CONTRACT 7609 Professional Services AgreementAgreement No. 7609
GENERAL LIABILITY PROGRAM SERVICES
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is entered into this 1st day of July, 2026 between the CITY OF EL
SEGUNDO, hereinafter referred to as the "City," and ADMINSURE INC., a California corporation,
hereinafter referred to as the "Administrator."
WHEREAS, the City has undertaken to self -insure its general and auto liability; and
WHEREAS, the Administrator is engaged in the business of administering general and auto
liability self-insurance programs; and
WHEREAS, the City and Administrator entered into an agreement in 2018 under which
Administrator agreed to manage the City's liability claims as its third -party administrator (TPA),
operating under an agreement with the City's insurance pool, ICRMA;
WHEREAS, on July 1, 2026, the City will transition its insurance pool membership from
ICRMA to CIRA; accordingly, any claims made as of July 1, 2026, will be managed by CIRA's
designated TPA;
WHEREAS, regarding claims made before or on June 30, 2026, the City desires to continue
using Administrator, and Administrator has agreed to continue to administer a general and auto
liability self-insurance program for such claims, hereinafter referred to as the "Program," for the City;
NOW, THEREFORE, the City hereby retains the services of the Administrator and the
Administrator agrees to perform services for the City under the terms and conditions of this Agreement.
1. TERM: This Agreement shall become effective as of July 1, 2026 and shall continue in
effect unless terminated by the cancellation provision set forth herein.
2. SCOPE OF SERVICES: The Administrator agrees to supervise and administer the Program
for the City and shall act as the City's representative in connection with the investigation, adjustment
and administration of all general and auto liability claims asserted by third parties against the City. The
administrator further agrees to provide the City, during the term of this Agreement, all services more
particularly set forth herein.
3. CONFERENCES: The Administrator shall meet with City staff as needed to discuss claims
and general procedures.
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4. CLAIMS ADMINISTRATION: The Administrator agrees to provide supervisory,
administrative and adjustment services on liability claims asserted against the City only for such claims
that either (a) have been made before or on June 30, 2026 and are in an open status as of the date of
this agreement, or (b) were made before or on June 30, 2026, and are currently closed but are later
reopened, regardless of when the claim is reopened. This agreement does not apply to any claims made
as of July 1, 2026. Such services shall include:
A. Screening accident reports for potential claims and initiating contact with claimants.
B. Establishing electronic claim files and setting reserves on new cases.
C. Maintaining contact with claimants or their attorneys.
D. Deciding upon and initiating a proper course of investigation.
E. Periodically reviewing cases for disposition and proper reserving.
F. Determining fault.
G. Seeking contribution or indemnity from responsible third parties.
H. Evaluating damages and determining settlement value.
I. Preparing written reports when recommending settlement in the excess of the
Administrator's authority or when recommending rejection or denial of a claim.
J. Negotiating Settlements.
K. Taking releases from claimants.
L. Initiating payment of settlements and expenses.
M. Sending denial letters to claimants or their attorneys when appropriate.
N. Notifying the City's excess liability insurers of all claims which exceed or may exceed the
City's self-insurance retention, maintaining liaison between the City and its excess liability insurers on
matters affecting the adjustment of such claims and arranging for reimbursement to the City of losses
in excess of its self-insurance retention.
O. Closing files when appropriate to do so.
5. INVESTIGATION: The Administrator agrees to provide investigative services as follows:
A The Administrator shall conduct office investigation, through the mail, email, and over the
phone, which shall include: obtaining written questionnaires or telephone recorded statements from
City employees, claimants and witnesses; obtaining police and other official reports; obtaining medical
reports from claimants, their doctors or their attorneys; obtaining wage loss information from claimants,
their employers or their attorneys; and all other investigation that can be handled effectively from the
office.
Agreement No. 7609
B. When field investigation is needed to properly handle general and auto liability claims, the
Administrator shall conduct appropriate field investigation, which includes photographs and/or
diagrams of accident scenes; canvassing for witnesses; meeting with claimants, City employees or
witnesses to obtain detailed information; and all other investigation that is best handled in the field.
6. LITIGATION MANAGEMENT: The Administrator agrees to provide the following
services with regard to litigated claims:
A Upon service of a lawsuit against the City with respect to a liability claim, the
Administrator shall contact the City for referral of the case to a defense attorney who is acceptable to
and approved by the City.
B. The Administrator, in coordination with the City, shall supervise and confer with defense
attorneys during all stages of litigation to assist attorneys in preparing cases and to ensure optimal return
on legal effort.
C. The Administrator shall audit and approve all legal expenses.
D. The Administrator shall continue all claims administration and investigation functions.
E The Administrator shall attend all settlement conferences, arbitrations, mediations and
Small Claim Court hearings on behalf of the City.
7. STATISTICAL REPORTS: The Administrator agrees to provide, during the term of this
Agreement, the City with a monthly statistical report showing the status of each claim reported to the
Administrator, the details of each claim, the remaining reserves for each claim and the details of all
claims' payments made to date and during the month. This report shall be delivered to the City within
fifteen (15) days of the close of each calendar month.
8. INFORMATION SYSTEMS: The Administrator shall maintain computerized
information systems that:
A. Capture all claim and transaction data associated with the Program.
B. Allow access by City staff via the internet.
C. Comply with all Federal and State regulatory reporting requirements.
D. Provide standard and ad hoc reporting for the City.
9. RECORDS: The Administrator shall establish and maintain electronic claim files, claim
logs, transaction documents and all other records associated with the Program. These records shall be
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the property of the City and shall be available, on five (5) days' notice, for review or for transfer to
another custodian. Unless this Agreement is cancelled, hard closed files, if any, shall be stored by the
Administrator for five (5) years and shall thereafter become the responsibility of the City. Upon
cancellation of this Agreement, the City shall be responsible for maintaining and storing all records. The
Administrator shall not dispose of or destroy hard records, if any, without the prior, written authorization of the
City.
10. CONSIDERATION: The City shall pay the Administrator $123 per open claim, per month
($500 minimum monthly fee) for services rendered under this Agreement with a 3% increase each
subsequent year. Subsequent fiscal years shall automatically renew from year to year, subject to
termination by either party during the life of this Agreement upon at least ninety (90) days written
notice.
11. ALLOCATED EXPENSES: The City agrees to pay for all allocated expenses which
include but are not limited to defense attorneys, legal costs, police and other official reports, remote
photocopy, professional photographers, map makers, film makers, medical experts, engineering
experts, accident reconstruction experts, process service, messenger service, court reporters, translators,
economists, vocational rehabilitation experts, structured settlement consultants, Medicare Set Aside
consultants, and Administrator's subrogation services, if any, et cetera.
12. INDEMNIFICATION: The Administrator shall indemnify, hold harmless, and defend the
City from all claims, legal actions, losses, expenses, injuries or damages arising out of the
Administrator's negligence or intentional wrongdoing incident to the performance of this Agreement.
13. INSURANCE: The Administrator shall:
A. Maintain in force at all times General Liability Insurance in the amount of One Million
Dollars ($1,000,000) per occurrence, combined single limit.
B. Maintain in force at all times Professional Liability Insurance in the amount of One Million
Dollars ($1,000,000) per occurrence, combined single limit.
C. Maintain in force at all times a Fidelity Bond in the amount of One Million Dollars
($1,000,000).
D. Maintain in force at all times Workers' Compensation Insurance for employees of the
Administrator, as required by law.
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E. Notify the City, in writing, thirty (30) days prior to any cancellation or reduction in the
above coverage.
F. Provide evidence of the above coverage to the City throughout the term of this Agreement.
14. NOTICES: All notices, demands, requests, or approvals which are required under this
Agreement, or which either the City or the Administrator may desire to serve upon the other, shall be
in writing and shall be conclusively deemed served when delivered personally, or forty-eight
(48) hours after the deposit thereof in the United States Mail with postage pre -paid.
15. CANCELLATION: This Agreement may be cancelled by either party giving to the other,
in writing, notice of its intention to cancel this Agreement at least ninety (90) days prior to the date of
termination. Upon the date of termination of this Agreement, or the date on which records are
transferred to another custodian, whichever occurs first, the Administrator shall no longer be
responsible for further administration of the City's claims.
16. PARTIAL INVALIDITY: If any provision of this Agreement is held by a competent court
to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force
and effect.
17. GOVERNING LAW: The validity of this Agreement and of any of its terms and
provisions shall be interpreted pursuant to the Laws of the State of California.
18. INTERPRETATION: The terms and conditions of this Agreement shall be construed
pursuant to their plain, ordinary meaning and shall not be interpreted against the maker.
19. ATTORNEY FEES: If any action at law or equity, including an action for declaratory
relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall
be entitled to reasonable attorney fees in addition to any other relief to which it may be entitled.
20. ASSIGNMENT: The Administrator shall not assign, sublet or transfer by operation of law
or otherwise any or all of its rights, burdens, duties or obligations of this Agreement without the prior,
written consent of the City.
21. CONFLICT OF INTEREST: The Administrator agrees not to accept any employment
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during the term of this Agreement from any other person, firm or corporation if that employment is
likely to result in a conflict between the interests of the City and the interests of any third parties.
22. ENTIRE CONTRACT: This instrument contains the entire Agreement between the parties
relating to the rights herein granted and obligations herein assumed. Any oral representations or
modifications concerning this instrument shall be of no force or effect. Subsequent modifications shall
be made in writing with the agreement of both parties.
IN WITNESS HEREOF, the parties have executed this Agreement as of the effective date
stated on page one.
CITY OF EL SEGUNDO
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Rebecca Redyk,
Director of Human Resources &
Risk Management
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Susan Truax, City Clerk
APPROVED AS TO FORM:
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Mark Hensley, y Attorney
Insurance reviewed by:
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Risk Manager
Mary Sla ,on 13rerin g
ADMINSURE, INC.
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Alithia Vargas -Flores
President
Taxpayer ID No. 95-3773318
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