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CITY OF COLTON <br />AGENDA REPORT <br />FOR CITY COUNCIL MEETING OF AUGUST 189 1998 <br />TO: Honorable Mayor and City <br />APPROVAL: Henry Garcia, City <br />FROM: Dennis Morris, Human Resource Director <br />SUBJECT: Contract: Award Contract for Self -Insured General Liability Claims <br />Administration to Ward of North America <br />DATE: August 11, 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 expires on August 31, 1998. The current annual cost for general liability claims <br />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 <br />interviewed by personnel staff with the City Manager's office participating in part of the <br />interview process. Annual flat fee rates presented ranged from $29,400 to $49,700. The decision <br />for selection was based on the following: proposal and firm presentation, experience in adjusting; <br />early claims resolution and customer response philosophy, outside references, and our insurance <br />pool's recommendation (ICRMA). Ward of North America was rated the highest in all <br />categories. <br />Ward of North America has provided claim administration services to the City of Colton since <br />1988 and their proposal provides for a decrease in their prior fee of $2400 annually. Their <br />staff and adjusters are very knowledgeable and professional. They are very responsive and are in <br />constant communication with the City's legal counsel on litigated claims and monitor legal fees <br />charged to the City. They also notify the excess carrier on all excess claims pursuant to ICRMA <br />reporting guidelines. <br />Ward has agreed to implement an improved version of their prior customer service policy <br />that was deleted by prior City staff, due to a different view of claims reporting and management <br />style. This new policy provides for immediate claimant written and phone response. <br />Item # 8 <br />