REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Marissa Sur, Director of Human Resources
PREPARED BY: DeAnna Soria, Risk Manager
Subject:
title
Approve and Authorize Execution of a Professional Services Contract with Carl Warren & Company for Liability Claim Investigation and Processing
body
Statement of Issue:
Following the issuance and evaluation of a Request for Proposal (RFP) for Third Party Administration of the City’s General Liability claims, Staff recommends awarding a three-year contract to Carl Warren & Company.
Financial Impact:
The proposed contract is for an amount not to exceed $750,000 over a three (3) year period. There is sufficient funding in Fiscal Year 2023-24 for this agreement in General Liability Insurance Fund Account No. 55230502.69635. The annual fiscal impact of the base administrative fees during the term of the contract is: Year 1) $160,000; Year 2) $166,400; and Year 3) $173,056. Additional contract funding is for anticipated property recovery service fees, which will be offset by subrogation revenues. Future year costs will be included in future budgets.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract between the City of Huntington Beach and Carl Warren & Company for Liability Claim Investigation and Processing” in the amount not to exceed $750,000 for a three (3) year period.
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Alternative Action(s):
Do not approve the agreement and direct staff accordingly.
Analysis:
The City maintains a program of self-insurance for General Liability pursuant to the California Tort Claims Act and has contracted with Carl Warren since 1991 to provide third party administration services. The current contract with Carl Warren & Company expired on February 18, 2024. Following the City’s best practices to routinely search the open market for cost competitive and superior quality services, the City issued an RFP for qualified firms to provide General Liability Third Party Administration Services in 2023.
The City issued the RFP via Planet Bids and received proposals from two (2) qualified firms. Following an evaluation process by a panel of industry professionals, Carl Warren & Company was identified as the most qualified proposer based on their experience and pricing. Staff recommends the approval of a three (3) year contract with Carl Warren & Company.
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 Contract with Carl Warren & Company
2. Professional Service Award Analysis