HomeMy WebLinkAboutResolution - 4258 - Addendum #5 To Contract - Crawford & Company - Claims Services - 09_09_1993Resolution No. 4258
September 9, 1993
Item #32
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock Addendum No. 5
for Claim Service Contract No. 3628 by and between the City of Lubbock and
Crawford and Company, attached herewith, which shall be spread upon the
minutes of the Council and as spread upon the minutes of this Council shall
constitute and be a part of this Resolution as if fully copied herein in
detail.
Passed by the City Council this
ATTEST:
(-2ttt' A
etty o nso , City Secretary
APPROVED AS TO CONTENT:
o ert Massenga e, istant
City Manager for Financial Services
APPROVED AS TO FORM:
uonaia b. vanaiver, tirs
Assistant City Attorney
DGV:da/AGENDA-D1/A-CRWF'RD.rss
August 25, 1993
CRAWFORD & COMPANY
ADDENDUM #5
STATE OF TEXAS CONTRACT NO. 3628
PREPARED AUGUST 4, 1992
COUNTY OF LUBBOCK CLIENT CODE NO. 01277
CRAWFORD & COMPANY, hereinafter referred to as the "Servicing Company,"
and CITY OF LUBBOCK, hereinafter referred to as the "Client," mutually
agree to the following amendment to the July 14, 1989, Claim Service
Contract #3628.
1. Page 1, section (3) is amended to read as follows:
3 P6,, `f
For the period July 14, 19%t through July 13, 199,3:
220 State Workers' Compensation Medical Only
claims @ $68.00 per claimant = $ 14,960.00
69 State Workers' Compensation Other Than
Medical Only claims @ $690.50 per claimant
(States of AK, CA, FL, and TX) $ 47,644.50
40 Automobile Liability claims @ $240.00
per claimant = $ 9,600.00
164 General Liability claims @ $240.00 per
claimant = $ 39,360.00
40 SISDAT FEES @ $15.00 per fee = $ 600.00
$112,164.50
2. Page 1, last paragraph first sentence is amended to read as
follows:
The "Client" agrees to pay the "Servicing Company" at the rate of
one -twelfth (1/12) of $112,164.50 per month ($9,347.04).
3. All other provisions and amendments of the July 14, 1989 contract
#3628 shall remain unchanged.
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused
this addendum to be executed by the persons authorized to act in their
respective names.
DATED tR4 9t TEMBER, 1993.
IT F4BB CRAWFORD & MPANY
BY:
Gcu�l
• avid R. Langs n, Mayo .w•c2AwCby
TITLE: Vice President
ATTEST:
BY:
Be ty J hnson, My Secretary
APPROVED AS TO CONTENT:
BY. - A(5D) 6)1��
4ober Massengale, Assist t
ity Manager for Financial S rvices
APPROVED AS TO FORM:
BY��r
Ddgdrd G. VaWiver, Assistan
City Attorney
lit
Crawford
CRAWFORD & COMPANY
January 7, 1994
Mr. Scott Snider
Coordinator, Internal Safety
City of Lubbock
1625-13th Street, Room 204
Lubbock, Texas 79401
RE: CITY OF LUBBOCK - PROGRAM #01277
Addendum #5 to the July 14, 1989 Claim Service Contract
Effective July 14, 1993 through July 13, 1994
Dear Mr. Snider:
In accordance with our telephone conversation of January 7, 1994,
enclosed is an original and one copy of the referenced Addendum Number
Five, that has been executed on behalf of Crawford & Company.
Sincerely,
B. W. Crawley%
Vice President
BWC/vg
RECEIVED
Enclosure
cc: City of Lubbock program file JAN1219994
SAFETY DEPAR7MENr
❑ 5620 GLENRIDGE DRIVE, N.E. ❑ P.O. BOX 5047 ❑ ATLANTA, GEORGIA 30302 ❑ (404) 256-0830 FAX (404) 847-4025
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0
November 8, 1990
Page 792
90-49B-192-602
(16.) Consider Resolution #3489 authorizing the Mayor to sign
amendments to Contract for claims handling services
with Crawford and Company.
RESOLUTION #3489
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, Addendum No.
II that amends the original contract by and between the City of Lubbock and
Crawford & Company dated July 14, 1989, attached herewith, which shall be
spread upon the minutes of the Council and as spread upon the minutes of
this Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 8th day of November, 1990.
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
/s/ B. C. McMinn
B. C. McMINN, MAYOR
November 8, 1990
Page 793
APPROVED AS TO CONTENT:
!s/ J. Robert Massenaale
J. Robert Massengale, Assistant
City Manager for Financial Services
STATE OF TEXAS
COUNTY OF LUBBOCK
APPROVED AS TO FORM:
/s/ Dennis W. ill
Dennis W. McGill, Tria Attorney
CRAWFORD 5 COMPANY
ADDENDUM 02
CONTRACT NO. 3628
PREPARED 10-01-90
CLIENT CODE 01277
CRAWFORD 3 COMPANY, hereinafter referred to as the 'Servicing Company% and
CITY OF LUBBOCK, hereinafter referred to as the 'Client', mutually agree to
the following amendment to the July 14, 1989, Claim Service Contract #3628.
Page 1, section (3) is amended to read as follows:
194 State Workers' Compensation Medical Only
claims @ $59.25 per claimant -1 - $ 11,494.50
140 State Workers' Compensation Other Than
Medical Only Claims @ $366.50 per claimant - $ 51,310.00
72 AutomobiTe Liability Claims @ $203.75
per claimant - $ 14,670.00
158 General Liability claims @ $203.75
per claimant - S 32,192.50
$109,667.00
2. Page 1, last paragraph first sentence is amended to read as follows:
The "Client" agrees to pay the "Servicing Company" at the rate of
one -twelfth (1/12) of $109,667.00 per month ($9,138.92).
3. Page 2, immediately following paragraph 2, a new paragraph is added
as follows:
Claims handled by the 'Servicing Company" with dates of accident
prior to the effective date of this contract shall be handled on a
time and expense basis.
4. Page 2, immediately following paragraph 5, a new paragraph is added
as follows:
Pre -hearings shall be handled by the "Servicing Company" at a flat
rate of $125.00 per hearing.
5. Page 3, Section I.A., is amended to read as followsL
I. THE "SERVICING COMPANY' AGREES:
A. To review all claim and/or loss reports with claims
and/or loss dates incurred October 1, 1986, through
+"'s July 13, 1989 in accordance with the 'Client's" Claims
Service Agreement for all accident/occurrence lines of
exposure or claims and/or losses made during the term
of this contract for all claims made lines of exposure
to the "Client".
On July 13, 1989, the City of Lubbock entered into a
Contract with Crawford and Company for processing
claims for liability and worker's compensation for five
years, with a provision for adding revisions each year.
Addendum 01 adds professional liability claims to the
list of the types of claims that should be handled on a
"time and expense" basis by Crawford and Company.
According to Staff memo, this should have been in the
original Contract but was inadvertently left out.
November 8, 1990
Page 794
According to the provisions in the Contract, Addendum
i2 was added to increase the fees. The fees in 1989-90
were S94,068.50, and this increase will result in an
overall approximate 6 1/2% increase.
Staff advised that the increase in cost is justifiable
in relation to industry standards and recommended
Council approval of these adjustments to the Contract
with Crawford and Company.
Motion was made by Councilwoman Trejo, seconded by
Mayor Pro Tem Baker to authorize Resolution 03489 as
recommended by Staff. Motion carried: 7 Yeas; 0 Nays
mo
i
City of Lubbock
P.O. Box 2000
Lubbock. Texas 79457
806-767-2276
January 8, 1991
Walter Crawley
Vice President
Crawford & Company
5780 Peachtree-Dunwoody, Suite 300
Atlanta, GA 30342
Dear Mr. Crawley:
Finance Administration
Here are the two signed addendums that you requested. Thank you so much
for your continued patience. If there's anything else you need, please
let me know.
Sincerely,
` 0 s-y- L30-0 A
Betsy Wood
Assistant Director of Finance
i
No Text
Keso iuLion Ts iuj
°' •' September 14, 1989
CRAWFORD g COMPANY Item #27
CLAIM SERVICE CONTRACT
CONTRACT NO. 3628
PREPARED SEPTEMBER 5, 1989
CLIENT CODE NO. 01277
THIS AGREEMENT, made and entered into effective this fourteenth day
of July, 1989, between CRAWFORD & COMPANY, a corporation of the State of
Georgia, hereinafter referred to as the "Servicing Company," and CITY OF
LUBBOCK, a governmentAl entity of the State of Texas, hereinafter referred
to as "Client."
WITNESSETH THAT
WHEREAS, the "Servicing Company" operates a business known as
CRAWFORD & COMPANY, Claims Adjusters, and
WHEREAS, the "Client" desires to employ the "Servicing Company" as
its Claims Adjusters, to service its claims for its self -insured exposures
as stated in Paragraph (3) hereunder, up to its self -insured retention.
NOW THEREFORE., the "Servicing Company" and the "Client" mutually
agree as follows:
(1) The general agreements pages, to which this is attached, are
made a part hereof as though fully repeated and set out herein.
(2) This contract covers Claim Service for the "Client" in the
U.S.A.
(3) The "Client" shall pay the "Servicing Company" fees as follows:
243 State Workers Compensation Medical Only
claims @ $55.75 per claimant = $ 13,547.25
80 State Workers Compensation Other Than
Medical Only claims @ $ 344.25 per claimant = $ 27,540.00
51 Automobile Liability claims @ $191.25
per claimant = $ 9,753.75
214 General Liability claims @ $191.25 per
claimant = $ 40,927.50
20 Pre -hearings @ $115.00 per hearing = $ 2,300.00
$94,068.50
The "Client" Agrees to pay the "Servicing Company" at the rate of
one -twelfth (1/12) of $94,068.50 per month ($7,839.04). At'the first of
each monthly period during the term of this contract, monthly billings in
said amount will be submitted to the "Client" by the "Servicing Company"
and such billings will be paid by the "Client" to the "Servicing Company"
within forty-five (45) days of such billing. Twelve months after the
contract team, there shall be a final accounting as to the actual number of
claimants handled by the "Servicing Company" and the "Servicing Company"
will be entitled to compensation at the above flat rates for each claimant
in excess of the above niimbers. Likewise, the "Client" shall be entitled
-1- #01277 - 7/10/89
to a refund on the same basis if the number of claimants does not reach the
above projections. If the final accounting results in a refund due the
"Client," the "Servicing Company" will make such refund within ninety (90)
days of the "Client's" written request for such refund. If the final
accounting results in the "Client" owing the "Servicing Company" additional
sums, the "Client" will pay the "Servicing Company" within ninety (90) days
from the date of the "Servicing Company's" billing for such additional sums.
Any single accident or occurrence resulting in ten or more declared or
potential claimants shall be treated as a catastrophe. Such catastrophe
cases shall be handled on a Time and Expense basis by the "Servicing
Company" at its then prevailing hourly rate and expense method of billing.
Contractual Liability claims, Personal Injury Liability claims, Employer's
Liability claims, Occupational Disease claims, and sybrogation
investigation shall be handled on a Time and Expense basis by the
"Servicing Company" at its then prevailing hourly rate and expense method
of billing. All claim services in Puerto Rico and the Virgin Islands shall
be provided by the "Servicing Company" on a Time and Expense basis at its
then prevailing hourly rate and expense method of billing.
Billings for time and expense claims will be submitted to the "Client" by
the "Servicing Company" when such claims are concluded, or if any such
claims have not been concluded and have accumulated billing amounts of Two
Hundred Dollars ($200) or more, the "Servicing Company" will submit interim
time and expense billings to the "Client" within six (6) months from the
date of assignment of such claims to the "Servicing Company." Subsequent
interim billings will be submitted thereafter only when any such claim has
accumulated i billing amount of Two Hundred Dollars ($200) or more. Claims
so interim billed shall continue to be handled by the "Servicing Company'
after interim billing on a time and expense basis at the "Servicing
Company's" then prevailing hourly rate and expense method of billing. Such
time and expense billings submitted to the "Client" by the "Servicing
Company" will be paid by the "Client" to the "Servicing Company" within
thirty (30) days of billing.
For all Time and Expense lines of coverage, SISDAT shall be charged on the
basis of $15 per claimant which shall be reconciled by the "Servicing
Company" in the same manner as stated above.
In addition to the compensation of the "Servicing Company" set forth
herein, any taxes, except taxes on income, which the "Servicing Company"
may be required to pay or collect or which may be incurred by or assessed
against the "Servicing Company," under any existing or future law, in any
way relating to the sale, delivery, rendering or provision of services to
the "Client" pursuant to this contract, including but not limited to any
Canadian (Federal, Provincial, territorial or local) or any domestic
(Federal, State or local) sales, use, personal property, ad valorem or
other tax shall be for the account of the "Client." The "Servicing
Company" shall bill the "Client" and the "Client" shall promptly pay the
"Servicing Company" all such taxes in accordance with the provisions of the
applicable law and regulations concerning collection of such taxes and the
"Servicing Company" shall remit such taxes to the appropriate taxing
authority.
The fees of the "Servicing Company" apply only to claims handling within
the "Client's" self-insurance retention. Once the "Client's"
-2- #01277 - 7/10/89
G
self-insurance retention(s), either specific or annual aggregate, has/have
been excePdod, the "Servicing Company" will be considered to have earned
its fee(s) as set forth cinder this contract.
GENERAL AGREEMENTS
I. THE "SERVICING COMPANY" AGREES:
A. To review all claim and/or loss reports with claim and/or loss
dates incurred during the term of this contract for all
accident/occurrence lines of exposure or claims and/or losses
made during the term of this contract for all claims made lines
of exposure, involving the hereinabove stated exposures to the
"Client."
B. To investigate, with reasonable diligence, all reported claims
and/or losses as defined in Section I.A., above.
C. To investigate, adjust, settle or resist all such losses and/or
claims as defined in Section I.A., within the discretionary
settlement authority limit of the "Servicing Company."
D. To investigate, adjust, settle or resist all such losses and/or
claims as defined in Section I.A., in excess of the
discretionary settlement authority limit of the "Servicing
Company" with specific prior approval of the "Client."
E. To furnish all claim forms necessary for proper claims
Administration.
F. To establish claim and/or loss files for each reported claim
and/or. loss. (Claim and/or loss files are subject to review by
the "Client" at any reasonable time, without prior notice.)
G. That the records, reports and other information created,
gathered, or maintained by "Servicing Company" in discharging
its obligations to City under this agreement may well be
considered pvihlic records and accordingly such public records
may not be destroyed (V.A.P.C. Sec. 37.10). "Servicing Company"
agrees to care for and return all of its records maintained by
it in the discharge of this contract to City for proper
storage. The policy described in Exhibit "A" shall be followed
by "Servicing Company" as to when a record, report or other
information shall he returned to City.
H. To furnish the "Client" with monthly Loss Run, monthly Loss Fund
Activity and quarterly Loss Cause Analysis claim statistical
information from the "Servicing Company's" SISDAT Department.
The "Client" shall designate the breaks for the total and
subtotals for each division, region, etc. In the event the
"Client" desires a statistical report of its own design, or
additional reports from SISDAT, a separate quotation for the
additional cost will be submitted to the "Client" for approval.
The statistical information will be furnished to the "Client"
either as hard copy or microfiche.
-3- #01277 - 7/10/89
1. To maintaii, adequate General Liability, Automobile Liability,
Workers Compensation, Fidelity Bond, and Errors and Omissions
insurance coverage.
J. To establish an account (regular demand deposit Account or
minimum balance controlled disbursement account), hereinafter
referred to as the "Loss Fund Account," with a bank in Atlanta,
Georgia of the choice of the "Servicing Company" for the purpose
of paying claims and/or losses and associated allocated loss
expense and to maintain And perform monthly reconciliations of
that account. The cost of any bank charges shall be paid by the
"Client."
K. To indemnify, defend, and hold harmless the "Client" with
respect to any claims asserted as a result of any errors,
omissions, torts, intentional torts or other negligence on the
part of the "Servicing Company" and/or its employees unless the
complained of Actions of the "Servicing Company" were taken at
the specific direction of the "Client."
L. To report directly to the "Client" and to have no responsibility
for reporting to or placing any specific excess insurer(s) or
annual aggregate excess insurer(s) on notice of any claim(s)
that iS/Are or may be required to be reported or notice given to
such excess insurer(s) under any such excess insurance policies
available to the "Client." The "Servicing Company" will
continue to handle claims once the "Client's" self-insurance
retention, either specific or annual aggregate, has been
exceeded if mutually agreed to by the "Client" and excess
insurer(s), if there is no controversy as to coverage,
liability, and damages between the "Client" and its excess
insurer(s). Such further claims handling will be provided by
the "Servicing Company" at time and expense based upon its then
prevailing hourly rate and expense method of billing with the
excess insurer(s) being responsible for supervision of the
"Servicing Company" and payment of the "Servicing Company's"
timP And expense service hills.
M. That its wholly owned subsidiary, Risk Sciences Group, Inc.,
will provide the services set forth in Exhibit B. attached
hereto and made a part hereof, for the consideration and in
accordance with the terms and conditions of the agreement
therein set forth.
II. Tim "Cr.TFNT" AGRFFS:
A. To make funds available that the "Servicing Company" may draw
from at any time and from time to time for claim and/or loss
payments and for associated allocated expense within the
discretionary settlement authority limit of the "Servicing
Company" and for claim and/or loss payments in excess of the
discretionary settlement authority limit of the "Servicing
Company."
(1) On or before the effective date of this contract,
the "Client" will provide an initial imprest deposit to
the "Servicing Company" in an amount equivalent to five
-4- #01277 - 7/10/89
(5) banking days of average Anticipated claim and/or loss
and associated allocated expense payments or ten thousand
dollars ($10,000), whichever is greater, to be maintained
by the "Servicing Company" as a loss fund deposit,
hereinafter referred to as the "Deposit," for payment of
claims and/or losses and associated allocated expense from
the "Servicing Company's" "Loss Fund Account."
(2) Reimbursement to the "Loss Fund Account" will be made by a
daily direct debit executed by the "Servicing Company's"
bank against the "Client's" designated bank account for
deposit into the "Loss Fund Account" at the "Servicing
Company's" bank. The amount of the daily direct debit
will be limited to the amount computed by the "Servicing
Company" who will instruct its bank as to the appropriate
amount. The amount of the daily direct debit will be
determined by the "Servicing Company" computing the
average claim and/or loss and associated all expense
payments made daily for the "Client." Each day the same
average amount will be deposited into the "Servicing
Company's" "Loss Fund Account" via a direct debit drawn
against the "Client's" designated bank account. At the
end of each month, beginning with the end of the first
month from the effective date of this contract, the
"Servicing Company" will compare the total deposits to the
"Loss Fund Account," including all direct debits resulting
from the average daily budgeted amount and any amount as
specified in Section II.A.(4) below, made during the month
.to the "Servicing Company's" "Loss Fund Account" to the
actual claim payment account detailed in the SISDAT
Monthly Loss Fund Activity and Loss Run Reports and an
adjustment direct debit will be made, so the monthly
deposits are equal to the totals shown on such SISDAT
reports which post payments based on checks issued.
(3) The "Servicing Company" will conduct a quarterly analysis
of the adequacy of the "Deposit" in the "Servicing
Company's" "Loss Fund Account" based upon the most current
three (3) months of "Loss Fund Account" activity. If the
analysis determines that the current average "Loss Fund
Account" activity exceeds the then existing "Deposit,"
then the "Servicing Company" will authorize its bank to
initiate an adjustment direct debit in the amount
necessary to bring the "Deposit" to the level stipulated
in Section 1I.A.0 ), above. The "Servicing Company" will
Adjust the average daily direct debit to the revised
average daily amount in accordance with Section II.A.(2)
above.
(4) The "Servicing Company" will notify the "Client," via
telephone, whenever any single claim and/or loss payment
or associated allocated expense payment is made for
twenty-five thousand dollars ($25,000) or more, and these
amounts will be included in the direct debit along with
the daily budgeted amount. The "Servicing Company" will
not consider such amounts in arriving at the daily
budgeted direct debits and will not consider such amounts
-5- #01277 - 7/10/89
in computing the necessary "Deposit" required of the
"Client" as sot forth in Section II.A.(3) above.
(5) An appropriate letter, hereinafter referred to as the
"Letter of Authority," will be provided, within fifteen
(15) days from the effective date of this contract, to the
"Servicing Company's" bank authorizing the "Servicing
Company's" bank to initiate the necessary daily direct
debits against the "Client's" designated bank account for
deposit to the "Loss Fund Account" at the "Servicing
Company's" bank. In addition, the "Servicing Company"
.will be furnished by the "Client" with such account
documentation with respect to the "Loss Fund Account" that
may be required by the "Servicing Company's" bank and the
"Servicing Company" respectively.
(6) The "Servicing Company" shall be and hereby is indemnified
by the "Client" from and against any and all losses,
damages, suits, actions, proceedings, and expenses,
including, without limitation, all attorneys' fees,
incurred or suffered by the "Servicing Company" in
connection with (i) the "Loss Fund Account" established by
the "Servicing Company" at the "Servicing Company's" bank
for the benefit of the "Client;" or (ii) any drafts,
checks, items, overdrafts or other charges to, on, or
related in any way to the "Loss Fund Account" established
by the "Servicing Company" at the "Servicing Company's"
bank for the benefit of the "Client." This provision
shall not include losses, damages, suits, actions,
proceedings and expenses resulting from any negligent,
tortious, fraudulent, or dishonest actions by the
"Servicing Company," its officers, agents or employees.
(7) The "Servicing Company" may draw and authorize checks,
drafts, and other items on the "Loss Fund Account" only if
the "Servicing Company" determines that it has sufficient
funds in the "Loss Fund Account" to cover such checks,
drafts, and other items.
(8) The "Servicing Company" may terminate the "Loss Fund
Account" at any time, in its sole discretion, with or
witho»t cause.
(9) As security for the due and punctual payment and
performance of all indebtedness and obligations of the
"Client" to the "Servicing Company," whether now existing
or hereafter arising, however evidenced, whether direct or
indirect, absolute or contingent, individually or jointly
with any other person, and including, without limitation,
all indebtedness, payments, reimbursement of funds, and
other moneys owed by the "Client" to the "Servicing
Company" pursuant to this contract (the "Secured
Obligations"), the "Client" hereby pledges, assigns,
transfers, sets over, conveys and delivers to the
"Servicing Company," and hereby grants to the "Servicing
Company," a security interest in all right, title and
interest of the "Client" in and to the moneys from time to
-6- #01277 - 7/10/89
time on deposit in the "Loss Fund Account" including,
without limitation, the "Deposit" (the "Funds"). The
"Client" acknowledges and agrees that, so long as this
contract remains in force and effect, the "Funds" shall
constitute cash collateral as that term is defined by
Section 363(a) of the Bankruptcy Code, 11 U.S.C. Section
363(a). The "Client" further acknowledges and agrees that
the foregoing security interest is perfected in favor of
the "Servicing Company" by the "Servicing Company's"
control over the accounts into which the "Funds" are
deposited and, in the alternative, by possession of the
"Funds" by the "Servicing Company's" bank there the "Loss
Fund Account" is established, who, for purposes of the
security interest, shall be and is hereby deemed to be the
Bailee of the "Servicing Company" within the meaning of
Section 9-305 of the Uniform Commercial Code. The
"Client" hereby authorizes the "Servicing Company" at any
time, and regardless of whether there exists or is
continuing an event of default under this contract, to
apply and setoff without notice any indebtedness due or to
become due to the "Servicing Company' from the "Client,"
including, without limitation, the "Funds," against and in
satisfaction of any of the "Secured Obligations" of the
"Client" secured hereby, regardless of the nature of such
obligations or the time they arise.
(10) The "Client" also agrees to provide the "Servicing
Company," within fifteen (15) days from the effective date
of this contract, with financial security in the form of a
"Loss Fund Escrow Account," which account shall be
maintained with the "Client's" depository bank, and which
account shall at all times be available to the "Servicing
Company" to ensure that (i) the "Loss Fund Account" is at
all times funded in the amounts necessary to enable the
"Servicing Company" to pay claims and/or losses and
associated allocated expenses as set forth in this
contract, and (ii) service fees are paid as set forth in
this contract. Such financial security shall be equal in
amount to two (2) months' anticipated payments of claims
and/or losses and associated allocated expenses, or fifty
thousand dollars ($50,000), whichever is greater. The
"Servicing Company" will conduct a quarterly analysis of
the "Loss Fund Account" activity based upon the three (3)
most current months of "Loss Fund Account" activity. If
the analysis determines that the "Loss Fund Account"
activity warrants an increase in the required financial
security hereunder, the "Servicing Company" will notify
the "Client" of the required increase and the "Client"
will provide such increase to the "Servicing Company'
within thirty (30) days of such notice.
(11) The "Servicing Company" will issue checks from the "Loss
Fund Account" for amounts in excess of the "Client's"
annual aggregate self-insurance retention unless the
"Client" specifically instructs the "Servicing Company" to
the contrary so long as the "Loss Fund Account" balance is
adequate to accommodate such amounts or necessary
-7- #01277 7/10/89
C.� C
additional deposits are made by the "Client" to the "Loss
Fund Account" to adequately accommodate such amounts. The
"Servicing Company" will not intentionally issue a check
from the "Loss Fund Account" in payment of any amount in
excess of the "Client's" specific per claimant or per
occurrence self-insurance retention, as identified by the
"Client" to the "Servicing Company," until such time as
the "Client" transfers funds for the full amount of such
payment into the "Loss Fund Account." The "Servicing
Company" assumes and has no responsibility or obligation
to recover from any of the "Client's" excess insurer(s)
any amounts represented by checks issued from the "Loss
Fund Account."
B. To pay to the "Servicing Company" the claim service fee as
prescribed in this contract.
C. To pay to the "Servicing Company," in addition to the claim
service fee as prescribed in this contract, at its then
prevailing hourly rate and expense method of billing for all
claims service for all claims and/or losses previously handled
or attempted to be handled by any person, firm or corporation or
the "Client" before being assigned to the "Servicing Company."
D. To pay all allocated loss expense, as defined herein, in
addition to the claim service fee to be paid to the "Servicing
Company" as proscribed in this contract.
E. To allow "Servicing Company" to control, handle and settle all
claims following within its discretionary settlement authority.
The "Servicing Company" may exercise its judgment in connection
with the above described authority provided that the "Servicing
Company" undertakes the following actions:
(1) Keep the City fully informed as to the nature and status
of said claim or claims.
(2) Inform, prior to settlement, City of the settlement value
of the claim or claims as determined by "Servicing
Company."
F. To indemnify, defend, and hold harmless the "Servicing Company"
and/or its employees in the event of an adverse result or
judgment when the "Servicing Company" could have settled the
claim and/or loss within its discretionary settlement authority
limit, if the "Servicing Company" is not guilty of error, other
than error in judgment, omission, tort, intentional tort, or
other negligence unless such actions were taken at the specific
direction of. the "Client."
G. To indemnify, defend, and hold harmless the "Servicing Company"
and/or its employees in the event the "Servicing Company,"
acting at the specific direction of the "Client," becomes liable
to any third parties.
H. To indemnify, defend, and hold harmless the "Servicing Company"
and/or its employees if the "Servicing Company" or any of its
-8- #01277 - 7/10/89
employees ..tee named as a defendant in arty al -Lion (i) where the
pinintiff's cause of action involved a claim hereunder and (ii)
where there are no allegations of errors, omissions, torts,
intentional torts, or other negligence on the part of the
"Servicing Company."
III. THE "SERVICING COMPANY" AND THE "CLIENT" MUTUALLY AGREE AS FOLLOWS:
A. The term of this contract is continuous from its effective date
for five (5) years. However, the claim service fees shall be
subject to negotiation at each twelve (12) month anniversary
date. The contract can be terminated by either the
"Servicing Company" or the "Client" with or without cause and
for any reason whatsoever by sixty (60) days written prior
notice.
B. The "Client" shall have the option upon termination of this
contract:
(1) To self -handle to a conclusion all claims and/or losses
and associated services pending on the date of termination
of this contract, such handling not to result in any
expense or reduction in contract revenue to the "Servicing
Company" previously earned or incurred on said claim or
claims; or
(2) To have the "Servicing Company" handle and adjust to a
conclusion all claims and/or losses pending on the date of
termination of this contract. Sufficient funds of the
"Client," including allocated claim and/or loss expense,
shall remain available to the "Servicing Company" to
liquidate such claims and/or losses.
C. The flat rate per claimant claim service fees reflected in this
contract include the provision of claim services by the
"Servicing Company" for the "Client" for a period of two (2)
years from the date of accident/ occurrence for all
accident/occurrence lines of exposure and two (2) years from the
date claim is made for all claims made lines of exposure. Any
claim(s) not concluded within such time parameters shall be
handled to a conclusion by.the "Servicing Company" for the
"Client" from that date forward on a time and expense basis at
the "Servicing Company's" then prevailing hourly rate and
expense method of billing.
D. This contract does not include any Risk Control Services,
activities, functions and/or responsibilities whatsoever and
specifically excludes any Risk Control Services, activities,
functions and/or responsibilities.
E. Allocated Loss Expense shall mean and include all expense items
such as attorneys' fees, commercial photographers' fees,
experts' fees (I.e., engineers, physicians, chemists, etc.),
fees for independent medical examinations, rehabilitation fees,
trial/hearing attendance fees, witnesses' travel expense,
extraordinary claim investigation and/or travel expense incurred
by the "Servicing Company" at the request of the "Client," court
-9- #01277 - 7/10/89
reporters' fees, transcript fees, the cost of obtaining public
records, witness fees, auto appraisal or property appraisal
fees, all outside expense items, and any other similar fee, cost
or expense associated with the investigation, negotiation,
settlement or defense of any claim hereunder or as required for
the collection of subrogation on behalf of the "Client."
F. No periodic reports or reports on the status of individual claim
and/or loss files, other than as provided in Sections I.F.,
I.G., and I.H., are required from the "Servicing Company" unless
the reserve amount on any given claim and/or loss exceeds the
discretionary settlement authority limit of the "Servicing
Company." If a given claim and/or loss reserve amount exceeds
the discretionary settlement authority limit of the "Servicing
Company," reports will be submitted by the "Servicing Company"
to the "Client" as may be mutually agreed to on an individual
claim and/or loss file basis.
G. The "Client" shall have the right during the term of this
contract or during such time after the expiration or termination
of this contract as may be necessary to perform an audit upon
the book of accounts, bank accounts, claim files or other
records maintained by the "Servicing Company" to the extent such
records reflect or concern the activities of the "Servicing
Company" under this contract. In the event such audit reveals
that overpayments have been made to the "Servicing Company,"
then in such event the "Client" shall present to the "Servicing
Company" a detailed copy of said audit showing the basis of such
alleged overpayment and the "Servicing Company" shall have
forty-five (45) days to review said detailed audit. In the
event the "Servicing Company" disputes the detailed audit
presented, the parties hereto agree to meet and confer to
resolve any such dispute.
H. In the event that the "Servicing Company" contends that it has
been underpaid by the "Client" in, accordance with the terms of
this contract, it shall present to the "Client" a detailed
account showing the basis of such alleged underpayment and the
"Client" shall have forty-five (45) days to review said detailed
statement. In the event the "Client" disputes the detailed
statement presented, the parties hereto agree to meet and confer
to resolve any such dispute.
I. Both parties agree that the services to be performed under this
agreement require good, sufficient and timely communications
between the "Servicing Company" and the "Client" and to this end
both parties agree to give their full attention to this
undertaking.
J. The "Client" retains full authority to select legal defense
attorneys of the "Client's" choosing.
K. This contract is made and entered into in Lubbock County, Texas,
And accordingly the law of the State of Texas shall govern this
contract and the interpretation of same.
-10- #01277 - 7/10/89
T,. Venue upon any dispute of this contract shall be in Lubbock
County, Texas.
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused
this contract to be executed by the persons authorized to act in their
respective names.
DATED THIS 14th DAY OF September ,1989.
CITY OF LUBBOCK
BY: 5e, c �,�
B. C. McMinn, Mayor
ATTEST: '
r
�)"RanettBoyd, City Secret ry
APPROVED' AS TO CONTENT:
BY:
J. obert Massengale, Assistant
City Manager for Financial Services
APPROVED AS TO FORM:
BY: C �...e
JohW C. Ross, Jr., Cit3A Attorney
CRAWFORD &_COMPANY
BY: li
TITLE: Vice President
-11-
#01277 - 7/10/89
EXHIBIT A
FILE RETENTION AND DESTRUCTION POLICY
LIABILITY FILES: Destroy two (2) years after applicable statute of
limitations has expired.
Exceptions:
a. Suits - retain until expiration of appellate process. Then
destroy.
b. Mental Incompetents - retain indefinitely.
C. Infant (Minor) Claims - retain until infant reaches majority
plus applicable statute of limitations plus two (2) years.
FIRST PARTY CLAIMS, SUBROGATION ARBITRATION, INCIDENT REPORTS, AND BOND
LOSSES:
Destroy one (1) year after file closing.
Exceptions•
a. Suits - retain until expiration of appellate process. Then
destroy.
b. Prevailing Statute Precludes Destruction in one (1) year.
WORKERS' COMPENSATION CLAIMS:
Medical Only Claims Excluding Occupational Disease Claims: Destroy six
(6) months after applicable statute of limitations has expired.
Exceptions:
a. Prevailing Statute Precludes Destruction in six (6) months.
Other Than Medical Only Claims Excluding Occupational Disease Claims:
Destroy one (1) year after applicable statute of limitations has expired.
Exceptions•
A. Formal or Informal Hearing Level Claims - retain until
expiration of appellate process. Then destroy.
b. Prevailing Statute Precludes Destruction in one (1) year.
Occupational Disease Claims: Destroy four (4) years after applicable
statute of limitations has expired.
Exceptions•
a. Formal or Informal Hearing Level Claims - retain until
expiration of appellate process. Then destroy.
b. Prevailing Statute Precludes Destruction in four (4) years.
-12- #01277 - 7/10/89
EXHIBIT B C
AGREEMENT FOR SERVICES
Risk Sciences Group, Inc.
Corporate Offices
5620 Gfenridge Drive, Atlanta GA 30342
The terms and conditions o(thls Agreement shall apply to the entire scope of transaction between Rurc SaENCEs Caour, INC- hereinafter
(RSG) and the ciient signing below hereafter (CUE21 17. This Agreement may be supplemented from time to time by additional written
to ms and conditions signed by authorized representatives of R5G and CLIENT.
SECTION 1. • SERVICES
1.1 RSG shallrender the services specified in the Exhibits and Schedules and such additional services undertaken by mutual agreement
at then current rates of RSG.
1.2 Services shall be deemed successfully completed if RSG is not advised of erron or omissions within thirty (30) days following
delivery or demonstration thereof -
SECTION 2. FEES AND EXPENSES
2-1 CLIENT shall pay the fees and charges designated in the Exhibits and Schedules. RSC shall issue invoices monthly for services
performed during the preceding month. R5G may modify its fees and charges annually upon 90 days notice.
2.2 CLIENT shall reimburse RSG for out of pocket travel expenses, communications costs and costs of materials and supplies, actually
incurred by RSG hereunder.
23 Any payments not received by R5G within thirty (30) days of invoice date shall bear interest at the lesser of 15% per month or the
maximum lawful rate.
2.4 The lees and charges specified above are exclusive of any federal, state or local taxes, tariffs or duties. CLIENT shall reimburse RSG
for any such tax. tariff or duty, excluding taxes based on the net income of RSC.
SE=ON3. TERM ANDTERMINATION
3.1 The term of this Agreement shall commence on the da to of execution and continue for a period of one year. This Agreement shall
automatically renew for successive periods of one year, unless either party gives the other patty sixty (60) days advance notice of
nonrenewal.
32 Either party may terminate this Agreement if the other party commits a material breach and fails to cure said breach within thirty
00) days of notice thereof.
33 Either party may terminate this Agreement immediately (f the other party (I) is rendered or becomes insolvent, (li) is unable to pay
debts as they become d ue, C.u) is adjudicated a bankrupt. or files, or becomes subject to a petition of an yinsoivency, credi tors or banlcruptcy
law, or Civ) has a receiver, liquidator or trustee of substantially all its assets appointed by a court of competent jurisdiction.
3.4 Upon notice of termination from CLIENT, RSC shall complete work in progress. Upon termination, CLIENT shall return
immediately to R5G all unpurchased equipment, supplies, work product and technology and CLIENT shall pay all fees and charges for
services rendered and expenses incurred by R5G.
SECTION4. CLIENT RESPONSIBILITY
4.1 CLIFNTshall arrange and pay for the procurement,installation, maintenance and operation atitssiteof all requisite and compa tible
equipment, communications and utilities unless otherwise set forth herein.
42 CLIENT is responsible for the accuracy, adequacy and compatibility of its source data, programs and procedures designed and
written by CL1E:i 1Tor for CLiENTby any third party, and the results obtained therefrom. Client is responsible for thecost and riskof loss
of packaging and transmittal of its programs and data to a nd from RSC and for creating and preserving appropriate and adequate backup
files and error detection therefor.
SECTIONS. RSG RESPONS.rB1LMES
5.1 RSG will return to CLIENTa ll data of CLIENTin possession of R5G via a standard IBM machine readable tape within sixty (60) days
oar termination and payment of all outstanding Invoices; provided, RSG may retain a copy of such data for use in aggregate statistical
compilation and analysis. If CLIENT proposes an alternative form of data return agreeable to RSG, RSG will provide CLIENT with an
estimate of the cost for impiementing such return within thirty (30) days of receipt of the proposal of CLIENT.
52 RSG shall use due care in processing work submitted by CLIENT. The exclusive remedy of the CLIEN T for any error or ma lfunction
for which RSG is responsible. and for any breach of warranty under Section 73, RSG shall at its option either W rerun or credit the job,
or60recreatethedataorpregramfilesusingmachinereadabledatasuppliedbyCL1ENT. R5G shall only be responsible for malfunctions
of RSC controlled computer systems and programs, or errors of R5G operators.
SECTION 6. LIMITATION OF RIGHTS TO COMPUTER SOFTWARE; PROPRIETARY PROTECTION
6.1 Except as otherwise specified, nothing herein shall be deemed to grant or transfer to CLIENT any right, license or title to or
ec•ncerning any computer sotftware or documentation developed, utilized or accessed by either party corder this Agreement, which shall
remain the exclusive property of RSG and/or its licensors and vendors.
6.2 CLIENT shall not decompile, reverse assemble or otherwise unlock any computer software developed, utilized or accessed by
CLIENT hereunder.
63 CLIENT shall hold in confidence any trade secrets (whether or not in written or tangible form) of RSG or any third party made
available to CLIENT hereunder. CLIENTshall limit access to such trade secrets to its employees who have a specific need to know such
trade secrets and who are under a legally binding obligation of confidentiality and limitation of use consistent with the terms hereof.
CLIEW shall not use. occupy, transfer disclose or permit unauthorized access to such trade secrets for so long as the pertinent informa-
tion remains a trade se(ret- For purposes hereof, a trade secret shall consist of any scientific or technical information, design, process,
procedure, formula or improvement that is commercially valuable and not generally known in the industry of principal use.
6.4 For a period of five (5) years following disclosure to either party, the other party shall hold in confidence all confidential business
inferrna tion which is unpublished, not known to the receiving party at the time of disclosu: e, and not independently developed, disclosed
to that party and identified as confidential by the disclosing party.
6.51f either par:v Baal) receive a request or demand for access to information of the other party, whether or not under authority of law,
t ; arty ;ca:l ire-^ediately ncrif- the other -
SECTION 1. WARRANTIES `=Y'
7.1 CLIENT warrants that it 0) is procuring services of RSG for its internal use and will not re".. or allow any third party use of such
services, whether for a fee or otherwise; and (ii) has the right to deliver the data required hereunder to RSG for the purposes intended.
72 RSC warrano it has the right to offer the services to be performed and that such services do not Infringe any valid US. copyright
or patent.
73 RSG shall perform its services In a competent, workmanlike manner in accordance with generally accepted industry standards
CLIFINT acknowledges and agrees that consulting services rendered in the area of loss forecasts, loss reserving or similar actuarial
app(iaatioro bear a significant potential for variation between projected and actual results. Error is often due to random fluctuation,
stadstial variation and other factors. CLIENT acknowledges that RSG cannot be responsible for such variations, conclusion or action
based thereon- Further, CLIENT agrees that RSG cannot guarantee that alI work produced will be without error or free of delay or
disruption.
7.4 EXCEPT AS EXPRESSLY SET FORTH A SO V E, RSG DNSCL CAS ALL WARRANTIES, BOTH EXPRESS AND NPUED, RELATED
TO THE PRODUCTS SUPPLIED AND SERVICES RENDERED HEREUNDER AND THE RESULTS OBTAINED THEREBY, INCLUD-
ING WITHOUT LIMITATIONS IMPLIED WAR.RA1,IIES OF MERcHANfABiL1TY AND FITNESS FOR A PARTICULAR PURPOSE
SECTIONS. LIMITATIONS AND INDEMNITY
8.1 Subject to Section 83 and 8.4, RSG will defend CUENTagainst a claim Nat computer software licenses by RSG hereunder and used
within the scope of the license infringes a US. patentor copyright and R5G'wdl pay the resulting costs, damages and attorney fees finally
a warded; provided the (i) CUENT promptly notifies RSG of the daim, and (ii) RSG has sole control of the defense and all rela ted settlement
negotiations.
8.2 if such a claim occurs, or In RSG's opinion is E likely to occur, CU173hall permit RSC at Its option to either procure for CLIENT
the right to continue using the computer software licensed or to replace or modify same so that it is nonirdringirig. If neither alternative
is reasonably available, CLIENT agrees to return all copies of the software and related documentation to RSG.
33 RSG shall not have obliga tion tinder Section 8.1 for any daim based on (i) use of other than a current unaltered release of the licensed
software if such infringement would have been avoided by the use of such current, unaltered version, (!I) use of any lIcemwei software
with non-RSG data or materials if such infringement would have been avoided by not using such data or materials, or dii) use of any
licensed sof twarein other than the speared operating environment if such infringement would have been avoided by use in the specified
operating environment.
8.4 Entire liability of RSC for damages to CLIENT for any cause whatsoever, and regardless of the form of action, whether in contract
or tort and including negligence, shall be limited to the greater of S100,000 or the aggregate fees received by RSG hereunder during the
immediately preceding twelve month period. In no event shall RSG be liable to CLIENT or any thud party for incidental, special
consequential or exemplary damages, including (without limitation) lost profits, lost savings, or Impact from data loss.
3_5 CLIENT does hereby Indemnify and hold RSG harmless from and against any and all claims, demands, loss, liability and expenses
incurred by RSG in connection with the furnishing by CLIENT or use by R5G of any data, information or material other than data,
information or material furnished solely by RSG under this Agreement.
SEC-nON 9. MISCELLANEOUS
9.1 RSG shall not be responsible for any delay or failure to perform which is due to causes beyond its reasonable control.
9.1 This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective suecesson and assigns;
provided, CUENT ma y not assign this Agreement or its rights hereunder to any party without RSG's prior eonsen 4 except to a corporation
or legal entity controlled by or under the common control with CLIENT.
93 The validity, construction, enforcement and effect of the Agreement shall be governed by the laws of the State of Georgia.
9.4 All notices and consents required hereunder shall be in writing, signed by an authorized representative of the party accountable
therefor.
9S This Agreement including the Exhibits hereto, constitutes the entire agreement between RSG and CLIENT and supersedes and
merges all prior and contemporaneous representations, proposals and agreements, respecting the subject matter hereof.
9.6 Neither RSG nor CLIENT shall use the name of the other in publicity releases or advertising without the prior consent of the other,
provided, RSG is authorized to include CUENTs name and add ress as pa rt of a lisitng of RSG clients for distribution to prospective clients
or for reference purposes.'
9.7 The Finding bya court that any provision hereof is void or unenforceable shall not be deemed to affect adversely the validity of the
remaining provisions hereof.
9.8 The waiver by RSG of any breach by CLIENT shall not constitute a continuing waiver as to future or additional breaches.
IN WITNESS THEREOF, the parties have caused this Agreement to be executed, each acting under due and proper authority as set forth
below.
RISK SCIENCES GROUP, INC. City o6 Lubbock
%Signature
Printed Name
0s
Date
-14-
/ Client
Signature
B. C. McMinn, Mayon
Printed Name
Sep-temben 15, 1989
Date
STANDARD FEE SCI . 1LE
Unless otherwise set forth in this Agreement, RSG's compensation shall be based on the
following:
Consultant Hourly Billing Rates:
President
$190
Executive Staff
165
Director of Technical Operations
110
Senior Project Leaders
95
Project Leaders
90
Senior Consultants
85
Consultants
75
Administrative
40
Expenses Billed at Cost:
Communications and postage, travel, reproduction and printing.
Risk Sciences Group, Inc. makes actual monthly billing as time and
expenses are incurred.
-15-
EXHIBIT B.
ATTXCHMENT W.
SISDAT+ for City of Lubbock
Risk Management Information System
Features
Your SISDAT+ Risk Management Information System will be loaded and
updated with SISDAT location data, SISDAT claims data, and SISDAT
payments with Crawford & Company client codes.
The system will be accessible at your location via PC workstations
provided by you.
SISDAT location data will be loaded into the SISDAT+ Location
Database monthly.
SISDAT claims data will be loaded into the SISDAT+ Claims Database
daily.
SISDAT Payments will be loaded into the SISDAT+ Payments Database
daily.
Payment Detail captures individual checks issued from the loss fund
and individual payment adjustments, providing a detail audit trail
of claim payments and providing the ability to analyze payments by
payee and by type of payment.
ROLLBACK provides two simultaneous valuations of the claims
database - the current valuation and one prior valuation selected
by the user.
LOOKUP provides on-line claims inquiry via Claim Number, Claimant
Name, Location -Date, Social Security Number, and Branch -File.
Refer to enclosed SISDAT+ QUICK GUIDE FOR USERS.
SIGMA+ REPORTS provides menu driven reporting capability. Refer
to enclosed SISDAT+ QUICK GUIDE FOR USERS.
System Training and User Documentation is provided for three
persons at a three day training session in Atlanta, Georgia.
Account Servicing, consisting of telephone advice and counsel, is
provided to assist in the successful operation of your RMIS.
Additional training, consulting services, and special programming
are available upon request for additional fees in accordance with
FEE SCHEDULE at the end of this document.
-16-
SISDAT+ EDIT provides the ability to change NON -FINANCIAL, SISDAT
data and have changes reflected on the Crawford & Co. loss run.
Implementation Schedule
The system will be implemented before July 15, 1989.
Implementation Fee
Standard SISDAT+ System Generation $4,000
Including System Training and Documentation.
Communications Software $200
$200 per PC workstation -
Total Implementation Fee $4,200
Annual Operations Fee
Database Maintenance
$9,600
Monthly SISDAT Location Update
Daily SISDAT Claims Update
Daily SISDAT Payments Update
Software Maintenance
$3,600
Account Servicing
$4,800
Computer Services
$1,200
SISDAT claims
$100 per 1,000 SISDAT claims per month.
600 new -claims per year estimated.
0 existing SISDAT claims estimated.
Communication Charges
$2,400
$10.00 per hour.
20 hours per month estimated.
Total Estimated Year 1 Annual Operations Fee
$20,600
-17-
invoicing Procedure
An invoice for the full amount of the Implementation Fee will be
presented upon completion of System Training.
A monthly invoice will be presented for the Monthly Operations
Fees. Database Maintenance, Software Maintenance and Account
Servicing are billed at one -twelfth their annual fees. Additional
professional services requested and additional expenses will be
billed in accordance with the FEE SCHEDULE at the end of this
document. Computer Service fees are billed at $100 per 1,000
SISDAT claim per month based upon the actual number of claims in
the claims database. Communication charges are billed at $10.00
per hour based upon actual usage.
11
f
ATTACHMENT B:
SISDAT+ for City of Lubbock
Non SISDAT Carrier Interface
GAB Claims Data Tape Load
OBJECTIVE
A program to update the Claims database and transaction history
periodically from a loss history tape supplied by a claims
administrator, carrier or other source.
FEATURES
Appropriate data conversions will be made to the format of the data
to conform with SIGMA+ System reporting conventions and other
source data as appropriate.
Translation tables of coded fields will be built to so that common
coding schemes may be used (whe':e there are multiple sources of
data or user has specific coding requirements. User to establish
common coding requirements. RSG will provide consultative support
as required.
An CUMULATIVE claim tape (in IBM EBCDIC format, 9 track 1600 or
6350 bpi) will be used to update the claims database.
Selected verification reports will be produced following each
claims database update to verify accurate collection of financial
and major categorical information as well as to identify any claims
failing standard edits (invalid location code, coverage code, et
al). Unless otherwise requested, claims which fail standard edits
will still be entered into the database.
Transaction detail (month to month changes) for financial values,
location, coverage, and status will be maintained.
REQUIREMENTS
User to request administrator or carrier to send an IBM compatible
tape containing cumulative claims history to RSG's computer site
on a periodic basis.
A record layout and coding translation documentation must be sent
one time to the RSG account representative. Sample tape and data
fact sheet requests will be provided upon acceptance.
-19-
t
TIMEFRAME
Data may be loaded within 90 days of receipt of machine readable
tape and supporting documentation.
In operation, data will be updated within 14 days of tape receipt
unless otherwise requested or arranged.
IMPLEMENTATION FEE
Load Programming ($2,000 per source)
OPERATIONAL FEES
Database Maintenance
Computer Service Fees
-40-
$2,000
$400 per tape load
$2.00 per claim per year
c-
ATTACHMENT C:
SISDAT+ for City of Lubbock
Minimum Hardware Requirements & Class Schedule
HARDWARE:
IBM PC/XT, PC/AT, PS/2 FAMILY (OR COMPATIBLE)
10 megabyte hard disk
1 360K floppy disk drive
DOS 3.0 or higher
640K RAM
Clock/Calendar
Color or Monochrome Monitor (CGA, EGA', or VGA)
Parallel Printer Port
Serial Port
Hayes compatible 1200 or 2400 baud external modem
Installed Software
IBM's FTTERM Communications
CLASS SCHEDULE:
Jun
27
through
29
/
Tue
- Thu
Jul
24
through
26
/
Mon
- Wed
Aug
29
through
31
/
Tue
- Thu
Sep
19
through
21
/
Tue
- Thu
-21-
Resolution #3489
November 8, 1990
CRAWFORD & COMPANY
ADDENDUM #1
STATE OF TEXAS
COUNTY OF LUBBOCK
CONTRACT NO. 3628
PREPARED JULY 3, 1990
CLIENT CODE NO. 01277
CRAWFORD & COMPANY, hereinafter referred to as the "Servicing Company," and
CITY OF LUBBOCK, hereinafter referred to as the "Client," mutually agree to
the following amendment to the July 14, 1989 Claim Service Contract #3628.
1. Page 2, paragraph 3 is amended to read as follows:
Contractual Liability claims, Personal Injury Liability claims,
Employer's Liability claims, Occupational Disease claims,
Professional Liability claims, and subrogation investigation shall
be handled on a Time and Expense basis by the "Servicing Company" at
its then prevailing hourly rate and expense method of billing. All
claims services in Puerto Rico and the Virgin Islands shall be
provided by the "Servicing Company" on a Time and Expense basis at
its then prevailing hourly rate and expense method of billing.
2. All other provisions of the July 14, 1989 contract #3628 shall remain
unchanged.
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused
this addendum to be executed by the persons authorized to act in their
respective names.
DATED THIS 8th DAY OF November 019&190.
CITY OF LUBBOCK CRAWFORD & COMPAW
B Y : BY:
B. C. McMinn, Mayor
ATTEST:
Ranet a Boyd, City �Secre`tary
APPROVED AS TO CONTENT:
t
BY: Q= 944
Robert Massengale, Assistant
City Manager for Financial Services
APPROVED AS TO FORM:
BY: h may'
C. Ross, Jr., City Attorney
TITLE: Vice President
-2-
CRAWFORD & COMPANY
Resolution #3489
November 8, 1990
ADDENDUM #2
STATE OF TEXAS
is
COUNTY OF LUBBOCK
CONTRACT NO. 3628
PREPARED OCTOBER 1, 1990
CLIENT CODE NO. 01277
CRAWFORD b COMPANY, hereinafter referred to as the "Servicing Company," and
CITY OF LUBBOCK, hereinafter referred to as the "Client," mutually agree
to the following amendment to the July 14, 1989, Claim Service Contract
#3628.
1.
Page 1,
section (3) is amended to read as follows:
194
State Workers' Compensation Medical Only
claims @ $59.25 per claimant
= $
11,494.50
140
State Workers' Compensation Other Than
�Medical
Only claims @ $366.50 per claimant
Automobile Liability @
- $
51,310.00
claims 1203.75
per claimant
- $
14,670.00
158
General Liability claims @ $ 203.75 per
claimant
. $
32,192.50
$109,667.00
2. Page 1, last paragraph first sentence is amended to read as follows:
,'
The Client agrees to -pay the Servicing Company at the rate of
one -twelfth (1/12) of g109,667.00 per month ($9,138.92).
3. Page 2, immediately following paragraph 2, a new paragraph is added as
follows: X
Claims handled by the 'Servicing Company" with dates of accident
prior to the effective date of this contract shall be handled on a
time and expense basis.
4. Page 2, immediately following paragraph 5, a new paragraph is added as
follows:
Pre -hearings shall be handled by the "Servicing Company" at a flat
rate of $125.00 per hearing.
5. Page 3, Section I.A., is amended to read as follows:
I. THE "SERVICING COMPANY" AGREES:
® A. To review all `claim and/or loss reports with claims and/or
loss dates'incurred October 1,-1986, through July 13, 1989
in accordance with the "Client's" Claims Service Agreement
for all accident/occurrence lines of exposure or claims
and/or losses made during the term of this contract for
all claims made lines of exposure to the "Client."
-1-
All other provisioi of the July 14, 1989, contract 628 shall
remain unchanged.
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused
this addendum to be executed by the persons authorized to act in their
respective names.
DATED THIS 8th DAY OF November 11990.
CITY OF LUBBOCK
C
7
B. C. MrMinn, Mayor
ATTEST:
B .
Ranet a Boyci, City Secretar
APPROVED AS TO CONTENT:
By
Robert Massengale, As istant
City Manager for Financial Services
i
APPROVED AS TO FORM:
L --!2
BY: v
fin C. Ross, Jr., City At orney
-2-
CRAWFORD & COMP Y
BY:
%L�
1tik
TITLE: Vice President
CRAWFORD & COMPANY
Resolution No. 3790
January 9, 1992
Item #18
ADDENDUM #3
STATE OF TEXAS
COUNTY OF LUBBOCK
CONTRACT NO. 3628
PREPARED JULY 15, 1991
CLIENT CODE NO. 01277
CRAWFORD & COMPANY, hereinafter referred to as the "Servicing Company," and
CITY OF LUBBOCK, hereinafter referred to as the "Client," mutually agree
to the following amendment to the July 14, 1989, Claim Service Contract
#3628.
1. Page 1, section (3) is amended to read as follows:
For the period July 14, 1991 thru July 13, 1992:
137 State Workers Compensation Medical Only
claims @ $62.25 per claimant = $ 8,528.25
111 State Workers Compensation Other Than
Medical Only claims @ $690.50 per claimant = $ 76,645.50
(States of AK, CA, FL and TX)
51 Automobile Liability claims @ $220.00
per claimant = $ 11,220.00
69 General Liability claims @ $220.00 per
claimant = $ 15,180.00
$111,573.75
2. Page 1, last paragraph first sentence is amended to read as follows:
The "Client" agrees to pay the "Servicing Company" at the rate of
one -twelfth (1/12) of $111,573.75 per month ($9,297.81).
3. Page 2, immediately following paragraph 5, two new paragraphs are added
as follows:
Workers' Compensation Other Than Medical Only (All Other States)
claims shall be handled by the "Servicing Company" at a flat rate of
$393.25 per claimant.
Pre -hearings shall be handled by the "Servicing Company" at a flat
rate of $133.25 per hearing and paid as an allocated expense.
4. All other provisions of the July 14, 1989, contract # 3628 shall
remain unchanged.
-1-
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused
this addendum to be executed by the persons authorized to act in their
respective names.
DATED THIS 9th DAY OF January ,%XVXX 1992.
CITY OF LUBBOCK
BY: , C • -, c .40
B. C. McMinn, Mayor
ATTEST:
BY:
Ranette toyd, City Secreta
APPROVED AS TO CONTENT:
BY :QA�a-aa-�-. 4P-A,)
a. Robert Massengale, Assistant
City Manager for Financial Services
APPROVED AS TO FORM:
CRAWFORD & CO ANY
BY:�
TITLE: Vice President
BY: `
Donald G. Vandiver, Assistant
City Attorney
-2-
Augt ` 13, 1992
Ite. 26
CRAWFORD b COMPANY
ADDENDUM #4
STATE OF TEXAS CONTRACT NO. 3628
PREPARED AUGUST 4, 1992
COUNTY OF LUBBOCK CLIENT CODE NO. 01277
CRAWFORD 3 COMPANY, hereinafter referred to as the "Servicing Company," and
CITY OF LUBBOCK, hereinafter referred to as the "Client," mutually agree to
the following amendment to the July 14, 1989, Claim Service Contract 03628.
1. Page 1, section (3) is amended to read as follows:
For the period July 14, 1992 through July 13, 1993:
200 State Workers' Compensation Medical Only
claims @ $64.75 per claimant
100 State Workers' Compensation Other Than
Medical Only claims @ $690.50 per
claimant (States of AK, CA, FL, and TX)
78 Automobile Liability claims @ $229.00
per claimant
222 General Liability claims @ $229.00 per
claimant
Total
- $ 12,950.00
- $ 69,050.00
- $ 17,862.00
- S 50,838.00
$150,700.00
2. Page 1, last paragraph first sentence is amended to read as follows:
The "Client" agrees to pay the "Servicing Company" at the rate of one -
twelfth (1/12) of $150,700.00 per month ($12,558.33).
3. All other provisions and amendments of the July 14, 1989 contract 03628
shall remain unchanged.
IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused this
addendum to be executed by the persons authorized to act in their respective
es.
DATED tW1 13tIf DAY
CI Y L BB CRAWFORD b COMP
B BY • t
avi R. tangs on Mayor
TITLE: Vice President
ATTEST:
Ranet Boyd, City Secretatfy
APPROV AS TO CONTENT:
B Y : -
Robert Massengale, Assistant
City Manager for Financial Services
APPROVED AS TO FORM:
Linda L. Chama es, Assistant
City Attorney
K
CRAWFORD & COMPANY
ADDENDUM #5
STATE OF TEXAS CONTRACT NO. 3628
PREPARED AUGUST 4, 1992
COUNTY OF LUBBOCK CLIENT CODE NO. 01277
CRAWFORD & COMPANY, hereinafter referred to as the "Servicing Company,"
and CITY OF LUBBOCK, hereinafter referred to as the "Client,' mutually
agree to the following amendment to the July 14, 1989, Claim Service
Contract /3628.
1. Page 1, section (3) is amendded o read as follows:-21 �
For the period July 14, 199,1 through July 13, 199;:
220 State Workers' Compensation Medical Only
claims @ $68.00 per claimant = $ 14,960.00
69 State Workers' Compensation Other Than
Medical Only claims @ $690.50 per claimant
(States of AK, CA, FL, and TX) = $ 47,644.50
40 Automobile Liability claims @ $240.00
per claimant = $ 9,600.00
164 General Liability claims @ $240.00 per
claimant $ 39,360.00
40 SISDAT FEES @ $15.00 per fee = $ 600.00
$112,164.50
==aa=��aaaa�a
2. Page 1, last paragraph first sentence is amended to read as
follows:
The "Client" agrees to pay the "Servicing Company" at the rate of
one -twelfth (1/12) of $112,164.50 per month ($9,347.04).
3. All other provisions and amendments of the July 14, 1989 contract
#3628 shall remain unchanged.
IN WITNESS WHEREOF,
this addendum to be
respective names.
DATED thU 9t
ITY
. gangs
ATTEST:
the 'Servicing Company' and the 'Client' have caused
executed by the persons authorized to act in their
ER, 1993.
BY:
Betty JOhnson, C4ty Secretary
APPROVED AS TO CONTENT:
BY. -
Ro er Has
senga e, Assist t
ity Manager for Financial S rvices
APPROVED AS TO FORM:rr---' 9k-7
U
DdlyaTd G. Vaud i ver, Ass i stan
City Attorney
CRAWFORD & COMPANY
BY: ".xa�jy
d_ c2AW L4-.
TITLE: Vice President