HomeMy WebLinkAboutCarl Warren and Company - 2020-03-17 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 Richard McAbee 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 March 17, 2020 (the "Commencement Date"), This Agreement shall be month-to-
month, not to exceed 1 I months, unless sooner terminated as provided herein. All tasks specified in
Exhibit "A" shall be completed no later than one year from the Conunencement 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 Eight Thousand Five Hundred ($8,500,00) per month for a total not to
exceed sum of Ninety Thousand Five Hundred($90,500.00).
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
A. 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.
B. To the extent that CONSULTANT performs "Design Professional Services" within
the meaning of Civil Code Section 2782.8, then the following Hold Harmless provision applies in
place of subsection A above:
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"CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless
CITY and its officers, elected or appointed officials, employees, agents and volunteers, from and
against any and all claims, damages, losses, expenses, demands and defense costs (including,
without limitation, costs and fees of litigation of every nature or liability of any kind or mature) to
the extent that the claims against CONSULTANT arise out of, pertain to, or relate to the negligence,
recklessness,or willful misconduct of CONSULTANT. In no event shall the cost to defend charged
to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However,
notwithstanding the previous sentence, in the event one or more other defendants to the claims
and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the
business, CONSULTANT shall meet and confer with CITY and other defendants regarding unpaid
defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as
provided in California Civil Code Section 2782.8.
C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by
CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation.
This indemnity shall apply to all claims and liability regardless of whether any insurance policies
are applicable. The policy limits do not act as a 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
($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
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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:
A. provide the name and policy number of each carrier and policy;
B. state that the policy is currently in force; and
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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
be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the
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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
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:
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TO CITY: TO CONSULTANT:
City of Huntington Beach Carl Warren &Company
ATTN: DeAnna Soria 17862 E. 17"' Street, Suite 111
2000 Main Street Tustin, CA 92780
Huntington Beach, CA 92648 Tel: (657) 622-4200
Fax: (866)254-4423
17. CONSENT
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
provision of 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
covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
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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 Charler Section 309, the City Attorney is the exclusive legal counsel for
CITY; and CITY shall not be liable for payment of any legal services expenses incurred by
CONSULTANT.
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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
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
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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.
CONSULTANT, CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
Carl Warren&Company California
COMPANY NAME
Ma r
By:
o 3.z��. �
Gordon Pennington City Clerk
Print name
ITS: (circle one)Chairma Presiders 'ce President INITIATED AND APPROVED:
AND
-ssistant City Manage
Richar_d MrAhPP —
print name IE AN PP ED:
ITS: (clrcl�re)Secretary/C •efFinai cia officer/ st.
Secretary- rcasurer
City Manager AV
APP VED AS O FORM:
cre City Attorney
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EXHIBIT "A"
SCOPE OF WORK
The Consultant is to provide the City with the following services:
A. Program Administration:
Consultant shall:
1, Provide professional and technical staff to perform General Liability Claims
Administration services with the assignment of qualified personnel, including
at least one principal claims examiner,to efficiently and effectively meet the
scope of work listed in this section. Such assignment shall be subject to
approval by the City.
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 any other case law affecting its General Liability Program,
4. Provide information and guidance regarding the general liability claims
program and specified claims.
5. Provide copies of file correspondence and documentation as requested by
City,
6. Inform City of problem areas and/or trends, both potential and perceived, and
provide recommendations and/or solutions to address problem areas and/or
trends,
7. Attend appointments, including but not limited to: meetings,conferences,
Court appearances and scene investigations at the request of the City.
8. Provide 24-hour on-call service by providing the City with contact
information for key personnel. This may include, but is not limited to,
responding to an incident scene and/or conducting investigations,
9. Conduct risk management related seminars for department heads and/or City
staff at the request of the City.
10. Attempt to settle or recommend denial of claims.
EXHIBIT A
It. Prepare necessary reports of claims filed for the City's primary and excess
carriers.
12. Establish and maintain a file for each potential claim.
13. Prepare a Monthly Status Report on all claims including litigated claims.
Copies of the report shall be furnished to both the city Attorney and Risk
Manager within twenty(20)days of the close of each calendar month, The
Monthly Status Report shall include, but is not limited to,the following:
i. 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 detail of all claim payments during the
month; investigative costs; claims opened and closed during the
month; and any active litigation.
B. Claims Administration
Consultant shall provide administrative services that include, but are not limited to:
1. At the direction of the City, claimants or their attorneys will be contacted
promptly and appropriate contact will be maintained until the claim is closed.
Claimants or their attorneys will receive a telephone call from Consultant or
have a contact letter mailed to them from Consultant within 48 hours of
receipt of claim by Consultant.
2. Obtain estimates of automobile damage when appropriate.
3. Review the status of claims and adequacy of reserves on all active cases at
least every 90 days.
4. Provide first investigative report to Risk Management within thirty(30) days
of receipt of claim.
5. Provide narrative reports when recommending rejection or settlement of a
claim,when a claim is going to trial, or when any other significant events
have occurred or will occur. Reports must be clear and concise.
6. Negotiate settlements for submittal to the Risk Manager for approval.
7. All files will be diaried at appropriate intervals to allow for timely
completion of required activity.
EXHIBIT A
8. Content of all files will be in chronological order with correspondence in the
designated section.
9. File will clearly and concisely document action taken on the claim.
10. Telephone calls will be returned within 24 hours. If the staff member called
is not available within this timeframe, another designated staff member will
return the call.
11. Review all new claims for liability and provide an assessment of liability to
the City no later than thirty (30)days from receipt of loss notice to City.
12. Identify and notify possible co-defendants.
13. Tender claims to other potential responsible parties.
14. Process all claims in accordance with City's instructions and policies.
15. Have translators available to assist with non-English speaking claimants
and/or witnesses.
16. Maintain a procedure to alert necessary persons of important dates with
respect to the claims.
17. If the possibility of subrogation exists,place the tortfeasor on notice of the
City's subrogation rights and work with Risk Management and/or the City
Attorney's Office to draft legal documents to recover monies spent on a
claim.
18. Review and comply with the claims reporting requirements in accordance
with policy provisions.
19. Comply and meet with any excess carrier claims administration requirements.
C. Investigations
1. Within ten(10) days of receipt of claims,unless otherwise requested by the
Risk Manager, take statements of facts from claimants when not represented
by an attorney. Statements will be preserved by recording or taking
handwritten signed statements.
2. Further investigate claims where the initial review indicates that it is
warranted. Further investigation may include,but is not limited to: on-sight
investigation, photographs, interviewing witnesses and taking signed or
recorded statements,verification of damage or loss,taking measurements,
obtaining maps/diagrams from the City or other sources, obtaining medical
releases,police reports, internal operations investigations, paramedic reports,
EXHIBIT A
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marine safety department reports,building permits, or other records as
required.
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3. If an attorney is involved,direct all communication to the claimant's attorney
regarding the investigation, negotiation, and evaluation of any claims leading
to a settlement.
4. Report all bodily injury claims to Index Bureau. Conduct bureau searches for
repeat claimants. Conduct additional Index Bureau searches at request of the
City.
5. Obtain approval from City before engaging the services of an outside vendor
for an investigative assignment,
D. Litigation Management
Consultant shall provide Litigation Management services that include, but are not limited to:
1. Provide City Attorney's Office with transmittal letter outlining the status of
the case, results of investigations,primary issues,requested action, a
complete copy of the file and any documentation within fourteen(14) days of
receipt of lawsuit with a copy to the Risk Manager.
2. Maintain liaison with the City Attorney's Office and defense counsel and
provide such investigation as required during the entire litigation process,
including but not limited to: additional investigations for pretrial and trial
that may be requested by either the City Attorney's Office or defense
counsel.
3. Obtain approval from City prior to agreement or settlement.
4. Obtain a fully executed release on all settlements and dismissals.
5. Attend Settlement Conferences, mediation or arbitrations as requested.
6. Assist the City Attorney and defense counsel in preparing and/or answering
discovery as requested.
7. Assist City personnel in Small Claims Court actions filed by and against 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.
EXHIBIT A
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Exhibit B
- e • s e '• a • •
Contact: Claudia Allen, Hk Analyst
Tel: 909-384-5337 ( Allen_CI@sbclty.org
• Client Name: City of West Covina
Project Description: Liability, Subrogation, and Litigation Management
Project start and end dates: 2011 - Current
Contact: Helen Tran, Director of HR/Risk Management
Tel: 626-939-8711 1 Htran@westcovina.org
4) Provide a list of three (3) cilents who have elected to discontinue to contract with your firm
during the past five (5) years, describe reason for change and Information regarding the
size of the organization.
e City of Newport Beach (population 86K): The City decided to bundle their TPA services.
e City of Whittier-- (population 87K): The City went to another pool that required the City
to use a different TPA.
e City of Thousand Oaks - (population 129K): Our former management did not response
to Best & Final offer that the City requested thus eliminating us from participation.
F. Fee Proposal
The City of Huntington Beach'desires a three (3) year proposal that may be extended up to
one (1) years. Describe your firm's fee schedule on an annual basis.
0
Fixed Annual hate
*Not-to-exceed 150 new claims and $102,000* $105,060* $108,212* $111,458*
record onl er ear per year per year per year per year
Excess of CAP of 150 Claims Per Year
Llti ated Claims $900 per suffix $927 per suffix $955 per suffix $983 per suffix
Excess of CAP of 150 Claims Per Year suffix
- Non-Lill aced Claims $600 per $618 per suffix $637 per suffix $656 per suffix
Incident Report/Record Only Included Included Included included
Telephone Included Included Included Included
Copy Work Included Included Included Included
Steno ra hs Included Included Included Included
Postage Included Included Included Included
Office Expense Included Included Included Included
Claims Set-Up Fee Included Included Included Included
Data Processing Included Included Included Included
Index Bureau Included Included included Included
(ISO Claims Search &OFAC
MMSEA filing Fee (liability claims Included Included Included Included
• •- • • VA
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
FOR
Table of Contents
1 Scope of Services......................................................... ..........................................1
2 City Staff Assistance..................................................................I.............................2
3 Term; Time of Performance.....................................................................................2
4 Compensation..........................................................................................................2
5 Extra Work...............................................................................................................2
6 Method of Payment..................................................................................................3
7 Disposition of Plans, Estimates and Other Documents ...........................................3
8 Hold Harmless .........................................................................................................3
9 Professional Liability Insurance.............................................................................4
10 Certificate of Insurance............................................................................................5
11 Independent Contractor............................................................................................6
12 Termination of Agreement.......................................................................................6
13 Assignment and Delegation..........................................................................i...........6
14 Copyrights/Patents...................................................................................................7
15 City Employees and Officials..................................................................................7
16 Notices.........................................................................................7
17 Consent....................................................................................................................8
18 Modification.............................................................................................................8
19 Section Headings .....................................................................................................8
20 Interpretation of this Agreement..............................................................................8
21 Duplicate Original....................................................................................................9
22 Immigration...............................................................................................................9
23 Legal Services Subcontracting Prohibited................................................................9
24 Attorney's Fees..........................................................................................................10
25 Survival.....................................................................................................................10
26 Governing Law.........................................................................................................10
27 Signatories.................................................................................................................10
28 Entirety......................................................................................................................10
29 Effective Date.................................................................................11
Exhibit A
A. Program Administration:
Consultant shall:
1. Provide professional and technical staff to perform General Liability Claims
Administration services with the assignment of qualified personnel, including at least one
principal claims examiner, to efficiently and effectively meet the scope of work listed in this
section. Such assignment shall be subject to approval by the City.
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 any
other case law affecting its General Liability Program.
4. Provide information and guidance regarding the general liability claims program and specified
claims.
5. Provide copies of file correspondence and documentation as requested by City.
6. Inform City of problem areas and/or trends, both potential and perceived, and provide
recommendations and/or solutions to address problem areas and/or trends.
7. Attend appointments, including but not limited to: meetings, conferences, Court appearances
and scene investigations at the request of the City.
8. Provide 24-hour on-call service by providing the City with contact information for key
personnel. This may include, but is not limited to,responding to an incident scene and/or
conducting investigations.
9. Conduct risk management related seminars for department heads and/or City staff at the
request of the City.
10. Attempt to settle or recommend denial of claims.
11. Prepare necessary reports of claims filed for the City's primary and excess carriers.
12. Establish and maintain a file for each potential claim.
13. Prepare a Monthly Status Report on all claims including litigated claims. Copies of the report
shall be furnished to both the City Attorney and Risk Manager within twenty (20) days of the
close of each calendar month. The Monthly Status Report shall include, but is not limited to, the
following:
i. 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 detail of all claim payments during the month; investigative costs; claims opened
and closed during the month; and any active litigation.
B. Claims Administration
Consultant shall provide administrative services that include, but are not limited to:
1. At the direction of the City, claimants or their attorneys will be contacted promptly and
appropriate contact will be maintained until the claim is closed.
Claimants or their attorneys will receive a telephone call from Consultant or have a contact letter
mailed to them from Consultant within 48 hours of receipt of claim by Consultant.
2. Obtain estimates of automobile damage when appropriate.
3. Review the status of claims and adequacy of reserves on all active cases at least every 90 days.
4. Provide first investigative report to Risk Management within thirty (30) days of receipt of
claim.
5. Provide narrative reports when recommending rejection or settlement of a claim, when a claim
is going to trial, or when any other significant events have occurred or will occur. Reports must
be clear and concise.
6. Negotiate settlements for submittal to the Risk Manager for approval.
7. All files will be diaried at appropriate intervals to allow for timely completion of required
activity.
8. Content of all files will be in chronological order with correspondence in the designated
section.
9. Files will clearly and concisely document action taken on the claim.
10. Telephone calls will be returned within 24 hours. If the staff member called is not available
within this timeframe, another designated staff member will return to call.
11. Review all new claims for liability and provide an assessment of liability to the
City no later than thirty (30) days from receipt of loss notice to City.
12. Identify and notify possible co-defendants.
13. Tender claims to other potential responsible parties.
14. Process all claims in accordance with City's instructions and policies.
15. Have translators available to assist with non-English speaking claimants and/or witnesses.
16. Maintain a procedure to alert necessary persons of important dates with respect to the claims.
17. If the possibility of subrogation exists, place the tortfeasor on notice of the City's subrogation
rights and work with Risk Management and/or the City Attorney's
Office to draft legal documents to recover monies spent on a claim.
18. Report to BICEP (Excess Liability Pool)in accordance with policy provisions.
19. Comply and meet with any excess carrier claims administration requirements.
C. Investigations
1. Within ten (10) days of receipt of claim, unless otherwise requested by the Risk
Manager,take statements of facts from claimants when not represented by an attorney.
Statements will be preserved by recording or taking handwritten signed statements.
2. Further investigate claims where the initial review indicates that it is warranted.
Further investigation may include, but is not limited to: on-sight investigation, photographs,
interviewing witnesses and taking signed or recorded statements, verification of damage or loss,
taking measurements, obtaining maps/diagrams from the City or other sources, obtaining
medical releases, police reports, internal operations investigations,paramedic reports, marine
safety department reports, building permits, or other records as required.
3. If an attorney is involved, direct all communication to the claimant's attorney regarding the
investigation, negotiation, and evaluation of any claims leading to a settlement.
4. Report all bodily injury claims to Index Bureau. Conduct Index bureau searches for repeat
claimants. Conduct additional Index Bureau searches at request of the City.
5. Obtain approval from City before engaging the services of an outside vendor for an
investigative assignment.
D. Litigation Management
Consultant shall provide Litigation Management services that include, but are not limited to:
1. Provide City Attorney's Office with transmittal letter outlining the status of the case, results of
investigations, primary issues, requested action, a complete copy of the file and any
documentation within fourteen(14) days of receipt of lawsuit with a copy to the Risk Manager.
2. Maintain liaison with the City Attorney's Office and defense counsel and provide such
investigation as required during the entire litigation process, including but not limited to:
additional investigations for pretrial and trial that may be requested by either the City Attorney's
Office or defense counsel.
3. Obtain approval from City prior to agreement or settlement.
4. Obtain a fully executed release on all settlements and dismissals.
5. Attend Settlement Conferences, mediation or arbitrations as requested.
6. Assist the City Attorney and defense counsel in preparing and/or answering discovery as
requested.
7. Assist City personnel in Small Claims Court actions filed by and against 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.
Exhibit B
City of Huntington Beach
X 3// General Liability Third Party Claims Administrafion
Request . Proposal
Contact: Claudia Allen, HR Analyst
Tel: 909-384-5337 1 Allen_CI@sbcity.org
• Client Name: City of West Covina
Project Description: Liability, Subrogation, and Litigation Management
Project start and end dates: 2011 - Current
Contact: Helen Tran, Director of HR/Risk Management
Tel: 626-939-8711 1 Htran@westcovina.org
4) Provide a list of three (3) clients who have elected to discontinue to contract with your firm
during the past five (5) years, describe reason for change and information regarding the
size of the organization.
• City of Newport Beach (population 86K): The City decided to bundle their TPA services.
• City of Whittier- (population 87K): The City went to another pool that required the City
to use a different TPA.
• City of Thousand Oaks - (population 129K): Our former management did not response
to Best & Final offer that the City requested thus eliminating us from participation.
F. Fee Proposal
The City of Huntington Beach desires a three (3) year proposal that may be extended up to
one (1) years. Describe your firm's fee schedule on an annual basis.
Fixed Annual Rate $102,000* $105,060* $108,212* $111,458*
*Not-to-exceed 150 new claims and
per year per year per year per year
record only per year
Excess of CAP of 150 Claims Per Year $900 per suffix $927 per suffix $955 per suffix $983 per suffix
- Litigated Claims
Excess of CAP of 150 Claims Per Year
- Non-Litigated Claims $600 per suffix $618 per suffix $637 per suffix $656 per suffix
Incident Report/Record Only Included Included Included Included
Telephone Included Included Included Included
Copy Work Included Included Included Included
Steno ra hs Included Included Included Included
Postage Included Included Included Included
Office Expense Included Included Included Included
Claims Set-Up Fee Included Included Included Included
Data Processing Included Included Included Included
Index Bureau Included Included Included Included
ISO Claims Search & OFAC
MMSEA Filing Fee liability claims Included Included Included Included
Carl Warren • •• - Response - •-
i
CITY OF HUNTINGTON BEACH
REQUEST FOR LEGAL SERVICES
Michael E,Gates,City Attorney
COMMENTS (Continued):
I am requesting that the City Attorney draft a Professional Service Agreement between the City and
Carl Warren & Company to provide assistance in administering the City's program of self-insurance
for general liability pursuant to the California Tort Act. Please see the attachments attached to this
request, The current contract expires March 16, 2020, The new contract will continue their current
services on a month-to-month basis beginning March 17, 2020 for no more than eleven (11) months
Attachments: - Scope of Work and Fee Proposal
RlS Form -2-
CITY OF HUNTINGTON BEACH P'CEIVED
r Professional Service Approval Forn*AR 112020
PART II 'Finance ., wvartmew
Date: 3/11/2020 Project Manager: DeAnna Soria
Requested by Name if different from Project Manager:
Department: Human Resources
PARTS I & II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE
COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART I & II MUST
BE FILED WITH ALL APPROVED CONTRACTS.
1) Name of consultant: Carl Warren
2) Contract Number: HR
3) Amount of this contract: $93,500
Account number Contractual Dollar Amount
Business unit. object# Fiscal Year Fiscal Year Fiscal Year Fiscal Year
19/20 20/21 21/22 22/23
55230502.69365 $29,750 $63,750 $ $
4) Is this contract less than $50,000? ❑ Yes ® No
5 Does this contract fall within $50,000 and $100,000? KYeses No
6) Is this contract over$100,000? [] 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, which describes the payment terms of the contract.
Department Head Dat
Principal Fin nce Analyst (Purchasing) Date
Budget ManagU Approval Signature Date
Chief Financia Officer(or designee) Signature bate
revised prof. sery appro form -part ii 3-11-20.doc
REV: 10/2019
Switzer, Donna
From: Serrano, Cathleen
Sent: Friday, April 10, 2020 11:12 AM
To: Switzer, Donna
Subject: RE: Carl Warren Prof. Services Contract
General Liability Third Party Claims Administration - 2020-0203
Bid information Documents& Prospective Q&A Addenda & Bid Results
Attachments Bidders Ernails
Project Title General Liabiliby Third Pairty Claims Administration
Invitation# 2020-0203
Bid Due on 02f03/20 I at 14:00 PM y # PACIFIC
Prefect Stage Closed
Reference ID J
Project Type RFP
Response Format Electronic only,
Notes displayed in eBidding j You are invited to review and respond to this Request for Proposal (RFP), entitled General I
Third Party Claims Administration for the City of Huntington Beach.
Response Types Response File, General Attachments ■Type of Award Lump Sum
Category 91869, 91885,95300,95861 ■
By Invitation Only
Vendor Notification 178 vendors have been notified SEND EMAIL
Contact Name/Phone Cathleen Serrano - 71,1-960-9878
Email cath leen.serranc,(,,Tsu rfcity-h b.org
Bids to
Owner's Agent
Internal Notification Email List
77 it 1-75 IFT,7.7-77M
Department Purchasing
Address 2000 Main Street
City Huntington Beach
County Orange
Switzer, Donna
From: Serrano, Cathleen
Sent: Friday, April 10, 2020 11:13 AM
To: Switzer, Donna
Subject: RE: Carl Warren Prof. Services Contract
Bid Information Line Items Doomenis& Pr�p�t�ve "AAddenda& Bid Results Project
A11 A Bidders Emails Evaluation
ILI
Project Title General Liability Third Party Claims Administration
Invitation No. 2020-0203
Bid Posting Date January 14, 2020 2:23 PM (Pacific)
Project Stage Closed
Bid Due Date February 3, 2020 4:00 PM (Pacific)
Response Format Electronic only
Link to Project on Public Site httpsJAvww.pllanetbids.camlportal)portal.cfm?CompanylD=15340&BidlD=69115
j Reference ID
s� Project Type RFP (Request For Proposal)
Response Types Response File. General Attachments
Type of Award Lump Sum
Categories 91869- Insurance Consulting
91885- Personnelr'Employment Consulting (Human Resources)
95300- Insurance And Insurance Services, (All Types)
95861 - Insurance And Risk Management Services
License Requirements'
Department Purchasing
Address 2000 Main Street, Huntington Beach, California
County Orange
- � Bid Valid
i Liquidated Damages
, i
Target Bid Amount 1 none
Estimated Bid Value'
Start/Delivery Date'
Project Duration
Prevailing Wage:No
Cooperative Bid!No
Piggy-backable'No
eBid Notes'You are invited to review and respond to this Request for Proposal (RFP): entitled General
Administration forthe City of Huntington Beach.
Preferences
Restriction Type:None
Ractrktad Tn 11
1
From: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Sent: Friday, April 10, 2020 10:54 AM
To: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
Oh, Cathleen, I am so sorry to say this—it's still totally blacked out when I open the pdf.
Can you print what you're seeing?
From: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Sent: Friday, April 10, 2020 10:49 AM
To: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
Please let me know if this works
From: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Sent: Friday, April 10, 2020 10:32 AM
To: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
I need the bid list for the Professional Services Contract with Carl Warren and Company for Liability Claim Investigation
and Processing.
From: Serrano, Cathleen <cath lee n.serrano@surfcity-hb.org>
Sent: Friday, April 10, 2020 10:31 AM
To: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
Hi Donna,
I'm not sure what happening. What information exactly do you need ? I'll have to snip it.
Thank you,
Cathleen Serrano
Buyer I City of Huntington Beach
(714) 960-8878
Cathleen.Serranogsurfcity-hb.org
From: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Sent: Friday, April 10, 2020 10:29 AM
To: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Subject: FW: Carl Warren Prof. Services Contract
Good morning, Cathleen:
Just following up on the email I sent you on April 2nd.
2
The pdf that you sent on April 11'contained blacked out pages. Would you please resend the document or print a copy
of send it to me via inter-office mail?
Thank you so much.
DO nna/SwLtje r
Deputy City Clerk-City of Huntington Beach
2000 Main Street- Huntington Beach, CA 92648
(714)374-1649
Donna.Switzer@surfcity-hb.org
From: Switzer, Donna
Sent:Thursday, April 2, 2020 10:17 AM
To: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
Good morning, Cathleen:
Thank you for getting back to me. Unfortunately, when I open the pdf, all I see are nine black pages. Would you mind
resending them please?
Thank you.
Take good care.
Davu*ta/SWX3'e r
Deputy City Clerk - City of Huntington Beach
2000 Main Street- Huntington Beach, CA 92648
(714)374-1649
From: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Sent: Wednesday, April 1, 2020 4:05 PM
To: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Subject: RE: Carl Warren Prof. Services Contract
Good Afternoon Donna,
I've attached the planet bids publication for this contract is this what you are looking for?
Sorry for the delay. Hope all is well.
Thank you,
Cathleen Serrano- Buyer
City of Huntington Beach
(714) 960-8878
3
From: Switzer, Donna <Donna.Switzer@surfcity-hb.org>
Sent: Wednesday, April 1, 2020 3:19 PM
To:Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Cc: Flores, Paulina <Paulina.Flores@surfcity-hb.org>; Anderson,Jennifer<Jennifer.Anderson@surfcity-hb.org>; Esparza,
Patty<PEsparza@surfcity-hb.org>; Soria, DeAnna <deanna.soria@surfcity-hb.org>
Subject: FW: Carl Warren Prof. Services Contract
Hi Cathleen,
Following up on the email below.
Thank you.
1)&n ia/SwXt ex
Deputy City Clerk- City of Huntington Beach
2000 Main Street- Huntington Beach, CA 92648
(714)374-1649
From: Switzer, Donna
Sent: Friday, March 27, 2020 3:15 PM
To: Serrano, Cathleen <cathleen.serrano@surfcity-hb.org>
Cc: Esparza, Patty<PEsparza@surfcity-hb.org>
Subject: Carl Warren Prof. Services Contract
Hi Cathleen,
I received the Professional Services Contract with Carl Warren and Company for Liability Claim Investigation and
Processing from Travis this afternoon and noticed that a bid list was not provided along with the contract. Michele
Hoffman has confirmed that it did go out to bid and she suggested that I reach out to you to request it. Do you by
chance have it?And, if not, do you know who I should contact to request it?
Thank you so much.
l On* r/SwiZFx
Deputy City Clerk- City of Huntington Beach
2000 Main Street- Huntington Beach, CA 92648
(714)374-1649
4