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HomeMy WebLinkAbout12-59 Resolution No. 12-59 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH FIRE RECOVERY USA, LLC BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Sean R. Stegall,City Manager,and Kimberly A.Dewis,City Clerk,be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Fire Recovery USA, LLC for performing billing services in connection with motor vehicle incidents and other emergency incidents, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: March 21, 2012 Adopted: March 21, 2012 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk • f• AGREEMENT THIS AGREEMENT is made and entered into this 21st day-of March ,2012,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY")and FIRE RECOVERY USA,LLC,a California limited liability company authorized to do business in the State of Illinois (hereinafter referred to as "CONSULTANT"). WHEREAS, CONSULTANT engages in the business of performing billing services for United States fire departments in connection with motor vehicle incidents and other emergency incidents at which the fire departments provide emergency services; and WHEREAS,the CITY desires to engage the CONSULTANT to furnish certain professional services in connection with the billing for services that the CITY provides in connection with motor vehicle incidents and other emergency incidents (hereinafter referred to as the"PROJECT"); and WHEREAS, the CONSULTANT represents that it is in compliance with Illinois Statutes relating to professional registration or licensing of individuals or entities with respect to providing such services, and has the necessary skills, knowledge, expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW,THEREFORE,it is hereby agreed by and between the CITY and the CONSULTANT that the CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, to perform the services relating to the PROJECT as described herein,subject to the following terms and conditions and stipulations,to-wit: 1. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Fire Chief of the CITY or his designee (hereinafter referred to as the "FIRE CHIEF"). B. CONSULTANT shall provide billing and collection services for services that the CITY provides in connection with motor vehicle incidents and other emergency incidents, as follows: I. CONSULTANT shall bill the responsible party on the CITY's behalf for services provided or rendered during or in connection with motor vehicle incidents and other emergency incidents. The billing rates for such services shall be as set forth in Section 2.40.225 of the Elgin Municipal Code,as may be amended in the City's sole discretion. A copy of the CITY's current billing rates (mitigation rates) is attached hereto as Exhibit A and incorporated herein by this reference. 2. CONSULTANT will provide,as a normal course of business,entry of claims and submission to the responsible party, collections of monies deemed due to the r' CITY,payments of the agreed upon percentage of said monies to the CITY,and reporting of progress to the CITY. 3. CONSULTANT agrees and shall bill to the best of its ability all claims provided to CONSULTANT by the CITY. 4. CONSULTANT shall not initiate litigation against any person, entity or insurance carrier with respect to the billing and collection of such claims without the prior written approval of the CITY. 2. PROJECT SCHEDULE AND PROGRESS REPORTS A. CONSULTANT shall provide the services to the CITY pursuant to this Agreement as such service may be requested by the CITY. B. CONSULTANT agrees to make available to the CITY reports via a password protected website providing detailed information with respect to billable claims outstanding (which are claims submitted, but not yet completed) and claims completed in the prior billing cycle. 3. WORK PRODUCT/CONFIDENTIAL INFORMATION All work product prepared by the CONSULTANT pursuant hereto including,but not limited to, reports, plans, designs, calculations, work drawings, studies, photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the FIRE CHIEF;provided,however,that the CONSULTANT may retain copies of such work product for its records. CONSULTANT's execution of this Agreement shall constitute CONSULTANT's conveyance and assignment of all right, title and interest, including but not limited to any copyright interest,by the CONSULTANT to the CITY of all such work product prepared by the CONSULTANT pursuant to this Agreement. The CITY shall have the right either on its own or through such other consultants as determined by the CITY to utilize and/or amend such work product. Any such amendment to such work product shall be at the sole risk of the CITY. Such work product is not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the CONSULTANT. Any written, printed, graphic, or electronically or magnetically recorded information furnished by CITY for CONSULTANT's use are the sole property of the CITY. This proprietary information includes, but is not limited to, any information concerning the CITY's employees,products,services,prices and operations. CONSULTANT will keep this information in the strictest confidence, and will not disclose it by any means to any person except with the CITY's approval, and only to the extent necessary to perform the services under this Agreement. This prohibition shall also apply to CONSULTANT's employees, agents, and any permitted subcontractors or assigns. Upon termination of this Agreement, CONSULTANT will return any confidential information to the CITY. 2 4. PAYMENTS TO THE CONSULTANT A. As payment for the services provided by the CONSULTANT pursuant to this Agreement, the CONSULTANT shall be paid as follows: 1. CONSULTANT shall reimburse to the CITY a portion of the monies collected on behalf of the CITY pursuant to this Agreement at a rate of eighty percent (80%)of the total monies collected on the CITY's claims. CONSULTANT shall retain the remaining twenty percent (20%) of the monies collected by CONSULTANT as payment in full for the services rendered by CONSULTANT. 2. If after twelve (12) months from the effective date of this Agreement, and for each subsequent twelve (12) month period thereafter, the CITY provides insurance information requested by CONSULTANT on eighty percent(80%)or more of the claims submitted to CONSULTANT for billing and collection, CONSULTANT shall credit back to the CITY an additional two percent(2%)of such funds collected by CONSULTANT during any such twelve (12) month period. 3. CONSULTANT shall reimburse and pay to the CITY its respective portion of the monies collected by CONSULTANT on a monthly basis. Such payments shall be made to the CITY within seven(7)working days after the close of a monthly billing cycle. 5. AUTHORITY OF CONSULTANT CONSULTANT is authorized to perform the following acts on behalf of the CITY in connection with providing the billing and collection services under this Agreement: A. To bill and collect all revenue earned by and due to the CITY in connection with the CITY's provision of emergency services provide or rendered at sites of motor vehicle incidents and other emergency incidents. B. To receive monies on the CITY's behalf,and to take possession of and endorse in the CITY's name any notes, checks,money orders,and any other instruments received by CONSULTANT as collections. 6. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof,the CITY may terminate this Agreement at any time upon thirty(30)days prior written notice to the CONSULTANT. In the event that this Agreement is so terminated, the CONSULTANT shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the task amounts set forth under Paragraph 4, above. 3 � r 7. TERM This Agreement shall become effective as of the date set forth above and shall continue in full force and effect for a period of two(2)years thereafter,unless terminated prior thereto in accordance with the terms of this Agreement. Following the initial term of this Agreement, the Agreement may be renewed for up to two (2) additional two-year terms upon mutual written agreement of the parties hereto. 8. NOTICE OF CLAIM If the CONSULTANT wishes to make a claim for additional compensation as a result of action taken by the CITY,the CONSULTANT shall give written notice of his claim within fifteen(15)days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the CONSULTANT's fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the CONSULTANT. Regardless of the decision of the FIRE CHIEF relative to a claim submitted by the CONSULTANT,all work required under this Agreement as determined by the FIRE CHIEF shall proceed without interruption. 9. BREACH OF CONTRACT If either party violates or breaches any term of this Agreement,such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party,by reason of any default, fails within fifteen(15) days after notice thereof by the other party to comply with the conditions of the Agreement,the other party may terminate this Agreement. Notwithstanding the foregoing,or anything else to the contrary in this Agreement, with the sole exception of an action to recover the monies the CITY has agreed to pay to the CONSULTANT pursuant to Paragraph 4 hereof,no action of any kind shall be commenced by the CONSULTANT,any related persons or entities,and/or any of their successors and assigns against the CITY for monetary damages. CONSULTANT hereby further waives any and all claims or rights to interest on money claimed to be due pursuant to this Agreement,and waives any and all such rights to interest which it claims it may otherwise be entitled pursuant to law,including,but not limited to,the Local Government Prompt Payment Act(50 ILCS 501/1,etseq.),as amended,or the Illinois Interest Act(815 ILCS 205/1,et seq.),as amended. The parties hereto further agree that any action by the CONSULTANT arising out of this Agreement must be filed within one (1) year of the date the alleged cause of action arose or the same will be time-barred. The provisions of this paragraph shall survive any expiration, completion and/or termination of this Agreement. 10. INDEMNIFICATION A. To the fullest extent permitted by law, CONSULTANT agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, agents, 4 boards and commissions from and against any and all claims,suits,judgments,costs, attorneys' fees, damages or other relief, including, but not limited to, workers' compensation claims,in any way resulting from or arising out of negligent actions or omissions of the CONSULTANT in connection herewith, including negligence or omissions of employees or agents of the CONSULTANT arising out of the performance of this Agreement. In the event of any action against the CITY, its officers,employees,agents,boards or commissions,covered by the foregoing duty to indemnify,defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. The provisions of this paragraph shall survive any expiration, completion and/or termination of this Agreement. B. To the fullest extent permitted by law, CITY agrees to and shall indemnify, defend and hold harmless the CONSULTANT, its officers, employees, agents,boards and commissions from and against any and all claims,suits,judgments,costs,attorneys' fees, damages or other relief, including, but not limited to, workers' compensation claims,in any way resulting from or arising out of negligent actions or omissions of the CITY in connection herewith,including negligence or omissions of employees or agents of the CITY arising out of the performance of this Agreement. In the event of any action against the CONSULTANT, its officers, employees, agents, boards or commissions,covered by the foregoing duty to indemnify,defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. The provisions of this paragraph shall survive any expiration, completion and/or termination of this Agreement. 11. NO PERSONAL LIABILITY No official,director,officer,agent or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. 12. INSURANCE A. Comprehensive Liability. The CONSULTANT shall provide,pay for and maintain in effect, during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least$1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The CONSULTANT shall deliver to the FIRE CHIEF a Certificate of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty (30) days prior written notice to the FIRE CHIEF. The Certificate of Insurance shall include the contractual obligation assumed by the CONSULTANT under Paragraph 10 entitled "Indemnification". 5 This insurance shall be primary and non-contributory to any other insurance or self- insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned,non-owned and hired motor vehicles with limits of not less than $500,000 per occurrence for bodily injury and/or property damage. C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1,000,000 per occurrence subject to a $1,000,000 aggregate. D. Professional Liability. The CONSULTANT shall carry CONSULTANT's Professional Liability Insurance covering claims resulting from error, omissions or negligent acts with a combined single limit of not less than$1,000,000 per claim. A Certificate of Insurance shall be submitted to the FIRE CHIEF as evidence of insurance protection. The policy shall not be modified or terminated without thirty (30) days prior written notice to the FIRE CHIEF. 13. JOINT AND COLLECTIVE WORK PRODUCT This Agreement is and shall be deemed and construed to be a joint and collective work product of the CITY and the CONSULTANT and, as such, this Agreement shall not be construed against the other party as the otherwise purported drafter of same by any court of competent jurisdiction to resolve any inconsistency,ambiguity,vagueness or conflict,if any, of the terms and provisions contained herein. 14. NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement,there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color, creed,national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination,rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex,race,color,creed,national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory,mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. 15. ASSIGNMENT AND SUCCESSORS 6 This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY, which consent may be withheld at the sole discretion of the CITY. 16. DELEGATIONS AND SUBCONTRACTORS Any assignment,delegation or subcontracting shall be subject to all the terms,conditions and other provisions of this Agreement and the CONSULTANT shall remain liable to the CITY with respect to each and every item,condition and other provision hereof to the same extent that the CONSULTANT would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY's advanced written approval,which approval may be withheld at the sole discretion of the CITY. 17. NO CO-PARTNERSHIP OR AGENCY This Agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. CONSULTANT understands and agrees that the relationship of the CONSULTANT to the CITY arising out of this Agreement shall be that of an independent contractor. It is expressly agreed and understood that the CONSULTANT and the CONSULTANT's officers, employees and agents are not employees of the CITY and are not entitled to any benefits or insurance provided to employees of the CITY. 18. SEVERABILITY The terms of this Agreement shall be severable. The parties intend and agreed that, if any paragraph,sub-paragraph,phrase,clause or other provision of this Agreement,or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. 19. HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define,limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. 20. MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed,modified,discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations 7 or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. 21. APPLICABLE LAW This Agreement shall be deemed to have been made in,and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County, Illinois. 22. NEWS RELEASES The CONSULTANT may not issue any news releases without prior approval from the FIRE CHIEF, nor will the CONSULTANT make public proposals developed under this Agreement without prior written approval from the FIRE CHIEF prior to said documentation becoming matters of public record. 23. COOPERATION WITH OTHER CONSULTANTS The CONSULTANT shall cooperate with any other consultants in the CITY's employ or any work associated with the PROJECT. 24. INTERFERENCE WITH PUBLIC CONTRACTING The CONSULTANT certifies hereby that it is not barred from bidding on this contract as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding bid rigging. 25. SEXUAL HARASSMENT As a condition of this contract, the CONSULTANT shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment, utilizing examples; D. the vendor's internal complaint process including penalties; E. the legal recourse,investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission, or such other similar statutes as may be in effect in the State of California; 8 k F. directions on how to contact the department and commission, or such other similar agency responsible for investigating and enforcing sexual harassment claims in the State of California; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act or such other similar statutes as may be in effect in the State of California. A copy of the policies shall be provided by CONSULTANT to the Department of Human Rights, or such other similar agency responsible for investigating and enforcing sexual harassment claims in the State of California, upon request. 26. SUBSTANCE ABUSE PROGRAM. As a condition of this agreement, CONSULTANT shall have in place a written substance abuse prevention program which meets or exceeds the program requirements in the Substance Abuse Prevention Public Works Project Act at 820 ILCS 265/1 et seq, or such other similar statutes as may be in effect in the State of California. A copy of such policy shall be provided to the City's Assistant City Manager prior to the entry into and execution of this agreement. 27. WRITTEN COMMUNICATIONS All recommendations and other communications by the CONSULTANT to the FIRE CHIEF and to other participants that may affect cost or time of completion shall be made or confirmed in writing. The FIRE CHIEF may also require other recommendations and communications by the CONSULTANT be made or confirmed in writing. 28. NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows: A. As to the CITY: With a copy to: City of Elgin City of Elgin 150 Dexter Court 150 Dexter Court Elgin, Illinois 60120-5555 Elgin, Illinois 60120-5555 Attention: John Fahy Attention: William A. Cogley Fire Chief Corporation Counsel B. As to the CONSULTANT: Fire Recovery USA, LLC The Watkins Firm, APC 219 Vernon Street 4250 Executive Drive, Suite 105 Roseville, CA 95678 San Diego, CA 92121 Attention: Mike Rivera Attention: Chris Popov, Esq. 9 r 29. COMPLIANCE WITH LAWS Notwithstanding any other provision of this Agreement it is expressly agreed and understood that in connection with the performance of this Agreement that the CONSULTANT shall comply with all applicable federal, state,city and other requirements of law, including,but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, CONSULTANT hereby certifies, represents and warrants to the CITY that all CONSULTANT's employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. CONSULTANT shall also at its expense secure all permits and licenses,pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this Agreement. The CITY shall have the right to audit any records in the possession or control of the CONSULTANT to determine CONSULTANT's compliance with the provisions of this paragraph. In the event the CITY proceeds with such an audit the CONSULTANT shall make available to the CITY the CONSULTANT's relevant records at no cost to the CITY. CONSULTANT shall pay any and all costs associated with any such audit. SIGNATURE PAGE FOLLOWS 10 r IN WITNESS WHEREOF,the parties hereto have entered into and executed this agreement effective as of the date and year first written above. CITY OF ELGIN: By: �. Sean Stegall, City MATager Attest: City Clerk FIRE RECOVERY USA, LLC, Name/Print: Craig Nagler Title: Chief Executive Officer F:\Legal Dept\Agreement\PSA-Fire Recovery USA,LLC.doc 11 EXHIBIT A MITIGATION RATES Mitigation rates are based on the CITYs ordinance fee schedule, as shown below. "2.40.225:MITIGATION RATES FOR CERTAIN EMERGENCY SERVICES The city hereby establishes cost mitigation rates for the deployment of certain emergency services by the fire department of the city for services provided and/or rendered, including the provision of personnel, supplies and equipment to the scene of motor vehicle incidents and other emergency incidents as provided below,which are based on the actual costs of the services and those costs that are usual,customary and reasonable (UCR): A.MOTOR VEHICLE INCIDENTS Level 1 -$435.00 Provision of hazardous materials assessment,scene stabilization and basic response services. Level 2 - $495.00 Includes provision of Level 1 services, as well as clean up and material used(sorbents)for hazardous fluid clean-up and disposal.Billing at this Level will occur if the fire department of the city must clean up any gasoline or other automotive fluids that are spilled as a result of the accident/incident. Level 3 -$605.00 Relating to a car fire,provision of scene safety,fire suppression,breathing air,rescue tools,hand tools, hose,tip use,foam,exposure protection,and clean-up of gasoline or other automotive fluids that are spilled as a result of the accident/incident. Level 4- $1,800.00 Includes provision of Levels 1 and 2 services,as well as extrication(heavy rescue tools,ropes,airbags, cribbing, etc.). Billing at this Level will occur if the fire department of the city is required to free/remove anyone from the vehicle(s)using any powered equipment.Billing at this Level will not occur if the person to be extricated is unconscious or unable to move and the fire department is able to open a door to the vehicle to access and safely remove the person. 2 Level 5 - $2,200.00 Includes provision of Levels 1,2 and 4 services as well as Air Care(multi-engine company response, mutual aid,helicopter).Billing will occur at this Level any time a helicopter is utilized to transport the patient(s). Level 6—Itemized Response(Billed to Residents and Non-Residents As Appropriate) In the case of an unusual incident,the fire department of the city may bill each incident as an independent incident with actual costs and/or customary mitigation rates using itemized rates deemed usual,customary and reasonable(UCR). Such incidents will be billed using itemized amounts for apparatus and personnel, plus products and equipment used. B.HAZMAT Level 1 -Basic Response- $700.00 Provision of basic response services including engine response, first responder assignment,perimeter establishment,evacuations, set-up and command. Level 2 -Intermediate Response- $2,500.00 Includes provision of Level 1 services as well as hazmat certified team and appropriate equipment,Level A or B suit donning,breathing air, detection equipment,and set-up and removal of decon center as necessary. Level 3 -Advanced Response- $5,900.00(Includes 3 hours of on-scene time—each additional hour in excess of 3 Hours is $300.00 per HAZMAT Team) Includes provision of Levels 1 and 2 services as well as robot deployment,recovery and identification of material,disposal and environmental clean-up. Also includes any disposal rates for contaminated equipment and material used at scene. C.PIPELINE INCIDENTS/POWER LINE INCIDENTS (Includes,but not limited to: Gas, Sewer, Septic to Sewer,and Water Pipelines) Level 1 —Basic Response- $400.00 Provision of basic response services including engine response,first responder assignment,perimeter establishment, evacuations,first responder set-up and command.Also includes inspection without damage or breakage. Level 2 -Intermediate Response- $1,000.00 3 Includes provision of Level 1 services as well as hazmat certified team and appropriate equipment,Level A or B suit donning,breathing air,detection equipment, and the supervision and/or assisting of pipeline repair. Level 3 -Advanced Response-Itemized Claim Charges Includes provision of Levels 1 and 2 services as well as supervision and or assisting of intermediate to major pipeline damage,set-up and removal of decon center,detection,recovery and identification of material,disposal and environmental clean-up. D.FIRE INVESTIGATION Fire Investigation Team-$275.00 per hour. Fire investigation services include scene safety,investigation, source identification,K-9/Arson Dog Unit, identification equipment,mobile detection equipment and fire report.The claim begins when the fire investigator or investigation team responds to the incident and is billed for logged time only. E.FIRES Assignment- $400.00 per hour,per engine/$500.00 per hour,per truck Fire services include scene safety,investigation,and fire/hazard control. F.WATER INCIDENTS(Billed to Non-Residents Only) Level 1 -Basic Response- $400.00 plus $50.00 per hour,per rescue person Provision of basic response services including engine response,first responder assignment,perimeter establishment,evacuations,first responder set-up and command,scene safety and investigation(including possible patient contact and hazard control). Level 2-Intermediate Response - $800.00 plus$50.00 per hour,per rescue person Provision of Level 1 services as well as clean-up and material used(sorbents),minor hazardous clean-up and disposal.Billing will occur at this Level if the fire department of the city must clean up small amounts of gasoline or other fluids that are spilled as result of the incident. Level 3— Advanced Response- $2,000.00 plus$50.00 per hour,per rescue person and$100.00 per hour per HAZMAT team member. Provision of Levels 1 and 2 services as well as D.A.R.T. activation,donning breathing apparatus, detection equipment,set up and removal of decon center, recovery and 4 identification of material,and disposal and environment clean up.Also includes any disposal rates of contaminated equipment and material used at scene. Level 4—Itemized Response In the case of an unusual incident,the fire department of the city may bill each incident as an independent incident with actual costs and/or customary mitigation rates using itemized rates deemed usual,customary and reasonable(UCR). Such incidents will be billed using itemized amounts for each trained rescue person plus rescue products and equipment used. G.SPECIALRESCUE Itemized Response—Minimum of$400.00 per hour,per emergency response,plus $50.00 per hour,per rescue person. Each incident will be billed in accordance with actual costs and/or customary mitigation rates using itemized rates deemed usual, customary and reasonable ("UCR"),subject to the minimum amounts set forth above. Such incidents will be billed using itemized amounts for each apparatus and each trained rescue person per hour,plus rescue products and equipment used. H.CHIEF RESPONSE Itemized response -$250.00 per hour. Chief response services will be charged when the Fire Chief for the fire department of the city directly responds to an incident, including the set-up of command and providing direction of the operations,safety,and administration of the incident. TABLE OF CONTENTS Section Name Section Last Revised Number Date Date Date Date Table of Contents — — — — — Welcome Message 1.0 11/30/09 Fire Recovery USA History 1.1 11/30/09 Fire Recovery USA Operations 2.0 11/30/09 Equal Opportunity; Immigration Law 3.0 11/30/09 Equal Opportunity Statement 3.1 11/30/09 Immigration Law Compliance 3.2 11/30/09 Americans with Disabilities Act 3.3 11/30/09 Policies and Rules 4.0 11/30/09 Employment Classifications 4.1 11/30/09 Confidentiality 4.2 11/30/09 Personal Information and Employee Records 4.3 11/30/09 Attendance and Punctuality 4.4 11/30/09 Dress Code 4.5 11/30/09 Work Hours, Reporting and Overtime Pay 4.6 11/30/09 Time Clock and Time Cards 4.7 11/30/09 Lunch Periods and Breaks 4.8 11/30/09 Safety and Accident Rules 4.9 11/30/09 Smoking 4.10 11/30/09 Use of Fire Recovery USA Property 4.11 11/30/09 Use of Fire Recovery USA Computers, 4.12 11/30/09 E-mail, and Internet Substance Abuse 4.13 11/30/09 Harassment and Discrimination Policy 4.14 11/30/09 Performance & Salary Reviews; Provisional 4.15 11/30/09 Period Payroll 4.16 11/30/09 Reported Absences 4.17 11/30/09 4.13 Substance Abuse Policy Fire Recovery USA takes seriously the problem of drug and alcohol abuse and is committed to providing a work-place free of such substances. This Substance Abuse Policy applies to all em- ployees of Fire Recovery USA. No employee is allowed to consume, possess, sell, or purchase any alcoholic beverage on any property owned by Fire Recovery USA, or in any vehicle owned or leased by Fire Recovery USA. No employee may use, possess, sell, transfer, or purchase any drug or other controlled substance that may alter an individual's mental or physical capacity while working for Fire Re- covery USA. The exceptions are over-the-counter pain relievers and the like, used as intended and directed, and any other drugs that have been prescribed to you, and which are being used as prescribed by your doctor. Fire Recovery USA will not tolerate employees that are impaired by or under the influence of alcohol or drugs while working. In cases where the use of alcohol or drugs poses a threat to the safety of other people or property, you must report the violation. Employees who violate our Substance Abuse Policy will be sub- ject to disciplinary action, up to and including termination. As a part of Fire Recovery USA's policy to ensure a drug and alcohol free workplace, within the limits of applicable federal, state, and local laws, Fire Recovery USA reserves the right, in its sole discretion, to test for drugs and alcohol at its own expense. Some such situations may in- clude, but are not limited, to the following: A. In conjunction with an offer of employment with Fire Recovery USA; B. Where there are reasonable grounds for believing an employee is under the influ- ence of alcohol or drugs; C. As part of an investigation of any accident in the workplace in which there are rea- sonable grounds to suspect alcohol and/or drugs contributed to the accident; D. On a random basis, where allowed by statute; E. As a follow-up to a rehabilitation program, where allowed by statute; F. As necessary for the safety of employees, customers, or the general public where allowed by statute. All tested employees will be able to receive a copy of the laboratory results that certify the re- sults or the testing done. It is a condition of your employment and continued employment with Fire Recovery USA that you comply with the Substance Abuse Policy. 414 Harassment and Discrimination Policy Fire Recovery USA is proud of its work environment in which all employees are treated with re- spect and dignity. It is our policy that all employees have the right to work in an environment free from any type of illegal discrimination or harassment, including racial and sexual harass- ment. Any employee found to have engaged in any form or discrimination or harassment, whether verbal, physical, or arising out of the work environment, and whether in the work place, at work assignments off-site, at Fire Recovery USA-sponsored social functions, or elsewhere, is unacceptable and will not be tolerated. Fire Recovery USA's general harassment policy is designed to ensure that all individuals can work in an environment that promotes equal opportunities and prohibits discrimination and har- assment on the basis of race, religion, color, sex, age, national origin, mental or physical disabil- ity, veteran or family status, sexual orientation, or any other status or condition protected by ap- plicable federal, state, or local laws. Remember, Fire Recovery USA is a multi-cultural firm and we must all be sensitive to and toler- ant of the background of others. When in doubt, don't say it or do it. Sexual Harassment: For purposes of this policy, sexual harassment is defined as follows: Unwelcome or unwanted sexual advances, requests for sexual favors, and other verbal, non- verbal, or physical conduct of a sexual nature when (1) submission to or rejection of this conduct by an individual is used explicitly or implicitly as a factor in decisions affecting hiring, evalua- tion, promotion, or other aspects of employment; or (2) this conduct substantially interferes with an individual's employment or creates an intimidating, hostile, or offensive work environment. Examples of sexual harassment include, but are not limited to, unwanted sexual advances; de- mands for sexual favors in exchange for favorable treatment or continued employment; repeated sexual jokes, flirtations, advances, or propositions; verbal abuse of a sexual nature; graphic commentary about an individual's body, sexual prowess, or sexual deficiencies; leering; whis- tling; touching; pinching; assault; coerced sexual acts; suggestive insulting; obscene comments, gesture, and emails; and display in the work place of sexually suggestive objects or pictures. Racial Harassment: For purposes of this policy, racial harassment is defined as all inappropriate conduct and activity taken against an individual because of his or her race and/or national origin. r ELGIN - - THE CFTY IN THE SUBURB AGENDA ITEM: C MEETING DATE: February 22, 2012 ITEM: RFP 11-064, Contract with Fire Recovery USA, LLC for the Recovery of Funds from Fire and Res- cue Efforts (Expenditure recovery) OBJECTIVE: Establish and implement a program to collect mitigation fees for the deployment of certain emergency services within Elgin for services provided and/or rendered by the fire department. RECOMMENDATION: Award a contract to Fire Recovery USA, LLC for the recovery of funds from fire and rescue ef- fort s. BACKGROUND Incidents requiring fire and other emergency services response activities are costly to the city. The compliance with rules and regulations set forth by the Environmental Protection Agency, the Department of Homeland Security and other governmental entities requires additional equipment and training that create additional demands on all operational aspects of fire de- partment services. The city has investigated different methods of maintaining a high level of quality with respect to fire and other emergency services capabilities throughout times of consistently increasing ser- vice demands and reduced revenue sources. Timely and effective management of emergency situations saves lives and reduces property and environmental damage. Fiscally, this response goal decreases the cost of incidents to individuals, businesses and insurance carriers. When revenue resources are sought to further support fire response, increasing property taxes to meet the service demands would not be equitable to property owners when a portion of those taxes are already utilized to provide for such services. Many of the motor vehicle inci- dents and other emergency services provided by the fire department involve individuals not owning property or paying taxes within Elgin. When fire services are invoiced, collection of funds has been difficult and recovery efforts historically have not risen to the billable level. The city council concurred that vendor services increasing fee recovery would be beneficial and ap- 1 proved ordinance section 2.40.225, entitled "Mitigation Rates for Certain Emergency Services," to support the endeavor. OPERATIONAL ANALYSIS In an effort to increase collection success, a comprehensive request for proposal (RFP) was is- sued by staff and advertised on the city's website and local paper, seeking qualified vendors to fulfill the duties and obligations related to calls for service that include: • Motor vehicle incidents • Hazardous materials incidents • Pipeline incidents/ power line incidents • Fire investigations • Fires • Water incidents (billed to non-residents only) • Special rescue • Chief officer response The costs the city would like to recover with the above identified incidents are associated with personnel, supplies and equipment used in the emergency response. In addition to these costs, additional expectations include the fostering of a strong working relationship between the ven- dor and the city; one that will maintain integrity with the public and insurance providers. A workflow for this process has already been developed that includes minimal new efforts re- quired by city staff. The electronic information the vendor will receive through an automated process is considered public information; no HIPPA information will be transferred. On December 15, 2011, an invitation for bids for fire department collection of fire and rescue efforts was published on the city's website, as well as in the Courier News. On January 31, 2012, four proposals were received. Responding vendors included Paramedic Billing Services, Fire Re- covery USA, Lifequest Services, and Intermedix. Of the four, Fire Recovery USA was the only re- sponding firm that provides fire and rescue services collection efforts and met all RFP require- ments: • Paramedic Billing Services: only bid for medical services and not any of the fire or res- cue services. • Lifequest Services: non-compliance with the RFP by not signing the document. They also were primarily a medical billing agency. • Intermedix: primarily a medical billing agency with no fire and rescue services clients in Illinois. 2 /�•� Fire Recovery: selected, largely due to their involvement and experience with billing for C fire and rescue services with multiple fire departments (18) in northern Illinois. Fire Re- covery USA has agreed to reduce their commission to 18 percent as long as the fire de- partment can submit insurance information on 80 percent of the reports submitted for fee recovery. INTERESTED PERSONS CONTACTED None. FINANCIAL ANALYSIS Each month, Fire Recovery USA will mail the city a check for all payments received less their col- lection fee of 18 percent. These fees will be deposited into a general fund cost recovery ac- count. BUDGET IMPACT FUND(S) ACCOUNT(S) PROJECT#(S) AMOUNT AMOUNT BUDGETED AVAILABLE N/A N/A N/A N/A N/A LEGAL IMPACT None. ALTERNATIVES The council may choose not to award the contract and instruct staff to rebid and delay recovery efforts. NEXT STEPS Execute contract with Fire Recovery USA, LLC. 3 Originators: John P. Fahy, Fire Chief Final Review: Colleen Lavery, Chief Financial Officer William A. Cogley, Corporation Counsel/Chief Development Officer Richard G. Kozal, Assistant City Manager/Chief Operating Officer Sean R. Stegall, City Manager ATTACHMENTS A: Contract with Fire Recovery USA, LLC Ai 4 SERVICES AGREEMENT This Services Agreement ("Agreement") is made effective as of , 2012 ("Effective Date"), by and between FIRE RECOVERY USA, LLC, a California limited liability company ("Company"), and City of Elgin, ("City"). The Company and City are referred to herein individually as a"party"and collectively as the"parties." RECITALS WHEREAS, Company engages in the business of performing billing services ("Company Services") for United States Fire Departments in connection with the motor vehicle incidents and other emergency incidents at which the fire departments provide emergency services: and WHEREAS, City seeks the services of Company to assist with the billing for services that City provides in connection with motor vehicle incidents and other emergency incidents; and WHEREAS, Company and City desire to enter into this Agreement to memorialize their agreements regarding the Company Services to be provided to City. NOW, THEREFORE, in consideration of the mutual representations, warranties and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and City agree as follows: ARTICLE 1 ENGAGEMENT 1.1. Enga eg ment: City hereby engages Company to provide the Company Services described in Article 4 herein, and City hereby accepts such engagement, all on the terms and conditions set forth herein. Company will determine the method, detail and means of performing the services detailed below. ARTICLE 2 REPRESENTATIONS AND WARRANTIES 2.1. Representations and Warranties of Company: Company hereby represents and warrants to City that, at all times during the term of this Agreement, Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of California. 2.2. Representations and Warranties of City: City hereby represents and warrants to Company that, at all times during the term of this Agreement, City is a organized City established pursuant to the laws and ordinances of the state in which City is located. ARTICLE 3 COMPANY STATUS AND QUALIFICATIONS 3.1. Independent Contractor: Company enters into this Agreement, and will remain throughout the term of the Agreement, as an independent contractor. Company agrees that it will not become an employee, partner, agent or principal of City while this Agreement is in effect. 3.2. Payment of Income Taxes: Company is responsible for paying when due all income taxes, including estimated taxes, incurred as a result of the compensation paid by City to Company for services rendered under this Agreement. On request, Company will provide City with proof of timely payment. Company agrees to indemnify City for any claims, costs, losses, fees, penalties, interest,or damages suffered by City resulting from Company's failure to comply with this provision. 3.3. Use of Employees or Subcontractors: Company may, at Company's own expense, use any employees or subcontractors as Company deems necessary to perform the services required of Company by this Agreement. City may not control, direct, or supervise Company's employees or subcontractors in the performance of those services. 3.4. Qualifications: Company represents that it is qualified and has the skills necessary to perform the services under this Agreement in a competent and professional manner, without the advice or direction of City. 3.5. Ownership Interest: Company will have no ownership interest in City. 3.6. No Benefit Contributions: Company shall have no obligation under this Agreement to compensate or pay applicable taxes or provide employee benefits of any kind to any person employed or retained by City. 3.7. Attorney-in-Fact: City appoints Company as City's attorney-in-fact for the following purposes: (a) Billing and Collections: To bill and collect ("Collections") all revenue earned by and due to City, in connection with City's provision of emergency services provided/rendered at the sites of motor vehicle incidents and other emergency incidents, and to receive all Collections on City's behalf and to sue for and give satisfaction for monies due on account and to withdraw any claims, suits, or proceedings pertaining to or arising out of Company's or City's right to collect such amounts; and (b) Endorsement: To take possession of and endorse in City's name any notes, checks, money orders, and any other instruments received as Collections. 2 ARTICLE 4 GENERAL RESPONSIBILITIES OF COMPANY 4.1. Minimum Amount of Service: Company agrees to devote as much time and attention to the performance of the Company Services under this Agreement as may be, in Company's sole discretion, required to accomplish the tasks described herein to accomplish the results for which the Company is responsible under this Agreement. 4.2. Company Services: Company agrees to perform the Company Services related to billing and collecting set forth in the "List of Company Services" attached hereto as Schedule "A" and incorporated herein by reference. 4.3. Non-Exclusive Relationship: Company may represent, perform services for, and contract with as many additional clients, persons, or companies as Company, in Company's sole discretion, sees fit. 4.4. Time and Place of Performing Work: Company may perform the services under this Agreement at any suitable time and location Company chooses. 4.5. Materials and Equipment: Company will supply all materials and equipment required to perform the services under this Agreement. 4.6. Workers' Compensation: Company agrees to provide workers' compensation insurance for Company and Company's employees and agents and agrees to hold harmless and indemnify City for any and all claims arising out of any injury, disability, or death of any of Company's employees or agents. 4.7. Assignment: Neither this Agreement nor any duties or obligations under this Agreement may be assigned by Company without the prior written consent of City, which consent shall not be unreasonably withheld. ARTICLE 5 COMPENSATION OF COMPANY 5.1. Compensation for Company Services: All Company Services provided pursuant to this Agreement will be provided in accordance with the terms, including compensation amounts and schedule of remittance, set forth in the "List of Company Services," attached hereto as Schedule A. 5.2. The provisions of Article l I of this Agreement will govern any dispute associated with compensation. 3 ` L 1 ARTICLE 6 OBLIGATIONS OF CITY 6.1. Cooperation of City: The City agrees to comply with all reasonable requests of Company and provide access to all documents reasonably necessary to the performance of Company's duties under this Agreement. The City shall be responsible for initially insuring,and continuing to review, local and state laws in the City's jurisdiction to assure adequate legal authority for Company to engage in the Services described herein on behalf of City. 6.2. Assignment: Neither this Agreement nor any duties or obligations under this Agreement may be assigned by City without the prior written consent of Company, which consent shall not be unreasonably withheld. ARTICLE 7 CITY AUTHORIZATION 7.1. Authorization: Notwithstanding other provisions of this Agreement, Company shall obtain authorization from City prior to performing any of the following: (a) The sale conveyance, transfer, pledge exchange, assignment, hypothecation, or encumbrance of City's interest in any sums owed to City;and (b) All other limitations as stated by the terms of this Agreement. ARTICLE 8 TERMINATION OF AGREEMENT 8.1. Termination on Notice: Notwithstanding any other provision of this Agreement, either party may terminate this Agreement at any time by giving thirty days (30) written notice to the other party. Unless earlier terminated as set forth below, this Agreement shall be effective as of the date first set out above and shall continue for a period of one (1) year thereafter. This Agreement shall automatically renew for successive one (1) year periods, unless either party provides written notification to the other party of its decision not to renew this Agreement. 8.2. Termination on Occurrence of Stated Events: This Agreement will terminate automatically on the occurrence of any of the fallowing events; (a) Bankruptcy or insolvency of either party; (b) The assignment of this Agreement by either party without the consent of the other party; the parties agree that neither party will unreasonably withhold consent to such an assignment. 8.3. Termination for Default: if either party defaults in the performance of this Agreement or materially breaches any of its provisions, the non-breaching party may terminate this Agreement by giving written notification to the breaching party. Termination will take effect immediately on receipt of notice by the breaching party or five days (5) after mailing of notice, 4 1A f •• whichever occurs first. For the purposes of this paragraph, material breach of this Agreement includes, but is not limited to,the following: (a) Company's failure to complete the services specified in the Description of Services; (b) City's material breach of any representation, warranty or agreement contained in this Agreement; (c) Company's material breach of any representation, warranty or agreement contained in this Agreement; (d) City's yearly billable run volume is at or below six runs (6). ARTICLE 9 PROPRIETARY RIGHTS 9.1. Confidential Information: Any written, printed, graphic, or electronically or magnetically recorded information furnished by City for Company's use are the sole property of City. This proprietary information includes, but is not limited to, customer requirements, customer lists, marketing information, and information concerning the City's employees, products, services, prices, operations, and subsidiaries. Company will keep this confidential information in the strictest confidence, and will not disclose it by any means to any person except with the City's approval, and only to the extent necessary to perform the services under this Agreement. This prohibition also applies to Company's employees, agents, and subcontractors. On termination of this Agreement, Company will return any confidential information in Company's possession to City. ARTICLE 10 INDEMNIFICATION 10.1. Indemnification by City: City shall indemnify Company and hold it harmless from any and all liability, including reasonable attorney's fees, caused by or resulting from (i) any negligent or intentional acts or omissions of City or any officer, director, agent, or employee thereof, or (ii) any breach of this Agreement by City. 10.2. Indemnification by Company: Company shall indemnify City and hold it harmless from any and all liability, including reasonable attorneys' fees, caused by or resulting from (i) the negligent or intentional acts or omissions of Company or any officer, director, agent, or employee thereof, or(ii) any breach of this Agreement by Company. ARTICLE 11 GENERAL PROVISIONS 11.1. Governing Law: This Agreement shall be governed in all respects by the laws of the State of California, without giving effect to any choice or conflict of law provision or rule 5 (whether of the State of California or any other Jurisdiction that would cause the application of the laws of any jurisdiction other that the State of California). 11.2. Entire Agreement: This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements,representations, and understanding of the parties. 11.3. Successors and Assigns: Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. No party may assign any of its rights or obligations hereunder without the express written consent of the other party hereto, which consent may not be unreasonably withheld; provided, however, any party may assign any and all of its rights and interests hereunder to one or more of its affiliates and designate one or more of its affiliates to perform its obligations hereunder; provided, however, that such party remains liable for full and total performance of its obligations hereunder. 11.4. Notices: Any notices authorized to be given hereunder shall be in writing and deemed given, if delivered personally or by overnight courier, on the date of delivery, if a Business Day, or if not a business day, on the first Business Day following delivery, or if mailed, three days after mailing by registered or certified mail, return receipt requested, and in each case, addressed, as follows: If to the Company to: with a copy to: Fire Recovery USA, LLC The Watkins Firm.APC 219 Vernon Street 4520 Executive Drive, Suite 105 Roseville, CA 95678 San Diego, California 92121 Attention: Mike Rivera Attention: Chris Popov, Esq. If to City to: with a copy to: Attention: Attention: Or, if delivered by telecopy, on a Business Day before 4:00 PM local time of addressee, on transmission confirmed electronically, or if at any other time or day on the .first Business Day succeeding transmission confirmed electronically, to the facsimile numbers provided above, or to such other address or telecopy number as any party shall specify to the other, pursuant to the foregoing notice provisions. When used in this Agreement, the term "Business Day" shall mean a day other than a Saturday, Sunday or a day on which commercial banks in San Diego are generally closed for business. 11.5. Waiver; Amendments: This Agreement, and the Transaction Documents, (i) set forth the entire agreement of the parties respecting the subject matter hereof, (ii) supersede any 6 prior and contemporaneous understandings, agreements, or representations by or among the parties, written or oral, to the extent they related in any way to the subject matter hereof, and (iii) may not be amended orally, and no right or obligation of any party may be altered, except as expressly set forth in a writing signed by such party. 11.6. Counterparts: This Agreement may be signed in several counterparts. 11.7. Expenses: Each party shall bear its own expenses incurred with respect to the preparation of this Agreement and the consummation of the transactions contemplated hereby. 11.8. Arbitration: (a) If at any time there shall be a dispute arising out of or relating to any provision of this Agreement, any Transaction Document or any agreement contemplated hereby or thereby, such dispute shall be submitted for binding and final determination by arbitration in accordance with the regulations then obtaining of the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) resulting from such arbitration shall be in writing, and shall be final and binding upon all involved parties. The site of any arbitration shall be within the County of Placer in the State of California. The award may be confirmed and enforced in any court of competent jurisdiction. The parties hereby agree that any federal or state court sitting in the County of Placer in the State of California is a court of competent jurisdiction. This paragraph does not limit in any way a party's right to seek injunctive relief in any state or federal court sitting in the County of Placer in the State of California (jurisdictional, venue and inconvenient forum objections to which are hereby waived by both parties), including recovery of fees and costs. (b) This arbitration clause shall survive the termination of this Agreement, any Transaction Document and any agreement contemplated hereby or thereby. 11.9. Waiver of Jury Trial; Exemplary Damages: THE PARTIES HERETO HEREBY WAIVE THEIR RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT OR ANY TRANSACTION DOCUMENT. NO PARTY SHALL BE AWARDED PUNITIVE OR OTHER EXEMPLARY DAMAGES RESPECTING ANY DISPUTE ARISING UNDER THIS AGREEMENT OR ANY TRANSACTION DOCUMENT CONTEMPLATED HEREBY. Signatures on following page: 7 I i I IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. COMPANY: FIRE RECOVERY USA, LLC. a California limited liability company Name: Craig Nagler Title: Chief Executive Officer CITY: City of Elgin an Illinois Municipal Corporation By: Name: Title: 8 ELGIN THE CITY IN THE SUBURBS- DATE: March 30, 2012 TO: John P. Fahy, Fire Chief FROM: Jennifer Quinton, Deputy City Clerk SUBJECT: Resolution No. 12-59, Adopted at the March 21, 2012, Council Meeting Enclosed you will find the agreement listed below. Please distribute this agreement to the other party and keep a copy for your records if you wish. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you. • Agreement with Fire Recovery USA, LLC