HomeMy WebLinkAboutAgenda Report - August 7, 1985 (81)IFV
,AtxGU."r 7, 1985
CONTRACr RENEVAL
WITH LEONARD J .
RUSSO, INC. FOR tom; �/�• =`
WORKER'S
CCMPENSAPION 1. `t
CLAIMS
ADMINISTRATION
Councii approved the renewal of the contract with Leonard
J. Russo, Inc. for claims administration services for the
City's workers Compensation Program for. 1985 - 86 at a fee
of $25,599 for 171 new claims incurred and a fee of $149.70
for each new fee in excess of 171.
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6OUNCIL COMMUNICAT-., N
TO: THE CITY COUNCIL DATE NO.
FROM: THE CITY MANAGER'S OFFICE August 7,, 1985
SUBJECT:
CMrRACr PER94AL MR LMNARD J. RUSSO, WORIMS' COW CLAIMS AMINISTRATOR
Submitted for City Council review is the contract renewal for Leonard J.
Russo, workers' Ccnpensation Claims Administrator. Initially, in July
1983, the annual claims fee was based on 60 new claims per year. This has
been unrealistic for the past two years. In the contract year 1983-84,
the City of Lodi incurred 164 new Workers' Ccapensation Claims. During
1984-85 contract year, the'City incurred 174 new claims.
Costs for claims administration for the 1984-85 contract year were based
on the 60 new claims plus $133.75 for excess claims over 60. ..n sum,
total claims of 174 resulted in an annual expense of $23,272.50 or $133.75
per claim.
L. J. Russo is recamending a renewal fee schedule based upon 171 new
claims for the 1985-86 contract year plus $149.80 for excess claims of
171. This represents a generally modest increase for Lodi of 10 p.-rcent
annually based on our annual claims expe-ience. In addition, the excess
claims fee is recommended at a 12% increase, however, the revised new
claim figure of, 171 should minimize the excess claims expense.
The services rendered to the City of Lodi by L. J. Russo in the field of
workers' caTpansation claims administration have been excellent. It is
the recomw-ndation to staff to renew the contract with L. J. Russo for the
1985-86 fiscal year.
William Hinkle
Personnel Officer
LeonardJ-Russo
INSURANCE SERVICES. INC.
July 18, 1985
The City of Lodi
211 West Pine St.
Loci CA 95240
ATTN• William Hinkle, Administrative Assistant
to City Manager
RE: CONTRACT RENEWAL
Dear Bill,
aware we are well past our contract renewal
As you are probably olo i2e for any problems
period forave 1985-1 086 year.
theepast two years we have based
this may have caused y approximately 60 new claims
the fee for claims administrationon learned that this is a gross
per year. We have recently
miscalculation of new files incurred.
During the contract year 1983-1984, the City of Lodi incurred 164
new Workers' Compensation claims. During the second contract,
year the City of Lodi incurred 174 new
ellkers' o compensation
claims. As YOU can see, we are tracking w
laims per
year!
he fee was set at
Luring the 1984-1985 contract year tfor
60 claims or $133.75 each. Any claim over 60 was charggeded a fee
a
of $133.75 each.
figure out to reflect the total experience
If we break this
during 1984-1985 we will come up with the following:
60 claims @ $ 8,025247,50
114 claims x $13�15,
= 232--,24 .5
174.c1 ms x $133.75= $
In other words, during the last contract year the City of Lodi
paid $23,272.50 for claims administration for 174 claims or $133.75
each.
2200 POWELL STREET. SUITE 400
----------
P.O. BOX 8819
EMERYVILLE, CA 94662
415-547-3110
If
We are now proposing a modest increase for the 1985-1986 contract
year of 10% or $2, 327. We will base the figure on the averages
of 171 claims per year.
Therefore, the proposed new fee schedule will be as follows:
$25,599 for 171 new claims incurred. Any claim
over 171 will be charged a fee of $149.70 each.
Bill, if this agreement
lowmeets
If not your
pleaseapproval
conta please
me so wesign
may
the spaces provided
discuss this further.
MR: vi
Attest Ae
Date
Attest
Date q 86 City Clerk
2
Very truly yours,
Mara Rigel
Client Servide
Representative
LJR INSURA
Mayor