CITY COUNCIL STAFF REPORT
DATE: JUNE 24, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENTS TO CONTRACT SERVICE AGREEMENTS
WITH KEENAN & ASSOCIATES FOR THIRD-PARTY LIABILITY CLAIMS
ADMINISTRATION FOR TWELVE MONTHS FOR AN AMOUNT NOT TO
EXCEED $66,674 AND INSURANCE BROKERAGE SERVICES FOR SIX MONTHS FOR AN AMOUNT NOT TO EXCEED $50,000
FROM: Scott C. Stiles, City Manager
BY: Jeremy Hammond, Deputy City Manager
SUMMARY:
This action will approve amendments to the contract service agreements with Keenan & Associates for both third-party liability claims administration and insurance brokerage services.
RECOMMENDATION:
1. Approve amendment to contract services agreement with Keenan & Associates (Attachment A) for a twelve-month term to provide third-party liability claims processing administration in an amount not to exceed $66,674, for a revised contract amount not to exceed $491,674.
2. Approve amendment to contract services agreement with Keenan & Associates (Attachment B) for a six-month term to provide insurance brokerage services in an amount not to exceed $50,000, for a revised contract amount not to exceed $355,500.
3. Authorize the City Manager or his designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment C) dated March 31, 2026, Keenan & Associates is registered in the state of California as a subsidiary of Assured Partners, Inc.
City Council Staff Report
June 24, 2026 -- Page 2
Amendment to Agreements with Keenan & Associates
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BACKGROUND:
The City has engaged the services of Keenan & Associates (Keenan) since 2018 to provide third-party liability claims administration (TPA) services to the City. Additionally, from 2008 to present, Keenan has also provided professional insurance brokerage services to the City.
In 2020, the City conducted a competitive request for proposals process, which resulted in the City awarding Keenan a five (5) year contract beginning July 1, 2020. That agreement with Keenan TPA services expired on June 30, 2025, and was extended for a one-year term through June 30, 2026.
STAFF ANALYSIS:
Under Palm Springs Municipal Code section 7.03.09, a professional services contract may be awarded without the normal RFP process when it is determined that an unusual or unique situation exists, in that due to experience and expertise demonstrated in prior contracts with the City a particular vendor is uniquely qualified for a particular task, that makes the application of the requirements of a competitive sealed proposals contrary to the public interest.
In this case, Keenan is considered one of the leaders in the provision of liability claims TPA services to the public sector in California. The City has been pleased with the services provided by Keenan to date. Keenan has served as the City’s insurance broker since 2008 and has provided TPA services since 2018. This has helped the City in the past with difficult insurance coverage issues. Having one entity provide both services assists the City if an insurance claim needs to be made, since the same entity has already thoroughly investigated the claim against the City and is already familiar with the nuances of the case. As such, there is a significant benefit to the City in retaining Keenan as the City’s TPA administrator and insurance broker.
Keenan is currently negotiating and will eventually bind the City’s insurance portfolio for FY 26-27. That effort continues as Keenan works to finalize policies, update statements of value and issue updated certificates of insurance for various City projects. Keenan also is currently involved and administering a substantial number of liability claims on behalf of the City and it would be difficult to transition these to a new vendor in the middle of the claim.
It was previously anticipated that in January 2026, the City would issue a new RFP to solicit bids for these services to confirm the City is receiving the highest quality value and quality services. As Keenan is currently procuring insurance policies for FY 26-27, it would be imprudent and potentially have a negative impact if a new vendor was selected to be effective July 1, 2026. Although new policies are effective at the beginning of the Fiscal Year, continued servicing of the applications and final binding of the policies sometimes goes past July 1. If a new vendor were selected, there is a potential of disruption in City Council Staff Report
June 24, 2026 -- Page 3
Amendment to Agreements with Keenan & Associates
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insurance coverage as well as problems with current claims processing. Extending the contract through December 31 allows Keenan to negotiate, bind and service the policies through the end of the calendar year.
The TPA agreement is recommended to be extended through the end of the policy year to coincide with the policy year with our excess insurance provider Safety National. Our agreement with Safety National allows the insurer an opportunity to approve any third party administrator changes with a 30-day notice. Safety National has indicated they approve TPA changes that coincide with their policy year, not mid-year. Accordingly, the Keenan liability claims TPA should be extended through June 30, 2027. These services will also be competitively bid as part of the Brokerage Services RFP that will be issued later this year.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a "Project" does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council Strategic Plan Foundation of Financial and Organizational Well-Being.
FISCAL IMPACT:
Funding has been allocated for these purchases and is available in the current fiscal year in Risk Management accounts 540-1090-50085 and 540-1095-50085.
REVIEWED BY:
Department Director: Jeremy Hammond
City Manager: Scott Stiles
ATTACHMENTS:
A. Contract Services Agreement Amendment No.3 Keenan & Associates third-party liability claims processing administration
B. Contract Services Agreement Amendment No.2 Keenan & Associates insurance brokerage services
C. Business Disclosure