AGENDA TITLE:
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Adopt a Resolution to Ratify the Execution of the Professional Services Agreement for Liability Claims Third-Party Administrator with George Hills Company, Inc., for the Period of April 15, 2026 through November 30, 2028 (with Two Optional One-Year Extensions) (CA)
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MEETING DATE:
May 6, 2026
PREPARED BY:
Beverly Jensen, Risk Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution to ratify the execution of the Professional Services Agreement for Liability Claims Third-Party Administrator (TPA) services with George Hills Company, Inc., for the period April 15, 2026 through March 30, 2029, with two optional one-year extensions.
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BACKGROUND INFORMATION:
The City of Lodi is self-insured for liability claims up to $1,000,000 per occurrence and administers its liability program through a hybrid model consisting of internal claims oversight within the City Attorney’s Office and support from a third-party claims administrator. The program includes general liability, automobile liability, public officials’ errors and omissions, and employment practices liability.
The City has historically contracted with a third-party administrator to provide professional claims handling and investigation services, while litigation management is performed in-house. Although the current administrator has performed well, the lack of a comprehensive Risk Management Information System (RMIS) significantly limits the City’s access to its own claims data and reporting capabilities. As a result, the City’s ability to monitor trends, evaluate program performance, and make informed, data-driven decisions is constrained.
To address these limitations, the City issued a Request for Proposals (RFP) in July 2025 to identify a third-party administrator that can provide both high-quality claims administration services and a more robust RMIS platform, allowing the City direct access to its data and the ability to generate meaningful, timely reports to better manage risk and control costs.
Two firms responded to the solicitation. A panel consisting of staff from the City Attorney’s Office and City Clerk’s Office evaluated the proposals and conducted interviews with both respondents. Based on this process, the panel selected George Hills Company, Inc. as the firm best qualified to meet the City’s needs.
The City’s incumbent provider, DB Claims Services Group, Inc., has served the City for over two decades. However, as outlined in their response, they were unable to meet the City’s requested requirements, including enhanced claims system functionality, data access, and reporting capabilities necessary to support the City’s program moving forward.
PROPOSAL SUMMARY:
George Hills Company, Inc. is a California-based third-party administrator with over 70 years of experience and a strong specialization in public entity liability claims.
The City is recommending a full-service TPA model, under which George Hills Company, Inc. will provide comprehensive claims administration, litigation management, reporting, and RMIS services.
Key strengths include:
- Extensive experience with California public entity liability claims
- Dedicated and experienced claims team
- Strong litigation management practices
- Advanced RMIS platform with real-time reporting
- Integrated subrogation and cost recovery services
George Hills Company, Inc. will actively pursue cost recovery (subrogation) for damages to City assets, including property damage and related losses.
FULL-SERVICE JUSTIFICATION:
A full-service TPA model was selected over a hybrid approach to improve consistency, efficiency, and accountability in claims handling. Under the hybrid model, responsibilities were split between City staff and the TPA, which limited the City’s ability to fully leverage technology, reporting, and standardized processes.
Transitioning to a full-service model provides:
- Centralized claims handling and accountability
- Improved access to real-time data and analytics
- Enhanced litigation management coordination
- Reduced administrative burden on City staff
- Better alignment with industry best practices for similarly sized public entities
The recommended agreement transitions the City to a modern claims administration model, allowing for improved efficiency, consistency, and access to enhanced technology and reporting tools.
George Hills demonstrated a strong understanding of the City’s operational and legal environment, including coordination with the City Attorney’s Office, alignment with settlement authority thresholds, and integration with excess insurance reporting requirements.
FISCAL IMPACT:
The annual base cost for full-service claims administration is $62,500. The total not-to-exceed cost for the initial three-year term, including one-time implementation expenses, is $220,000.
FUNDING AVAILABLE:
Funding is budgeted in the Liability Insurance Fund.