July 2, 2024
Human Resources
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager – Internal Services
Sharrone Taylor, Director of Human Resources
Subject:
Agreement with George Hills Company, Inc.
FINANCIAL IMPACT: The total fiscal impact is $220,000 per fiscal year for the next three fiscal years (FY 24-25, FY 25-26, FY 26-27)
for a total not to exceed $660,000 ($220,000 per fiscal year) with two optional one-year extensions at the rate of $220,00 per year. The expenditure is budgeted in the FY 24-25 budget and will be budgeted in future fiscal years at the appropriate amount.
PREVIOUS COUNCIL
ACTION:
Not applicable
STATEMENT OF THE
ISSUE:
The City Council’s approval is required for the three-year contractual agreement with Geroge Hills Company, Inc.,
which includes an optional two-year extension.
RECOMMENDED ACTION:
APPROVE a three-year (Fiscal Year 24-25 – Fiscal Year
26-27) contract with two optional one year extensions
with George Hills Company, Inc. to provide third-party
administration of general liability claims received by the City in an amount not to exceed $ 660,000 – Human
AGENDA
REPORT
July 2, 2024
Resources Department (Nickie Mastay 510-620-6609/
Sharrone Taylor 510-620-6803).
DISCUSSION:
The City's general liability insurance program has a Self -Insurance Retention (SIR) of $750,000. Subsequently, the City participates in a pooled insurance program with the California Joint Powers Risk Management Authority (CJPRMA). The selection of a claims- adjusting firm or third-party administrator (TPA) is the responsibility of the City.
In May 2024, staff issued a Request for Proposals for a third party claims administrator.
During the evaluation of the proposals, staff considered six factors delineated below:
Ability to provide all services outlined in the Request for Proposal Cost of services
Record of performance, including control of costs, quality of work, and completion of tasks promptly.
Experience of the firm and expertise of its personnel assigned to the City’s account in providing services.
Concept and proposed solutions, including responsiveness to the RFP, completeness, and thoroughness of the proposal
Additional services available from firms that are deemed to be of benefit to the City The city received two proposals, George Hills Company, Inc. (the incumbent) and Carl Warren and Company, both reputable firms in the industry. A board of three raters convened to review and evaluate the submissions. Their scores were averaged and George Hills Company, Inc. emerged as the top scorer due to their demonstrated competence spread over several benchmarks, including the capability to provide services to the city, robust reporting process, and adequate quality control. Please see rating matrix below:
Vendor Rater 1 Score Rater 2 Score Rater 3 Score Average Score Carl Warren and
Company
83 85 79 83
George Hills
Company, Inc.
91 92 85 89.33
July 2, 2024
RECOOMMENDATION:
Considering the City has been satisfied with the incumbent’s performance over the last several years, staff recommends entering a new three- year contract with George Hills Company, Inc. for $220,000 per year with an option to extend two times for one year per extension.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Request for Proposal (RFP) for general liability claims administration