REPORT TO CITY COUNCIL AND SANTA CLARA STADIUM AUTHORITY
SUBJECT
Title
Action to Authorize the City Manager and Stadium Authority Executive Director to Extend the Agreement with Carl Warren & Company for General Liability Claims Adjusting and Administrative Services through March 1, 2027 and Increase Compensation by $65,000 for a Revised Maximum Compensation of $635,000
Report
BACKGROUND
In June 2021, a Statement of Qualifications was advertised on the City’s bid notification system for general liability claims adjusting and administration services for the City of Santa Clara (City) and Santa Clara Stadium Authority (Stadium Authority). Proposals were evaluated by a three-member evaluation team with expertise in claims administration including representation from the City Manager's Office, the City Attorney's Office, and Public Risk Innovations, Solutions and Management (PRISM), the joint powers agency through which the City obtains liability coverage.
The City recommended a contract to Carl Warren & Company (Carl Warren) with the award recommendation based on “best value.” The City Council and Stadium Authority Board approved the recommendation on August 24, 2021 (RTC# 21-1104), and authorized the City Manager and Stadium Authority Executive Director to execute an agreement with Carl Warren for an initial three-year term and maximum compensation not to exceed $342,000 for up to 125 open claims subject to the appropriation of funds.
On September 23, 2024, pursuant to the authority delegated to the City Manager under RTC# 21-1104, Amendment No. 1 was executed to exercise the first of two option periods. The amendment extended the term through August 29, 2025, and increased the maximum compensation to $456,000 to fund the additional year of services.
On September 15, 2025, pursuant to the authority delegated to the City Manager under RTC# 21-1104, Amendment No. 2 was executed to exercise the second of two option periods. The amendment extended the term through August 29, 2026, and increased the maximum compensation to $570,000 to fund the additional year of services.
DISCUSSION
The authority delegated by the City Council under RTC# 21-1104 will expire on August 29, 2026. Accordingly, staff is conducting a new Request for Proposals (RFP) for General Liability Claims Adjusting and Administrative Services that, subject to City Council approval, will result in a new agreement for up to eight years. The RFP has been delayed due to workload demands and capacity constraints affecting key staff, as well as the additional time required to ensure compliance with the provisions of Assembly Bill 339.
To ensure continuity of these critical services during the procurement process, staff recommends that the City Council and Stadium Authority Board approve a six-month extension of the existing agreement with Carl Warren, effective August 29, 2026, and to increase the maximum compensation by $65,000 from $570,000 to $635,000. Carl Warren has agreed to the extension under compensation structure, consisting of a fixed monthly fee of $9,500 for the administration of up to 125 open claims, plus $850 per month for each open claim in excess of 125.
Staff estimates the cost of the extension to be approximately $57,000. The additional $8,000 is requested to ensure sufficient funding is available should the number of open claims exceed 125 during the extension period.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The FY 2026/27 Adopted Operating Budget includes funding for the liability claims administration services in the Special Liability Insurance Fund appropriation.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 3 to the Agreement with Carl Warren & Company for General Liability Claims Adjusting and Administration Services to extending the term through March 1, 2027 and increase compensation to a revised maximum of Six Hundred Thirty-Five Thousand Dollars ($635,000) subject to budget appropriations;
2. Authorize the Stadium Authority Executive Director to execute Amendment No. 3 to the Agreement with Carl Warren & Company for General Liability Claims Adjusting and Administration Services to extending the term through March 1, 2027 and increase compensation to a revised maximum of Six Hundred Thirty-Five Thousand Dollars ($635,000) subject to budget appropriations; and
3. Authorize the City Manager and Stadium Authority Executive Director or designees to take all actions as necessary to implement and administer the agreement, including negotiating and executing future amendments to (a) add or delete related line item services, and (b) make de minimis changes, provided that the total not-to-exceed maximum compensation is not exceeded, subject to review and approval as to form by the City Attorney/Agency Counsel.
Staff
Reviewed by: Glen Googins, City Attorney, City Attorney’s Office
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Carl Warren Amendment No 3 RTC Attachment