Report to Mayor and City Council
Tuesday, September 03, 2019
Consent
SUBJECT:
Title
CONSIDER AWARD OF GENERAL LIABILITY THIRD PARTY ADMINISTRATOR SERVICES FOR FY 2019/20, FY 2020/21 AND FY 2021/22 TO CARL WARREN & COMPANY (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 2014, and through four amendments the term was subsequently extended to September 30, 2019.
On April 11, 2019, the City issued a Request for Proposal (RFP) for General Liability Claims Administration. That RFP selection process had to be cancelled as a result of the withdrawal by Adminsure, the previous winning proposer. Subsequently, a new RFP was re-issued on July 11, 2019. Five proposals were received.
The proposals were evaluated based on: 1) TPA Service Fee; 2) Personnel Qualifications; 3) References; 4) Scope of Work Ability; 5) Claims Management Approach and 6) Settlement and Legal Costs Control. Adminsure received the highest score for TPA Service Fee, but Carl Warren and Company received higher scores in Scope of Work Ability and Claims Management Approach, resulting in the highest overall score of 89 out of 100. Carl Warren and Company's claims management resources and claims handling approach have been effective in consistently reducing litigation and settlement costs for the City for the past 41 years.
Staff recommends awarding a new three-year contract to Carl Warren & Company.
II. RECOMMENDATION
Recommendation
Staff recommends that City Council:
1. Award a three-year contract for general liability Third Party Administrator services to Carl Warren & Company for the period of October 1, 2019 through September 30, 2022 with an option to extend the contract fo...
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