TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Lisa Jenkins, Human Resources Director
Briza Morales, Risk Manager
SUBJECT:Title
Consideration of a Resolution Approving a Five-Year Agreement with AdminSure, Inc. for Third Party Administration Services in Support of the Self-Insured General Liability Program for an Amount Not-To-Exceed $180,000 (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 21-0060
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve an agreement with AdminSure, Inc. (AdminSure) for an amount not to exceed $180,000 over five years for third party administration of general liability claims and litigation management.
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FISCAL IMPLICATIONS:
Funds in the amount of $30,000 are budgeted in the Fiscal Year (FY) 2021-2022 Risk Management Liability Fund. Funds for FY 2022-23 through FY 2025-2026 will be budgeted accordingly.
FY 21-22 $30,000
FY 22-23 $33,000
FY 23-24 $36,000
FY 24-25 $39,000
FY 25-26 $42,000
5-Year Total: $180,000
BACKGROUND:
The City administers a self-insured general liability program and maintains a self-insured retention (SIR) level of $500,000 per claim. In addition, the City purchases general liability insurance for coverage up to $25 million per claim, inclusive of the SIR, through a risk-sharing pool, Public Risk Innovation, Solutions, and Management (PRISM), formerly named the California State Association of Counties-Excess Insurance Authority (CSAC-EIA).
As a self-insured public entity, the City contracts with a third party administrator (TPA) to administer its general liability claims and assist with litigation management. The TPA is responsible for assigning the necessary personnel with the knowledge and skills to effectively and efficiently collaborate with claimants, attorneys, and staff in investigating all c...
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