Page 4 of 6
provide all data, records and information developed with respect to CLIENTS business,
including all loss records, to CLIENT or its designated agent on the date established by
CLIENT. SCRMA will provide the records in good condition and will assist in any
transition as may be desired by CLIENT.
b. CLIENT may, at its option, designate SCRMA to continue to manage all claim files with
loss dates prior to the termination date of this Agreement, for a fee of 17.5% of paid
claims, or on a time and charges basis at a rate agreed to by the parties.
7. Insurance Coverage
a. Blanket Fidelity Bond
SCRMA shall maintain a blanket fidelity bond or equivalent insurance in an amount not
less than Two Million Dollars ($2,000,000.00), with an insured or approved corporate
surety covering any and all CLIENTs, officers and employees involved in performance of
the Agreement and the trust fund (imprest) account.
b. Errors and Omissions Insurance
SCRMA shall maintain Errors and Omissions Insurance in an amount not less than One
Million Dollars ($1,000,000.00) per occurrence and aggregate.
C. Public Liability and Property Damage Insurance
SCRMA shall maintain commercial general
than One Million Dollars ($1,000,000.00)
insurance carried by CLIENT. Certificates
additional insured.
General Conditions
liability insurance in the amount not less
which shall be primary over any other
of insurance shall name CLIENT as an
SCRMA shall indemnify, hold harmless and defend CLIENT, its agents, employees,
assigns, successors, officers and directors against any and all loss, damage, fines,
liability, costs and expenses, including reasonable attorney fees and costs that CLIENT
may become obligated to pay due directly to the negligent or otherwise wrongful acts,
or omissions of SCRMA, its agents, employees, officers or directors. CLIENT agrees to
notify SCRMA immediately in writing of any claim, demand, notice of liability or action.
Notwithstanding the immediately preceding two sentences, SCRMA shall not be
obligated to indemnify CLIENT, its agents, employees, assigns, successors, officers and
directors to the extent that any such loss, damage, fines, liability, costs and expenses
is attributable to the negligent acts or omissions of CLIENT or its former claims
administration service provider.
b. CLIENT shall indemnify, hold harmless and defend SCRMA, its agents, employees,
assigns, successors, officers and directors against any and all loss, damage, fines,
liability, costs and expenses, including reasonable attorney fees and costs that SCRMA
become obligated to pay due directly to the negligent acts or omissions of CLIENT, its
agents, employees, officers or directors.
Claims Administration
Service Agreement
Page 5 of 6
C. The services to be rendered by SCRMA are to be within the standards for administration
of workers' compensation and general liability claims. In the event CLIENT directs
SCRMA to follow a specific course of action in the handling of any claim, it shall
indemnify, hold harmless and defend SCRMA against any loss, cost or expense,
including reasonable attorney fees and costs, incurred in any claim for damages related
to -that course of action. Notwithstanding anything to the contrary herein, SCRMA shall
not be held responsible or liable for any obligations pursuant to agreements or
contracts between third parties and CLIENT.
d. Penalties and self-imposed increases resulting from the failure of CLIENT to provide
timely notice of claims (within seven days of CLIENT's knowledge of injury) or such
other employer obligations as awarded or imposed pursuant to Labor Code Section 5814
and Labor Code Section 4650(d) are and shall be the sole responsibility of CLIENT, and
CLIENT agrees to indemnify, defend and hold SCRMA harmless from the imposition of
such penalties and self-imposed increases. Penalties and self-imposed increases
resulting from the acts of SCRMA as claim administrator are and shall be the sole
responsibility of SCRMA, and SCRMA agrees to indemnify, defend and hold CLIENT
harmless from the imposition of such penalties.
e. The parties understand the administration of a self -insured workers' compensation
program requires the exchange of confidential medical information between CLIENT
and SCRMA in order to ensure the prompt delivery of benefits and to evaluate the
accommodation of work restrictions, either on a temporary or permanent basis. CLIENT
acknowledges the provisions of Labor Code Section 3762 and agrees that CLIENT's
designated employees responsible for the administration of CLIENT's workers'
compensation program shall maintain the confidentiality required and abide by the
restrictions on dissemination of claimants' medical information, records and reports.
CLIENT's designated employees shall not disseminate medical information of claimants
in violation of Labor Code Section 3762. SCRMA makes no representations whether any
particular disclosure or dissemination of medical information, reports or records by or
between SCRMA and CLIENT's designated employees is or is not prohibited by Labor
Code Section 3762, California Code of Civil Procedure Section 56, et seq., or any other
provision of State or Federal law governing the privacy and confidentiality of medical
information. In the event that a claim is made as a result of the release of confidential
medical information by SCRMA, CLIENT authorizes SCRMA to pay all attorney fees and
costs incurred ir�defense of the claim as an allocated expense.
CLIENT agrees that any action to enforce the terms of this agreement or resulting from
a dispute between the parties shall be filed in LosAngel County, California, and must
be filed no later than one year from the date of the occurrence resulting in the claim,
and in no event later than one year after termination of this agreement. In the event
of such an action, the prevailing party shall be awarded all attorney fees and costs
incurred.
9.
Claims Administration
Service Agreement
Page 6 of 6
This represents the entire agreement between the parties and may only be modified in
writing signed by both.
Accepted By:
CITY OF VERNON
By:
Authorized Signature
Name (type or print)
Title
Address
Date
Accepted By:
SOUTHERN CALIFORNIA RISK MANAGEMENT
ASSOCIATES, INC.
Bv:
Authorized Signature
Name (type or print)
Title
313 E. Foothill Boulevard
Upland California 91786-3952
Address
Date
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 21, 2008
Southern California Risk Management Associates, Inc.
Attn: Contract Manager
313 E. Foothill Boulevard
Upland, CA 91786-3952
Re: Claims Administration Service Agreement
Dear Sir or Madam:
Transmitted herewith is a fully executed agreement as referenced
above, approved by City Council on December 3, 2007, through
Resolution No. 9492.
If you have any questions regarding this matter, please call Mr.
Willard Yamaguchi, at (323) 583-8811 ext. 175.
r truly yours,
Ne11yNGi
City Clerk
NG:dr
c: Willard Yamaguchi
Resolution No. 9492
Agreement No. 07-136
,-c(usivefy Industrial
CLAIMS ADMINISTRATION
SERVICE AGREEMENT
This Agreement is entered into by and between the CITY OF VERNON hereinafter referred to as
"CLIENT," and SOUTHERN CALIFORNIA RISK MANAGEMENT ASSOCIATES, INC., a Delaware Corporation,
hereinafter referred to as "SCRMA."
RECITALS
1. WHEREAS, CLIENT has elected to self -insure its workers' compensation and general liability
programs in the State of California; and
2. WHEREAS, SCRMA provides claims administration services and management information services
to self -insured employers; and
3. WHEREAS, CLIENT and SCRMA have agreed to enter into a Service Agreement for claims
administration services effective January 1, 2008.
4. The foregoing recitals are agreed to by the parties.
TERMS AND CONDITIONS
1. Term of Agreement
This agreement is effective January 1, 2008, and shall renew on annual basis unless otherwise
terminated in accordance with paragraph 6.
2. Consideration
a. Workers' Compensation:
i. SCRMA's Workers' Compensation Claims Administration fees shall be as follows:
For the period January 1, 2008 through December 31, 2008: $68,993
For the period January 1, 2009 through December 31, 2009: $70,373
For the period January 1, 2010 through December 31, 2010: $71,780
ii. Workers' Compensation service fees for the period beginning January 1, 2011 shall be
negotiated by the parties with price increases thereafter not to exceed 8.0% per year.
iii. Workers' Compensation Claims Administration fees are payable quarterly in advance by
CLIENT upon receipt of SCRMA's invoice.
iv. It is recognized that the Claims Administration fee as negotiated each year represents
the expense of administering and adjusting Workers' Compensation claims that are
reported prior to or during the current contract period. The Claims Administration fee
covers the expense involved in processing claims to their ultimate conclusion as long as
SCRMA continues to provide Claims Administration services pursuant to the terms of
this Service Agreement or any renewal or further Service Agreement.
b. General Liability:
Claims Administration
Service Agreement
Page 2 of 6
i. SCRMA shall be compensated at an hourly rate for services rendered by its personnel.
This rate, which is subject to change from time to time, is currently $78.00 per hour.
Services are charged in minimum increments of one -tenth of an hour.
ii. SCRMA shall be reimbursed for out-of-pocket expenses incurred in connection with the
services, including but not limited to, telephone, photocopying, postage, travel and
photograph processing.
iii. SCRMA shall be compensated a one time charge of $50 per claim file for entry of loss
data for the sole purpose of producing loss reports.
iv. For claims requiring special investigative work because of suspected fraud, SCRMA will
be compensated at its prevailing time and expense rate for such services. For
assistance in recovery and subrogation matters, SCRMA will be compensated on a time
and expense basis at its prevailing rate for such services. If the parties so agree in
writing, subrogation services may be rendered on a contingent fee basis.
c. CLIENT shall pay SCRMA a one-time data conversion fee not to exceed $10,000 upon successful
completion of the data conversion.
d. SCRMA will provide view -only access to its claims management system at the request of CLIENT
for a one-time fee of $1200.00. This fee will be invoiced once access is initiated.
e. CLIENT shall pay SCRMA's invoices within 30 days of receipt. SCRMA's invoices shall contain
reasonable detail of each time charge for services. If CLIENT disagrees with any item on any
invoice, CLIENT shall set forth the particulars of such disagreement in writing within 30 days of
receipt of the invoice and pay the undisputed portion of the bill. Unless CLIENT sets forth its
disagreement with an invoice as aforesaid, an invoice shall be conclusively presumed valid and
correct. Any invoice not paid within 15 days after notice that it is past due shall bear interest
at the lesser of the one and one-half percent (1 1 /2%) per month or the interest rate allowed
by law. If SCRMA engages legal counsel to collect past due amounts, the reasonable cost of
such legal counsel together with interest as aforesaid and court costs shall be added to the
amount due and shall be recoverable as a part thereof.
3. Responsibilities of SCRMA
Claims Administration
SCRMA agrees to provide claims service for CLIENT's Workers' Compensation and general
liability exposure in the State of California as required by the regulatory bodies of said
State and at a level acceptable to CLIENT.
b. Management Information Svstem
i. SCRMA will provide management information service to CLIENT as agreed upon by the
parties.
ii. During the contract period and during the. contract period referred to in any
subsequent service agreement with CLIENT, SCRMA will provide CLIENT with one name
and password for access to SCRMA'5 proprietary browser -based claims system known as
Claims ConnectTM. CLIENT will have "view only" access to that system. SCRMA will
provide a basic training session by telephone for using the Claims ConnectTM System.
Special training, special programming, special "IT" services, will be provided on a time
Claims Administration
Service Agreement
Page 3 of 6
and expense basis at SCRMA's prevailing rates for such services. Extended access to
Claims ConnectIm may be obtained at SCRMA's prevailing rate.
iii. SCRMA retains sole right of ownership to its programs. However, CLIENT has a right to
the data. In the event of a cancellation of SCRMA's service, CLIENT is entitled to a
complete history file (tape) of all claims and payment information, as well as a
complete format of the tape, and all written records maintained by SCRMA on behalf of
CLIENT.
C. Medical Cost Containment and Management
SCRMA agrees to provide medical cost containment and management services through
its affiliate, Medical Audit and Management, Inc. (MAAM). Services to be provided
include, but are not limited to, repricing of medical bills to the Official Medical Fee
Schedule, repricing of medical bills based on network contracts, pre -negotiated
agreements for medical services, Utilization Review pursuant to Labor Code 4610,
optional use of the WellComp Medical Provider Network established pursuant to LC
4616, and nurse case management services.
4. Responsibilities of CLIENT
CLIENT shall timely report all claims and provide all information available in a timely manner,
cooperate and assist in the investigation of claims as may be necessary to administer its claims.
CLIENT may refuse the services of any vendor selected by SCRMA. CLIENT agrees that SCRMA
retains ownership of its programs, processes, forms and methods and will not use or
disseminate them without written consent of SCRMA.
Claim Payment Fund
a. The .parties agree that SCRMA will pay claim expenses from a fund established by
CLIENT and funded by CLIENT. CLIENT will maintain the fund at an amount sufficient
to cover the expense of all claims. SCRMA agrees to make its records available to
CLIENT for audit purposes at all times.
b. Claim expenses are defined as medical, indemnity, and allocated claim expense.
Allocated claim expense includes such costs as legal fees, court costs, court reporters,
expert witnesses, investigation, photocopy, subpoena, photographic, fees to
undercover operatives, depositions, bill review, utilization review, and certain special
costs as may be required.
6. Termination
a. Either party may terminate this Agreement by providing written notice sixty (60) days
in advance to the other. In the event of termination, SCRMA will be obligated to
provide all data, records and information developed with respect to CLIENT's business,
including all loss records, to CLIENT or its designated agent on the date established by
CLIENT. SCRMA will provide the records in good condition and will assist in any
transition as may be desired by CLIENT.
Claims Administration
Service Agreement
Page 4 of 6
b. CLIENT may, at its option, designate SCRMA to continue to manage all claim files with
loss dates prior to the termination date of this Agreement, for a fee of 17.5% of paid
claims, or on a time and charges basis at a rate agreed to by the parties.
7. Insurance Coverage
a. Blanket Fidelity Bond
SCRMA shall maintain a blanket fidelity bond or equivalent insurance in an amount not
less than Two Million Dollars ($2,000,000.00), with an insurer or approved corporate
surety covering any and all CLIENT'S, officers and employees involved in performance
of the Agreement and the trust fund (imprest) account.
b. Errors and Omissions Insurance
SCRMA shall maintain Errors and Omissions Insurance in an amount not less than One
Million Dollars ($1,000,000.00) per occurrence and aggregate.
C. Public Liability and Property Damage Insurance
SCRMA shall maintain commercial general liability insurance in the amount not less
than One Million Dollars ($1,000,000.00) which shall be primary over any other
insurance carried by CLIENT. Certificates of insurance shall name CLIENT as an
additional insured.
8. General Conditions
a. SCRMA shall indemnify, hold harmless and defend CLIENT, its agents, employees,
assigns, successors, officers and directors against any and all loss, damage, fines,
liability, costs and expenses, including reasonable attorney fees and costs that CLIENT
may become obligated to pay due directly to the negligent or otherwise wrongful acts,
or omissions of SCRMA, its agents, employees, officers or directors. CLIENT agrees to
notify SCRMA immediately in writing of any claim, demand, notice of liability or action.
Notwithstanding the immediately preceding two sentences, SCRMA shall not be
obligated to indemnify CLIENT, its agents, employees, assigns, successors, officers and
directors to the extent that any such loss, damage, fines, liability, costs and expenses
is attributable to the negligent acts or omissions of CLIENT or its former claims
administration service provider.
b. CLIENT shall indemnify, hold harmless and defend SCRMA, its agents, employees,
assigns, successors, officers and directors against any and all loss, damage, fines,
liability, costs and expenses, including reasonable attorney fees and costs that SCRMA
become obligated to pay due directly to the negligent acts or omissions of CLIENT, its
agents, employees, officers or directors. SCRMA agrees to notify Client immediately in
writing of any claim, demand, notice of liability or action. Notwithstanding the
immediately preceding two sentences, Client shall not be obligated to indemnify
SCRMA; its agents, employees, assigns, successors, officers and directors to the extent
that any such loss, damage, fines, liability, costs and expenses is attributable to the
negligent acts or omissions of SCRMA or its former claims administration service
provider.
Claims Administration
Service Agreement
Page 5 of 6
C. The services to be rendered by SCRMA are to be within the standards for administration
of workers' compensation and general liability claims. In the event CLIENT directs
SCRMA to follow a specific course of action in the handling of any claim, it shall
indemnify, hold harmless and defend SCRMA against any loss, cost or expense,
including reasonable attorney fees and costs, incurred in any claim for damages related
to that course of action. Notwithstanding anything to the contrary herein, SCRMA shall
not be held responsible or liable for any obligations pursuant to agreements or
contracts between third parties and CLIENT.
d. Penalties and self-imposed increases resulting from the failure of CLIENT to provide
timely notice of claims (within seven days of CLIENT's knowledge of injury) or such
other,employer.obligations.as awarded or imposed pursuant to Labor Code Section 5814
and Labor Code Section 4650(d) are and shall be the sole responsibility of CLIENT, and
CLIENT agrees to indemnify, defend and hold SCRMA harmless from the imposition of
such penalties and self-imposed increases. Penalties and self-imposed increases
resulting from the acts of SCRMA as claim administrator are and shall be the sole
responsibility of SCRMA, and SCRMA agrees to indemnify, defend and hold CLIENT
harmless from the imposition of such penalties.
e. The parties understand the administration of a self -insured workers' compensation
program requires the exchange of confidential medical information between CLIENT
and SCRMA in order to ensure the prompt delivery of benefits and to evaluate the
accommodation of work restrictions, either on a temporary or permanent basis. CLIENT
acknowledges the provisions of Labor Code, Section 3762 and agrees that CLIENT's
designated employees responsible for the administration of CLIENT's workers'
compensation program shall maintain the confidentiality required and abide by the
restrictions on dissemination of claimants' medical information, records and reports.
CLIENT's designated employees shall not disseminate medical information of claimants
in violation of Labor Code Section 3762. SCRMA makes no representations whether any
particular disclosure or dissemination of medical information, reports or records by or
between SCRMA and CLIENT's designated employees is or is not prohibited by Labor
Code Section 3762, California Code of Civil Procedure Section 56, et seq., or any other
provision of State or Federal law governing the privacy and confidentiality of medical
information. In the event that a claim is made as a result of the release of confidential
medical information by SCRMA, CLIENT authorizes SCRMA to pay all attorney fees and
costs incurred in defense of the claim as an allocated expense.
f. CLIENT agrees that any action to enforce the terms of this agreement or resulting from
a dispute between the parties shall be filed in Los Angeles County, California, and must
be filed no later than one year from the date of the occurrence resulting in the claim,
and in no event later than one year after termination of this agreement. In the event
of such an action, the prevailing party shall be awarded all attorney fees and costs
incurred.
g. This Agreement shall be governed by the laws of the State of California. The parties
agree that any and all disputes arising out of or in relation to this Agreement, including
without limitation any action in tort, shall be resolved exclusively, finally and
conclusively by arbitration in Los Angeles County, California under the auspices of and
pursuant to the rules of the Judicial Arbitration Et Mediation Services Inc. (JAMS). Each
party will select an arbitrator. Those two arbitrators will then select a third. The
three member panel will make the final decision. All decisions of the arbitrators shall
be in writing, and the arbitrators shall provide written reasons for their decision. The
Claims Administration
Service Agreement
Page 6 of 6
arbitration decision shall be final and binding on the parties. Notwithstanding the
foregoing, the parties shall be permitted to access the court system to enforce any
arbitration award or to obtain injunctive relief. The exclusive jurisdiction and venue
for any such action shall be the Superior Court of California, Los Angeles County. Any
and all contracts between SCRMA and any subcontractor shall include the same
arbitration clause.
h. This represents the entire agreement between the parties and may only be modified in
writing signed by both.
Accepted By:
CITY OF VERNON
By:veil��,�
Auth�oriz ignature —
Leonis C. Malburg
Name (type or print)
Mayor
Title
4305 Santa Fe Avenue
Vernon, California 90058
Address
Date:r�J�l1 c�
Approved as —()U A t form:
City orn
Date:
Att st:
Manuela Giron, ity Clerk
Accepted By:
SOUTHERN CALIFORNIA RISK MANAGEMENT
ASSOCIATES, INC.
By:
Authorized Signature
Richard H. Taketa
Name (type or print)
CEO
Title
Date: 12 I to' CST
By:
_ �129
Authorized Si a ure
Jody A. Gray
Name (type or print)
President
Title
Date:
313 E. Foothill Boulevard
_Upland, California 91786-3952
Address