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Home My WebLink AboutAgenda Report - October 16, 1991 (58)r i OR C Q F LQ� COUNCIL COMMUNICATION c�4 AGENDA TITLE: Renewal of Workers Compensation Claim Administration contract with Greenfield -Thompson Associates MEETING DATE: October 16, 1991 PREPARED EY: Assistant City Manager RECOiIENDED:ACTION That Council approve the renewal of the contract with Greenfield Thompson Associates which includes an 8% fee increase. BACKGROUND INFORMATION: Greenfield -Thompson Associates (GTA) began service as the City's Workers Ccmpensation third party administrator in November, 1990. The process of transfering files and electronic data as well as getting new procedures on line has not been'`easy. : However, an excellent communication flow and working relationship. has developed between GTA and the City. In "January,,`1991,:workers compensation "reforms" were introduced in California. These "reforms" have,. served. primarily to add more deadlines and bureaucratic hoops to.an..'already complex ...and: expensive system. The primary beneficiaries of this system have beenphysicians and attorneys. The current pricing for claims administration services expires on November 1, 1991. In response .to the added complexities and increased claims activity created by the 1989<Re.form Act.landi AB '.2910., GTA is requesting a 6% increase in its service fee. GTA is'also askingfor a'•2% increase to cover operating expenses and cost of living for., employees.° This overall 8% increase will raise GTA's monthly fee from $4,400 per month"to,14,750.' The Service Fee agreement is attached for Council's review. FUNDING: Sufficient monies have been budgeted in the Workers Comensation Insurance Fund to cover the cost of this contract. Respectfully Submitted, rerry Glenn Assistant City Manager JLG-.KJE: tp Attachment Prepared by Kirk J. Evans Administrative Assistant to the Ci APPROVED: THOMAS A. PETERSON ...d....... r.�'�:bi'w.ati�nm.>.µw�.. �as� .x �wv ...•.,.nru�+r`cz-uMw.�:rn,�.0 .��*�,�a_ :a: .... _ _.. ..,.._. _.� .._ .....___� Gltt'E:\PIFI.l�'Cllull!'��i�\.rt�ta�'CF,� _.. September 12, 1991 ,4 SEF 1 Y91 C'dY ManaSe{s0�ce r Mr. Jerry L. Glenn Assistant City Manager The City of Lodi 221 West Pine Street P. O_ Box 3006 Lodi, CA 95241-1910 Re: Renewal of Workers' Compensation Claim Administration Contract - 1991 Dear Jerry: The current pricing for claims administration services R?i]26igticglnlye-ind lis 4L?Rject too'�Ean;r$yi�ludj�� requests for fee increases, approved by both parties. we a .3er Nyb e requesting an 13.6$x. overall increase- or% $600 PAP comp; due the additional seryjjaesABr-Euired of GTA im v 1tJhan ry27 3�, �g ��narw itch 1;became .' ndew ity- claims. While we still do not know the full impact of the 1989 Reform Act and AB -2910, the clean-up legislation, we are experiencing increases in our costs of doing business as examiner and support staff must be added to prepare, document and present information on reporting, penalties and audit procedures as well as a host of new procedures and activities the examiner must perform and document on each claim file in preparation for the Office of Benefit Enforcement audits. ^A1:=vrevi.ew of:;>:the^: Anrn show,s^`the .open rinde Reports:~, -•and=, computers -information i.�ro `2Z5 to' 1421", whit claims, count has r increased ] 3.6%w allows,, tne. 21 i 5t'increase:Y-,irn°,` new "rePOrt There is a direct percentage relationship between the number of open indemnity files and our fee increase request. s«i<< 110 P.C). wix sss, Plersanbm, CA 94566-0188 45 426 9263 After- `;you; _`havend aria opportunity tow review- nfrirmationpresented;glease6give,me a_,call� toy discuss j Tlou� sucigeste -, nervii'ceswjfees�fot�Wtheo i,.99X contrac -period-,i If there; .is any additional' information, legislative or computer data we can :provide which will help in your review and approval of this.`increase, please let me know. { If in order, please return one signed copy of the amended, service fee section of our agreement, as attached. We have enjoyed working the other cit with you .and h Y employees and Took forward to a long' and mutually beneficial business relationship. ! Very t my you , { Deborah S. a nfiel GREENFIELD-THOMPSO SSOCIATES, INC. DSG/kk Ch October 2, 1991, Deborah Greenfield was contacted by the City. She was informed that, given recent modifications to the City's loss run (many cases have been closed), the pro- jection of a 6.5% increase in open claims was excessive. She agreed to drop GTA's service fee request by $250.00, resulting in a net overall increase of only $350.00 or 8%. '. +�y§:.'�.-�•" ��"�"."` .» sv' �`k'3%�%`yr .. ,_. .�- ...cai:k x,(X�.+t1'Rf9aa�fx!�,''.`�-',r;.et-c�:il4x�ryr, +><:��.:w.o...r...._.— ...... ...-_.a..,��..u.mv.^ c. ..:a»' .r.-.�< 1, �'.�,�AK Page Two I { r The requested service fee increase is outlined as follows: $4400.00 current Mgnthly E fee 242.00 5.5%,increases in claim activities from I— _ )89 Reform Act & ); After- `;you; _`havend aria opportunity tow review- nfrirmationpresented;glease6give,me a_,call� toy discuss j Tlou� sucigeste -, nervii'ceswjfees�fot�Wtheo i,.99X contrac -period-,i If there; .is any additional' information, legislative or computer data we can :provide which will help in your review and approval of this.`increase, please let me know. { If in order, please return one signed copy of the amended, service fee section of our agreement, as attached. We have enjoyed working the other cit with you .and h Y employees and Took forward to a long' and mutually beneficial business relationship. ! Very t my you , { Deborah S. a nfiel GREENFIELD-THOMPSO SSOCIATES, INC. DSG/kk Ch October 2, 1991, Deborah Greenfield was contacted by the City. She was informed that, given recent modifications to the City's loss run (many cases have been closed), the pro- jection of a 6.5% increase in open claims was excessive. She agreed to drop GTA's service fee request by $250.00, resulting in a net overall increase of only $350.00 or 8%. The fees paid by Employer to Service Company under this agreement are Cor services rendered by Service Company during the twelve month period beginning November 1, 1-991• The Service Company assumes no obligation or responsibility for services beyond an earlier termination date. CLAIM ADMINISTRATION: A guaranteed flat fee payable in equal monthly installments of $4,750.- due in advance the first of each month beginning November 1991 to administer 125 new or re -open claims and 125 open indemnity claims. New or re -opened claims exceeding 125 and pending open CJAJ exceeding 125 will be administered at a fee per claim SAFETY & HEALTH CONSULTING & INDUSTRIAL HYGIENE SERVICES: The charge for loss control consulting services is an hourly rate of $41. to $125., plus expenses. These services will be estimated on a project by project basis with guaranteed costs "not to exceed", The charge for industrial hygiene services is on an "as need" basis hourly, plus expenses, FIELD INVESTIGATION AND OTHER OUTSIDE SERVICES: The charge for field and investigative services and outside services such as mandatory conference, hearing or trial ttendance is $65.. per hour, plus expenses. SPECIAL OR ADDITIONAL COMPUTER INFORMATION: All reports, data processing, training and services are included in the annual fee, If additional reports, special ,reports, conversion or special programming or information is n,=eded, costs will be actual as incurred, -GOVERNING LAW This Agre ment shall,be interpreted and c-cistrued in accordance wit] the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Amendment day and year hereinbelow written. All other terms and conditions remain in full €"ee, l THE CITY OF LODI GREENFIEL1)gT40HPSOWXS49C, INC. BY: Thomas A. Peterson TITLE: City Manager DATE: BY: TITLE: DATE I- /D9^ r/ amended 10-02-91 APPROVED AS TO BORNE• ATTEST= Bob McNatt, City Attorney Alice M. Keimche, City Clerk SEP 13 September 12, 1991 C►tyManaBe'sOtfice Mr. Jerry L. Glenn Assistant City Manager The City of Lodi s 221 West Pine Street P. O. Box 3006 Dodi, CA 95241-1910 6 Re: Renewal of Workers' Compensation Claim Administration Contract - 1991 Dear Jerry: The current pricing for claims administration services expires on November 1, 1991. our contract will i automatically renew and is subject to changes, including requests for fee increases, approved by both parties. We are requesting an 13.60 overall increase or $600 per month due the additional services required of GTA to comply with AB -276, SB -47 and AB -2910 which became effective January 1, 1991, and the increase in open indemnity claims. While we still do not know the full impact of the 1989 Reform Act and AB -2910, the clean-up legislation, we are experiencing increases in our costs of doing business as examiner and support staff must be added to prepare, document and present information on reporting, penalties and audit procedures as well as a host of new procedures and activities the examiner must perform and document on each claim file in preparation for the Office of Benefit Enforcement audits. A review of the Annual Reports and computer information shows the open indemnity claims count has increased 13.60 from 125 to 142 which follows the 21.5% increase in new indemnity claim reported. There is a direct percentage relationship between the number of open indemnity files and our fee increase request. 7020 !Coll Ccnt¢r Nrkway. Suitc 191 Pp.. 114rx 1RR5 Plcrcmton, CA 94566.OIRR 415 .I?h x26,