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