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RESOLUTION (ID # 2793) DOC ID: 2793
co CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract
From: Helen Tran M/CC Meeting Date: 12/02/2013
Prepared by: Linda Wynn, (909) 384-5161
Dept: Human Resources Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of a Consultant Services Agreement Between Carl Warren & Company and the City
of San Bernardino for General Liability Claims Administration Services. (#2793)
Current Business Registration Certificate: Yes
Financial Impact:
Total Amount Not to Exceed: $100,700.00
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
On September 3, 2013, the Mayor and Common Council authorized and directed the City Manager to
issue a Request for Proposal(RFP)for Liability and Property Claims Administration Services (Resolution
No. 2013-261).
Background:
Within any organization, the effective use of resources are paramount to the improvement of cost
containment.Third-party administrators are prominent players with local governments and have the
expertise and capability to administer all or a portion of the claims process. Claims administration can be
cost effectively contracted by cities or self-insuring companies to administer services, including claims
administration,premium collection,enrollment and other administrative activities.
By direction of the Mayor and Common Council, staff prepared a Request for Proposal (RFP), F-14-13,
dated September 26, 2013. Six (6) responses to the RFP were received and evaluated by the Human
Resources Division Manager. The Third-Party Administrator(TPA)vendor responses are listed below:
Carl Warren&Company $110,700
Acme Administration $184,000
TRISTAR $210,014
Ron Phares&Company $217,000
York $281,082
George Hills Company $295,720
On November 18, 2013, the top three companies were interviewed (Carl Warren, Acme Administration
and Tri Star). Overwhelmingly, Carl Warren & Company was the top presenter and also provided the
lowest quote, $110,700 annually. Additional clarifications of an ambiguity with Carl Warren&Company
Updated: 11/26/2013 by Georgeann"Gigi" Hanna Packet Pg. 198
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yielded a $10,000 quote reduction, to $100,700, for a multiple-year agreement. This amount is in line
with the City's estimate for the General Liability TPA services.
It shall be noted that Carl Warren&Company has a San Bernardino office and all of the TPA services for
the City will be performed out of that office. Immediately apparent during the interview process was Carl
Warren & Company's impressive day-to-day operational approach and methodology for preparing and
supporting the defense of litigated claims, investigating and managing tort claims, conducting safety
assessment training and processing claims data.
Carl Warren & Company has been administering claims for self-insured agencies in California for over
40 years.Approximately 60%of its work in the state is with public agencies,totaling close to 200 cities.
Essentially, outsourcing to Carl Warren & Company would yield a direct benefit to include, but not be
limited to,the below areas,which all have a fiscal impact to the City:
1. Improve investigation and reporting claim activity to determine validity and compensability;
2. Promptly and accurately determine all benefits due for all compensable claims;
3. Guarantee timely delivery of all benefits due in accordance with payment procedures, as
established by the City;
4. Properly and adequately document and handle defense of all claims considered non-compensable;
assist and provide support to the City's legal counsel in preparation for defending the City
through all stages of the claim;
5. Efficiently maintain pertinent data on all claims;
6. File required claim information,as appropriate and/or necessary,within required timeframes;
7. Develop, implement and maintain a claim-specific plan of action, including a meaningful
resolution plan for each claim;
8. Establish,monitor and periodically adjust claim-specific reserves through the life of each claim.
It shall also be noted that the City will retain the responsibilities of overseeing insurance and surety bond
certification and confirm/approve contract and special event risk compliance. The acceptability of
insurance and bond certificates shall be determined by the Human Resources Division Manager so that
required insurances and bonds are in placed by carriers with a current A.M. Best's rating of no less than
A:VII,or the carrier is an admitted carrier to the State of California.
City Attorney Review:
Supporting Documents:
reso 2793 (PDF)
agrmt 2793 (PDF)
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Updated: 11/26/2013 by Georgeann"Gigi"Hanna Packet Pg. 199
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RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF A CONSULTANT SERVICES
3 AGREEMENT BETWEEN CARL WARREN & COMPANY AND THE CITY OF SAN
BERNARDINO FOR GENERAL LIABILITY CLAIMS ADMINISTRATION SERVICES.
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NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL
5 OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
6 SECTION 1. Pursuant to San Bernardino Municipal Code section 3.04.010(B)(3), the
7 City Manager of the City of San Bernardino is hereby authorized and directed to execute on
8 behalf of said City a Consultant Service Agreement between Carl Warren & Company and
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the City of San Bernardino for General Liability Claims Administration Services, a copy of a
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which is attached hereto marked Exhibit "A" and incorporated herein by reference as fully
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as though set forth at length.
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13 SECTION 2. The Director of Administrative Services is hereby authorized to issue a
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14 Purchase Order to Carl Warren & Company for General Liability Claims Administration
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Services, for a total annual amount not to exceed $100,700.00 with three one year N
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16 extensions. °'
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17 SECTION 3. The authorization granted hereunder shall expire and be void and of no L
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18 further effect if the agreement is not executed by both parties and returned to the Office of the
19 City Clerk within sixty (60) days following the effective date of the Resolution.
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1
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
3 : BERNARDINO AUTHORIZING THE EXECUTION OF A CONSULTANT SERVICES
AGREEMENT BETWEEN CARL WARREN & COMPANY AND THE CITY OF SAN
4 BERNARDINO FOR GENERAL LIABILITY CLAIMS ADMINISTRATION SERVICES.
S 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6 and Common Council of the City of San Bernardino at a meeting
7 thereof, held on the day of 2013, by the following vote, to wit:
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Council Members: AYES NAYS ABSTAIN ABSENT
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10 MARQUEZ
11 JENKINS
12 VALDIVIA -'
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13 SHORETT
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14 ! VACANT Cn
15 JOHNSON
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16 MULVIHILL N
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18 Georgeann Hanna, City Clerk E
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20 The foregoing Resolution is hereby approved this day of , 2013. a
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22 Patrick J. Morris, Mayor
23 City of San.Bernardino
24 Approved as to form:
Gary D. Saenz
25 City Attorney
26 By.
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CONSULTANT SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND
CARL WARREN & COMPANY
This Consultant Service Agreement (this "Agreement") is made and entered into this 2nd
day of December 2013 ("Effective Date") by and between the City of San Bernardino, a
Municipal Corporation and Charter City, (hereinafter referred to as the "City") and Carl Warren &
Company, (hereinafter referred to as the "Consultant") (sometimes jointly referred to herein as
the "Parties").
WITNESSETH:
A. WHEREAS, The CITY of San Bernardino is in need of a Consultant to provide
general liability claims administrative services , and
B. WHEREAS, it has been determined by the Human Resources Division Manager
that Consultant represents that it has that degree of specialized expertise contemplated within a
California Government Code, Section 37103, and holds all necessary licenses to practice and a.
perform the services herein contemplated; and w
C. WHEREAS, CONSULTANT is competent, experienced and able to perform said M
responsible services; and J
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D. WHEREAS, CONSULTANT will provide the most advantageous and responsible 0
services;
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NOW THEREFORE, in consideration of mutual covenants contained in this Agreement N
and the mutual benefits to be derived there from, the parties agree as follows: M
1. TERM. N
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This agreement shall be in full force and effect from the effective date through June 30,
2015, with three one year extensions, exercisable at the City's sole discretion.
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2. CONSULTANT RESPONSIBILITIES: .Ec
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Consultant is responsible for performing the work as identified in Exhibit A, contained herein. a
The Consultant commits the necessary principal personnel to the performance of such
services for the duration of this Agreement.
3. CITY RESPONSIBILITIES
The City shall provide, in a reasonable timely fashion, the Consultant with any
documentation, records, reports, statistics or other data or information pertinent to the
provision of services, which are reasonably available to the City. The City will provide a
contact person to assist in the timely resolution of any issues that may arise.
4. CONFIDENTIALITY OF REPORTS
The Consultant shall keep confidential all reports, information and data received, prepared
or assembled pursuant to performance hereunder. Such information shall not be made
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available to any person, news release, firm, corporation, or entity without prior written
consent of the City or as otherwise required by law.
5. COMPENSATION
The compensation for general liability claims administrative services for the City of San
Bernardino will not exceed the annual amount of $100,700.00. This fee is inclusive of all
professional fees and expenses.
6. NONDISCRIMINATION: MONITORING AND REPORTING WORK PERFORMANCE
In the performance of this Agreement and in the hiring and recruitment of employees,
Consultant shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national
origin, ancestry, age, mental or physical disability, genetic information, medical condition,
marital status, sexual gender or sexual orientation, or any other status protected by law.
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7. CONFLICT OF INTEREST a.
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The Consultant shall maintain a code or standard of conduct. The Consultant shall neither
solicit nor accept gratuities, favors, or anything of monetary value for work completed under
the Scope of Services. To the extent permissible by state laws, rules and regulations, the
standards adopted by the Consultant shall provide for penalties, sanctions, or other
disciplinary actions to be applied for violations of such standards by the Consultant.
8. INDEPENDENT CONTRACTOR
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The Parties intend that the relationship between them created under the Agreement is that M
of an independent contractor only. The Consultant shall perform each element of the work
set forth in the Scope of Services as an independent contractor and shall not be considered w
an employee of the City. This Agreement is by and between the Consultant and the City, E
and is not intended, and shall not be construed, to create the relationship of agent, servant,
employee, partnership, joint venture or association, between the City and the Consultant.
The City is interested only in the results obtained under the Agreement; unless otherwise
indicated and under unusual circumstances, the manner and means of performing the
services are subject to the Consultant's sole control. The Consultant shall have no right or w
authority to bind or commit the City. The Consultant shall not be entitled to any benefits, Q
including, without limitation, worker's compensation, disability insurance, vacation or sick
pay. The Consultant shall be responsible for providing at its expense, and in its name,
disability, worker's compensation or other insurance.
The Consultant assumes full and sole responsibility for, and shall therefore pay, any and all
federal and state income taxes, Social Security, estimated taxes, unemployment taxes, and
any other taxes incurred as result of the compensation set forth herein. The Consultant
agrees further to provide the City with proof of payment upon reasonable demand. The
Consultant holds the City harmless from and against any and all claims, demands, losses,
costs, fees, liabilities, taxes, penalties, damages or injuries suffered by the City (including,
but not limited to, attorney fees and court costs, whether or not litigation is commenced)
arising out of the failure of the Consultant to comply with this provision. Further, this right
indemnification shall apply to any and all claims, demands, losses, costs, fees, liabilities,
taxes, penalties, damages and injuries suffered by the City as a result of the classification of
the Consultant as independent contractor under this Agreement.
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9. RECORDS
The Consultant shall keep full and accurate records of all consulting work performed under
this Agreement. All records, content, sketches, drawings, prints, computations, charts,
reports and other documentation made in the course of the consulting work performed
hereunder, or in anticipation of the consulting work to be performed in regard to this
Agreement, shall at all times be and remain the sole property of the City and the Consultant
shall turn over to the City all copies of the Work Records within seven (7) calendar days
after a written request by City.
10. BUSINESS LICENSE/TIN
Consultant shall obtain a San Bernardino business license and provide the City with
evidence that its license has been obtained on or before receipt of payment hereunder. The
Consultant agrees to keep said license current and valid throughout the term of this
Agreement.
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Consultant shall obtain a state and federal taxpayer identification number and shall provide w
evidence to the City that this number has been obtained. =
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11. RIGHT TO OBTAIN OTHER CONTRACTURAL ARRANGEMENTS.
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The Consultant at any time has the right: (a) accept employment or other association with
any person, city or company in the United States of America or any Territory thereof, or �?
through media reasonably accessible by persons in the United States of America or any
Territory thereof, or (b) in the United States of America or any Territory thereof, or through N
media reasonably accessible by Persons in the United States of America or any Territory M
thereof, engage in activities, projects or services similar in nature or competitive with those
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of the City, limited only by the confidential information described in Section 4, or (c) become
employed by, associate with or otherwise engage any entity anywhere in the world. The E
City acknowledges that the provisions of this Section 12 are reasonable in light of the R
legitimate business needs of the City.
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12. SUCCESSOR AND ASSIGNMENT. s
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The services as contained herein are to be rendered by the Consultant whose name is as Q
appears first above written and said Consultant shall not assign nor transfer any interest in
this Agreement without the prior written consent of the City.
13. INDEMNIFICATION.
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The Consultant agrees to indemnify, defend and hold harmless the City of San Bernardino
("City"), its agents, officers and employees from and against all liability, expense, including
defense costs and legal fees, and claims for damages of any nature whatsoever, including,
but not limited to, bodily injury, death, personal injury or property damage arising out of this
Agreement from the Consultant's or the Consultant's employees or agents negligence,
errors or omissions connected with the services performed by or on behalf of the Consultant
pursuant to this Agreement. The costs, salary and expenses of the City Attorney and
members of his office in enforcing this Agreement on behalf of the CITY shall be considered
as "attorneys' fees" for the purposes of this paragraph. The Consultant agrees to obtain a
policy of insurance in the minimum amount of $1,000,000.00 (one million dollars) to cover
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any and all claims. The Consultant shall provide the City with evidence that the necessary
liability insurance has been obtained, and that the Agency has been named as an additional
insured on said policy by the Effective Date hereof.
14. LIMITATION OF LIABILITY
Any claim by the City against Consultant relating to this Agreement must be made in writing
and presented to Consultant within one (1) year after the date on which Consultant
completes performance of the services specified in this Agreement or(1) year from the date
the City discovers or reasonably should discover the existence of the claim, whichever is
greater.
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15. MODIFICATION.
I This Agreement may be supplemented, amended, or modified only by the mutual agreement
of the Parties. No supplement, amendment, or modification of this Agreement shall be
binding unless it is in writing and signed by both parties.
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16. CHOICE OF LAW.
This Agreement, and any dispute arising from the relationship between the parties to this a
Agreement, shall be governed by California law, excluding any laws that direct the J
application of another jurisdiction's laws. a
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17. COMPLIANCE WITH LAWSNENUE c4)
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The parties agree to be bound by applicable federal, state, and local laws, regulations and N
directives as they pertain to the performance of this Agreement.
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The parties hereto agree that all actions or proceedings arising in connection with this N
Agreement shall be tried and litigated either in the State courts located in the County of San E
Bernardino, State of California or the U.S. District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature. d
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18. SEVERABILILTY
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In the event that any provision herein contained is held to be invalid, void or illegal by any
court of competent jurisdiction, the same shall be deemed severable from the remainder of
this Agreement and shall in no way affect, impair, or invalidate any other provision contained
herein. If any such provision shall be deemed invalid due to its scope of breadth, such
provision shall be deemed valid to the extent of the scope of breadth permitted by law.
19. INTERPRETATION
No provision of this Agreement is to be interpreted for or against either party because that
party or that party's legal representative drafted such provision, but this Agreement is to be
construed as if it were drafted by both parties hereto.
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20.WAIVER
No waiver of a breach failure n
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granted by the provisions of this Agreement shall be effective unless it is in writing and
signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach,
failure, right, or remedy, shall be deemed a waiver of any other breach, failure, right or
remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless
the writing so specifies.
21. NOTICE
Notices herein shall be presented in person or by certified or registered United States mail,
as follows:
To the Consultant: Carl Warren & Company Q
Richard McAbee a
PO Box 1820
San Bernardino, CA 92402
To the City: City of San Bernardino
Administrative Services Department
Human Resources/Risk Division
300 North D Street r>
San Bernardino, CA 92418 N
Attn: Helen Tran, Human Resources Division Manager
Phone: (909) 384-5161
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Nothing in this paragraph shall be construed to prevent the giving of notice by personal E
service.
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22. ENTIRE AGREEMENT d
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This Agreement, with Exhibit "A", constitutes the final, complete and exclusive statement of
the terms and the agreement between the parties pertaining to the engagement of the
Consultant by the City and the entire understanding of the parties and supersedes all prior
and contemporaneous understandings or agreements n#s of the parties. No party has been
induced to enter into this Agreement by, no is any party relying on, any representation or
warranty outside those expressly set forth in this Agreement.
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CONSULTANT SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND
CARL WARREN & COMPANY
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first written above.
CITY OF SAN BERNARDINO
Dated: By:
Allen Parker, City Manager
CONSULTANT Q
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Dated: By:
Richard McAbee,
AVP/Director of Business Development
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Approved as to Form:
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By:
ary aenz, City Attorney Cl)
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Exhibit A
Scope of Work
Administer the City's Self-insurance Retention (SIR) Program and act as the City's
representative in connection with the investigation, adjustment, processing, supervision and
resolution of general liability, motor vehicle liability, and property damage claims asserted by
third parties against the City, or against parties for whom the City is alleged to be legally
responsible. Provide professional and technical support to perform risk management services to
include, but not limited to, the below areas:
a) General Liability Claims Management
b) Automobile Liability Claims Management
c) Property Claims Management
d) Risk Management Control and Safety Programs
e) SIR Claims Administration
f) Subrogation Recovery Services
g) Ongoing Risk Management Administrative Support a
Investigative Services-
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Contractor will provide complete investigative services including, but not limited to:
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a) Receipt and examination of all reports of accidents, incidents, or claims that are or may
be the subject of claims.
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b) Investigate accidents, incidents, or claims where the examination warrants such
investigation to include on-site investigation, photographs, witness interviews, determination of
losses and other such investigative services necessary to determine any City losses, but not to
include extraordinary investigative services outside the expertise of the vendor.
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C) Maintain service on a 24-hour, 7-days-per-week basis, to receive telephone reports of E
any incident or accident which may be the subject of a liability claim, and provide immediate
investigative services to the extent necessary to provide a complete investigation, w
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d) Undertake items of investigation requiring special handling for the City at the direction of E
the City Attorney or authorized representative.
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Adjustment Services- a
Contractor will provide complete adjustment services on each accident or incident which is or
may be the subject of a claim. Such services shall include:
a) Maintain a claim file on each potential or actual claim reported.
b) Process any such claim or potential claim for settlement in accordance with instructions
and policies of the City.
C) Notify the City's primary and excess carriers of all claims which exceed or may exceed
the City's self-insurance retention.
d) Act as liaison between the insurance carriers and the City on matters affecting the
adjustment of such claims.
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e) Notify the City when it is entitled to reimbursements for loss in excess of retention.
f) Obtain settlement agreements and releases upon settlement of claims or potential
claims not in litigation.
Administrative Services-
Contractor will provide the following administrative services:
a) Assist in all risk-related training at the request of the City.
b) Assist the City in preparing accident kits for City vehicles.
C) Assign a principle adjuster, satisfactory to the City, to provide liaison between the City
and the vendor.
d) Provide tabulated monthly statistical and status reports of all reported claims. Monthly
reports shall indicate the status of each open claim, the outstanding reserves for each claim, a
and details of all claim payments during the month. The status report shall be delivered to the a.
City Attorney and the Human Resources Division Manager within fifteen (45) days of the close
of each calendar month. _
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e) Periodically review and adjust reserves on all open claims. J
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f) Assist the City Attorney, as requested. r_
g) Prepare monthly claims reviews and status reports for liability review.
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h) Provide loss information for the City's annual excess liability application.
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i) Inform the City of problem areas or trends, both potential and perceived, and provide w
recommendations and/or solutions to address problem areas or trends. E
j) Assist in the development of policies and procedures relating to the Liability and
Property Claims Program. Provide copies of file correspondence and documentation as
requested.
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k) As needed, attend meetings, conferences, court appearances, and scene investigations a
at the request of the City.
Legal Support Services-
Contractor will provide the following legal support services on each claim in which a third-party
claimant has commenced or threatened to commence litigation:
a) Upon notification by the City Attorney that litigation has been filed on an open claim,
meet with special counsel and provide all information and files concerning the claim.
b) Assist the City Attorney assigned to litigation of open claims and provide such
investigative services as directed during pre-trial and trial stages.
C) Assist in answering any interrogations or requests for admissions filed by third parties.
d) At the request of the City Attorney, attend mandatory settlement conferences.
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e) At the request of the City Attorney, appear on behalf of the City in small claim actions
filed against the City on open claims.
f) As requested by the City Attorney, discuss and review investigation issues, discovery,
and case strategy with special counsel.
g) As requested, review case evaluations, correspondence and status reports forwarded by
I special counsel.
When requested, provide support to special counsel on each case to obtain the most
economical and best result for the City.
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