2005 AGN JUL 19 I05 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JULY 19, 2005 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR OP_ ITEM #5 SUBJECT: Approve the Contract Extension with Carl Warren Co. the City of Colton's Public Liability Third Party Administrator DATE: July 6, 2005 BACKGROUND: In October 2001, the City of Colton entered into a contract with Carl Warren Co, the city's third party administrator for public liability claims. The said contract expired on April 1, 2005 and the service provider has been operating on a month to month contract thru June 30, 2005. The initial contract amount was for $28,800 plus expenses and has remained unchanged for the duration of the contract. These costs include all labor associated with the administration of all public liability claims (i.e., contacting the claimants, working with City Attorney and follow up letters, etc.). Carl Warren Co. has provided a very high level of service to the City of Colton and has assured cost- effectiveness in regard to claim settlements. DISCUSSION/ANALYSIS: A one year contract extension, beginning July 1, 2005 through June 30, 2006, is being sought in order to continue with uninterrupted service. The contract amount for the one year extension will be $28,800, which maintains the contract amount as was stipulated in the original contract. The Finance Department is very satisfied with the level of service it receives. The city's Purchasing Ordinance allows for contract extensions to be signed by the city manager upon Council approval (§3.08.070(g)). Due to an lengthy budget process, and the lack of a full-time staff person in the Risk Management Division of Finance, staff has not been able to go thru the Request For Proposal (RFP) process. On July 5 2005 the City Council approved the filling of a vacant position in the Risk Management Division of Finance, and after a few months of training, this staff person will be assigned the task of going thru with the RFP process to select the best qualified Third Party Administrator for the City's public liability claims administration. FINANCIAL IMPACT: The one year extension will cost $28,800 plus costs. This will be allocated to account # 605-6040- 8601-2350. ENVIRONMENTAL IMPACT: None. Pagel of 2