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First Amendment AdminSure, Inc. <br />September 3, 2019 <br />Page 2 <br />Due to the increase in scope to the current AdminSure agreement, staff is recommending that City <br />Council authorize the increase of the current monthly rate for Workers' Compensation <br />administration, beginning September 1, 2019 through August 31, 2020, from $42,125 to $47,539, <br />which includes the 3% increase as approved in the original agreement, and General Liability <br />administration from $14,600 to $22,818 monthly, also inclusive of the 3% annual increase. <br />Subsequent years are shown in the table below. <br />The amended scope is due in part, to the enhanced ongoing obligations of the City of Santa Ana <br />under the terms and conditions of the documents that describe BICEP's authority to serve as a risk <br />sharing pool among its Member public agencies. Additionally, current reporting will need to be <br />duplicative in nature but will entail separating the reporting according to the applicable pool <br />coverage terms and differing Self Insured Retentions (SIR) for applicable periods, various <br />insurance carriers, as well as State and Federal reporting requirements. <br />1. BICEP is required to retain an actuary to prepare a report on each Member's Risk Sharing <br />Premium based on loss rate, if any future Premiums are to be established. In accordance <br />with BICEP's Liability Program, Art. 4.1.2.2; Exhibit A (I.) (A), BICEP is requesting quarterly <br />electronic submittals of all claims data for purposes of conducting actuarial analyses and <br />reinsurance for each Coverage Period for which the City is a participant. <br />2. In addition to scope of services in the Agreement with TPA regarding requirements by and <br />to BICEP, the TPA will provide all requirements under the ICRMA Agreement, including but <br />not limited to: <br />a. Participate with regular submissions of all qualifying claims to ICRMA Claims <br />Committee and Litigation Manager. <br />b. Observe all claims reporting requirements under ICRMA Liability Program <br />Memorandum of Coverage. <br />c. Follow all State reporting requirements for ICRMA & BICEP <br />The current Agreement defines Consultant's Obligations as follows: <br />"The Consultant represents that it employs, or will employ, at its own expense, all personnel <br />required for the satisfactory performance of the Services." <br />"Consultant shall furnish, at its own expense, all materials, equipment, and personnel <br />necessary to carry out the terms of this Agreement." <br />The increased workload is different and larger in scope than that described and discussed from <br />the original RFP requirements thus increasing the amount of materials, equipment, personnel that <br />the Consultant is obligated to provide under the current rate of compensation. <br />25C-2 <br />