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HomeMy WebLinkAbout1984-06-05; City Council; 7058-2; Agreement amendment: Carl WarrenJ v<CARLSBAD — AGEND$3ILL o DC QUQ. O \ ju oo AB# VD^r-*^ MTG. DEPT. RM 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: \ 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. in in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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) 3