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HomeMy WebLinkAboutStaff Report 301-09TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER HUMAN RESOURCES DATE: JULY 6, 2009 CMR:301:09 SUBJECT: a Contract Tbree Years with Gregory Bragg & Associates in a Total Anlount Not to Exceed $783,000 for Workers' Conlpensation Claims Administration Services RECOMMENDATION Staff recolmnends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with Gregory B. Bragg & Associates (Bragg) effective July 1, 2009 to provide workers' cOlnpensation clailns adlninistration services. The total an10unt for the first year of the contract will not exceed $250,000. 2. Authorize the City Manager or his designee to exercise the option to renew the contract in the amount not to exceed $260,000 for the second year; and in the third year by an alnount not to exceed $273,000, provided Bragg is responsive to the City's needs and the quality of its work is acceptable during the tenn of the contract. BACKGROUND Proj ect Description The work to be perfonned under the contract is for third-party claiIns administration services for the City's workers' cOlnpensation prograln. These services are currently provided by Gregory B. Bragg & Associates (Bragg). These services include: the processing of all workers' cOlnpensation claiIns in accordance with applicable Labor Code regulations; engaging services related to the investigation and defense of claiIns; engaging the services of appropriate Inedical providers; detennining what benefits, if any, should be paid; handling all the necessary fonns in each reported claiIn; and performing all tasks in a tilnely manner as required under California workers' cOlnpensation laws. The tenn of the current contract with Bragg ends on June 30, 2009. As it is the City's obligation to ensure that achninistration of the workers' cOInpensation progratn is nlanaged in the Inost effective Inanner, the City requested proposals froln other claims adIninistrators to see what alternatives other finns had to offer. DISCUSSION Selection Process Staff sent a request for proposals to five finns on March 9, 2009. The proposal period was twenty-three days. A total of seven firms subInitted proposals ranging between $240,000 to $285,000. A selection advisory cOlmnittee consisting of HUInan Resources staff and a claitns auditor reviewed the proposals. The proposals were carefully reviewed in response to the Request for Proposal relative to the following criteria: III Public agency experience, specifically with California Labor Code 4850 public safety officers benefits (Labor Code 4850 provides injured public safety eInployees with salary continuation up to one year in lieu of temporary disability and requires additional handling and knowledge); iii Stability of ownership and Inanagement experience; III Ability to provide innovative programs and services; II Superior reporting technology and online capabilities; and III Custolner service capability. Gregory B. Bragg & Associates has an exhaustive list of California cities they work with and thus are able to offer knowledge and resources to meet the needs of the City's workers' cOInpensation program. Claitn frequency and cost have decreased in the past three-year period and this is attributed to the diligence of Bragg claitn staff and the partnership established with the City's risk Inanagelnent staff. While the new clailn total is not yet available for 2008-2009, the previous two year totals of new clailn frequency decreased froln 143 in 2006-2007 to 133 in 2007-2008. The total clailn cost decreased by 22 percent. In addition, Bragg has provided a computer systenl with superior features and reporting capabilities that other third-party adnlinistrators have not offered. Specifically, Bragg would be able to provide reports that the City Auditor has recommended Risk Managelnent provide to City Inanagers. Finally, Bragg has a cOInmitInent to identifying and defending fraudulent clailns that has exceeded the City's expectations. The tealn successfully referred two claitns that were prosecuted by the District Attorney, sending the strong Inessage that fraud has serious repercussions. Bragg was selected because it delnonstrated its ability to provide a high level of quality, innovative services and results in its clainls adIninistration services not evident by the other proposals submitted. RESOURCE IMPACT Bragg will charge a flat not to exceed $250,000 for the first year of the contract. The fees for the second year will not exceed $260,000 and the third year 'will not exceed $273,000. The total cost for this contract increases by approxilnately one and one-half percent fronl the CUITent tlu'ee-year contract. Funding for this agreenlent is currently provided in the Fiscal Year 2010 and 2011 budgets in'the anlount of $269,000 for each year. Based on the not to exceed actual alnounts of the new contract, the City will experience a $28,000 savings over the next two-year budget period. POLICY IlVIPLICATIONS This reconunendation is consistent with current City policies. ENVIRONMENTAL REVIEW This is not a project requiring review under the Califonlia Enviromnental Quality Act (CEQA). ATTACHMENTS A: Agreelnent No. C10131030 B: Exhibits to Agreelnent PREPARED BY: Sandra T .R. Blanch, Assistant Director, HUlnan Resources DEPARTMENT HEAD: RUSS CARLSEN I Director of Human Resources CITY MANAGER APPROVAL: ---~~~~-=--'f--f-:;;...~f--~~--­ JAMES C1v1R:30 1 :09 Page 3 of3 crry OIT PALO ALTO CONTRL\.CT . CI0131030 AGREElVIENT BETvVEEN TI-IE CITY OF PALO ALTO AND GREGOH.Y B. BRAGG and ASSOCIATES FOR PROFESSIONAL SERVICES for ADMINISTRATION TIlE CITY OF PALO ALTO -INSURED vVORICERS CO]\1PENSATION PROGRAl\1 This is entered on this of July, 2009, between CITY OF PALO ALTO, a California chartered Inunicipal corporation ("CITY!!), and GREGORYB. and ASSOCIATES, a CalifOlnia Corporation, located at One Siena Gate Plaza, Roseville, CA 95678. (PH) (916)783-0100 CCONSULTANT1!). RECITALS follo'wing are a substantive portion of this A. CITY intends to its CUlTent Insured Workers' COlnpensation Progrmn ("Project") and desires to a consultant to provide serVIces workers' cOlnpensation third party adininistration ("Services"). CONSULTANT has that it the necessary professional qualifications, capability, V'-'L.1.uvw and/or certifications to provide C. CITY in reliance on these representations desires to CONSULT ANT to provide the as more fully described in C.'A", attached to n1ade a pati Agreelnent. NOW, THEREFORE, in consideration of the recitals, covenants, and conditions, Agreen1ent, parties AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perfon11 Services described in Exhibit accordance the tenns conditions 0r"-11-(")1,"\""r! The perforn1ance of all Services be to the satisfaction The tern1 Agreelnent fron1 the date full execution June 30, 2010, tern1inated earlier pursuant to Section 19 of this Agreen1ent. CITY to t\vo additional one periods. Time is of the essence in perfonnance of Services under this CONSULTANT shall complete the within the ternl of this Agreenlent and in accordance 'with the schedule set forth in Exhibit "B", attached to and nlade a paIi of this Agreenlent. f-\ny Services for \vhich times for performance are not specified in this Agree111ent shall be cOlllinenced and completed by CONSULTANT in a reasonably prolnpt and timely manner based upon the CirCU111stances and direction C0111nlUnicated to the CONSULTANT. CITY's agreenlent to extend the ternl or the schedule for periOTI11anCe shall not preclude recovery of danlages for delay if the extension is required due to the fault of CONSULTANT. The conlpensation to be paid to CONSULTANT for perfornlance of the Services described in Exhibit , including both paY111ent for professional services and reinlbursable expenses, shall not exceed: For Year One: two hundred fifiy thousand dollars ($250,000.00); If applicable, for Year Two: two hundred sixty thousand dollars ($260,000.00); and Year Tlu-ee: two hundred seventy thTee thousand dollars ($273,000.00). The applicable rates and schedule of paYInent are set out in Exhibit "C", entitled "COMPENSATION," which is attached to and nlade a part of this Agreement. Additional Services, if any, shall be authorized in aCCOrdaI1Ce with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any conlpensation for Additional Services perfOTIllCd without the prior written authorization of CITY. Additional Services shall mean any work that is deternlined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". In order to request paynlent, CONSULTANT shall subnlit nlonthly invoices to the CITY describing the services periornled and the applicable charges, including reinlbursable expenses, based upon the CONSULTANT's amlual compensation (set f01ih in Exhibit "C"). The infonnation in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the CITY's project Inanager at address specified in Section 13 below. The CITY 'will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be perionned by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perionll the Services required by this Agreelnent and that the personnel have sufficient skill and experience to perfoml the Services assigned to theln. CONSULTANT represents that it, its employees and subconsultants, ifpernliUed, have aIld shall l11aintain during the term of this Agreement all licenses, pennits, qualifications, insurance and approvals of whatever nature that are legally required to perfonn the Services. All of the services to be furnished by CONSULTANT under this agreement shall Ineet the professional standard and quality that prevail anlong professionals in the SaIne discipline and of similar knowledge and skill engaged in related work throughout Califonlia under Sa111e or sinlilar c ircull1staIl ce s. 3 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\ClO131030 Greg Bragg-Workman's Comp\Contract Document.doc SECTION 7. COlVIPLIA.NCE WITH LAWS. CONSULTANT shall keep itself informed of and in c0111pliance 'with all federal, state and local laws, ordinances, regulations, and orders that may affect in any rnanner the Proj ect or the perforn1ance of the Services or those engaged to perfon11 Services under this Agreement. CON SULTANT shall procure all pennits and licenses, pay all charges and fees, and give all notices required by law in the perfonnance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULT ANT shall conect, at no cost to CITY, any and all errors, on1issions, or an1biguities in the work product subn1ittecl to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design dOCUlnents to construct the Project, CONSULTANT shall be obligated to correct any and all enol'S, Olnissions or an1biguities discovered prior to and during the course of construction of the Project. This obligation shall survive teI111ination of the Agreelnent. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estilnates of probable construction costs at each phase of design submittal. If the total estilnated construction cost at any submittal exceeds ten percent (l 0%) of the CITY's stated construction budget, CONSULTANT shalllnake recOlnmendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to Ineet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is lmderstood and agreed that in perfom1ing the Services under this Agreelnent CONSULTANT, and any person eInployed by or contracted with CONSULTANT to furnish labor and/or n1aterials under this Agreelnent, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are n1aterial considerations for this Agreen1ent. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the CITY n1anager. Consent to one assigm11ent will not be deelned to be consent to any subsequent assignInent. Any assignment Inade without the approval of the CITY Inanager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the vvork to be perfoI111ed under this Agreelnent without the prior written authorization of the CITY Inanager or designee. CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assun1es no responsibility whatsoever concerning cOInpensation. CONSULTANT shall be fully responsible to CITY for all acts and Olnissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the CITY Inanager or his designee. 4 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contracts\Cl 0 131030 Greg Bragg-Workman's Comp\Contract Document.doc CONSULTANT will assign Randall Slnith, President, as the Project Director to have supervisolY responsibility the performance, progress) and execution of the Services and Karen Callahan, Vice President ofClain1s, as the Project IYfanager to represent CONSULTANT during the day-to-day 'work on the Project. If circumstances cause substitution of the project director, project coordinator, or &'1Y other key personnel for any reason, the appointlnent of a substitute project director and assignn1ent of any key new or replacelnent personnel will be subj ect to the prior written approval of the CITY's proj ect n1anager. COl\SULTANT, at CITY's request, shall pro111ptly relnove personnel vv'ho CITY finds do not perform Services in an acceptable n1anner, are uncooperative, or present a threat to the adequate or tin1ely completion of the Proj ect or a threat to the safety of persons or property. The CITY's project n1anager is Sandra Blanch, Hun1an Resources Depart111ent, 250 Han1ilton Avenue, Palo Alto, CA 94303, Telephone: 650-329-2294. The project n1anager will be CON SUL T ANT's point of contact with respect to perfonnance, progress and execution of the Services. The CITY may designate an alternate project manager from time to tilne. SECTION 14. OWNERSI-IIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, doculnents, other Inaterials and copyright interests developed under this Agreen1ent shall be and ren1ain the exclusive property of CITY without restriction or lilnitation upon their use. COt~SULTANT agrees that all copyrights which arise fron1 creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all clailns to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, ifany, shall n1ake any of such n1aterials available to any individual or organization without the prior written approval of the CITY Manager or designee. CONSULTANT n1akes no representation of the suitability of the work product for use in or application to circulnstances not conten1plated by the scope of work ~;,..;;;"...:;;".;;;;;...;;:;....:;..;.....;;;:..;;;;..;;....;;;..;;:...=...;;;;..;;;;.,.;~_ CONSlTLTANT will pennit CITY to audit, at any reasonable tillle during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to n1atters covered by this Agreen1ent. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier tennination of this Agreement [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harn1less CITY, its Councilillembers, officers, employees and agents (each an "Inden1nified P31iy") fron1 and against any all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs 311d expenses whatever nature including attorneys fees, experts fees, court costs and disbursen1ents ("Clain1s") that out of, pertain to, or relate to the negligence, recklessness, or willful n1isconduct of the CONSULTANT, its officers, eillployees, agents or contractors under this Agreel11ent, regardless of \vhether or not it is caused in part by an Indemnified Party. ~(OptiOl1 B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indelnniiy, defend and hold harnlless CITY, its Councillnenlbers, officers, enlployees and agents (each an ;;Indelnnified Party") frOln and against any and all delnands, claims, or liability of any nature, including death or injury to any person, property dmnage or any other loss, including ali costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disburselnents ("Clainls") resulting from, arising out of or in any manner related to perfonnance or nonperfor1Ylance by CONSULTANT, its officers, en1ployees, agents or contractors under this Agreenlent, regardless of \vhether or not it is caused in part by an Indelnnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indenlnify an Indenlnified Pmiy fronl Clainls arising fronl the active negligence, sole negligence or willful nlisconduct of an Indelnnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indelnnification. The provisions of this Section 16 shall survive the expiration or early tennination of this Agreement. SECTION 17. WAIVERS. The waiver by either pmiy of any breach or violation of any covenant, term, condition or provision of this Agreenlent, or of the provisions of any ordinance or law, will not be deelned to be a waiver of any other tenn, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the sanle or of any other term, covenant, condition, provision, ordinance or 1mi\'. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and nlaintain, in full force and effect during the ternl of this Agreelnent, the insurance coverage described in Exhibit liD II • CONSUL TANT and its contractors, if any, shall obtain a policy endorsenlent nmning CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided tlu'ough carriers with AM Best's I(ey Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perfonn Services under this Agreement will obtain and lnaintain, in full force and effect during the ternl of this Agreelnent, identical insurance coverage, nmning CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be flIed with CITY conculTently with the execution of this Agreement. The certificates will be subj ect to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreelnent. 6 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER -CM FOLDERS\KATHY\Contracts\C 1 0131030 Greg Bragg-Workman'S Comp\Contract Document. doc 18.4. The procuring of such required policy or policies of insurance vlill not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indenmification provisions of this Agreen1ent. Notwithstanding the policy or policies of insurance, CONSULTANT \ivill be obligated for the full and total an10unt of any damage, injury, or loss caused by or directly arising as a result of the Services perforn1ed under this Agreelnent, including such dan1age, inj ury, or loss arising after the Agreelnent is tenninated or the tenn has expired. SECTION 19. TERrvIII~ATION OR SUSPENSION OF AGREEI\1ENT OR SERVICES. 19.1. The CITY n1anager n1ay suspend the perforn18.l1ce of the Services, in whole or in part, or tenninate this Agreement, with or vvithout cause, by giving ten (10) days prior written notice thereof to CONSULTANT . Upon receipt of such notice, CONSULTANT will in1n1ediately discontinue its performance of the Services. 19.2. CONSULTANT may ten11inate this Agreement or suspend its perfOlmance of the Services by giving thiliy (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of perforn1ance by CITY. 19.3 . TJpon such suspension or tem1ination, CO]\JSUL Ti~l.NT shall deliver to the CITY Manager ilnn1ediately any and all copies of studies, sketches, drawings, cOlnputations, and other data, whether or not completed, prepared by CONSULT ANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in com1ection with this Agreen1ent. Such n1aterials will become the property of CITY. 19.4. Upon such suspension or tennination by CITY, CONSULT ANT will be paid for the Services rendered or Inaterials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or tennination; provided, however, if this Agreelnent is suspended or terminated on account of a default by CONSULTANT, CITY \ivill be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be Inade by the CITY Manager acting in the reasonable exercise of his/her discretion 19.5. No payment, partial payn1ent, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreen1ent. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified n1ail, addressed as follows: To CITY: Office of the CITY Clerk CITY of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 7 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\CI0131030 Greg Bragg-Workman's Comp\Contract Document.doc \Vith a copy to Purchasing Manager To CO~SlJLTANT: Attention of the project director at the address of CONSULTANT recited above 21.1. In accepting this Agreenlent, CONSULTANT covenants that it presently has no interest, and v"illnot acquire any interest~ direct or indirect, financj al or otherwise, which would conflict in any nlanner or degree with the perf0r111anCe of the Services. 21.2. CONSUL T ANT further covenants that, in the perfonnance of this Agreement, it will not enlploy subconsultants, contractors or persons having such an interest. CONSULTANT celiitles that no person who has or will have any financial interest under this Agreenlent is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Goven1ffient Code of the State of California. 21.3. If the Proj ect Manager detennines that CONSULTANT is a "Consultant" as that tenn is detlned by the Regulations of the Fair Political Practices Comnlission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure doculnents required by the Palo Alto IVIunicipal Code and the Political Refonn Act. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the perfonllance of this Agreement, it shall not discrinlinate in the enlploynlent of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, Inarital status, fanlilial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrilnination Requirements and the penalties for violation thereof, and agrees to meet all requirelnents of Section 2.30.510 pertaining to nondiscrilnination in employnlent. ~~~~~..:!::!;!;...:~~~..!.!;;!;;;~~::!:!::!,,;!;....;!,...!;.!;;!:~~~~,,!::::,,:!,:~~~.!..::;;;!. The CITY of Palo Alto is a green business and works to purchase and provide products in an envirmunentally sustainable luanner. CONSULTANT 'will use production nlethods that reduce waste and environnlentally toxic products, as well as have less packaging. CONSULTANT will adhere to the standard that printed nlaterials will be, at a minimunl, printed on 30% post consumer recycled paper with vegetable based ink. The designer will check with the project manager to discuss the maximum recycled content paper available for each project. FSC (Forest Stewardship Council) certified paper that is '·process free" is preferred. CONSULTANT will use Inethods that reduce energy use and thus the carbon footprint for the developn1ent, production and delivery of products. CONSULTANT shall adhere to the CITY's Envir011l11entally Preferred Purchasing policies as nlay be amended fr01n time to tilne. 8 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\CI013I030 Greg Bragg-Workman's Comp\Contract Document.doc 24.1. This Agreelnent "will be governed by of State California. 24.2. In event that an action is brought, the patiies agree that trial of such action be vested exclusively in the state courts of California in the County Santa Clara, State California. The prevailing party in action brought to enforce the provisions this Agreelnent nlay recover reasonable costs and attorneys' fees expended in connection with that action. The prevailing paliy shall entitled to recover an alnount equal to fair n1arket value services provided by attorneys employed by it as "veIl as at1y attorneys' fees paid to third parties. 24.4. This document represents the entire and integrated agreement between the patiies and supersedes all prior negotiations, representations, and contracts, either written or oral. This docun1ent may be all1ended only by a written instrull1ent, which is signed by the parties. 24.5. The covenants, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, adn1inistrators, assignees, and consultants of the parties. 24.6. a court of cOlnpetent jurisdiction finds or rules that any provision of Agreelnent or any an1endn1ent thereto is void or unenforceable, the unaffected provisions of this Agreen1ent and amendn1ents thereto will remain in full force and 24.7. All exhibits refened to in this Agreement and any addenda, appendices, attachn1ents, and schedules to this Agreelnent which, from tin1e to time, may refened to any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreen1ent. 24.8. This Agreement is subject to the fiscal provisions of the Charter of the of Palo Alto and the Palo Alto Municipal Code. This Agreement will tenninate without any penalty (a) at the end of any year in the event that funds are not appropriated for the following fiscal year, or (b) at at1y time within a fiscal year in the event that funds are only appropriated a pOliion of the fiscal year and funds this Agreement are no longer available. Section 24.8 shall precedence in event of a con±1ict with any other covenant, tern1, condition, or provision this Agreement. 9 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contracts\Cl 0 131 030 Greg Brugg-Workman's Comp\Conlract Document. doc !4i002 24.9. The individuals executing this Agreclrtent represent and warrant that they have the legal capacity and authority to do so OIl behalf of their respective legal entities. 24.10 All W1checked boxes do not apply to this agreelnent. IN WITNESS W}IEREOF, the parties hereto have by their duly authorized representatives executed this Agreelnent on the date first a.bove written. CITY OF PALO ALTO o City Manager (Required for contracts over $85,000) o Purchasing Manager (Required for contracts over $25, 000) DContracts Administrator (Required for contracts under $25,0000 APPROVED AS TO FORM: Senior Deputy CITY Attorney Attachments: EXHIBIT "A": SCOPE OF WORK GREGORY B. BRAGG and ASSOCIATES By:r(~ c...k~ Name: ~~.4-{...l.. <--S.rh l~ Title: ' <.f!t eSt 0 c ~ (J EXHIBIT "B": EXI-IIBIT "C": SCHEDULE OF PERFORMANCE COMPENSA TION EXHIBIT ~'D'"): INSURANCE REQUIREMENTS/CERTIFICATE of INSURANCE 10 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contracts\C 1 0 131 030 Greg Bragg-Workman's Comp\Contract Document.doc EXHIBIT A EXHIBITB EXHIBIT C EXHIBITD ATTACHMENT B EXHIBITS TO AGREEEMENT Scope of Services Workers' COlnpensation Progranl Adnlinistration Schedule of Perfonnance COlnpensation Certificate of Insurance EXHIBIT A SCOPE OF SERVICES WORYiliRS' COMPENSA1rION PROG~i ADl:1INISTRP .. TION o s Scope of Se s is to ere that the CITY agrees on the service leve s outlined herein this in an effort to maint the highest cus orner service standards to the benefit of the CITY. I. INTRODUCTION C TY of Pa 0 (CITY), compensat in the Stat 0 i self insurance (Certificate #7102) this Scope of S ces, Gregory B. shall ster the Workers' Palo Alto, in accordance with the terms set forth in s scope 0 s ces. workers' a on of excess coverage. Under & Associates ( ) of the CI?Y 0 this and as I . CLAIMS MANAGEMENT IREMENTS AND SCOPE OF SERVICES CONSULTANT s: A. To , on behal 0 the CITY, all s 0 st Ilness relating to CITY oyees and ed to B. To engage the services 0 person(s) or firm(s) other than 1 , upon en approval from the CITY, for s ces relating to the stigation and de e of claims, and to coordinate services ancillary to cIa C. To in a time and accurate manner, on behalf of the CITY, what benefits, if any, should be or rendered under the applicable workers' compensation laws in each ed claim; D. To pay compensat on, medical expenses, Allocated Loss es, and other benefits as pres d by law out of funds ded by the ITY; E. To rna ain a cIa fil on each ch shal be available to the CITY at all times ion and to , at a t and to be determined the C TY, claim ile ews with the CITY at a location to be determined the CITY; F. To aggressively handle s ion c~ against responsible parties order to preserve the CITY's right to recove y; 11 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\Cl 0131030 Greg Bragg-Workman's Comp\Contract Document.doc G. To consult with unction with the ect matter of s H. To provide 211 e cient operation including customiz to prepare and file necessary of the Wor checks be all legally the CITY on any the CITY which i rms rs' anc supplies for COBpensation the CITY name red forms and the CITY of Palo Alto in e I. The examiner ass the CITY's program other accounts. The experience and a y and will not be shall have a of two years 4850 to any years s other than these zed by the CITY. J. Supervisor(s) manager(s) must have a of ten (10) years of be SIP supervising workers' of contract start t and K. The CITY reta the right to control the selection of all legal, nurse case responsibil y for Assistant rector and t ive services. The such s ces sha 1 be vIi th the and/ or the CITY Safety Officer. The contractor's cl services. shall the vendor L. CITY the right to control the selection of subrogation sive subrogation ces are desired as M. ed tation Representat services the approva Officer. lity of Bragg with N with any that reassign noti allow the shall be notified p ims person assigned to , at any time during this any person ass CITY prior to reass CITY to be involved CITY of Palo Alto selection of to the account; O. n the event that the CITY, at this , is dissatisfied to the account, the CITY will not and/or the CITY to any staffing the account. In the event , intends to to the account, Bragg of any staff member and s on-making process. the right to and assistant 1 time during the term of claims person assi of their diss s If after 60 s from not fication, the CITY still dissat sfied, Bragg shall remove said person ass 12 Professional Services is Rev. January 2009 S:\ASD\PURCH\SOLlCITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\C10I31030 Greg Bragg-Workman's Comp\Contract Document. doc ate rece written noti cation rom the CITY of the desire for the removal of person; To logs, check the CITY sters, ris er-generated loss runs, case s and any other s requested by the C TY; re to be Q. To biannually a loss for a that have had no act y for the six months; R To provide monthly, a cl as described the TY two weeks or less after end of the period but not ed to: workers' compensation cl ; workers' compensation year claim summary summary modi duty, status report; and summary S. To utilize a third y vendor, upon the 0 the CITY, to and cost control, all and drug bills and to assist the CITY with trial medical cl itals will CITY with a (PPO) discount at fees less than the Fees Schedule (IFS), and to an zed 1 st medical s result from at a fre 0 be ned by the CITY; T. 0 utilize a third party vendor, upon o the CITY, to Utilization Review s approval stent with ACOEM s and the Cali Labor Code , duration and appropriateness of all services the claim life, and to an it zed list of al medical s s result from , at a to be deter~ined by the CITY; U. To subscribe to f of CITY, enrollment in the Index Bureau em compensation cl in Cali Bureau each and every Indemnity claim V. of To provide toll-free "800" C TY to contact cIa ion; and the CITY, for workers' to to the Index led; numbers for emp s questions or concerns W. To a ete and detailed electronic convers o a 1 claims data. X. To coordinate and file meetings CITY staff and cl s on a y basis and attend ional th other C TY staff as red. 13 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLlClTATiONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\Cl0131030 Greg Bragg-Workman'S Comp\Contract Document.doc III. SPECIAL CLAIMS HANDLING SERVICES agrees to rvice: A. To establish I upon receipt of 5020) from the CITY. de the fo Lost T Fi st cial CIa five (5) ury (Form The def ion of an y Claim shall be an indust al ury or illness c are claimed: im for which 0 the fol benefits 1. Temporary sabi ty 2. Permanent Disability 3. fe Pension 4. Death; B. To r with the Ass stant HR quesLlons, s, 0 issues assist CITY rtment managers and quest ,concerns, or issues invo C. To ate y not the Assistant rector, by and to a copy 0 a Reserve ation , of any reserve s over twenty-thousand dollars ($20,000.00); To review and obtain advance notice by Assistant rector 0 HR or CITY Saf Officer of any Claim Is; E. To close aims within twelve (12) months from the date 0 injury or twelve ( 2) months from last day treatment. The C TY 11 be updated on closures thi (30) days. to this rement sha 1 be reported in writing to the CITY; F. To confer Ass stant Director of HR or Safety Officer as the ions arise: To a Vocat Rehabilitat Plan for injuries to (Year to be det To refer a claim to a law firm or att To approve surveil ances, sub rosa, or other t ions To obtain settlement autho y over fteen-thousand dollars ($15,000.00) ; G. To ly ac edge rece of il and email messages within 24 4 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\Cl0131030 Greg Bragg-Workman's Comp\Contract Document. doc rt. wi To consis errtly leve 0 custome~ s rvice CITY staff and injured c· Jr To ly furnish the or Safet fficer wall recuired ma~erl papers, which consist of but shall ~ot be imited to: lications and Other Legal Documents Work Rest s Letters from Vocational Private nvestigation Summa t Notices a of Claim Not s s s, as needed, Retirement; cases an Indus al v . To to the C TY for approva and c sure within (5) Rat of rece of written notice, all undi Advisory K. To the CITY a check expense report that ba s with the monthly loss report. These reports will be sent no later than ten (10) days fol the end 0 each month to the Assistant Director 0 To establ h controls the cost of defense. procedures 0 manage and IV. S IAL CLAIMS HANDLING SERVICES OF THE CITY The CITY agree to provide the al claims hand:J.. se s: A. indust ly report to al s of uries or illnesses; B. To notices, or any stration; forward to egaJ... corre a 1 applicat perta s, reports, to claims C. empl v\Tor applicable, to make all att s poss to assign Palo Alto s to modi ed duty pursuant to the CITY 0 rs' Compensat Modified Duty Policy; D. To make available to or services for industr 1 pay all Allocated in of claims, inc ustment, liti i funds for the payment 0 benefits or illnesses; ses de : all losses , settlement, or resist expenses; and 15 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contracts\Cl 0 131030 Greg Bragg-Workman's Comp\Contract Document. doc F. To pay all s ce fees as prescribed and Exhibit B -Fee Schedule. V. PROGRAM MANAGE01SNT A. fol The Claims rvisor shall be responsible for the 1. Review and assign 2. Review to firm is whethe 3. to det new claims; referral to outside sti ion will each review or not; if referral to defense counsel is of the fol occur: a. b. c. d. e. f. g. h. icant representat Serious and Wil Misconduct scovery 0 sitions, etc that may to be resolved by the WCAB ions value over $25,000 The sor 11 document every cla file which one or in more of the above criter sts cat whether 0 not the cl s be referred to defense counsel and the reas ng for the referral; 4. Oversee the deve 0 the cl examiner's action an in those cases in which ous alternat be appropriate. Supe sor will contact the CITY of Palo Alto by tel email to cate the need to cons r alternat options their or concurrence; 5. e and attend file review meetings with CITY staff and claims sta on a er y basis and attend 1 meetings other CITY sta f, as necessary; and 6. Establish a personal relat with the pr medical vendors used the CITY of Palo Alto and maint a professional rapport and ongoing cat to discuss issues as necessary. B. S or Cl following: 1. o make initi Examiner shal be responsible for the contact with all 16 ured workers by Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATI-fY\Contrac1s\CI0131030 Greg Bragg-Workman's Comp\Contract Document. doc tel contac:: (2 ) 2. fol del a. b. c. sab I twenty-four (24) hours y claim from C be :made \Ali th the council. Dates, s must be documented ured workers unless t,he e tt~e date ain benefits and ation claim Follow-up at least every r re~ains off wor details of all file; when any of the is represented: the delay process when claims are aced on the reason for denial a permanent and stationary and rat is denied; , permanent 3 . To contact the CITY on delay cIa o action plan; 4 . "he cIa shall adhere to the fol three-tier s em: cal reatment a. util z icians: most appropriate medical schedul service or authorized b. modified 1 therapy treatment shal authorized at facilities located in Palo Alto unl ss otherwise approved by the Assistant D ctor of HR or Safety Officer; 2. In order to expedite proper s soan s the claims examiner will have to authorize initial s MRI's, CT Scans, s referral status shall Claims examiners duty for al C communication 1 provider and; e verba_ c. oyees fied work status shall be their usual and customary duty status as soon as poss to 5. In all cases, the cl maintain medical control 0 examiner must att to ga and cases per labor code 4600 unless a 17 Professional Services Rev. January 2009 S:v\SD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHy\Contracts\C1013 1030 Greg Bragg-Workman's Comp\Contract Document. doc ician's statement is on fi e by the or wr icant. en physi s VI. cos GUAPu.Z\NTEE agrees: e the CITY 0 Palo Alto at least a A. To closure ratio in each calendar year of service treat i this contract. this goaL is not wi ~ credit the C 7Y of Palo Alto $5,000.00 of the annual service fee. ee the CITY 0 Pa 0 to that at least 32 0 the ed during year wi be closed by the end will fee. the service year. If this goal is not attained, the CITY 0 Palo Alto $5,000.00 of the annual s VII. PENALT ES Penalt es (WCAB); the sed by the Workers' rtment of ~7orkers ' uH,~"udation, the Federa Government, or forum in the State of Cal al of claims shall be the respons ed as a result of actions taken by express written direction of the CITY. Board any fornia, 1 y of at the ed as a result of of ibil Y of if no formal request for was by or from the Ass stant rector 0 HR. of 1 Penalties imposed as a result of her party's to y with the strat rules, ions and the Labor Code of the State of California shall be the responsibility of the culDable the C with a erly account 0 all on behalf of the CITY, pena and the fic y Penalties out of the CITY's bene account and shall then e the CImy hin thirty days (30) of the issuance of the and fines report, for those penalties and fines which are the lity of Bragg under the terms and condit of this 8 Professional Services Rev. January 2009 S :\ASD\PU RCH\SOLlCIT A TlONS\CURRENT BUYER -CM FOLD ERS\K,t\ THY\Contracts\C 1 013 1030 Greg Bragg-Workman's Comp\Contract Document. doc EXHIBIT "B" SCI-IEDULE OF PERFO~'\1ANCE CONSULTANT shall perform the Services so as to cOlnplete the necessary Tasks in a tilnely 111mmer and to the reasonable satisfaction of the CITY. Claims ReQorting All new losses are entered in our claims ~nanagcment software within one working day. We promptly prepare and provide benefits and the appropriate notices within thc time periods mandated by the Departmcnt of Industrial Relations. \Vithin 24 hours of claim receipt, three-point contact is made to the employee, employer and physiciari. As many injured workers are unfamiliar with the Workers' Compensation system, claims examiners use their initial conversation with to provide a detailed description of workers' compensation benefits and answer any questions the injured worker may have regarding this process. Temporary disability benefits are paid upon verificatiortof lost time with the City and if the medical treatment provider supports the lost time as being related to the injury. Bragg also tracks LC 4850 employees and their benefits. In addition, Bragg provides computer system capabilities to include the availability of the City to make temporary disability payments through the normal City payroll system. Bragg will follow ail procedures . and use appropriate forms to report claims to, and request reimbursement from, the Excess Carrier according to the specific policy guidelines. Bragg will provide on-line secured computer access to view claim notepads and correspondence as well as electronic transmission . of the Employer's Report of Injury/Illness (5020). The on-line 5020 reporting module is proprietary to Bragg. Communication In our continuing effort to maintain open and effective communication between unrepresented. employees and the Citj, we contact injured workers on a bi-monthly basis during their period of lost time from work. Injured workers are encouraged to contact the claims staff at any time to discuss questions or concerns regarding their claim. Our toll-free phone number and email address are included on all correspondence. Communication with the injured worker is maintained throughout the life of their claim. Bragg's claim team will continue to provide prompt and responsive communication with the City on an ongoing basis. Telephone calls are returned as soon as possible, but in all cases within 24 hours. We encourage the Bragg claims team to communicate whenever the complexity of the claim changes, but the status report, prepared by the Examiner, is in addition to this ongoing communication. The Claims Examiners continually strive to develop a plan for case closure. Therefore, each status report identifies their plan for resolving the ongoing issues specific to the claim. In order to provide an immediate response on urgent claims, the following protocol is utilized. 19 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICLTATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\ClOI31030 Greg Bragg-Workman's Comp\Contract Documentdoc The Catastrophic Response Tealn (CRT) is notified ilnmediately following a serious injury, death, or a high profile c1ainl. The CRT consisting of the Executive COlTltnittec (EC) \vil1 confirm the clain1 is handled expeditiously and with compassion. This nlay include personal visits with the client and/or injured \vorker or family member, or any other necessary action as deemed appropriate by the client and EC member. During business hours, these calls \-vill be routed to the receptionist who will inlmediately notify the appropriateEC l11ember. After business hours, the answering service' wili utilize the Ee telephone list. 20 Professional Services Rev. January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\CIOI31030 Greg Bragg-Workman's Comp\Contract Document.doc EXHIBIT "C' COlvI.L)ENSA1~ ,ON' The CITY agrees to cOlnpensate the CONSULTANT for professional services performed to the reasonable satisfaction of the CITY and in accordance with the tenns and conditions of this Agreen1ent, and as set forth below. The con1pensation to be paid to Consultant under this Agreel11ent for all services described in Exhibit "A" and reilnbursable expenses shall not exceed: Year 1 -$250,000.00 Year 2 -$260,000.00 Year 3 -$273,000.00 CONSULTANT agrees to complete all services within this an10unt. No additional services are authorized. Any work perfonned or expenses incuned for which paYlnent would result in a total exceeding the n1axin1lun alnount of compensation shall be at no cost to CITY. Costs for services ancillary to clailns adlninistration (for exan1ple, investigation costs and Inedical costs) are charged to individual clailns. 21 Professional Services Rev, January 2009 S:\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-CM FOLDERS\KATHY\Contracts\Cl0131030 Greg Bragg-Workman's Comp\Contract Document.doc 22 Professional Services Rev. JanualY 2009 S:\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-CM FOLDERS\KA THY\Contracts\C 1 0 131 030 Greg Bragg-Workman's Comp\Contract Document.doc ACORD. CERTIFICATE OF LIABILITY INSURANCE I DA TE (MM/OOfYYYY) 511/2010 6118/2009 PRODUCER LOCKTON COMPANIES, LLC-1 KANS,A,S CITY THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION 444 W. 47TH STREET, SUITE 900 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE KANSAS CITY MO 64112-1906 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR (816) 960-9000 AL TER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED GREGORY B. BRAGG & ASSOCIATES, INC INSURER A: National Fire Insurance Co of Hartford 20478 1079747 P.OBOX2216 !NSURER 8: FEDERAL INSURANCE COMPANY (CHUBB) GRANITE BAY CA 95745 INSURER c: Valley Forge Insurance Company 20508 INSURER 0: Continental Casualty Company 20443 I INSURER E: '--THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING YORINOI XN COVERAGES INSURER'S) AUTHORIZED REPRESENTATIVE QR PRODU.Qf£LAND THE CERnFICA'fE HOLDER, "fHE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOlWlTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADD'L L TR INSRD TYPE OF INSURANCE POLlCY 14UMBER GENERAL LIABILITY f-X COMMERCIAL GENERAL LIABILITY A ==:J CLAIMS MADE [RJ OCCUR 2099497037 A A D C C --------------------- - GEN'L AGGREGATE LIMIT APPLIES PER: I Ixl PRO-POLICY JECT fX]LOC AUTOMOBILE LIABILITY '1-X ANY AUTO ;-'- ALL OVVNED AUTOS I- SCHEDULED AUTOS -- HIRED AUTOS -- NON-OVVNED AUTOS -X $\000 DED. COMPo e-X $1000 DED. COLL. GARAGE LIABILITY R ANY AUTO EXCESS/UMBRELLA LIABILITY :RJ OCCUR D CLAIMS MADE T UMBRELLA n DEDUCTIBLE ~ FORM rxl RETENTION $ 10 000 WORKERS COMPENSATION AND EMPLOYERS'LiABILlTY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below OTHER No 20929'51944 (AOS) 2097362238 (lvtA) NOT APPLICABLE 2092951975. 2092951961 (AOS) 2097327361 (CA) POLICY EFFECTIVE DATE (MMIDOIYY) 5/1/2009 5/1/2009 5/1/2009 5/1/2009 5/1/2009 5/1/2009 POLlCY EXPIRA'fIOt.J DATE (MM/DDIYY) 5/112010 51112010 5/1/2010 5/112010 5/1/20 10 5/1/2010 LIMITS EACH OCCURRENCE ~~~~~~J?E~~~~~nce) MED EXP (Anyone person) PERSONAL & ADV INJURY GENERAL AGGREGATE PRODUCTS -COMP/OP AGG COMBINED SINGLE LIMIT (Ea accidenl) BODILY INJURY (Per person) BODIL Y INJURY (Per accident) PROPERTY DAMAGE (Per accidenl) AUTO ONLY -EA ACCIDENT OTHER THAN AUTO ONLY: EACH OCCURRENCE AGGREGATE EAACC AGG $ 1 000 000 $ 1 000 000 $ 5,000 $ tOOO 000 $ 2000,000 , $ 2000,000 .--- $ 1,000,000 $ XXXXXXX .$ XXXXXXX 1 · $ XXXXXXX $ XXXXXXX $ XXXXXXX $ XXXXXXX $ 5 000,000 $ 5 000 000 $ XXXXXXX $ XXXXXXX - $ XXXXXXX:--·· E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE -EA EMPLOYEE $ 1,000,000 E.L. DISEASE -POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS i · CITY OF PALO ALTO IS ADDITIONAL INSURED AS REQUIRED BY WRITTEN CONTRACT SUBJECT TO POLlCY TERMS AND CONDITIONS. ,. CERTIFICATE HOLDER 10570387 CITY OF PALO ALTO PURCHASING AND CONTRACTS ADMINISTRATION 250 HAMILTON AVENUE, MEZZANINE LEVEL PALO ALTO CA 94301 ACORD 25 (2001/08) CANCELLA TION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OfL REPRESENTAnVES.