HomeMy WebLinkAboutAgenda Statement 1984/06/26 Item 20 • COUNCIL AGENDA STATEMENT
Item 20
Meeting Date 6/26/84
•EM TITLE: RESOLUTION /
,//,,6,47/ Approving Service Agreement Between City of Chula
Vista and Carl Warren & Company for 1984-85
IBMITTED BY: Director of Person - :1 (4/5ths Vote: Yes NoX )
:VIEWED BY: City Manager('
ICKGROUND: The Risk Management Division of the Personnel Department coordinates the
tndling of public liability claims through the use of a claims administration service,
trl Warren & Company. The contract for services runs for a fiscal year, and is up for
?newal . The City has contracted with Carl Warren & Company for this service since
)79-80, and in 1983-84 the firm became the claims administrator for most of the Joint
ewers Administration cities.
:COMMENDATION: Adopt the Resolution extending the attached service agreement with Carl
trren & Company for 1984-85.
)ARD/COMMISSION RECOMMENDATION: N/A
:SCUSSION: Fiscal year 1984-85 will be the sixth year of the agreement with Carl
wren & Company for administration of the City's public liability claims. Administration
!rvices include investigation of disputed claims over $500 (undisputed property damage .
aims under $500 are handled by staff) , claims adjusting, settlement offers, releases,
abrogation, and general claims management. The Risk Management Division recommends that
Ie current contract be continued.
trl Warren & Company has requested a rate increase for 1984-85. The amount for 1984-85
the amount that will be charged to all Joint Powers Authority (JPA) members. The
wvices charge requested is $26 per hour, up from $25 per hour in 1983-84. No change
; requested for photographs and mileage. The charge for photocopying has been deleted.
ie overhead charge is 10% of services, plus 1/2 hour file set up charge. This is the
Mme rate as 1983-84.
ie quality of service received from Carl Warren & Company is significantly superior to
lat received from our prior claims administration service. In 1983-84 we paid approxi-
ttely $13,500 for claims administration and $14,030.01 for legal fees in conjunction
th public liability claims; however, this includes $9,360.00 in attorney's fees for
le trial of the Lawson matter.
1r the future, the Risk Consultant for the JPA is assisting in the development of a
Lster contract for this service. It is anticipated that a savings can be realized
trough a more favorable billing system when several cities cooperate through the JPA.
ie new contract should be ready no later than the 1985-86 fiscal year.
:SCAL IMPACT: It is estimated that claims administrative services will cost the
ity between $15,000 and $18,000 in 1984-85, depending on claims experience.
by t;:,2
Ch ,
rm A-113 (Rev. 11/79) .�F
Dated