HomeMy WebLinkAbout9/5/2012 - STAFF REPORTS - 2.G. Q ALM S,*
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c4OF01to CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 5, 2012 CONSENT CALENDAR
SUBJECT: EXTEND THE CONTRACT SERVICES AGREEMENT FOR CLAIMS
ADJUSTMENT AND ADMINISTRATIVE SERVICE WITH CARL WARREN
& COMPANY TO JUNE 30, 2015.
FROM: City Clerk and City Attorney
SUMMARY
The City Council will consider extending the current agreement with Carl Warren &
Company to June 30, 2015 to provide the City with claims adjustment and
administration services.
RECOMMENDATION:
1. Approve Amendment No. 5 to Agreement No. A5322 with Carl Warren & Company
extending the Agreement to June 30, 2015.
2. Authorize the City Manager to execute Amendment No. 5 to the Agreement.
STAFF ANALYSIS
Carl Warren & Company has provided claims adjustment and administrative services to
the City of Palm Springs and acted as its Third Party Administrator pursuant to an
agreement since 2006.
Carl Warren & Company has offered to extend the term of the Agreement, for a three
year period, with a slight cost increase in the second and third years. Carl
Warren & Company has previously worked cooperatively with the City to hold their fees
during the recent economic slowdown, and have not increased their fees charged to the
City of Palm Springs since 2008.
Rather than a market rate increase in the first year, Carl Warren & Company is
proposing to extend the contract for a three year period with a slight increase in years
two and three, to bring the City more in-line with similar governmental client rates over
the course of the three year period of the contract. For the first year of the agreement
2 .
ITEM NO.
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City Council Staff Report
September 5, 2012—Page 2
Claims Administration
the rate remains the same as the 2008 rate of $54.00 per hour. In year two, the rate
increases to $55.00 per hour, and in year three to $56.00 per hour.
The amendment to the agreement is for a three year period, unless either party issues a
thirty (30) day written notice of termination. Such termination may be with or without
cause.
Due to the specialized nature of claims administration, the City Manager, City Attorney
and City staff recommend continuing the City's relationship with Carl Warren &
Company for as-needed claims administration and adjustment services.
Carl Warren & Company has provided claim and litigation management service since
1944, and serves over 650 clients including but not limited to numerous public agencies
throughout the country, including several local cities.
Services will continue to be billed on a time and materials basis and with a "not to exceed"
cap of $65,000. Although it is difficult to estimate the number of claims and the
complexity of claims filed against the City in any given year, the cap as stipulated by the
agreement has not been exceed by the City.
FISCAL IMPACT:
The overall compensation pursuant to the Agreement remains capped at $65,000 per year
for the term of the Agreement. This is an approved Fiscal Year 2012-13 budgeted
expense, sufficient funds are budgeted in the Risk Fund [Account No. 540-5904-48415] for
the anticipated cost of the contract.
AMES THOMPSON, CITY CLERK DOUGL S C. !H LLAND, City Attorney
DAVID H. READY, C� NAGER
Attachments:
Amendment No. 5
02
FIFTH AMENDMENT TO CONTRACT SERVICES AGREEMENT
For
Claims Adjustment and Administration Service
(Carl Warren & Company and City of Palm Springs)
THIS FIFTH AMENDMENT TO CONTRACT SERVICES AGREEMENT
("Amendment') is made by and between CARL WARREN & COMPANY
("Contractor"), and CITY OF PALM SPRINGS, a charter city and a municipal
corporation ("City"), as of July 1, 2012, and amends that certain Contract Services
Agreement dated as of July 27, 2006, by and between Contractor and City
("Agreement'). All terms defined in the Agreement shall have the same meaning when
used herein.
RECITALS
A. Contractor has agreed to provide to City and City has agreed to purchase
from Contractor the Services which are the subject of the Agreement.
B. Contractor and City now mutually desire to amend the Agreement as set
forth below.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Contractor and City mutually agree to amend the Agreement as
follows:
AGREEMENT
1. Section 2.1 of the Agreement shall be replaced in its entirety and
amended to read as follows:
2.1 Compensation of Consultant. For the services rendered, pursuant
to this Agreement, Consultant shall be compensated in accordance with the "Schedule
of Fees' attached hereto as Exhibit "B" and incorporated herein by reference, but not
exceeding Sixty-Five Thousand Dollars ($65,000) ("Contract Sum") for services in any
given fiscal year commencing on July 1, 2012.
2. Section 5.1 of the Agreement shall be replaced in its entirety and
amended to read as follows:
5.1 Term. Unless earlier terminated in accordance with 5.2 of this
Agreement, this Agreement shall continue in full force and effect until completion of the
Services. The term of this Agreement shall be for a three year period ending
June 30, 2015, unless otherwise extended by written approval of the City.
Fifth Amendment Carl Warren Page 1 of 2 03
3. Exhibit B, Schedule of Fees, attached hereto and incorporated herein, is
hereby restated and replaced.
4. Except as expressly provided herein, all other terms and conditions of the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, Contractor and City have executed this Amendment
as of the date first written above.
"Contractor"
CARL WARREN & COMPANY
By:
Caryn Siebert, CEO
By:
Tom Boylan, COO
"City"
CITY OF PALM SPRINGS, a charter city and a municipal corporation
BY:
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Approved as to form by:
WOODRUFF, SPRADLIN & SMART
DOUGLAS C. HOLLAND, City Attorney
Fifth Amendment Carl Warren Page 2 of 2 04
CARL WARRCN & COMPANY
Claims Management a-a Solutions
City of Palm Springs EXHIBIT`B" July 1, 2012
3200 E. Tahquitz Canyon Way
Palm Springs, Ca. 92262
Expense Category Cale. Type Adj. Service 2012-2015
Hours Calculation 7/l/12-6/31/13- $54.00/hr
7/l/13-6/30/14- $55.00/hr
7/l/14-6/30/15- $56.00/hr
Telephone Percentage Included
Photos Calculation 2.00 ea
Miles Calculation Current IRS Standard
Mileage Rate
Photocopies Calculation Included
Stenographic Calculation Included
Adjuster Calculation 1.00 pass through
Miscellaneous
Office Expense Percentage 45% of services
Office Calculation 1.00 pass through
Miscellaneous
Set up Fee Calculation One half-hour of service
time
Data Processing Calcualtion 1 $30.00 per suffix
IndexBureau/ Calculation $18.00 each / MMSEA
OFAC $4.85 per
1099Issuance Calculation Included
The Administration Fee remains as $400.00 monthly,payable quarterly and the Cap remains at
the $65,000.00 annually.
Very Truly Yours,
17__— •'''�--
Mic Reed, Service and Retention Leader
Carl Warren & Company
Email: mreedna,carlwarren.com
AN EMPLOYEE-OWNED COMPANY
770 S. Placentia Avenue i Placentia, CA 92870
P. 0. Box 25180 i Santa Ana, CA 92799-5180 05
www,carlwarren.corn i Tel: 714-572-5200 i 800-572-6900 i Fax: 866-254-4423
CA License No.2607296