| | | | | | | | Agenda Item - 3.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Patricia Song
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Award a professional services contract to Carl Warren & Company for third-party liability claims administration services. (Cost: $365,060) (Action Item) | Date: | 4/28/2020 |
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| | | | | | | | OBJECTIVE
The purpose of this report is to request that the City Council award a contract to Carl Warren & Company to provide third-party liability claims administration services. |
| | | | | | | | BACKGROUND
The Finance Department is responsible for overseeing the City's self-insured general liability program for its tort and civil liabilities. As part of this program, the City contracts with a third-party administrator (TPA) specializing in public entity liability to manage the average of 125 claims the City receives annually. The TPA possesses the necessary skills and knowledge to effectively work with claimants, staff, and the City Attorney's Office to provide recommendations to the City as to the appropriate disposition of claims. The TPA acts as the City's representative in all matters related to the investigation, adjustment, and processing of claims for money damages asserted by third parties against the City. In addition, the TPA maintains a computer database of all claims and loss history for the City, provides legal support services for litigated claims, represents the City in Small Claims Court proceedings, and upon approval of the City, processes settlement and expense payments to the appropriated parties.
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| | | | | | | | DISCUSSION
The City has retained Carl Warren & Company for claims administration services since 1986. Their most recent contract with the City expires on April 30, 2020. A Request for Proposal (RFP No. S1264) was issued to ensure the City receives the best service at a fair price. The City received three proposals. City staff from Risk Management and the Police Department evaluated the proposals based on qualifications and experience, project plan, Risk Management Information System, and price. Based on the evaluation results, Carl Warren & Company is rated as the highest scoring firm for the City's claim administration services.
See Attachment 1 for a summary of the ratings. |
| | | | | | | | FINANCIAL IMPACT
The cost of the three-year contract is $365,060 and is funded through the City's Risk Management Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Award a contract to Carl Warren & Company to provide third party liability claims administration services, in the amount not to exceed $365,060 for the three-year term of the contract, with an option to extend the agreement for two additional one-year terms, for a total performance period of five years;
- Authorize the City Manager or his designee to execute the professional services agreement on behalf of the City and to make minor modifications as appropriate; and
- Authorize the City Manager or his designee to execute amendments to the agreement for any options to extend.
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