CONTRACT 1960C Amendment CLOSEDORIGINAL
AMENDED LIABILITY SELF - INSURANCE SERVICE AGREER
Cua1RACT
This Amended Agreement is entered into this 6th day of May,
1997 between the City of El Segundo, a municipal corporation
( "City ") and Colen & Lee, Inc., a California corporation
( "Administrator ").
Whereas, Administrator has administered City's general and
automobile liability self - insurance programs since 1988 pursuant
to an agreement dated June 15, 1988 ( "Agreement ");
Whereas, City desires to retain the services of
Administrator to provide these services;
Now therefore, in consideration of the mutual promises and
covenants contained herein, the parties agree as follows:
1. Section 9 of the Agreement is amended to read as
follows:
"9. CONSIDERATION: The City agrees to pay a service
fee to the Administrator based on the monthly sum of
one thousand seven hundred fifty dollars ($1,750.00) as
compensation for ongoing services rendered under this
Agreement. Once a year thereafter, the Administrator
may increase or decrease the service fee by giving
written notice of the change to the City at least
ninety (90) days prior to the anniversary date of this
Agreement."
2. Unless expressly modified by this Amended Agreement,
all other provisions of the Agreement shall remain in full force
and effect.
Executed at El Segundo, California on the date first written
above.
CITY OF EL SEGUNDO
ATTEST
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APPROVED AS TO FORM:
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Mark D. Hensley, cit Attorney'
COLEN & LEE
By
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COLEN AND LEE 0)/ 0.( Ujj
1470 South Valley Vista Drive, Suite 230, Diamond Bar, CA 91765 Telephone (909) 861 -0816
Risk Management Services De)
RECEIVED
April 14, 1997 p ¢�
i APR 16 1997
Jim Morrison
City Manager
CITY OF EL SEGUNDO +)
350 Main Street
El Segundo, California 90245
Re: General Liability Claims Administration Fee
Dear Jim,
This letter will confirm our request for a fee increase.
Over the last several years our operating costs have increased
significantly. We realize that cities have faced financial difficulty, knowing that,
we have held the line on fee increases, as much as possible, for many years. To
reduce costs, we have streamlined our internal operations in all areas, including
freezing salaries. Unfortunately, we can no longer do so to stay financially viable
and continue to deliver high quality claims administration services. Last year
postage costs increased 10 %, paper and office supplies have increased by 18 %,
office rent by 8.8% and the U.S. Postal services is now contemplating another
6.25% raise in first class postage rates. In spite of this, over the last few years,
we have provided additional services, indexing cases through the Index System,
at our expense, as well as producing laser checks also at our expense,
eliminating check printing costs the city previously incurred.
Due to the reasons cited above, effective July 1, 1997, we are requesting
a $100.00 per month increase.
will be on vacation till April 30, 1997, if you have questions please call
me at that time.
Sincerely,
Bernard Colen
/BC
copy: Mark Hensley, Esq., City Attorney, Burke, Williams & Sorensen
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