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STAFF REPORT <br />DATE: MARCH 2, 2010 <br />TO: MAYOR AND CITY COUNCI <br />FROM: ROD FOSTER, CITY MANAGER <br />03 <br />ITEM NO. <br />PREPARED BY: BILL SMITH, COMMUNITY SERVICES DIRECTOR 62 <br />SUBJECT: PROFESSIONAL SERVICES AGREEMENT — CARL WARREN & <br />COMPANY <br />RECOMMENDED ACTION <br />It is recommended that the City Council approve a professional services agreement with Carl <br />Warren & Company, for a period of two years, in an amount not -to -exceed $58,000. <br />GOAL STATEMENT <br />The proposed action will support the City's goal to provide efficient, cost-effective <br />administrative services for general liability claims. <br />BACKGROUND <br />The City of Colton's Risk Management function utilizes a third party administrator (TPA) to <br />provide claims administration services for general liability claims filed against the City. This <br />method ensures an impartial analysis of City liability, effective guidance as to course of action, <br />and when needed, representation on behalf of the City during negotiation and/or litigation. Carl <br />Warren & Company has provided effective service to the City in this capacity for several years, <br />however the most recent contract expired on December 7, 2009, leaving the City without claims <br />services. <br />ISSUES/ANALYSIS <br />It is essential that the City retain the services of an effective third party administrator for general <br />liability claims. Staff is recommending that Carl Warren & Company be retained for an <br />additional two years. This recommendation is based on the firm's effective service during the <br />previous contract, and its exclusive and intimate knowledge of the city's claims process, as well <br />as ongoing work on outstanding claims. <br />