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Agreement with AdminSure for General Liability and Workers' Compensation Claims
<br />September 4, 2018
<br />Page 3
<br />AdminSure's proposal offered an overall lower annual program cost. It has agreed to reduce th&
<br />its proposed fee by 25.5% if administering both the City's Workers' Compensation and General
<br />Liability Programs. This good faith gesture demonstrates Admin'Sure's ability to provide
<br />professional services for a competitive fee as well as its commitment to establishing a strong
<br />business relationship with the City of Santa Ana. Inclusive in the cost, and in tandem with Risk
<br />Management Division staff, AdminSure, Inc. will provide extensive and ongoing training for City
<br />staff as well as development and implementation of processes to mitigate exposure to costly issues
<br />that can be foreseen and all mandated reporting.
<br />Utilizing a TPA will require less personnel in the claims adjusting process; however, no current
<br />employee will be displaced by this change. This will enable the Human Resources Department to
<br />adjust its focus and utilize staff in more effective ways and areas of service. The restructure will
<br />redistribute personnel costs as well as eliminate additional direct vendor costs.
<br />The recommended term of this Agreement is for a period of three ..(3) years, commencing on
<br />September 4, 2018 and terminating on August 31, 2021, with an option to extend twice, by mutual
<br />agreement of the Parties, for a period up to four (4) additional years, two (2) and two (2). If
<br />extension is recommended, it will be brought back to City Council for additional approval at that
<br />time. The Agreement shall automatically renew from year to year subject to termination by either
<br />party during the life of the Agreement. The City may terminate this agreement at any time, without
<br />cause, with ninety (90) days written notice. The City may terminate this agreement with cause with
<br />thirty (30) days written notice.
<br />Industry standard/best practices favor longer term agreements, thus the City and its employees
<br />would be better served by a longer term agreement, generally three to five years with three-year
<br />to five-year optional extensions. However, results and costs will still be reviewed on a constant
<br />basis with a full review each year to analyze savings and ensure that the City is still receiving the
<br />most competitive terms. Staff will negotiate any changes accordingly.
<br />ADMINSURE, INC. - FEE STRUCTURE
<br />• Option of second term of Two additional years if the City so chooses. (A potential total of 7
<br />years)
<br />25D-3
<br />WORKERS'
<br />WORKERS
<br />I I GENERAL
<br />GENERAL
<br />!
<br />COMBINED I
<br />COMBINED
<br />COMPENSATION
<br />COMPENSATION
<br />LIABILITY
<br />i.
<br />LIABILITY
<br />MONTHLY
<br />ANNUAL
<br />MONTHLY FEE
<br />! ANNUAL FEE
<br />I MONTHLY
<br />!
<br />ANNUAL ,
<br />FEES I
<br />FEES
<br />--'
<br />I- FEE-----�----
<br />j $14,600
<br />FEE -'-''
<br />$175,200 i
<br />----
<br />$56,725
<br />-'
<br />$680,700
<br />YEAR 1 _ $42,125 $505,500
<br />YEAR 2
<br />$43,389
<br />$520,665
<br />$15,081180,456
<br />1,
<br />I- $__60,180
<br />$701,121
<br />YEAR 3
<br />_
<br />$44,690
<br />� $536,285
<br />15,489
<br />$15,954
<br />II
<br />$185,870 �
<br />1, -
<br />$191,446
<br />$60 180_ �
<br />_
<br />,$722,155__
<br />'
<br />YEAR 4 $46,0311$�-
<br />$552,373
<br />_OPTIONAL
<br />OPTIONAL YEAR
<br />$47,412
<br />_1L$16,
<br />$
<br />_$61,985_'`$743,819
<br />$63,844
<br />$766,134
<br />_$568=945
<br />_
<br />_)
<br />• Option of second term of Two additional years if the City so chooses. (A potential total of 7
<br />years)
<br />25D-3
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