HomeMy WebLinkAboutAgenda Report - July 15, 1998 (51)e
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CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Award Contract for Workers' Compensation Claims Administration
MEETING DATE: July 15, 1998
SUBMITTED BY: Human Resources Director
RECOMMENDED ACTION: To authorize staff to award a new contract for Workers' Compensation
claims administration to Innovative Care Solutions (ICS).
BACKGROUND INFORMATION: The City's Workers' Compensation claims have been
administered by the same company (Foundation Integrated Risk Management Solutions — formerly
Associated Claims Management) for the last 7 years. A Request For Proposals (RFP) was distributed in
April, 1998. A total of 8 proposals were received. There were no local bids. After an intial screening of the
submitted proposals, the prinicpals of the top 5 proposals were interviewed by a board composed of the
Human Resources Director, Risk Manager, Accountant, and the Risk Manager from the City of Fairfield.
The board recommended consideration of 3 firms. The board's ranking of the firms is as follows: (#1) Innovative
Care Systems, Inc. (ICS), (92) Bragg & Associates, Inc., and (#3) Willis Corroon Administrative Services
Corporation (WCASC).
Consideration was then given to the following for each firm: public sector experience; professional reputation of
the firm and its principals; quality of response to the RFP; level and nature of service and professionalism to be
provided to City staff, injured employees and medical community; and fee structures (a matrix of the proposed fee
structures is attached). It has been determined that Innovative Care Systems will provide the most effective and
efficient claims administration services to address the City's needs.
It is recommended to enter into a 3 -year contract with Innovative Care Systems at a cost of $70,000 each year for
years 1 and 2, and $72,100 for year 3.
FUNDING: Workers' Compensation — Self -Insurance Fund
Respectfully submitted,
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Joann A. Narloch, Human Resources Director
Prepared by Marlon Robbins, Risk Manager
APPROVED:
H. Dixon Flynn -- City Manager
Fee Structures of Top 3 Proposals for Workers' Compensation Claims Administration
FIRM Name
Fee Structure
Year 1 (98/99) Year 2 (99/00) Year 3 (00/01)
ICS
$70,000
$70,000
CPI Increase — 3%
($72,100)**
Bragg
$71,100
CPI Increase
CPI Increase
($73,125)**
($75,210)**
WCASC
$72,500 (Cap)
$72,500 (Cap)
Higher of CPI or 3%
($74,650)**
F.I.R.M. Solutions, Inc. *
$67,207
$70,207
$73,562
* F.I.R.M. Solutions, Inc., the City's current administrator is shown for comparison reasons. The current
fee, for administrative services is $62, 000.
** Fee calculated at 3% assuming approximate CPI.
RESOLUTION NO. 98-116
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT WITH INNOVATIVE CARE SOLUTIONS, INC.,
FOR WORKERS' COMPENSATION CLAIMS
ADMINISTRATION
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager
to execute a contract with Innovative Care Solutions, Inc., for Workers' Compensation
Claims Administration.
Dated: July 15, 1998
I hereby certify that Resolution No. 98-116 was passed and adopted by the Lodi
City Council in a regular meeting held July 15, 1998 by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Land, Mann, Pennino and Sieglock
(Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
ALICE M. R 1MCHE
City Clerk
98-116