HomeMy WebLinkAboutItem 2j: Agreement with NovaPro Risk Solutions for Third Party Administrator Services for General and Auto Liability Claims Administration AA
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,nity of t �` STAFF REPORT
Administrative Services Department
DATE: May 3, 2011
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director V97(
Prepared by: Michael A. Casalou, Human Resources Administrator - C i
SUBJECT: Agreement for Third Party Administrator Services for General and Auto
Liability Claims Administration
Recommendation: Authorize the City Manager to enter into a contract with
NovaPro Risk Solutions for Third Party Administrator Services for General
and Auto Liability Claims in the amount of $19,650.00 for Fiscal Year
2011 -12
SUMMARY
Staff is recommending the City Council authorize the City Manager to enter into a
contract with NovaPro Risk Solutions for Third Party Administrator Services for General
and Liability Claims Administration in the amount of $19,650.00 for Fiscal Year 2011 -12.
BACKGROUND
The City of Arcadia operates a self- funded general and auto liability insurance program
and requires the services of a third party administrator (TPA) to handle the day to day
operations of the City's system. AdminSure Inc. (formally known as Colen and Lee) has
administered the City's program since 1987.
The scope of services for the liability program may include processing and tracking
claim information, setting and updating reserves, arranging for investigations and
providing reports, provide clear and concise narratives, document all action taken on
claims, provide litigation management and provide notice to the tortfeasor of the City's
subrogation rights. Additionally, a TPA ensures that the City maintains compliance with
the requirements of changing liability best practices and laws. In -house staff does not
have the capacity or the expertise to properly manage this program. As a result, the
City has always contracted for this professional service.
DISCUSSION
The City entered into its current agreement with AdminSure Inc. for general and auto
liability claims administration in 1987. The term with AdminSure Inc. continues in effect
until terminated by the cancellation provisions in the contract.
Mayor and City Council
May 3, 2011
Page 2 of 2
As we have done recently with many of our contract services, staff went out to bid for
general and auto liability claims administration services back in February 2011. A total .
of six (6) firms responded to the RFP. After a review and evaluation of the proposals
submitted, three firms were selected to continue in the process and invited to an oral
interview. After considering several factors including price, related experience and
references, staff is recommending contracting with NovaPro Risk Solutions. NovaPro
Risk Solutions is a Limited Partnership with origins dating back to 1928. The company's
primary focus is liability claims management but also includes field /claims catastrophe
support, specialty risk, managed care and risk control.
The City's current JPA for workers compensation and liability (CIPA) went out to bid for
general and auto liability claims administration services on behalf of eight (8) member
cities in July 2009. An agreement was reached with the same firm (NovaPro Risk
Solutions) that runs through June 30, 2012. Staff is recommending the City of Arcadia
be added to that agreement via an addendum. As the current CIPA contract runs
through June 30, 2012, at such time it can be renewed, renegotiated or re -bid.
FISCAL IMPACT
The current annual cost for general and liability claims administration is $19,500.00.
Staff will include claims administration fees in the amount of $19,650.00 in the Fiscal
Year 2011 -12 Budget.
RECOMMENDATION
It is recommended that the City Council:
Authorize the City Manager to enter into a contract with NovaPro Risk Solutions
for Third Party Administrator Services for General and Auto Liability Claims in the
amount of $19,650.00 for Fiscal Year 2011 -12
APPROVED:
Donald Penman, City Manager