Title
Human Resources Department, Risk Management Division, recommending the Board consider the following:
1) Make findings in accordance with Ordinance 3.13.030 that it is appropriate to contract with George Hills for third party general liability claims management under Agreement 536 because “(B) specialty skills and qualifications not expressly identified in County classifications are involved in the performance of the work”;
2) Make findings in accordance with Procurement Policy C-17, Section 3.4, exempting competitive bidding for Agreement 536 with George Hills to maintain continuity of business operations, as well as continuing with the same fee structure as the current contract;
3) Approve and authorize the Chair to sign Amendment III to Agreement 536 with George Hills for third party general liability claims management to increase the amount by $601,928.64 for a total amount not to exceed $2,231,044.64 and extend the term to December 31, 2027; and
4) Authorize the Purchasing Agent to execute any necessary amendments relating to Agreement 536, excluding term extensions and increases to the amount, contingent upon approval by County Counsel and Risk Management.
FUNDING: General Liability Program Fund.
Body
DISCUSSION / BACKGROUND
In accordance with Board Policy Number C-17, departments are required to obtain authorization from the Board of Supervisors to utilize any contract for services that exceed $100,000. The Human Resources Department Risk Management Division is requesting the Board approve and authorize Amendment III with George Hills to increase the total not-to-exceed by $601,928.64 for a total not-to-exceed amount of $2,231,044.64 and extend the term to December 31, 2027. Amendment III will extend the current term of the agreement by three years to expire on December 31, 2027. In conjunction with the term extension is the addition of $601,928.64 to the total contract cost to cover the cost of the monthly billing rate outlined in the amendment. Per Procurement Policy C-17, Section 3.4, the amendment is exempt from the competitive bidding process in order to maintain continuity of business operations, as well as continuing with the same fee structure as the existing contract. The annual increase for each of the three years will be 2.75%, which is consistent with the current Amendment II increase year over year.
George Hills has been engaged to provide claims administration services for General Liability for the Risk Management Division of the Human Resources Department.
The Contractor agrees to perform as the administrator of the County's self-insured liability claims program. Contractor will provide a dedicated adjuster, adequate technical, clerical staff, equipment, and software necessary to provide the claims administration services to County's account.
Contractor will manage and administer liability claims as described or as may be assigned by the County during the term of this agreement. Contractor shall investigate, evaluate, process, manage and resolve bodily injury, personal injury and property damage claims and potential claims for money damages asserted by third parties against County, its officers, agents, or employees for which County, its officers, departments, commissions, or related agencies, or any of its employees is alleged to be legally responsible. Contractor will coordinate, consult, and fully cooperate with County personnel in the administration of those claims referred to herein.
ALTERNATIVES
The Board could choose not to approve the amendment and Risk Management could use another vendor.
PRIOR BOARD ACTION
12/15/2015 Legistar file 15-1431: Board approval of the initial agreement
12/08/2020 Legistar file 20-1475: Board approval of Amendment I to Agreement 536
12/14/2021 Legistar file 21-1549: Board approval of Amendment II to Agreement 536
OTHER DEPARTMENT / AGENCY INVOLVEMENT
CAO, County Counsel, Procurement and Contracts
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding for the amendment is included in the General Liability Program Fund.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain the Board Chair’s signature on Amendment III to Agreement 536 and return a copy of the fully executed amendment to Purchasing and Contracts.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joseph Carruesco, Director of Human Resources