HomeMy WebLinkAboutCarl Warren & Co - 2014-03-17Dept. lb HR 14-003 Page 1 of 2
Meeting Date: 3/17/2014
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CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 3/17/2014
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Michele Warren, Director of Human Resources
SUBJECT: Approve and authorize execution of a Professional Services Contract with Carl
Warren & Co. to provide Third -Party Liability Claims Administration
Statement of Issue:
The City of Huntington Beach maintains a program of self-insurance for general liability pursuant to
the California Tort Claims Act. The City desires to retain the services of Carl Warren & Co. to
provide assistance in administering this program.
Financial Impact:
The contract in an amount not to exceed $285,500.00 (over three contract years or $95,000
annually) will be paid from appropriations made in Business Unit 10030502.69365 liability insurance
fund. This cost of this agreement does not result in any additional budgetary expenditure as this is
the current level of funding for FY 13/14 for this contract service.
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract
Between the City of Huntington Beach and Carl Warren & Company for Liability Claim Investigation
and Processing."
Alternative Action(s):
Do not approve the agreement between the City of Huntington Beach and Carl Warren & Co. and
direct staff to find an alternately qualified Third Party Administrator via the Request for Proposal
process.
Analysis:
Carl Warren & Co. provides claims administration services for liability claims against the City, its
officers, agents and employees. Services include, but are not limited to: Receipt, examination and
investigation of reports of accidents, incidents, claims or cases which are or may be the subject of
claims. Carl Warren & Co. also provides adjusting services, administrative services, and
appropriate legal services (coordinated with the City Attorney's office) as outlined in the contract.
The City has utilized Carl Warren & Co. for many years and has been satisfied with the quality, and
efficiency of the services provided. Since 1944, Carl Warren & Company has served many public
agencies throughout California and Orange County, including Newport Beach, Costa Mesa, Garden
Grove, La Habra, California JPIA and Orange County Sanitation District.
Current procurement of the contract was obtained via an inter -agency agreement with Long Beach
Public Transportation Company. ,
Item 16. - I i JB -414-
Dept. ID HR 14-003 Page 2 of 2
Meeting Date: 3/17/2014
Environmental Status:
N/A
Strategic Plan Goal:
Improve long-term financial sustainability
Attachment(s):
1. Professional Service Approval- Part I & Part II
2. Agreement between City of Huntington Beach and Carl Warren & Co.
3. Insurance Waiver and Certificate of Insurance
HB -415- Item 16. - 2
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RECEIVED
CITY OF HUNTINGTON BEACH
Professional Servrice Approval Form N 2013
PART I
Date: 10/31/2013 Project Manager Name: Patti Williams
Requested by Name if different from Project Manager:
Department: Human Resources
PARTS I OF THE PROFEssj6NAL SERVICES CONTRACTS APPROVAL FORM MUST BE
COMPLETED BY THE' REQUESTING DEPARTMENT AND SIGNED BY THE CITY MANAGER,
FOR APPROVAL, BEFORE PROCEEDING WITH THE SOLICITATION OR CONTRACT
PROCESS. PARTI MUST BE FILED WITH ALL APPROVED CONTRACTS.
1) Briefly provide the purpose for the agreement:
The City of Huntington Beach maintains a program of self-insurance for general liability
pursuant to tho California Tort Claims Act. The City desires to retain the services of Carl
Warren & Co. to provide assistance in administering this program.
2) Estimated cost of the services being sought: $ 285,000,00. $910011 �Hyear over a 3 year
contract.
3) Are sufficient funds available to fund this contract? X Yes Ej No
If no, Please explain:
4) Check below how the services will be obtained:
A Bid solicitation process in accordance to the MC 3.03.060 procedures will be. conducted,
MC 3.03.08(b) — Other Interagency Agreement procedure will be utilized.
MC 3,03.08 — Contract Limits of $30,000 or less exempt procedure will be util.ted.
5) Is this contract generally described on the list of professional service contracts. approved by the
City Council? If the answer to this clues n is "No," the. contract will require approval from the
s
City Council.) 13 Yes Y-N o
Fiscal
Date
0) Amount, Business Unit (8 digits) and Object Code (5 digits) where funds are budgeted
(Please note that a budget check will occur at the object code level):
e� 1(, .
10030502.99i3i� $ 285,000.00 $
$ $
$ $
lur
I 1(s)
ance's Signature
Signature
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-4Date
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Item 16. - 3 1 I -416-
CITY OF HUNTINGTON BEACH
l!"N. .
Professional Service Approval Form
RECEIVED
PART If FEB 2 014
Date* 1/29,12014 Project Manager: Patti Williams Finance Depaltm'
Requested by Name if different from Project Manaaer. ent
Department: Human Resources
PAizrs I & If OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BrH
COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART / & 11 !MUST
BE FILED WITH ALL APPROVED CONTRACTS,
1) Name of consultant: Carl Warren & Co.
2) Contract Number: HR 2011-42
(Contract numbers are obtained through Finance Administration x 5630)
3) Amount of this contract: $285,000
Account number
Business, unit, object#
10030502.69365
Contractual Dollar - Amount . ... . .....
it 1 (estimate) Year 2 {estimate} Year 3{estimate)
$95,000 $95,000 $95,000
$
$
$
$ . .... ..
$
4) is this contract less than $50,000? E] Yes U No
5) Does this contract fall within $50,000 and $100,000? 0 Yes No
6) Is this contract over $100,000? [E]Yes []No
(Note, Contracts requiring City Council Approval need to be signed by the Mayor and City Clerk. Make
sure the appropriate signature page is attached to the contract.)
7) Were formal written proposals requested from at least three available qualified consultants?
Yes No
8) Attach a list of consultants from whom proposals were requested {including a contact telephone
number.)
9), Attach Exhibit A, which describes the proposed scope of work,
10) Attach Exhibit B, ��dq-!,;qibes the payment terms of the contract
I Seuit-,&lan
Budget rnagerAr a1 Si nature
Director of Finance (or designee) Signature
P3'0fi;Sszonal serviceapproval F01,311 - part ii.10C
IZEW: December/2013
Date
Date
1B -417-
Item 16. - 4
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
CARL WARREN AND COMPANY
FOR
LIABILITY CLAIM INVESTIGATION AND PROCESSING
Table of Contents
Scopeof Services.....................................................................................................I
CityStaff Assistance................................................................................................2
Term; Time of Performance.....................................................................................2
Compensation..........................................................................................................2
ExtraWork ................ :..............................................................................................
2
Methodof Payment..................................................................................................3
Disposition of Plans, Estimates and Other Documents...........................................3
HoldHarmless.........................................................................................................3
Professional Liability Insurance.............................................................................4
Certificate of Insurance............................................................................................5
Independent Contractor............................................................................................6
Termination of Agreement.......................................................................................6
Assignment and Delegation......................................................................................6
Copyrights/Patents...................................................................................................7
City Employees and Officials..................................................................................7
:.
Notices.........................................................................................
7
Consent....................................................................................................................8
Modification.............................................................................................................8
SectionHeadings.....................................................................................................8
Interpretation of this Agreement..............................................................................8
DuplicateOriginal....................................................................................................9
Immigration...............................................................................................................9
Legal Services Subcontracting Prohibited................................................................9
Attorney's Fees..........................................................................................................10
Survival ......:....................................
10
GoverningLaw.........................................................................................................10
Signatories.................................................................................................................10
Entirety......................................................................................................................10
EffectiveDate.................................................................................
I I
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
CARL WARREN AND COMPANY
FOR
LIABILITY CLAIM INVESTIGATION AND PROCESSING
THIS AGREEMENT ("Agreement") is made and entered into by and between the City of
Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as
"CITY," and CARL WARREN AND COMPANY, a California Corporation hereinafter referred to
as "CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to provide liability claim
investigation and processing services; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of the
Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service
contracts have been complied with; and
CONSULTANT has been selected to perform these services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. SCOPE OF SERVICES
CONSULTANT shall provide all services as described in Exhibit "A," which is
attached hereto and incorporated into this Agreement by this reference. These services shall
sometimes hereinafter be referred to as the "PROJECT."
CONSULTANT hereby designates Michael Reed who shall represent it and be its
sole contact and agent in all consultations with CITY during the performance of this Agreement.
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this Agreement.
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3. TERM; TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULTANT are to
commence on �, 20 (the "Commencement Date"). This Agreement
shall automatically terminate three (3) years from the Commencement Date, unless extended or
sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no
later than Three (3) years from the Commencement Date. The time for performance of the tasks
identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be
amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT.
In the event the Commencement Date precedes the Effective Date, CONSULTANT
shall be bound by all terms and conditions as provided herein.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY agrees to
pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is
attached hereto and incorporated by reference into this Agreement, a fee, including all costs and
expenses, not to exceed two hundred eighty five thousand Dollars ($285,000).
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A" or
changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such
work only after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
CONSULTANT shall be paid pursuant to the terms of Exhibit "B."
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7. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that title to all materials prepared hereunder, including,
without limitation, all original drawings, designs, reports, both field and office notices, calculations,
computer code, language, data or programs, maps, memoranda, letters and other documents, shall
belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or
termination of this Agreement or upon PROJECT completion, whichever shall occur first. These
materials may be used by CITY as it sees fit.
8. HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless
CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against
any and all claims, damages, losses, expenses, judgments, demands and defense costs (including,
without limitation, costs and fees of litigation of every nature or liability of any kind or nature)
arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any)
negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of
its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees
except such loss or damage which was caused by the sole negligence or willful misconduct of
CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall
approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and
liability regardless of whether any insurance policies are applicable. The policy limits do not act as
limitation upon the amount of indemnification to be provided by CONSULTANT.
9. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall obtain and furnish to CITY a professional liability insurance
policy covering the work performed by
it hereunder. This
policy
shall
provide coverage for
CONSULTANT's professional liability
in an amount not
less
than
One Million Dollars
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($1,000,000.00) per occurrence and in the aggregate. The above -mentioned insurance shall not
contain a self -insured retention without the express written consent of CITY; however an insurance
policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims -made
policy shall be acceptable if the policy further provides that:
A. The policy retroactive date coincides with or precedes the initiation of the
scope of work (including subsequent policies purchased as renewals or
replacements).
B. CONSULTANT shall notify CITY of circumstances or incidents that might
give rise to future claims.
CONSULTANT will make every effort to maintain similar insurance during the
required extended period of coverage following PROJECT completion. If insurance is terminated
for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two
(2) years to report claims arising from work performed in connection with this Agreement.
If CONSULTANT fails or refuses to produce or maintain the insurance required by
this section or fails or refuses to furnish the CITY with required proof that insurance has been
procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to
forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid
for its time and materials expended prior to notification of termination. CONSULTANT waives the
right to receive compensation and agrees to indemnify the CITY for any work performed prior to
approval of insurance by the CITY.
10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT shall
furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverage as required by this Agreement; the certificate shall:
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A. provide the name and policy number of each carrier and policy;
B. state that the policy is currently in force; and
C. shall promise that such policy shall not be suspended, voided or canceled by
either party, reduced in coverage or in limits except after thirty (30) days'
prior written notice; however, ten (10) days' prior written notice in the event
of cancellation for nonpayment of premium.
CONSULTANT shall maintain the foregoing insurance coverage in force until the
work under this Agreement is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverage shall not derogate
from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this
Agreement. CITY or its representative shall at all times have the right to demand the original or a
copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the
premiums on the insurance hereinabove required.
11. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT
shall secure at its own cost and expense, and be responsible for any and all payment of all taxes,
social security, state disability insurance compensation, unemployment compensation and other
payroll deductions for CONSULTANT and its officers, agents and employees and all business
licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder.
12. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike manner.
CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and
whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall
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be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the
event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at
the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT.
13. ASSIGNMENT AND DELEGATION
This Agreement is a personal service contract and the work hereunder shall not be
assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the
prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all
approved assignees, delegates and subconsultants must satisfy the insurance requirements as set
forth in Sections 9 and 10 hereinabove.
14. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
15. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY employee in
the work performed pursuant to this Agreement. No officer or employee of CITY shall have any
financial interest in this Agreement in violation of the applicable provisions of the California
Government Code.
16. NOTICES
Any notices, certificates, or other communications hereunder shall be given either by
personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as
the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and
depositing the same in the United States Postal Service, to the addresses specified below. CITY and
CONSULTANT may designate different addresses to which subsequent notices, certificates or
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other communications will be sent by notifying the other party via personal delivery, a reputable
overnight carrier or U. S. certified mail -return receipt requested:
TO CITY:
City of Huntington Beach
ATTN: Patti Williams
2000 Main Street
Huntington Beach, CA 92648
17. CONSENT
TO CONSULTANT:
Qdy;0110Warren & Company
ATTN: Michael Reed
770 South Placentia Ave.
Placentia, CA 92870-6832
•
When CITY's consent/approval is required under this Agreement, its
consent/approval for one transaction or event shall not be deemed to be a consent/approval to any
subsequent occurrence of the same or any other transaction or event.
18. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duly executed by both parties.
19. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and descriptive phrases
at the beginning of the various sections in this Agreement are merely descriptive and are included
solely for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Agreement.
20. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provisionof this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining
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covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other whenever the
context so indicates or requires. Nothing contained herein shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
21. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the
date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed
an original instrument as against any party who has signed it.
22. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
23. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside the
scope of services contemplated hereunder. CONSULTANT understands that pursuant to
Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for
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CITY; and CITY shall not be liable for payment of any legal services expenses incurred by
CONSULTANT.
24. ATTORNEY' S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the
terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear
its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's
fees from the nonprevailing party.
25. SURVIVAL
Terms and conditions of this Agreement, which by their sense and context survive
the expiration or termination of this Agreement, shall so survive.
26. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the
State of California.
27. SIGNATORIES
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this Agreement,
and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
28. ENTIRETY
The parties acknowledge and agree that they are entering into this Agreement freely
and voluntarily following extensive arm's length negotiation, and that each has had the opportunity
to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and
agree that no representations, inducements, promises, agreements or warranties, oral or otherwise,
have been made by that party or anyone acting on that party's behalf, which are not embodied in this
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Agreement, and that that party has not executed this Agreement in reliance on any representation,
inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this
Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the
parties respecting the subject matter of this Agreement, and supersede all prior understandings and
agreements whether oral or in writing between the parties respecting the subject matter hereof.
29. EFFECTIVE DATE
This Agreement shall be effective on the date of its approval by the City Council.
This Agreement shall expire when terminated as provided herein.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their authorized officers.
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CONSULTANT,
Carl Warren & Company
COMPANY NAME
By:
`J C a >v S i e In Qx-c
print name
ITS: (circle one) Chairman/ reside /Vice President
IC
pn ame
ITS: (circle one) ecretar /Chief Financial Officer/Asst.
Secretary - Treasurer
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
Clerk *1
TED
of Human
APPROVED AS TO FORM:
Cit Attorney �� S
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EXHIBIT "A"
A. STATEMENT OF WORK: (Narrative of work to be performed)
The City of Huntington Beach maintains a program of self-insurance for general. liability
pursuant to the California Tort Claims Act. The Consultant shall assist the City in administering
such a program including the investigation, adjustment, processing, supervision and resolution of
claims asserted by third parties against the City, its officers, agents and employees.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES:
The Consult is to provide the City with the following services:
1) Investigative Services.
a) Consultant shall provide investigative services on claims against the City, its officers, agents, and
employees. Such services shall include, but is not limited to: Receipt, examination and
investigation of reports of accidents, incidents, claims or eases, which are or may be the subject of
claims. The term "investigation" shall include onsite investigation, necessary photographs, the
interviewing of witnesses, the determination of losses, and other such investigative services
necessary to determine City's liability and financial exposure, if any.
b) Conduct and/or engage, on behalf of the City, the services of independent outside investigators to
conduct all field investigation that is needed to properly handle general and automobile claims,- The
selection of outside investigators shall be made from a list approved by the City.
c) Without compromising the quality of investigation, make every attempt to conduct as much
investigation from the office as possible before conducting outside investigation and/or engaging
the services of outside investigators. In the event that outside investigation is necessary, monitor
outside investigation to minimize expense.
2) Claims Adjustment Services.
EXHIBIT A
Consultant shall provide claims adjustment services on claims against the City, its officers, agents,
and employees. Such services shall include, but is not limited to
a) Screen accident reports for legitimate potential claims and attempt to initiate rapport with
claimant before attorney involvement, while caring not to solicit unlikely claims.
b) Attempt to settle or recommend denial of claims.
c) Prepare necessary reports of claims filed to the City's primary and excess carriers.
d) Serve as liaison between carriers and the City on matters affecting the adjustment of claims,
unless otherwise advised by the City Attorney.
e) Establish and maintain a file for each potential claim reported.
3) Administrative Services.
Consultant shall provide administrative services that include, but is not limited to:
a) The assignment of qualified personnel, including at least one principal account adjustor, to
efficiently and effectively meet the scope of services listed in this section. Such assignment shall be
subject to approval of the City.
b) Preparation of a Monthly Status Report on all claims including litigated claims. Copies of the
report shall be furnished to both the City Attorney and Risk Management within twenty (20) days of
the close of each calendar month. The
Monthly Status Report shall include, but is not limited, to the following:
• The details of each claim. This includes a list of all claims segregated by policy year showing the
following: policy year, case number, claimant's name, cause of loss description, date of loss, type of
loss, status, losses paid to date, reserves, and total incurred
• The outstanding reserves of each claim and details of all claim payments during the month, and
• The cost of investigation
• Claims opened and closed during the month
EXHIBIT A
• Active liability litigation
c) The establishment and periodic review of reserves on all open claims (litigated and non -litigated).
d) Maintain a procedure to alert necessary persons of important dates with respect to the claims.
4) Legal Support Services.
Consultant shall provide legal support services on each litigated claim. Such services shall include,
but is not limited to:
a) Municipal. Superior or Federal Court Litigation. Upon notification by City that suit has been filed
on any claim, the Consultant shall:
• Contact the City Attorney and provide her with all information and files concerning said claims
• Maintain liaison with Risk Management and provide such investigation services as are required by
the City Attorney, and outside counsel, if any, during pre-trial and trial stages
• Assist the City Attorney, and outside counsel, if any, in answering any interrogatories filed by the
claimant as required by the City Attorney
b) Small Claims Litigation. Consultant shall assist Risk Management in Small Claims actions filed
against City on claims handled by Consultant by providing Risk Management with:
• Names of witnesses to be subpoenaed
o Necessary evidence
• Assistance at the trial, including appearance as a witness, if necessary
C. CITY'S DUTIES AND RESPONSIBILITIES:
1) City shall provide Consultant with copies of documents within its control without charge
and shall make City employees available for interviews at reasonable times.
2) City will furnish at no cost to Consultant copies of attorney's reports and other relevant
materials for Consultant's use in preparing case analysis or status reports tutd for reviewing "
purposes, but CITY will not incur any additional expenses in such regard.
EXHIBIT A
D. WORK PROGRAM/PROJECT SCHEDULE:
To be determined
EXHIBIT A
EXHIBIT "l3"
Payment Schedule
I . Charges for time during travel are normally not reimbursable and will only be
paid if such time is actually in performing services for CITY or as otherwise arranged with
CITY.
2. CONSULTANT shall be entitled to monthly progress payments towaxd the fixed
,fee set forth herein in accordance with the following progress and payment schedules:
Services
$55.00 per houribilling unit
Mileage
.51 per mile/or IRS rate (the greater of)
Telephone
10 % of Services
Photocopies
.30 cents per page
Transcription/Steno
$5.00 per page
File Set -,up
$27.50
Photographs
$2.25 per photo
Tapes
$2.00
Office Expense
18 % of Services
Data Processing
$35.00 per suffix (i.e. per line entry)
1099 Preparation
Included
Cassettes
Included
Index Bureau )
OFLAC }
$18.00 (per. submission)
MMSEA
MMSEA $4.85
Compass2 / MyCarlWarren $750.00 Monthly Administration Fee
(Includes data Processing charges and inputting data on claims handled by the City)
Three Year Fee (not to exceed) $285,500.00*
Based on 150 new claims per year. Claims in excess of 150 will be billed at the hourly
rate plus add-ons.
In addition, all allocable loss expenses including but not limited to legal fees, appraisal
fees, expert witness fees, report fees, photocopying service charges or similar charges
are to be pass -through expenses paid by the City.
CONSULTANT agrees to inform CITY when CONSULTANT is at the point of reaching
the maximum limit per year. CONSULTANT shall not continue with any work effort over the
amount of the maximum limit per year unless first authorized in writing by CITY.
65495
EXHIBIT B
3. Delivery of work product: A copy of every memorandum, letter, report:,
calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to
demonstrate progress toward completion of tasks. In the event CITY rejects or has comments or)
any such product, CITY shall identify specific requirements for satisfactory completion.
4. CONSUMANT shall submit to CITY an invoice for each monthly progress
payment clue. Such invoice shall:
A) Reference this Agreement;
B) Describe the services performed;
C) Show the total amount of the payment due;
D) Include a certification by a principal member of CONSULTANT's firm
that the work has been performed in accordance with the provisions of this
Agreement; and
E) For all payments include an estimate of the percentage of work completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this Agreement,
CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of
receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY
does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for
non -approval and the schedule of performance set forth in Exhibit "A" may at the option of
CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has
been brought into compliance, or until this Agreement has expired or is terminated as provided
herein.
S. Any billings for extra work or additional services authorized in advance and in
writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the
information required above, and in addition shall list the hours expended and hourly rate charged
for such time. Such invoices shall be approved. by CITY if the work performed is in accordance
with the extra work or additional services requested, and if CITY is satisfied that the statement of
hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld.
Any dispute between the parties concerning payment of such an invoice shall be treated as
separate and apart from the ongoing performance of the remainder of this Agreement.
2
65495
EXHIBIT B
.i!'!•(lY...' .• �k i' h :,t. t ?i t f: L. 'd-lY S- [G � :. S F
�. / t a �f.e r s ,�� t i� '.,t Iry ¢'� 1 �� �r %'�
...... . ....
INSURANCE AND INDEMNIFICATION WAIVER
MODIFICATION REQUEST
1 Requested by: Risk Management
2
11 Date: January 24, 2014
3. Name of co ntractor/permittee: Carl Warren & Company
4. Description of work to be performed: TPA for Liability Claims
5, Value and length of contract: approx. $95,000 a year, 3 years
6. Waiver/modification request: $25,Q00 Professional Liability deductible
7. Reason for request and why it should be granted: unable to comply with requirements
8. Identify the ris 'othe Cityj approving this waiver/modification: N/A
IS —
B1, partment, Head Signature Aaie-'
APPROVALS
Approvals must be obtainedIn the order listed on this form. Two approvals. are required
for a request to be granted. Approval from the City Administrator's Office is only required if
Risk Managem and die City Attorneys Office disagree.
k Management
1 VApproved
0 Denied
Signature Dat6
2. -1-Y, Cat Attorney's Office
fi
Wh ---,—b-4proved El Depi,6d
Signature DateJ
3. City Administrator's Office
El Approved 1:1 Denied
Signature Date
If approved, the completed waiver/modification request is to be submitted to the
City Attorney's Office along with the contract for approval. Once the contract has been approved,
this form is to be filed with the Risk Management Division of Human Resources
Waiver Form (2).doc 1/24/201.4 1:54:00 PM
A� A® CERTIFICATE OF LIABILITY INSURANCE
0507 0133°"'"Y'
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the pollcy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to .
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder In lieu of such endorsements .
PRODUCER
Marsh Risk & Ineuranoll Services
'IMI Von Kansan Avenue.&ft 1100
(949)39M
IMNYACY
NAME:
PHONE NO:
L
Uoense#0437153
Wine. CA W614
801519-CWGE&013.14
INSURERS) AFFORDING COVERAGE
NAIC 0
INSURER A: At1w5c Specialty Ins Co
27154
INSURED
Cali Warren & Company
INSURER 13, Exew ve Risk Indemnity Inc
35181
770 S. Placentia Avenue
INSU:RC:
INSURER D :
Placentia, CA 92870
INSURER E :
INSURER F :
rnveoer_es r _CRTICI1 _A*r= 101RAM90• I nor-miA11.CM&11 REVISION NUMBER.4
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
7R
TYPE OF INSURANCE
POLICY NUMBER
MPI E
LICY EXP
M�Mw
LIMITS
A
GENERAL LIABILITY
X COMMERCIAL GENERAL LIABILITY
CLAIMS -MADE X❑ OCCUR
X
712.00.84-28.0001
05MI2013
0510412014
EACH OCCURRENCE
a 11000,000
CAME TO RERTMr
$ 1.000.000
MED EXP one )
S 10,000
PERSONAL & ADV INJURY
S 1.000.000
GENERAL AGGREGATE
$ 2.000,000
GENL AGGREGATE LIMIT APPLIES PER:
POLICY PRO LOC
PRODUCTS - COMPIOP AGG
S 21000,000
$
A
AUTOMOBILE
ANY AUTO
� OOWNED N ASCHEDDULED
NON -OWNED
XHIREDAUTOS AUTOS
712-00.84.2UMi
05/0412013
05VI2014
MBI ED
11000.000
BODILY INJURY (Per person)
S
BODILY INJURY (Per accident)
S
P�RrDPERTYDAMAGE
S
COMPICOLL REDS:
$ 1,000
UMBRELLA LEAS
EXCESS LUU3
OCCUR
CLAIMS -MADE
EACH OCCURRENCE
$
AGGREGATE
S
DED RETENTION S
S
A
WORKERSCOMPENSATiON
AND EMPLOYERS' LIABILITY
ANY PROPRIETORIPARTNERIMCUTIVE Y / N
MEM� EXCLUDED? a
�(Mandatory
yyeess
DESCRI � DPERATIONS below
N I A
4 71-0001
05/04IM13
OW014
X I WCST T, DTH
E.L. EACH ACCIDENT
$ 1,000,000
E.L. DISEASE - EA EMPLOY
S 1.000,000
E.L. DISEASE • POLICY LIMIT
S 1'�•�
B
ProWslonal Uabft (E&O)
6802-6616
050112013
05/0412014
E&O Limn - Each Clahn/Agg 3,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Addldonal Remarks Schedule, B more spate Is required)
Deliffoate holder IS included aS SOMMal hsured (except workers Compensation) as respells 0reir interest
PER )4-- 3RAM .
City of Hunlhlgion Beach
20M Main Street
Hu ftton Beach, CA 92648
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
of Marsh Risk & Insurance Services
John Graef`.
0 1988-2010 ACORD CORPORATION. All Nahts
ACORD 25 (2010(05) The ACORD name and logo are registered marks of ACORD
A� ®® CERTIFICATE OF LIABILITY INSURANCE
�712013
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement A statement on this Certificate does not confer rights to the
certificate holder In lieu of such ondorsoment(s).
PRODUCER
Mamh Risk & Insurance Services
17901 Von Kerman Avemte,Suile 1100
(949) 399-WW
L)cetue C0437153
None, CA 92614
801519•CWC-E&0.13-14
CONTACT
NAME:
PHONE fAk.i
DR
1HSURER(S) AFFOROINc COVERAri
NAIL 0
INSURER A: Aflantic Speaaityins Ca
27154
INSURED
Carl Warren & Company
77D S. Placentia Avenue
INSURER B : Exoallive Risk Indemnity Inc
35181
INSURER C •
INSURER D :
Placeniia, CA 92870
INSURER E :
INSURER F :
rnvraer_rc r_GRTIRIf^ATR AN IMRRR• I nR—f1AWnSSR-11 REVISION NUMBER_4
ATHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTVATHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTRTYPE
OF INSURANCE
POLICY NUMBER
POLICY EF
MMIOD
O CY FJCP
M rOD
LIMITS
A
GENERALLIABILIT
X COMMERCIAL GENERAL LIABILITY
CLAIMS -MADE o OCCUR
X
712-00-84.28.0001
r}�
+IL:'�7v
05MI2013
} 'ro Fo
r
� i :s.a1�
05IM0014
EACH OCCURRENCE
S 1,000,000
DAMAU15L TO RENTED
ncel
$ 1,01)NDDO
MED EXP (Any WO )
S 10,000
PERSONAL A ADV INJURY
S 0W 1,,0D0
GENERAL AGGREGATE
S $000,fl00
GENLA13GREGATE
POLICY
LIMIT APPLIES PER:
PRO-
LOC
PRODUCTS -COMPWAGG
3 2,0MAC
S
A
AUTOMOBILE LIABILITY
ANY AUTO
AALLOWNED X A��ULEO
X SED
HiREOAUTOS OS
712-*M-20.0001
ff
i L
13
," ',.,.
,
0510M72014
COMand Me eml IN L LIMIT
1,000,000
BODILY INJURY (Per person)
$
BODILY INJURY (Per accident)
S
PROPERTYAMAGE
Pr
S
COMPICOLLDEDS:
S 1,00D
UMBRELLA LIAR
EXCESS LIAS
OCCUR---
CLAIMS -MACE
EACH OCCURRENCE
3
AGGREGATE
3
DED RETENTIONS
$
A
WORKERSOOMPENSATION
AND EMPLOYEWLIAB1LITY
ANY PROPRIETORIPARTNERIEXECU IVE YIN
OFFTCERIMEMSER EXCLUDED? a
(Mandatory in NH)
0doaClboundar
DRIPTION OF OPERATIONS trefar
NIA
-03.90.71.W01
W01 013
05J0412014
X VVCSTATU- OTH-
E.L. EACH ACCIDENT
S 11000,000
E.L. DISEASE - EA EMPLOYEE
^•••
3 1,000.000
E.L. DISEASE - POLICY LIMIT
$ 1,000.000
B
Professkxral UablTity (E&O)
6802-6616
05t04013
05J04l2014
E&O Limit - Each ClaimtA99 3,00Q000
DESCRIPTION OF OPERATIONSI LOCATIONS I VEHICLES (Adach ACORD 101, Additional Ramarka Schedule, Nmoro space Is required)
,cite loW is Included as addilbnal Insured (except W+akersCompensation) as respects theb inlemst
City of Huntington Beach
20DO Main Simi
HunlfnatmBeach. CA 92648
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
of Marsh Rtsk B Insurance Services
John Graef t�
reserved.
ACORD 25 (2010105) The ACORD name and logo are registered marks of ACORD
Chubb Group of Insurance Companies
15 Mountain View Road
Warren, New Jersey 07059
CHt+J��
DECLARATIONS
EXECUTIVE RISK INDEMNITY INC.
A stock Insurance company, incorporated under
the laws of Delaware, herein called the Company
Policy Number: 6802-6616
NOTICE: THIS IS A CLAIMS MADE AND REPORTED POLICY, WHICH APPLIES ONLY TO "CLAIMS" FIRST
MADE AND REPORTED IN WRITING DURING THE "POLICY PERIOD,- OR ANY EXTENDED REPORTING
PERIOD. THE LIMIT OF LIABILITY TO PAY DAMAGES OR SETTLEMENTS WILL BE REDUCED AND MAY
BE EXHAUSTED BY "DEFENSE COSTS," AND "DEFENSE COSTS" WILL BE APPLIED AGAINST THE
RETENTION AMOUNT, THE COVERAGE AFFORDED UNDER THIS POLICY DIFFERS IN SOME RESPECTS
FROM THAT AFFORDED UNDER OTHER POLICIES. READ THE ENTIRE POLICY CAREFULLY.
ITEM 1. PARENT ORGANIZATION -NAME AND ADDRESS:
CARL WARREN 8, COMPANY
770 S. PLACENTIA AVENUE
PLACENTIA, CA 92870
ITEM 2. POLICY PERIOD:
(A) Inception Date: May 4. 2013
(B) Expiration Date: May 4, 2014
at 1201 a.m. both dates at the Address In ITEM 1.
ITEM 3. LIMITS OF LIABILITY (inclusive of Defense Costs):
(A) $3,000,000.00 maximum limit of liability each Claim or Related Claims, but not to exceed
(B) $3,000,000.00 maximum aggregate limit of liability under this Policy for all Claims.
ITEM 4. RETENTION AMOUNT: $25,000.00 each Claim or Related Claims.
ITEM 5. EXTENDED REPORTING PERIOD:
(Aj Additionai Period
one year
ITEM 6. INSURED SERVICES:
Appraisal services
Claims adjusting services
Claims administration services
Consulting and training
Crisis Consulting
(B) Additional Premium
100% of Annual Premium
ITEM 7. PRIOR ACTS DATE: Non -Applicable, at 12:01 a.m. at the Address In ITEM 1.
C33192 (Ed. 7/2003) Page 1 of 14
Catalog No. 14-02-U22
CARL WARREN & COMPANY
Claims Management and Solutions
December 26, 2013
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Jim Slobojan, Fiscal Services Manager
City of Huntington Beach - Finance Department
RE: Third Party Liability Claim Contract — 2013-16
Dear Mr. Slobojan;
Please find a signed copy of the Contract for services between Carl Warren & Company and the
City of Huntington Beach. We look forward to City Council approval and return of one original
upon completion.
Should you have any questions or comments, please do not hesitate to contact the under -signed
at (800) 572-6900 x 5273.
Very Truly Yours,
Michael Reed
Carl Warren & Company
Email: mreed(cr�,carlwarren.com
AN EMPLOYEE -OWNED COMPANY
770 S. Placentia Avenue i Placentia, CA 92870
P. O. Box 25180 1 Santa Ana, CA 92799-5180
www.carlwarren.com i Tel: 714-572-5200 1 800-572-6900 1 Fax: 866-254-4423
CA License No. 2607296
Attachment # 3
CITY OF HUNTINGTON BEACH
PROFESSIONAL SERVICES LISTING
FISCAL YEAR 2013114
Human Resources
Division/Fund
Description
Amount
Legal Professional Services
$5,000
Recruitment & Retention Professional Services
$39,000
Human Resources
Employee Relations - Labor Consulting Professional Services
$22,500
Liability Insurance - Consulting/Other Professional Services
$200,000
Employee Safety - Medical Professional Services
$635,854
Total Professional Services
$902,354
Avail Balance 212,174
Amount Req Vendor
Requester Date
95,000 Carl Warren & Co (3-yr contract for 285K or 95K/yr) Patti Willia 11/19/2013
320,180 Acclamation Insurance Mgmt Patti Willia 8/23/2013
275,000 Allied Managed Care Patti Willia 8/23/2013
R55BUDGET
HB0001
Description
City of Huntington Beach
Available Budget
As of September 30, 2014
BA-YTD
AA-YTD
2/10/2014 15:31:21
Page - 1
Funds
PA-YTD Available
10030502 Liability Insurance
00100 General Fund
"
50000 EXPENDITURES
51000 PERSONAL SERVICES
51100 Salaries, Permanent
89,939.20
50,579.85
39,359.35
55000 Benefits
44,258.84
23,012.06
21,246.78
51000 PERSONAL SERVICES
134,198.04
73,591.91
60,606.13
60000 OPERATING EXPENSES
63000 Equipment and Supplies
2,275.00
1,719.00
1.00
555.00
68500 Conferences and Training
5,000.00
615.79
4,384r21_
69300 Professional Services
228,162.62
25,654.60
99,707.62
102,800.40,
72000 Claims Expense
662,000.00
113,086.12
548,913.88
73000 Insurance
2,530,165.00
4,963.00
2 0
60000 OPERATING EXPENSES
3,427,602.62
146,038.51
99,708.62
3,181,8549
80000 CAPITAL EXPENDITURES
80000 CAPITAL EXPENDITURES
50000 EXPENDITURES
3,561,800.66
219,630.42
99,708.62
3,242,46
00100 General Fund
3,561,800.66
219,630.42
99,708.62
3,242,441.62
10030502 Liability Insurance
3,561,800.66
219,630.42
99,708.62
3,2A461.62
Object
Account
City of Huntington Beach
Trial Balance Report 11/21/13
Actual Budget Encumbrance Avail Funds
9/30/14 9/30/14 9/30/14 9/30/14
10030502 - Liability Insurance
51110 - Base Salaries
15,165
89,939
74,774
51115 - Additional Pay
0
0
51100 - Salaries - Permanent
15,165
89,939
74,774
55110 - CalPERS Employer Cost
3,254
19,401
16,147
55120 - CalPERS Employee Cost
318
1,124
806
55100 - CaIPERS Payable
3,572
20,525
16,953
55150 - Retirement Supplement
882
5,268
4,386
55175 - Workers' Compensation
378
2,932
2,554
55260 - Blue Shield - HMO
1,060
(1,060)
55266 - Teamster - UHC HMO
377
(377)
55200 - Health Insurance
9,506
9,506
55200 - Health Insurance
1,437
9,506
8,069
55350 - Vision Care
45
214
169
55375 - Disability
112
409
297
55400 - Dental Insurance
179
1,396
1,218
55425 - Retiree Medical
439
2,633
2,194
55450 - Life Insurance
14
72
58
55300 - Other Insurances
788
4,723
3,935
56010 - Deferred Compensation
12
0
(12)
56020 - FICA Medicare
202
1,304
1,102
55000 - Benefits
7,271
44,259
36,988
51000 -PERSONAL SERVIC-ES
22,436
134,198
111,762
63125 - Office Supplies
0
275
1,555
(1,280)
63345 - USPS Charges
1,000
1,000
63295 - Postage Deliveries
1,000
1,000
64405 - Books/ Subscriptions
0
0
64485 - Dues and Memberships
180
1,180
0
1,000
63000 - Equipment and Supplies
180
2,455
1,555
720
68560 - Training - Other
25
4,000
0
3,975
68550 - Training
25
4,000
0
3,975
68620 - Conferences - Other
19
1,000
275
706
68635 - Conferences - Tuition
536
(536)
68610 - Conferences
555
1,000
275
170
68500 - Conferences and Training
580
5,000
275
4,145
69360 - Prof Svcs - Medical
50,000
50,000
69365 - Other Professional Services
10,870
188,692
123,163
541659
69300 - Professional Services
10,870
238,692
123,163
104,659
72525 - Liability
24,360
663,963
2,700
636,j�
72000 - Claims Expense
24,360
663,963
2,700
636,904
73010 -General Liability Insurance
13,218
1,056,558
0
1,043,340
73020 - Excess Workers' Comp Insurance
0
171,051
171,051
73030 - Aircraft/ Watercraft Insurance
9,309
110,000
0
100,691
73040 - Property Insurance
20,652
1,192,556
0
1,171,904
73000 - Insurance
43,179
2,530,165
0
2,486,986
60000 - OPERATING @XPENSES
79,169
3,440,2e75
12,7,693
3,233,413
50000-EXPENDITURES
101,606
3,574,473
127,693
3,345,175
CITY OF COSTA MESA
CALIFORNIA 92628-1200 P 0 COX 1200
FIR' 0M THE OFFICE- OF THE CITY --"LERK
August 26, 2013
Carl Warren & Company
Attn: Michael Reed
770 S. Placentia Ave.
Placentia, CA 92870
Dear Mr. Reed:
RE: Professional Services Agreement
At the regular meeting held on July 2, 2013, the City Council approved the
agreement vAth Carl Warren & Company for third party liability c.aims
l
administration. A fully executed copy of the agreement is enclosed for your
records.
Sincerely,
&r'T)t (Y�M`
Brenda. Gre
City Clerk
Enclosure (1)
77 FAIR DRIVE
PHONE: (714) 754-5225 - TOO: (7141754-5244 www-rostamesaca.gov
PROFESSIONAL SERVICES AGREEMENT
FOR CLAIMS ADMINISTRATION
THIS AGREEMENT is made and entered into this I st day of August, 2013 ("Effective
Date"), by and between the CITY OF COSTA MESA, a municipal corporation ("City") and
CARL WARREN & COMPANY, a California Corporation {"Consultant").
WITNESSETH:
A. WHEREAS, City proposes to utilize the services of Consultant as an independent
contractor to perform third party liability claims administration as more fully described in
Consultant's Proposal attached as Exhibit "A"; and
B. WHEREAS, Consultant represents that it has that degree of specialized expertise
contemplated within California Government Code, Section 37103, and holds all necessary
licenses to practice and perform the services herein contemplated; and
C. WHEREAS, City and Consultant desire to contract for the specific services described in
Exhibit "A" (the "Project") and desire to set forth their rights, duties and liabilities in connection
with the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the provisions
of California Government Code, Sections 1090-1092, in the subject matter of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
I.I. Scope of Services. Consultant shall provide the professional services described in
Consultant's Proposal, a copy of which is attached hereto as Exhibit "A" and incorporated herein
by this reference.
1.2. Professional Practices. All professional services to be provided by Consultant
pursuant to this Agreement shall be provided by personnel experienced in their respective fields
and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by
professional consultants in similar fields and circumstances in accordance with sound
professional practices. It is understood that in the exercise of every aspect of its role, within the
scope of work, consultant will be representing the City of Costa Mesa, and all of its actions,
communications, or other work, during its employment, under this contract is under the direction
of the department. Consultant also warrants that it is familiar with all laws that may affect its
performance of this Agreement and shall advise City of any changes in any laws that may affect
Consultant's performance of this Agreement.
1.3. Performance to Satisfaction of CiV. Consultant agrees to perform all the work to
the complete satisfaction of the City and within the hereinafter specified. Evaluations of the
work will be done by the City Clerk or her designee. If the quality of work is not satisfactory,
City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the
matters of concern;
(b) Require Consultant to repeat the work at no additional fee until it is
satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.
1.4. Warranty. Consultant warrants that it shall perform the services required by this
Agreement in compliance with all applicable Federal and California employment laws including,
but not limited to, those laws related to minimum hours and wages; occupational health and
safety; fair employment and employment practices; workers' compensation insurance and safety
in employment; and all other Federal, State and local laws and ordinances applicable to the
services required under this Agreement. Consultant shall indemnify and hold harmless City from
and against all claims, demands, payments, suits, actions, proceedings, and judgments of every
nature and description including attorneys' fees and costs, presented, brought, or recovered
against City for, or on account of any liability under any of the above -mentioned laws, which
may be incurred by reason of Consultant's performance under this Agreement.
1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage
in, nor permit its agents to engage in, discrimination in employment of persons because of their
race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital
status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the
Government Code.
1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into
agreements with other consultants for services similar to the services that are subject to this
Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
1.7. Delegation and Assignment. This is a personal service contract, and the duties set
forth herein shall not be delegated or assigned to any person or entity without the prior written
consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ
other personnel to perform services contemplated by this Agreement at Consultant's sole cost
and expense.
1.8. Confidentiality. Employees of Consultant in the course of their duties may have
access to financial, accounting, statistical; and personnel data of private individuals and
employees of City. Consultant covenants that all data, documents, discussion, or other
information developed or received by Consultant or provided for performance of this Agreement
are deemed confidential and shall not be disclosed by Consultant without written authorization
by City. City shall grant such authorization if disclosure is required by law. All City data shall
be returned to City upon the termination of this Agreement. Consultant's covenant under this
Section shall survive the termination of this Agreement.
2.0. COMPENSATION AND BILLING
2.1. Compensation. As compensation for the provision of services outlined in Exhibit
2 Cart Warren & Company PSA 13
"A" and in accordance with this agreement, Consultant shall be paid in accordance with the fee
schedule set forth in Exhibit "B," attached hereto and inco rated by reference. Consultant's
compensation shall in no case exceed 'r
per year for a
total of "' - �� for the full term period of three
(3) years.
2.2. Additional Services. Consultant shall not receive compensation for any services
provided outside the scope of services specified in the Consultant's Proposal the City or the
Project Manager for this Project, prior to Consultant performing the additional services, approves
such additional services in writing. It is specifically understood that oral requests and/or
approvals of such additional services or additional compensation shall be barred and are
unenforceable.
2.3. Method of Billing. Consultant will submit invoices to City supervisor for
approval on a monthly basis. Said invoice shall be in the amount of ' per month for
Consultant's services. City shall pay Consultant's invoice within forty-five (45) days from the
date City receives said invoice, unless the City determines that the work has not been completed
to the City's satisfaction in which case the City will contact Consultant first discuss any issues.
Any additional services approved and performed pursuant to this Agreement shall be designated
as "Additional Services" and shall identify the number of the authorized change order, where
applicable, on all invoices.
2.4. Records and Audits. Records of Consultant's services relating to this Agreement
shall be maintained in accordance with generally recognized accounting principles and shall be
made available to City or its Project Manager for inspection and/or audit at mutually convenient
times for a period of three (3) years from the Effective Date.
3.0. TIME OF PERFORMANCE
3.1. Commencement and Completion of Work. The professional services to be
performed pursuant to this Agreement shall commence within five (5) days from the Effective
Date of this Agreement.
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of
performance resulting from acts beyond the reasonable control of the party or parties. Such acts
shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with
laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a
party.
4.0. TERM AND TERMINATION
4.1. Term. This Agreement shall commence on the Effective Date and continue for a
period of three (3) years ending on July 31st, 2016, unless previously terminated as provided
herein or as otherwise agreed to in writing by the parties.
4.2. Notice of Termination. The City reserves and has the right and privilege of
canceling, suspending or abandoning the execution of all or any part of the work contemplated
by this Agreement, with or without cause, at any time, by providing written notice to Consultant.
3 Carl Warren & Company PSA 13
The termination of this Agreement shall be deemed effective upon receipt of the notice of
termination. In the event of such termination, Consultant shall immediately stop rendering
services under this Agreement unless directed otherwise by the City.
4.3. Compensation. In the event of termination, City shall pay Consultant for
reasonable costs incurred and professional services satisfactorily performed up to and including
the date of City's written notice of termination. Compensation for work in progress shall be
prorated as to the percentage of work completed as of the effective date of termination in
accordance with the fees set forth herein. In ascertaining the professional services actually
rendered hereunder up to the effective date of termination of this Agreement, consideration shall
be given to both completed work and work in progress, and to other documents pertaining to the
services contemplated herein whether delivered to the City or in the possession of the
Consultant.
4.4. Documents. In the event of termination of this Agreement, all documents
prepared by Consultant in its performance of this Agreement including, but not limited to,
finished or unfinished reports, claim files and related material, shall be delivered to the City
within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use
of uncompleted documents without specific written authorization from Consultant shall be at
City's sole risk and without liability or legal expense to Consultant.
5.0. INSURANCE
5.1. Minimum Scone and Limits of Insurance. Consultant shall obtain, maintain, and
keep in full force and effect during the life of this Agreement all of the following .minimum
scope of insurance coverages with an insurance company admitted to do business in California,
rated "A," Class X, or better in the most recent Best's Key Insurance Rating Guide, and
approved by City:
(a) Commercial general liability, including premises -operations,
products/completed operations, broad form property damage, blanket
contractual liability, independent contractors, personal injury or bodily
injury with a policy limit of not less than One Million Dollars
($1,000,000.00), combined single limits, per occurrence. If such insurance
contains a general aggregate limit, it shall apply separately to this
Agreement or shall be twice the required occurrence limit.
(b) Business automobile liability for owned vehicles, hired, and non -owned
vehicles, with a policy limit of not less than One Million Dollars
($1,000,000.00), combined single limits, per occurrence for bodily injury
and property damage.
(c) Workers' compensation insurance as required by the State of California.
Consultant agrees to waive, and to obtain endorsements from its workers'
compensation insurer waiving subrogation rights under its workers'
compensation insurance policy against the City, its officers, agents,
employees, and volunteers arising from work performed by Consultant for
the City and to require each of its subcontractors, if any, to do likewise
4 Carl Warren & Company PSA 13
under their workers' compensation insurance policies
A Professional errors and omissions ("E&O") liability insurance with policy
limits of not less than One Million Dollars ($1,000,000.00), combined
single limits, per occurrence and aggregate. If the policy is written as a
"claims made" policy, the retro date shall be prior to the start of the
contract work. Consultant shall obtain and maintain, said E&O liability
insurance during the life of this Agreement and for three years after
completion of the work hereunder.
5.2. Endorsements. The commercial general liability insurance policy and business
automobile liability policy shall contain or be endorsed to contain the following provisions:
(a) Additional insureds: "The City of Costa Mesa and its elected and
appointed boards, officers, officials, agents, employees, and volunteers are
additional insureds with respect to: liability arising out of activities
performed by or on behalf of the Consultant pursuant to its contract with
the City; products and completed operations of the Consultant; premises
owned, occupied or used by the Consultant; automobiles owned, leased,
hired, or borrowed by the Consultant.."
(b) Notice: "Said policy shall not terminate, be suspended, or voided, nor
shall it be cancelled, nor the coverage or limits reduced, until thirty (30)
days after written notice is given to City.
(c) Other insurance: "The Consultant's insurance coverage shall be primary
insurance as respects the City of Costa Mesa, its officers, officials, agents,
employees, and volunteers. Any other insurance maintained by the City of
Costa Mesa shall be excess and not contributing with the insurance
provided by this policy."
(d) Any failure to comply with the reporting provisions of the policies shall
not affect coverage provided to the City of Costa Mesa, its officers,
officials, agents, employees, and volunteers.
(e) The Consultant's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
5.3. Deductible or Self insured Retention. If any of such policies provide for a deductible
or self -insured retention to provide such coverage, the amount of such deductible or self -insured
retention shall be approved in advance by City. No policy of insurance issued as to which the
City is an additional insured shall contain a provision which requires that no insured except the
named insured can satisfy any such deductible or self -insured retention.
5.4. Certificates of Insurance: Consultant shall provide to City certificates of
insurance showing the insurance coveragesand required endorsements described above, in a
form and content approved by City, prior to performing any services under this Agreement.
5 Carl Warren & Company PSA 13
5.5. Non -limiting: Nothing in this Section shall be construed as limiting in any way,
the indemnification provision contained in this Agreement, or the extent to which Consultant
may be held responsible for payments of damages to persons or property.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement: This Agreement constitutes the entire Agreement between the
parties with respect to any matter referenced herein and supersedes any and all other prior
writings and oral negotiations. This Agreement may be modified only in writing, and signed by
the parties in interest at the time of such modification. The terms of this Agreement shall prevail
over any inconsistent provision in any other contract document appurtenant hereto, including
exhibits to this Agreement.
6.2. Representatives. The City Manager or his or her designee shall be the
representative of City for purposes of this Agreement and may issue all consents, approvals,
directives and agreements on behalf of the City, called for by this Agreement, except as
otherwise expressly provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who
shall be authorized to issue all consents, approvals, directives and agreements on behalf of
Consultant called for by this Agreement, except as otherwise expressly provided in this
Agreement.
6.3. Project Managers. City shall designate a Project Manager to work directly with
Consultant in the performance of this Agreement.
Consultant shall designate a Project Manager who shall represent it and be its
agent in all consultations with City during the term of this Agreement. Consultant or its Project
Manager shall attend and assist in all coordination meetings called by City.
6.4. Notices: Any notices, documents, correspondence or other communications
concerning this Agreement or the work hereunder may be provided by personal delivery,
facsimile or mail and shall be addressed as set forth below. Such communication shall be
deemed served or delivered: a) at the time of delivery if such communication is sent by personal
delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48
hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such
communication is sent through regular United States mail.
IF TO CONSULTANT:
Carl Warren and Company
770 S. Placentia Ave.
Placentia, CA 92870
Tel: 714-572-5200
Fax: 714-961-8131
Attn: Michael Reed
IF TO CITY:
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: 714-754-5228
Fax:714-754-4991
Attn: Lance Nakamoto
6 Carl warren & Company FSA 13
6.5. Drug --free Workplace Policy. Consultant shall provide a drug -free workplace by
complying with all provisions set forth in City's Council Policy 100-5, attached hereto as Exhibit
"C" and incorporated herein by reference. Consultant's failure to conform to the requirements
set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall
be cause for immediate termination of this Agreement by City.
6.6. Attorneys' Fees: In the event that litigation is brought by any party in connection
with this Agreement, the prevailing party shall be entitled to recover from the opposing party all
costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the
exercise of any of its rights or remedies hereunder or the enforcement of any of the terms,
conditions, or provisions hereof.
6.7. Governing Law: This Agreement shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to conflict of
laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto
agree that the sole and exclusive venue shall be a court of competent jurisdiction located in
Orange County, California.
6.8. Assignment: Consultant shall not voluntarily or by operation of law assign,
transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without
City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance
shall be void and shall constitute a breach of this Agreement and cause for termination of this
Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of
Consultant's obligation to perform all other obligations to be performed by Consultant hereunder
for the term of this Agreement.
6.9. Indemnification and Hold Harmless Consultant agrees to defend, indemnify, hold
free and harmless the City, its elected officials, officers, agents and employees, at Consultant's
sole expense, from and against any and all claims, actions, suits or other legal proceedings
brought against the City, its elected officials, officers, agents and employees arising out of the
performance of the Consultant, its employees, and/or authorized subcontractors, of the work
undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall
apply without any advance showing of negligence or wrongdoing by the Consultant, its
employees, and/or authorized subcontractors, but shall be required whenever any claim, action,
complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the
Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action,
complaint or suit asserts liability against the City, its elected officials, officers, agents and
employees based upon the work performed by the Consultant, its employees, and/or authorized
subcontractors under this Agreement, whether or not the Consultant, its employees, and/or
authorized subcontractors are specifically named or otherwise asserted to be liable.
Notwithstanding the foregoing, the Consultant shall not be liable for the defense or
indemnification of the City for claims, actions, complaints or suits arising out of the sole active
negligence or willful misconduct of the City. This provision shall supersede and replace all other
indemnity provisions contained either in the City's specifications or Consultant's Proposal,
which shall be of no force and effect.
6.10. Independent Contractor. Consultant is and shall be acting at all times as an
independent contractor and not as an employee of City. Consultant shall have no power to incur
7 Carl Warren & Company PSA 13
any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.
Neither City nor any of its agents shall have control over the conduct of Consultant or any of
Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time,
or in any manner, represent that it or any of its or employees are in any manner agents or
employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all
payment of Income Tax, Social Security, State Disability Insurance Compensation,
Unemployment Compensation, and other payroll deductions for Consultant and its officers,
agents, and employees, and all business licenses, if any are required, in connection with the
services to be performed hereunder. Consultant shall indemnify and hold City harmless from any
and all taxes, assessments, penalties, and interest asserted against City by reason of .the
independent contractor relationship created by this Agreement. Consultant further agrees to
indemnify and hold City harmless from any failure of Consultant to comply with the applicable
worker's compensation laws. City shall have the right to offset against the amount of any fees
due to Consultant under this Agreement any amount due to City from Consultant as a result of
Consultant's failure to promptly pay to City any reimbursement or indemnification arising under
this paragraph.
6.11. PERS Eligibility Indemnification. In the event that Consultant or any employee,
agent, or subcontractor of Consultant providing services under this Agreement claims or is
determined by a court of competent jurisdiction or the California Public Employees Retirement
System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant
shall indemnify, defend, and hold harmless City for the payment of any employee and/or
employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or
ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors
providing service under this Agreement shall not qualify for or become entitled to, and hereby
agree to waive any claims to, any compensation, benefit, or any incident of employment by City,
including but not limited to eligibility to enroll in PERS as an employee of City and entitlement
to any contribution to be paid by City for employer contribution and/or employee contributions
for PERS benefits.
6.12. Cooperation. In the event any claim or action is brought against City relating to
Consultant's performance or services rendered under this Agreement, Consultant shall render
any reasonable assistance and cooperation which City might require.
6.13. Ownership of Documents. All findings, reports, documents, information and data
including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by
Consultant or any of its subcontractors in the course of performance of this Agreement, shall be
and remain the sole property of City. Consultant agrees that any such documents or information
shall not be made available to any individual or organization without the prior consent of City.
Any use of such documents for other projects not contemplated by this Agreement, and any use
of incomplete documents, shall be at the sole risk of City and without liability or legal exposure
to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages,
losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such
documents for other projects not contemplated by this Agreement or use of incomplete
8 Carl Warren & Company PSA 13
documents furnished by Consultant. Consultant shall deliver to City any findings, reports,
documents, information, data, in any form, including but not limited to, computer tapes, discs,
files audio tapes or any other Project related items as requested by City or its authorized
representative, at no additional cost to the City.
6.14. Public Records Act Disclosure: Consultant has been advised and is aware that all
reports, documents, information and data including, but not limited to, computer tapes, discs or
files furnished or prepared by Consultant, or any of its subcontractors, and provided to City may
be subject to public disclosure as required by the California Public Records Act (California
Government Code Section 6250 et. seq.). Exceptions to public disclosure may be those
documents or information that qualify as trade secrets, as that term is defined in the California
Government Code Section 6254.7, and of which Consultant informs City of such trade secret.
The City will endeavor to maintain as confidential all information obtained by it that is
designated as a trade secret. The City shall not, in any way, be liable or responsible for the
disclosure of any trade secret including, without limitation, those records so marked if disclosure
is deemed to be required by law or by order of the Court.
6.15. Conflict of Interest. Consultant and its officers, employees, associates and
subconsultants, if any, will comply with all conflict of interest statutes of the State of California
applicable to Consultant's services under this agreement, including, but not limited to, the
Political Reform Act (Government Code Sections 81000, et se .) and Government Code Section
1090. During the term of this Agreement, Consultant and its officers, employees, associates and
subconsultants shall not, without the prior written approval of the City Representative, perform
work for another person or entity for whom Consultant is not currently performing work that
would require Consultant or one of its officers, employees, associates or subconsultants to
abstain from a decision under this Agreement pursuant to a conflict of interest statute.
6.16. Responsibility for Errors. Consultant shall be responsible for its work and results
under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation
as may be required by the City's representative, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attributable to
Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design
drawings, estimates and other Consultant professional services necessary to rectify and correct
the matter to the sole satisfaction of City and to participate in any meeting required with regard
to the correction.
6.17. Prohibited Em to ent. Consultant will not employ any regular employee of
City while this Agreement is in effect.
6.18. Order of Precedence. In the event of an inconsistency in this Agreement and any
of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent
this Agreement incorporates by reference any provision of any document, such provision shall be
deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and
conditions of this Agreement and those of any such provision or provisions so incorporated by
reference, this Agreement shall govern over the document referenced.
6.19. Costs. Each party shall bear its own costs and fees incurred in the preparation and
negotiation of this Agreement and in the performance of its obligations hereunder except as
9 Carl Warren & Company FSA 13
1
expressly provided herein.
6.20. No Third Party Beneficiary Rights. This Agreement is entered into for the sole
benefit of City and Consultant and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall have any right in, under or to this
Agreement.
6.21. Headings. Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain or to be a full or
accurate description of the content thereof and shall not in any way affect the meaning or
interpretation of this Agreement.
6.22. Construction. The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises with
respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties
and in accordance with its fair meaning. There shall be no presumption or burden of proof
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement.
6.23. Amendments. Only a writing executed by the parties hereto or their respective
successors and assigns may amend this Agreement.
6.24. Waiver. The delay or failure of either party at any time to require performance or
compliance by the other of any of its obligations or agreements shall in no way be deemed a
waiver of those rights to require such performance or compliance. No waiver of any provision of
this Agreement shall be effective unless in writing and signed by a duly authorized representative
of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy
in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in
respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
6.25. Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall not
affect the validity or enforceability of the remaining terms and provisions hereof or of the
offending provision in any other circumstance. Notwithstanding the foregoing, if the value of
this Agreement, based upon the substantial benefit of the bargain for any party, is materially
impaired, which determination made by the presiding court or arbitrator of competent
jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good
faith negotiations.
6.26. Counterparts,
This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original. All counterparts shall be construed together and shall
constitute one agreement.
6.27. Corporate Authority. The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said
parties and that by doing so the parties hereto are formally bound to the provisions of this
Agreement.
10 Carl Warren At Company PSA 13
IN WITNESS WHEREOF, the pat -ties hereto have caused this Agreernent to be executed by
and through their respective authorized officers, as of the date first above written.
CITY OF COSTA MESA,
A municipal corporaljoi7
Date:
Ma costa Mesa
Mayor
4
Date:
Department Director
CONSULTANT
'Lea -
Date:
`-Si6nawre(I
t
Name and Title
q-2-
Social Security or Taxpayer I1 Nu
r
ATTEST:
City Clerk and ex-officio Clerk
of the City 'of Costa Mesa
APPROVED O FORM:
Ay Date:
City A orn'e,v .� j
*P-aent
APPROVED AS TO CONTENT:
Project Manager
Date:
Date: to/ffi/3
12 Carl Warren & Company PSA 13
CONSULTANT'S PROPOSAL
13 Carl Warren & Company PSA 13
0,44 Y,
FEESCHEDULE
14 Carl Warren & Company PSA 13
1*14:11,1300
CITY COUNCIL POLICY 100-5
15 Carl Warren & Company P5A 13
SUBJECT POLICY EFFECTIVE PAGE
NUMBER DATE
DRUG -FREE WORKPLACE 100-5 8-8-89 1 1 of 3
BACKGRQUND
Under the Federal Drug -Free Workplace Act of 1988, passed as part of omnibus drug legislation
enacted November 18, 1988, contractors and grantees of Federal funds must certify that they will
provide drug -free workplaces. At the present time, the City of Costa Mesa, as a sub -grantee of
Federal funds under a variety of programs, is required to abide by this Act. The City Council has
expressed its support of the national effort to eradicate drug abuse through the creation of a
Substance Abuse Committee, institution of a City-wide D.A.R.E. program in all local schools
and other activities in support of a drug -free community. This policy is intended to extend that
effort to contractors and grantees of the City of Costa Mesa in the elimination of dangerous drugs
in the workplace.
PURPOSE
It is the purpose of this Policy to:
1. Clearly state the City of Costa Mesa's commitment to a drug -free society.
2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving
funds from the City of Costa Mesa share the commitment to a drug -free workplace.
POLICY
The City Manager, under direction by the City Council, shall take the necessary steps to see that
the following provisions are included in all contracts and agreements entered into by the City of
Costa Mesa involving the disbursement of funds.
1. Contractor or Sub -grantee hereby certifies that it will provide a drug -free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited in
Contractor's and/or sub -grantee's workplace, specifically the job site or location
included in this contract, and specifying the actions that will be taken against the
employees for violation of such prohibition;
16 Carl Warren & Company PSA 13
SUBJECT
POLICY
EFFECTIVE
PAGE
NUMBER
DATE
DRUG -FREE WORKPLACE
100-5
8-8-89
2 of 3
v. Lausu��aitt,tr a „LUr,-ricc t%waraness rrvgram to 1nIorm employees about:
I. The dangers of drug abuse in the workplace;
2. Contractor's and/or sub -grantee's policy of maintaining a drug -free workplace;
3. Any available drug counseling, rehabilitation and employee assistance programs;
and
4. The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
c. Making it a requirement that each employee to be engaged in the performance of the
contract be given a copy of the statement required by subparagraph A;
d. Notifying the employee in the statement required by subparagraph 1 A that, as a
condition of employment under the contract, the employee will:
1. Abide by the terms of the statement; and
2. Notify the employer of any criminal drug statute conviction for a violation
occurring in the workplace no later than five (5) days after such conviction;
e. Notifying the City of Costa Mesa within ten (10) days after receiving notice under
subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of
such conviction;
£ Taking one of the following actions within thirty (30) days of receiving notice under
subparagraph l D 2 with respect to an employee who is so convicted:
1. Taking appropriate personnel action against such an employee, up to and
including termination; or
2. Requiring such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a Federal, State, or local
health agency, law enforcement, or other appropriate agency;
17 Carl Warren & Company PSA 13
SUBJECT
POLICY
EFFECTIVE
PAGE
NUMEBER
DATE
DRUG -FREE WORKPLACE
100-5
8-8-89
3 of 3
g. Making a good faith effort to maintain a drug -free workplace through implementation
of subparagraphs I A through i F, inclusive.
2. Contractor and/or sub -grantee shall be deemed to be in violation of this Policy if the City
of Costa Mesa determines that:
a. Contractor and/or sub -grantee has made a false certification under paragraph I
above;
b. Contractor and/or sub -grantee has violated the certification by failing to carry out
the requirements of subparagraphs 1 A through I G above;
c. Such number of employees of Contractor and/or sub -grantee have been convicted
of violations of criminal drug statutes for violations occurring in the workplace as
to indicate that the contractor and/or sub -grantee has failed to make a good faith
effort to provide a drug -free workplace.
3. Should any contractor and/or sub -grantee be deemed to be in violation of this Policy
pursuant to the provisions of 2 A, B, and C, a suspension, termination or debarment
proceeding subject to applicable Federal, State, and local Iaws shall be conducted. Upon
issuance of any final decision under this section requiring debarment of a contractor
and/or sub -grantee, the contractor and/or sub -grantee shall be ineligible for award of any
contract, agreement or grant from the City of Costa Mesa for a period specified in the
decision, not to exceed five (5) years. Upon issuance of any final decision
recommending against debarment of the contractor and/or sub -grantee, the contractor
and/or sub -grantee shall be eligible for compensation as provided by law.
18 Carl Warren & Company PSA 13
a
1MJFERENCE CHECKS
This section provides a summary of the reference
checks sent out and received for each of the
proposers who submitted proposals for this RFP®
TPA for Liability Claims
References
C i)N €RAC:I VTR .. _ 0-tiyr4a ......l ,^�aY
Axtrrtin tyre
-city of Isdtfd4a
} Uiltttt ftaiq 86a is
+sari
City off ngton Beach
a fit Con► )ata
ii€all cif t¢ctt�I r learn
lttr a#f Card eti t3taf�
Cot -Vol Enter ris
A cash ea
Cot Ott
5r ark
p,u,,l
tte)ef '
val [ nfworktiidth 4hx Che.-a mi,
YAa, RstRald.rn
t lability i;3a]n� TPA
iftat.
LFah#hty Admvristnatrdil8
f4n te5rkira a-Iv
tJu response given
%iaini6 infasdlgarions, legal
They are our TPA for rr ai
XSER,
tYa�
Stork ornpensafron :
orteparliservices,manages
aglen�,y Thifyinancle
-- =
Adrtentsi t<<ori..
trait ac�oi unt rate"
chums notable to the
-
ns raartaffiers wham
provrs.en of ADA
ap f lrcal:le. prati FSe
paratransif in Lois Angeles,
recommendations on, daim
setflerrooll.at(,.
Sa
2.2iid}.it]
;7aA 63i7.fle
I^Ir response given
$20IDOO pprox annually -
$52/iv fee to excee tffi�tlh
[,iudn1.y.refef.hon,
-
erGEY"SS many fir."7e tnat.2oCt,€if#Ib
annual#y
_
domed in alaan€s each year
"M�wwI4 rdo, gala 30 -{5
a
4.0
50
at G
3,0
a 6
art tethl f Ij
fart 4rtarsf 4.0
5,0
4.0
so
3.0
3 ti
5 U
i rtt a ..:.., s 4-0
5,0
_-
50
4,.0 �
4.3
so -
4,fr
:.-
5.0
5,0
50
40
40
a.f;
faPlif T SCa
5.5
tf logo tri Yes
Wthout hesitation.
YES
Ye
Yes 9' }YavE ,It r4r' g:soi
,s rwsfars C`snd has
Yes they f .LYE been e;€ yrr aL,
work 1,1 us for loan" veaws
conhacta;t with Carl
p an _h1p9
and i ns: went out to told
Alewen str€u': igafs.
i
B Ri
agao we would Waid them
Lyle tern pt3n to do an i2F is
invo#,rec a7 the bidding and
when contraaul expires.
--
would heoe they would win.
V1-1k.r.1li=F Lw€=rR3ent kiiSiow-through1
ess Eun data
Responsweness' Attitude
Sta°t, !~xperlare, I?ndl
Knowledge. expefiente,
t fan lieve shgaaams and
Tare ondivi ,a e wfto hannres
(I them? and de€aalea reporting.
Responsiveness to;
of claims adjusters, and
dii€genresi
worling w:fh legal on
our claims ties loon
rinbi, tas. Prof essiorial€ern
wiliness to take the time to
l tigated cta'tns.
fantastic rvelyd ing etse
seems to to wall-roanafted,
of assigned ad,astd. Staff
ex lagn ad questions.
4nowedge of appropriate
mureicipal defensaa, Clear
i
r>oremeatanda#Erans,
CooLd nallon and oversight
` -
of a£[t?rill and tileadi .
T^wita? afa ones et Nor,e
idone
r4=altr. F€rite s., _
lrk[T beitrr repo tarEg
twine
We had'sornois�rosl faith
None that t can think of
-
49 es firma '.
ability
y
:
payments baid8 fttat�a I1A a
I
timely manner, tmfravat,
t-tzy have recently
..,..-
resolved.
`
iltd 41#a s dhIC fots>p4at ",l'A
_....c
F txetJ sxxsa
,
�
Stayed wlwfllli rios& ,
,......_..._
O
No
No
Yes; t9Ut only hececrsa
LiabilityClainws
agreerril..
that-. Mavinif far more Oakes.
Adt #rtlstra#Awen.
real r'V<`eaS4 full
prides lird We
srrifAwT rented a d^lterei it
ins,u,raafna system about
-
tour years flail
gts,p^w #wf hele re'rS17 Nd� response quen
NA
htrA.
file response given
si"A
Me
The Increased cost was neat
Vtlli I II
klfn fault of CorVel.
dtsyrssa feell the fIlh response g ven
NA
NIA
No response pivrkl
A
lids
Yes.
vasrasriaUhsidr
111 W201 2 TPA for Liability Claitins
References
1"RAC T OR
Keenan & Adinfoobtlos
TRIS
YorlyffinakService
Group
Will -City
Reenacts Gigot call
Mount Bar$ Jacinto
10dal Cokstilly
AAr Ntrial
CW ot socmmentc;", _T
of Education
Community College
ftemser
What type at V&VkrNftk Inswarive Brokerage
JPA administration and
Trurd Party Adri linstrat,,l
rood party Axluninistfavor
C41Y of
for into �terrvrcesaridmisted
services
for Metal Plat and %V,
.... ..... e"
Wr " I
ArwillZibi C Approximcwhity $16,100D per
PIGASO, dal WhAt YDU are 1
for it like
$48,000,00 a year
No response given
P 6 WO DO
asking you wel
a dow arriount ea
JI would you fmiAm 5.0
4,0
5 li-celptional
coilsylil on total DW?
On tiri'Miriwill
51)
50
5 Exceptional
30
nn Foriberm go- %"nnsn? so---
Vern
5,0
5.0
5 - Exceptional
140
Can 1I of Sewi &0
5.0
5,0
q - E silepboral
40
On Attitude of Parrott 1*19 ! 1I 6,0
5.0
q a
6 - Exceptional
tf twr had to dui 11yes, larnwrienfly
Yes
Absoknedy!
yes
Yes
today for ate M-0 preparing a
recornmen"llontoextend
Vie for
a
lat w e litie, StIrrosiths about very kim-Asidgeall
sillumew fki.4i-il
stiml
KnoMedgeo(Parannnel
Professionalism in handing
York has a ssitinad vi;ry
excellent reputation in 00
oompetence, service
excellent resparrisr) and
ow entity's cases and
oriparienuad weinvers that case
'industry, diligent follow-
castomer swvjce, Is there
rienniunical between
be.n an our for many
pllil"IP I" thromin on am issues,
toassist atany time. Val
their employees and ocir
years
urirolie it nation van; Adn,
diverse services offered
dapartraenl is axceplrorraf.
Pirlintill the organizat, "l
fron, Property all Lial
I (In other warel I have
workness comp, health son
j cn, ifidence if) everyone Ill
welfare sefiAl ofteir past
has been assigned to
entiallay"Willse"I
ri:'1::jjj::I handle a Marta, on the
services. *kA
reFi are Joe systakessarry, At This tarsi tsvinygood I
Now to be cleat abodt
I am happy vinh them
At thA. brie I cal think ol
They we not me tail w,
Lass rrW seen a
vartious entities Keenan
and I have worked In other
any.
responding to and closing
ecrill
c oltrads am That are
&S and
claims
'trundiall *M JPA
govemmernal institutions
services.
and Iney are exceptional;
No,
I tio, it's a Fel aVICArt pur
colt
Vear.
PWW how a-w-di UFA
No response 91von
N I 'A
-a
Arms. �W
J3 you fed tire WA
No response given
W. ll
Not Applicable
No response given
WrOirldOrt Acme waroyislifted?
Pukt4lIo,lrd Crowissids
No refirra'tsir sister
This section provides a matrix of the evaluation
committee member's individually weighted scores
for each proposer in each of the evaluation
criterion categories. The individual scores are
tallied, providing a team score for each proposer.
The proposers are then ranked from highest to
lowest overall team score.
THIRD PARTY LIABILITYCLAIMS ADMINISTRATION
Proposal Scores
3
To
Qualifications of Entity, and Key Pemonz,4_
—
2
10
250
Part Warren & Company
4
5
4
13
32�
CorVel Enterprise Company Inc.
3
2
8
200
Keenan & Associates
3
3
3
9
TRI STAR Risk Mana( pment
2
2
3
105
YorkRisk Services Group
4
3
2 5
nit; flw
Approach to pro,4 i�: eq
COS
AdminSure
3
CaqWar!"Company
4
5
4
3
454
,.&
ny CorVel Enterprise CompaInc.
3
3
2
280
Keenan & Associates
5
3
385
TR .. I I STAR'Aisk Management
3
3
3
9
YorkR!sk Services Group
4 ... . .... .......
2&)
30
AdminSure
2
0
3
_14
Carl Warren-& Company
5
4
CorVel Enterprise Cornpany Inc.
2
2
6
Keenan 9 Associates
3
4
2�5
10
2815
TRISTAR Risk"Management
5
3
12
360
YorkRisk Services Group
4
4
11
330
10
vative and/or Creative Approaches
AdininSure
31
2
i 6
611)
Carl Warren & Company
4
3
8_3
CorVel Entertrrise Company (tic.
0
0 4
2
2
26
Keenan &Associates
5
4
3
12.
120
7filafAk Risk Management
3
2
3
80
Yar "Rk Services GrouD
2
0
4
60
ArhninSure
Carl Warren & Company
CorVel Enterprise Company Inc.
Keenan &Associates
'tRISTAR Risk Mansoement
YorkRisk Services Group
155.UU
0
1.VVU1UU 0 V4,vvv� uv
1 0-0 T-39,I)MO0
"Moo 6 $ 59,47000
133TOO 2 $ -t-72,003,00
930.00 $ $ 304790,00
0 4 1 $ a 0,00
$
S 45.000�00
Carl Worren & Company
Keenan Associates
1280.00
1
$
3,25000 $ 39-000-00
The top two proposers advanced
to the next phase of evaluations
and were invited in for interviews.
1015.00
2
72000-00
IL7.1
Experienced staff with a
number of local government
clients.
INNOVATION:
Good software system. Willing
to input claims history into the
software system for historical
information,
Quals, Refs: El Segundo,
Hermosa, Manhattan, Redondo
PROACH: Acceptable
CE: Granular approach with 3
options, did not comply with
11 by using the Appendix D
W. Should have used one of
r fee options as a
:_: $50/hr or $7,000
(another approach
be telephone adjusting
Diamond Bar
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
Proposal Comments
Company
PRICE: $78k 2 years
INNOVATION: go "green"
Cloud technology
ADDITIONAL COMMENTS:
Recommended for interview.
QUALIFICATION: Current
TPA, consistent responsive
performance. 60+ years in the
biz, 195 cities, Newport Beach,
Huntington Beach, Anaheim,
GG. Backup adjuster.
PRICE: Flat $39,000 Look
good, experiences
LLIFICATIONS: Only 1
listed as a reference.
QUALIFICATIONS: Currently
City's WC TPA, adjusters
average 20 years of exp. Ref
Montebello, ASCIP, Accts
Services.
APPROACH: Acceptable
PRICE PROPOSAL:YR 1
$89k, YR 2 $92k , 76+ Claims
$895/daim
ADD'L COMMENTS: Not
recommended for interview
QUALIFICATONS: Experiece
contract - unknown location
description of implementation
plan.
APPROACH: Good
description of
Implementation plan.
INNOVATION: On-line safety
training University program -
.IFICATIONS:YR 1
YR 2 $92k , 76+ Claims
PRICE: $72K each year, fee
schedule $75/hour,
INNOVATION: P&C Bridge
software, dashboard, Keenan
Online U web based training
ADDITIONAL COMMENTS:
Acceptable proposal
RM
1LIFICATIONS: No "city"
,ences listed. Only County,
School Districts
'ROACH: Included a
sled implementation action
INNOVATION: Good softward
program and paperless
environment.
QUALIFICATIONS: Brea
QUALIFICATIONS: Acceptable
Office, 25 years experience did
quals, San Bernardino Office (-),
not include municipal/city
Orange Office if necessary. Refs:
references, limited to school
City of Sacramento, Oxnard, and
districts.
Bakersfield.
APPROACH: Principal
APPROACH: Weak proposal,
Adjuster 34 years of
weak implementation, did not
experience
follow RFP format
PRICE: $31K , .03, 015, _03 fte
ADDITIONAL COMMENTS:
breakdown, question service
Weak proposal, weak
level
INNOVATION: "Dashboard"
software, IStar paperless
ADDITIONAL COMMENTS:
Not recommended for interview
: $72,000 PRICE: Low
ZONAL COMMENTS:
pricing Proposal.
$55,000
No resumes
THIRD PARTY "LIABILITY CLAIMS ADMINISTRATION
'THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
THIRD PARTY 'LIABILITY CLAIMS ADMINISTRATION
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
............
Proposal Totals
KNP
Oft
INTERVIEW EVALUATION SCORES
This section provides a matrix of the evaluation
committee member's individually weighted scores
in each of the evaluation criterion categories for
each proposer who was selected to advance to the
Interview phase of the RFP process.
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
Interview Scores
2
3
Totals
'15
i
Carl Warren & Conwany
Keenan & Associates
aG
14
00
25
Approach and Work plan
Carl Warren & Company
Keenan & Associates
5 5
2
4
14
7
Ji
25
Qualificatio nd experience
Carl Warren & Conilmny
Keenan & Associates
2-
14
5
121-
20
Communication I Presentation
Carl Warren & Company
Keenan & Associates
5 1,
4
14
6
12.
20
16
duality of the overall Presentation
Cad Warren & Company
kiini-n—& -Aisso---c"latez
6
1 2
3
15
6
DO
PROPOSERS
nterview
Proposal
Totals
RANK
Monthly Fee
Annual Fee
Carl Warren & Company
1415.00
1280.00
2695.00
1
$
3,250.00
$ 38,953.0
Keenan & Associates
600.00
1015.00
1615.00
2
$
-
S 72,000.00
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
Interview Comments
cant local governement experience.
client & customer service focus.
software system with access to real time
ttion that can be customized to mee the City's
2 -Mike Reed with Costa Mesa Account since inception
-Cloud - Doc Imaging System, Stewardship Report
-35 yrs with Costa Mesa, 3D+ City Clients
-New Technology
-Recommend to continue with this vendor
-Great experience, long term success
-Impressive IT explanation
-35 yrs with Costa Mesa
-97% Client Retention
-98% EE Retention
-An experienced 17yr Adjuster
-Good IT presentation
-1/3 public entities
-1/3 national accounts
-1/3 insurers
a
-Not a very wen structures presentation.
-They did Not present the information well and They
interrupted each other.
-Good PowerPoint but poorly delivered.
-Claims Aduster who would be working with the City w
nervous and Not truthful about background.
-They do Not understand the difference between cities
and school districts.
IVOS, ADHOC Reports; Claims Liason;P+C Bridge
Work with attorneys, EXPEDIENT MITIGATION
Only 1 City for Liability & Property
Not Recommended
Trying to "Break In" to Municipal Liability & Property
-While the primary adjuster has public entity (non -
school) experience, at present they have no public entity
liability clients other than Palm Springs.
-Medicare Set -Aside is a Workers' Comp term typically.
Clearly Work Comp TPA (schools) wanting LC
business.
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
THIRD PANTY LIABILITY CLAIMS ADMINISTRATION
THIRD PART' LIABILITY CLAIMS ADMINISTRATION
REQUEST FOR PROPOSAL
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
RELEASED BY
HUMAN RESOURCES DIVISION
CITY OF COSTA MESA
RELEASE DATE: September 10, 2012
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
REQUEST FOR PROPOSAL (RFP)
Dear Proposers:
The City of Costa Mesa (hereinafter referred to as the "City") is requesting proposals from a
qualified firm, to establish a contract for third party liability claims administration.
The contract term shall be for three (3) years with two (2) one-year options to renew.
BACKGROUND
The City of Costa Mesa is a general law City, which operates under the council/manager form of
government with a General Fund budget of over $111 million and a total of over $132 million of
fiscal year 2012-2013.
The City of Costa Mesa, incorporated in 1953, has an estimated population of 116,479 and has a
land area of 16.8 square miles. It is located in the southern coastal area of Orange County,
California, and is bordered by the cities of Santa Ana, Newport Beach, Huntington Beach,
Fountain Valley and Irvine.
The City is a "full service City' and provides a wide range of services. These services include:
police and fire protection; animal control; emergency medical aid; building safety regulation and
inspection; street lighting; land use planning and zoning; housing and community development;
maintenance and improvement of streets and related structures; traffic safety maintenance and
improvement; and full range of recreational and cultural programs.
The City of Costa Mesa is home of the Segerstrom Center for the Arts, Orange County
Fairgrounds, South Coast Repertory Theater and the South Coast Plaza Shopping Center, which
is the single largest commercial activity center in the City. The volume of sales generated by
South Coast Plaza, secures its place as the highest volume regional shopping center in the nation.
2. SCHEDULE OF EVENTS
This request for proposal will be governed by the following schedule (All dates are subject to
change at the discretion of the City):
Release of RFP.................................................................September 10, 2012
Deadline for Written Questions .......................................September 28, 2012
Responses to Questions Posted on Web ..........................October 12, 2012
Proposals are Due............................................................October 18, 2012
Interview (if held)............................................................November 5 — 9, 2012
Approval of Contract.......................................................December 4, 2012
K
3. SCOPE OF WORK
ASSIGNED PERSONNEL: Administrator shall designate a Principal Adjuster to be assigned
to this account to act as the primary contact for the City. The City must approve the Principal
Adjuster and any other personnel assigned to perform services for the City (hereafter collectively
referred to as "assigned personnel"). If for any reason the City finds, in its sole discretion, that
the service provided by any assigned personnel is unsatisfactory, the Administrator will agree to
assign replacement personnel that must also be approved by the City. Adjusters assigned to the
account must have a minimum of five (5) years full time experience as a general liability adjuster
and a minimum of three (3) years experience with public agency liability claims adjusting.
Associate in Claims designation is preferred.
AUDIT: The Administrator will cooperate with the City and make available any and all claim
files and records available for audits. The City will have reasonable access to the necessary
portions of the Administrator's facilities, records and files for review or audit purposes.
PROGRAM ADMINISTRATION: Program administration services shall, at a minimum,
include the following:
1. Provide professional and technical staff to perform the services as agreed upon under
separate contract with the City and this Request for Proposal.
2. Represent the City in all matters related to the set-up, investigation, adjustment,
processing, negotiation and resolution of liability claims against the City.
3. Inform the City of changes or proposed changes in statutes, rules and regulations and
case law affecting the general liability program.
4. Assist in the development of policies and procedures relating to the general liability
claims program.
5. Provide information and guidance regarding the general liability program and specified
claims.
6. Inform the City of problem areas or trends, both potential and perceived, and provide
recommendations and/or solutions to address problem areas or trends.
7. Provide copies of file correspondence and documentation as requested.
8. Attend appointments, including but not limited to meetings, conferences, Court
appearances, and scene investigations at request of the City.
9. Provide 24-hour on -call service. This can be accomplished by providing the City with a
24-hour phone number, pager, beeper or telephone number for key personnel. The 24-
hour on -call service may include, but not be limited to, responding to an incident scene,
attending meetings, and conducting investigations.
10. Conduct risk management related seminars for department heads and/or the City staff at
request of the City.
11. Maintain and store all hardcopy files for five (5) years after file is closed.
CLAIMS ADMINISTRATION: Claims administration services shall, at a minimum, include
the following:
1. Create and enter new claim files into the computer within 48 hours of receipt of loss
notice from the City.
2. Maintain a hardcopy file for each claim.
3
3. Review all new claims for liability and provide an assessment of liability to the City no
later than 30 days from receipt of loss notice from the City.
4. Identify and notify possible co-defendants.
5. Tender claims to other potentially responsible parties.
6. Process all claims in accordance with the City's instructions and policies.
7. At the direction of the City, contact claimant, or their attorney, within five (5) days of
receipt of claim and maintain appropriate contact until the claim is closed.
8. Review status of claims and adequacy of reserves on all active cases at least every 90
days.
9. Provide narrative reports to the City when recommending disposition of a claim, when a
claim goes to trial, or any other significant events that have or will occur. Reports must
be clear and concise and be provided in a format as approved by the City.
10. Negotiate settlements within authority limits.
11. Obtain a signed release upon settlement of claims.
12. Review vendors for appropriateness of work and cost-effectiveness.
13. Diary all files at appropriate intervals to allow for timely completion of required activity.
14. Files will clearly and concisely document action taken on the claim.
15. Telephone calls from the City staff, claimants or claimant's attorneys shall be returned
within 24 hours. If the Administrator's appropriate staff member called is not available
to return the call within this time frame, another designated staff member shall return the
call.
16. Have translators available to assist with non-English speaking claimants.
INVESTIGATIONS: Investigative services shall, at a minimum, include the following:
1. Take statement of facts from all claimants when not represented by an attorney or with
the attorney's permission. Statements will be preserved by recording or by taking hand
written signed statements.
2. As warranted, conduct further investigation of a claim and advise the City when further
investigation is deemed warranted. Further investigation may include, but not be limited
to, on -site investigation, photographs, interviewing witnesses, verification of damage or
loss, taking measurements, obtaining maps/diagrams from the City or other sources,
obtaining medical releases, police reports, paramedics reports, marine department or
other reports as may be necessary, obtaining building permits or other records as
required.
3. If claimant is represented by an attorney, direct all communication to the claimant's
attorney regarding the investigation, negotiation, and evaluation of any claims leading to
a settlement as may be appropriate.
4. Report all Bodily Injury claims to the Index Bureau. Conduct Index Bureau searches for
repeat claimants. Conduct additional Index Bureau searches at request of the City.
5. Obtain approval from the City before engaging the services of an outside vendor for an
investigative assignment.
6. At the request of the City, investigate inverse condemnation claims.
7. Arrange, with prior the City approval, for expert services including but not limited to
professional photography, independent medical examinations, professional engineering
services, and laboratory services.
El
LITIGATION MANAGEMENT: Litigation management services shall, at a minimum,
include the following:
1. As requested by the City, the Administrator shall contact the City Attorney assigned to
handle the case and provide any and all information concerning the claim and
investigation.
2. Maintain liaison with the City Attorney's Office and any outside defense counsel and
provide such investigation as required during the entire litigation process, including but
not limited to additional investigations for pre-trial and trial that may be requested by
either the City Attorney's Office or defense counsel.
3. Assist the City Attorney and defense counsel in preparing and/or answering discovery as
requested.
4. Assist the City personnel in Small Claims Court actions filed by and against the City,
including but not limited to, obtaining witness information, evidence, assistance in
preparing the case for trial and appearance at the trial if deemed necessary by the City.
STATISTICAL REPORTS: Administrator shall, at a minimum, include the following:
1. Specified standard reports must be received within 10 days after the end of the
month/quarter, as mutually agreed upon by the parties.
2. Submit monthly reports during the term of the agreement. The monthly reports shall
indicate the status and detail of every open claim assigned to the Administrator, including
but not limited to the reserves assigned for each claim, summary of each loss by type,
department, year, litigation status, and coded as to cause.
3. The Administrator will enter into its computer any and all files handled in-house by the
City. The City will provide the Administrator with all information necessary for such
input.
4. Special reports to be provided as requested by the City.
EXCESS INSURANCE REPORTING: Administrator shall, at a minimum, provide the
following services regarding excess insurance reporting:
1 . Report to any excess insurance carrier (s) in accordance with policy provisions. The City
will provide the names and addresses of excess insurance carriers. Provide the City with
written notification that the required notice has been made to the excess carrier within ten
(10) days of the notice of claim.
2. Seek reimbursement from the excess insurance carrier for any losses in excess of the
City's self -insured retention.
PROPOSAL FORMAT GUIDELINES
Interested firms are to provide the City of Costa Mesa with a thorough proposal using the
following guidelines:
Proposal should be typed and should contain no more than 20 typed pages using a 12-point font
size, including transmittal letter and resumes of key people, but excluding Index/Table of
Contents, tables, charts, and graphic exhibits. Each proposal will adhere to the following order
5
and content of sections. Proposal should be straightforward, concise and provide "layman"
explanations of technical terms that are used. Emphasis should be concentrated on conforming
to the RFP instructions, responding to the RFP requirements, and on providing a complete and
clear description of the offer. Proposals which appear unrealistic in terms of technical
commitments, lack of technical competence or are indicative of failure to comprehend the
complexity and risk of this contract may be rejected. The following proposal sections are to be
included in the Proposer's response:
• Vendor Application Form and Cover Letter
Complete Appendix A "Request for Proposal -Vendor Application Form" and attach this
form to the cover letter. A cover letter, not to exceed three pages in length, should
summarize key elements of the proposal. An individual authorized to bind the consultant
must sign the letter. The letter must stipulate that the proposal price will be valid for a period
of at least 90 days. Indicate the address and telephone number of the contractor's office
located nearest to Costa Mesa, California and the office from which the project will be
managed.
• Background and Proiect Summary Section
The Background and Project Summary Section should describe your understanding of the
City, the Scope of Work for the project, and the objectives to be accomplished.
• Methodoloev Section
Provide a detailed description of the approach and methodology to be used to accomplish the
Scope of Work of this RFP. The Methodology Section should include:
1. An implementation plan that describes in detail (i) the methods, including controls
by which your firm manages projects of the type sought by this RFP; (ii)
methodology for soliciting and documenting views of internal and external
stakeholders; (iii) and any other project management or implementation strategies
or techniques that the respondent intends to employ in carrying out the work.
2. Detailed description of efforts your firm will undertake to achieve client
satisfaction and to satisfy the requirements of the "Scope of Work" section.
3. Detailed project schedule, identifying all tasks and deliverables to be performed,
durations for each task, and overall time of completion, including a complete
transition plan. Include your plan to deal with fluctuation in service needs and
any associated price adjustments.
4. Detailed description of specific tasks you will require from City staff. Explain
what the respective roles of City staff and your staff would be to complete the
tasks specified in the Scope of Work.
5. Proposers are encouraged to provide additional innovative and/or creative
approaches for providing the service that will maximize efficient, cost-effective
operations or increased performance capabilities. In addition, the City will
C^
consider proposals that offer alternative service delivery means and methods for
the services desired.
• Staffing
Provide a list of individual(s) who will be working on this project and indicate the functions
that each will perform and anticipated hours of service of each individual. Include a resume
for each designated individual.
Upon award and during the contract period, if the contractor chooses to assign different
personnel to the project, the Contractor must submit their names and qualifications including
information listed above to the City for approval before they begin work.
• Qualifications
The information requested in this section should describe the qualifications of the firm or
entity and key staff performing projects within the past five years that are similar in size and
scope to demonstrate competence to perform these services. Information shall include:
Names of assigned personnel dedicated to the account and their specific responsibilities with
respect to this scope of work. Please include an organizational chart that reflects the titles of
key staff and management contacts of each individual assigned to provide services under this
contract.
A summary of your firm's demonstrated capability, including length of time that your firm
has provided the services being requested in this Request for Proposal.
Provide at least three references that received similar services from your firm. The City of
Costa Mesa reserves the right to contact any of the organizations or individuals listed.
Information provided shall include:
o Client Name
o Project Description
o Project start.and end dates
o Client project manager name, telephone number, and e-mail address.
O Financial Capacity
Provide the Proposer's latest audited financial statement or other pertinent information such
as internal unaudited financial statements and financial references to allow the City to
reasonably formulate a determination about the financial capacity of the Proposer. Describe
any administrative proceedings, claims, lawsuits, or other exposures pending against the
Proposer.
• Fee Proposal
All Proposers are required to use the form in Appendix D to be submitted with their proposal.
Pricing instructions should be clearly defined to ensure fees proposed can be compared and
evaluated. Proposals shall be valid for a minimum of 90 days following submission.
7
• Disclosure
Please disclose any and all past or current business and personal relationships with any
current Costa Mesa elected official, appointed official, City employee, or family member of
any current Costa Mesa elected official, appointed official, or City employee. Any past or
current business relationship may not disqualify the firm from consideration.
• Sample Agreement
The firm selected by the City will be required to execute a Professional Services Agreement
(PSA) with the City. The form of the Agreement is enclosed as Appendix B, but may be
modified to suit the specific services and needs of the City. If a Proposer has any exceptions
or conditions to the Agreement, these must be submitted for consideration with the proposal.
Otherwise, the Proposer will be deemed to have accepted the form of Agreement. See
Section 13, below.
• Checklist of Forms to Accompany Proposal
As a convenience to Proposers, the following is a list of the forms, included as appendices to
this RFP, which should be included with proposals:
(1) Vendor Application Form
(2) Ex Parte Communications Certificate
(2) Price Proposal Form
(3) Disclosure of Government Positions
(4) Disqualifications Questionnaire
5. PROCESS FOR SUBMITTING PROPOSALS
• Content of Proposal
The proposal must be submitted using the format as indicated in the proposal format
guidelines.
• Preparation of Proposal
Each proposal shall be prepared simply and economically, avoiding the use of elaborate
promotional material beyond those sufficient to provide a complete, accurate and reliable
presentation.
• Number of Proposals
Submit one original, five (5) hard copies, plus one disk copy of your proposal in
sufficient detail to allow for thorough evaluation and comparative analysis. In the event
of a conflict between the original and any hard copy or disk copy, the original shall
control.
0
• Submission of Proposals
Complete written proposals must he submitted in sealed envelopes marked and received
no later than 12:00 p.m. (P.S.T) on October 18, 2012 to the address below. Proposals
will not he accepted after this deadline, with no exceptions. Faxed or e-mailed
proposals will not he accepted.
Costa Mesa City Clerk
Attn: Jennifer Sommers
77 Fair Drive
Costa Mesa, CA 92626
RE: RFP - Third Party Liability Claims Administration
• Inquiries
Questions about this RFP must he directed in writing, via e-mail to:
Kim Wilson, RFP Facilitator
Kimberly. Wilson2,Costamesaca.gov
The City reserves the right to amend or supplement this RFP prior to the proposal due
date. All amendments, responses to questions received, and additional information will
be posted to the Costa Mesa Procurement Registry, Costa Mesa - Official City Web Site -
Business - Bids & RFP's; Proposers should check this web page daily for new
information. The City will endeavor to answer all written questions timely received no
later than September 28, 2012. The City reserves the right not to answer all questions.
From the date that this RFP is issued until a firm is selected and the selection is
announced, firms are not allowed to communicate outside the process set forth in this
RFP with any City employee other than the contracting officer listed above regarding this
RFP. The City reserves the right to reject any proposal for violation of this provision.
No questions other than written will be accepted, and no response other than written will
be binding upon the City.
• Conditions for Proposal Acceptance
This RFP does not commit the City to award a contract or to pay any costs incurred for any
services. The City, at its sole discretion, reserves the right to accept or reject any or all
proposals received as a result of this RFP, to negotiate with any qualified source(s), or to
cancel this RFP in part or in its entirety. The City may waive any irregularity in any
proposal. All proposals will become the property of the City of Costa Mesa, USA. If any
proprietary information is contained in the proposal, it should be clearly identified.
6. EVALUATION CRITERIA
The City's evaluation and selection process will be conducted in accordance with Chapter V,
Article 2 of the City's Municipal Code (Code). In accordance with the Code, the lowest
responsible bidder will be determined based on evaluation of qualitative factors in addition to
9
price. At all times during the evaluation process, the following criteria will be used. Sub -criteria
are not necessarily listed in order of importance. Additional sub criteria that logically fit within a
particular evaluation criteria may also be considered even if not specified below.
Qualifications of Firm and Key Personnel ----- 25%
Includes ability to provide the requested scope of services, the Proposer's financial
capaCity, recent experience conducting work of similar scope, complexity, and
magnitude for other public agencies of similar size, references.
2. Approach to Providing the Requested Scope of Services ----- 35%
Includes an understanding of the RFP and of the project's scope of services, knowledge of
applicable laws and regulations related to the scope of services.
Price Proposal ----- 30%
Price Proposals will be evaluated on the basis of the Total Estimated Annual Price
submitted in Appendix D.
4. Innovative and/or creative approaches to providing the services that provide
additional efficiencies or increased performance capabilities .-----10%
7. EVALUATION OF PROPOSALS AND SELECTION PROCESS
In accordance with its Municipal Code, the City will adhere to the following procedures in
evaluating proposals. An Evaluation/Selection Committee (Committee), which may include
members of the City's staff and possibly one or more outside experts, will screen and review all
proposals according to the weighted criteria set forth above. While price is one basic factor for
award, it is not the sole consideration.
A. Responsiveness Screening
Proposals will first be screened to ensure responsiveness to the RFP. The City may reject
as non -responsive any proposal that does not include the documents required to be
submitted by this RFP. At any time during the evaluation process, the City reserves the
right to request clarifications or additional information from any or all Proposers
regarding their proposals.
B. Initial Proposal Review
The Committee will initially review and score all responsive written proposals based
upon the Evaluation Criteria set forth above. The Committee may also contact Proposer's
references. Proposals that receive the highest evaluation scores may be invited to the
next stage of the evaluation process. The City may reject any proposal in which a
Proposer's approach, qualifications, or price is not considered acceptable by the City. An
unacceptable proposal is one that would have to be substantially rewritten to make it
acceptable. The City may conclude the evaluation process at this point and recommend
award to the lowest responsible bidder. Alternatively, the City may elect to negotiate
10
directly with one or more Proposers to obtain the best result for the City prior to making a
recommendation or selection.
C. Interviews, Reference Checks, Revised Proposals, Discussions
Following the initial screening and review of proposals, the Proposers included in this
stage of the evaluation process may be invited to participate in an oral interview.
Interviews, if held, are tentatively scheduled for November 5-9, 2012 and will be
conducted at City of Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, CA 92626. This
date is subject to change. The individual(s) from Proposer's firm that will be directly
responsible for carrying out the contract, if awarded, should be present at the oral
interview. The oral interview may, but is not required to, use a written question/answer
format for the purpose of clarifying the intent of any portions of the proposal.
In addition to conducting an oral interview, the City may during this stage of the
evaluation process also contact and evaluate the Proposer's references, contact any
Proposer to clarify any response or request revised or additional information, contact any
current users of a Proposer's services, solicit information from any available source
concerning any aspect of a proposal, and seek and review any other information deemed
pertinent to the evaluation process.
Following conclusion of this stage of the evaluation process, the Committee will again
rank all Proposers according to the evaluation criteria set forth above. The Committee
may conclude the evaluation process at this point, and make a recommendation for
award, or it may request Best and Final Offers from Proposers. The City may accept the
proposal or negotiate the terms and conditions of the agreement with the highest ranked
firm, which shall be determined to be the lowest responsible bidder. The City may
recommend award without Best and Final Offers, so Proposers should include their best
proposal with their initial submission.
Recommendation for award is contingent upon the successful negotiation of final
contract terms. Negotiations shall be confidential and not subject to disclosure to
competing Proposers unless an agreement is reached. If contract negotiations cannot be
concluded successfully within a time period determined by the City, the City may
terminate negotiations and commence negotiations with the next highest scoring Proposer
or withdraw the RFP.
8. PROTEST PROCEDURES
Failure to comply with the rules set forth herein may result in rejection of the protest. Protests
based upon restrictive specifications or alleged improprieties in the proposal procedure which are
apparent or reasonably should have been discovered prior to receipt of proposals shall be filed in
writing with the RFP Facilitator at least 10 calendar days prior to the deadline for receipt of
proposals. The protest must clearly specify in writing the grounds and evidence on which the
protest is based.
Protests based upon alleged improprieties that are not apparent or which could not reasonably
have been discovered prior to submission date of the proposals, such as disputes over the staff
recommendation for contract award, shall be submitted in writing to the RFP Facilitator, within
forty-eight hours from receipt of the notice from the City advising of staff s recommendation for
11
award of contract. The protest must clearly specify in writing the grounds and evidence on
which the protest is based. The RFP Facilitator will respond to the protest in writing at least
three days prior to the meeting at which staffs recommendation to the City Council will be
considered. Should Proposer decide to appeal the response of the RFP Facilitator, and pursue its
protest at the Council meeting, it will notify the RFP Facilitator of its intention at least two days
prior to the scheduled meeting.
9. CONFIDENTIALITY
The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates public
access to government records. Therefore, unless information is exempt from disclosure by law,
the content of any request for explanation, exception, or substitution, response to this RFP,
protest, or any other written communication between the City and Proposer, shall be available to
the public. The City intends to release all public portions of the proposals following the
evaluation process at such time as a recommendation is made to the City Council.
If Proposer believes any communication contains trade secrets or other proprietary information
that the Proposer believes would cause substantial injury to the Proposer's competitive position
if disclosed, the Proposer shall request that the City withhold from disclosure the proprietary
information by marking each page containing such proprietary information as confidential.
Proposer may not designate its entire proposal as confidential nor designate its Price Proposal as
confidential.
Submission of a proposal shall indicate that, if Proposer requests that the City withhold from
disclosure information identified as confidential, and the City complies with the Proposer's
request, Proposer shall assume all responsibility for any challenges resulting from the non-
disclosure, indemnify and hold harmless the City from and against all damages (including but
not limited to attorney's fees that may be awarded to the party requesting the Proposer
information), and pay any and all costs and expenses related to the withholding of Proposer
information. Proposer shall not make a claim, sue, or maintain any legal action against the City
or its directors, officers, employees, or agents concerning the disclosure, or withholding from
disclosure, of any Proposer information. If Proposer does not request that the City withhold
from disclosure information identified as confidential, the City shall have no obligation to
withhold the information from disclosure and may release the information sought without any
liability to the City.
10. EX PARTE COMMUNICATIONS
Proposers and Proposers' representatives should not communicate with the City Council
members about this RFP. In addition, Proposers and Proposers' representatives should not
communicate outside the procedures set forth in this RFP with an officer, employee or agent of
the City, including any member of the evaluation panel, with the exception of the RFP
Facilitator, regarding this RFP until after Contract Award. Proposers and their representatives
are not prohibited, however, from making oral statements or presentations in public to one or
more representatives of the City during a public meeting.
A "Proposer" or "Proposer's representative" includes all of the Proposer's employees, officers,
directors, consultants and agents, any subcontractors or suppliers listed in the Proposer's
proposal, and any individual or entity who has been requested by the Proposer to contact the City
12
on the Proposer's behalf. Proposers shall include the Ex Parte Communications form (Appendix
C) with their proposals certifying that they have not had or directed prohibited communications
as described in this section.
11. CONFLICT OF INTEREST
The Proposer warrants and represents that it presently has no interest and agrees that it will not
acquire any interest which would present a conflict of interest under California Government
Code sections 1090 et seq., or sections 87100 et seq., during the performance of services under
any Agreement awarded. The Proposer further covenants that it will not knowingly employ any
person having such an interest in the performance of any Agreement awarded. Violation of this
provision may result in any Agreement awarded being deemed void and unenforceable.
12. DISCLOSURE OF GOVERNMENTAL POSITION
In order to analyze possible conflicts that might prevent a Proposer from acting on behalf of the
City, the City requires that all Proposers disclose in their proposals any positions that they hold
as directors, officers, or employees of any governmental entity. Additional disclosure may be
required prior to contract award or during the term of the contract. Each Proposer shall disclose
whether any owner or employee of the firm currently hold positions as elected or appointed
officials, directors, officers, or employees of a governmental entity or held such positions in the
past twelve months using the attached "Disclosure of Government Positions Form." See
Appendix F.
13. CONDITIONS TO AGREEMENT
The selected Proposer will execute an Agreement for Services with the City describing the Scope
of Services to be performed, the schedule for completion of the services, compensation, and
other pertinent provisions. The contract shall follow the sample form of Agreement provided as
Appendix B to this RFP, which may be modified by City. All Proposers are directed to
particularly review the indemnification and insurance requirements set forth in the sample
Agreement.
The terms of the agreement, including insurance requirements have been mandated by the
City and can be modified only if extraordinary circumstances exist. Submittal of a proposal
shall be deemed acceptance of all the terms set forth in this RFP and the sample Agreement for
Services unless the Proposer includes with its proposal, in writing, any conditions or exceptions
requested by the Proposer to the proposed Agreement. In accordance with the Municipal Code,
the City may consider the scope and number of conditions in evaluation proposals and
determining the lowest responsible bidder.
14. DISQUALIFICATION QUESTIONNAIRE
Proposers shall complete and submit, under penalty of perjury, a standard form of questionnaire
inquiring whether a Proposer, any officer of a proposer, or any employee of a Proposer who has
a proprietary interest in the Proposer, has ever been disqualified, removed, or otherwise
prevented from proposing on, or completing a federal, state, or local government project because
of a violation of law or safety regulation and if so, to explain the circumstances. A proposal may
be rejected on the basis of a Proposer, any officer or employee of such Proposer, having been
13
disqualified, removed, or otherwise prevented from proposing on, or completing a federal, state,
or local project because of a violation of law or a safety regulation. See Appendix E.
15. STANDARD TERMS AND CONDITIONS
Amendments
The City reserves the right to amend or supplement this RFP prior to the proposal due date. All
amendments and additional information will be posted to the Costa Mesa Procurement Registry,
Costa Mesa - Official Citv Web Site - Business - Bids & RFP's; Proposers should check this web
page daily for new information.
Cost for Preparin,2 Proposal
The cost for developing the proposal is the sole responsibility of the Proposer. All proposals
submitted become the property of the City.
Insurance Requirements
City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not
a declarations page or the policy) or proof of legal self-insurance and required endorsements on
file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar
days of award of contract, successful Proposer must furnish the City with the Certificates of
Insurance and endorsements proving coverage as specified within Appendix B.
14
THIS AREA LEFT BLANK INTENTIONALLY
15
im
I
REQUEST FOR PROPOSAL
THIRD PARTY LIABILITY CLAIMS ADMINSITRATION
VENDOR APPLICATION FORM
TYPE OF APPLICANT: ❑ NEW R CURRENT VENDOR
Legal Contractual Name of Corporation: Carl Warren & Company
Contact Person for Agreement: Michael Reed, Public Entity Service & Retention Leader
Corporate Mailing Address: PO Box 25180
City, State and Zip Code: Santa Ana, CA 92799-5180
E-Mail Address: mreed@carlwarren.com
Phone: 714-572-5273
Contact Person for Proposals Michael Reed
Fax: 866-254-4423
Title: Public Entity Service Leader E-Mail Address: mreed(a,carlwarren.com
Business Phone: 714-572-5273
Is your business: (check one)
❑ NON PROFIT CORPORATION
Is your business: (check one)
N CORPORATION
❑ INDIVIDUAL
Business Fax: 866-254-4423
M FOR PROFIT CORPORATION
❑ LIMITED LIABILITY PARTNERSHIP
❑ SOLE PROPRIETORSHIP
❑ PARTNERSHIP ❑ UNINCORPORATED ASSOCIATION
17
Names & Titles of Corporate Board Members
(Also list Names & Titles of persons with written authorization/resolution to sign contracts)
Names
Caryn Siebert (Board Member)
Tom Boylan (Board Member)
Allison Duncan
Title
President/CEO
COO
CFO
Public Entity Leader
Michael Reed Corporate Secretary
Richard McAbee
AVP/Director of Business Dev.
Federal Tax Identification Number: 95-2917562
Phone
714-572-5210
714-572-5220
714-572-5225
714-572-5273
888-858-2807 x101
City of Costa Mesa Business License Number: Applied for 9/12
(If none, you must obtain a Costa Mesa Business License upon award of contract.)
City of Costa Mesa Business License Expiration Date:
18
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19
PROFESSIONAL SERVICES AGREEMENT
CITY OF COSTA MESA
THIS AGREEMENT is made and entered into this day of , 2011 ("Effective Date"), by
and between the CITY OF COSTA MESA, a municipal corporation ("City"), and consultant, a
California corporation ("Consultant").
WITNESSETH:
A. WHEREAS, City proposes to have Consultant provide third party claims administration
services as described herein below; and
B. WHEREAS, Consultant represents that it has that degree of specialized expertise
necessary to practice and perform the services herein contemplated; and
C. WHEREAS, City and Consultant desire to contract for specific services in connection
with the project described below (the "Project") and desire to set forth their rights, duties and
liabilities in connection with the services to be performed; and
D. WHEREAS, no official or employee of City has a financial interest, within the provisions
of California Government Code, Sections 1090-1092, in the subject matter of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
1.1. Scope of Services. Consultant shall provide the professional services described in
Consultant's Proposal (the "Proposal"). A copy of said Proposal is attached hereto as Exhibit
"A" and incorporated herein by this reference.
1.2. Professional Practices. All professional services to be provided by Consultant
pursuant to this Agreement shall be provided by personnel experienced in their respective fields
and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by
professional consultants in similar fields and circumstances in accordance with sound
professional practices. It is understood that in the exercise of every aspect of its role, within the
scope of work, consultant will be representing the City, and all of its actions, communications, or
other work, during its employment, under this contract is under the direction of the City.
Consultant also warrants that it is familiar with all laws that may affect its performance of this
Agreement and shall advise City of any changes in any laws that may affect Consultant's
performance of this Agreement.
1.3. Warran1y. Consultant warrants that it shall perform the services required by this
Agreement in compliance with all applicable Federal and California employment laws including,
but not limited to, those laws related to minimum hours and wages; occupational health and
safety; fair employment and employment practices; workers' compensation insurance and safety
in employment; and all other Federal, State and local laws and ordinances applicable to the
services required under this Agreement. Consultant shall indemnify and hold harmless City from
and against all claims, demands, payments, suits, actions, proceedings, and judgments of every
20
nature and description including attorneys' fees and costs, presented, brought, or recovered
against City for, or on account of any liability under any of the above -mentioned laws, which
may be incurred by reason of Consultant's performance under this Agreement.
1.4. Non-discrimination. In performing this Agreement, Consultant shall not engage
in, nor permit its agents to engage in, discrimination in employment of persons because of their
race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital
status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the
Government Code. Violation of this provision may result in the imposition of penalties referred
to in Labor Code, Section 1735.
1.5 Non -Exclusive Agreement. Consultant acknowledges that City may enter into
agreements with other consultants for services similar to the services that are subject to this
Agreement or may have its own employees perform services similar to those services
contemplated by this Agreement.
1.6. Delegation and Assignment. This is a personal service contract, and the duties set
forth herein shall not be delegated or assigned to any person or entity without the prior written
consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ
other personnel to perform services contemplated by this Agreement at Consultant's sole cost
and expense.
2.0. COMPENSATION AND BILLING
2.1. Compensation. [TBD]
2.2. Additional Services. Consultant shall not receive compensation for any services
provided outside the scope of services specified in the Proposal unless the City or the Project
Manager for this Project, prior to Consultant performing the additional services, approves such
additional services in writing. It is specifically understood that oral requests and/or approvals of
such additional services or additional compensation shall be barred and are unenforceable.
2.3. Method of Billing. Consultant may submit invoices to City's affected supervisor
for approval on a progress basis, but no more often than two times a month. Said invoice shall
be based on the total of all Consultants' services which have been completed to City's sole
satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City
receives said invoice. Each invoice shall describe in detail, the services performed and the
associated time for completion. Any additional services approved and performed pursuant to this
Agreement shall be designated as "Additional Services" and shall identify the number of the
authorized change order, where applicable, on all invoices.
2.4. Records and Audits. Records of Consultant's services relating to this Agreement
shall be maintained in accordance with generally recognized accounting principles and shall be
made available to City or its Project Manager for inspection and/or audit at mutually convenient
times for a period of three (3) years from the date of payment for services.
3.0. TIME OF PERFORMANCE
3.1. Commencement and Completion of Work. The professional services to be
performed pursuant to this Agreement shall commence within five (5) days from the Effective
21
Date of this Agreement. Said services shall be performed in strict compliance with the Project
Schedule approved by City as set forth in Exhibit "D," attached hereto and incorporated herein
by this reference. The Project Schedule may be amended by mutual agreement of the parties.
Failure to commence work in a timely manner and/or diligently pursue work to completion may
be grounds for termination of this Agreement.
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of
performance resulting from acts beyond the reasonable control of the party or parties. Such acts
shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with
laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a
party.
4.0. TERM AND TERMINATION
4.1. Term. This Agreement shall commence on the Effective Date and continue for a
period of three years, unless previously terminated as provided herein or as otherwise agreed to
in writing by the parties. At the end of the term period, the City may determine, in its sole
discretion, to exercise an option to renew the contract for up to two periods of one (1) year each.
The City shall give notice to Consultant of its intention to exercise such option at least 30 days
prior to expiration of the base, or option, term.
4.2. Notice of Termination. The City reserves and has the right and privilege of
canceling, suspending or abandoning the execution of all or any part of the work contemplated
by this Agreement, with or without cause, at any time, by providing written notice to Consultant.
The termination of this Agreement shall be deemed effective upon receipt of the notice of
termination. In the event of such termination, Consultant shall immediately stop rendering
services under this Agreement unless directed otherwise by the City.
4.3. Compensation. In the event of termination, City shall pay Consultant for
reasonable costs incurred and professional services satisfactorily performed up to and including
the date of City's written notice of termination.
4.4 Documents. In the event of termination of this Agreement, all documents
prepared by Consultant in its performance of this Agreement including, but not limited to, claims
files, monthly and quarterly reports, investigative documents, etc., shall be delivered to the City
within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use
of uncompleted documents without specific written authorization from Consultant shall be at
City's sole risk and without liability or legal expense to Consultant.
5.0. INSURANCE
5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain and maintain
during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive general liability, including premises -operations,
products/completed operations, broad form property damage, blanket
contractual liability, independent contractors, personal injury with a policy
limit of not less than One Million Dollars ($1,000,000.00), combined
single limits, per occurrence and aggregate.
22
(b) Automobile liability for owned vehicles, hired, and non -owned vehicles,
with a policy limit of not less than One Million Dollars ($1,000,000.00),
combined single limits, per occurrence and aggregate.
(c) Workers' compensation insurance as required by the State of California.
Consultant agrees to waive, and to obtain endorsements from its workers'
compensation insurer waiving, subrogation rights under its workers'
compensation insurance policy against the City and to require each of its
subcontractors, if any, to do likewise under their workers' compensation
insurance policies.
(d) Professional errors and omissions ("E&O") liability insurance with policy
limits of not less than One Million Dollars ($1,000,000.00), combined
single limits, per occurrence and aggregate. Consultant shall obtain and
maintain, said E&O liability insurance during the life of this Agreement
and for three years after completion of the work hereunder.
5.2. Endorsements. The comprehensive general liability insurance policy shall contain
or be endorsed to contain the following provisions:
(a) Additional insureds: "The City of Costa Mesa and its elected and
appointed boards, officers, agents, and employees are additional insureds
with respect to this subject project and contract with City."
(b) Notice: "Said policy shall not terminate, nor shall it be cancelled, nor the
coverage reduced, until thirty (30) days after written notice is given to
City."
(c) Other insurance: "Any other insurance maintained by the City of Costa
Mesa shall be excess and not contributing with the insurance provided by
this policy." .
5.3 If any of such policies provide for a deductible or self -insured retention to provide
such coverage, the amount of such deductible or self -insured retention shall be approved in
advance by City. No policy of insurance issued as to which the City is an additional insured
shall contain a provision which requires that no insured except the named insured can satisfy any
such deductible or self -insured retention.
5.4. Certificates of Insurance: Consultant shall provide to City certificates of.
insurance showing the insurance coverages and required endorsements described above, in a
form and content approved by City, prior to performing any services under this Agreement.
23
5.5. Non -limiting: Nothing in this Section shall be construed as limiting in any way,
the indemnification provision contained in this Agreement, or the extent to which Consultant
may be held responsible for payments of damages to persons or property.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement: This Agreement constitutes the entire Agreement between the
parties with respect to any matter referenced herein and supersedes any and all other prior
writings and oral negotiations. This Agreement may be modified only in writing, and signed by
the parties in interest at the time of such modification. The terms of this Agreement shall prevail
over any inconsistent provision in any other contract document appurtenant hereto, including
exhibits to this Agreement.
6.2. Representatives. The City Manager or his designee shall be the representative of
City for purposes of this Agreement and may issue all consents, approvals, directives and
agreements on behalf of the City, called for by this Agreement, except as otherwise expressly
provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who shall be
authorized to issue all consents, approvals, directives and agreements on behalf of Consultant
called for by this Agreement, except as otherwise expressly provided in this Agreement.
6.3. Project Managers. City shall designate a Project Manager to work directly with
Consultant in the performance of this Agreement.
Consultant shall designate a Project Manager who shall represent it and be its agent in all
consultations with City during the term of this Agreement. Consultant or its Project Manager
shall attend and assist in all coordination meetings called by City.
6.4. Notices: Any notices, documents, correspondence or other communications
concerning this Agreement or the work hereunder may be provided by personal delivery,
facsimile or mail and shall be addressed as set forth below. Such communication shall be
deemed served or delivered: a) at the time of delivery if such, communication is sent by personal
delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48
hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such
communication is sent through regular United States mail.
IF TO CONSULTANT:
Consultant
12345 Jefferson Rd.
Costa Mesa, CA 92626
Tel: 555-555-5555
Fax: 555-555-5555
Attn:
M
IF TO CITY:
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Tel: 714-754-5156
Fax:714-754-5330
Attn: Risk Management
6.5. Drug -free Workplace Policy. Consultant shall provide a drug -free workplace by
complying with all provisions set forth in City's Council Policy 100-5, attached hereto as Exhibit
"B" and incorporated herein by reference. Consultant's failure to conform to the requirements
set forth in Council Policy 100-5 shall constitute a material breach of this Agreement and shall
be cause for immediate termination of this Agreement by City.
6.6. Attorneys' Fees: In the event that litigation is brought by any party in connection
with this Agreement, the prevailing party shall be entitled to recover from the opposing party all
costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the
exercise of any of its rights or remedies hereunder or the enforcement of any ofthe terms,
conditions, or provisions hereof.
6.7. Governing Law: This Agreement shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to conflict of
laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto
agree that the sole and exclusive venue shall be a court of competent jurisdiction located in
Orange County, California.
6.8. Assignment: Consultant shall not voluntarily or by operation of law assign,
transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without
City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance
shall be void and shall constitute a breach of this Agreement and cause for termination of this
Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of
Consultant's obligation to perform all other obligations to be performed by Consultant hereunder
for the term of this Agreement.
6.9. Indemnification and Hold Harmless: To the fullest extent permitted by law, the
Consultant assumes liability for and shall save and protect, hold harmless, indemnify, and defend
the City and its elected and appointed officials, officers, and employees (all the foregoing,
hereinafter collectively, "Indemnitees") from and against all claims, suits, demands, damages,
losses, expenses, and liabilities of any kind whatsoever (all the foregoing, hereinafter collectively
"Claims") including, without limitation, attorneys' fees, arising out of, resulting from, relating to,
or claimed to have arisen out of, resulted from or related to the engagement of Consultant or the
performance of this Agreement by the Consultant (including its subcontractors and suppliers).
It is expressly intended by the parties that Consultant's indemnity and defense obligations shall
apply, and Indemnitees shall be fully indemnified without offset, deduction or contribution,
regardless of any negligence or other fault of Indemnitees, or any of them, and whether or not
such Indemnitee negligence or other fault caused or contributed to the arising of the Claims.
"Claims" as used in this section shall include, without limitation, those for personal injuries,
wrongful death, mental or emotional distress, loss of consortium, damage to or loss of use of
real, personal or intangible property of any kind, loss of income, loss of earning capacity, and
business, financial, commercial or pecuniary losses of any kind whatsoever, and attorneys fees,
and costs and expenses of any kind whatsoever.
Consultant's indemnity and defense obligations shall cover the acts or omissions of any of
Consultant's subcontractors, and suppliers, and the employees of any of the foregoing.
25
The Consultant's indemnity and defense obligation under this Section includes, without
limitation, any claims, suits, demands, damages, losses, expenses, and liabilities arising from
allegations of violations of any federal, State, or local law or regulation, and from allegations of
violations of Consultant's or its subcontractor's personnel practices or from any allegation of an
injury to an employee of the Consultant or subcontractor performing work or labor necessary to
carry out the provisions of this Contract.
The indemnification obligations in this Section shall not be construed to negate, abridge or
otherwise reduce any other obligation of indemnity the Consultant may have with respect to the
City which may otherwise exist. If any judgment is rendered against the City or any of the other
individuals enumerated above in any such action, the Consultant shall, at its expense, satisfy and
discharge the same. This indemnification shall survive termination or expiration of this
Agreement.
6.10. Independent Contractor: Consultant is and shall be acting at all times as an
independent contractor and not as an employee of City. Consultant shall secure, at his expense,
and be responsible for any and all payment of Income Tax, Social Security, State Disability
Insurance Compensation, Unemployment Compensation, and other payroll deductions for
Consultant and its officers, agents, and employees, and all business licenses, if any are required,
in connection with the services to be performed hereunder.
6.11. PERS Eligibility Indemnification: In the event that Consultant or any employee,
agent, or subcontractor of Consultant providing services under this Agreement claims or is
determined by a court of competent jurisdiction or the California Public Employees Retirement
System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant
shall indemnify, defend, and hold harmless City for the payment of any employee and/or
employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to
the contrary, Consultant and any of its employees, agents, and subcontractors providing service
under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any
claims to, any compensation, benefit, or any incident of employment by City, including but not
limited to eligibility to enroll in PERS as an employee of City and entitlement to any
contribution to be paid by City for employer contribution and/or employee contributions for
PERS benefits.
6.12. Ownership of Documents: All findings, reports, documents, information and data
including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by
Consultant or any of its subcontractors in the course of performance of this Agreement, shall be
and remain the sole property of City. Consultant agrees that any such documents or information
shall not be made available to any individual or organization without the prior consent of City.
Any use of such documents for other projects not contemplated by this Agreement, and any use
of incomplete documents, shall be at the sole risk of City and without liability or legal exposure
to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages,
losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such
documents for other projects not contemplated by this Agreement or use of incomplete
documents furnished by Consultant. Consultant shall deliver to City any findings, reports,
documents, information, data, in any form, including but not limited to, computer tapes, discs,
26
files audio tapes or any other Project related items as requested by City or its authorized
representative, at no additional cost to the City.
6.13. Confidentiality: Any City materials to which the Consultant has access,
information that reasonably might be construed as private or containing personal identifiable
information, or materials prepared by the Consultant during the course of this Agreement
(collectively referred to as "confidential information") shall be held in confidence by the
Consultant, who shall exercise all reasonable precautions to prevent the disclosure of
confidential information to anyone except the officers, employees and agents of the Consultant
as necessary to accomplish the rendition of services set forth in this Agreement. Consultant shall
not release any reports, information, private or promotional information or materials, whether
deemed confidential or not, to any third party without the approval of the City.
6.14.. Responsibility for Errors. Consultant shall be responsible for its work and results
under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation
as may be required by the City's representative, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attributable to
Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design
drawings, estimates and other Consultant professional services necessary to rectify and correct
the matter to the sole satisfaction of City and to participate in any meeting required with regard
to the correction.
6.15. Prohibited Employment: Consultant will not employ any regular employee of
City while this Agreement is in effect.
6.16. Order of Precedence: In the event of an inconsistency in this Agreement and any
of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent
this Agreement incorporates by reference any provision of the Proposal, such provision shall be
deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and
conditions of this Agreement and those of any such provision or provisions so incorporated by
reference, this Agreement shall govern over the Proposal.
6.17. Costs: Each party shall bear its own costs and fees incurred in the preparation and
negotiation of this Agreement and in the performance of its obligations hereunder except as
expressly provided herein.
6.18. No Third Party Beneficiary Rights: This Agreement is entered into for the sole
benefit of City and Consultant and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall have any right in, under or to this
Agreement.
6.19. Headings: Paragraphs and subparagraph headings contained in this Agreement
are included solely for convenience and are not intended to modify, explain or to be a full or
accurate description of the content thereof and shall not in any way affect the meaning or
interpretation of this Agreement.
6.20. Construction: The parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises with
respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties
and in accordance with its fair meaning. There shall be no presumption or burden of proof
27
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement.
6.21. Amendments: Only a writing executed by the parties hereto or their respective
successors and assigns may amend this Agreement.
6.22. Waiver: The delay or failure of either party at any time to require performance or
compliance by the other of any of its obligations or agreements shall in no way be deemed a
waiver of those rights to require such performance or compliance. No waiver of any provision of
this Agreement shall be effective unless in writing and signed by a duly authorized representative
of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy
in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in
respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
6.23. Severability: If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall not
affect the validity or enforceability of the remaining terms and provisions hereof or of the
offending provision in any other circumstance. Notwithstanding the foregoing, if the value of
this Agreement, based upon the substantial benefit of the bargain for any party is materially
impaired, which determination as made by the presiding court or arbitrator of competent
jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good
faith negotiations.
6.24. Counterparts: This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original. All counterparts shall be construed together and shall
constitute one agreement.
6.25. Corporate Authority: The persons executing this Agreement on behalf of the
parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said
parties and that by doing so, the parties hereto are formally bound to the provisions of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their respective authorized officers, as of the date first above written.
CITY OF COSTA MESA,
A municipal corporation
City Manager of Costa Mesa
28
Date:
CONSULTANT
Date:
Signature
Name and Title
Social Security or Taxpayer ID Number
APPROVED AS TO FORM:
Date:
City Attorney
APPROVED AS TO INSURANCE:
Date:
Risk Management
APPROVED AS TO CONTENT:
Project Manager
29
Date:
EXHIBIT A
CONSULTANT'S PROPOSAL
ce
EXHIBIT B
CITY COUNCIL POLICY 100-5
SUBJECT POLICY EFFECTIVE PAGE
NUMBER DATE
DRUG -FREE WORKPLACE 1 100-5 1 8-8-89 1 1 of 3
BACKGROUND
Under the Federal Drug -Free Workplace Act of 1988, passed as part of omnibus drug legislation enacted
November 18, 1988, contractors and grantees of Federal funds must certify that they will provide drug -
free workplaces. At the present time, the City of Costa Mesa, as a sub -grantee of Federal funds under a
variety of programs, is required to abide by this Act. The City Council has expressed its support of the
national effort to eradicate drug abuse through the creation of a Substance Abuse Committee, institution of
a City-wide D.A.R.E. program in all local schools and other activities in support of a drug -free
community. This policy is intended to extend that effort to contractors and grantees of the City of Costa
Mesa in the elimination of dangerous drugs in the workplace.
PTTRPnRF.
It is the purpose of this Policy to:
1. Clearly state the City of Costa Mesa's commitment to a drug -free society.
2. Set forth guidelines to ensure that public, private, and nonprofit organizations receiving funds
from the City of Costa Mesa share the commitment to a drug -free workplace.
POLICY
The City Manager, under direction by the City Council, shall take the necessary steps to see that the
following provisions are included in all contracts and agreements entered into by the City of Costa
Mesa involving the disbursement of funds.
1. Contractor or Sub -grantee hereby certifies that it will provide a drug -free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in Contractor's
and/or sub -grantee's workplace, specifically the job site or location included in this
contract, and specifying the actions that will be taken against the employees for
violation of such prohibition;
b. Establishing a Drug -Free Awareness Program to inform employees about:
1. The dangers of drug abuse in the workplace;
31
SUBJECT
POLICY
EFFECTIVE
PAGE
NUMBER
DATE
DRUG -FREE WORKPLACE
100-5
8-8-89
2 of 3
2. Contractor's and/or sub -grantee's policy of maintaining a drug -free
workplace;
3. Any available drug counseling, rehabilitation and employee assistance
programs; and
4. The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;
c. Making it a requirement that each employee to be engaged in the performance of the
contract be given a copy of the statement required by subparagraph A;
d. Notifying the employee in the statement required by subparagraph 1 A that, as a
condition of employment under the contract, the employee will:
l . Abide by the terms of the statement; and
2. Notify the employer of any criminal drug statute conviction for a
violation occurring in the workplace no later than five (5) days after
such conviction;
e. Notifying the City of Costa Mesa within ten (10) days after receiving notice under
subparagraph 1 D 2 from an employee or otherwise receiving the actual notice of such
conviction;
f. Taking one of the following actions within thirty (30) days of receiving notice under
subparagraph 1 D 2 with respect to an employee who is so convicted:
1. Taking appropriate personnel action against such an employee, up to and
including termination; or
2. Requiring such employee to participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a
Federal, State, or local health agency, law enforcement, or other
appropriate agency;
3. Making a good faith effort to maintain a drug -free workplace through
implementation of subparagraphs 1 A through 1 F, inclusive.
32
SUBJECT
POLICY
EFFECTIVE
PAGE
NUMBER
DATE
DRUG -FREE WORKPLACE
100-5
8-8-89
3 of 3
g. Making a good faith effort to maintain a drug -free workplace through implementation of
subparagraphs 1 A through I F, inclusive
2. Contractor and/or sub -grantee shall be deemed to be in violation of this Policy if the City of
Costa Mesa determines that:
a. Contractor and/or sub -grantee has made a false certification under paragraph 1
above;
b. Contractor and/or sub -grantee has violated the certification by failing to carry out
the requirements of subparagraphs 1 A through 1 G above;
c. Such number of employees of Contractor and/or sub -grantee have been convicted
of violations of criminal drug statutes for violations occurring in the workplace as
to indicate that the contractor and/or sub -grantee has failed to make a good faith
effort to provide a drug -free workplace.
Should any contractor and/or sub -grantee be deemed to be in violation of this Policy pursuant
to the provisions of 2 A, B, and C, a suspension, termination or debarment proceeding subject
to applicable Federal, State, and local laws shall be conducted. Upon issuance of any final
decision under this section requiring debarment of a contractor and/or sub -grantee, the
contractor and/or sub -grantee shall be ineligible for award of any contract, agreement or grant
from the City of Costa Mesa for a period specified in the decision, not to exceed five (5) years.
Upon issuance of any final decision recommending against debarment of the contractor and/or
sub -grantee, the contractor and/or sub -grantee shall be eligible for compensation as provided
by law.
33
EXHIBIT C
CERTIFICATES OF INSURANCE
34
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35
EX PARTE COMMUNICATIONS CERTIFICATION
Please indicate by signing below one of the following two statements:
Please sign only one statement.
I certify that Proposer and Proposer's representatives have not had any communication with a
City Councilmember concerning the Third Party Liability Claims Administration RFP at any
time after September 9, 2012
I certify that Proposer or Proposer's representatives have communicated after September 9, 2012
with a City Councilmember concerning the Third Party Liability Claims Administration RFP. A
copy of all such communications is attached to this form for public distribution.
36
37
PRICING PROPOSAL FORM
THIRD PARTY LIABILITY CLAIMS ADMINISTRATION
Provide hourly rates, along with estimated annual pricing in accordance with the City's current
requirements, as set forth in section 3 Scope of Work. Also provide your firm's proposed Staffing
Plan on a separate sheet of paper. Proposer should use a separate form to state pricing for any
added value.
Pricing shall remain firm for a minimum of two (2) years. Any and all requests for pricing adjustments for
follow-on contract renewal periods shall be provided no later than sixty (60) days prior to the end of the
contract period. Any such proposed price adjustments shall not exceed The Bureau of Labor Statistics
Consumer Price Index (CPI) data for Los Angles -Riverside -Orange County, CA, All Items, Not
Seasonally Adjusted, "annualized change comparing the original proposal month and the same month in
the subsequent year. (This information may be found on the U.S. Department of Labor's website at
www.bls.Qov.)
Employee
Hourly Rate
Hours worked
Total Cost
Overtime rate
Supervisor
$ 60.00
80
$4,800
$ N/A
Primary Adjuster
$ 54.00
290
$15,660
$ N/A
Back -Up Adjuster
$ 54.00
156
$8,424
$ N/A
Overhead
$
$10,109.40
$
Total Estimated Annual Price $ 38,993.40
Flat Fee Per Month $ 3,250.00
ADD ANY ADDITIONAL COST PROPOSAL SHEETS HERE
38
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46C
DISQUALIFICATION QUESTIONNAIRE
The Contractor shall complete the following questionnaire:
Has the Contractor, any officer of the Contractor, or any employee of the Contractor who has
proprietary interest in the Contractor, ever been disqualified, removed, or otherwise prevented
from bidding on, or completing a federal, state, or local government project because of a
violation of law or safety regulation?
Yes No X
If the answer is yes, explain the circumstances in the following space.
41
DISCLOSURE OF GOVERNMENT POSITIONS
Each Proposer shall disclose below whether any owner or employee of the firm currently hold
positions as elected or appointed officials, directors, officers, or employees of a governmental
entity or held such positions in the past twelve months. List below or state "None."
Name Title Entity
NONE.
42
City ®f Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
(714) 536-5227 ® www.huntingtonbeachca.gov
®Bice of the City Clerk
Joan L. Flynn, City Clerk
March 21, 2014
Carl Warren & Company
Attn: Michael Reed
770 South Placentia Ave.
Placentia, CA 92870-6832
Dear Mr. Reed:
Enclosed for your records are two originals of the "Professional Services Contract Between
the City of Huntington Beach and Carl Warren and Company for Liability Claim Investigation
and Processing."
Sincerely,
A^ �w A A
J019 L. Flynn, CIVIC
City Clerk
J F: pe
Enclosure
Sister Cities: Anjo, Japan 0 Waitakere, New Zealand