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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. -1- 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 - 3 - 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. - 4 - 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. - 5 - 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. - 7 - 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 - 8 - 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 - 11 - 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. - 13 - 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. - 14 - 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 - 15 - 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)