Res 185-83 9/27/1983RESOLUTION NO.
igf5j--
RESOLUTION APPROVING AND AUTHORIZING THE
CITY MANAGER TO ENTER INTO A CONTRACT WITH
GAB BUSINESS SERVICES, INC. , PROVIDING FOR
THE ADJUSTMENT OF FLEET LIABILITY AND GENERAL
LIABILITY CLAIMS.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA
FALLS, TEXAS THAT:
That certain contract, a copy of which is attached hereto,
between the City of Wichita Falls and GAB Business Services, Inc. ,
providing for the adjustment of fleet liability and general liability
claims, is hereby approved, and the City Manager is authorized to
execute the same for the City of Wichita Falls,
PASSED AND APPROVED this the 27th day of September 1983.
V
C
AYOR
ATTEST:
City Cl rk
Contract for: Administrative, Investigative and Adjustment Services for
Auto Liability and General Liability claims.
Period: October 1 , 1983 through September 30, 1984 covering
Losses and Claims occurring
Territory: City of Wichita Falls, Texas
Customer Contact: Mark D. Wilson, Risk Manager, City of Wichita Falls, Texas
P.O. Box 1431 ,Wichita Falls, Texas
817) 322-5611 , ext. 281
GAB Account Exec. : Karl Giessmann
GAB Office - Dallas, Texas
214) 526-7971
Renewal Agreement: To be negotiated
Terms: GAB Business Services, Inc. , 123 William Street, New York, New York
10038 (hereinafter referred to as GAB) agrees to provide all its usual admin-
istrative, investigative and adjustment services to City of Wichita Falls in
connection with Auto Liability and General Liability claims during a period
of one (1 ) year commencing with October 1 , 1983 through September 30, 1984, in
accordance with the requirements of any regulatory authority having jurisdiction.
1 . In consideration of the contract agreement, GAB agrees to provide all its
usual administrative, investigative and adjustment services with no
additional charge, except for the following:
a. City attorney will provide all defense attorney's services, either
through his office or outside counsel , and City will be responsible
for paying for such services.
b. City of Wichita Falls agrees to pay the cost of all experts and pro-
fessional assistance required to investigate and adjust claims. All
such costs shall have the prior approval of the City.
c. GAB may submit any invoices or request for payment of fees of attorneys,
experts and other professional assistance as described in la and lb
above to City of Wichita Falls for payment approval . If so instructed
by City of Wichita Falls GAB will make payment as outlined in paragraph
4A. Such expenses shall be classified as "allocated expenses" defined
as legal fees, court costs, independent medical examination, and such
other professional assistance as is necessary to properly handle all
matters assigned to GAB and which it is not possible or feasible for
GAB to provide with its own personnel . No such expenses shall be
incurred without prior approval of the City. Allocated expenses, when
paid by GAB, will be shown on draft copies as expense items.
2. GAB will forward its recommendations regarding claim payments to the City of
Wichita Falls for final disposition including payment.
3. Additional services included in this contract for service are as follows:
a. GAB will provide a Key Account Representative at Wichita Falls, Texas.
Key Account Representative will provide liaison between City of Wichita
Falls, their representatives and GAB.
4. The contract price payable to GAB shall be determined in accordance with the
following :
a. GAB's charges shall $128.50 per occurrence for Auto Liability, and $150.50
per occurrence for General Liability claims. The customer will be billed
for each individual file and bill will be submitted with closing report.
Customer will pay each invoice as submitted.
b. It is mutually agreed and understood that during the term of this agreement
GAB is the only claims administrator of City of Wichita Falls in connection
with Auto Liability claims. All new notices of such claims during the
terms of this agreement will be forwarded only to GAB for the purpose of
providing administrative, investigative and adjustment services, and City
of Wichita Falls shall not administer such new claims or forward or assign
new notice to any claims administrator or person other than GAB, excepting
cases will not be assigned to anyone except City attorney or Risk Manage-
ment Administrator. Any occurrence forwarded to GAB more than 30 days
after date of loss shall be handled on a Time and Expense basis per GAB
prevailing pricing schedule.
c. GAB shall at reasonable times and during normal business hours, either
through its own employees or through its accountants or auditors, have
the right to inspect the books and records of City of Wichita Falls for
the sole purpose of verifying total number of claims.
5. The contract covers the initial period of twelve (12) months stated herein. Any
continuation or renewal shall be the subject of further negotiation between the
parties. If the contract is not renewed, City of Wichita Falls shall exercise
one of the following options:
a. City of Wichita Falls may require GAB to conclude the handling of all open
claims occurring during the contract period.
b. City of Wichita Falls may require GAB to return all open files at the
expiration of the contract.
6. At the conclusion of the terms of this contract, an accounting shall be made
subject to paragraph 3a of the amount due either party under the terms of the
contract but in no event shall the payment of the amount due either party be
deferred beyond August 31 , 1985.
7. Indemnity Agreement - City of Wichita Falls agrees that it will defend and
indemnify GAB against all claims, demands, proceedings, actions, damages, costs,
and expenses to which GAB may be subjected as a consequence of fulfilling its
obligations under this agreement, if not caused by the willful misconduct or
negligence of GAB employees, whether or not caused by the willful misconduct or
negligent acts of City of Wichita Falls or its employees.
8. Indemnity Agreement - GAB agrees that it will defend and indemnify City of
Wichita Falls against all claims, demands, proceedings, actions, damages, costs,
and expenses, to which City of Wichita Falls may be subjected solely as a
consequence of the willful misconduct or negligent acts or omissions of GAB,
its employees or servants in connection with fulfilling its obligations under
this agreement.
9. During the period of this agreement, and for a period of one (1 ) year there-
after GAB agrees not to solicit for employment, or employ, any City of Wichita
Falls employee contact during the performance of this agreement; and City of
Wichita Falls agrees not to solicit for employment or employ during the period
of this agreement and for a period of one (1 ) year thereafter any employee of
GAB contacted by City of Wichita Falls during the performance of this agree-
ment.
10. It is agreed that this contract shall be interpreted and construed in accor-
dance with the laws of the State of Texas.
11 . The provisions set out herein constitute the whole and entire agreement between
the parties hereto and may be altered only by mutual agreement, reduced to
writing and executed by authorized officers of both parties.
GAB BUSINESS SERVICES, INC.
Witness Date
CITY OF WICHITA FALLS, TEXAS
Witness Date James Berzina
City Manager