Res 2697 12/16/1980RESOLUTION NO.
RESOLUTION APPROVING CONTRACT WITH GAB
BUSINESS SERVICES, INC. , PROVIDING FOR
THE ADJUSTMENT OF FLEET 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 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 16th day of December, 1980.
A Y O R
hTTEST:
City Clerk
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GAB Contract Services
Tailored Especially for
City of Wichita Falls, Texas
P. 0. Box 1431
Wichita Falls, Texas 76307
Contract for Administrative, Investigative and Adjustment Services for Auto
Liability claims.
Period September 1, 1980 through September 30, 1981 covering Losses
and Claims X occurring reported during period
Price 110.00 per occurrence
Premium Base Rate of X
Deposit payments of monthly. Final payment
Deferred to
Territory City of Wichita Falls, Texas
Account(s)
Customer Contact City of Wichita Falls, Texas
Address P. 0. Box 1431, Wichita Falls, Texas 76307
Telephone
GAB Account Executive Karl Giessmann
GAB Dallas, Texas Telephone 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
GAB Contract Services Contract Cont. Page 2 of 4
to provide all its usual administrative, investigative and adjustment services
to City of Wichita Falls in connection with Auto Liability claims during a
period of 13 months commencing with September 1, 1980 through September 30, 1981
in accordance with the requirements of any regulatory authority having juris-
diction.
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
progessional 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 examinations, 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 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 liasion
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 shall charge $110.00 per occurrence. The customer will be
billed for each individual file including allocated expenses
paid by GAB, and bill will be submitted with closing report.
Customer will pay each invoice as submitted.
y 4
GAB Contract Services Contract Cont. Page 3 of 4
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 forward or assign new notice to any
claims administrator or person other than GAB, excepting cases
where there is apparently no liability on the part of City and
these cases will not be assigned to anyone except City Attorney
or Risk Management 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 published schedule.
c. GAB shall at reasonable times and during normal business hours,
either through its own employers 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 thirteen (13) 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 4a 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, 1982.
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 mis-
conduct or negligent acts or omissions of GAB, its employees or
servants in connection with fulfilling its obligations under this
agreement.
GAB Contract Services Contract Cont. Page 4 of 4
9. During the period of this agreement, and for a period of one (1) year
thereafter GAB agrees not to solicit for employment, or employ, any
City of Wichita Falls employee contacted 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 agreement.
10. It is agreed that this contract shall be interpreted and construed in
accordance with the laws of the State of Texas.
11. The provisions set out herein constituted 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.
By:
Senior Vice President
Witness Date
CITY OF WICHITA FALLS, TEXAS
By:
Witness Date
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