HomeMy WebLinkAbout2006-07-26 STAFF REPORTS 2K �pPLMSA�
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City Council Staff Report
DATE: July 26, 2006 CONSENT CALENDAR
SUBJECT: APPROVE AGREEMENT FOR AS-NEEDED CLAIMS ADMINISTRATION
AND ADJUSTMENT SERVICES WITH CARL WARREN & COMPANY
FROM: David H. Ready, City Manager
BY. Assistant City Manager--Administration
SUMMARY
The City has heretofore retained Carl Warren & Company to provide Third Party Claims
Administration and Adjustment Services. The current contract with Carl Warren expires
on July 315t. This action would approve a new agreement with Carl Warren & Company
for on-call third party claims administration and adjustment services for the current fiscal
year.
RECOMMENDATION:
1. Adopt Minute Order No. approving an agreement with Carl Warren &
Company for as-needed Third Party Claims Administration and Adjusting
Services in an amount not-to-exceed $60,000 for Fiscal Year 2006-07.
2. Authorize the City Manager to execute all necessary documents to effectuate this
purchase.
STAFF ANALYSIS:
In past fiscal years, the City administered general liability claims via a combination of in-
house staff and as-needed support services delivered by a third party claims
administration firm. In-house efforts were performed by a Risk Management Specialist
assigned to the Human Resources Department. In 2005, the Risk Management
Specialist resigned from City service. Instead of filling this position, the City Manager
decided, as part of an ongoing deficit reduction strategy, to transfer the general liability
claims program from Human Resources to the City Manager's Office as a function of
the Assistant City Manager for Administrative Services.
ITEM NO. .
City Council Staff Report
July 26, 2006 -- Page 2
Claims Administration and Adjusting Services
To assist staff in the processing and resolution of liability claims, the City Council
retained Carl Warren & Company to provide professional claims administration and
adjustment services. In addition to claims administration, Carl Warren & Company
provides a variety of specialized professionals services such as investigations,
independent medical examination and engineering services as needed.
Carl Warren & Company has provided claim and litigation management services since
1944- They serve over 650 clients from the high-tech, retail, transportation, consumer
products, healthcare, banking, and hospitality industries. They also serve numerous
public agencies throughout the country including several local cities such as Palm
Desert, Indio, Indian Wells, and La Quinta.
The City's current contract with Carl Warren is set to expire on July 31". In light of the
specialized nature of claims administration, staff believes that it would be beneficial to
continue using Carl Warren & Company for as-needed claims administration and
adjustment services.
The company's fee structure will remain the same as the current contract. Services will
be billed on a time and materials basis at a rate of $51 per hour. In addition, the
company charges a quarterly fee of $1,200 for account management, data entry, and
for access to their online reporting and tracking system.
Last year the City spent an estimated $54,700 for claims administration services
through Carl Warren & Company. Although it is difficult to estimate the number of
claims that may be filed against the City in any given year, staff has seen a discernable
increase in both the number and complexity of claims against the City over the past six
(6) months. Based on the number of claims currently being processed by Carl Warren
and a conservative estimate of claims to be filed against the City over the next twelve
(12) months, staff is recommending that the total contract sum paid to Carl Warren be
increased to $60,000.
FISCAL IMPACT: Finance Director Review
This is a budgeted expense. There are sufficient funds in the Risk Fund Account (#540-
5904-48415) to sufficiently cover the anticipated cost of this contract.
,fro . Butzla As� 1 tant City Manager David H. Ready, City ger
Attar ments:
Minute Orders (1)
MINUTE ORDER NO.
APPROVING AN AGREEMENT WITH CARL WARREN
& COMPANY FOR AS-NEEDED THIRD PARTY CLAIMS
ADMINISTRATION AND ADJUSTING SERVICES IN AN
AMOUNT NOT-TO-EXCEED $60,000 FOR FISCAL
YEAR 2006-07.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order approving an agreement with Carl Warren & Company for as-needed
Third Party Claims Administration and Adjusting Services in an amount not-to-
exceed $60,000 for Fiscal Year 2006-07, was adopted by the City Council of the City
of Palm Springs, California, in a meeting thereof held on the 26th day of July, 2006.
James Thompson, City Clerk