HomeMy WebLinkAboutStaff Report 8136
City of Palo Alto (ID # 8136)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 8/28/2017
City of Palo Alto Page 1
Summary Title: Workers Comp third-party administration services contract
Title: Approval of a Contract With York Risk Services Group Inc. for up to Five
Years in a Total Not-to-Exceed Amount of $1,206,015 for Workers’
Compensation Claims Administration Services
From: City Manager
Lead Department: Human Resources
Recommended Motion
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached contract
with York Risk Services Group Inc. effective July 1, 2017 ending June 30, 2022 to provide
workers’ compensation claims administration services in an amount not to exceed $1,206,016;
subject to the annual appropriation of funds.
Background
The work to be performed under the contract is for third-party claims administration services
for the City’s workers’ compensation program. These services are currently provided by York
Risk Services Group Inc. These services include: the processing of all workers’ compensation
claims in accordance with applicable Labor Code regulations; engaging services related to the
investigation and defense of claims; engaging the services of appropriate medical providers;
determining what benefits, if any, should be paid; handling all the necessary forms in each
reported claim; and performing all tasks in a timely manner as required under California
workers’ compensation laws. The term of the proposed contract with York Risk Services Group
Inc. ends on June 30, 2022 unless terminated earlier pursuant to Section 19 of the agreement.
As it is the City’s obligation to ensure that administration of the workers’ compensation
program is managed in the most effective and innovative manner, the City requested proposals
from other claims administrators to see what alternatives other firms had to offer.
Discussion
Selection Process Staff sent a request for proposals to seventeen firms on March 21, 2017. The
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proposal period was twenty-eight days. A total of seven firms submitted proposals ranging
between $190,109 and $261,068 in the first year. Human Resources staff carefully reviewed the
proposals in response to the Request for Proposal relative to the following criteria:
Public agency experience, specifically with medium size cities including public safety
officers benefits (California Labor Code 4850 provides injured public safety employees with
salary continuation up to one year in lieu of temporary disability and requires additional
handling and knowledge);
Stability of ownership, high level management and claims examiner experience;
Ability to provide innovative programs and services;
Established, reliable, claim system capabilities; advanced reporting technology: and
Quality customer service.
Three finalists were selected to be interviewed. York was selected to continue serving as the
City’s third party administrator at approximately $241,203 per year. York has an exhaustive list
of California cities clients and thus are able to offer knowledge and resources to meet the needs
of the City’s workers’ compensation program. They have a proactive claims management
philosophy focused on communication, quality control and partnership. Renewing with York
avoids interruptions to the City’s program and provides continuity in claims services for City
employees, their benefits and medical treatment.
Claim frequency and cost have decreased in the ten-year period since York has been working
with Palo Alto. This continues to be attributed to the diligence of the York claim handling team,
their familiarity with the unique needs of Palo Alto’s program and the collaboration established
with the City’s risk management staff managing claim costs. In the past nine years, totals of
new claim frequency have decreased 46.8 percent from 139 in 2006-2007 to 74 (all-time low) in
2014-2015. The total claim cost also decreased by 46 percent. Attached is Exhibit B showing
Claim Frequency and Severity between FY06-16 with values as of June 30, 2016, which shows
that indemnity (lost work time) claims make up the majority of the workers compensation
program costs despite claim frequency continuing to decrease.
York has successfully demonstrated its ability to provide a high level of quality, innovative
services and results in its claims administration services and it was not evident that other
vendors would provide any higher level of service or quality. During this RFP process, we
realized that York is steps ahead of their competitors in providing innovative solutions such as
Predictive Modeling, data visuals and dashboard tools, and a mobile app for injured employees
to access their claim information. HR staff will partner with York to develop a new integrated
report for the City to upload injured employee information to the York claims system which will
not only streamline processes but also save time by eliminating information requests via email
or phone.
Resource Impact:
York will charge a flat annual fee, not to exceed $251,000 (in the fifth and highest year) for the
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first five years of the contract, less than a two (2) percent increase from the highest year in the
previous contract. Funding for this agreement is currently provided in the Fiscal Year 2018
budget in the amount of $264,000 for this year. Based on the not to exceed actual amount of
the new contract in FY 2018 of $232,000, the City will experience $32,000 savings in the FY 18
Workers’ Compensation Fund. This savings will be factored in year-end projections for FY 2018
and into the development of the FY 2019 budget.
Attachments:
Attachment A - Contract
Attachment B - 10 year Workers' Compensation Claims statistics
CITY OF PALO ALTO CONTRACT NO. C17167840
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
YORK RISK SERVICES GROUP, INC. FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 1st day of July, 2017, (“Agreement”) by
and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and YORK RISK SERVICES GROUP, INC., a New York corporation authorized to
do business in California, located at 1101 Creekside Ridge Drive, Suite 100, Roseville,
California, 95678 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to administer the Workers’ Compensation Program (“Project”) and desires
to engage a consultant to perform services in connection with the Project (“Services”).
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit “A”, attached to and made a part of this
Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions,
in this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at
Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through June 30, 2022
unless terminated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term
of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and
made a part of this Agreement. Any Services for which times for performance are not specified
in this Agreement shall be commenced and completed by CONSULTANT in a reasonably
prompt and timely manner based upon the circumstances and direction communicated to the
CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall
not preclude recovery of damages for delay if the extension is required due to the fault of
CONSULTANT.
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Attachment A
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SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”),
and reimbursable expenses, shall not exceed One Million Two Hundred Six Thousand Sixteen
Dollars ($1,206,016.00). CONSULTANT agrees to complete all Basic Services, including
reimbursable expenses, within this amount. The applicable rates and schedule of payment are set
out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a
part of this Agreement. Any work performed or expenses incurred for which payment would
result in a total exceeding the maximum amount of compensation set forth herein shall be at no
cost to the CITY.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions
of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services
performed without the prior written authorization of CITY. Additional Services shall mean any
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the services performed and the applicable charges (including an
identification of personnel who performed the services, hours worked, hourly rates, and
reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-
1”). If applicable, the invoice shall also describe the percentage of completion of each task. The
information in CONSULTANT’s payment requests shall be subject to verification by CITY.
CONSULTANT shall send all invoices to the City’s project manager at the 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
performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT
represents that it possesses the professional and technical personnel necessary to perform the
Services required by this Agreement and that the personnel have sufficient skill and experience
to perform the Services assigned to them. CONSULTANT represents that it, its employees and
subconsultants, if permitted, have and shall maintain during the term of this Agreement all
licenses, permits, qualifications, insurance and approvals of whatever nature that are legally
required to perform the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet the
professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or
similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement. CONSULTANT shall procure all permits and licenses,
pay all charges and fees, and give all notices required by law in the performance of the Services.
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SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections
such errors and omissions, any change order markup costs, or costs arising from delay caused by
the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to
CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to
CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or
contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act
as and be an independent contractor and not an agent or employee of CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. 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 manager.
Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any
assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of
the work to be performed under this Agreement without the prior written authorization of the city
manager or designee.
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval
of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Bettina Hopper
to have supervisory responsibility for the performance, progress, and execution of the Services
and Tony Zuniga as the Sr. Account Executive to represent CONSULTANT during the day-to-
day work on the Project. If circumstances cause the substitution of the project director, project
coordinator, or any other key personnel for any reason, the appointment of a substitute project
director and the assignment of any key new or replacement personnel will be subject to the prior
written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall
promptly remove personnel who CITY finds do not perform the Services in an acceptable
manner, are uncooperative, or present a threat to the adequate or timely completion of the Project
or a threat to the safety of persons or property.
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CITY’s project manager is Vanda McCauley , Human Resources Department, 250 Hamilton
Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2582. The project manager will be
CONSULTANT’s point of contact with respect to performance, progress and execution of the
Services. CITY may designate an alternate project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including
without limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property of CITY without restriction or limitation upon their use. CONSULTANT
agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall
be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other
intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if
any, shall make any of such materials available to any individual or organization without the
prior written approval of the City Manager or designee. CONSULTANT makes no
representation of the suitability of the work product for use in or application to circumstances not
contemplated by the scope of work.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time
during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records
pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and
retain such records for at least three (3) years after the expiration or earlier termination of this
Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall protect,
indemnify, defend and hold harmless CITY, its Council members, officers, employees and
agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability
of any nature, including death or injury to any person, property damage or any other loss,
including all costs and expenses of whatever nature including attorneys fees, experts fees, court
costs and disbursements (“Claims”) to the extent resulting from, resulting from the negligent
performance, willful misconduct or negligent nonperformance by CONSULTANT, its officers,
employees, agents or contractors under this Agreement, regardless of whether or not it is caused
in part by an Indemnified Party.
16.2 The following is the exclusive process to obtain indemnification rights
hereunder: the Indemnified Party shall promptly notify in writing Consultant of any Claims for
which indemnification is sought, following actual knowledge of such Claim. Notwithstanding
anything herein to the contrary, neither party shall concede or settle or compromise any Losses
without the prior written approval of the other party, which consent will not be unreasonably
withheld.
16.3. Notwithstanding the above, nothing in this Section 16 shall be construed
to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the
active negligence, sole negligence or willful misconduct of an Indemnified Party.
16.4. The acceptance of CONSULTANT’s services and duties by CITY shall
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not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall
survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any
covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance
or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions,
ordinance or law, or of any subsequent breach or violation of the same or of any other term,
covenant, condition, provision, ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in
Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement
naming CITY as an additional insured under any general liability or automobile policy or
policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key 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 perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming
CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the
approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is
primary coverage. Consultant will not cancel, or materially reduce coverage or limits, except
after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty
(30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager
written notice of the cancellation or modification within two (2) business days of the
CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that
current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer
during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement,
including such damage, injury, or loss arising after the Agreement is terminated or the term has
expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
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or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior
written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will
immediately discontinue its performance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its
performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but
only in the event of a substantial failure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the
City Manager immediately any and all copies of studies, sketches, drawings, computations, and
other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or
given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such
materials will become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSULTANT will be
paid for the Services rendered or materials 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
termination; provided, however, if this Agreement is suspended or terminated on account of a
default by CONSULTANT, CITY will 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 made by the City Manager acting in the reasonable exercise of his/her
discretion. The following Sections will survive any expiration or termination of this Agreement:
14, 15, 16, 19.4, 20, and 25.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
with a copy to
York Risk Services Group
One Upper Pond Rd.
Building F, 4th Floor
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Parsippany, NJ 07054
Attention: General Counsel
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subconsultants, contractors or persons having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement 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 Government Code of the
State of California.
21.3. If the Project Manager determines that CONSULTANT is a “Consultant”
as that term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and agrees to file the appropriate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color, gender, age,
religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial 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
Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department,
incorporated by reference and may be amended from time to time. CONSULTANT shall comply
with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste
Program. Zero Waste best practices include first minimizing and reducing waste; second,
reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall
comply with the following zero waste requirements:
(a) All printed materials provided by CCONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes,
invoices, reports, and public education materials, shall be double-sided and
printed on a minimum of 30% or greater post-consumer content paper, unless
otherwise approved by CITY’s Project Manager. Any submitted materials printed
by a professional printing company shall be a minimum of 30% or greater post-
consumer material and printed with vegetable based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not
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limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Division’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide
documentation from the facility accepting the pallets to verify that pallets are not
being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter
4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any
employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of
work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay
such employees no less than the minimum wage set forth in Palo Alto Municipal Code section
4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In
addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance
in accordance with Palo Alto Municipal Code section 4.62.060.
SECTION 25. NON-APPROPRIATION
25.1. This Agreement is subject to the fiscal provisions of the Charter of the
City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are only
appropriated for a portion of the fiscal year and funds for this Agreement are no longer available.
This section shall take precedence in the event of a conflict with any other covenant, term,
condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS
26.1 This Project is not subject to prevailing wages. CONSULTANT is not
required to pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7 if the contract is not a public works contract, if the contract does not
include a public works construction project of more than $25,000, or the contract does not
include a public works alteration, demolition, repair, or maintenance (collectively,
‘improvement’) project of more than $15,000.
SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
27.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
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action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
27.4. This document represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the parties.
27.5. The covenants, terms, conditions and provisions of this Agreement will
apply to, and will bind, the heirs, successors, executors, administrators, assignees, and
consultants of the parties.
27.6. If a court of competent jurisdiction finds or rules that any provision of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this
Agreement and any amendments thereto will remain in full force and effect.
27.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred to in
any duly executed amendment hereto are by such reference incorporated in this Agreement and
will be deemed to be a part of this Agreement.
27.8 In the event of a conflict between the terms of this Agreement and the
exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case
of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall
control.
27.9 If, pursuant to this contract with CONSULTANT, CITY shares with
CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d)
about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable
and appropriate security procedures to protect that Personal Information, and shall inform City
immediately upon learning that there has been a breach in the security of the system or in the
security of the Personal Information. CONSULTANT shall not use Personal Information for
direct marketing purposes without City’s express written consent.
27.10 All unchecked boxes do not apply to this agreement.
27.11 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
27.12 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement
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CONTRACT No. C17167840 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
YORK RISK SERVICES GROUP, INC.
Attachments:
EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION
EXHIBIT “C-1”: SCHEDULE OF RATES
EXHIBIT “D”: INSURANCE REQUIREMENTS
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EVP
E. Harry Creasey
Sr. Vice President
Jody A Moses
11
EXHIBIT “A”
SCOPE OF SERVICES
I. INTRODUCTION
CITY is permissible self-insured for workers’ compensation in the State of California through a
combination of self-insurance (Certificate #7102) and excess coverage. Under this Scope of
Services, CONSULTANT, shall administer the Workers’ Compensation Program of CITY,
related to such obligations in accordance with the terms of this agreement.
The intent of this Scope of Services is to insure that CITY and CONSULTANT agrees on the
service levels outlined herein this agreement in an effort to maintain the highest customer service
standards to the benefit of the City’s employees.
II. CLAIMS MANAGEMENT
CONSULTANT agrees:
A. To examine, on behalf of CITY, all reports of industrial injury or illness relating
to CITY employees and reported to CONSULTANT;
B. To engage the services of person(s) or firm(s), upon approval from CITY, for
services relating to the investigation and defense of claims, subject to the
conditions set forth in this Agreement at the expense of CITY;
C. To determine in a timely and accurate manner, on behalf of CITY, what benefits,
if any, should be paid or rendered under the applicable workers’ compensation
laws in each reported claim;
D. To pay compensation, medical expenses, Allocated Loss Expenses, and other
benefits as prescribed by law out of funds provided by CITY;
E. To maintain a claim file on each reported claim which shall be available to CITY
at all times for inspection and to conduct, at a time and frequency to be
determined by the City, claim file reviews with CITY at a location to be
determined by CITY;
F. To aggressively handle subrogation claims against responsible parties in order to
preserve CITY’s right to recovery;
G. To consult with and advise CITY on any matter arising in conjunction with the
business of CITY which involves the subject matter of this Agreement;
H. To provide all necessary forms and supplies for the efficient operation of the
Workers’ Compensation Program, including customized checks bearing CITY
name and seal, and to prepare and file all legally required forms and documents;
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I. To ensure that the claims examiner shall be able to appropriately handle CITY
claims, the claims examiner shall not be assigned a caseload in excess of one-
hundred fifty (150) open indemnity (or equivalent weighted) claims.
J. CITY shall be notified prior to any staffing changes with any claims person
assigned to the account. In the event that CONSULTANT at any time during this
agreement, intends to reassign any claims person assigned to the account,
CONSULTANT shall notify CITY prior to reassignment of any staff member and
allow CITY to be involved in the decision-making process. In addition, CITY
shall retain the right to participate in the selection of the senior and assistant
examiners assigned to the account;
K. In the event that CITY, at any time during the term of this agreement, is
dissatisfied with any claims person assigned to the account, CITY will notify
CONSULTANT of their dissatisfaction. If after 60 days from notification, CITY
is still dissatisfied, CONSULTANT shall remove said person assigned
immediately upon receiving written notification from CITY of the desire for the
removal of such person;
L. To provide CITY with computer system -generated loss runs, case reports, risk
management reports and any other claim related reports requested by CITY, at a
frequency to be determined by CITY;
M. To biannually provide a loss report for claims that have had no activity for the
previous six months;
N. To provide monthly, a comprehensive claims detail report as described by CITY
one week or less after the end of the reporting period;
O. To coordinate Bill Review services, to review all medical, hospital and drug bills
and to assist CITY with cost control, designating industrial medical clinics and
hospitals which will provide CITY with a preferred provider (PPO) discount at
fees less than the Industrial Fees Schedule (IFS), and to provide an itemized list of
all medical savings resulting from this program, at a frequency to be determined
by CITY;
P. To, coordinate Utilization Review services consistent with ACOEM guidelines
and the California Labor Code to monitor frequency, duration and appropriateness
of all services during the claim life, and to provide an itemized list of all medical
savings resulting from this program, at a frequency to be determined by CITY;
Q. To subscribe to and pay on behalf of CITY, enrollment in the Index Bureau
System on behalf of CITY, for workers’ compensation claims in California and to
report to the Index Bureau each and every Indemnity claim filed;
R. To provide toll-free “800" telephone numbers for employees of CITY to contact
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CONSULTANT regarding questions or concerns regarding claims information,
website for online new claim reporting;
S. To provide a complete and detailed electronic conversion of all claims data at any
if needed.
T. To coordinate Pharmacy Benefit Management program and include summary
information such as costing in Stewardship report; and,
U. At the beginning of each fiscal year, determine new “S.M.A.R.T.” (Specific,
Measureable, Achievable, Relevant, Time Senstive) goal or metric representing
performance to be included in Stewardship report.
III. SPECIAL CLAIMS HANDLING SERVICES
1. CONSULTANT agrees to provide the following Special Claims Handling Service:
A. To establish Indemnity of Lost Time Claims within five (5) days upon receipt of
the Employers First Report of Injury (Form 5020) from CITY;
The definition of an Indemnity Claim shall be an industrial injury or illness claim
for which any of the following benefits are claimed:
1. Temporary Disability
2. Permanent Disability
3. Life Pension
4. Death;
B. To confer with the CITY’s Risk Manager or Senior HR Administrator regarding
questions, reports, or issues concerning claims and to assist City department
managers and supervisors regarding questions, concerns, or issues involving
employee claims;
C. To immediately notify the Risk Manager, by providing a copy of a Reserve
Computation Sheet, of any reserve changes over twenty-thousand dollars
($20,000.00);
D. To review and obtain advance notice and approval by Risk Manager or Senior HR
Administrator of any Claim Denials;
E. To close Medical Only Claims within twelve (12) months from the date of injury,
exceptions to this requirement shall be reported to CITY;
F. To consistently maintain a high level of customer service with CITY staff and
injured employees;
G. To promptly acknowledge receipt of voicemail and email messages;
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H. To promptly furnish the Risk Manager or Senior HR Administratorwith all
required material papers, which consist of but shall not be limited to:
Applications and Other Legal Documents
Work Restrictions
Letters from Defense Counsel
Private Investigation Reports and Summaries
Benefit Notices
Delay and/or Denial of Claim Notices
Medical Reports, as needed, in cases involving an Industrial Disability
Retirement;
I. To submit for approval and closure within five (5) days of receipt of written
notice, all undisputed Advisory Ratings;
J. To provide CITY a monthly check register. These reports will be emailed no later
than ten (10) days following the end of each month to CITY Payroll team;
K. To provide Quarterly, accurate OSHA log 300 reports;
L. To establish controls and procedures to manage and control the cost of defense;
M. To take enhanced efforts to identify possible fraudulent claims, including
recorded statements from injured worker and discussions with witnesses and
supervisor;
N. To confer with the Risk Manager or Senior HR Administrator as conditions arise:
To approve a Vocational Rehabilitation Plan for injuries prior to 1/1/04
To refer a claim to a law firm or attorney
To approve surveillances, sub rosa, or other investigations
To obtain settlement authority over fifteen-thousand dollars ($15,000.00);
IV. SPECIAL CLAIMS HANDLING SERVICES OF THE CITY
CITY agrees to provide the following claims handling response:
A. To promptly report to CONSULTANT all incidents of employee industrial
injuries or illnesses;
B. To promptly forward to CONSULTANT all applications, reports, notices, or any
legal correspondence pertaining to claims administration;
C. When applicable, to make all attempts possible to assign employees to modified
duty pursuant to CITY of Palo Alto Workers’ Compensation Modified Duty
Policy;
D. To make available to CONSULTANT funds for the payment of benefits or
services for industrial injuries or illnesses;
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E. To pay all Allocated Loss Expenses defined as: all losses incurred in the
adjustment, handling, settlement, of claims, including litigation expenses; and
F. To pay CONSULTANT all service fees as prescribed and included in Exhibit -
Fee Schedule.
V. PROGRAM MANAGEMENT
A. The Claims Supervisor shall be responsible for the following:
1. Review and assign all new claims;
2. Review to determine if referral to outside investigation firm is appropriate.
Supervisor will document each review whether investigation is conducted
or not;
3. Review to determine if referral to defense counsel is appropriate when any
of the following occur:
a. Notification of applicant attorney representation
b. Suspected fraud
c. Subrogation
d. Filing of 132A or Serious and Willful Misconduct
e. Need for legal discovery or depositions, etc
f. Issues that may need to be resolved by the WCAB
g. Claims involving presumptions
h. Claims with incurred value over $25,000
The supervisor will document every claim file in which one or more of the above
criteria exists indicating whether or not the claim should be referred to defense
counsel and the reasoning for the referral;
4. Oversee the development of the action plan in those cases in which various
alternatives may be appropriate. Supervisor will contact CITY of Palo Alto by
telephone or email to communicate the need to consider alternative action plan
options and solicit their input and/or concurrence;
5. File review meetings will be coordinated with CITY staff and claims staff on a
quarterly basis and may include additional meetings with City department heads;
and
6. Establish a personal relationship with the primary medical vendors used by the
City of Palo Alto and maintain a professional rapport and ongoing
communication. The Senior Claims Examiner shall be responsible for the
following:
1. To make initial contact with all injured workers by telephone within twenty-four
(24) hours (and in any event no later than forty-eight (48) hours following the date
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CONSULTANT receives an indemnity claim from the City to explain benefits
and obtain medical history, prior workers' compensation claim information and
any other pertinent information. Follow-up phone contact shall be made with the
injured worker every two (2) weeks thereafter provided the injured worker
remains off work and unrepresented by council. All telephone contacts must be
documented in the claim file;
2. To contact injured workers by telephone when any of the following occurs, unless
the injured worker is represented:
a. Explain the delay process when claims are placed on delay;
b. Explain the reason for denial when a claim is denied;
c. Explain permanent and stationary findings, permanent disability
and ratings;
3. To contact CITY on delay claims to determine action plan;
4. The claims examiner shall adhere to the following three-tier system:
a. Schedule the most appropriate medical treatment utilizing the
designated medical scheduling service or authorized physicians as
needed or upon City request:
1. Physical therapy treatment shall only be authorized at
facilities located in Palo Alto unless otherwise approved by
the Risk Manager or Senior HR Administrator;
2. In order to expedite proper diagnosis of an injury, the
claims examiner shall have the discretion to authorize
initial diagnostic tests such as MRI’s, CT Scans, and nerve
conduction studies without referral to Utilization Review;
b. Employees on lost time status shall be closely monitored and
returned to modified work status as soon as medically possible.
Claims examiners should aggressively pursue a release to modified
duty for all CITY employees through written and verbal
communication with the medical provider
c. Employees on modified work status shall be returned to their usual
and customary duty status as soon as medically possible
5. In all cases, the claims examiner must attempt to gain and maintain medical
control of cases unless a physician’s statement is on file or a written change in
treating physician is provided by the applicant; and,
6. Medical only claims shall be transferred to Claims Examiner handling Indemnity
claims if injured employee has not returned to full status after six months of
working modified duty.
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VI. COST REDUCTION GUARANTEE
CONSULTANT agrees:
A. To guarantee CITY at least a 1:1 indemnity closure ratio in each calendar year of
service under this contract. If this goal is not attained, CONSULTANT will credit
CITY $5,000.00 of the annual service fee.
VII. PENALTIES
Penalties imposed by the Workers’ Compensation Appeals Board (WCAB), the Department of
Industrial Relations, the Division of Workers’ Compensation, the Federal Government, or any
judicial forum or quasi-judicial forum in the State of California, arising out of the denial of
claims shall be the responsibility of the City if imposed as a result of actions taken by
CONSULTANT at the express direction of CITY.
Penalties imposed as a result of improper denial of claims shall be the responsibility of
CONSULTANT if no formal request for denial was obtained by the Risk Manager.
Penalties imposed as a result of either party’s failure to comply with the administrative rules,
regulations and the Labor Code of the State of California shall be the responsibility of the
culpable party.
CONSULTANT shall provide CITY with a quarterly accounting of all penalties paid by
CONSULTANT on behalf of CITY, including a listing of each penalty payment and the specific
claim file to which the penalty payment was charged. Penalties shall be paid out of CITY’s
benefit account and CONSULTANT shall then reimburse the City within thirty days (30) of the
issuance of the penalty and fines report, for those penalties and fines which are the responsibility
of CONSULTANT under the terms and conditions of this agreement.
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE
All work as specified in Exhibit “A” Scope of Services shall be scheduled by the City’s Project
Manager on an ongoing basis for the term of this agreement.
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EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed
in accordance with the terms and conditions of this Agreement, and as set forth in the
budget schedule below. Compensation shall be calculated based on the hourly rate
schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set
forth below.
CONSULTANT shall perform the tasks and categories of work as outlined and budgeted
below. The CITY’s Project Manager may approve in writing the transfer of budget
amounts between any of the tasks or categories listed below provided the total
compensation for Basic Services, including reimbursable expenses, and the total
compensation for Additional Services do not exceed the amounts set forth in Section 4 of
this Agreement.
BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Task 1 $1,206,016.00
(Workers Compensation Administration)
Sub-total Basic Services $1,206,016.00
Reimbursable Expenses $0.00 (None)
Total Basic Services and Reimbursable expenses $1,206,016.00
Maximum Total Compensation $1,206,016.00
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are
included within the scope of payment for services and are not reimbursable expenses.
CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost.
Expenses for which CONSULTANT shall be reimbursed are: None
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense shall be approved in advance by the CITY’s project manager.
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ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written
authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s
request, shall submit a detailed written proposal including a description of the scope of
services, schedule, level of effort, and CONSULTANT’s proposed maximum
compensation, including reimbursable expense, for such services based on the rates set
forth in Exhibit C-1. The additional services scope, schedule and maximum
compensation shall be negotiated and agreed to in writing by the CITY’s Project
manager and CONSULTANT prior to commencement of the services. Payment for
additional services is subject to all requirements and restrictions in this Agreement
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EXHIBIT “C-1”
SCHEDULE OF RATES
Option 1
WC Administration
Designated Sr. Examiner
Designated FM/MO Examiner
Consultant’s fees include Sr. Level Examiner with annual salaries in the mid $80’s to low
$90’s range.
Not to exceed annual fee per year:
YEAR FEE
2017 - 2018 $231,746.00
2018 - 2019 $236,380.92
2019 - 2020 $241,108.54
2020 - 2021 $245,930.71
2021 - 2022 $250,849.32
5 Years Not to Exceed = $1,206,015.49
The City’s weighted caseload (FM & MO 2:1) equals out to just under 150 files, therefore, it is virtually dedicated. A dedicated examiner
managing all files balances out quite nicely. There is additional expense as there is a Sr. level examiner at a higher salary managing the
future medical and medical only files.
The option of two Sr. Examiners managing all files equals out to the same fee as a dedicated as it is the same number of files, only split
between two Sr. Again, this fee is higher than option one due to a higher level examiner
CONSULTANT shall be open to further disclosure of labor and expense costs upon request.
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No data conversion fee. All reports are included in the flat annual administration fee.
ALLOCATED LOSS ADJUSTMENT EXPENSES
CONSULTANT will arrange for various services and other costs as agent for our client. These costs are referred to as Allocated Loss Adjustment
Expenses (ALAE). A list of these expenses follows. Payment of ALAE is the responsibility of the City of Palo Alto. York’s fees do not cover ALAE,
and York is under no obligation to pay ALAE with its own funds.
Fees of outside counsel for claims in suit, coverage opinions and litigation and for representation at hearings or pretrial conferences
Fees of court reporters
All court costs, court fees and court expenses
Fees for service of process
Costs of undercover operatives and detectives
Costs for employing experts for the preparation of maps, professional photographs, accounting, chemical or physical analysis, diagrams
Costs for employing experts for the advice, opinions or testimony concerning claims under investigation or in litigation or for which a
declaratory judgment is sought
Costs for independent medical examination or evaluation for rehabilitation
Costs of legal transcripts of testimony taken at coroner’s inquests, criminal or civil proceeding
Costs for copies of any public records or medical records
Costs of depositions and court reported or recorded statements
Costs and expenses of subrogation
Costs of engineers, handwriting experts or any other type of expert used in the preparation of litigation or used on a one-time basis to
resolve disputes
Witness fees and travel expenses
Costs of photographers and photocopy services
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Costs of appraisal fees and expenses (not included in flat fee or performed by others)
Costs of indexing claimants
Services performed outside York’s normal geographical regions
Costs of outside investigation, signed or recorded statements
Out of the ordinary expenses incurred in connection with an individual claim or requiring meeting with Customer
Any other extraordinary services performed by York at Customer’s request
Investigation of possible fraud including SIU services and related expenses
Any other similar cost, fee or expense reasonably chargeable to the investigation, negotiation, settlement or defense of a claim or loss or
to the protection or perfection of the subrogation rights of Customer.
CONSULTANT may, but need not, elect to utilize its own staff or affiliated entities to perform any of these services. Associated fees and
costs will be charged as ALAE.
MANAGED CARE SERVICES
Scope Labor Categories
(e.g. Consultant, Sr. Consultant, etc.
Rate Extended
Rate
Bill Review
Per Bill $9.00 Transactional
PPO & Enhanced Savings 25% Based on Savings
No charge for duplicates
Utilization Review
Examiner Pass through $67.00 Transactional per event
Nurse Review $149.00 Transactional per event
Physician Review $235.00 Transactional per event
Specialty Review $400.00 Transactional per event
Nurse Case Management
Telephonic Case Management $98.00 Hour
Field Case Management $98.00
+IRS Mileage
Hour
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MEDICARE SECONDARY PAYER SERVICES (MSA)
Mandatory CMS MMSEA Reporting $8.75 per claim
Standard MSA $2,950.00 per Referral
Complex/Catastrophic MSA $3,500.00 per Referral
Rush MSA Additional $500.00 per Referral
MSA CMS Submission $500.00 per Referral
Medical Cost Projections $1,750.00 per Referral
Conditional Payment Request $150.00 per Inquiry
Conditional Payment Dispute Resolution $125.00 per Hour
Final Settlement Document Submission $125.00 per Referral
Medicare / Medicaid Investigation $50.00 per Inquiry
Medical Cost Projection to MSA Conversion $1,200.00 per Referral
Managed care rates will have an annual 1% escalator.
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EXHIBIT “D”
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT
OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY
COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT
INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT
THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL
INSUREDS”
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION
EMPLOYER’S LIABILITY STATUTORY
STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY DAMAGE
COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY, INCLUDING
ALL OWNED, HIRED, NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES PROFESSIONAL LIABILITY, INCLUDING,
ERRORS AND OMISSIONS,
MALPRACTICE (WHEN APPLICABLE),
AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS
SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND
PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS,
AND EMPLOYEES.
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A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS
AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER
INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY
SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER,
BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL
LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN
(10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE
AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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Attachment B