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Home My WebLink About16459 ORD - 08/12/1981is ;08/O4/81;2nd AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH GALLAGHER BASSETT INSURANCE SERVICES, A DIVI- SION OF ARTHUR J. GALLAGHER & CO., BEGINNING AUGUST 30, 1981, ON A FLAT FEE BASIS; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to execute a contract with Gallagher Bassett Insurance Services, a division of Arthur J. Gallagher & Co. beginning August 30, 1981, on a flat annual fee basis, a substantial copy of which contract is attached hereto and made a part hereof, marked Exhibit "A". SECTION 2. The necessity to execute a contract for claims hand- ling service to benefit the City and the Citizens of Corpus Christi creates an imperative public necesssi'ty requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor, or Council members, having declared such necessity to exist, having requested the suspension of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the day of August, 1981. ATTEST: y Secretary APPROVED: 'DAY OF AUGUST, 1981 Jruce Aycock, Ci Attorney THE C Y OF CORPUS CHRISTI, TEXAS MICROFILMED 16159 SEP 2 71994 AGREEMENT FOR SERVICES THIS AGREEMENT is made this 30th day of August, 1981, by and between the CITY OF CORPUS CHRISTI, TEXAS, hereinafter referred to as "EMPLOYER," and GALLAGHER BASSETT INSURANCE SERVICE, a division of ARTHUR J. GALLAGHER & CO., an Illinois corporation, authorized to do businesss within'the State of TEXAS, hereinafter referred to as "SERVICE AGENT.° I. TERM -This-agreement shall take effect on August 30, 1981 and shall continue -in effect for one year after its effective date, after which date this Agreement -shall continue in effect until cancelled by either Party as herein provided. II. CANCELLATION This Agreement -may -be cancelled -at any -anniversary by either Party giving -the -other written -notice of cancellation thirty (30) days prior to • -such anniversary -date.- -III. COMPENSATION- -- EMPLOYER-shall pay -SERVICE -AGENT -for services rendered herein at an annual -rate -of TWELVE THOUSAND EIGHT HUNDRED -DOLLARS ($12,800.00), which sum -shall be compensation for handling a maximum of three hundred (300) claims_per year. Any claims in excess of three hundred (300) claims per. year of this contract shall be compensated at the rate of TWENTY-TWO AND 5,0/100 DOLLARS ($22.50) per-hour-plusexpenses. SERVICE AGENT agrees to notify -EMPLOYER in-writingofany increase in service fee sixty (60) days prior to each anniversary.` -EMPLOYER-shall also pay SERVICE AGENT for electronic data processing service -at an annual fee of TWO THOUSAND DOLLARS ($2,000.00). All service fees herein shall be paid monthly, in twelve equal install- • meats, as services are rendered. IV. OBLIGATIONS SERVICE AGENT will service the self-insurance plan of the EMPLOYER in full compliance_ with all applicable laws, ordinances, rules and regulations 4-1<A471" governing the 'administration of self-insurance; and SERVICE AGENT will'act as the representative of the EMPLOYER in all matters related to such admin- istration and will perform fully all the below listed functions: A. CLAIMS: 1. Complete handling of all loss adjustments, investigatiods and settlements falling within the EMPLOYER'S self-insured retention. 2. Maintain a claim file for each reported claim; submit monthly experience reports in the form the EMPLOYER . requires; provide complete accounting for the program which at all times is subject to review by the EMPLOYER. 3: -Recommend claim reserves and provide a continuous review and -updating of these to reflect changes. 4. .Coordinate investigations on litigated claims with attorneys approved by the EMPLOYER and -with adjusters and attorneys of the_excess insurance carrier as required. 5. To obtain=approval from responsible EMPLOYER personnel before making any -settlement -on any claim and to furnish precautionary -reports -on all -serious claims. 6. Be-available.to tnnsult with the EMPLOYER on any insurance -matter and-to-make-available_to the Risk Manager the expertise and experience -o -f SERVICE AGENT'S staff of professionals to assist him in achieving a successful self-insurance program. 7. .All sizable -and -unusual claims will be reviewed by SERVICE AGENT'S internal legal staff at no additional cost to the EMPLOYER. 8. Provide all necessary personnel to perform the services agreed upon here-tn: -8. LOSS PREVENTIONz Therewill be no toss Prevention services furnished by the SERVICE AGENT. V. CONSIDERATION The promises made and the obligations assumed by each Party to this Agreement are made and assumed in consideration of the promises made and the obligations assumed by the other Party to this Agreement. The EMPLOYER is making this Agreement specifically with the SERVICE AGENT and that same is intended to be a personal service Agreement. SERVICE AGENT shall not assign this Agreement or any responsibilities pursuant to said Agreement without the express consent of the EMPLOYER. The Parties hereto, may, by mutual written agreement, change the scope of services or the amount of compensation set forth hereinabove in this agreement. VI. EQUAL OPPORTUNITY CLAUSE In consideration with the execution of this Agreement, the EMPLOYER and the -SERVICE AGENT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The EMPLOYER and SERVICE AGENT shall take affirmative actions to insure that applicants are employed and that employees are treated fairly during their employment without regard to race, religion, color, sex or national origin. Such actions shall include, but not be -limited to, the following: employment, upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff, or termination; rates,of pay, or other forms of compensation; and selection for training, includtng apprenticeship. SIGNATURES By these -signatures, the Parties agree to all the terms, conditions and provisions of this Agreement. APPROVED: - /0 AY OF , 1981: J. BRUCE AYCOCK CITY ATTORNEY By: CITY OF CORPUS CHRISTI, TEXAS By: R. Marvin Townsend, City Manager GALLAGHER BASSETT INSURANCE SERVICE DIVISION OF ARTHUR J. GALLAGHER & CO. Corpus Christi, Texas 1981 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings;-I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, MAYO Council Members THE CI OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky 16459