HomeMy WebLinkAboutItem 12f - General Liability Claims Administration Services
DATE: December 18, 2018
TO: Honorable Mayor and City Council
FROM: Dominic Lazzaretto, City Manager
Prepared by: Lisa Mussenden, Chief Deputy City Clerk
SUBJECT: AGREEMENT FOR GENERAL LIABILITY CLAIMS ADMINISTRATION
SERVICES WITH CARL WARREN & COMPANY AND THE CALIFORNIA
INSURANCE POOL AUTHORITY (“CIPA”) ON BEHALF OF THE CITY
OF ARCADIA FOR CLAIMS ADMINISTRATION SERVICES IN THE
AMOUNT OF $62,000
Recommendation: Approve
SUMMARY
In August 2015, the City Council approved an Agreement for General Liability Claims
Administration Services (“Agreement”) with Carl Warren & Company and the California
Insurance Pool Authority (“CIPA) on behalf of the City of Arcadia for claims
administration services, which expired June 30, 2018. Based on the excellent services
provided through this Agreement, it is recommended that the City Council approve the
Agreement for General Liability Claims Administration Services with Carl Warren &
Company and the California Insurance Pool Authority (“CIPA”) on behalf of the City of
Arcadia for claims administration services for a three-year period commencing July 1,
2018, and ending June 30, 2021, in the amount of $62,000.
BACKGROUND
The City of Arcadia operates a self-funded general liability claims administration
program and requires the services of a third party administrator (“TPA”) to act as a
representative in connection with claims filed against the City, and litigation if the claim
evolves into a lawsuit.
The scope of services for the liability claims program includes processing and tracking
claims, setting reserves, arranging for investigations, if needed, providing reports,
documenting all actions taken on claims by the City, providing litigation management,
and notices to the City and CIPA. Additionally, the TPA will ensure the City maintains
Agreement for General Liability Claims
Administrative Services
December 18, 2018
Page 2 of 2
compliance with liability best practices and laws. The City has contracted for this
specialized service with Carl Warren & Company for more than 30 years.
DISCUSSION
The current Agreement between Carl Warren & Company and CIPA on behalf of the
City of Arcadia was executed on July 1, 2018. The $20,000, for Fiscal Year 2018-19,
was approved by the City Council in the budget; however, an appropriation was not
made. The fees for the claims administrative services did not increase and will remain
the same for the next three years.
It is therefore recommended that the City Council approve an Agreement for General
Liability Claims Administration Services with Carl Warren & Company and the California
Insurance Pool Authority (“CIPA”) on behalf of the City of Arcadia for claims
administration services for a three-year period commencing July 1, 2018, and en ding
June 30, 2021, in the amount of $62,000.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Under the terms of the Agreement, claims administration fees will total $62,000 over the
next three fiscal years. For Fiscal Year 2018-19, the cost is $20,000, and for Fiscal
Years 2019-20 and 2020-21, the cost would be $21,000.
Sufficient funds are budgeted in the Fiscal Year 2018-19 budget, and future year
administrative costs will be budgeted as part of the budget process.
RECOMMENDATION
It is recommended that the City Council approve an Agreement for General Liability
Claims Administration Services with Carl W arren & Company and the California
Insurance Pool Authority (“CIPA”) on behalf of the City of Arcadia for Claims
Administration Services in the amount of $62,000.
Attachment: Agreement for General Liability Claims Administration Services