REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Danielle Tellez, Interim Director of Human Resources
PREPARED BY: DeAnna Soria, Risk Manager
Subject:
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Approve a Professional Services Contract with Carl Warren & Company for Liability Claims Administration Services
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Statement of Issue:
The City of Huntington Beach maintains a program of self-insurance for general liability pursuant to the California Tort Claims Act. The City desires to retain the services of Carl Warren & Company to provide assistance in administering this program for a period of three (3) years.
Financial Impact:
The proposed contract is for an amount not to exceed $750,000 over a three (3) year period. There is sufficient funding available in Fiscal Year 2023-24 for this agreement in General Liability Insurance Fund account # 55230502.69365. Future year costs will be included in future budgets.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute the agreement, “Professional Services Contract between the City of Huntington Beach and Carl Warren & Company Liability Claim Investigation and Processing” in the amount of $750,000 for three (3) years, and delegate authority to the City Manager to execute any extensions thereto.
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Alternative Action(s):
Do not approve the agreement and direct staff accordingly. This will require conducting a second Request for Proposal process to solicit bids from other qualified firms.
Analysis:
In 2023, the City issued a Request for Proposal (RFP) for a public sector third-party administrator (TPA) for liability claims administration services. Services include but are not limited to the following activities: program administration, claims administration, investigation services, property recoveries, and litigation management. Carl Warren ranked No.1 out of 2 vendors who submitted proposals (attachment 1) based on their experience and pricing. The City has utilized Carl Warren for many years and has been satisfied with their services. Staff recommends the approval of a three (3) year contract with Carl Warren to administer the City’s general liability self-insurance program.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. Professional Services Award Analysis
2. Professional Services Contract- Carl Warren & Company