Report to Mayor and City Council
Tuesday, September 05, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 3 TO THE CARL WARREN & COMPANY AGREEMENT (CONTRACT C-19-124) FOR ADMINISTRATION OF THIRD PARTY LIABILITY CLAIMS (CITY COUNCIL)
Body
I. SUMMARY
The City has been self-insured for its General Liability Program since its incorporation in 1968. The City maintains a contract with a third-party administrator (TPA) to administer the self-insured claims. Carl Warren & Company has provided TPA services to the City since 1978. The most recent contract agreement was awarded in September 2019 for a three-year term, expiring on September 30, 2022. The agreement was amended in 2021 to add scope and funding for handling the Dominguez Channel claims (Amendment No. 1). The agreement was amended a second time in 2022 to add a pre-negotiated extension of the term, and funding, to September 30, 2023 (Amendment No. 2).
Staff is now asking City Councill to consider approving Amendment No. 3, exercising the second of two optional one-year extensions provided in the contract; and increasing the funding for handling the higher than anticipated number of Dominguez Channel claims.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment No. 3 to the Carl Warren & Company agreement for Third Party Liability Claims Administration services, extending the contract term by one additional year through September 30, 2024, at a cost of $65,739.36; and adding $100,000 additional funding for handling the Dominguez Channel claims.
2. AUTHORIZE the Mayor to execute the amendment following approval as to form by City Attorney.
Body
III. ALTERNATIVES
Take another action the City Council deems appropriate.
IV. BACKGROUND
The administration of a self-insured general liability program requires a third-party claims administrator that is competent and performance oriented. General liability claims must be managed in accordance with the Tort Claims Act of the State Governm...
Click here for full text