1997 AGN MAY 20 I09 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For City Council Meeting of May 20, 1997 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: Malik Dantala. Freeman, City Manager FROM: Gracie Fernandez Harmon, Personnel Director SUBJECT: Contract Renewal - Hazelrigg Risk Management Services for Self-insured Workers' Compensation Claims Administration DATE: May 13, 1997 BACKGROUND: The City currently has an agreement with Hazelrigg Risk Management Services for administration of workers' compensation claims and related services. The existing agreement is a two-year agreement, which expires on June 30, 1997, with option for annual renewal. The current annual cost for general liability claims administration services is $70,560. DISCUSSION/ANALYSIS: The existing contract permits renewal of agreement. Committing to an additional two-year period will lock in costs with only a 2% annual increase. This results in cost of $72,000 for FY 1997-98 and $73,500 for FY 1998-99. Hazelrigg Risk Management Services has provided claims administration services to the City of Colton since July of 1992. Their staff and adjusters are very knowledgeable and professional. They are very responsive and are in constant communication with City's legal counsel on litigated claims and monitor legal fees charged to the City. They also notify the excess carrier on all excess claims pursuant to ICRMA reporting guidelines. Staff has an excellent working relationship with Hazelrigg Risk Management Services and is recommending that we renew the current agreement for an additional two-year period. This will provide for continuity and consistency in the services being provided. It would be costly and time consuming to change administrators with no assurance of maintaining the current level of services. FINANCIAL IMPACT: This is budgeted in Self Funded Insurance, Account No. 605-8600- 8600-2350. There is no impact to the budget for the current fiscal year. RECOMMENDATION: That City Council authorize staff to renew the agreement with Hazelrigg Risk Management Services for an additional two-year period and authorize the City Manager to execute the agreement on behalf of the City. workers comp prop agmt.doc Item No. 9