HomeMy WebLinkAboutAgenda Statement 1981/08/04 Item 13COUNCIL AGENDA STATEMENT
Item ~ 13 .
Meeting Date 8/4/81
ITEM TITLE: Resolution~~p~Approving service agreement between City of
Chula Vista and Carl Warren & Company for
19 =
SUBMITTED BY: Director of Personn (4/5ths Vote: Yes No )
BACKGROUND: The Risk Management Division of the Personnel Department coordinates the
handling of public liability claims through the use of a claims administration service,
Carl Warren & Company. The contract for services runs for a fiscal year, and is up for
renewal. Therefore, it is my
RECOMMENDATION: That Council adopt the Resolution.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION: Fiscal year 1981-82 will be the third year of the agreement with Carl Warren
& Company for administration of the City's public liability claims. The Risk Management
Division has been entirely satisfied with the work of this firm and recommends that the
current contract be continued with the inclusion of two amendments.
The first amendment involves the change in responsibility for undisputed property damage
claims, adopted by Council Resolution No. 10399 on February 24, 1981. This amendment
gives to the City of Chula Vista Risk Manager authority to settle all undisputed
property damage claims up to $500 per occurrence. By giving this responsibility to the
Risk Manager, it is estimated that savings amounting to approximately $1,000 per year
will result. This change is incorporated in Section 3 of the contract.
The second amendment involves the rates to be charged for 1981-82. The past,
current and proposed rates for services are set forth below:
ITEM 1979-80 1980-81 1981-82 effective
8/1/81
Services $17.50 per hour $20.00 $22.00
(Adjusting Investigation)
Telephone 4% of services 4% 4%
Photograph $ 1.25 each $ 1.25 $ 1.25
Transportation .26 per mile .30 .30
Photocopies .15 each .20 .20
Secretarial $ 1.50 per page $ 2.00 $ 2.50
Office Expense * 10% of services 10% of services 10% of services
+$10.00 +$10.00 +$11.00
The quality of service received from Carl Warren & Company is
to that received from our prior claims administration service
more expense. In 1980-81 we paid approximately $7,000.00 for
compared to $6,000.00 for services received from the previous
Increases proposed are based primarily on increased rates whi~
must pay for adjustors and secretarial services.
significantly superior
without being significantly
claims administration
administrators in 1978-79.
~h Carl Warren & Company
FISCAL IMPACT:- It is estimated that claims administrative services will cost the City
between 7,000.00 and $10,000.00 in 1981-82 depending on claims experience.
* overhead plus 1/2 hour Services rate for file set-up charge.
Form A-113 (Rev. 11/79)