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Dilu de Alwis, Finance Director <br />City of Colton <br />650 N. La Cadena Drive <br />Colton, CA 92324 <br />Re: Renewal — Liability Claims Administration <br />Dear Dilu: <br />June 30, 2005 <br />The Service Agreement for liability claims administration expired on March 31, 2005. The <br />prior agreement was for six months. <br />I would propose the service renewal be changed to an annual agreement. I therefore propose <br />that the service agreement be renewed for the policy term of April 1, 2005 to March 31, <br />2006. <br />The agreement includes a quarterly administration fee of $7,200.00. <br />Expense Category <br />Price <br />$67.00 <br />Hourly Rate <br />Inc. <br />Telephone <br />$30.00 <br />Data Processing <br />$ 2.00 <br />Photographs - Each <br />Mileage — Per Mile <br />$ 0.45 <br />Copies — Per Page <br />$ 0.30 <br />Stenographic Per -Page <br />$ 4.50 <br />Office Expense <br />Inc. <br />$35.00 <br />Set-up Fee — Per File <br />Adjuster Miscellaneous <br />$ 1.00 <br />Office Miscellaneous <br />$ 1.00 <br />Index Bureau — Per Person <br />$ 8.00 <br />CARL WARREN & CO. <br />CLAIMS MANAGEMENT • CLAIMS ADJUSTERS <br />PO Box 6205 • San Bernardino, CA 92412 <br />Phone: (909) 884-8669 • (800) 762-3216 9 Fax: (909) 888-4888 <br />