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CITY OF COLTON <br />AGENDA REPORT <br />FOR CITY COUNCIL MEETING OF SEPTEMBER 15, 1998 <br />TO: Honorable Mayor and City Council <br />APPROVAL: Henry Garcia, City Manage <br />FROM: Dennis Morris, Human Resource Director <br />Joanne Knowles, Risk/Safety Analyst <br />SUBJECT: Contract: Award Contract for Self -Insured General Liability Claims <br />Administration to Ward of North America <br />DATE: SEPTEMBER 01, 1998 <br />BACKGROUND: The City currently has an agreement with Ward of North America for <br />administration of general liability claims and related services. The existing agreement is a two-year <br />agreement that has been extended until September 30, 1998. The current annual cost for general <br />liability claims administration services is $34,800. <br />DISCUSSION/ANALYSIS: Requests for proposal were sent out to fourteen (14) firms with a <br />deadline to respond of July 2, 1998; five (5) proposals were submitted. All five firms were interviewed <br />by personnel staff with the City Manager's office participating in part of the interview process. <br />Annual flat fee rates presented ranged from $29,400 to $49,700. The decision for selection was based <br />on the following: proposal and firm presentation, experience in adjusting; early claims resolution and <br />customer response philosophy, outside references, and our insurance pool's recommendation <br />(ICRMA). Ward of North America was rated the highest in all categories. <br />Ward of North America has provided claim administration services to the City of Colton since 1988 <br />and their proposal provides for a decrease in their prior fee of $2400 annually. Their staff and <br />adjusters are very knowledgeable and professional. They are very responsive and are in constant <br />communication with the City's legal counsel on litigated claims and monitor legal fees charged to the <br />City. They also notify the excess carrier on all excess claims pursuant to ICRMA reporting guidelines. <br />Ward has implemented an improved customer service policy that is included in the new <br />contract and outlined in the Ward Suggestion Sheet. This new policy provides for immediate <br />claimant written and phone response (see attachments). <br />Staff has an excellent working relationship with Ward of North America. Our City Attorney has <br />concurred with our opinion and selection. Staff is recommending the we accept the proposal from <br />Ward of North America and that we enter into a three-year agreement. <br />Item # 18 <br />