25D - AGMT WORK COMP ADMIN - Laserfiche WebLink

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Agreement with AdminSure for General Liability and Workers' Comperisation Claims September 4, 2018 Page 4 • The annual fee shall never exceed a three percent (3%) increase -per year, including optional additional years. For Workers' Compensation, Optional Year 6 not to exceed $48,485 per month and Optional Year 7 not to exceed $50,300 per month. For General Liability, Optional Year 6 not to exceed $16,925 and Optional Year 7 not to exceed $17,433. • Medical Bill Review is a flat fee of $9 per bill. • Utilization Review is 7% of billed charges with a cap of $750. • One-time flat fee for data conversion will be $10,000. In accordance with best practices, the TPA and the City's Finance Department will have a structured financial arrangement through which the vendor will be given access to a bank account and will pay claims, temporary total disability payments, settlements and claims -related expenses as pre -authorized by and on behalf of the City. Staff recommends that City Council authorize the City Manager to enter into an agreement with AdminSure, Inc. to provide TPA services for General Liability and Workers' Compensation claims processing. Contracts will be reviewed by the City Attorney's Office before execution by the City Manager or his designee. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #7 — Team Santa Ana, Objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success. FISCAL IMPACT Workers' Compensation and General Liability TPA administrative services are not specifically budgeted as a line item in the Fiscal Year 2018/19 Budget. However, Funds are available in the Human Resources Department, Risk Management Division Budget and have been earmarked as follows. The monthly fee for the 10 -month pro -rated period, for the first year of the contract, will be: • $421,250 from Workers' Compensation, Account(s) Contractual Services -Professional (No. 08209054-62300), Other Personnel Services (No. 08209054-62302); and • $146,000 for General Liability from Account(s) Other Contractual Services (No. 08009051- 62300), and Other Personnel Services (No. 08009051-60302). The chart below outlines estimated costs for subsequent contractual years FEES WORKERS' COMPENSATION MONTHLY GENERAL LIABILITY MONTHLY COMBINED ANNUALTOTAL YEAR 1 (10 MONTHS) $42,125 $14,600 $567,250 _ YEAR 2 $43,389 _ $15,038 $701,121 YEAR 3 $44,690 $15,489 $722,155 OPTIONAL YEAR $46,031 $15,954 $743,819 OPTIONAL YEAR $47,412 $16,432 _ $766,134 25D-4