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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: APPROVE THE FIRST AMENDMENT TO THE AGREEMENTS WITH ADMINSURE, INC., FOR THIRD PARTY ADMINISTRATOR CLAIMS SERVICES ADDITIONAL ANNUAL FEES FOR GENERAL LIABILITY OF $93,360 AND WORKERS' COMPENSATION CLAIMS OF $49,800 (STRATEGIC PLAN NO. 7; 6) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to execute the attached first amendments to the agreements with AdminSure, Inc., to provide an increased scope of services to the City's self -insured third party claims administration and management for General Liability and Workers' Compensation with term of agreements remaining from September 5, 2018 through August 31, 2021 which include two, two-year options for renewal. Additional amount of $7,780 per month for General Liability and $4,150 per month for Workers' Compensation, subject to non -substantive changes approved by the City Manager and City Attorney. This increase annualized is $49,800 for Workers' Compensation and $93,360 for General Liability. The City is self -insured for General Liability and Workers' Compensation with excess coverage previously through participation in a Joint Powers Agreement with the Big Independent Cities Excess Pool (BICEP). For Workers' Compensation, the City was self -insured and self-administered for claims management and processing and had excess coverage through the California State Association of Counties - Excess Insurance Authority (CSAC-EIA). Due to the dissolution process of BICEP, on July 2, 2019, the City Council approved that the City become a member in excess coverage pool and ancillary insurance coverages with Independent Cities Risk Management Authority (ICRMA). Through this change, the City will realize a savings in Fiscal Year 2019/2020 of approximately $1,000,000. Prospectively, all claims and reporting will be processed with ICRMA by the City's current Third Party Administrator, AdminSure. However, the dissolution of BICEP requires additional and duplicative monitoring, processing and reporting throughout the dissolution process which could extend for several years, dependent upon the closure of each outstanding claim from each Member City or an alternative claim resolution for the remaining open claims. 25C-1