SR-07-14-1964-8NCITY OF SANTA MONICA
INTER-DEPARTMENT MEMO ~_
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DATE: July 9, 1964 ~ tQ
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TOa City Council
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FROMe City Attorney
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SUBJECT e Increase in fee for Bay ~i!!_ j_ c 1964
Cities Adjustment Company ,„__,
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An examination of the work of the Bay Cities Adjustment
Company compels the conclusion that an increase in compensation
for its service to the City of Santa Monica in the self-insurance
program is justified.
Originally the total fee for all services amounted to
$900.00 a month. In February of 1956, an increase in the sum of
$150.00 was authorized and in October, 19b0, an additional in-
crease of $250.00 was authorized.
In the year 1959-60, immediately preceding the most
recent increase, the Bay Cities Adjustment Company handled 526
accidents. In the year 1963-b4, the Bay Cities Adjustment Company
handled 730 accidents and the trend, in view of the present law
relative to sovereign immunity is upwards, and it can be assumed
that the number of accidents handled during the next succeeding
years will continue to increase.
The services rendered by the Bay Cities Ac?.justment
Company has been excellent as is established by our very satis-
factory loss record and a substantial increase in the contact
price is warranted. It is therefore my recommendation that the
contract- with the Bay Cities Adjustment Company be amended to
increase the monthly fee to $1500.00 and that the Bay Cities
Adjustment Company, in addition to its present duties, be requ~rec?
to handle collections for damage to City property.
Respe~ly sued,
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R RT ~G. C~OCKINS
City Attorney
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