HomeMy WebLinkAboutItem 2n: Contract with AdminSure for Third Party Administrator Services for Worker's Compensation oF A Rc
°R ` / _t o,,
r7:71;
t t 1, 9U
1 M rt S. 19U3
op� 4e • STAFF REPORT
Administrative Services Department
DATE: June 7, 2011
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Prepared by: Michael A. Casalou, Human Resources dministrator
SUBJECT: Agreement for Third Party Administrator Services for Workers'
Compensation Claims
Recommendation: Authorize the City Manager to enter into a 3 -Year
contract with AdminSure Inc. for Third Party Administrator Services for
Workers' Compensation in the amount of $288,552
SUMMARY
Staff is recommending the City Council authorize the City Manager to enter into a 3-
Year contract with AdminSure Inc. for Third Party Administrator Services for Workers'
Compensation in the amount of $288,552; $95,232 for FY 2011 -12, $96,180 and
$97,140 for fiscal years 2012 -13 and 2013 -14.
BACKGROUND
The City of Arcadia operates a self- funded workers' compensation insurance program
and requires the services of a third party administrator (TPA) to handle the day to day
operations of the City's systems.
The scope of services for the workers' compensation program include tracking claim
information, setting and updating reserves, arranging for investigations, medical
treatment, monitoring disability status, and auditing and paying medical bills. Further,
the City's TPA ensures that the City maintains compliance with the requirements of
changing workers' compensation law. In -house staff does not have the capacity or the
expertise to properly manage this program. As a result, the City has always contracted
for this professional service.
DISCUSSION
The City entered into its current agreement for this service with AdminSure Inc. on April
1, 2010. This agreement is set to expire June 30, 2011. At the time the City entered
into this agreement, the City's was able to "piggy- back" on the bid and the subsequent
Mayor and City Council
June 7, 2011
Page 2 of 2
contract that was negotiated by the City's joint powers authority for workers'
compensation and liability (California Insurance Pool Authority /CIPA).
As the current agreement was set to expire June 30, 2011, CIPA (on behalf of
participating member cities) initiated negotiations earlier this year with AdminSure Inc.
and was successful in getting a favorable three year agreement. The proposed
agreement provides for no increase in fees the first year of the contract and a modest
1% increase in the second and third years. The proposed agreement runs through
June 30, 2014, and at such time it can be renewed, renegotiated or re -bid.
FISCAL IMPACT
Claims administration fees will not increase in Fiscal Year 2011 -12 and are included in
the proposed FY 2011 -12 Budget.
RECOMMENDATION
It is recommended that the City Council:
Enter into a 3 -Year contract with AdminSure Inc. for Third Party Administrator
Services for Workers' Compensation in the amount of $288,552; $95,232 for FY
2011 -12, $96,180 and $97,140 for fiscal years 2012 -13 and 2013 -14.
APPROVED:
Donald Penman, City Manager