TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT
SUBJECT
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Award a Professional Services Agreement to George Hills Company, Inc. for General Liability Claims Administration.
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RECOMMENDATION
1) Award a Professional Services Agreement in the amount of $132,550 to George Hills Company, Inc. for a two-year term for third-party administration of general liability claims; 2) approve an additional appropriation of $25,000 to the Liability Workers Compensation Program (6305010); and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Requires an additional appropriation of $25,000 to the Liability Workers Compensation Program (6305010) from the available Fund 630 budget surplus from the FY 2026-27 Adopted Budget.
|
Estimated Annual Expenditures Per Fiscal Year |
|
FY 2026-2027 |
$52,050 |
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FY 2027-2028 |
$80,500* |
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Total Expenditures |
$132,550 |
*Note: this amount is exclusive of CPI adjustments and any claims-frequency adjustment (±10-25%) at months 7 and 13.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Revenue: |
Expenditure: 6305010-43535 |
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Transfer In: |
Transfer Out: |
BACKGROUND
The City of Chino has contracted with TRISTAR Risk Management for third-party general liability claims administration services since 2018. These services are an essential component of the City’s Risk Management Program and include the receipt and processing of general liability claims, coordination of investigations, collaboration with defense counsel and City staff, and preparation of reports and analyses to support effective claims management and informed decision-making.
As part of the Human Resources/Risk Management Department’s ongoing commitment to fiscal responsibility, operational efficiency, and due diligence, staff initiated a competitive procurement process to evaluate available service providers and ensure the City continues to receive quality claims administration services at the best overall value.
ISSUES/ANALYSIS
On June 25, 2026, the City issued Request for Proposal (RFP) No. 2026-0019 for Third-Party General Liability Claims Administration Services. The RFP provided an opportunity to assess the City's current service needs, evaluate industry practices, and compare qualified firms based on their experience, qualifications, service capabilities, and proposed costs.
In response to the solicitation, the City received proposals from three qualified vendors: AdminSure, TRISTAR Risk Management, and George Hills. The competitive process was undertaken to ensure the City's selection of a third-party administrator (TPA) reflects a thorough and objective evaluation of available options and supports the City's long-term operational and financial interests.
The proposals were evaluated by a panel of City staff representing Public Works, Police, and Human Resources/Risk Management. Each proposal was reviewed and scored using evaluation criteria established in the RFP, which included experience and qualifications, past performance references, proposed methodology and project approach, cost, and quality of responsiveness.
The final ranking was as follows:
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RANK |
CONSULTANT |
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1 |
George Hills |
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2 |
AdminSure |
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3 |
TRISTAR Risk Management |
Based on the evaluation results, George Hills and AdminSure received the highest scores and were invited to participate in interviews to further assess their qualifications, proposed service delivery methods, and ability to meet the City’s claims administration needs.
Following the evaluation process, George Hills was selected. This determination was based on George Hill’s extensive experience in public agency claims administration, their comprehensive and methodical approach to general liability claims investigation and resolution, and the resources they provide to effectively manage the City’s current claims.
Staff recommend awarding a professional services agreement for $132,550 to George Hills for third-party general liability claims administration services. Staff also recommend City Council approve an additional appropriation of $25,000 for FY 2026-27 to the Liability Workers Compensation Program.
Attachment: Professional Services Agreement with George Hills Company, Inc.