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HomeMy WebLinkAboutResolution - 5597 - Contract - Crawford & Company - Claims Adjusting Services - 08_14_1997RESOLUTION NO.5597 Item #49 August 14, 1997 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 a contract with Crawford and Company to perform Claims Adjusting Services for the City of Lubbock. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 14th day of August , 1997. Ed/. ATTEST: Ka"Darnell, City Secretary APPROVED AS TO CONTENT: Mary Andre , Managing Director of Human Resources APPROVED AS TO FORM: ALWIk/CRAWFOR.RES ccdocs/August 7, 1997 AUG-06-97 WED 03:26 PM CRAWFORD RMS FAX NO. 2149058622 CRAWFORD & COMPANY CLAIM SERVICE CONTRACT P. 02 RESOLUTION NO.5597 Item #49 August 14, 1997 TMS AGREEMENT: made and mmtered into effective this meaty -fin day of August, 1997. between CRAWFORD & COMPANY, s corporation of the State of Georgia, as general partner of Crawford & Company, L.P., a limited pa*tcrship of the State of Texas, hereinafter referred to as the "SeMcing C',on y % and CrTY OF LUBBOCK, a gavemmental entity of the State of Texar, hereinafter refe a*ed to as -Clienr. WTINIrSSM THAT WHEREAS, the "SeMcing Company operates a business known as CRAWFORD & COMPANY, CLatims Adjusters, and WHEREAS, The "Ctiere desires to employ the "Servicing Company" as its Claims Adjusters, to service its claims for its self-fnsmaed exposures as stated in Paragraph (3) hereundar, up to its self -insured retention. NOW THEREFORE, the "Servicing Company" and the "Client" mutually agee as follows: (1) The general agreemcat pages, to which this is aihmched, are made a part hereof as though fully repeated and set out herein. (2) This contract covers Clain Scavice for the "Client" in the U.S.A. (3) The "Climf shall pay the "Servicing CompW fees as follows: 150 Stagy Workers' Compensation Mcacal Only claims, @ W,00 per claimant s S 10,200.00 100 State Wad=' Compensation Indemnity claims A W5.00 per claimant � S 6S,SOO.Ot) 51 Automobile Liability claims @ $240.00 per claimant = $12,240.00 257 C=eral Liability claims @ $240.00 per claimant = S 61,690.00 The "Client" agrees to pay the "Semdng Calm" at the we of one4welf3h (IA 2) of S149,620.00 per nxmth ($12,468.33). At the fast of each monthly period dining the term of this contract, monthly billilgs in said wnowd will be submitted to the "Clive by the "Servicing Company" and such billings will be paid by the -Client" to time "Servicing Company' wifn forth -five (45) days of Bach billing. Twelve months after the artmaet term, them shall be a final accounting as to the acnnl number of claimants handled by the "Servicing Company" and the "Seivicmg Company" will be entitled to =nprnsation at the above flat rates for each claimant in excess of the above numbers. LZxwise. the "Client" shall be entitled to a reftlud 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 "Clkxf', the "Servicing CanVW will make such nftwd within ninety (90) clays 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 gay the "Servicing Company" within ninety (90) days from the date of the "Servicing Company's" billing for such additional SUMS. 08-06-97 16:07 RECEIVED FROM:2149058522 P.02 AU-05-97 TUE 03:08 PH CRAWFORD RMS FAX NO. 2149058622 P, 03 Any single accident or occurrence resulting in tea 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 Cornpany' at its then prevailing hourly rite and eapeuse method or billing. Contractual Liability claims, Personal Injury Liability claims, Employer's Liability claims, Occupational Disease claims, and subrogation investigation skull be handled on a Time and Expanse basis by the Servicing Company" at Its then prevailing hourly rate and cxVcnse 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 rates and expense method of billing. Billings for Time and Expense claims will be submitted to the "Client" by the "Servicing Company" when such elaitns are concluded, or If any such claims have not bem concluded and have adulated billing amounts of Two Hundred Dollars ($200) or more, the "Servicing Company" will submit inteiim time and expense blllittgs to the "Client" within six (6) n=ths from the date of assignmant of such claims to the "Servicing Company". Subsequent intarira billings will be submitted thereafter only when any such claim bas aomraulated a billing amount of Two Hundred Dollars ($200) or more. Claimso intcrim billed shall contlnne to be handled by the "Servicing Company" after interior billing on a time and expense basis at the''Servicing Company's" then prevailing hourly raze 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 tblrty (30) days of billing, For all Time and Expense lines of coverage, SISDAT charges shall be waived. Ia addition to the compensation of the "Servicing Company" set forth herein, any taxes, a=pt 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 Cortlpazry", 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 (Pedccrdl, Provincial, territorial or local) or any domestic (Federal, State or local) ulca, use, personal property, ad valorem or other tax shall be for the account of the "Client". The "Servicing Company" shall bill the "CIient" and the "Client" shall promptly pay the "Savicing Company" all such takes in accordance with the provisions of the applicable law and regd-Wons concerning collection of such taxz and the "Servicing Company" shall remit such Umes to the appropriate taxing authority. The fws of the "SeMcing Company" apply only to claims handling Mthin the "Client's" self-itusuraace retention. Once the "Client's" self-insur=ee retention(s) either spoclfrc or = al agMgate, bawhave been exceeded, ibe "Servicing Company" will be considered to have earned its fa(s) as set forth under this contract TIDE *SERVICING CONOAN1"' 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/ocxmxt= lines of eatpostue or dairus andlor losses made during the term of this con"a for all claims made lines of o�povzc, involving the hcrcinabovc stated mosures to the "Cliere. B. To investigate, wlth reasonable diligence, all rcpartcd 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". The settlement authority of the "Servicing Company" shall be described in cdu'blt "B" AU&-05-97 TUE 03:09 PM CRAWFORD RMS FAX NO. 2149058622 P. 04 D. To investigate, adjust, senle or resist all such losses and/or claims as defined in Section LA.. in excess of the discretionary settlement authority limit of the "Servicing Company" Kith specific prior approval of the "Client . E. To furnish all claim forms necessary for proper claims administration. F. To establish claim and/or loss /lies 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 a= 4 gathered or maintained by "Servicing Company" in discharging Its obligations to City tender this agreement may well be considered public records and accordingly such public records may not be destroyed (V.A.P.C. Sec. 37.10). "Servicing Congwy" agrees to care for and return all of Its records umintained by it in the discharge of this contract to City forproper storage. Tlrc policy dcscrnbed in Exhibit "A" shall be followed by "Servicing Company" as to when a record, report or other information shall be returned to City. "Servicing Company" fir tmdcxstands that the City is subject to the provisions of the Texas Public Information Act (Chapter 552) Texas Govemnnent Code and that as such any or all doctiments created, gathered or maintained by "Servicing CouTany" in discharging its obligations to City may also be subject to T=s Public information Act Chapter 552, a To furnish the "Client" with monthly Loss Kun, monthly Loss Fund Activity and quarterly Loss Cause Analysis claim statistical Information from the "Servicing Compsny's" SlfS DAT Department. The "Client" shall designate the breaks for the tom! and subtotals for each division, region, etc. In the event the "Clienf' desires a natisdcal report of its own desi= or additional =rts from SISDAT, a separate quotation forthe additional cost Rill be submitted to the "Client" for approval. The statical information will be furnished to the "Client" ws one itardcapy and one microfiche. L To maintain adcquatc G=cral Liability, Aidomobilc Liability, Workers' Compcttsatlon, Fidelity Hond, and Errors and Omissions insurance snvemSe 1. To establish an account (rcguLw demand deposit account or minimum Wance controlled disbursement accotn tJ hereinafter referred to as the "Loss F urid Account", with a bank In Atlanta, Georgia of the choice of the "Servicing Company" for the purpose ofpaying claims and/or losses and associated allocated loss Wense 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, touts, inieutioaal torts or other negligence on the part of the "Scmicing Company" and/or its employees unless the complained of aeons of the "Servicing CompwV" were taken at the specific direction of'the "Client". L. To report directly to the: "Clice and to have no responsibility for reporting to or placing any specific excess hisurer(s) or a—ual aggregate excess insurcr(s) on notice of any claims) that islam or may be required to be reported or notice given to such excess insurers) under any such excess izisuzance policies available to the "Client". The "Servicing Comparry" will continue to handle claims once the "Client's self-insut;mce retention, either specific or annual aggregate, has been exetoded if mutmclly agreed to by the "Client" and excess insurer(s), if lbero is no controversy as to coverage, liability, and damages between the "Client" and its excess insurer(s). if there is no controversy as to coverage, liability, and damages between the "Client" and its excess ininircr(s). Such farther claims handling will be provided by the "Servicing Company" at Time and AUG-05-97 TUE 03:09 PM CRAWFORD RMS FAX N0, 2149058622 P105 F-V=c 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" T'mu and Expense service bills. II. THE "CLIENT" AGREES: A. To mrukt finds available Drat the `Scs vic ing Company„ may draw from at any time and from time to time for claim and/or loss payments and for associated allocated c..Vensc withia the discretionary scttlm= authority limit of the "Servicing Company" and for claim and/or loss payments in excess of thn discretionary settlement icthority limit of the "Servicing Company" as approved by "Client". (1) On or before the cf%ctive date of this contrail, the "Client" will provide an initial impiest deposit to the "Servtctng Company" In an amount equh-d1ent to five (5) banking days of average anticipated claim and/or loss and associated allocated expense payments or ten thousand dollars (S10,040), whichever is greater, to be mah ta3ncd by the "Servicing Company" as a loss fiord deposit, heminafter refound to as the "Deposit", forpaymem of claims and/or losses and associated allocated expense from the "Servicing Company's" "Loss Fund ACcome. (2) Reimbursement to the "Loss Fund Accoure will be made by a daily d mct debit executed by the "Savt - Company's" back against the "Client's" designated bards aucouca for deposit into the "Loss Fund Account" at the "Servicing Company's" bank. Zile amount of the daily direct debit wtli be limited to the amount computed by the "Servicing Company" who will instruct Its bank as to the appropriate emotmt The ainount of the daily ditto debit will be determined by the "Servicing Company" computittg the average &flm and/rnr loss and a_ccociated allocated eVense payments made daily for the "Client". Each day the same average amount will be deposited into the "Servicing Company's" "Less Fund Accounr via a direct debit drawn against the "Client's" designated bank account "Client span monitor the daily direct debits and specifically reservers the right to refuse any direct deposit that excccds amounts as ddiinod herein. At the end of each month, beginuing with the end of the first month from ft cgectivc date of this contact� the "Servicing Compaary" will compare the total deposits to the "Loss Fund Account", including all direct debits resulting from the average daily budgeted amount and any am mit as speafied in Section 11A (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 as adjustment direct debit mill be made, so the monthly deposits arc cqual to the totals shown on such SISDAT reports which post payments based on checks. issued. (3) The "Servicing Company" will eondtui a quarterly analysis of the adequacy of the "Deposit" iu the "Servicing Company's" "Loss Fund Acarune' 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 excecds the then existing "Deposit% then the "Servicing Company" will authorize its bank to initiate sa adjustmcat direct debit in the amount necessary to bring the "Deposit" to the level stipulated in Section II.A. (1) above. The "Servicing Company" will adjust the average daily direct debit to the revised average daily amount in accordance with Section MA. (2) Wxwe. (4) The "Servicing Company" will notify the "Client". via telephone. whenever any single claim and/or loss payment or associated allocated e.Veuse paymcrrt is AUG=05-97 TUE 03;10 PM CRAWFORD RMS FAX NO. 2149058622 P.06 made for twenty-five thousand dollars (S25,000) or more, and these amounts will be included in the direct debit along with the daily budgeted amount upon approval of "Client". The "Servicing Company" will not consider such amounts in arriving at he daily budgeted direct debits and will not consider such amounts in computing the necessary "Deposit" required of the "Client" as set forth in Section MA (3). (5) An appropriate letter; hereinafter referred to as the "Le= of Authority", will be provWd, wtthln fiftcm (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 CompanyT bank In addition, the "Servickig Company" will be furnished by the "Client" with such aceousat documeutadon with respect to the "boss Fund Acooum" that may be mquired by the "Servicing Company's" bank and the "Serviclna Company" ,respectively. (6) The "Servicing Company" shall be and hereby is Indemnified by the "Client", to the extent allowed by law, from and against any and of losses, damages, suits, actions, proceedings, and expenses, including, without limitation, all attorneys' fees, incurred or suffered by the "Servicing Company" in connection with (1) 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 otter 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 tosses, damages, suits, actions, proceedings and expenses resulting from any negligent, tonious, fraudulent, or dishonest actions by the "Servicing Company", Its o$tcers, agents or employees. (7); The "Servicing Company" may draw and awhorim chocks, drafts, and other items on the "Loss Fund Account" only If the "Servicing Company" dctcrmines that it bas sufficient funds in the "Loss fund Accounf' to cove such checks, drafts, and other Items. (a) The "Servicing Company' may ten ninate the "Loss Fund Account" at any time, in its sole discretion, with or without cause. (9) As security for the due and punctual payment and performance of all indebtedness and obligations of the "ClicW to the "Servicing Company", whether now existing or hereafter arising, however evidenced, whether direct or indirw absolute or contingent, individually or jointly with any other person. and including without limitation, all indebtedness, payments, reimbursement of mds and other moneys owed by the "Cliot i" to the "Sunicing Company' pursuant to this contract (the "Secured Obligations"), the "Client" hemby pledges, assigns, transfers, sets over; Convm- and dchvcrs to the "Servicing Company", a security Interest in all right, title, and interest of tho "Client" in and to the moneys from time to time on deposit in the "Loss Fund Account" including, without limitation, the "Deposit" (the "Funds"). The "Client" acknowledges and a&= that, so long as this contract remains in force and effect, the "Funds" shall constitute cash collateral as that tam is defined by Section 363(a) of the Banlauptcy Code, 11 U.S.C. Section 363(a). The "Client" further acknowledges and agrees that the foregoing security futm= is perfected in favor of the "Servicing Company" by the "Servicing Company's" control Over the aaoouats into which the "Funds" are deposited and, lot the altar.-dvc, by yosscssion of the "Funds" by the "Smicing Campzny'i" bank where the AUG=05-97 TUE 03:11 PM CRAWFORD RMS FAX NO. 2149058622 P.07 "Loss Fund Account" is established, who, for purposes of the security interest, shall be and is hereby deemed to be the Bailee of the "Scyicing Company" within the meaning of Sccdoa 9-305 of the Uniform Comurrrcial Code. The "Client" hereby authorized the "Servicing Company" at any time, and regardless of whether there erdsts or is continuing an event of default under this contract, to apply and setoff without notice and Indebtedness due or to become due to the "Servicing Company' from the "Client", including, Without limiratioA 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 allsc. (' 10) The "Client" also weer to provide the "SwAc-ing Company", within Me= (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 Conhpany" to ensure that (1) 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 uses as set forth in this contract,, and (ii) service fees = paid as set forth in this coutract Such financial security shall be equal in amount to two (2) months' and4dtcd payments of claims and/or losses ad associated allocated expenses, or fifty thousand dollars (S50,000), whichever is greater. The "Servicing Company" will conduct a quarttrly analysis of the "Loss Fund Account" activity based upon the three (3) most current months of "L.cus Find Ac=mt" activity. if the analysis determines that the "Loss Fund Account" activity warrants En increase In the required financial seeuriry hereunder, the "Servicing Company' will notify die "Client" of the mquucd inc== end the "Client." coil) provide: such h=case to the "Servicing Company" within thirty (30) days of such notice. (11). The "Servicing CoroMy" will issue checks front the "toss )Fund Acoormt" for amour s in excess of the "Client's" atmual aggregate self-insurance retention unless the "Client" specifically instructs the "Servicing Com' to the contrary so long as the "Loss Fund Acc* W." balance is adequate to 3ceoarrmo4ate such amounts of necessary additional deposits are made by the "Client" to the "Loss Fund Account" in payment of any amourd In excess of the "Client's" specific per elaitmant or per occurrence self-lnsurance retention, as Memiftred by the "Client" to the "Servicing Company', until such time is the "Client" transfers funds for the full amount of such payrneu into the "Loss Fund Accohuht". The "Servicing Company" asses and has no responsibility or obligation to recover from any of the "Client's" excess insuser(s) any amounts represented by checks issued from tho "Loss Fund Account" B. To pay to the "Savhcing Company" the claim smice fee as presented In this contract. C. To pay to the "Servicing Company" . in addition to the claim =vlcc fee as prescribed ha this contract, as its then prevailing hourly rate and expense metl+od of billing for all claims service, for all claims and/or losses previously handled or attempted to be lbandled by any person, firm or corporation ar the "Client" before being assigned to the "Servicing Company". D. To pay all allocaed loss expense, as defined hexcla, in addition to the claim service fce to be paid to the "Servicing Company" as prescribed in this contract- E. To allow "Servicing Company" to control, handle and seale all claims following within its d4creeionary setdoment authority. 'Ira "Socking Company" m-W cxv7cise its AUG=05-97 TUE 03:11 PM CRAWFORD RMS FAX NO. 2149058622 P.08 Judgment in conneciou with the above described audu ity provided that the "Servicing Company" undertakes the following actions: (1) Kccp the City MY Informed as to the nature and status of said daim or claims. (2) Inform, prior to setllanau, City of the settlement value of the claim or claims or claims as described by "Servicing Company". F. To indMwi£y, defend, and hold harmless the "Servicing Company" an Wor its tiaployees, to the extent allowed by law, in tine evennt of an adverse r=X or jhadgmz nt when the "Servicing Company" could have settled the claim and/or loss within its discretionary settlement authority limit, If the "Servicing Company" is not guilry of error, other than error In judgment, oudssior4 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" anei/or its employees, to the extant allowed by law, in the event the "Service Company", acing at the specific direction of the "Client", becomes liable to any third parties. H. To indemn4fy, dcfcnd, and hold harmless the "Servicing Company" and/or its employees, to the anent allowed by law, If the "Servicing Company or any of its employees arc named as a defendant in any action (1) where the plainriff's cause of action involved a claim hereunder and (2) where there are no allegations of errors, omissions, torts, Intentional torts. or other negligence on the part of the "Servicing Company". M. THE "SERVICING COMPANY" AND THE "C1.MNr MUTUALLY AG12Fi AS FOLLOWS: A. 'Ile term of this contract is cDnd mous from its effective date for one (1) year renewable annually for up to two additional years- However~ the claim service fees shall be subject to negotiation at each twelve (12) month anniversary date. The contract eau be terminated by either the "Servicb* Company" or the "Client" with or iYWx ut cause and for any reason %hasocrver 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 ternunation of fts contract, such handling not to result in any expense or redaction 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", inchuftg allocated claim and/or loss expense, shall remain available to the "Servicing Company" to liquidate such claims an dlor losses. C. The flat rate per claimant claim service fees reflecrd In this contract include the provision of claim services by the "Servicing Company" for the "Client" for a period of two (2) years from date of accidem/occurrezce for all accident/occurrence lines of exposure and two (2) years from the date claim is made for all claims made lines of eacposuic. Any claim(s) not included within such time pammetem shall be handled to a conclusion by the "Servicing Company" for 1he "Client" from that date forward at the specified additional flat rate fee per claimant for each additional two year period. The 0=-mto loll olmisc cormcmion cc311 be at $264 after the fimt two (2) years of claim handling. AUCr-05-97 TUE 03:12 Phi CRAWFORD RMS FAX NO. 2149058622 P.09 D. This contract does not include any Risk Control Services, activities, functions and/or respormbilitics whatsoever and specifically excludes and Risk Control Services, activities, functions and/or responsibilities E, Allocated Loss F-vc se small mean and indude all expense items such as attorneys' foes, commercial photographers' fees, experts' fees (i.e., engineers, physicians, chemists, etc.), fees for independent medical exzminations, rehab"itation fees, trialYhearaag atteudance fees, witnesses' travel expense, extraordinary claim investigation and/or travel expense incurred by the "Servicing Company" at the request of the "Client", court reports' fres, transcript fees, the cost of obtaining public records, witness fees, auto appraisal or property appraisal fees, all outside expense items, and any other itmilar 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 sutus of individual claims and/or loss files, other than as provided In Sections T.F., T. G., and T.H., are required from the "Servicing Company" runless the reserve amount on any given claim and/or loss excccdss the discretionary settlement authority limit of the "Smricing Company", if a given claim and/or loss reserve amount exceeds the d+ecretimary settlement authority Unit of the "Senicing Company" to the "Clienf' as may be mutually agreed to on an individual chi m and/or loss We 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 or during such time after the expiration or termination of this contract as may be necessary to perform an audit felon 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", tben In such event the "Ciicut" shall be present to this "Servicing Company" a detailed copy of said audit showing the basis of such alleged overpayment and the "Servicing Con4my" shall have forth -five (45) days to review slid detailed audit. In the event the "Servicing Company" disputes the detailed audit presented, the parties hereto ogee to meet and confer to resolve any such disputes H. in the event the the "Servicing Company" contends that it has been underpaid by the "Client" in aeeordance with the terals of this contract, It shall presetrt 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 dctuled statement. In the evert the "Client" dislrrttes the detailed statemcnt prc=tcd, the panics hereto agree to meet and confer to resolve any such dispute. 1. Both parties agree that the services to be paf'ormed under this agreement require good, sufficient and timely communications between the "Servicing Company" and the "Client" and to this and both parties agree to give their full attention to this undertaking. ). The "Clienf' retains full authority to select legal defense attorneys of the "Client's" choosing, K. This contract is made and entered into in Lubbock County, Teas, and accordingly the lams of the State of Texas shall govern this Contract and the int=prc Cation of samc. L. Venue upon any dispute of this contract shall be In Lubbock County, Texas• IN WTINESS WHEREOF, cite "Servicing Company" and rho "Cliere bave caused this contract to be executed by the persons authorized to act in their rrsp=&c names. 8 AUG-05-97 TUE 03:12 PM CRAWFORD RMS FAX NO. 2149058622 P.10 DATED THIS t 4rh DAY OF-- n„Qu r r 1997 CITY OF LUBBOCK CRAWFORD & COMPANY, AS GENERAL PARTNER OF l CRAWFORD & COMPANY, L.P. BY. BY: -A "47 / r President l BY TO BY: / Y,v vv 1 v 11-IW Managing Di for of Human R murcas 9 AUG=05-97 TUE 03:13 PH CRAWFORD RMS FAX NO. 2149058622 P,11 EXHIBIT A ME l M)MON AND DESTRUCTION POLICY LTAETUN FILES: Destroy five (5) years after Applicable statute of limitations have sapim. Excebtions: a nh&- retain until expiration of appellate process. Then destacy b. Mental Incompetenu - retain indefinitely. C. leant Mmor) Claims - retain until bfwu rraches majority plus applicable statute of limitations plus five (5) years. FIRST PART' CLAIMS. SLJ 9X- iAT10N/ARBITRATION. INCiDM REPORTS, AND 9=0- LOSSES: Destroy five (5) years after tile dosing xc tion4: a. &- sL- rennin until expiration of appellate prods. Then destroy. b. Prevailing Statute Precludes Destruction in five (5) years, WORKERS' COMPENSATION CLAIMS: Medical Only Claims Excluding Occupational Disc= CLdms; Destroy sh. (6) months after applicable state of limitaSons have expired. E,cceotiow. a. Prevailing Statute Precludes Destruction in six (6) miontlts. Mg =n,Medicat Ontj ClaimfExeluuding Occumitional Disease Clahns: Destroy one (1) year after applicable statute of I=hations have expired. Exoevtions; a. l+onnal or Informal Hearing Level Claims - retain =0 expirations of appellate pmcess. Then destroy- b. Prevailing Statute Precludes Destruction in one (1) year, QzMagortd Disease Claims: Destroy four (4) years after applicable statute of limitations have expired Ex�aiions t3. Formal gr Infonnnl Hearing Level Claims - retain until m-piration of appellate process. Then destrey- b. Prevailing Statute Precludes Destruction In four (4) yeas. 10 'AUG-05-97 TUE 03:13 PM CRAWFORD RMS FAX NO, 2149058622 P.12 EXRIBr r ~$" The "Servicing Company's" seWemeott amhorlty sbail be limitod to %bat a ftrity Vwted to it by the Risk Ni mutment Coordicator on a cl aim by claim basis. The foregoing ghali in no manner limit the ability of the "Servicing Coinpaay" ragrding the following: 1. to make sealement ttoomtrtcmfations to the City of Lubbock-; 2. to llmlt"Servicing Company'se' ability to make periodic payments for expenses in comxecdon with the defense of a claim as provided by this agrcemot; 3. to make payments in accordance with the settlemem of workers' oom =cation claims as provided by the laws of the State of Texas. 11