AGR-6931 - GEORGE HILLS COMPANY INC - SUBROGATION SERVICE CONTRACTR R-1 q31
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SUBROGATION SERVICE CONTRACT
THIS SUBROGATION SERVICE CON 2I ACT (the "ContracY') is made at Orange,
California, on this '{th day of Sanuary , 20k9'(the "Effective Date") by and between the
CITY OF ORANGE, a municipal corporation("City"), and GEORGE HILLS COMPANY, INC.,
a Califomia corporation ("GH"), who agree as follows:
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1.Services. Subject to the terms and condirions set forth in this Contract, GH shall
provide to the reasonable satisfaction of City the third-party subrogation claims administrarion
handling services set forth in Exhibit "A," attached hereto and incorporated herein by this
reference. As a material inducement to City to enter into this Con4act, GH represents and warrants
that it has thorouglily investigated and considered the scope of services and fully understands the
difficulties and restrictions in perforcning the work. GH represents that it is experienced in
performing the work and will follow the highest professional standazds in performance of the work.
All services provided shall conform to all federal, state and local laws, rules and regulations and
to the best professional standazds and pracfices. The terms and conditions set forth in this Contract
shall control over any terms and conditions in E ibit"A" to the contrary.
Nathalie Adourian, Risk Manager/Assistant Ciry Attorney ("City's Project Manager"),
sUall be the person to whom GH will report for the performance of services hereunder. It is
understood that GH's performance hereunder shall be under the d'uection and supervision of City's
Project Manager(or his/her designee), that GH shall coordinate its services hereunder with City's
Project Manager to the extent required by City's Project Manager, and that all performances
required hereunder by GH shall be performed to the satisfaction of City's Project Manager and the
Mayor.
2.Compensation and Fees.
GH's total compensation for all services performed under this Contract, shall be as
set forth in Exhibit"B," attached hereto and incorporated herein by this reference.
3. Pavment.
a. Payments received by GH on behalf of City for the payment of damage
claims will be made payable to City. All payments will be transmitted to City within a reasonable
amount of time for proper handling by City. In the event a payment is inadvertently made payable
to GH, City authorizes GH to endorse the check prior to forivazding to City for handling
b. All payments transmitted to City will be acoompanied by a h ansmittal form
that provides a summary of the Claim. Invoice(s) for services provided by GH to City for
subrogation services will be included in the transmittal of funds to CiTy. All such invoices shall
state the basis for the amount invoiced, including services completed and any extra work
performed. In addirion, GH will provide to City a summary of all payments with corresponding
payment transmittals.
c.City will pay GH the amount invoiced within thirty (30) days after the
approval of the invoice.
d. Payment shall constitute payment in full for all services, authorized costs
and authorized extra work covered by that invoice.
4.Licenses. GH represents that it and any subcontractors it may engage,possess any
and all licenses wluch aze required under state or federal law to perform the work contemplated by
this Contract and that GH and its subcontractors shall maintain all appropriate licenses, including
a CiTy of Orange business license, at its cost, during the performance of this Contract.
5. Independeat Contractor. At all times during the term of this Contract, GH shall
be an independent contractor and not an employee of CiTy. CiTy shall have the right to control GH
only insofaz as the result of GH's services rendered pursuant to this Contract. City shall not have
the right to control the means by which GH accomplishes services rendered pursuant to this
Contract. GH shall, at its sole cost and expense, furnish all facilities, materials and equipment
which may be required for furnishing services pursuant to tlus Contract: GH shall be solely
responsible for, and shall indemnify, defend and save CiTy harmless from all matters relating to
the payment of its subcontractors, agents and employees, including compliance with social
security, withholding and all other wages, salazies, benefits, ta7ces, exactions, and regularions of
any nature whatsoever. GH acknowledges that GH and any subcontractors, agents or employees
employed by GH shall not, undei any cucumstances, be considered employees of City, and that
they shall not be enfitled to any of the benefits or rights afforded employees of City,including,but
not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement $ystem
beneFits, or health, life, dental, long-term disabiliTy or workers' compensation insurance benefits. .
6. GH Not Aeent. Except as otherwise provided herein, GH shall have no authority,
express or unplied,to act on behalf of City in any capaciTy whatsoever as an agent. GH shall have
no authority, express or implied,to bind CiTy to any obligation whatsoever.
7. Designated Persons. Except as otherwise authorized by CiTy's Project Manager,
only Tammy L. Hunt, Subrogation Supervisor, shall perform work provided for under this
Contract. It is understood by the parties that clerical and other nonprofessional work may be
performed by persons other than those designated.
8. Assienment or Subcontractine. No assignment or subcontracting by GH of any
part of this Contract or of funds to be received under this Contract shall be of any force or effect
unless the assignment has had the prior written approval of CiTy. CiTy may ternunate this Contract
rather than accept any proposed assignment or subconfracting. Such assignment or
subcontracting may be approved by the Mayor or his/her designee.
9. Time Is of the Essence. Time is of the essence in this Contract. GH shall do all
things necessary and incidental to the prosecution of GH's work.
10. Delays and Extensions of Time. GH's sole remedy for delays outside its control,
other than those delays caused by City, shall be an extension of time. No matter what the cause of
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the delay, GH must document any delay and request an extension of time in writing at the time of
the delay to the satisfaction of City. Any extensions granted shall be lunited to the length of the
delay outside GH's control. If GH believes that delays caused by City will cause it to incur
additional costs, it must specify, in writing, why the delay has caused additional costs to be
incurred and the exact amount of such cost at the time the delay occurs. No additional costs can
be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written
amendment to this Contract.
11. Enual Emulovment Onnortunitv. During the performance of this Contract, GH
agrees as follows:
a.GH shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, mental or physical disability, or
any other basis prohibited by applicable law. GH shall ensure that applicants aze employed, and
that employees aze treated during employment, without regazd to their race, color, religion, sex,
national origin,mental or physical disability,or any other basis prohibited by applicable law. Such
actions shall include, but not be lnnited to the following: employment, upgrading, demotion or
transfer, recruitment or recruitment advertising, layoff or temunation, rates of pay or other forms
of compensation and selection for training, including apprenticeship. GH agrees to post in
conspicuous places, available to employees and applicants for employment, a notice setting forth
provisions of this non-discrimination clause.
b. GH shall, in all solicitations and advertisements for employees placed by,
or on behalf of GH, state that all qualified applicants will receive consideration for employment
without regazd to race, color, religion, sex, narional origin, mental or physical disability, or any
other basis prohibited by applicable law.
c.GH shall cause the foregoing pazagraphs (a) and (b) to be inserted in all
subcontracts for any work covered by this Confract, provided that the foregoing provisions shall
not apply to subconh acts for standard commercial supplies or raw materials.
12. Conflicts of Interest; Emulovee Solicitation.
a.GH agrees that it shall not make, participate in the making, or in any way attempt
to use its position as a contractor to influence any decision of City in which GH knows or has
reason to know that GH, its officers,partners, or employees have a financial interest as defined in
Section 87103 of the Govemment Code.
b. In the event GH receives a claun from City in which there azises a "conflict of
interest," GH shall immediately norify City. City may then, at its expense choose to hire another
well-qualified claim firm to handle that particulaz claim to a conclusion. GH covenants that it
presently knows of no interest, direct or indirect, which would conflict in any manner with the
performance of services required under this Contract.
c.During the term of this Contract,and for a period of one (1)yeaz thereafter, except
with the advance written agreement by the other party: (1) GH agrees not to solicit for employment
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or employ any CiTy employee contacted by GH during the perfonnance of this Contract; and (2)
City agrees not to solicit for employment or employ any employee of GH contacted by the City
during the perfortnance of this Contract.
13. Indemnitv.
a.To the fullest extent pemutted by law, GH agrees to indemnify, defend and
hold City, its City Council and each member thereof, and the officers, officials, agents and
employees of City (collectively the "Indemnitees") entirely harmless from all liability azising out
of:
1) Any and all claims under workers' compensation acts and other
employee benefit acts with respect to GH's employees or GH's contractor's employees azising out
of GH's work under this Contract, including any and all claims under any law pertaining to GH's
status as an independent contractor; and
2) Any claun, loss, injury to or death of persons or damage to proper[y
caused by any act, neglect, default, or omission other than a professional act or omission of GH,
or person, firm or corporation employed by GH, either directly or by independent contract,
including all damages due to loss or theft sustained by any person, firm or corporation including
the Indemnitees, or any of them, arising out of, or in any way connected with the work or services
which aze the subject of this Contract, including injury or damage either on or off City's property;
but not for any loss, injury, death or damage caused by the active negligence or willful misconduct
of City. GH, at GH's own expense, cost and risk, shall indemnify any and all claims,acrions, suits
or other proceedings that may be brought or instituted against the Indemnitees on any such claim
or liabiliTy covered by this subparagraph, and shall pay or sarisfy any judgment that may be
rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a
result of coverage under this subpazagraph.
b. To the fullest extent pernutted by law, GH agrees to indemnify and hold
Indemnitees entirely harmless from all liability azising out of any claim, loss, injury to or death of
persons or damage to property caused by the negligent professional act or omission in the
performance of professional services pursuant to this Contract.
c.Except for the Indemnitees, the indemnifications provided in this Contract
shall not be construed to e Rend any third party indemnification rights of any kind to any person •
or entity which is not a signatory to this Contract.
d. The indemnities set forth in this section shall survive any closing,
rescission, or ternunation of this Contract, and shall continue to be binding and in full force and
effect in perpetuity with respect to GH and its successors.
e.The maximum amount recoverable by City against GH for damages and
costs, inclusive of attomeys' fees, is limited to the insurance policy limits as specified in this
Contract.
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f.In those cases wherein GH is named in a filed or verified complaint simply
by virtue of the fact it is the Claims administration firm on a given Claim, City will defend GH, at-
no cost to GH. City will defend, indemnify and hold hazmless GH from and against all claims,
demands, acrions or causes of acrion which may arise solely from the action, conduct or failure to
act by City.
14. Insurance.
a.GH shall catry workers' compensation insurance as required by law for the
protecrion of its employees during the progress of the work. GH understands that it is an
independent contractor and not entitled to any workers' compensarion benefits under any City
program.
b. GH shall maintain during the life of this Confract the following minimum
amount of comprehensive generalliabiliTy insurance or commercial general liability insurance: the
greater of(1) One Ivlillion Dollazs ($1,000,000) per occurrence; or (2) all the insurance coverage
and/or limits carried by or available to GH. Said insurance shall cover bodily injury, death and
property damage and be written on an occurrence basis.
c.GH shall maintain during the life of this Contract, the following minimum
amount of automotive liability insurance: the greater of(1) a combined single limit of One Million
Dollazs ($1,000,000); or(2) all the insurance coverage and/or limits carried by or available to GH.
Said insurance shall cover bodily injury, death and property damage for all owned,non-owned and
hired vehicles and be written on an occurrence basis.
d. Any insurance proceeds in excess of or broader than the muumum required
coverage and/or minimum required limits which aze applicable to a given loss shall be available
to CiTy. No representation is made that the minimum insurance requuements of this Contract aze
sufficient to cover the obligations of GH under this Contract.
e.Each policy of general liability and automotive liability shall provide that
City, its officers, officials, agents, and employees aze declazed to be additional insureds under the
terms of the policy, but only with respect to the work performed by GH under this Contract. A
policy endorsement to that effect shall be provided to CiTy along with the certificate of insurance,
which endorsement shall be on Insurance Services Office, Inc. Form CG 20 10 10 Ol. In lieu of
an endorsement, City will accept a copy of the policy(ies) which evidences that City is an
additional insured as a contracting party. The minimum coverage required by Subsection 1 S.b and
c, above, shall apply to City as an additional insured.
GH shall maintain during the life of this Contract:
1) Professional liabiliTy insurance covering errors and omissions
azising out of the performance of this Contract with a minunum lunit of Three Million Dollazs
3,000,000)per claim. GH agrees to keep such policy in force and effect for at least five(5)years
from the date of completion of this Contract.
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2) Fidelity coverage for theft of City property in the amount of One
Million Dollazs ($1,000,000)per loss.
g.The insurance policies maintained by GH shall be primary insurance and no
insurance held or owned by City shall be called upon to cover any loss under the policy. GH will
detern ine its own needs in procurement of insurance to cover liabilities other than as stated above.
h. Before GH perforxns any work or prepazes or delivers any materials, GH
shall fiunish certificates of insurance and endorsements, as required by CiTy, evidencing the
aforementioned minimum insurance coverages on forms acceptable to City, which shall provide
that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days'
prior written norice to City.
i.Except for professional liability insurance coverage that may be required by
this Contract, all insurance maintained by GH shall be issued by companies admitted to conduct
the pertinent line of insurance business in Califomia and having a rating of Grade A or better and
Class VII or better by the latest edirion of Best Key Rating Guide. In the case of professional
liability insurance coverage, such coverage shall be issued by companies either licensed or
admitted to conduct business in Califomia so long as such insurer possesses the aforementioned
Best rating.
j GH shall immediately notify City if any requued insurance lapses or is
otherwise modified and cease performance of this Contract unless otherwise d'uected by City. In
such a case, City may procure insurance or self-insure the risk and chazge GH for such costs and
any and all damages resulting therefrom, by way of set-off from any sums owed GH.
k. GH agrees that in the event of loss due to any of the perils for which it hzs
agreed to provide insurance, GH shall look solely to its insurance for recovery. GH hereby grants
to City, on behalf of any insurer providing insurance to either GH or City with respect to the
services of GH herein, a waiver of any right to subrogation which any such insurer may acquire
against City by virtue of the payment of any loss under such insurance.
1.GH shall include all subcontractors, if any, as insureds under its policies or
shall fiunish sepazate certificates and endorsements for each subcontractor to City for review and
approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.
15. Term; Termination. The term of tlus Contract shall commence effecfive
December 1, 2019. Either party may for any reason ternunate this Contract by giving the other
party not less than ninety (90) days' written notice of intent to terminate. Upon receipt of such
no6ce, GH shall immediately cease work, unless the notice from City provides otherwise. Upon
the termination of this Contract, CiTy shall pay GH for services satisfactorily provided and all
allowable reimbursements incurred to the date of termination in compliance with this'Contract,
unless termination by City shall be for cause, in which event City may withhold any disputed
compensation. CiTy shall not be liable for any claim of lost profits.
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16. Maintenance and Inspection of Records; ConfidenHalitv.
a.In accordance with generally accepted accounting.principles, GH and its
subconfractors shall maintain reasonably full and complete books, documents, papers, accounting
records, and other information (collectively, the "records") pertaining to the costs of and
completion of services performed under this Contract. City and its authorized representatives shall
have access to and the right to audit and reproduce any of GH's records regazding the services
provided under this Contraet. GH agrees to make available all such records for inspection or audit
at its offices during normal business hours and upon three (3) days' notice from CiTy, and copies
thereof shall be furnished if requested.
b. Upon ternunation or completion of this Contract, GH shall transfer the data
to City or to such other person as City d'uects. GH and City may agree by sepazate signed
agreement to retain records for a longer period of time.
c.All data, documents, discussions, or other information developed or
received by or for GH in performance of this Contract aze confidential and not to be disclosed to
any person except as authorized by City or City's designee, or as requ'ued by law.
17. Comoliance with all Laws/Immieration Laws.
a.GH shall be knowledgeable of and comply with all local, state and federal
laws which may apply to the performance of this Contract.
b. GH represents and wazrants that GH:
1) Has complied and shall at all times during the term of this Contract
comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders,
including, without lunitation,the Immigrarion Reform and Control Act of 1986 (IRCA); and
2) Has not and will not knowingly employ any individual to perform
services under this Contract who is ineligible to work in the United States or under the terms of
this Contract; and
3) Has properly maintained, and shall at all times during the tetm of
this Contract properly maimain, all related employment documentation records including,without
limitation, the completion and maintenance of the Form I-9 for each of GH's employees; and
4) Has responded,and shall at all times during the term of this Contract
respond, in a timely fashion to any government inspection requests relating to immigration law
compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of
Homeland Security, the Department of Labor, or the Social Security Administration.
c.GH shall require all subcontractors or sub-consultants to make the same
representations and warranties as set forth in Subsection 21.b.
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d. GH shall, upon request of City, provide a list of all employees working
under this Contract and shall provide, to the reasonable satisfaction of City, verification that all
such employees aze eligible to work in the United States. All costs associated with such
verification shall be bome by GH. Once such request has been made, GH may not change
employees working under this Contract without written notice to City, accompanied by the
verification requ'ued herein for such employees.
e.GH shall require all subcontractors or sub-consultants to make the same
verificarion as set forth in Subsecrion 21.d.
f.If GH, subcontractor or sub-consultant knowingly employs an employee
providing work under this Contract who is not authorized to work in the United States, and/or fails
to follow federal laws to determine the status of such employee, that shall constitute a material
breach oFthis Confract and may be cause for immediate temunation of this Contract by City.
g.GH agrees to indemnify and hold City,its officials,and employees hannless
for, of and from any loss, ineluding but not limited to fines, penalties and corrective measures,
City may sustain by reason of GH's failure to comply with said laws, rules and regulations in
connection with the performance of this Contract.
18. Governine Law and Venue. This Contract shall be construed in accordance with
and governed by the laws of the State of Califomia,and GH agrees to submit to the jurisdiction of
California wurts. Venue for any dispute azising under this Conh act shall be in Orange County,
California.
19. Inteeratioa. This Contract constitutes the entire Con act of the parties. No other
agreement, oral or written, pertaining to the work to be performed under this Contract shall be of
any force or effect unless it is in writing and signed by both parties. Any work performed which
is inconsistent with or in violation of the provisions of this Contract shall not be compensated.
20. Notice. Except as otherwise provided herein, all notices required under this
Contract shall be in writing and delivered personally,by e-mail,or by fust class U.S.mail,postage
prepaid, to each party at the address listed below. Either party may change the notice address by
notifying the other party in writing. Notices shall be deemed received upon receipt of same or
within three (3)days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall
be deemed received on the date of the e-mail transmission.
GH"CITY"
George Hills Company, Ina City of Orange
3043 Gold Canal Drive, Suite 200 300 E. Chapman Avenue
Rancho Cordova, CA 95670 Orange, CA 92866-1591
Attn.: John Chaquica, CEO Attn.: Nathalie Adourian
Telephone No.: 916-859-4800 Telephone No.: 714-288-2540
E-Mail: John.Chaquica@GeorgeHills.com E-Mail: nadourian@cityoforange.org
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21. Counteroarts. This Contract may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Signatures transmitted via facsimile and elechonic mail shall have the same effect as
original signatures.
IN WITNESS of this Contract, the parties haue entered into this Contract as of the yeaz
and day first above written.
GH" CITY"
GEORGE HILLS COMPANY, INC. CITY OF ORANGE, a municipal corporation
w
gy By:
Prin ame: J i . Chaauica Mazk A. rphy, Mayor
Title: CEO
BY' eS I
Printed Name: I ' '1
Title: II', I;J 1 . t
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APPROVED AS TO FORM:
l/(t,t
Senior Assi ant CiTy Attomey
NOTE:Ciry requires the following signature(s) on behalf ojthe contractor:
1) tke Chairman oj the Board, the President or a Vice=President, AND (2) the
Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or
an Assistant Treasurea If only one corporate ojficer exists or one corporate
officer holds mo e than one corporate ojfice,please sa indicate. OR
The corporate officer named in a corporate resolution as autkorized to enter into
this Contract. A copy oJthe corporate resolution, certifted by the Secretary c/ose
in time Co the execution of the Contract, must be provided to Cily.
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EI IIBTT "A"
SCOPE OF SERVICES
Pursuant to this Confract, GH will act as representative of CiTy, when directed, for the
investigation, processing and evaluation of subrogation clauns including motor vehicle and
potenrial money damage claims or incidents, which aze premised upon allegations of willful,
intentional, negligent, or cazeless acts and/or omissions (collectively, "Claims"). GH will provide
complete subrogation services on each incident, as d'uected by CiTy.
1.CITY RESPONSIBILITY
A. City may, at City's own expense:
i.Authorize GH to act as a representarive of CiTy for the invesrigarion,
adjustment, processing, supervision and evaluation of an ultimate recovery of potenfial money
om damage claims against parties for whom it is alleged to be legally responsible.
ii. Authorize GH to engage the services of a lirigation attomey to consult,
review, and determine the best legal strategy available at the time to obtain the best possible result
for City. Upon detemunation by the attorney that a civil action is in the best interest of CiTy, GH
will notify CiTy and obtain authorizarion to pursue recovery in accordance with the
recommendations of the litigation attomey.
iii. While GH is handling a subrogation claim for City pursuant to the terms of
this Coniract, the institution of a civil action is determined by City to be the best course of action,
CiTy may elect to do so at City's own expense.
a) Recall the claim to Ciry's control so that CiTy may pursue recovery
in a manner to be detennined by the City's attomey to be in the best interest of the CiTy.
b) In the event City recalls the claim as indicated above, City shall be
responsible for payment to GH for any and all time and expense incurred by GH's subrogation
claim adjuster and/or other subrogation division staff up to the time wherein the claim has been
recalled by City.
B. City agrees to the following:
i.CiTy shall cooperate with GH as reasonably necessary for GH to perform its
services.
ii. CiTy agrees to provide direction to GH as requested regazding pazticulaz
project requirements.
iii. City shall idenrify a primary contact person(s) for an account as well as for
billing and loss run submission. In addition, CiTy shall be responsible for reporting all changes in
the primary point of contact to GH.
iv. CiTy shall be responsible for updating GH on any changes to
coverage/policy language; including limits, retentions/deducribles and coverage changes by April
30 of each yeaz.
v.City shall obtain any necessary consent in the collection of any City data
that is transmitted to a third party (e.g., actuary or auditor). City shall provide GH with reasonable
assurances that it has the necessary consent to transmit City data to a third party. Ciry
acknowledges that the claims data may contain confidential and/or protected health informafion.
In the event CiTy authorizes and directs GH to provide claims data to a third pariy, CiTy will
indemnify, defend and hold hazmless GH &om and against all claims, damages, losses and
expenses, including court costs and reasonable attorneys' fees, arising out of or resulting from:(i)
any action against GH that is based on any negligent act or omission of CiTy or a third party in
transmitting and/or disclosing the claims data; or (ii) the violation of any statute, ordinance, or
regulation by City or a third party in transmitting and/or disclosing the claims data.
2. GH RESPONSIBILITY
Services to be provided by GH on behalf of City for a Claim may include all or some of
the following:
A. SUBROGATION SERVICES
GH is a claim adminisirative firm experienced in the handling of subrogation claims and
is ceady and capable of performing such services. Such services aze distinct from subrogating a
loss from an additional insured from a claim filed by a third party. GH's services aze unique to a
first pazry loss of the CiTy caused by the intentional or negligent act of a third party. Such losses
generally aze for the recovery of damages, loss, and/or additional types of damages. Losses
include:
Labor costs,fully loaded and including benefit costs,for CiTy or other personnel responding
to or in any manner providing services;
Services or materials provided by outside vendors or contractors;
Intemal or external vehicle or equipment use and/or rental;
Materials and/or goods utilized for the repair/replacement of damaged property; and/or
Additional fees that may be specific to the individual entity that aze provided for within
district ordinances or other governing document.
B. DATA
i.Utilize GH's claims management system—CXP (ClaimsXpress).
ii. Record all claim information including all financial data.
iii. Provide City and.broker read only on-line access to the claims data system
up to five users), if desired by CiTy.
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iv. Provide monthly Cumulative/Comprehensive subrogation report.
v.Provide annual claims data report upon request. Written authorization may
be required for confidential information.
vi. Provide assistance to City in developing customized reports when requested
may requue additional charge).
vii. Arrange for electronic file conversion for any open and closed claims at the
direction of City.
C. CLAIM REVIEW MEETINGS
GH shall, on a mutually agreed periodic basis, meet with Client to review and discuss
claims inventory and claims results of past period and delivery of services by CLAIM
ADMINISTRATOR.
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EXHIBIT "B"
COMPENSATION
The following compensation shall apply to the services described in Exhibit "A" - Scope
of Services and provided during the term of this contract. Any changes in the terms of
compensafion shall be in writing by June 30'for the following contract yeaz and subject to mutual
agreement that shall be an amendment to this Agreement.
Subrogation Fee in the amount of 25% for the first yeaz to commence upon the approval
and execution of the contract and 30% for each and every subsequent year will be collected from
each and every recovery obtained. The minimum amount to be paid to GH will be $250 per claim
upon recovery. However, GH has the authority to reject any clann for any reason, relieving City
of any fiscal responsibility for rejected claims only.
A. Generally, no recovery shall be agreed to involving payment plans if the recovery
is less than$5,000 and/or greater than a one-yeaz term. Exceptions can be made on a case-by-case
basis. If a recovery is agreed to exceed this amount and/or length of time, the Subrogation Fee
shall be 45%. In the event a payment plan is authorized and entered into,the Subrogation Fee will
be based upon the total amount of the lien and will be invoiced to the Ciry upon the entry of the
payment agreement. GH will make every attempt to enforce the provisions of the payment
agreement with the claimant, but in no way guazantees the fulfillment of the terms of the payment
agreement. In the event the terms of the payment agreement aze not fulfilled and warrant pursuit
through the small claims process, authority to pursue through small claims will be requested.
B. GH may be authorized to appeaz in small claims court for recovery of funds.
AuthoriTy for the pursuit of recovery through small claims will be requested prior to the filing of
documents with the court to iniriate the small claims action. Each appeazance will be an additional
fee of$150. All costs for the handling of the small claims, i.e. service of process of documents on
the responsible parties, mileage, pazking, and toll, shall be an additional cost and will be the
responsibility of the CiTy. Additional allocated costs shall be billed sepazately upon the cost being
incurred, such as,but not limited to: skip tracing,service of process, and third-par[y sub contracted
investigation.
C. GH reserves the right to cease working on any claim where information has not
been made available to GH within 120 days after GH has submitted the information and/or
documentation request to City. At such time the claim will be closed.
D. Due to the nature of these services, in that compensation is contingent upon
recovery, if the confract is temunated prior to recovery or other closure of any claim,the City shall
pay GH for all expenses and time spent, to date, on any claim(s) currently open and recovery in
process. Payment shall be based on the current hourly rate of GH. GH will submit the final invoice
within five (5) business days of termination.
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