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HomeMy WebLinkAboutResolutions - 1989.11.30 - 17098November 30, 1989 MISCELLANEOUS RESOLUTION 89 300 BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: RISK MANAGEMENT - GALLAGHER BASSETT CONTRACT EXTENSION TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies, and Gentlemen: WHEREAS Miscellaneous Resolution #88328 approved a contract between Oakland County and Gallagher Bassett for risk management services, claims reporting, and loss prevention, etc.; and WHEREAS Risk Management has recommended the contract extension through 1990 at an estimated cost of $63,640; and WHEREAS the 1990/91 County Executive Recommended Budget includes funding for this purpose. NOW 'THEREFORE BE IT RESOLVED the Board of Commissioners approves extension of the contract with Gallagher Bassett through 1990. Mr. Chairperson, on behalf of the Finance Committee, I recommend the adoption of the foregoing resolution. FINANCE COMMITTEE 1 H -pY APPBOVE THE FOREGTNG RESOLUTION r v.. ii, .,,,,./ A e.._,I ,,,-, ,./.::/. :4,-(4.---Q,;k1/../..„ Daniel T. l'qiu:i..,,,,r;;Coui'iy`Execiiiiiie ( / Data nf-mrrisk ADDENDUM #2 TO AGREEMENT FOR SERVICES BETWEEN COUNTY OF OAKLAND, MICHIGAN AND GALLAGHER BASSETT SERVICES, INC. PERIOD OF AGREEMENT: December 15, 1987 - Continuous DATE OF CHANGE: December 15, 1989 it Is hereby noted and agreed that Item IV (AGREEMENT), Section B (Obligations of the CLIENT), is amended as fOHOWS: Obligations of the CLIENT 1. CLIENT shall pay GB for services rendered herein an annual deposit of THIRTY- THREE THOUSAND ONE HUNDRED FORTY ($33,140.00), to be billed quarterly. This sum includes program charges consisting of a. RISX-FACS6 and Systems Charge $4,415.00* b. Claims Management Charge (minimum based on a rate of $375.00 per claim for 43 claims) $16,125.00* c. Record only charge (minimum fee based on 5 records plus $28.00 record over 5 records) $140.00* . Claims Management Administration Charge $2,868.00* e, SIMMS Credit $(208.00)* f. Loss Prevention Services 25,000.00 ($10,000* billed In deposit g. Risk Management Consulting 7,500.00 (if requested) h. Liability Claims Review Audit. Preparation For Actuarial Study 8,000,00 (If requested) Projected Total Services $53,640.00 The aforementioned claims management charge is subject to an audit of reported claims at the end of twelve (12) months. The CLIENT will be "B. surcharged THREE HUNDRED SEVENTY-F1VE DOLLARS ($375.00) per claim for each claim reported in excess of 43 claims. Record onlys In excess of 5 will be charged at the rate of TWENTY-EIGHT DOLLARS ($28.00) per record. This charge will be based on an audit at the end of twelve (12) months). Loss Prevention services as set forth in Appendix A to the Agreement for Services for the period of December 15, 1987 through December 14, 1988 no longer apply . The $25,000 Loss Prevention fee (as shown on page 1 of this Addendum) is the anticipated projected amount of LP services for the year, The $10,000 depose Is not a minimum fee but is subject to adjustment based upon the hourly rates shown. For the period of agreement covered by this Addendum #1 (December 15, 1989 through December 14, 1990), Loss Prevention services are available upon request of the CLIENT and will be rendered as staff Is available. Loss Prevention services will be billed at the rate of NINETY-FIVE DOLLARS ($95.00) per hour plus expenses for an Executive Manager or for Industrial Hygiene services and billed at the rate of SEVENTY DOLLARS ($70.00) per hour plus expenses for all Other representatives, Payment terms are twenty-five percent (25%) down and the balance In three (3) quarterly Installments and documentation for these charges will be provided by GB. 2. CLIENT shall at all times provide funds adequate for the payment of qualified claims or losses and of allocated loss expenses. For this purpose, allocated lose expenses shall mean all costs, charges or expenses of third parties Incurred by GB, its agents or its employees, which are properly chargeable to a qualified claim or loss including, without limitation, court costs, fees and expenses of attorneys, independent investigators, experts and witnesses, and f-es for obtaining diagrams, reports, documents, photographs, surveillance and automobile appraisals. • GE will provide an on-line check Issuance and banking communication system known as "APACS," which provides for automated payments and control. Operational costs for this system will be charged to the CLIENT. This will include such charges as check costs, wire transfer fees, bank reconciliation reports and overdraft charges. All earning credits on 'merest funds will be tredited to the CLIENT. The account will be funded with Citibank to administer a SIMMS cash management program. Such cash management program will deal directly with the funding program of the CLIENT's banking facility. GB will assist the CLIENT in establishing the initial !merest amount of the funding. GB will conduct an audit at the end of eighteen (18) months after actual costs are known and will furnish the CLIENT with the proper debit or credit in addition, GB will analyze the account from time to time and will submit advisory reports and recommended adjustments to the imprest balance. Failure or refusal to provide such funding at the time of cancellation or nonrenewal will result in gstop payment" orders being placed on all outstanding payments. The cost of placing such "stop payment" orders or any other expense resulting from the failure to provide the proper funding will be the obligation of the CLIENT. 3. It is expressly understood that GB shall not be required to advance its own funds to pay losses, allocated loss expenses or banking charges hereunder, or to perform any services hereunder if. CLIENT fails to provide adequate funds as herein set forth," All other terms and conditions remain unchanged. DATED THIS DAY OF AD. 198a, COUNTY OF OAKLAND, MICHIGAN By: Title: GALLAGHER BASSETT SERVICES, INC. By: BRIAN V. GRAY, VICE PRESIDENT/COUNSEL 4.isc. Resolution # 89300 November 30, 1989 Moved by Caddell supported by Skarritt the resolution be adopted. AYES: Moffitt, Oaks, Olsen, Pappageorge, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell, Calandro, Chester, Crake, Ferrens, Gosling, Hobart, Jensen, Johnson, R. Kuhn, Luxon, McCulloch, McPherson. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of the attached . miscellaneous -resolution adopted by the Oakland County Board of Commissioners at their meeting held on November 30, 1989 with the original record thereof now remaining in my office-, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan this 30th 'day of November 1989 LYNN/1). ALLEN, County Clerk/Register of