Report to Mayor and City Council
Tuesday, August 06, 2024
Consent
SUBJECT:
Title
CONSIDER AWARD OF CONTRACT FOR GENERAL LIABILITY THIRD PARTY CLAIMS ADMINISTRATION SERVICES FOR THE PERIOD OCTOBER 1, 2024 THROUGH SEPTEMBER 30, 2027 WITH TWO OPTIONAL ONE-YEAR EXTENSIONS THEREAFTER, TO CARL WARREN & COMPANY, LLC (CITY COUNCIL)
Body
I. SUMMARY
The City has been self-insured for its General Liability Program since its incorporation in 1968 and maintains a contract with a third-party administrator (TPA) to handle the self-insured claims. Carl Warren & Company has provided TPA services to the City since 1978. The most recent (and current) contract agreement was awarded in 2019, and through three amendments the term was extended to September 30, 2024, at which point the agreement is scheduled to expire.
In the last few years, there has been an increase in the number of liability claims including thousands from the Dominguez Channel incident, plus other property damage, bodily injury, pollution, and employment-related claims. This increase has resulted in a large inventory of open, active claims. To achieve the best outcome, it is important to maintain continuity in handling these claims utilizing the existing TPA.
Therefore, staff recommends awarding a new contract to Carl Warren & Company, LLC for the continued performance of the TPA services for the initial three-year term of October 1, 2024 through September 30, 2027, with two optional one-year extensions thereafter. Per Section 2.1 of the proposed agreement (Exhibit No. 1), the Contract Sum for the initial three-year term is $389,074, plus 18% of the net recovery from subrogation claims. The proposed rates of compensation are detailed in Exhibit "C" of the proposed agreement.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD and APPROVE the Agreement for Contract Services between the City of Carson and Carl Warren & Company, LLC, attached as Exhibit No. 1 (the "Agreement"); and
2...
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