Item 211/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 6/10/2025
Subject: Award a contract to Carl Warren & Company for third-party liability claims administration services. (Cost: $480,000 for three years) (Action Item)
OBJECTIVE
For the City Council to award a contract to Carl Warren & Company to provide third -party liability claims administration services.
BACKGROUND
The Finance Department oversees the City’s self -insured general liability program, which covers tort and civil liabilities. Under this program, the City contracts with a third -party administrator (TPA) experienced in public entity liability to manage approximately 120 claims received annually. The TPA has the expertise to collaborate effectively with claimants, City staff, and the City Attorney’s Office, providing informed recommendations on claim disposition. Serving as the City’s representative, the TPA handles all aspects of claim investigation, adjustment, and processing for third -party monetary claims against the City.
Additionally, the TPA maintains a comprehensive database of all claims and loss history, offers legal support for litigated claims, represents the City in Small Claims Court, and, with City approval, processes settlements and payments to relevant parties.
DISCUSSION
Since 1986, the City has retained Carl Warren & Company to provide claims administr ation services. Their current contract is set to expire on June 30, 2025. To ensure the City continues to receive high-quality service at a competitive price, the City issued a Request for Proposal (RFP No. S1360). Two proposals were submitted and evaluated by staff from the Finance and Police Departments. The evaluation criteria included qualifications and experience, project approach, Risk Management Information System capabilities, and pricing. Based on this comprehensive review, Carl Warren & Company wa s rated as the top -scoring firm for the City’s claims administration services.
Item 211/2025
FINANCIAL IMPACT
The total cost of the three -year contract is $4 80,000, funded through the City’s Risk Management internal service fund.
RECOMMENDATION
It is recommended that the City Council:
Award a contract to Carl Warren & Company to provide third party liability claims administration services, in the amount not to exceed $480,000 for the three-year term of the contract, with an option to extend the agreement for two additional one-year terms, for a total performance period of five years; Authorize the City Manager, or designee, to execute the professional services agreement on behalf of the City and to make minor modifications as appropriate; and
Authorize the City Manager, or designee , to execute amendments to the agreement for any options to extend.
ATTACHMENT(S)
1. Consultant Agreement between Carl Warren & Company and the City of Garden Grove to provide third party liability claims administration services.