CITY COUNCIL STAFF REPORT
MEETING DATE: MAY 18, 2016
PREPARED BY: Michelle Katsuyoshi, Human Resources Manager
APPROVED BY: City Manager
TITLE
THIRD PARTY CLAIMS ADMINISTRATION FOR WORKERS' COMPENSATION
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution authorizing the City Manager to execute and subsequently administer a two-year agreement (FY 2016-17 and FY 2017-18) with Innovation Claims Solutions, Inc. to provide third party claims administration for workers' compensation in an amount not to exceed $69,080.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Preserving and cultivating public trust
2016 Focus Areas
Enhancing Our Services
REPORT NARRATIVE:
Periodically, the Human Resources Division conducts reviews of various Human Resources related vendor agreements to ensure that the City is receiving the best possible service at a reasonable cost. As part of this process, the City issued a request for proposal (RFP) to provide third party claims administration of workers' compensation services in February 2016. The City partnered with the City of Gilroy and jointly solicited proposals from qualified third party administrators for the administration of our self-insured workers' compensation program.
The City received proposals from three firms and they were all reviewed.
Provider
FY 16/17 Cost
FY 17/18 Cost
Total Cost
1.
Innovative Claims Solutions, Inc. (ICS)
San Ramon, CA
$34,380
$34,700
$69,080
2.
JT2 Integrated Solutions
Oakland, CA
$41,500 - $44,100
$42,750 - $45,500
$84,250 - $89,600
Plus a $10,000 implementation fee
3.
TriStar Risk Management
Rancho Cordova, CA
$55,898
$57,295
$113,193
Based on a combination of factors including ability to provide the necessary scope of services, professional experience, customer service, and overall cost to the City, Innovative Claims Solutions, Inc. (ICS) emerged as the most qualified proposal to provide the best service and val...
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