Report to Mayor and City Council
Tuesday, January 04, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT 1 TO THE CARL WARREN & COMPANY AGREEMENT FOR CONTRACT SERVICES FOR ADMINISTRATION OF THIRD PARTY LIABILITY CLAIMS ARISING FROM THE DOMINGUEZ CHANNEL ODOR INCIDENT AND ADOPT RESOLUTION 22-004 BUDGET TRANSFERS IN THE FY 2021-2022 HUMAN RESOURCES AND RISK MANAGEMENT DEPARTMENT BUDGET (CITY COUNCIL)
Body
I. SUMMARY
In early October 2021, a foul odor began emanating from the Dominguez Channel, a waterway that cuts through the City. Even though the Dominguez Channel is not the City's property, the City does not control the channel, maintain, or have jurisdiction over the channel, and there is no evidence the City caused the odor event, the City started receiving claims related to the Dominguez Channel Odor Event. Based on the latest count, the City has received over 1800 claims related to Dominguez Channel.
Carl Warren & Company, the City's third-party claim administrator (TPA) has agreed to provide administration services for up to 2500 Dominguez Channel claims at a flat fee of $100,000, and $50 per claim for each claim over 2500. Without this amendment, the City would be subject to a fee of $800 per bodily injury claim and $400 property damage claim after the initial 125 claims in the contract year. The proposed amendment would save the City hundreds of thousands of dollars in claim handling fees.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment 1 to the Carl Warren & Company agreement for contract services to administer the Dominguez Channel Odor Event claims at a flat rate of $100,000 for up to 2,500 claims, and $50 per claim for claims in excess of 2,500.
2. AUTHORIZE the Mayor to execute the amendment following approval as to form by City Attorney.
3. WAIVE further reading and ADOPT Resolution No. 22-004, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, BUDGET TRANSFERS WITHIN THE FISCAL YEAR 2021-22 BUDGET I...
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