(16)AR 121906 Carl Warren & Co - Laserfiche WebLink

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ITEM #16 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF DECEMBER 19, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DILU DEALWIS, FINACE DIRECTOR SUBJECT: AWARD A THREE YEAR CONTRACT TO CARL WARREN & CO. FOR THIRD PARTY ADMINISTRATION SERVICES IN THE AMOUNT OF $7,200 PLUS COSTS PER QUARTER DATE: DECEMBER 11, 2006 BACKGROUND: The City currently contracts with Carl Warren & Company to provide third -party claims administration services. The contract expired on June 30, 2006. DISCUSSION/ANALYSIS: Diligent effort was made to solicit competitive proposals from providers of Third Party Administration Services. On June 15th, 2006 the Request for Proposal (RFP) was distributed to 197 potential bidders, and posted online; 24 potential bidders downloaded the solicitation; and formal proposals were received from three firms. On August 21st, 2006 the evaluation team evaluated all three proposals based on the criteria listed in the RFP, including Quality of Workplan/Methodology, Ability to Perform, and Overall Cost. Carl Warren & Co. and Gregory B. Bragg & Associates scored the highest and were invited to participate in a Best & Final Round. Staff utilized the Best & Final Round of negotiations to clarify responses to ensure that the resulting contract will provide the most effective cost containment efforts including a single charge for all "case -incident claims". In addition to clarifying the service to be provided, Carl Warren & Co. reduced its hourly fee for field investigations from $67.00 per hour to $50.00 per hour. With over 20 years of experience in administration of public entity liability claims, the proposal from Carl Warren & Co. demonstrated a flexible approach to designing a program to meet the City's specific needs. FISCAL IMPACT: The administrative fee is $7,200 per quarter; Additional fees will be charged as stated on files that require a field investigation. The funds for this contract have been budgeted and available in the Risk Management Professional Services Account — 605-6040-8601-2350.