HomeMy WebLinkAbout1985-07-02; City Council; 7058-3; Agreement amendment: Carl WarrenCIT0DF CARLSBAD — AGEND^BILL
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MTG 7/2/85
DEPT. RM
TITLE:
AMENDMENT OF AGREEMENT WITH
CARL WARREN & COMPANY
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RECOMMENDED ACTION:
Adopt Resolution No. fi~oP~Q , amending thexagreement for liability claims
administration services with Carl Warren & Co. for fiscal year 1985-86.
ITEM EXPLANATION: *
Carl Warren & Co.has been the City's liability claims administrator for the past
four years. This firm'handles the majority of work for Southern California
cities, and is recognized as the leader in the field of claims administration.
The City has been well satisfied with the services which they have provided.
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There are two section of the agreement where changes are being recommended.
First- is the change in hourly rate for adjusting services from $26 to $28 an
hour. The 8% rise is due to the increase in the cost-of- doing business and is
consistent with the rates charged by competing firms. This revised rate has -
been- guaranteed by Carl Warren for a period of two years until 3une 30, 1987.
The second recommended change in the agreement will provide greater control by
the City with respect to the Principal Account Adjuster assigned to handle our
claims. Propsed additional wording in the agreement will subject any change to
express agreement in writing by the City.
FISCAL IMPACT; j,
The cost of claims administration services provided by Carl Warren & Co.
fluctuates depending on the number and complexity of claims presented agains,;t
the City in any fiscal year. Payments to Carl Warren for fiscal year 1984-85
"will be approximately-$12,000 and the estimated costs for 1985-86 are $15,000.
EXHIBIT; '' ,
Resolution No.
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RESOLUTION NO.8080
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING AGREEMENT
WITH CARL WARREN & CO. FOR CLAIM
. ._ ADMINISTRATION SERVICES.
WHEREAS, the City contracted with Carl Warren & Co. 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 $26.00; and
WHEREAS, after negotiations, the parties to said agreement have agreed that
said rate should be increased to $28.00, effective 3uly 1, 1985; and
WHEREAS, the parties have also agreed that any change with respect to the
Principal Account Adjuster assigned to handle claims should be subject to the
express agreement in writing by the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That Section 7, CONSIDERATION, of said agreement shall be deleted in -
its entirety.
2. That effective Duly 1, 1985, 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, $28.00, $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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3. That Section 4, ADMINISTRATIVE SERVICES, of said agreement shall be
deleted in its entirety.
4. That effective 3uly 1, 1985, the following paragraph shall be
substituted therefore: .
Section 4-
ADMINISTRATIVE SERVICES
CONTRACTOR shall provide at least the following administrative services:
A. Assignment of a Principal Account Adjuster to the City to provide
liaison between CITY and CONTRACTOR. No change in the assignment of said
Principal Account Adjuster shall b'e effected without prior discussion and
approval in writing by CITY.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the
2nd day of July , 1985, by the following vote, to wit:
AYES: Council Members Casler, Lewis, Chick and Pettine
NOES: None
ABSENT: Council Member.Kulchin
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ATTEST:
ASLtR, Mayor .*~
CLAUDE A. LEWIS, Mayor Pro-Tern
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)