Report to Mayor and City Council
Tuesday, July 02, 2019
Consent
SUBJECT:
Title
CONSIDER AWARD OF GENERAL LIABILITY THIRD PARTY ADMINISTRATOR SERVICES TO ADMINSURE, INC. FOR FY 2019/20, FY 2020/21 AND FY 2021/22 (CITY COUNCIL)
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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 general liability claims. Carl Warren and Company has provided TPA services to the City since 1978. That contract will expire on June 30, 2019. On April 11, 2019, the City issued a Request for Proposal (RFP) for General Liability Claims Administration. Five proposals were received and evaluated. Staff recommends AdminSure, Inc.
II. RECOMMENDATION
Recommendation
Staff recommends that the City Council award a three-year contract for general liability Third Party Administrator services to Adminsure, Inc. for the period of July 1, 2019 through June 30, 2022 with an option to extend the contract for an additional two-year period (in one-year increments) through June 30, 2024 and authorize the Mayor to execute the contract.
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III. ALTERNATIVES
1. Select another firm as the City's general liability Third Party Administrator.
2. Reject the proposals and DIRECT staff to reissue the RFP.
3. 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 Government Code. The City's third party administrator must have litigation cost containment measures in place, have knowledge of City issues and provide prompt and professional communication with City staff and citizens.
The existing TPA contract will expire on June 30, 2019. An RFP was issued on April 11, 2019. Five...
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