HomeMy WebLinkAboutAgenda Report - November 6, 1991 (80)OF
CITY OF LOCA!
111-0011M
-0011MI-MAM1711
AGENDA TITLE: Renewal of Workers Compensation Claim Administration
contract with Greenfield -Thompson Associates
MEETING DATE: November 6, 1991
PREPARED BY: Assistant City Manager
RECOMMENOE0 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 Compensation 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 been physicians 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
2989 Reform Act and AB 2910, GTA is requesting a 6% increase in its service fee.
GTA is also asking for a 2% increase to cover operatingg expenses and cost of living
for employees. This overall 8% increase will raise GTA's monthly fee from $4,400
per month to $4,750. The Service Fee agreement is attached for Council's review.
FUNDING: Sufficient monies have beer: budgeted in the Workers Comensation Insurance
Fund to cover the cost of this contract.
Respectfully Submitted,
. 0
dssriystLan-t
Glenn
City Manager
JLG: KJE: tR
Attachment
Prepared by Kirk J. Evans
Administrative Assistant to the City Manager
APPROVED:—
THOMAS A. PETERSON
Cftv Manntor
CCC0M001/TXTA.TLR/WKRSC0M9 CC''
The fees paid by Employer to Service Company under this
agreement are for services rendered by Service Company
during the twelve month period beginning November 1, 1991.
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
claims exceeding 125 will be administered at a fee per claim
of $370.
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
attendance 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
needed, costs will be actual as incurred.
GOVERNING LAW
This Agreement shall be interpreted and construed in
accordance with 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 force.
THE CITY OF LODI
BY:
GREE
BY:
Thomas A. Peterson
TITLE: City ManavPr TIT
DATE:
amended 10-02-91
ATTEST:
Alice M. Reimche, City Clerk
DATE • /� — /
APPROVED AS TO FORM: