08-16-2022 CC RPT 33 - Laserfiche WebLink

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Sedgwick Claims Management Services, Inc. for Parada Claims Administration • Page 2 In May 2021, a settlement was reached by the City and Parada plaintiffs. The settlement required the City to place a measure on an upcoming ballot that asks voters to authorize the Utility Fund Transfer to the General Fund to pay for City services unrelated to the utility. On July 20, 2021, the City Council voted 5-2 to place the Council's amendment, The Service Protection Measure (Measure C), on the November ballot. On November 2, 2021, Riverside residents voted and passed Measure C. Measure C- County Registrar of Voters as of November 10, 2021 Yes No 16,112 54.5% 13,446 45.5% Total 29,558 Measure C, also referred to as the "City of Riverside Services Protection Measure", will ensure that city officials can protect essential city services such as 9-1-1 emergency responses, fire and paramedic services, public safety, and street repairs, while addressing homelessness and continuing our investments in youth, parks, libraries, and senior programs. Per the Conditional Settlement Agreement and Release notice, the City must "refund to customers of its electric utility an amount to $24,000,000 less the amount awarded to Plaintiff's counsel in fees ($2,240,000) and less the incentive payments (two service awards of $5,000) for a total of $21,750,000 owed to utility customers". The City's Risk Management division is leading all efforts to ensure the City complies with the Parada settlement terms. DISCUSSION: The City released a Request for Information (RFI) on September 20, 2021. The purpose of RFI 2128 was to gather general industry knowledge and best practices to better understand servicing options in the claims administration industry. The City received three responses by October 12, 2021. The City then asked the each of the three claims administration firms to give the City a brief presentation on the information they presented in their respective RFI responses to further understand industry servicing options. The City asked each of the participants to provide a proposal detailing information on their experience with similar type settlement agreements, familiarity with public entities, resources, and a demonstration of any accessible software applications available with the ability to track varying claims activity. RFP 2207 was released to the three firms on May 27, 2022, with proposals being due on June 10, 2022. All three firms submitted proposals. Proposer Proposer City Proposed Cost Evaluation Scores (5 Year Term) (Average) Sedgwick Claims Management Services Inc. Carl Warren & Company LLC Memphis, TN $282,900 84.30 Santa Ana, CA George Hills Company Rancho Cordova, CA $1,212,602 73.23 $1,302,500 68.20