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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' WORKERS
<br />I I GENERAL GENERAL
<br />COMBINED I COMBINED
<br />COMPENSATION COMPENSATION
<br />LIABILITY
<br />i.
<br />LIABILITY
<br />MONTHLY ANNUAL
<br />MONTHLY FEE ANNUAL FEE I MONTHLY ANNUAL ,
<br />FEES I FEES
<br />I-
<br />FEE--------- j $14,600
<br />FEE -'-''
<br />175,200 i 56,725 680,700YEAR1 _ $42,125 $505,500
<br />YEAR 2 43,389 520,665 15,081180,456 1, I- $__
<br />60,180
<br />701,121
<br />YEAR 3 44,690 536,285 15,489
<br />15,954II
<br />185,870
<br />1, -
<br />191,446
<br />60 180_ 722,155__
<br />YEAR 4 $46,0311$- 552,373OPTIONAL
<br />OPTIONAL YEAR 47,412 1L$16,
<br />61,985_'`$743,819
<br />63,844 766,134568=945
<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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