REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with George Hills Company, Inc., for Liability Claims Adjusting and Administrative Services
Report
BACKGROUND
In August 2014, the City Council authorized the City Manager to execute an agreement with George Hills Company, Inc., to administer, receive, investigate, and process claims filed against the City. George Hills has been performing these services for 25 years.
The current term expires on August 18, 2019. Staff recommends amending the existing agreement by extending the term for two years ending on August 18, 2021 to allow time to prepare for a competitive solicitation process.
DISCUSSION
The City recently hired a Risk Manager to evaluate and strengthen the City's risk management practices and controls, including the City's general liability claims administration and practices, loss reporting and implementation of corrective measures.
Staff is requesting approval to extend the term for up to two years to provide time for the Risk Manager to assess and update the scope of work associated with general liability claims services. The two-year extension will allow sufficient time for staff to conduct a competitive solicitation process based on an updated scope of work, award a contract, and if necessary, transition services and claim loss data to the selected contractor. This amendment also identifies the Stadium Authority as an affiliated entity and authorizes George Hills Company to administer and invoice Stadium Authority claims separately and distinctly in compliance with Measure J.
The current agreement with George Hills Company has an annual maximum compensation of $200,000, which is expected to remain the same during the two-year Amendment term. Amendment No. 1 increases the total maximum compensation by $400,000 for a revised not-to-exceed maximum compensation of $1,400,000. The rates are fixed for the term of the agreement and include fees for i...
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