SR-05-27-1980-6ISanta Monica, Califon a, May 20, 1980
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Renewal of Contract for Workers' Compensation
Claims Administration Services
Introduction
M
MAY 2 7 1980
This report discusses workers'compensation claims administration services and
recommends approval of a two year agreement with Fitzpatrick Self- Insurance
Administrators in the amount of $30,820 for FY 1980 - 81 and $35,443 for
FY 1981 - 82.
Background
In June 1976, the City Council approved withdrawal from the State Compensation
Insurance Fund and established a Workers' Compensation Self- Insurance Program.
As part of this program, the City has retained firms specializing in claims'
adjusting to administer its responsibilities to employees under the State's
workers' compensation laws. In general, this involves contacting employees
who have work related injuries, supervising medical treatment, paying medical
bills and processing disability payments while employees are off the job.
During the first three years of self- insurance, Brown Brothers' Adjusters
was retained to administer the program. Mr. Larry Fitzpatrick worked for
Brown Brothers' during this period and was responsible for the City's account.
Last June, Mr. Fitzpatrick formed his own company and continued, during FY 1979 - 80,
to handle the City's claims. This contract expires on June 30, 1980.
Fitzpatrick Self- Insurance Administrators is proposing to renew the agreement
N AY 2 7 1980
T0: Mayor and City Counci,
mm
May 20, 1980
with the City at a cost of $30,820 for FY 1980 - 81. This is an increase
of $4,200 (15 %) over the current year. At staff's suggestion, a second
year quotation has also been provided. At $35,443 for FY 1981 - 82, this
is also a 15% increase. Payments for claims administration services are
made from the Workers' Compensation Self- Insurance Fund (Fund 59).
Evaluation of Cost and Quality of Service
During the past year, Mr. Fitzpatrick has again provided a high quality of
service at a reasonable cost. This has been confirmed by an independent
workers' compensation claims audit recently conducted as part of the City's
management of the Self- Insurance Program.
In addition, this year's survey of surrounding cities continues to indicate
that others are paying more for this service and, for the most part, are remaining
dissatisfied with the quality of service being provided. During the past year,
several South Bay Cities were forced to change adjusters due to deterioration
in the handling of their accounts. The City of Torrance, so dissolutioned
with the quality and cost of service provided by the six or seven available
firms, recently decided to begin processing its own claims. (Self - Administration
for the City of Santa Monica is not recommended at this point as the proposed
contract price still remains lower than the estimated in -house cost.)
Quotations received during the past year by other cities range from approximately
$45 to $65 per employee. In comparison, Fitzpatrick's quote of approximately
$32 per employee is quite reasonable. Because the survey results indicate
competing firms are providing less in service at a higher cost, staff believes
solicitation of bids would provide no advantage at this time.
T0: Mayor and City Counc,
- 3 -
Alternatives
1. Approve the proposed agreement with Fitzpatrick Self- Insurance
Administrators.
2. Reject the proposed agreement and direct the staff to seek proposals
from other firms.
May 20, 1980
Recommendations
It is recommended the City Council approve the proposed agreement with
Fitzpatrick Self- Insurance Administrators at a cost of $30,820 for
FY 1980 - 81 and direct the City Manager to exercise the second year option
at $35,443 if the service provided continues to be satisfactory.
Prepared By: JEANNE L. KENNEDY
Administrative Assistant
JLK:dvl
Ay 27, 1980
To: City Council
From: City Staff
6
l 7-40'
Subject: Request of Council Member Jennings for information regarding
control of workers' compensation medical costs.
Question #1 WHAT PERCENTAGE OF THE CITY'S PAYMENTS ON WORKERS' COMPENSATION
CLAIMS IS ATTRIBUTED TO MEDICAL COSTS, AS OPPOSED TO
PAYMENTS TO EMPLOYEES WHILE THEY ARE OFF OF WORK OR IN
FINAL SETTLEMENT OF A CLAIM?
Medical expenses contribute to approximately 43% of the
City's workers' compensation claims costs.
For a three year period ending in June, 1979, the City's
incurred liability with respect to workers' compensation
claims was as follows:
Medical $ 798,232
Disability 1,067,346
TOTAL $1,865,578
Question #2 WHAT WOULD BE THE INCREASED SERVICE FEE IF THE CITY WERE
TO REQUIRE FITZPATRICK SELF - INSURANCE ADMINISTRATORS
TO REVIEW EACH MEDICAL BILL TO ASSURE THE APPROPRIATE -
NESS OF THE CHARGE?
This review of each medical bill has always been a
requirement set by the City, and is found in the
proposed contract under Medical Control Services,
pages 5 and 6. Specifically, Paragraph 6D requires
the claims administrator to:
Audit all medical bills prior to
payment to confirm their relation-
ship to the disability and accept-
ed fee schedules and to minimize
costs to the City.
In the independent audit recently conducted, the auditors
were specifically asked to look into the area of medical
control. The audit confirmed the City is receiving a
high standard of medical control as described in the
contract.
b-27-JO
TO: Mayor and City Council
FROM: City Staff
Santa Monica, California, May 20, 1980
SUBJECT: Renewal of Contract for Workers' Compensation
Claims Administration Services
Introduction
MAY 2 7 1980
This report discusses workers'compensation claims administration services and
recommends approval of a two year agreement with Fitzpatrick Self- Insurance
Administrators in the amount of $30,820 for FY 1980 - 81 and $35,443 for
FY 1981 - 82.
Background
In June 1976, the City Council approved withdrawal from the State Compensation
Insurance Fund and established a Workers' Compensation Self- Insurance Program.
As part of this program, the City has retained firms specializing in claims
adjusting to administer its responsibilities to employees under the State's
workers' compensation laws. In general, this involves contacting employees
who have work related injuries, supervising medical treatment, paying medical
bills and processing disability payments while employees are off the job.
During the first three years of self- insurance, Brown Brothers' Adjusters
was retained to administer the program. Mr. Larry Fitzpatrick worked for
Brown Brothers' during this period and was responsible for the City's account.
Last June, Mr. Fitzpatrick formed his own company and continued, during FY 1979 - 80,
to handle the City's claims. This contract expires on June 30, 1980.
Fitzpatrick Self- Insurance Administrators is proposing to renew the agreement
EN
,? ^,Y 2 7 1980
T0: Mayor and City Council May 20, 1980
-2 -
with the City at a cost of $30,820 for FY 1980 - 81. This is an increase
of $4,200 (15 %) over the current year. At staff's suggestion, a second
year quotation has also been provided. At $35,443 for FY 1981 - 82, this
is also a 15% increase. Payments for claims administration services are
made from the Workers' Compensation Self - Insurance Fund (Fund 59).
Evaluation of Cost and Quality of Service
During the past year, Mr. Fitzpatrick has again provided a high quality of
service at a reasonable cost. This has been confirmed by an independent
workers' compensation claims audit recently conducted as part of the City's
management of the Self- Insurance Program.
In addition, this year's survey of surrounding cities continues to indicate
that others are paying more for this service and, for the most part, are remaining
dissatisfied with the quality of service being provided. During the past year,
several South Bay Cities were forced to change adjusters due to deterioration
in the handling of their accounts. The City of Torrance, so dissolutioned
with the quality and cost of service provided by the six or seven available
firms, recently decided to begin processing its own claims. (Self- Administration
for the City of Santa Monica is not recommended at this point as the proposed
contract price still remains lower than the estimated in -house cost.)
Quotations received during the past year by other cities range from approximately
$45 to $65 per employee. In comparison, Fitzpatrick's quote of approximately
$32 per employee is quite reasonable. Because the survey results indicate
competing firms are providing less in service at a higher cost, staff believes
solicitation of bids would provide no advantage at this time.
TO: Mayor and City Council May 20, 1980
- 3 -
Alternatives
1. Approve the proposed agreement with Fitzpatrick Self- Insurance
Administrators.
2. Reject the proposed agreement and direct the staff to seek proposals
from other firms.
Recommendations
It is recommended the City Council approve the proposed agreement with
Fitzpatrick Self- Insurance Administrators at a cost of $30,820 for
FY 1980 - 81 and direct the City Manager to exercise the second year option
at $35,443 if the service provided continues to be satisfactory.
Prepared By: JEANNE L. KENNEDY
Administrative Assistant
JLK:dvl
SELF - INSURED WORKERS' COMPENSATION
SERVICE AGREEMENT
THIS AGREEMENT made this day of between the
CITY OF SANTA MONICA, a municipal corporation, hereinafter referred to as
"City ", and FITZPATRICK SELF - INSURANCE ADMINISTRATORS, a sole proprietorship
registered in the State of California, hereinafter referred to as the
"Administrator"
Recitals
The City desires to self- insure its liability to its employees
pursuant to the Workers' Compensation Laws of the State of California.
The Administrator is engaged in the business of supervising and
administering self- insured Workers' Compensation Programs for self - insured
employers.
The City desires to retain the services of the Administrator to
supervise and administer a self - insured Workers' Compensation Program,
hereinafter referred to as the "Program ", for the City.
THEREFORE, the City hereby retains the services of the Administrator
and the Administrator agrees to render its services for the City on the terms
and conditions of this Agreement.
Legal Status of City
1. The City is a municipal corporation duly organized and validly
existing under the laws.of the State of California with the power to carry
on its business as it is now being conducted under the statutes of the State
of California and the Charter of the City.
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Legal Status of Administrator
2. The Administrator is a validly existing sole proprietorship
in the State of California, with power to own property and carry on its
business as it is now being conducted.
Term of Agreement
3. This Agreement shall become effective as of July 1, 1980, and
shall continue in effect for a period of twelve (12) months, unless.either
terminated by the City as provided for herein or• automatically extended for a
second term of twelve (12) months pursuant to Paragraph 15 set forth herein.
Program Development Services to be
Performed by Administrator
4. Administrator agrees to. perform and provide all the program
development services.necessary to maintain a Program which achieves the
objectives of both cash savings to the City and full benefits to the employees.
Said services shall include, but not be limited to, the following:
A. Analyze with personnel of the City the need for modification
and implementation of procedures, practices, and coordination to meet the
requirements of the State of California and the needs of the City.
B. Develop and provide procedures, practices, and coordination in
relation to, but not limited to, reporting industrial injuries, the role of
the supervisor, medical referrals, personnel - payroll responsibility in
processing industrial injuries, and employees' consultative services.
C.. Orient City personnel involved directly in the processing of
industrial cases to the procedure, practices, and coordination prepared by
Administrator.
MAE
D. Design and provide all forms necessary for the efficient operation
of the Program, and prepare and file all legally required forms thereto. Said
forms shall include, but are not limited to, documents for the reporting of
industrial injuries and illnesses, general processing of Workers' Compensation
matters, doctors' reports, claims administration, coordination of benefits,
and fiscal reports.
E. Inform the City in writing of the adoption, amendment, or repeal
of all statutes, rules and regulations, and decisions of administrative agencies
which could directly or indirectly affect the Program.
F. Consult with the City regarding safety and loss prevention..
G. Provide consultation to the City at its request to effect self -
administration of Workers' Compensation claims.
H. Consult with and advise the City on any matters related to the
business of the City which involve the subject matter of this Agreement.
Administrative and Implementation Services
to be Performed by the Administrator
.5. Administrator further agrees to perform and provide any and all
administrative and implementation services necessary to achieve the desired
objectives of the City. Said services shall include, but.not be limited to,
the following:
A. Administer the self- insurance program of the City in full
compliance with all applicable laws, rules, and regulations governing the
administration of self - insurance which are in effect at the time of this
Agreement, including, but not limited to, California Labor Code Section 3700 et. seq.
and the California Administrative Procedure Act as set forth in the Government
Code Sections 11370 - 11528. Administrator shall furthermore have the duty
and obligation to administer the self- insurance program of the City in conformity
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with any amendments or changes in the applicable laws, rules and regulations
which become effective during the period of this Agreement and shall notify
the City of any such amendments or changes upon their occurrence.
B. Review and process all reports and cases of industrial injury
to or disease of employees in accordance with the requirements of the appropriate
State agencies.
C. Determine the compensability of injuries and illnesses in accordance
with State Workers' Compensation Laws and decide what benefits, if any, should
be paid or rendered in each case.
D. Authorize the payment of medical benefits and arrange and authorize
medical examinations to determine the nature and extent of the alleged disability.
E. Decide the eligibility for and authoirize payment of temporary
disability compensation, including benefits under Section 4850 of the Labor
Code, in coordination with medical.advice, rehabilitation efforts, and salary
continuation program.
F. Determine the extent and degree of permanent disability utilizing,
as necessary and desirable, any medical sources or advisory bodies available.
However, all the findings shall be reported to the City before any action is
taken.
G. Process payments of permanent disability compensation and death
benefits in accordance with Advisory Ratings, Findings and Awards, or settlement
agreements, with prior, written approval of the City.
H. Pay promptly all benefits so as to avoid penalties.
I. Maintain on each claim current estimates of the future
anticipated costs of all benefits, i.e., reserves.
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J. Establish and maintain all records and claim files on each claim
which shall be available to the City at all times for inspection for a minimum
period of five (5) years from filing date of claim.
K. All records and claim files are the property of the City and
shall be kept confidential.
L. Maintain records on and effect collections from excess reinsurers
on the City's behalf when it is entitled to reimbursment for a loss in excess
of the self - insured retention.
Medical Control Services to be
Performed by Administrator
6. Administrator further agrees to perform and provide any and all
medical control services necessary to insure a high quality of medical treat-
ment for injured employees, as well as prompt and complete medical reports
necessary to the determination of compensability in the provision of benefits
and the regulation of medical costs. Said services shall include, but not be
limited to, the following:
A. Maintain a current roster of physicians by geographical area
for the first treatment of employees, as well as a roster of medical specialists
for the treatment of employees with industrial injuries or illnesses requiring
,long -term of speciality care. This roster shall be updated no less than every
six months in an effort to obtain and maintain high quality, low cost medical
treatment.
B. Monitor treatment program for injuried employees, including,
but not limited to, reviewing all medical reports. Copies of each and every
medical report shall be immediately forwarded to the City.
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C. Provide continuing supervision of medical treatment in employee
injury cases so that the employee may be returned to the job as early as is
consistent with the medical condition.
D. Audit all medical bills prior to payment to confirm their
relationship to the disability and accepted fee schedules and to minimize
costs to the City.
E. Establish standards for the evaluation of the physical capacity
of the injured employees to return to work and provide guidance for the
application of standards to determine the existence of any permanent disability.
F. Make all necessary arrangements for consultation with and
examinations by prominent physicians for the review of the employee's medical
problem in the event that he should file for disability retirement.
G. Supervise the furnishing of medical treatment to injured employees.
H. Administer and process all lifetime medical cases.
Claims Investigative Services
to be Performed by Administrator
7. Administrator further agrees to perform and provide any and all
claims investigative services necessary to conduct a thorough investigation
of any claim or dispute arising out of or related to the Program. Said services
shall include, but not be limited to the following:
A. Determine liability of claims and conduct all necessary in-
vestigations, excluding subrosa investigations, as deemed necessary in the
judgment of the Office of the City Attorney, City Manager, Director of Administra-
tive Services or Administrator with regard to individual cases. Confirm whether
or not the injury or the illness arose out of or occurred during the course and
scope of employment.
- 6 -
B. Provide all records, medical files, and other data, and perform
all tasks and research as the Office of the City Attorney of the City, or
other designated legal counsel of the City, or the Office of the City Manager
or Director of Administrative Services, may request or require concerning any
claim, dispute, liability, loss, cost , or obligation on account of, or arising
out of the Program.
C. Monitor all cases for potential subrogation recoveries and provide
subrogation investigations. Investigations and other asisstance shall be
performed as the Office of the City Attorney, or the designated legal counsel
for the City, may request or require when necessary to effect collection from
third parties.
Employee Consultative Services
to be Performed by Administrator
8. Administrator further agrees to perform and provide any and all
employee consultative services necessary to supply employees with full and
complete information and guidance regarding their rights and benefits and
the operation of the Program. Said services shall include, but not be limited
to the following:
A. Provide consultation and recommendations concerning the development
of policies and procedures for employees consultative service activities.
B. Supply information and guidance to all injured employees relative
to their rights and benefits.
C. Identify and solve employee problems arising out of work - incurred
disabilities.
D. Meet with employee groups, at the direction of the City, to discuss
the Workers' Compensation system and related matters.
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E. Develop policies and procedures to insure that the return to work
or reassignment of injured employees is consistent with the findings of state
administrative agencies.
F. Design and provide a "Claim Acknowledgement Letter," or other
document, to be used when accepting lost time work- incurred injuries or illnesses.
G. Assist the City and employees in solving employee non -legal problems
arising out of industrial injury cases.
Rehabilitation Services to
be Performed by Administrator
9. Administrator further agrees to perform and provide any and all
rehabilitation services necessary to develop and maintain a good, sound re-
habilitation system. Said services shall include, but not be limited to, the
following:
A. Work with the employees, the staff of the City, and other
groups or agencies to provide for the rehabilitation, retraining, or reassignment
of employees with physical or performance limitations arising out of industrial
injuries. The costs for rehabilitation of employees shall be the responsibility
of the City.
B. Develop and administer a rehabilitation system for the City pursuant
to applicable state laws, rules and regulations, and decisions of administrative
agencies thereto.
C. Develop and closely monitor plans which are submitted to the
Rehabilitation Bureau for Vocational Rehabilitation.
Statistical and Reporting Services
to be Performed by Administrator
10. Administrator further agrees to perform and provide any and all
statistical services necessary to maintain control of self- insurance costs and
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continue the efficient operation of the Program. Said services shall include,
but not be limited to, the following:
A. Provide a monthly loss report for the preceding month, on or before
the twentieth (20) day of each succeeding calendar month, containing, but not
limited to, the following information: location, description of the loss,
nature of the injury, number of days lost from work, OSHA coding, and reserves
and payments made during the given month.
B. Submit a comprehensive monthly report, for the preceding month,
on or before the twentieth (20) day of each succeeding calendar month, delineating
a "year to date" complete run of all incurred reserves and payments.
C. Furnish a complete monthly breakdown for the preceding month, on
or before the twentieth (20) day of each month, of all claims as well as "year
to date" breakdown by location and department.
D. Maintain all records and statistical data on losses arising from
employee injuries as may be required under the appropriate laws of the State
of California, and rules and regulations thereto.
E. Supply data and information relative to the establishment of a
reserve dollar amount for each and every claim after Administrator's analysis
of said claim. Monitor each and every claim, at a minimum quarterly, to determine
if a change in the reserve dollar amount is required. Provide an analysis of
the reserve fund at such times as the City may require, in order to insure the
adequacy of said fund in light of anticipated and accrued costs, expenses and
claims.
F. Provide a quarterly narrative status report on all major claims
with a total expected cost of Ten Thousand dollars ($10,000) or more. Such
report shall also identify those cases /claims believed to involve legal expense
- 9 -
I
in excess of One Thousand Dollars ($1,000).
G. Provide a comprehensive annual statistical summary survey and
narrative report to serve as the basis for both evaluation of the City's
self- insurance program and reports required by the Department of Industrial
Relations. Such .report shall be submitted to the City no later than
August 8th, following the close of the Fiscal Year for which services are performed.
H. Provide no later than August 15th, a listing of cases closed,
organized by policy year, during the preceding Fiscal Year (July 1 through
June 30). This list shall be in a format to be specified by the City staff.
Litigation Management
11. Administrator further agrees to perform and provide litigation
management services which shall include, but not be limited to, the following:
A. Notify the City immediately of significant actions in Workers'
Compensation cases including, but not limited to, the filing of a case with
the Workers' Compensation Appeals Board, the scheduling of a hearing, and a
decision of the Workers' Compensation Appeals Board.
B. Retain on the City's behalf; and with the prior approval of the
City Attorney, attorneys who specialize in the defense of Workers' Compensation
litigation when an employee files an application for adjudication before the
Workers' Compensation Appeals Board.
C. Fully cooperate with the City Attorney or any other outside counsel
engaged on the City's behalf, by providing all records, medical files, and
non -legal preliminary work to the City Attorney or outside counsel at their
request.
D. Pay legal expenses to counsel retained pursuant to this agreement
or to any other written agreements which may exist between the City and the
Administrator. Legal expenses for Workers' Compensation claims are the
responsibility of the City.
- 10 -
E. The City reserves the right to approve or disapprove any item
of expense in connection with litigation prior to payment by the Administrator.
The Administrator will make all efforts to minimize legal expense.
F. Administrator recognizes that all records and files in connection
with Workers' Compensation cases are the property of the City, are maintained
in contemplation of litigation, and are to remain confidential. They may only
be disclosed at the direction of the City Attorney or counsel retained to
represent the City.
Fiduciary Responsibility
12. The Administrator holds the funds of the City as a public trust,
and shall be held to the highest fiduciary duty in the administration of the
Trust and the disbursement of Trust funds.
Qualified and Trained Personnel
13. Qualified and trained personnel directly employed and supervised
by the Administrator will perform all the services required by the terms and
conditions of this Agreement. Administrator agrees that each of its employees
shall have an extensive background in the workers' compensation field. Each
employee will be properly qualified and will use reasonable care in the
performance of his /her duties. Furthermore, each employee shall be provided
with continued education to insure that he /she is up to date on recent court
decisions and proposed legislation. Each employee will be able to take the
necessary action that may be indicated or required to continue and maintain
control of the Program.
Compensation of Administrator
14. As compensation for services rendered under this Agreement,
Administrator shall be entitled to receive the sum of Thirty Thousand Eight
Hundred and Twenty Dollars ($30,820) during the first year and Thirty -Five
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Thousand Four Hundred and Forty -Three Dollars ($35,443) during the second year.
These annual fees shall be paid to Administrator in equal monthly in§tallments
on or before the fifteenth (15th) day following each monthly period of the
term of this Agreement.
Renewal Option
15. The term of this agreement shall be automatically extended from
July 1, 1981 through June 30, 1982 under the same terms and conditions unless
written notice of non - renewal is furnished by either party to the other prior
to May 1, 1981. Compensation for this extended term shall be as set forth in
Paragraph 14 of this Agreement.
Indemnification
16. The Administrator shall indemnify, forever hold harmless, and
defend the City from all liability, loss, damage, or injury arising out of or
incident to the performance of this Agreement, including without limitation,
all consequential damages.
Maximum Work Load
17. Administrator agrees that Larry Fitzpatrick will not personally
administer any accounts other than the Cities of Santa Monica, Montebello,
Seal Beach and Stanton unless agreed to in writing in advance by the City.
Termination by City for
. Change in Personnel
18. Administrator agrees that should Larry Fitzpatrick at any time
cease or discontinue, due to illness or other circumstance, to personally
administer the Program of the City under this Agreement, the City may, at its
sole. option and discretion, terminate this Agreement immediately on giving notice
in writing to the Admi.ni.strator as :provided for herein. The City may
- 12 -
also, at its sole option and discretion, require the Administrator to
provide the services of a substitute Administrator acceptable to the City.
Termination by City for Default
19. In the event that the Administrator defaults in the performance
of this Agreement or materially breaches any of its provisions, the City shall
have the option, at its sole discretion, of terminating this Agreement im-
mediately by giving written notification as provided for hereinafter.
Notices
20. All notices, demands, requests or approvals which are required
under this Agreement, or which either City or Administrator may desire to
serve upon the other, shall be in writing and shall be conclusively deemed
served when delivered personally, or forty -eight (48) hours after the deposit
thereof in the United States Mail, postage prepaid, registered or certified,
addressed as hereinafter provided.
All notices, demands, requests or approvals from Administrator
to City shall be addressed to the City Manager at 1685 Main Street, Santa
Monica, California 90401.
All notices, demands, requests or approvals, from City to Administrator
shall be given to Fitzpatrick Self- Insurance Administrators at P. 0. Box. 3698
Ontario, California 91)61.
Warranty of Services
21. Administrator warrants and guarantees that all services performed
hereunder for the City shall be performed in a manner commensurate with the
highest professional standards.
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Warranty Against Collusion
and Conflict of Interest
22. Administrator hereby represents, warrants, and agrees as follows:
A. Neither it nor its agents, servants or employees has any
financial interest in any insurance company, provider of health services,
law firm or self- insurance administrator (excluding Administrator), which
could, in any manner, benefit from the results of Administrator's recommendations.
B. Neither it nor its agents, servants or employees, has in the
past received, or is presently receiving, income from any of the above said
organizations.
C. Neither it nor its agents, servants or employees has had, or
is presently having, any part in setting or fixing the prices for insurance,
legal costs, charges for health services or outside consulting services with
reference to the matters relating to the subject matter of this Agreement.
D. Neither it nor its agents, servants or employees has agreed
with any person with regard to the results or proposed results of the services
contemplated by this Agreement, and any recommendations shall reflect the
totally independent judgment of Administrator.
E. Each provision of this Agreement and each provision of this
warranty, representation, and agreement is expressly for the benefit of the
parties hereto and not for any other person, firm corporation, or class of
persons, firms or corporations which could be affected by a violation of said
Agreement, warranty or representation.
F. In rendition of its services hereunder, Administrator shall
act solely as an independent contractor and shall not act or purport to act
as an Agent with any authority to represent or bind the City.
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Entire Contract
23. This instrument contains the entire Agreement between the parties
relating to the rights herein granted in the obligations herein assumed. Any
oral representations or modifications concerning this instrument shall be of
no force or effect except a subsequent modificiation in writing, signed by
the party to be- charged.
Partial Invalidity
24. If any provision of this Agreement is held by an competent court
to be invalid, void or unenforceable, the remaining provisions shall never-
theless continue in full force and effect.
Governing Law
25. The validity of this Agreement and of any of its terms and
provisions, as well as the rights and duties, shall be interpreted and con-
strued pursuant to the laws of the State of California.
Interpretation
26. The terms and conditions of this Agreement shall be construed
pursuant to their plain and ordinary meaning and shall not be interpreted
against the maker.
Attorney's Fees
27. If any action at law or in equity, including an action for
declaratory relief, is brought to enforce or interpret the provisions of this
Agreement, the City shall be entitled to a reasonable attorney's fee if it
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prevails, which may be set by the court in the same action or in a separate
action brought for that purpose, in addition to any other relief to which it
may be entitled.
EXECUTED at Santa Monica, California, on the date and year first
above written.
FITZPATRICK SELF - INSURANCE ADMINISTRATORS
TITLE:
APPROVED AS TO FORM:
L L
STEPHEN S. STARK
Acting City Attorney
ATTEST:
CITY OF SANTA MONICA
City Manager
ANN SHORE
City Clerk
Reference:
Contract No. 3493
(CCS)