REQUEST FOR PROPOSALS

REQUEST FOR PROPOSALS Third Party Liability Claims Administration Services Proposals Due by 10 a.m. on Thursday, November 7, 2013 Submit Proposals to: City of Huntington Park City Clerk s Office Re: 6550 Miles Avenue Huntington Park, CA 90255 City of Huntington Park 6550 Miles Avenue Huntington Park, CA 90255 (323) 584-6230

INTRODUCTION The City of Huntington Park ( City ) is seeking a qualified claims administration firm ( Administrator ) to provide liability claims adjusting and management services for its selfinsured program, as described in the Scope of Required Services section of this Request for Proposals ( RFP ). The City s primary objective is to engage a firm that can provide proactive liability claims management, by using both quantitative and qualitative assessment methods. The firm is expected to work in conjunction with City staff in determining the best strategy for each case, which includes the use of cost-benefit analysis, benchmarking, and recent case history. Furthermore, the third-party administrator is expected to actively communicate with the City Attorney, ICRMA (litigation manager), and City staff; and to provide status reports and evaluation performance metrics on a regular basis. This RFP describes the required scope of services and the minimum information that must be included in the proposal. Failure to submit information in accordance with the RFP requirements may be cause for disqualification. INQUIRIES AND CONTACT INFORMATION All requests for clarification or interpretation of the scope of services or terms and conditions in this RFP must be submitted in writing and e-mailed to: Rocio Martinez, acting city clerk, rmartinez@huntingtonpark.org. All inquiries must be received no later than 10 a.m. on Wednesday, October 30, 2013. BACKGROUND The City of Huntington Park is located in Los Angeles County, 16.3 miles East of Los Angeles International Airport. The City encompasses three square-miles and has a population of approximately 58,624. The City employs 165 full-time and approximately 52 part-time employees with an estimated payroll of $13.6 million. The City is a full service city including Police, Public Works, Community Development, Parks and Recreation, Finance, Personnel & Risk Management, and Administration departments. The City has been self-insured for liability claims since 1980 and participates in a pooled Liability Program through the Independent Cities Risk Management Authority (ICRMA) Joint Powers Authority. The Program provides excess General Liability, Automobile Liability, Public Officials Errors and Omissions, Law Enforcement Liability and Employment Practices Liability coverage for liability claims above the member s retained limit. Each member has settlement authority for claims within its retained limit. Currently, the City has a retained limit of $250,000. The ICRMA Litigation Manager may provide oversight on a claim, particularly those claims which have the potential to exceed the pool limit. ICRMA has settlement authority as follows: General Manager: Up to $50,000 in excess of each member s retained limit Claims Committee: Up to $250,000 in excess of each member's retained limit Administrative Committee: Up to $500,000 in excess of each member s retained limit Governing Board: The balance up to $30 million The Administrator must effectively communicate with the City s defense counsel and ICRMA s Litigation Manager. The City has approximately 15-20 new liability claims each year. 1

TIME SCHEDULE October 23, 2013 October 30, 2013 November 7, 2013 November 12-14, 2013 December 2, 2013 RFP is released Deadline to submit written inquiries about RFP Proposals due Oral interviews (tentative) Contract awarded TERM OF AGREEMENT The term of the agreement shall be from December 2, 2013, and will continue for a period of three years, with an option to extend the term an additional two years. There shall be a provision within the contract providing the City the right to cancel without cause with 60 days written notice. The City reserves the right to cancel for cause with 30 days notice. INSURANCE AND BONDING REQUIREMENTS The Administrator must agree to indemnify, hold the City harmless, and defend the City from all claims and legal action for damages arising from their performance under the agreement. Prior to and during the performance of the contract, the Administrator shall maintain at its own expense the following minimum insurance coverage: 1. Commercial General Liability insurance in an amount no less than $1,000,000. 2. Business Automobile Liability insurance in an amount no less than $1,000,000 per accident. 3. Workers Compensation insurance meeting all statutory benefit requirements of the Labor Code of the State of California and Employers Liability insurance with a minimum of $1,000,000 per claim. 4. Professional Errors & Omissions insurance with a minimum of $1,000,000 limit per claim. 5. Crime bond covering the misappropriation of City funds. Insurance shall be primary with regards to any claim for damages arising out of the work performed under a service agreement. The City, its officers, agents, and employees shall be named as additional insured under the Commercial General Liability policy. The Administrator shall disclose its self-insured retentions on each of the required policies. The insurer shall provide 30 days written notice to the City regarding non-renewal, expiration or any changes in coverage. Appropriate insurance certificates and endorsements shall be provided to the City for review and approval prior to execution of a service agreement. All carriers must maintain an A.M. Best rating of A-, VII or better or otherwise meet the City s approval. RESERVATION The City reserves the right to revise or amend these specifications prior to the date set for opening proposals. Revisions and amendments, if any, will be announced via its website by an addendum to this proposal. If the revisions require additional time to enable proposing company or individual to respond, the City may postpone the opening date accordingly. In such case, the addendum will include an announcement of the new opening date. All addenda 2

must be attached to the proposal. Failure to attach any addendum may render the proposal non-responsive and cause it to be rejected. The City Council reserves the right to reject any and all proposals received, to take all proposals under advisement for a period not to exceed 90 days after the date of the opening, to waive any informality on any proposal, and to be the sole judge of the relative merits of the material and or service mentioned in the respective proposals received. The City reserves the right to reject any proposal not accompanied with all data or information required. This request for proposal does not commit the City to award a contract or to pay any cost incurred in the preparation of a proposal. All responses to this request become the property of the City. SCOPE OF REQUIRED SERVICES The City s primary objective is to engage a firm that can provide proactive liability claims management, by using both quantitative and qualitative assessment methods. The firm is expected to work in conjunction with City staff in determining the best strategy for each case, which includes the use of cost-benefit analysis, benchmarking, and recent case history. Furthermore, the third-party administrator is expected to actively communicate with the City Attorney, ICRMA (litigation manager), and City staff; and to provide status reports and evaluation performance metrics on a regular basis. The responsibilities of the claims adjusting service is divided into three categories: A. Claims administration B. Litigation management C. Reporting of claims activities The Administrator will follow ICRMA s adopted best practices to promote effective claims administration, litigation management and reporting of claims activities. A. Claims Administration The Administrator shall provide the City with sufficient qualified personnel, including at least one senior claims adjustor, to efficiently and effectively meet the responsibilities as defined below and any other duties incidental, or in addition, to those responsibilities. The senior claims adjustor shall have a minimum of three years experience in adjusting liability claims for public entities. The Administrator shall also provide a supervisor/account manager who shall oversee the servicing of the City s claims. The account manager shall have at least six years experience in adjusting liability claims, five of which involved adjusting liability claims for public entities. No adjustor or supervisor/account manager shall service the City s account without prior approval by the City. The responsibilities of the Administrator shall include, but not be limited to, the following: 1. Establish and maintain a file for each claim reported, to include a diary review system by both the examiner and supervisor; statistical data for each claim should be stored electronically and shall include all data required to comply with federal and state requirements including Medicare secondary payer laws and regulations. 2. Provide comprehensive investigative services; 3

3. Periodically, determine potential liability and establish, review, and update reserves for each reported accident and advise the City of any changes as they occur; 4. Notify ICRMA Litigation Manager of a claim as required by the Memorandum of Coverage (MOC) and coordinate with the City and Litigation Manager in the defense, settlement, and payment of claims; 5. Provide the City with a recommendation to accept or deny a claim within the statutory period in the California Government Code; 6. Provide immediate notification to the City and, if appropriate, the ICRMA Litigation Manager of offers to settle; 7. Obtain releases and other necessary forms from all appropriate parties upon settlement of a claim; 8. Upon City s request, assist with its preparation for appearances in small claims court; 9. Prepare and, where needed, obtain approval for issuance of checks, drafts, or other documents in the payment of claims with copies sent to the City; 10. Determine any potential to tender a claim to third parties and the feasibility of subrogation and, where appropriate, take appropriate steps to subrogate; 11. Promptly close each claim as soon as possible; 12. Make available time, files, and necessary staff for meetings with the City and ICRMA and attendance at applicable meetings (City Council, ICRMA Claims Committee or ICRMA Governing Board) for settlement authority, claim resolution strategy, and periodic claim audits; 13. Maintain complete payment records from an approved trust account, established by the Administrator on behalf of the City for the purpose of paying claim-related costs. B. Litigation Management The Administrator shall assist in the implementation and conform to the procedures pursuant to the Litigation Management Program. The duties of the Administrator shall include, but not be limited to: 1. Monitor defense counsel and assist in the implementation of the ICRMA s Litigation Management Policies and Procedures; 2. With input from City, assign the defense of litigated cases to the defense firm selected; 3. Assist defense counsel, at the direction of the City, in obtaining facts or circumstances of a claim, including assistance in answering interrogatories; 4. Supply and collect the case analysis and performance evaluation forms from the defense firms; 4

5. Review legal bills for accuracy, for compliance with the Litigation Management Policies and Procedures, and use of cost effective processes; and 6. Maintaining, in coordination with the City and the Litigation Manager, an evaluation file on each defense firm with respect to each defense assignment. C. Reporting of Claims Activity Provide a monthly statistical report for each line of coverage which shows all claims having activity, including claimant name, nature/type/cause of injury/loss, date of loss, status, loss/expense paid and reserved amounts, with monthly and year-to-date totals. A guide to any and all abbreviations used in any of the reports shall be provided to the City. Reports shall include all claims meeting the City s reporting criteria. The Administrator will provide a monthly payment register showing all payments issued, payee, voucher number, voucher date, and claimant name, if applicable. Upon the request of the City, the Administrator shall also provide special reports on claims, in detail or summary, sorted or queried by any, or any combination, of the fields at no additional cost. All reports shall be provided in a Microsoft Excel format. Investigation Services: Investigation services shall, at a minimum, include the following: 1. Take statement of facts from all claimants when not represented by an attorney or with the attorney s permission. Statements will be preserved by recording or by taking hand written signed statements. 2. As warranted, conduct further investigation of a claim and advise the City when further investigation is deemed warranted. Further investigation may include, but not be limited to, on-site investigation, photographs, interviewing witnesses, verification of damage or loss, taking measurements, obtaining maps/diagrams, obtaining medical releases, police reports, paramedics reports, marine department or other reports as may be necessary, obtaining building permits or other records as required. 3. If claimant is represented by an attorney, direct all communication to the claimant s attorney regarding the investigation, negotiation, and evaluation of any claims leading to a settlement as may be appropriate. 4. Report all Bodily Injury claims to the Index Bureau. Conduct Index Bureau searches for repeat claimants. Conduct additional Index Bureau searches at request of the City. 5. Obtain approval from the City before engaging the services of an outside vendor for an investigate assignment. 6. At the request of the City, investigate inverse condemnation claims. 7. Arrange, with prior City approval, for expert services including but not limited to professional photography, independent medical examinations, professional engineering services, and laboratory services. 5

PROPOSAL REQUIREMENTS The content of the proposal will be as follows: A. Cover Letter The cover letter will include the company name, address, and telephone number of the authorized contact person. The letter will indicate whether the proposer is an individual, partnership, or corporation. It must be signed by the individual, partner, or an officer or agent authorized to bind the firm. A corporation submitting a proposal may be required to furnish a certificate as to its corporate existence and satisfactory evidence as to the officers authorized to execute the contract on behalf of the corporation. B. Table of Contents C. Company Qualifications This section should include: 1. Knowledge and experience of the firm and its personnel in serving self-insured public entities in Southern California. (Limited to one page) 2. A description of at least two similar or related contracts under which the proposer is currently providing services. 3. Experience and qualifications of staff a) List the staff assigned, title, and responsibilities as it would relate to this engagement b) Include resumes of each staff assigned c) Identify appropriate certifications 4. At least three public entity client references, preferably located in Southern California. D. Work Plan This section should contain the proposer's work plan for providing the services required. The following work plan must, at a minimum address, the following: 1. General approach to providing claims administration services. 2. Confirmation the proposer will comply with the attached performance standards. Alternatively, the proposer must clearly specify how services will vary from these standards. 3. Process of reporting and ability to generate a variety of RMIS reports. Discussion should include the ability of the City to access claims information through Windowsbased or web-based programs. 4. Adjustors assigned: 6

E. Cost a) Identify adjustor b) Location of service c) Current case load 5. Indicate for each staff assigned the relative time they will spend on the City, i.e., will they be dedicated to the City or will they have additional client responsibilities. 6. Conversion of historical data from the current claims administration service provider, including retrieval of file. 7. Indicate whether the proposer will be willing to serve as the reporting agent for the City with regard to Medicare secondary payer laws/regulations and whether such service is included in the proposed contract pricing. Include a detailed, itemized annual service fee, clearly stating what services and expenses are included in the fee. Identify what services, if any, will require additional charges, fees or costs. Any costs not identified in the proposal shall not be reimbursed by the City. SELECTION PROCESS The City will review the proposals submitted. The firms whose proposals are selected as finalists for consideration may be asked to appear, at their own expense, before an evaluation panel to discuss their proposal. All proposals, whether selected or rejected, shall become the property of the City. SUBMITTAL REQUIREMENTS Quantity Three original copies of the proposal must be submitted. No faxed or electronically mailed versions will be accepted. Envelopes must state the company name. Deadline for Submittal Proposals must be received by the City Clerk s office by: 10 a.m. on Thursday, November 7, 2013 Please remit the documents to (address envelopes exactly as follows): City of Huntington Park City Clerk s Office Re: 6550 Miles Avenue Huntington Park, CA 90255 7