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Human Resources Department, Risk Management Division, recommending the Board approve and authorize the Chair to sign Amendment I to Agreement 536 with George Hills for third party general liability claims management to increase the total not-to-exceed by $180,000, to cover monthly billing rates for an additional year, for a total not-to-exceed amount of $1,024,116 and extend the term to December 31, 2021.
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 I with George Hills to increase the total not-to-exceed by $180,000 for a total not-to-exceed amount of $1,024,116 and extend the term to December 31, 2021. Amendment I will extend the current term of the agreement January 1, 2019 through December 31, 2020, by one year to expire on December 31, 2021. In conjunction with the term extension is the addition of $180,000 to the total contract cost to cover the $15,000 monthly billing rate outlined in the amendment. The current agreement states a monthly billing rate that increases annually by an average of 2%. The $15,000 monthly billing rate outlined in the amendment for 2021 is a 2.5% increase from the prior year.
George Hills has been engaged to provide claims administration services for the general liability program 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. They will provide a senior adjuster and a back-up adjuster, adequate technical and clerical staff, equipment, and software necessary to provide the claims administration services to County's account.
Contractor will manage and administer liability claims 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.
ALTERNATIVES
The Board could choose not to approve the amendment and Risk Management could use another vendor.
PRIOR BOARD ACTION
December 15, 2015 Legistar Item 15-1431
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 I to Agreement 536 and return a copy of the fully executed amendment to Purchasing and Contracts.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Robert Schroeder