HomeMy WebLinkAbout1984-06-05; City Council; 7058-2; Agreement amendment: Carl WarrenJ v<CARLSBAD — AGEND$3ILL
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TITLE:
AMENDMENT OF AGREEMENT WITH
CARL WARREN AND COMPANY
DEPT. HD. ^7"
HITY ATTY\//9^
CITY MQR.«£^ —
RECOMMENDED ACTION:
Adopt Resolution No. 76> / ^/ , amending agreement with Carl
Warren and Company for claim administration services.
ITEM EXPLANATION;
On Dune 7, 1983, 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 $25.00. The hourly adjusting rate has been inreased to $26.00
to allow for increased overhead. This is a general increase in
their rates charged to all clients.
Carl Warren and Company was selected three 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 California cities, and is
recognized as the leader in this field. Their hourly rate remains
lower than 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 34 to 40 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 $15,000 for the 1984-85 Fiscal Year compared with
approximately $14,000 for the current year.
EXHIBIT;
Resolution No.
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RESOLUTION NO.7614
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING AGREEMENT
WITH CARL WARREN AND COMPANY FOR CLAIM
ADMINISTRATION SERVICES.
WHEREAS, the City contracted with Carl Warren and Company for
Claim Administration Services under the City's Liability Self-
Insurance Program; and
WHEREAS, said agreement provided that charges for said
services should include an hourly rate for adjusting services of
$25.00; and
WHEREAS, after negotiations, the parties to said contract
have agreed that said rate should be increased to $26.00,
effective Ouly 1, 1984;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
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1. Th'at Section 7 CONSIDERATION of said agreement shall be
deleted in its entirety.
2. That effective 3uly 1, 1984, the follow paragraph shall
be substituted therefore:
Section 7
CONSIDERATION
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 all claims. In addition, the claim
handling charges will be: Adjuster's hourly rate, $26.00, $0.35
per mile, $1.50 per print for color 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 5th day of June t 1984, by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescott
NOES: None
ABSENT: None
ATTEST:
MARY H. CASLER, Mayor
ALETHA L. RAUTENKRANZ, City CTerk
(SEAL)
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