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FIRST AMENDMENT TO FORT WORTH
CITY SECRETARY CONTRACT NUMBER 44963 —
PROFESSIONAL SERVICES AGREEMENT
This FIRST AMENDMENT TO FORT WORTH CITY SECRETARY
CONTRACT N0.44963 — PROFESSIONAL SERVICES AGREEMENT ("First
Amendment") is made and entered into by and between the City of Fort Worth, a home-
rule municipal corporation of the State of Texas ("City"), acting by and through its duly
authorized Assistant City Manager, and Gulf South Risk Services, Inc., a Louisiana
corporation ("Agency"), acting by and through its duly authorized President.
WHEREAS, in October 2013, the parties entered into a contract for Agency to
provide the City with subrogation and claims-recovery services, that contract being Fort
Worth City Secretary Contract No. 44963 (the "Agreement"); and
WHEREAS, the Agreement was initially limited to cases that had been opened
and worked by City staff and subsequently closed without collection; and
WHEREAS, the parties wish to amend the Agreement to broaden the scope of
services to encompass subrogation and claims-recovery services for open cases and cases
that have not previously been worked by City staff.
NOW, THEREFORE, City and Agency do hereby covenant and agree as follows:
1.
That Fort Worth City Secretary Contract No. 44963 is hereby amended to delete
Exhibit A, "Scope of Work," in its entirety and to enact a new, revised Exhibit A,
"Scope of Worlc," which is attached hetero and incorporated into the Agreement
for all purposes as though it were set forth at length.
RECEIVED AUG 111014
First Amendment to CFW CSC 44963
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Page 1 of 6
2.
That all other terms and conditions of City Secretary Contract No. 44963 that are
not amended herein shall remain in full force and effect throughout the term of the
Agreement and any renewals thereof.
IN WITNESS WHEREOF, tl�e parties hereto have executed this First Amendment on
this I� ` �day of �t�C,,f��l%�-<� , �i� �%
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CITY OF ORT WORTH
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Sus lanis, Asst. City Manager
Approved as to Form and Legality:
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By: i ',
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Denis C. ' cElroy, ' st. City Attorney
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CONTRACT AUTHORIZATION:
M&Cs: P-11509, C-26351
Attest:
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Secretary
OFFICiAL RECOFtD
CI'Pll SECRETAR�'
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GULF SOUTH RISK SERVICES� INC.
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K ith T. Kenney, Presi ent
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First Amendment to CFW CSC 44963 Page 2 of 6
EXHIBIT A
SCOPE OF WORK
1.0 GENERAL:
The purpose of this Agreement is to engage the services of Agency to attempt to recover
monies owed to the City under a right of subrogation, whether imposed by contract,
common law, or other basis. The City shall determine which cases to assign to the
Consultant.
The City makes no representations with respect to the quality or thoroughness of any past
claim handling efforts.
Agency understands and acicnowledges that processing of these claim iiles may require
additional work by the Agency to ascertain damages and/or to obtain police reports.
Police reports are available through the City of Fort Worth or from the jurisdiction where
the accident occurred. Copies of City reports relating to accidents will be made available
to the Agency at no charge. Costs for obtaining reports or documentation fi•om other
jurisdictions are reimbursable by the City as Allocated Claim Expenses.
The City shall provide the Agency with access to all information in its claim files,
including previously prepared damage estimates; previously gathered data regarding
actual costs incurred by or on behalf of the City in making any repair to damaged
property or procuring any replacement for property that was not economically feasible to
repair; and data regarding workers compensation payments made. However, Agency
understands and acknowledges that processing of these claim files may require additional
work by the Agency to obtain estimates for damage to City property, information
regarding actual repair or replacement costs paid by or on behalf of the City, and
information regarding amounts paid out for workers' compensation claims. If required,
Agency shall be responsible for securing estimates, following up with City personnel to
obtain information regarding actual repair/replacement expenses, and following up with
the City's third party administrator(s) for workers compensation claims. Agency shall
obtain vehicle-damage estimates from Likes Appraisal Services (or other third-party
service provider engaged by the City for purposes of performing vehicle-damage
estimates) and shall be responsible for coordinating with City departments to have
vehicles brought in for an estimate if required. Agency shall obtain other property-
damage estimates fi•om a non-affiliated, third party property inspector/adjuster. Agency
shall direct the City's third-party appraisal service or the non-afiiliated, third party
property inspector/adjuster to submit its invoices for services directly to the City for
payment. If Agency is required to pay the City's third-party appraisal service or the non-
affliated, third party property inspector/adjuster directly for an estimate, Agency may
recovery its actual out-of-pocket cost as an Allocated Claim Expense.
Throughout the term of this Agreement and any renewals thereof, Agency shall provide
at least one of its employees on-site at the City to coordinate Agency's claims processing
services and to worlc claims. Such Agency employee shall be on-site during normal City
business hours for at least forty hours per week, with the exception of any weelc in which
the City is closed for business due to a holiday or otherwise.
2.0 INITIAL INVESTIGATION — FOR ALL ASSIGNED CASES:
The Agency shall:
First Amendment to CFW CSC 44963 Page 3 of 6
2.1 Review all assigned iiles for police reports or other forms of damage reports to
evaluate for subrogation potential;
2.2 Investigate the facts of loss and determine cause of loss, evaluation of liability,
and identity of all potentially responsible parties and their insurance companies if
not previously completed;
2.3 Document the cost of repairs or replacement if not previously obtained;
2.4 Notify potentially responsible parties and their insurance carriers in writing as
soon as possible of the City's intent to pursue recovery if such action has not
previously occurred and follow up on any notices previously sent out; and
2.5 Physically inspect damaged property at location of damaged property if
documentation has not been provided.
3.0 FOR ALL ASSIGNED PROPERTY AND AUTO CASES:
Agency shall:
3.1 Work with the appropriate City department(s) to gather infonnation regarding all
repair costs (initial and supplemental) if such information is not in claim file;
3.2 Set up claims with insurance company and/or the damager or responsible party;
3.3 Send out demand letters;
3.4 Provide all repair costs and police report backup to insurance company and/or
damager or responsible party;
3.5 Follow up with City personnel and other parties as appropriate;
3.6 Review with and refer to City Attorney's Ofiice (CAO) as appropriate; and
3.7 Take all appropriate action to recover money owed to the City.
4.0 FOR ALL ASSIGNED CASES INVOLVING WORKERS' COMPENSATION:
Agency shall:
4.1 Work with the City's third party adminish•ator for workers compensation to
obtain notes, bills and related claim documents;
4.2 Work with the City's Human Resources Department to identify any supplemental
wages earned;
4.3 Review with and refer to City Attorney's Offce (CAO) as appropriate;
4.4 Set up claims with insurance company and/or damager or other responsible party;
First Amendment to CFW CSC 44963 Page 4 of 6
4.5 Follow up with City personnel and other parties as appropriate; and
4.6 Take all appropriate action to recover money owed to the City.
5.0 RELEASES
5.1 For all subrogation cases, Agency shall ensure that all transactions,
documentation, information, letters and reports are recorded in the claim files in
the City's Risk Management Information System ("RMIS" or "STARS") and that
all associated documents are uploaded for each claim. Agency shall ensure that
releases are viewed and presented as part of the settlement and processed with
the responsible party or that party's insur�er. Agency shall ensure that releases
include confirmation that all of the City's losses are considered and that releases
reflect that the City does not waive the right to recoveiy for any related workers'
compensation benefits paid.
5.2 Agency shall ensure that all releases are sent to the Risk Manager for review and
execution with Agency's recommendations and comments. Agency shall ensure
that recovery dollars from the responsible party or that party's insurer are paid
directly to authorized City personnel for deposit and are documented in the City's
RMIS. Agency shall ensure that all documents include the claim number and
information regarding which City department is associated with the claim to
allow City personnel to make the deposit correctly.
6.0 COI�IlVICJNICATION & NEGOTIATION:
The Agency shall:
6.1 Serve as the point of contact with the responsible parties and their insurance
companies with respect to exchange of documents and information necessary to
achieve recovery due to the City;
6.2 As warranted and subject to City approval, negotiate all compromise settlements
with responsible parties; and
6.3 Review all releases presented as part of the settlement process with the CAO,
and provide release forms to authorized City representative for signature
with Agency's recommendations and comments.
7.0 RECEII'T AND PROCESSING OF RECOVERIES:
The Agency shall ensure that all recovery payments fi•om responsible pai�ties or their
insurers are sent directly to the City for deposit with indication of what City department
is associated with the claim. In addition, Agency shall ensure that all recoveries are
documented in STARS. Agency shall not accept payment on behalf of the City. In the
event Agency receives payment of monies owed to the City, Agency shall immediately
remit such amounts to the City and shall take any and all steps necessaiy to allow the
City to deposit such payments, including, but not limited to, executing any endorsement
from Agency to City that may be required in order for City to deposit payment
instruments from third parties.
First Amendment to CFW CSC 44963 Page 5 of 6
8.0 LITIGATION:
The Agency shall, following consultation with and approval from the City:
8.1 Prepare iile for presentation by City Attorney in appropriate court;
8.2 Prepare for and attend hearings on behalf of the City if requested by City
Attorney;
8.3 Ensure that all judgments on the City's behalf are documented in STARS;
8.4 As applicable, monitoi• criminal proceedings of responsible parties and seek
restitution orders on the City's behalf. For all cases that involve restitution, the
Agency shall initiate and document all work with the prosecuting attorney and/or
Courts to obtain restitution award. The City shall be responsible for
documenting restitution payments received by the City in RMIS.
9.0 UNRECOVERABLE CLAIMS
For any file deemed unrecoverable by the Agency, the Agency shall
9.1 Forward the file to the City Attor7iey's ofiice for continued investigation and
possible recovery along with a brief summary of the claim, Agency's efforts to
collect, and the results of those efforts; and
9.2 Update STARS regarding Agency's actions and the referral to the CAO.
10.0 DELNERY OF ELECTRONIC DATA:
The Agency shall provide the City's Risk Management Division with a monthly status
report on all claims activity during the month. The report, along with the monthly
invoice, shall be delivered by the lOth of each month following the end of the reporting
period.
The report shall include, at a minimum, the following information: (1) a breakdown of
collections by categoiy — auto, workers' compensation, wage supplemental pay, and
property; and (2) the claim number on each iile for which a collection occurred.
Electronic reports are acceptable as an alternative to printed reports.
First Amendment to CFW CSC 44963 Page 6 of 6