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CITY OF COLTON <br />AGENDA REPORT <br />For City Council Meeting of June 18, 1996 <br />TO: HONORABLE MAYOR & CITY COUNCIL J �/ <br />APPROVAL: Nabar Enrique Martinez, City Manager �] <br />FROM: Gracie Fern£ndez Harmon, Personnel Director <br />SUBJECT: Contract - Award Contract for Self-insured General Liability Claims <br />Administration to Ward-THG <br />DATE: June 12, 1996 <br />BACKGROUND: The City currently has an agreement with Ward-THG for administration of <br />general liability claims and related services. The existing agreement is a two-year agreement which <br />expires on June 30, 1996. The current annual cost for general liability claims administration <br />services is $34,800. <br />DISCUSSION/ANALYSIS: Requests for proposal were sent out to thirteen (13) firms with a <br />deadline to respond of May 2, 1996; six (6) proposals were submitted. The following proposals <br />01 were received: <br />Firm Name <br />Tristar Risk Management <br />John Glenn Adjusters <br />Carl Warren & Co. <br />Self -Insured Management <br />Ward-THG <br />Colen and Lee <br />Annual Flat Fee <br />$58,350 (up to 70 claims) <br />$50,250 (up to 80 claims) <br />$480 per claim ($48,000 annualized) <br />$33,750 (up to 65 claims) <br />$34,800 <br />$24,000 <br />Ward-THG has provided claims administration services to the City of Colton since 1988 and their <br />proposal does not include an increase in their fee. Their staff and adjusters are very knowledgeable <br />and professional. They are very responsive and are in constant communication with City's legal <br />counsel on litigated claims and monitor legal fees charged to the City. They also notify the excess <br />carrier on all excess claims pursuant to ICRMA reporting guidelines. <br />Staff has an excellent working relationship with Ward-THG and is recommending that we accept <br />the proposal from Ward-THG and that we enter into a two-year agreement. <br />FINANCIAL IMPACT: This is budgeted in Self Funded Insurance, Account No. 05-5090-35. <br />RECOMMENDATION: That City Council authorize staff to enter into a two-year agreement <br />with Ward-THG and authorize the City Manager to execute the agreement on behalf of the <br />City. <br />gen liab pmp agm[.doc i �' <br />