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HomeMy WebLinkAboutC-2181AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT FOR PROFESSIONAL SERVICES (hereinafter referred to as "Agreement ") is made and entered into this 5 day of August, 1996, by and between the City of Arcadia, a Municipal Corporation, (hereinafter referred to as "Arcadia ") and Heyenrath & Associates (hereinafter referred to as "Consultant'). RECITALS WHEREAS, Arcadia has selected Heyenrath & Associates to undertake the professional services as fully described in Exhibit "A ", Request for Proposal and Proposal, for four thousand eight hundred sixty -five dollars ($4865.00); and, WHEREAS, Consultant represents that it has experience and technical competence to act as Consultant to Arcadia for the services required by this contract. NOW THEREFORE, the parties agree as follows: The representatives of the parties who are primarily responsible for the administration of this Agreement and to whom formal notices, demands and communications shall be given, are as follows: All notices and written communications sent to Arcadia under the Agreement shall be sent to the following address, unless authorized in writing to be sent elsewhere by Arcadia: CITY OF ARCADIA Attn: David A. Serrano Risk Control Officer P.O. Box 60021 Arcadia, CA 91066 -6021 All communications sent to Consultant shall be sent to: Leo Heyenrath Heyenrath & Associates 1616 W. Dean Avenue Spokane, WA 99201 -1825 1 Any such notices and written communications by mail shall be conclusively deemed to have been received by the addressee five (5) days after the deposit thereof in the U.S. Mail, first -class postage and properly addressed as noted above, or upon actual receipt thereof if delivered by personal service. WYLOW Arcadia hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the attached Exhibit "A" incorporated as part of this Agreement, Arcadia's principal representative, or the representative's designee, shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the representative. The execution of this Agreement by the parties constitutes an authorization to proceed, unless otherwise provided by the terms of this Agreement. The work described in Exhibit "A" shall be completed in accordance with the schedule set forth in said Exhibit or as otherwise agreed upon in writing by amendments to this Agreement. Arcadia shall provide to Consultant to the extent feasible, all data, including reports, records, and other information, as requested by Consultant to perform this Agreement. All files, records, reports, studies and other documents prepared or obtained by this Agreement shall be the property of Arcadia. Basic notes, computations, computer diskettes and similar data prepared or obtained by Consultant under this Agreement shall, upon request, be made available to Arcadia without restriction or limitation on their use. Consultant shall deliver such materials to Arcadia according to the terms of this Agreement. Consultant shall have the right to make duplicate copies of such materials and documents for his /her files as may be authorized in writing by Arcadia. All information gained by Consultant in performance of this Agreement shall not be released by Consultant without Arcadia's prior written authorization. Confidentiality and disclosure shall be subject to the California Public Records Act. (Government Code Section 6250 et. seq.) 2 0 0 Consultant covenants that neither they nor any officer or principal of their firm have any interest in, nor shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subconsultant (see warranty - Section 15). A) Consultant agrees to provide the services set forth in the attached Exhibit "A" hereto, for a fee based on time and materials not to exceed four thousand eight hundred sixty -five dollars ($4865.00). Should Arcadia request, in writing, that Consultant perform additional work and services beyond those required under this Agreement, compensation for such services shall be on a time and material basis as outlined in Exhibit "B" attached hereto and made a part hereof. B) On or before the tenth (10th) day of each calendar month following the commencement of the work, Consultant shall cause to be made and submitted to Arcadia a written value of the time for all work completed and materials incorporated in the project up to the first day of that month. If Arcadia requests, the consultant shall provide Arcadia along with the invoice, copies or verification of all work performed for which Arcadia is being invoiced. In reviewing and approving such invoice, Arcadia may consider, in addition to other facts and circumstances, the relationship of the work completed to the work remaining to be done. Arcadia shall have the right to retain ten percent (10 %) of the estimated cost of the work as partial security for Consultant's performance of this Agreement. Within thirty (30) days after approval of Consultant's invoice, Arcadia shall pay to Consultant that balance of such invoice after deducting therefrom all prior payments and all sums to be retained as partial security under the terms of this Agreement. C) Upon satisfactory completion of all work and services described in Exhibit "A ", and Arcadia's approval thereof, Arcadia shall pay Consultant for the total amount remaining due for each increment or phase of the work, including all funds retained as partial security. Final payment shall be made by Arcadia to Consultant within thirty (30) days after Arcadia's written acceptance of the work. 3 0 • D) EXTRA SERVICES. If after work commences pursuant to this Agreement, it becomes apparent that additional work not originally contemplated as within the scope of this Agreement may be necessary such as that shown on Exhibit "A ":, or otherwise, if such services are performed, Contractor shall be compensated at Contractor's prevailing time and materials rate schedule as outlined in Exhibit "B ". The Contractor shall inform Arcadia in writing of the need for such additional work. No additional work shall be done without the prior written approval of Arcadia. The City Manager or his designee shall represent Arcadia in all matters pertaining to the administration of this Agreement, including without limitation, coordination of all necessary meetings and conferences, and review and approval of all products submitted by the Consultant. Authority to enlarge the scope of services or change the compensation due to Consultant is subject to approval of the City Council. Consultant is and shall at all times be deemed to be an independent contractor and shall be solely responsible for the manner in which it performs the services required by the terms of this Agreement. Nothing herein contained shall be construed as creating the relationship of employer and employee, or principal and agent, between Arcadia and Consultant or any of the Consultant's employees or any subconsultants. Consultant assumes sole responsibility for the acts of its employees and any subconsultants as related to the services to be provided during the course and scope of their employment. A) All services required under this Agreement shall be performed by Consultant, or under Consultant's direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services. B) Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Agreement, and compliance with all reasonable performance standards established by Arcadia. 4 • 0 C) Consultant shall comply with all federal and state statutes and regulations relating to the employer /employee relationship, including but not limited to, minimum wage, non - discrimination, equal opportunity, workers' compensation, hazardous /unsanitary or dangerous surroundings, the Fair Labor Standards Act, 29 U.S.C., 201, et,_seq., and the Immigration Reform and Control Act of 1986 8 U.S.A. 245 (a). This Agreement covers professional services of a specific and unique nature. Consultant shall not delegate, subcontract or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of Arcadia. Any proposed delegation, assignment or subcontract shall provide a description of the services to be covered, identification and qualifications of the proposed assignee, delegee or subcontractor and an explanation of why and how the selection was made. A) In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, disabilities or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination, rates of pay or other forms of compensation; and selection for training including apprenticeship. B) The provision of subsection of A above shall be included in all solicitations or advertisements placed by or on behalf of consultant for personnel to perform any services under this Agreement. Arcadia shall have access to all documents, data and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and non - discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order 11246 is available for inspection and on file with Arcadia. A) HOLD HARMLESS AND INDEMNITY. Consultant agrees to indemnify and hold harmless Arcadia, their officers, and employees from any claims, suits and liabilities for damage to person or property arising out of consultant's errors, omissions or negligent acts. 5 0 • B) INSURANCE. Consultant shall carry commercial liability insurance with combined single limits of at least two million dollars ($2,000,000) naming the City of Arcadia as additional insured. Proof of such insurance in a form and content approved by the Arcadia City Attorney is a condition precedent to execution of this Agreement by Arcadia. Insurance shall be maintained with insurers listed "A" or better in the Best's Insurance Guide and be authorized to do business in the State of California. Consultant shall also maintain professional liability insurance covering errors and omissions providing protection of at least one million dollars ($1,000,000) for errors and omissions with respect to losses, claims, and liability arising from action of consultants in performing pursuant to this Agreement. 1• X4 MKOOM pi -1 M • _.• A program of Workers' Compensation insurance or state - approved self - insurance program in an amount, form and as broad as to meet all applicable requirements of the Labor Code of the State of California, including Employer's Liability with limits of at least two million dollars ($2,000,000) per occurrence. Should the Consultant be self - employed, he /she must certify under Section 3800 of the California Labor Code, the performance of the work for which this contract is issued is without employing any person in any manner so as to become subject to the Workers' Compensation Laws of California. Consultant warrants and represents to Arcadia as follows: A) Consultant has no knowledge that any officer or employee of Arcadia has any interest whether contractual, noncontractual, financial, proprietary or otherwise, in this transaction or in the business of the Consultant, and that if any such interest comes to the knowledge of Consultant at any time, a complete written disclosure of such interest will be made to Arcadia, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws. B) Upon the execution of this Agreement, Consultant has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this Agreement, nor shall any such interest be acquired during the term of this Agreement. C. • • •_ • ►• . _■•.►_ A) Disputes regarding the interpretation or application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. B) If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded. 04. 1W4F.%tWk1LGQFM The terms are subject to modification by mutual agreement between Arcadia and Consultant which such changes shall be incorporated by authorized written amendments to this Agreement. The parties agree that the requirements for prior written changes, amendments, or modifications to this Agreement may not be waived and any attempted waiver shall be void. _:u ►: •► A) City many terminate this Agreement without cause upon five (5) days written notice to Consultant to the address specified in this Agreement. Notice may include telephonic communication to Consultant to cease work. Should City terminate this Agreement, Consultant agrees to immediately discontinue performance and deliver to City the work which he has completed, including all maps, data, reports and like materials. Consultant shall receive a fee equal to an amount which bears the same relationship to the total fee payable pursuant to Section 8 that the amount of work performed by Consultant prior to such termination bears to the total work to be performed by Consultant to this Agreement. B) City may terminate this Agreement with cause effective immediately upon written notice of such termination to Consultant, based upon the concurrence of any of the following events: 1. Material breach of this Agreement by Consultant; 2. Cessation of Consultant to be licensed, as required; 3. Failure of Consultant to substantially comply with any applicable federal, state or local law or regulation; 7 0 0 4. Filing by or against Consultant of any petition under any law for the relief of debtors; and 5. Filing of a criminal complaint against Consultant for any crime, other than minor traffic offenses. C) Work Product. In the event of termination, Consultant shall, at City's request, promptly surrender to City all completed work and work in progress and all materials, records, computerized information and notes developed, procured, or produced pursuant to this Agreement. Consultant may retain copies of such work product as a part of this record of professional activity. A) This Agreement supersedes all prior proposals, agreements and understanding between the parties and may not be modified or terminated orally. B) No attempted waiver of any of the provisions hereof, not any modification in the nature, extent or duration of the work to be performed by Consultant hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. This Agreement shall be governed by the laws of the State of California. This Agreement shall become effective as of the date set forth below in which the last of the parties, whether Arcadia or Consultant, executes said Agreement. 0 0 It is acknowledged and agreed that the key person and contact for the performance of this Agreement is Leo Heyenrath. No other person shall be substituted in this capacity, and Leo Heyenrath shall communicate directly with the City project manager David Serrano, Risk Control Officer. He shall be available for contact by the City and shall attend all meetings as requested by City, unless excused. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized. Dated: `'V ` ' 1996 Dated:, 1996 APPROVED AS TO FORM: By: MAs City Attorney CITY OF ARCADIA "CITY" By: -ill City Manager . -1: GULF *ERWRITERS INSURANCE COMY 388 G NWICH ST., NEW YORK, NY 10013 -2 6 (888) 467 -7767 (herein called "the Company ") Insurance Services Professionals Errors and Omissions Liability Insurance Policy Claims Made and Reported DECLARATIONS PAGE 1 of 2 NOTICE: THIS INSURANCE IS WRITTEN ON A CLAIMS MADE AND REPORTED BASIS AND PROVIDES COVERAGE FOR THOSE CLAIMS WHICH ARE FIRST MADE AND REPORTED TO THE COMPANY WHILE THIS INSURANCE IS IN FORCE AND WHICH ARE THE RESULT OF WRONGFUL ACTS COMMITTED ON OR SUBSEQUENT TO THE RETROACTIVE DATE SPECIFIED IN ITEM 4 OF THE DECLARATIONS. NO COVERAGE EXISTS FOR CLAIMS FIRST MADE AFTER THE END OF THE POLICY PERIOD UNLESS AND TO THE EXTENT AN EXTENDED REPORTING PERIOD APPLIES. CLAIM EXPENSES SHALL BE APPLIED AGAINST THE DEDUCTIBLE AMOUNT SPECIFIED IN ITEM 3 OF THE DECLARATIONS. PLEASE READ YOUR ENTIRE POLICY CAREFULLY. Policy No. T . 16501031 Renewal of No. IN RETURN FOR PAYMENT OF THE PREMIUM, THE COMPANY AGREES WITH THE NAMED INSURED TO PROVIDE INSURANCE UNDER THE PROVISIONS IN THIS POLICY. - Item 1. Named Insured and Mailing Address: Leo Heyenrath DBA Heyenrath & Associates 1616 West Dean Avenue Spokane, Washington 99201 -1825 'THIS CONTRACT IS REGISTERED AND DELIVERED AS A SURPLUS LINE COVERAGE UNDER THE INSURANCE CODE OF THE STATE OF WASHINGTON, ENACTED IN 1 IT IS NOT ISSUED BY A COMPANY RE LAT D BY THE WASHINGTON STAIE S&IONER AND 1S NOT MU BY STATE GUARANTY FUND Item 2. Policy Period: From June 7, 1996 To June 7,_1997 Effective Date Expiration Date 12:01 A.M., Standard Time at the Mailing Address stated in Item 1. Item 3. Limits of Liability for ISPP Errors and Omissions Liability: 3a: Each Wrongful Act $ 1,000,000 3b: Policy Aggregate $ 1,000,000 3c: Deductible - Each Wrongful Act $ 0 Limits of Liability for ISPP - General Liability: 3d: General Aggregate Limit $ 1,000,000 3e: Products - Completed Operations Aggregate Limit $ 1,000,000 3f: Advertising Injury Limit $ 1,000,000 3g: Each Occurrence Limit $ 1,000,000 3h: Fire Damage Limit $ 50,000 3i: Deductible - Each Claim $ 0 Item 4. Retroactive Date: June 7. 1988 Item 5: Premium: State Surcharge /Tax: Policy Fee: Surplus Lines Tax: Stamping Fee: Total Due: ISP 45050 (4/96) Copyright 1996 $ 2,360.00 $Not Applicable $ 47.20 (2%) $ 9.44 (.4%) (Continued on next page) 388 t NWICH ST., NEW YORK, NY 10013 -* (888) 467.7767 (herein called "the Company ") Insurance Services Professionals Errors and Omissions Liability Insurance Policy DECLARATIONS PAGE 2 of 2 Named Insured : Policy No. : Claims Made and Reported Leo Heyenrath IGU6501031 Item 6: Schedule of Professional Services insured: Forensic engineering services, expert witness services, and insurance inspection and audit services Item 7: Form(s) and Endorsement(s) made a part of this policy at time of issue: Insurance Services Professionals Liability Errors & Omissions - ISP 45052 1. Additional Insured Endorsement - ISP 45061 2. Service of Suit - Form ISPSOS General Liability Policy - ISP 45053 'TFBS CONTRACT IS REGISTERED AND DELIVERED AS A SURPLUS LINE COVERAGE UNDER THE INSURANCE CODE OF THE STATE OF WASHINGTON, ENACTED IN 19 . IT IS NOT ISSUED BY A COMPANY REG ED BY THE WASHINGTON STATE SIONER AND IS NOT PROTE BY WASHINGTON STATE Gl1NiAMY THIS DECLARATIONS PAGE, ALONG WITH YOUR SIGNED APPLICATION OR RENEWAL APPLICATION AND ALL OF THE PARTS OF THE POLICY LISTED IN ITEM 7 ABOVE COMPLETE THE POLICY. Countersigned at Kansas City, Missouri By qA thorized epresenta ve Date June 24, 1996 ISP 45050 (4196) Copyright 1996 e, I REN &ED 3 YEAR BUSINESS ACCANT PACKAGE POLICY FbrAlltM Commltm tsWu N&W SPECIAL FORM Policy Number Named insured and Address Prom;! P0..;Y Period % 1 29545703 HEYENRATH & ASSOCIATES W. 1616 DEAN SPOKANE, WA 99201 068545050 Tnls policy becomes errecuive anu address on the dates shown above. The Named Insured is an Individual. 03/16/1996 03/16/1999 Natl Fire Ins Co of Hartford CNA Plaza Chicago, Illinois 60685 .M. standard time at your mailing Your policy is composed of this Declarations, with the attached Common Policy Conditions, Coverage Forms, and Endorsements, if any. The Policy Forms and Endorsement Schedule shows all forms applicable to this policy at the time of policy issuance. The Three Year Policy Premium is $2,352.00 In return for the payment of the premium, and subject to all the terms and conditions contained herein, we agree to provide the insurance as stated. This section summarizes the included limits and coverages on your policy. BUSINESS LIABILITY Liability and Medical Expenses Medical Expenses (Per Person) Fire Legal Liability (Any One Fire or Explosion) Products /Completed Operations Aggregate General Aggregate (Other Than Products/ Completed Operations) Hired and Non -Owned Auto Liability (Each Occurrence) Stop Gap Liability Designated States: WA Bodily Injury by Accident - Each Accident Bodily Injury by Disease - Each Employee Bodily Injury by Disease - Aggregate ; UFSiIQ��!S. °— �,, t�4� A?dY Q- , ,c Limits of Insurance $1,000,000. $10,000 $100,000 $2,000,000. $2,000,000 $1,000,000 $1,000,000 $1,000,000 $2,000,000 INSURED Page 1 of 5 1- 29545703 HEYENRATH & 7iSSOCIATES 03/16/1996 03/16/1999 W. 1616 DEAN SPOKANE, WA 99201 PROPERTY AND MISCELLANEOUS COVERAGES Limits of Insurance Policy Deductible* $250 *Refer to Deductible Provisions in the Special Property Coverage Form for Deductible Exceptions. Property In Transit $15,000 Employee Dishonesty $10,000 Location 001 W. 1616 DEAN SPOKANE, WA 99201 Frame, OFFICE NOC Limits of Insurance Total Premises Limit of Insurance $223,500 Building $144,500 10% Inflation Guard Business Personal Property $79,000 Valuable Papers $15,000 Accounts Receivable $25,000 Money and Securities Inside $10,000 Outside $5,000 Demolition /Increased Cost of Construction $25,000 Computer Equipment $10,000 Backup of Sewers and Drains $25,000 INSURED Page 2 of 5 0 r] This is your official certificate of industrial insurance coverage. You are required by law to post this notice. Certificate of coverage Notice to employees: The employer named below is subject to the industrial insurance law of the state of Washington and is certified as an insured policyholder with the State Industrial insurance Fund. If you suffer a workplace injury or illness, you are entitled to workers' compensation benefits. Tell immediately if you are hurt. (Please fill in this space) -i1 J- Employer account number: ' ` 1 4 L Employer name: Address: WmMOR220o n State Fund Department of Labor and Industries, Olympia, Washington, 98504. Toll free 1- 800 -547 -8367. F211- 141 - 000 — (7/86) 0 0 CERTIFICATE OF COVERAGE EMPLOYER: This is your official certificate of industrial insurance coverage. You are required bylaw to post: both this certificate and copies WASHINGTON of the posters listed below. Call Labor and Industries toll -free at I- 800 - 547 -8367 to request copies of the posters. INDUSTRIAL INSURANCE STATE • Job Safetv and Health Protection (available in Spanish) • Your Rights as a Worker FUND • Family Care /Maternity • Notice to Employees DEPARTMENT OF LABOR AND INDUSTRIES PO BOX 44140 WORKER: The employer named below is an insured policyholder Olympia WA 98504.4140 Toll•frw:.1. 800.547.8367 with the Washington State Industrial Insurance Trust Fund. 11!"!�, t`;, 4t`,, Date.,, 4 .ocation 1.. 5 ...- AK n , ._ Employer Ci.n - h�51 rc.A.I AV i Your Unified Business Identifier is the only number you need when conducting business with the Washington state departments of Revenue, Licensing, Employment Security, Labor and Industries and the Office of the Secretary of State. 211 -141- 000111, 91'1 _ 09/18 '96 11:07 ID:L +I POLICCY GMT SVCS FWC:360- 902 -4633 • PAGE 1 Facsimile cover Sheet To: David Serrano Company: City of Arcadia Phone: (818) 574 -5443 Fax: (818) 445 -4918 From: Tuyen Pham- Manikhoth Company: Department of Labor and Industries Phone. (360) 902 -4820 Fax: (360) 902 -4633 Date: 09/18/96 Pages Including this cover page: 2 Comments: As promised... here is the letter of verification of coverage for Heyenrath & Associates. 09/18 '96 11:08 ID:L +I POLICY GM SVCS FAX:360- 902 -4633 • PAGE ♦ r'qr C ' IrM STATE OF WASHINGTON DEPARTMENT OF LABOR AND INDUSTRIES M) Boa 44000 r Olympia, washi"010" 90504.4000 CERTIFICATE- OF WORKERS' COMPENSATION INSURANCE September 18, 1996 City of Arcadia Attn: David Serrano 240 West Huntington Drive Arcadia, ('A 91007 Re fleycnrath & Associates Account ID: 499,128 -00 Unified Business Identifier (UHI): 601 158 408 THIS IS TO CERTIFY TI IAT lleyenrath & Associates has industrial insurance coverage with Labor and Indusuies in the state of Washington. Any person, defined under the Washington Industrial Insurance Act as a Washington employee, may he entitled to benefits for injuries or occupational disease he /she experiences while working for this business outside Washington's territorial boundaries. To qualify as a Washington worker, the employee must have been on the payroll of this employer at the time he/she was assigned to work outside the state of Washington fur this employer. An em Tloyee will also be considered a Washington worker if a contract of hire was signed in this state to woX in a state whose workers' compensation law does not apply to this employer. This certificate for extending coverage for Washington workers applies only to the Industrial insurance Laws of Washington and does not replace the Industrial Insurance Laws of another state, province or country . 7 herefore, employers should not consider that they are relieved of their obligations with respect to the laws of other jurisdictions where their employees are working. There is no limitation ofeoverage, and no policy period or cancellation date is issued by the state of Washington. Sincerely, Tuyen Pham- Manikhoth Policy Manager PO Box 44163 Olympia WA 98504 -4163 (360) 902 -4820 C1: Wlnb ' • • STATE OF WASHINGTON DEPARTMENT OF LABOR AND INDUSTRIES PO 8ox 44000 • Olympia, Washington 98504.4000 CERTIFICATE OF WORKERS' COMPENSATION INSURANCE September 18, 1996 City of Arcadia Attn: David Serrano 240 West Huntington Drive Arcadia, CA 91007 Re: Heyenrath & Associates Account ID: 499,128 -00 Unified Business Identifier (l1BI): 601 158 408 THIS IS TO CERTIFY THAT: Heyenrath & Associates has industrial insurance coverage with Labor and Industries in the state of Washington. Any person, defined under the Washington Industrial Insurance Act as a Washington employee, may be entitled to benefits for injuries or occupational disease he /she experiences while working for this business outside Washington's territorial boundaries. To qualify as a Washington worker, the employee must have been on the payroll of this employer at the time he /she was assigned to work outside the state of Washington for this employer. An employee will also be considered a Washington worker if a contract of hire was signed in this state to work in a state whose workers' compensation law does not apply to this employer. This certificate for extending coverage for Washington workers applies only to the Industrial Insurance Laws of Washington and does not replace the Industrial Insurance Laws of another state, province or country. Therefore, employers should not consider that they are relieved of their obligations with respect to the laws of other jurisdictions where their employees are working. There is no limitation of coverage, and no policy period or cancellation date is issued by the state of Washington. Sincerely, Tuyen Pham- Manikhoth Policy Manager PO Box 44163 Olympia WA 98504 -4163 (360) 902 -4820 Cl: 09911BOOC O 9 0 CITY OF ARCADIA REQUEST FOR PROPOSAL GENERAL LIABILITY AND WORKERS' COMPENSATION CLAIMS AUDIT RFP 9697 -4 INTRODUCTION The City of Arcadia is currently requesting professional service proposals from qualified firms or individuals to perform an audit of their general liability and workers' compensation claims. BACKGROUND The City of Arcadia is requesting proposals from qualified firms or individuals to perform an audit of the general liability and workers' compensation claims handling service of it's third party administrator. The City currently employees 352 full -time employees and 100 part-time employees to provide a full range of services to the community. Arcadia is a full service city offering Police Protection, Fire and Paramedic Services, Water Services, General Maintenance Services, Library and Recreation Services, and General City Hall functions. The City has been permissibly self- insured for workers' compensation since July 1, 1976. The program has been administered by a contracted claims administrator from the inception of self- insurance to the present. Both general liability and workers' compensation claims are currently being administered by Colen & Lee. The audit would take place, after proper notice to the administrator, at their offices in Diamond Bar, California. The City's Risk Control Officer, who manages the self- insured programs, will manage this project, coordinating the work schedule and reviewing the work product prior to issuance of the final report. OBJECTIVE The objective of this Request for Proposals is to receive proposals from interested, qualified individuals, firms, business', companies, corporations, consortiums, consultants, other entities, to perform an audit of the City's general liability and worker compensation claims, and to provide a final written report, providing in detail comments, suggestions, and critiques, of the program, including the efficiency and professionalism of the third party claims administrators, with the final objective to establish a contract for the claims audit. EXHIBIT "A" 0 0 WORKERS' COMPENSATION -AUDIT Page Two SCOPE OF WORK The contractor will provide professional services for performing an audit of the City's general liability and workers compensation claims, including a review of the efficiency and professionalism of the third party administrator. All proposals must contain, at a minimum, the following audit specifications: 1) Audit a representative sampling of all open claims (a minimum of 40% for each general liability and workers compensation) and 10% of all closed claims; 2) Review every open claim with a reserve of $20,000 or greater, exclusive of the representative sampling; 3) Review a minimum of 10% of all litigated open or closed claims, exclusive of the representative sampling; 4) Examine the technical competency of the claims unit and supervisor; 5) Determine the appropriateness of claims unit staffing and case loads; 6) Examine claims for compliance with the workers' compensation statutes and adherence to the changes as a result of the 1989 Reform Act in effect as of January 1, 1990, as well as pre- and post- Reform statutory requirements; 7) Review reserving practices, procedures and adequacy; 8) Compare actual claim file data with loss experience reports to determine accuracy and timeliness of the information; 9) Evaluate efforts to control and mitigate litigation. Evaluate management of legal counsel and efforts made to settle cases; 10) Determine efforts to identify and control subrogation cases; 11) Evaluate medical management efforts; 12) Determine if vocational rehabilitation referrals are made in accordance with statutory requirements; assess efficacy of vocational rehabilitation providers; EXHIBIT "A" WORKERS' COMPENSATION - AUDIT Page Three 13) Evaluate utilization and quality of vendor services, (i.e. investigation, legal, photo -copy services, etc...); 14) Determine accuracy of reporting to excess insurance carriers; 15) Evaluate efficiency and accuracy of claims administrator's systems and procedures; 16) Determine administrator's compliance with contractual requirements; 17) Review the City's internal cost allocation system to determine adequacy for assigning responsibility; and, 18) Provide a detailed written report outlining findings, conclusions, and recommendations with regard to all areas as specified above. PROPOSALFORMAT The original proposal and one copy, clearly marked, shall be submitted to the attention of Purchasing Officer, City of Arcadia, 240 W. Huntington Drive, Arcadia, CA 91007. The proposal should be submitted, including a contents sheet, using the following format: A. A cover letter summarizing the proposal; B. Credential and Experience: Provide a brief history of the organization. Provide names and qualifications of the proposed project manager and other key personnel to be assigned to the project. Provide a list of clients for which these services have supplied within the last five years. C. Subconsultants: Provide a list of subconsultants to be used, if any, as part of your project team, along with their qualifications. If no subconsultants are to be used, please note this in your proposal. EXHIBIT "A'$ • 0 WORKERS' COMPENSATION - AUDIT Page Four D. Project Plan: Provide a narrative account of your understanding of the project along with a proposal for accomplishing the scope of work. Develop a time line to accomplish the audit and submit recommendations. E. Fees; Outline a proposed fee schedule for services and training in the following manner: 1. Basic Services - hourly fee schedule 2. Additional Services (if any) 3. Consulting Fees (if any) 4. Reimbursable Expenses (if any) F. Requests for waiver of any portion of this proposal, or request for waiver of any insurance requirements identified in the attached draft agreement. SELECTION PROCEDURE Tentative Schedule: Proposal Due Date: Staff review of proposals: Consultant selected: SELECTION CRITERIA July 12, 1996 July 15 - 18, 1996 July 30, 1996 All proposals received by the indicated deadline will be considered by the City. Selection will be made on the following criteria: A. Completeness of response to Request for Proposal. B. Professional experience and reputation of firm or consultant. C. Experience of individuals assigned to the project. D. Specific experience with this type of project. E. Satisfaction of former or current clients. F. Fee structure. EXHIBIT "All 0 0 WORKERS' COMPENSATION -AUDIT Page Five DISCRETION AND LIABILITY WAIVER The City reserves the right to reject any and all proposals or to request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals pursuant to the consultant selection criteria contained herein. The City is not liable for the costs incurred by the proposers for the preparation of the proposals. The City may require consultant to participate in additional rounds or more refined submittal before the ultimate selection of a consulting team are made. These rounds could encompass revision of the submittal criteria in response to the nature and scope of the initial proposals. The consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. Although, it is the intent to choose only one of the most qualified consultants to perform the work described herein, the City reserves the right to contract out any and all portions of this project to any number of qualified candidates. All proposals shall be binding for a period of six (6) months after the delivery date and may be retained by the City for examination and comparison. DRAFT AGREEMENT Attached is a copy of the "Agreement for Consulting Services ". Agreement is subject to change and revision pursuant to review by the City Attorney. BUSINESS LICENSE Successful consultant shall be required to obtain a City of Arcadia Business License in the amount of $63.10 prior to commencing of work. DIRECTIONS FOR DELIVERY OF PROPOSAL Two (2) copies of the project proposal shall be delivered in a "sealed fashion" no later than 4:00 p.m. on July 12, 1996, at the following location: City of Arcadia, Purchasing Office, 240 W. Huntington Drive, Arcadia, CA 91007. Proposers wishing to mail proposals in a "sealed fashion" shall address same to :City of Arcadia, Purchasing Office, P.O. Box 60021, Arcadia, CA 91066 -6021. EXHIBIT "A"