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CC - CONSENT ITEM: (1) Waiver of Competitive Bidding Procedures Pursuant to Culver City Municipal Code Section 3.07.075.F.3; and (2) Approval of an Amendment to Existing Agreement with George Hills Company, Inc. for Liability Claims Adjusting and Administration Services to Extend the Term an Additional 12 Months through June 30, 2025.
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Meeting Date: April 29, 2024
Contact Person/Dept: Heather Baker/City Attorney’s Office
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 (04/24/2024)
Department Approval: Heather Baker, City Attorney (04/24/2024)
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RECOMMENDATION
Staff recommends the City Council (1) waive competitive bidding procedures pursuant to Culver City Municipal Code (CCMC) Section 3.07.075.F.3; and (2) approve an amendment to the existing agreement with George Hills Company, Inc. (George Hills) for liability claims adjusting and administration services to extend the term an additional 12 months through June 30, 2025.
BACKGROUND/DISCUSSION
To facilitate its liability claims management, historically, the City has used a third-party administrator (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, 2024. The City Attorney’s Office has been extremely satisfied with George Hills’ services over the last five 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.
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. CCMC Section 3.07.075.F.3, provides the City Council may waive, by a majority vote, bidding requirements if it is deemed to be in the City’s best interest and authorize a negotiated contract. Due to multiple staffing changes, temporary staff shortages and other time sensitive deadlines, the City Attorney’s Office has not been able to complete a Request for Proposals (RFP) process to date. In order to give City staff sufficient time to conduct an RFP process, while also completing other time sensitive matters, staff recommends the City Council waive the competitive bidding procedures in this case and authorize a 12-month extension of the existing agreement with George Hills.
FISCAL ANALYSIS
There is no change to the current fee structure associated with the extension of the agreement, as George Hills has agreed to extend their Fiscal Year 2023-2024 fee schedule through Fiscal Year 2024-2025. There are sufficient funds available in account #30913400.619800 to cover the fees for the remainder of Fiscal Year 2023-2024, and sufficient funding will be included in the proposed budget for Fiscal Year 2024-2025 to cover the additional 12-month extension.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Waive competitive bidding procedures pursuant to Culver City Municipal Code Section 3.07.075.F.3;
2. Approve an amendment to the existing agreement with George Hills Company, Inc. for liability claims adjusting and administration services to extend the term an additional 12 months through June 30, 2025;
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.