For City Council Meeting [August 10, 2021]
TO: Honorable City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Stephen Erlandson, Deputy City Manager
Title
Request City Council to Approve Contract Amendment No. 1 for Third-Party Administration for General Liability Claims to Carl Warren & Company in an Amount not to Exceed $26,040.
Body
BACKGROUND
The City currently manages general liability claims as a Self-Insured Agency, with a Self-Insured Retention (SIR) of $500,000. The City uses the services of a Third-Party Administrator to administer the general liability claims up to the SIR. The Third-Party Administrator's responsibilities include claims handling and adjustment of losses within legal deadlines, investigation and settlement negotiation, attendance to applicable legal proceedings, maintenance of documentation on each claim, monitoring of reserves, updating procedures as the law changes, and reporting of Medicare and Medicaid information as directed by Federal regulation.
On October 24, 2017, the City entered into a three-year contract with two one-year options to extend, with Carl Warren & Company to administer general liability claims. This contract expired on June 30, 2021; however, there is an option in the original agreement to extend for one additional year.
ANALYSIS/DISCUSSION
Although the original agreement with Carl Warren & Company provides for an option to extend the agreement for a term of one additional year, staff recommends that the City issue a Request for Proposals for third-party general liability claims administration. The City will release a Request for Proposal for Third-Party Administration of the general liability claims on August 11, 2021.
Carl Warren & Company has been coordinating the City's third-party administration of general liability claims. In light of continuing litigation related to general liability claims, there is a need to continue the services of Carl Warren & Company while the City issues a Requ...
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