Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michelle Kuka, Human Resources Director
Zhanna Abuel, Deputy Director, Human Resources
Subject: Agreement with Keith A. Hillegass Company for Auto Liability, Medical Malpractice, and Property Liability Claims Administration
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Keith A. Hillegass Company to provide Third-Party Administrative services for the County’s auto liability, medical malpractice, and property liability claims for the term of January 1, 2027 through December 31, 2031, in an amount not to exceed $670,000.
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BACKGROUND:
Keith A. Hillegass Company (“Hillegass”) has served as a Third-Party Administrator (TPA) for the County since 1978 and has effectively administered the auto liability, medical malpractice, and property liability claims. Because of its long-standing relationship with the County, Hillegass is very familiar with County history, protocols and personnel. Hillegass also provides subrogation services to the County. Its familiarity with County policies and practices has allowed it to provide a comprehensive approach to claims investigation and handling.
DISCUSSION:
On April 20, 2026, Risk Management issued a Request for Proposals (RFP) to ensure the County continues to receive best value from its automotive, medical malpractice, and property third-party claims administrator. Five proposals were received and evaluated by a selection committee made up of County Risk Management and County Attorney’s Office employees. Hillegass was identified as the preferred choice both for its years of experience and for its competitive pricing. The committee recommended that the County select Hillegass as the vendor of choice for professional automobile liability, medical malpractice and property claims administration services.
Hillegass is very familiar with government claims, the Government Code, and the administration of claims, and has strong understanding of how the County works. Given the lines of business at issue for the County, it is important to have an experienced third-party administrator who understands the County’s systems, departments, asset disposal processes, and claims management system. Over the past 48 years, Hillegass has provided outstanding service to the County with high marks from all who have come into contact with it. Hillegass continues to protect the County’s assets by fairly adjudicating auto claims with the public and their insurance companies.
Hillegass’ rates also remain competitive. When combined with the quality of its work, Hillegass provides the best value to the County. Therefore, the Human Resources Department believes that it is in the County’s best interest to accept the selection committee’s recommendation and enter into an agreement with Hillegass for these claims administration services. The proposed agreement is for the term of January 1, 2027 through December 31, 2031 in an amount not to exceed $670,000.
The accompanying resolution contains the County’s standard provision allowing amendments of the County’s fiscal obligations by a maximum of $25,000 (in aggregate).
The resolution and agreement have been reviewed and approved by the County Attorney’s Office as to form.
PERFORMANCE MEASURE:
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Measure |
Metric |
|
Prompt claim acknowledgement and investigation initiation. |
Within 3 business days of new claim notification email. |
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Responsiveness to County inquiries. |
Within 1 business day. |
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Reserves set. |
Within 5 business days of new claim setup. |
COMMUNITY IMPACT:
Hillegass has established knowledge of the County's systems, departments and processes. Its institutional familiarity of the County, paired with its comprehensive approach to claims investigation and handling, ensures that claims against the County will be processed in a timely, fair, and accurate manner, which aligns with the County's goals for consistent standards of service.
FISCAL IMPACT:
There is no impact to Net County Cost. All costs associated with this contract are fully covered by the General Liability Trust Fund. The annual contract fee will remain constant each year for the duration of the five-year contract period with San Mateo County.