HomeMy WebLinkAbout1983-06-07; City Council; 7058-1; Agreement amendment with Carl WarrenCIT\ OF CARLSBAD - AGENDA JILL
MTG. 6/7/83
DEPT. CM
TITLE: AMENDMENT OF AGREEMENT WITH CARL WARREN
AND COMPANY
DPPT. HD.
CITY ATTY.
CITY
RECOMMENDED ACTION:
Adopt Resolution No. yQL 3. ? . amending agreement with Carl
Warren and Company for claim administration services.
ITEM EXPLANATION:
On June 15, 1982, Council amended our agreement with Carl Warren and
Company for claim administration services. Under the amended agreement
with Carl Warren and Company, their hourly adjusting rate was $24.00.
The data processing charge remains the same, but the hourly adjusting
rate has been increased to $25.00 to allow for increased overhead.
Carl Warren and Company was selected two years ago from four proposals
submitted for claims administration services at the inception of the
City's self-insurance program. This firm handles the majority of this
work for Southern Califonia cities, and is recognized as the leader in
this field. Their rates are average for the industry and staff is
well-satisfied with the service provided. Consideration of any change
in administrators is not recommended at this time.
FISCAL IMPACT:
Impact of $1 increase in the hourly rate will be minimal. However,
because of the time involved in concluding disputed liability claims,
particularly where litigation is required, pending claims have increased
from 23 to 34 during the last twelve months. This trend will continue
and the resulting increase in workload will cause an escalation in costs.
Payments under this agreement are estimated at $12,000 for the 1983-84
Fiscal Year compared with approximately $8,500 for the current year.
EXHIBIT:
Resolution No.
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1 RESOLUTION NO. 7229.
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING AGREEMENT
3 WITH CARL WARREN AND COMPANY FOR CLAIM
ADMINISTRATION SERVICES.
4
5 WHEREAS, the City has contracted with Carl Warren and Company for
6 Claim Administration Services under the City's Liability Self-Insurance
7 Program; and
8 WHEREAS, said agreement provided that charges for said services should
9 include an hourly rate for adjusting services of $24.00; and
10 WHEREAS, after negotiations, the parties to said contract have agreed
11 that said rate should be increased to $25.00, effective July 1, 1983;
12 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
13 Carlsbad, California, as follows:
14 1. That Section 7 CONSIDERATION of said agreement shall be deleted
15 in its entirety.
16 2. That effective July 1, 1983 the following paragraph shall be
17 substituted therefore:
18 Section 7
19 CONSIDERATION
20 A. CITY agrees to pay CONTRACTOR a single charge of $11 for each claim
on which a reserve is established for monthly computerized status report on
21 all reported claims. In addition, the claim handling charges will be:
Adjuster's hourly rate, $25, $0.35 per mile, $1.50 per print for color
22 photographs and usual file expenses to include telephone, photocopy,
stenographic and office expense.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
on the 7th day of June , 1983, by the following vote,
to wit:
4 AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescott
5 NOES: None
ABSENT:
7
MARY H. CASJ/ER, Mayor
8
ATTEST:9
10
ALETHA L. RAUTENKRANZ, City Clerk
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