Item 37 - Renewal with Third Party Administrator for Claims Admin. Service

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