Report to Mayor and City Council
Tuesday, July 16, 2019
Consent
SUBJECT:
Title
CONSIDER A 90-DAY EXTENSION OF GENERAL LIABILITY THIRD PARTY ADMINISTRATION SERVICES CONTRACT WITH CARL WARREN AND COMPANY (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. On April 11, 2019, the City issued a Request for Proposal (RFP) for the ongoing TPA services after the expiration of the Carl Warren and Company contract on June 30. Five proposals were received and evaluated. However, the selected proposer withdrew its bid after the City had issued its intent to award the contract. So that we may re-issue the RFP and conduct the selection process over again, staff is requesting approval of a 90-day extension of the contract with Carl Warren and Company.
II. RECOMMENDATION
Recommendation
Staff recommends that the City Council approve a 90-day extension of the contract for general liability Third Party Administrator services with Carl Warren and Company for the period of July 1, 2019 through September 30, 2019, at a cost of $14,322.
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III. ALTERNATIVES
Take another action the City Council deems appropriate.
IV. BACKGROUND
Self-insured 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 residents.
The existing TPA contract expired on June 30, 2019. An RFP was issued on April 11, 2019. Staff evaluated the proposals and selected a new firm. However, the selected firm withdrew its bid after the City issued its intent to award the contrac...
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