HomeMy WebLinkAbout6/15/2011 - STAFF REPORTS - 2.G. LM$.
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CITY COUNCIL STAFF REPORT
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DATE: JUNE 15, 2011 CONSENT CALENDAR
SUBJECT: EXTEND THE CONTRACT SERVICES AGREEMENT FOR CLAIMS
ADJUSTMENT AND ADMINISTRATIVE SERVICE WITH CARL WARREN
& COMPANY TO J U N E 30, 2012.
FROM: City Clerk and City Attorney
SUMMARY
The City Council will consider extending the current agreement with Carl Warren &
Company to June 30, 2012 to provide the City with claims adjustment and
administration services.
RECOMMENDATION:
1. Approve Amendment No. 4 to Agreement No. A5322 with Carl Warren & Company
extending the Agreement to June 30, 2012.
2. Authorize the City Manager to execute Amendment No. 4 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, with no
increase or modifications to compensation, for an additional year, 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.
ITEM NO. �- �,
City Council Staff Report
June 15, 2011 --Page 2
Claims Administration
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. As stated above the rates have not been increased in several years, and
remain unchanged for this contract period. 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 for the
term of the Agreement. This is an approved Fiscal Year 2011-12 budgeted expense,
sufficient funds are budgeted in the Risk Fund [Account No. 540-5904-48415] for the
anticipated cost of the contract.
J;AMEES THOMPSON, CITY CLERK Christina Petteruto, Asst. City Attorney
for Douglas C. Holland, City Attorney
DAVID H. READY, CITY K R
Attachments:
Amendment No. 4
FOURTH AMENDMENT TO CONTRACT SERVICES AGREEMENT
For
Claims Adjustment and Administration Service
(Carl Warren & Company and City of Palm Springs)
THIS FOURTH 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, 2011, 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 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 one year period ending June 30,
2012, unless otherwise extended by written approval of the City.
2. Exhibit B, Schedule of Fees, attached hereto and incorporated herein, is hereby
restated and replaced.
3. Except as expressly provided herein, all other terms and conditions of the
Agreement shall remain in full force and effect.
[SIGNATURE PAGE FOLLOWS]
Fourth Amendment Carl Warren Page 1 of 2
IN WITNESS WHEREOF, Contractor and City have executed this Amendment
as of the date first written above.
"Contractor"
CARL WARREN & COMPANY
By:
Name:
Title:
By:
Name:
Title:
"City"
CITY OF PALM SPRINGS, a charter city and a municipal corporation
BY:
David H. Ready, City Manager
AIIEST:
James Thompson, City Clerk
Approved as to form by:
WOODRUFF, SPRADLIN & SMART
Christina Petteruto, Asst. City Attorney
for Douglas C. Holland, Esq., City Attorney
Fourth Amendment Carl Warren Page 2 of 2
,1
Exhibit 6
City of Pahn Springs June 6, 2011
i? )0 E. Tahquitz Can}on Way
Palm Springs. Ca. 92262
RE: Contract Extension by Letter Agreement—2011-12
Ladies and Gentlemen:
The undersigned is pleased to be assisting you with your contract for Services between Carl Warren R
Company and the City of Palm Springs.
Your Contract for Liability Claims handling will expire as of 6,30.11 and we propose extending it for
the Period commencing July 1, 2011 and ending June 30, 2012 at the same rate as the previous year.
Expense Category Calc. Type Adj. Sen-ice 2011-
2012
Hours Calculation $5.1.00
Telephone Percentage Included
Photos Calculation 2.00 ea
Aliles Calculation .51
Photocopies Calculation Included
Stenographic Calculation Included
Adjuster Calculation 1.00 pass through
Nliseellaneous
Office Expense Percentage 45%of sen ices
Office Calculation 1.00 pass through
liliscellaneous
Set up Fee Calculation One half-hour of
service time
Data Processing Calcualtion $30.00 per suffix
IndexSureau/ Calculation $18.00 each
OFAC MMSEA $4.85 per
1099Issuance Calculation Included
The.administration Fee remains as $400.00 monthly,payable quarterly and the Cap remains at the
annual amount of the prior contract, $65,000.00.
CANT 4 WARREN & CO.
i7n Etnpfayce-Owned Company
CLAIMS MANAGEMENT . CLAIMS ADJUSTERS
770 Placentia Avenue, Placentia, CA 92870-6832
Mail: P.O. Box 25180,Santa Ana, CA 92799-5180 j
Phone: (714)572-5200•(800)572-6900• Fax:(714)961-8131
Should this "Letter Agreement"be acceptable, please so indicate by signing and dating this page.
We-,alue our partnership and look forward to continuing our services to you and the City of Palm
Springs.
Very Truly Yours,
Michael Reed, Sern ice and Retention Leader
Carl Warren & Company
Email: mreed(mcarlwarren.com
ACKNOWLEDGED:
PLEASE PRINT NAME:
TITLE:
DATE:
2 Carl Warren & Co.
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