COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Resources Department

DATE:

April 22, 2011

BOARD MEETING DATE:

May 10, 2011

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Donna Vaillancourt, Director of Human Resources

Scott Johnson, Risk Manager

SUBJECT:

Exercise Options to Extend the Agreement with Keith A. Hillegass Company, Inc.

RECOMMENDATION:

Adopt a Resolution authorizing the Human Resources Director to:

1.) Exercise options to extend the agreement with Keith A. Hillegass Company, Inc. for continued provision of administration and support services for the County’s self-insured general liability and auto liability claims for two one-year periods from July 1, 2011 through June 30, 2012 and July 1, 2012 through June 30, 2013.

2.) Execute contract amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

BACKGROUND/DISCUSSION:

On June 3, 2008, the County entered into a three-year agreement with Keith A. Hillegass Company (Hillegass) for claims administration and support. The company has worked with Risk Management and County Counsel to track, settle and report matters to our insurance carriers.

The County wishes to exercise its option to extend the agreement with Hillegass to provide claims administration including reporting incidents and claims to various insurance companies, settling automobile liability claims including physical damage, medical payments, and subrogation matters, and other claims tracking processes. Hillegas provides monthly reports and meets with the Risk Management staff to assure the proper adjudication of claims.

Hillegass was initially selected through a Request for Proposal process. The contractor was selected based on their extensive experience investigating and negotiating settlement on behalf of public agencies since 1967 and for their lowest pricing.

The contractor has assured compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. County Counsel has reviewed and approved the Resolution and Agreement as to form. Risk Management has reviewed the Contractor’s insurance certificate to ensure requirements are met.

Approval for this Agreement contributes to Shared Vision 2025 outcome of Collaborative Community by providing a comprehensive general liability and auto claims administration that will ensure cost-effective services.

Performance Measure(s):

Measure

FY 2009-10
Actual

FY 2010-11
Projected

Auto Claims Processed

265

278

Percent of claims, or notice of claims, with investigation commenced within 24 hours of receipt

100%

100%

FISCAL IMPACT:

The contract amount is increased by $236,000, for a maximum not to exceed amount of $560,000. This funding will cover services provided under the existing agreement in the amount of $12,000 and $112,000 for the year one option to extend and $112,000 for the second year option to extend. Funding for this contract amendment is covered by the Risk Management General and Auto Liability Trust Funds. There is no impact to the Net County Cost.