CITY COUNCIL STAFF REPORT
MEETING DATE: SEPTEMBER 2, 2015
PREPARED BY: Michelle Katsuyoshi, Human Resources Manager/Administrative Services APPROVED BY: City Manager
TITLE
CONTINUANCE AND THIRD AMENDMENT TO AGREEMENT WITH INNOVATIVE CLAIM SOLUTIONS, INC. TO PROVIDE THIRD PARTY CLAIMS ADMINISTRATION FOR WORKERS' COMPENSATION
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt Resolution authorizing the City Manager to execute and subsequently administer a Continuance and Third Amendment to Agreement with Innovative Claim Solutions, Inc to provide third party claims administration for workers' compensation in an amount not to exceed $169,912 in the aggregate.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Fostering a positive organizational culture
REPORT NARRATIVE:
Innovative Claim Solutions, Inc (ICS) has been providing third party claims administration for workers' compensation to the City since July 2011 and during the last four years of the contract, ICS has administered several lengthy and complex workers' compensation case settlements that resulted in City Council review and approval. ICS has expended significant resources and continues to educate and inform Human Resources, department Workers' Compensation liaisons, and City Attorney staff on the particulars of numerous other cases, the general aspects of workers' compensation administration, and case law.
Due to an increase in the City's overall number of open indemnity claims, ICS is asking for a 3% increase for FY 2015/2016 which would bring the annual fee to $37,039. This equates to a $1,079 annual increase. Staff believes that the City is receiving substantial value for a third party administrator contract at this dollar level and recommends that Council approve the attached Continuance and Third Amendment to Agreement increasing the contract amount to $37,039.
Additionally, staff recommends issuing...
Click here for full text