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Agenda Item No: 3 c.
Meeting Date: August 15, 2011
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Attorney
Prepared by: Lisa Goldfien
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SUBJECT:
.c
City Manager Approval: A)
Consideration of Adoption of a Resolution Approving and Authorizing the City Manager to
Execute an Agreement with George Hills Company for the Provision of Third Party Liability
Claims Administration Services for a Three Year Period (July 1, 2011 to June 30, 2014).
RIF -COMMENDATION: Staff recommends that the City Council adopt the Resolution.
In 2001, after an extensive RFP process to qualify, investigate and interview candidates to
administer the City's third -party liability claims, the City awarded a contract to George Hills
Company, a long-established Northern California provider of third -party liability claims
administration for public entities. Since then, George Hills has handled the City's liability
claims out of its Sonoma and Solano County offices. The claims have been handled efficiently,
promptly and at reasonable cost. Ms. Diane Caravello, the account manager for the City's
claims, has established an excellent working relationship with all City Departments. City staff
has worked closely with the company and have confidence in their ability to effectively manage
the City's liability claims.
ANALYSIS:
Under the City's agreement with George Hills Company for the past three years, the company
has charged the City $77,175.00 per year. This agreement expired on June 30'1' of this year,
although the parties have continued to operate on a month-to-month basis since then as
authorized in the agreement. Staff recommends that the City renew the contract for another three
I
years, effective July 1, 2011, on the terms set forth in the attached draft contract.
FOR CITY CLERK ONLY
File No.: �_to -
Council Meeting:
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
George Hills Company has experienced increased costs and charges in providing claims
administration services to the City; therefore the proposed agreement is for another three years,
with a somewhat higher compensation of $81,262.00 for the first year. Compensation for the
second and third years would be subject to negotiation but could not increase by more than 2%
per year.
FISCAL IMPACT:
The compensation of $81,262.00 for the first year of the new contract would be an increase of
approximately 5% over the prior contract amount. Compensation for the second and third years
would be subject to negotiation, but could potentially increase to not more than $82,887.24 the
second year and $84,544.98 the third year.
OPTIONS: 1. Adopt Resolution Approving and Authorizing, the City Manager to
Execute the Agreement with George Hills Company; or
2. Decline to Adopt the Resolution; or
Refer Back to Staff with Directions for Further Options
ACTION REQUIRED:
Adopt Resolution Approving and Authorizing the City Manager to Execute the Agreement with
George Hills Company for the Provision of Third Party Liability Claims Administration Services
for an Additional Three Years (July 1, 2011 to June 30, 2014).
ATTACHMENTS:
Resolution with Attached Exhibit "A"
RESOLUTION NO. 13228
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING AND AUTHORIZING THE CITY MANAGER
TO EXECUTE AN AGREEMENT WITH GEORGE HILLS
COMPANY FOR THE PROVISION OF THIRD PARTY LIABILITY
CLAIMS ADMINISTRATION SERVICES FOR A THREE YEAR
PERIOD (JULY 1, 2011 TO JUNE 30, 2014)
WHEREAS, the CITY has determined that the general liability claims administration
services provided by GEORGE HILLS COMPANY ("ADMINISTRATOR", herein) for the past
several years have proven to be exceptional; and
WHEREAS, the ADMINISTRATOR and CITY wish to continue this agreement for
additional years into the future; and
WHEREAS, ADMINISTRATOR has experienced increased costs and charges in
providing said claims adminsitration services; and
WHEREAS, the ADMINISTRATOR, mindful of City's current financial crisis, has
offered to continue to provide CITY general liability claims administration services for an
additional three (3) year period at a modest increase in cost.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Rafael hereby approves and authorizes the City Manager to execute an Agreement with George
Hills Company for the Provision of Third Party Liability Claims Administration Services for a
Three Year Period (July 1, 2011 To June 30, 2014), in the form attached hereto as Exhibit "A" and
incorporated herein, subject to final approval as to form by the City Attorney.
I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael
City Council held on the 15th day of August, 2011, by the following vote to wit:
AYES: Councilmembers: Brockbank, Connolly, Heller, Levine & Mayor Boro
NOES: Councilmembers: None
ABSENT: Councilmembers: None
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ESTHER C. BEIRNE, City Clerk
ROUTING SLIP FOR APPROVAL OF
CONTRACTS / AGREEMENTS / ORDINANCES / RESOLUTIONS
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF ORIGINAL
CONTRACT / AGREEMENT / ORDINANCE / RESOLUTION
BEFORE APPROVAL BY COUNCIL / AGENCY.
SRRA / SRCC AGENDA ITEM NO:
DATE OF MEETING: August 15, 2011
FROM: Lisa Goldfien t
DATE: August 10, 2011
ORIGINATING DEPARTMENT: City Attorney AU ' i 0 2 0 11
TITLE OF DOCUMENT:
CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH GEORGE
HILLS COMPANY FOR THE PROVISION OF THIRD PARTY LIABILITY CLAIMS
ADMINISTRATION SERVICES FOR A THREE YEAR PERIOD (JULY 1, 2011 TO JUNE
30, 2014).
Robert F. Epst n, City Attorney
(LOWER HALF OF FORM FOR APPROVALS ONLY)
Reviewed y City Manager / Executive Director APPROVED AS TO FORM:
,E
Li
Approve as Co nci / Agency Agenda Item City Attorney (Signator z
❑ NOT APPROVED