HomeMy WebLinkAboutAgenda Report - September 28, 1988 (68)C 0 N C I L C O M M U N I C A i i O N
TO: THE CITY COUNCIL
FRGM: THE CITY MANAGER'S OFFICE
0OUNM Nff TING DATE
September 28, 1988
SUBJECT: APPROVE RENEWAL AGREEMENT WITH ADICJS" (FORMERLY LEONARD J. RUSSO PGJRANCE
SERVICES, INC.) FOR WORKERS' COMPENSATION CLAIMS AM,1I N I STRA T ION FOR 1988-89 AND
AUTHORIZE THE CITY MANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT.
PREPARED BY:
Assistant City Manager
RECOMMENDED ACTION: That Council approve the renewal of the Workers' Compensation
Administration Contract with AD IS'TOD (formerly Leonard J.
Russo Insurance Services, Inc. ) covering the period of July
1, 1988 through June 30, 1989 and authorize the City Manager
and City Clerk to execute the fetter agreement cn behalf of the City.
Submitted for City Council approval `is the renewal of the
agreement with ADUS'TCO (formerly Leonard J. Russo Insurance Services, Inc.) for workers'
ccmpensation administration for 1988-89.
After some negotiations ADIL1SM will continue to perform the
services for the same base cost as last year of $26,110. However, the cost for additional
claims over a minimum of 115 per year will be $277.04 instead of $152.69.
The proposed fee will be $26,110 for the first 115 claims..
$227.04 per claim for those filed in excess of 15.
Froin July 1, 1987 through June 30, 1988, 119 workers'
compensat on claims have been filed against the City of Lodi.
Corporate Of -aces
7200 Powell Street • Scute 400 • E.mer.•,&e. CA 94601-
(415) 5-4 7-3110 - FAX (415)
4601-
(415)5•;7-3110-FAX(4t5) 547-6157 sip y�
City jai [ '4
September 6, 1988 3J�rSOff,-
The City of Lodi
221 W. Pine Street
Lodi, CA 94530
Att: Jerry Glenn, Assistant City Manager
RE: 1988-89 Workers Compensation Contract Renewal
Dear Jerry:
At long last, here is the letter I promised which addresses the
proposed fee for the 1988-89 contract year.
While the anticipated claims
estimated at 170 claims/year,
years has actually been:
volume for the last four years was
the claims count for the past two
1987-88 119 claims
1986-87 110 Claims
229 - 2 = 114.5 Average
(Figures taken from the accounting file)
The current rate of compensation is $26,110 for..J71.- claims.
Claims over 171 are billed at
$152.69.
Last year the profit and loss
statement looked like thiFs
operating Expenses
1.Supv. @40,000 @ 20%. _
$ 8,000.
•1:..Exam. @ 26,000 @ 20%;=
$ 5,200
:. 1. Asst..:@,.15,000 @ 20%..=
$ 3,000
$16,200 .:
..Benefits @ 30%.
4,860
$21,060
Data Processing.
$ 1.200
$22,260.
Overhead 20%
4 452
$26', 712.
Loss
$ <602>
�,
City of Lodi
September 6, 1988
Page 2
As you can see, we lost approximately $602 on the program.
During our recent phone conversation you stated that the City
felt a more reasonable fee arrangement would be to multiply the
yearly claims average by the rate of $171. per claim. This would
allow us revenue of only $19,665 for the next contract year. The
estimated loss to Adjustco would be approximately $6,445, and we
would not be able to provide quality service to Lodi if this were
the case. we want to remain a healthy organization that will
provide the best possible resources for the City of Lodi.
We suggest that the current fee schedule remain in place for
1988-89 contract year, thus;
$26,110 for 115 claim.
Claim in excess of 115 will be billed at $227.04 each.
This rate is much lower then those we are quoting to our new and
prospective clients, somewhere in the range of $250-$300 per
claim.
Jerry, we value our long standing relationship with the City of
Lodi and we wish to remain your administrator far into the
future. We feel we are providing an excellent service to you and
your comments during our meeting of May 23rd, indicated that you
feel the same.
If you are in agreement with our compromise proposal, please sign
:i:n the space provided below.
�s always, I appreciate the professionalism of you and your
olleagues at the City cf. Lodi.
C O U N C I L
TO: THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
C C M M U N I C A T I 0 N
CULt,L L, MEETING DATE
AUGUST 3,1 988
SUBJECT: APPROVE RENEWAL AGREEMENT KITH AIJS'ICIO (FORMERLY LEONARD J. RUSSO INSURANCE
SERVICES, INC.) FCR NNU4< S CLAM ADMINISTRATION FOR 1988-89 AND
AUTHORIZE THE CITY MANAGER AND CITY CLERK TO EXECUTE THE AGREEMENT.
PREPARED BY:
Assistant City Manager
RECOMMENDED ACTIGN : The City received a proposal for Workers'
Compensation Administration from ADLbIIO
(L . J . Russo) . Because of a reduction in claims, "e
feel a lesser rate is appropriate and are in the
midst of negotiations with ADJJSIC,.
We are hopeful we wi 11 have an agreement by the
August 3 meeting.
Respectfully submitted,
i Z -
C U J N C I L C O M M U N I C A T I O N
TO: THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
COUNCIL MEETING DATE
JULY 20, 1988
SUBJECT: APPROVE RENEWAL OF AGREEMENT VVIIIH ADXJSM (FORMERLY LEONARD J. RUSSO INSURANCE
SERVICES, INC.) FOR WORKERS COMPENSATION CLAIM FOR 1988-89 AND
AUTHORIZE THE CITY MANAGER AND = CLERK TO EXECUTE THE AGREEMENT ON BEHALF OF
THE CITY
PREPARED BY:
Assistant City Manager
RECOMMENDED ACTION: That Council approve the renewal of the Workers Compensation
Claims Administration Contract with AILUSICO (formerly
Leonard J. Russo Insurance Services, Inc.) covering the
period of July 1, 1988 through June 30, 1989 and authorize
the City Manager and City Clerk to execute the letter agreement on behalf of the City.
Submitted for City Council approval is the renewal of the
agreement with ACXJSIW for workers compensation claims administration for 1988-89.