HomeMy WebLinkAboutItem 2g - Third Party Administrator for Liability and Workers' Compensation Claimsm<o~po~N~.a 1
.1 uNU.t lYV1
~~++nity of STAFF REPORT
Administrative Services Department
DATE: August 18, 2009
TO: Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
Prepared by: Michael A. Casalou, Human Resources Administrator
SUBJECT: Agreements for Third Party Administrator Services for Liability
Workers' Compensation Claims
Recommendation: Authorize the City Manager to extend the agreements
with AdminSure for Third Party Administrator Services in the amount of
$96,780.00
SUMMARY
Staff is recommending the City Council authorize the City Manager to extend the
agreements for Third Party Administrator Services with AdminSure.
BACKGROUND
The City of Arcadia operates a self-funded workers' compensation insurance and
liability program and requires the services of a third party administrator to handle the
day to day operations of the City's systems. AdminSure (formally known as Colen and
Lee) has successfully administered the City's programs since 1985.
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,
AdminSure 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.
As with workers' compensation, the City's liability program has also been handled by
AdminSure. Scope of services for liability include screening accident reports,
establishing files and setting reserves on new cases, maintain contact with claimants or
their attorneys, determine fault, evaluating damages and recommending settlement
value, negotiating settlements and initiating payment of settlements and expenses and
litigation management.
Mayor and City Council
August 18, 2009
Page 2 of 2
DISCUSSION
A contract renewal was completed in 1990 for liability third party administration and
1997 for workers' compensation administration. The term for both agreements with
AdminSure continues in effect until terminated by the cancellation provisions in the
contracts. Since it has been a number of years utilizing the same vendor for this
professional service, staff anticipates requesting bids in the 2009-10 fiscal year. Until
then, it is recommended the City Council authorize a contract extension with AdminSure
for these services.
FISCAL IMPACT
The fees charged by Adminsure for Liability Administration have only increased by 5%
since 1991 (currently $1,627.50/month) and Workers' Compensation Administration
fees (currently $6,437.50/month) have only increased by 3% since 2003. The annual
fees remain unchanged for fiscal year 2009-10 for a total cost of $96,780.00. Adequate
funds are budgeted in the 2009-10 Budget for these services.
RECOMMENDATION
It is recommended that the City Council:
Authorize the City Manager to extend the agreements with AdminSure for
Third Party Administrator Services for Liability and Workers' Compensation
claims in the amount of $96,780.00.
APPROVED:
Donald Penman, City Manager