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CC - CONSENT ITEM: (1) Approval of a Three-Year Professional Services Agreement with George Hills for General Liability Third-Party Administrator (TPA) Claims Management Services; and (2) Authorization to the City Attorney to Approve an Additional Two-Year Extension.
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Meeting Date: June 9, 2025
Contact Person/Dept.: Heather Baker/City Attorney
Phone Number: (310) 253-5660
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/05/2025)
Department Approval: Heather Baker (06/04/2025) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council (1) approve a three-year professional services agreement with George Hills for general liability third party administrator (TPA) claims management services; and (2) authorize the City Attorney to approve an additional two-year extension.
BACKGROUND
To facilitate its liability claims management, historically, the City has used a TPA for investigation, adjustment and administration of liability claims asserted by third parties against the City. The TPA works closely with the City Attorney’s Office in evaluating claims, negotiating and handling the paperwork for settlements at the claims stage, and monitoring the defense of litigation brought against the City. The TPA also ensures that the City, and its outside legal defense firms, follow the policies and guidelines set by the City, the City’s insurers, and industry best practices.
Since June of 2019, the City has been utilizing George Hills for TPA services with the current agreement expiring on June 30, 2025. Pursuant to CCMC Section 3.07.045, in the event the same vendor has been utilized for a period of five consecutive years, competitive bidding procedures shall apply.
DISCUSSION
In March 2025, a Request for Proposals (RFP) for General Liability TPA Claims Management Services was released and the City received a total of four proposals. After evaluation of the proposals, all four proposers were selected to participate in an evaluation interview with a review panel consisting of members of the City Attorney’s Office, the Chief Financial Officer, the Risk Manager, and the Public Works Director. Staff participating on the panel included those who are actively involved in and/or knowledgeable about the general liability claims management process.
Although all four proposers were very knowledgeable and experienced with liability claims management, the interview panel concluded that George Hills best meets the City’s needs at this time, based on, among other things, their quality customer service, responsiveness to client needs, and tools and resources.
In addition to the feedback of the interview panel, the City Attorney’s Office has been extremely satisfied with George Hills’ services over the last six years. The George Hills team is experienced, knowledgeable, approachable and professional, and they continue to provide staffing, supervisory and reporting structures that best meet the City’s liability TPA needs.
FISCAL ANALYSIS
The fees for Fiscal Year 2025-2026 are estimated to range between $135,000 - $160,000 depending on the volume of claims each year. (See Attachment - George Hills Fee Structure). The Proposed Budget for Fiscal Year 2025-2026 includes $125,000 in Account No. 30913400.619800 (City Attorney Risk - Other Contractual Services) to cover the fees for Fiscal Year 2025-2026. Staff will monitor the volume of claims and request any necessary budget amendments during the midyear budget process. Fees for future years of the agreement will be requested during future fiscal year budget cycles.
ATTACHMENTS
2025-06-09_ATT_George Hills Fee Structure
MOTIONS
That the City Council:
1. Approve a three-year professional services agreement with George Hills for general liability third party administrator claims management services;
2. Authorize the City Attorney to approve an additional two-year extension;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such document on behalf of the City.