Title
Recommendation to Approve Amendment to the Agreement with George Hills Company to Extend the Term by Five Years and Increase the Compensation for a Total Five Year Expenditure Not to Exceed $404,300 for Third Party Claims Administration Services. (City Attorney 712)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The Risk Management Division of the City Attorney's Office currently administers general liability and property claims through third part administrator (TPA), George Hills Company (George Hills). The current contract expires November 15, 2018. Staff has renegotiated a five year contract with George Hills with compensation not to exceed $404,300.
BACKGROUND
Prior to November 2013, the City of Alameda (City) administered the general liability and property claims in-house. In-house liability claims adjustment services included processing, establishing loss reserves, investigating claims, accounting, providing loss summaries and loss-run reports and assisting the City Attorney in the evaluation, and management of claims from inception through disposition. On July 11, 2013 the City Attorney's Office issued a Request for Proposals (RFP) for General Liability Claims Handling and Administration. Ten companies responded.
Ultimately, George Hills, a long-established Northern California provider of third-party liability claims administration for public entities for over 30 years was selected. George Hills has handled claims administration for the City since November 15, 2013. In addition to administrating the City's claims, George Hill's administers in excess of 500 claims annually for over 40 California cities. George Hills' administration of the City's claims has been handled efficiently, promptly and at a reasonable cost. The City Attorney's Office is, therefore, recommending that Council authorize an amendment to their agreement, which will allow them to continue a...
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