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HomeMy WebLinkAboutRes 53-83 12/06/1983 ':&¡¡ RESOLUTION NO. 53-83 A RESOLUTION TO APPROVE AND AUTHORIZE AN AGREEMENT WITH GALLAGHER BASSETT INSURAN£E SERVICES FOR THE ADMINISTRATION OF A SELF-INSURANCE PROGRAM IN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS WHEREAS, on the 16th day of August, 1983, the Village of Mount Prospect, through its corporate authorities, did adopt Resolution No. 34-83, determining to assume a self-insurance program within the Village to take effect at 12:01 A.M. on 'January 1, 1984, with respect to property and casualty claims coverage; and WHEREAS, the insurance administration firm of Gallagher Bassett, a division of Arthur J. Gallagher & Company of Rolling Meadows, Illinois, has submitted a proposal to the Village of Mount Prospect to administer the self- insurance program, as set forth and contained in an Agreement for Services, a copy of which is attached hereto and hereby made a part hereof as reference; and WHEREAS, it is deemed to be in the best interests of the Village of Mount Prospect to enter into said Agreement for Services with Gallagher Bassett to provide the Village of Mount Prospect with administration services with respect to its self-insurance program for property, casualty and workers' compensation. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, . ILLINOIS: SECTION ONE: The Agreement for Services between Gallagher Bassett and the Village of Mount Prospect for administering the self-insurance program, as attached hereto, is hereby approved. . SECTION TWO: The Mayor is hereby authorized and directed to sign and the Village Clerk to attest her signature to the Agreement for Services with Gallagher Bassett. SECTION THREE: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Arthur, Farley, Floros, Murauskis, Van Geem, Wattenberg NAYS: None ABSENT: None PASSED and APPROVED this ~,th day of December , 1983. CL~é{{~ )I ~~-' Mayor j ADDENDUM #1 TO AGREEMENT FOR SERVICES BETWEEN VILLAGE OF MOUNT PROSPECT AND GALLAGHER BASSETT INSURANCE SERVICE, A DIVISION OF ARTHUR J. GALLAGHER & CO. PERIOD OF AGREEMENT: January 1, 1984 - continuous DATE OF CHANGE: January 1, 1985 It is hereby noted and agreed that Item III (Compensation) of this Agreement is amended to read: "EMPLOYER sha 11 pay SERV I CE AGENT for se rv ices rendered here in the annua1 sum of TWENTY-FIVE THOUSAND SIX HUNDRED DOLLARS ($25,600.00). Semi-annua1 payments of TWELVE THOUSAND EIGHT HUNDRED DOLLARS ($12,800.00) each wi11 be made within thirty (30) days of January 1, 1985 and July 1, 1985. At the end of each anniversary of this Agreement, the annua1 com- pensation sha11 be subject to adjustment as mutua11y determined by EMPLOYER and SERVICE AGENT, based on changes in work10ad. SERVICE AGENT agrees to notify EMPLOYER in writing of any increase in service fee based on changes in workload thirty (30) days prior to each anniversary. In the event such compensation adjustment cannot be mutua11y agreed upon, then this Agreement may be cancelled pursuant to the cance11ation provision provided in Item II (Cance11ation) of this Agreement." All other terms and conditions remain unchanged. DATED this é2 r:LÞ-t:Ý day of 'lfl~ , A. D. 1985. ~Q~ ~"' ~~~ VILLAGE OF MO~T PROSP CT ~~~ GENTHER AHLF, VICE PRESIDENT ~ GALLAGHER BASSETT INSURANCE SERVICE, A DIVISION OF ARTHUR J. GALLAGHER & CO. " , .. AGREEMENT FOR SERVICES. THIS AGREEMENT" is made this 1st day of January A.D. 1984 by and between the VILLAGE OF MOUNT PROS~ECT, hereinafter referred to as "EMPLOYER," and GALLAGHER BASSETT INSURANCE SERVICE, a division of AR'THUR J. GALLAGHER de CO., an Illinois corporation, authorized to do business within the State of Illinois, hereinafter referred to.. as "SERVICE AGENT." I. TERM This Agreement shaH take effect at the time the EMPLOYER'S self- insurance program becomes effective, but not later than January 1, 1984, and shaH continue in effect for one year after its initial effective date, after which date this Agreement shaH continue in effect until cancelled by either Party as herein provided. ß. CANCELLATION This Agreement may be cancelled at any anniversary by either Party giving the other written notice of cancellation any time during the period of the Agreement with ninety (90) days' advance notice. m. COMPENSATION EMPLOYER shall pay SERVICE AGENT for services rendered herein the annual sum of TWENTY FIVE THOUSAND SIX HUNDRED TWENTY DOLLARS ($25,620.00). Semi-annual payments of TWELVE THOUSAND EIGHT HUNDRED TEN DOLLARS ($12,810.00) each 'will be made within thirty (30) days of January 1, 1984 and July 1, 1984. At the end of the first anniversary of this Agreement, the annual compensation shall be subject to adjustment as mutually determined by EMPLOYER and SERVICE AGENT, based on changes in workload. SERVICE AGENT agrees to notify EMPLOYER in writing of any increase in service fee based on changes in workload thirty (30) days prior to each anniversary. In the event such compensation adjustment cannot be mutually agreed upon, then this Agreement may be cancelled pursuant to the cancellation provision provided above. -2- IV. OBLIGATIONS SERVICE AGENT will supervise and administer the self-insurance plan for the EMPLOYER in full compliance with all applicable laws, rules and regulations governing the administration of self-insurance; and SERVICE AGENT will act as the representative of the EMPLOYER in all matters related to such adminis- tration and will perform fully all the below-listed functions: A. CLAIMS: 1. Complete handling of all loss adjustments, investigations 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. Assist the Risk Manager in the analysis of claims to prevent future similar occurrences with periodic reports reflecting trends, hazardous areas and recommendations for accident prevention. 5. Coordinate investigations on litigated claims with attorneys approved by the EMPLOYER and with adjusters and attorneys of the excess insurance carrier as required. It is expressly understood by the Parties to this Agreement that all legal costs and loss payments will be charged to the EMPLOYER'S Loss Fund. 6. Set up and maintain a bank trust account for the purpose of keeping segregated funds which will be furnished by the EMPLOYER to SERVICE AGENT to establish a reserve for the payment of claims, and reconcile this fund monthly with the EMPLOYER. The amount of this fund is to be kept to a minimum so as to maximize the retention of cash. -3- 7. Obtain approval from responsible EMPLOYER personnel before paying any claim in excess of FIVE THOUSAND DOLLARS ($5,000.00) and furnish precautionary reports on all serious claims. 8. Be available to consult with the EMPLOYER on any insurance matter and make available to the Risk Manager the expertise and experience of SERVICE AGENT'S staff of professionals to assist him in achieving a successful self-insurance program. 9. In the event of cancellation of this Agreement, EMPLOYER may request the SERVICE AGENT to continue handling all pending claims on the following terms: SERVICE AGENT will receive fifty percent (50%) of the monthly fee for the first ninety (90) days of service and twenty-five percent (25%) of the monthly fee for the next ninety (90) days. After one hundred eighty (180) days, files will be returned to the EMPLOYER in an orderly manner provided that approval is given by the excess insurance carriers. In the event such approval is not received, the fee will be negotiated based on the number of outstanding claims. In the event approval is received to return files to the EMPLOYER at any time prior to one hundred eighty (180) days of cancellation, the fee will be pro-rated to the date that files are to be returned. The EMPLOYER agrees to indemnify, protect, save and keep harmless GALLAGHER BASSETT INSURANCE SERVICE and ARTHUR J. GALLAGHER de CO. from any and all loss, cost, damage, or expense arising out of the administration and handling of any claims after these records and files have been returned. 10. Assist in the collection of claims against others for damage to EMPLOYER'S property and make recommendations regarding salvage matters. 11. All sizable and unusual claims will be reviewed by SERVICE AGENT'S internal legal staff at no additional cost to the EMPLOYER. 12. Provide all necessary personnel to perform the services agreed upon herein. -4- B. LOSS PREVENTION: SERVICE AGENT'S Loss Prevention services will be provided in the following areas, where coverages apply: 1. Workers' Compensation Loss Prevention 2. General and Public Liability Loss Prevention 3. Automobile and Fleet Loss Prevention SERVICE AGENT will prepare computerized loss data which will detail loss experience by location as follows: 1. By dollar loss 2. By accident frequency 3. By line of coverage 4. By accident cause Loss analysis of computer data will be used to identify problem areas so control action plans can be developed. SERVICE AGENT'S Loss Prevention service will assist in the devel- opment of control programs, where needed, for coverages covered by this Agreement. Existing safety programs will be evaluated as to their effectiveness in controlling the causes of accidents in EMPLOYER'S operations. Location audits to determine how effective the safety program is functioning can be made. , , ., -5- The frequency of our own safety surveys will be based on need from analyzing the accident causes and trends. Periodic meetings with members appointed by the EMPLOYER'S administration will be held to ensure a mutually satisfactory assignment of priority to EMPLOYER'S loss , prevention needs. Progress report meetings to review accident problems and needed action should be scheduled with responsible individuals from the EMPLOYER'S administration and SERVICE AGENT on a quarterly basis. 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 the same is intended to be a personal service Agreement. SER VICE AGENT shall not assign this Agreement or any responsibilities pursuant to said Agreement without the express written consent of the EMPLOYER and the excess insurer. The Parties hereto, may, by mutual written agreement, change the scope of services or the amount of compensation set forth 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 action to ensure that applicants are employed and that employees are treated fairly during their employment without regard to race, religion, color, sex, age 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, including apprenticeship. , , '"', -6- SIGNATURES By these signatures, the Parties agree to all the terms, conditions and provisions of this Agreement. Dated this td day of ~~ , A.D. 1983. ") (~'('~ jJ l¡~ VILLAGE OF MOUNT PROSPECT ~~~~ G UE THER AHLF, VICE PRESID~ GALLAGHER BASSETT INSURANCE SERVICE DIVISION OF ARTHUR J. GALLAGHER de CO.