HomeMy WebLinkAboutAgenda Report - October 20, 1993 (73)or
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CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Renewal of Workers Compensation Claim Administration
Service Agreement
MEETING DATE: October 20, 1993
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: That City Council review the attached service
agreement, Amendment 41 and authorize its acceptance.
BACKGROUND INFORMATION: The City of Lodi considers the renewal of its
service agreement with its workers compensation
third party administrator on an annual basis, every
November 1st.
Council approved a fee of $4,916.25 per month for November, 1992 through
October, 1993. City staff negotiated a zero percent increase with Associated
Claims Management Inc., maintaining a fee of $4,916.25 per month for the
upcoming 93-94 agreement.
The only increase included in this renewal is a $410 per claim fee (up from
$400) for claims totaling more than 125 during the agreement year. Given our
successful history of reducing claims, it is unlikely that more than 125 claims
will be received.
City claim3 received during the following agreement years total:
11/1/90 - 10/31/91 128
11/1/91 - 10/31/92 102
11/1/92 - 10/01/93 90
The City has been participating in a managed care/medical cost containment
program. Net savings for the City from 11/26/92 through 7/30/93 total $16,353
or an average of $2,044 per month. Extrapolated over one year, net savings
should total $24,529.
FUNDING: Operating budget.
Respectfully Submitted,
J rry L. Glenn
ssistant City Manager
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Prepared by Kirk J. Evans
Administrative Assistant to the City Manager
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APPROVED. Q ii
THOMAS A. PETERSON recycled paper
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OCT 0 7.93
October 4, 1993 City Managers office
Mr. Kirk Evans
Asst. to the City Manager
City of Lodi - City Hall
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
Re: Workers' Compensation Service Agreement Renewal - 11/1/93
Dear Kirk:
Enclosed please find two original Service Agreement Renewal Amendments in accordance
with our telephone conversation last we,. -k. Please have both amendment copies signed;
return one to me and retain the other for your records.
Please feel free to call me if any questions or concerns should arise with regard to your
program. Thank you.
Very truly yours,
TED CLAIMS MANAGEMENT, INC
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Roberta Penarelli
Executive Vice President
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Enclosures
390 N. 4Yget lane - P.O. Box 31077 - Walnut Creek CA 94598 - (510) 930-9883 - Fax: (510) 930-7268
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AMENDMENT #1
Workers' Compensation Self -Insurance Service Agreement
between
CITY OF LODI
and
ASSOCIATED CLAIMS MANAGEMENT, INC: OF CALIFORNIA
It is mutually agreed by the parties that Section 2. (Consideration) of the Service
Agreement effective November 1, 1992 be amended as follows:
2. Consideration
a. Associated% monthly service fee for the period November 1, 1993 through
October 31, 1994 shall be 54,916.25 per month for up to 125 new claim
submissions; over 125 claims at 5410 per claim. No additional fee will become
due for on-going open claims.
All other terms and conditions of the Agreement remain unchanged.
Accepted By:
City of Lodi
By:
Authorized Signature
Name (Type or Print)
Title
221 W. Pine Street
Street
Lodi, CA 95240
City, State, Zip
Dace
i1
Accepted By:
Associated Claims Management, Inc.
of-%slifc�ni��
Av:
Authorized Signature
Roberta Penarelli
Name (Type or Print)
Executive Vice President
Title
390 North Wip-et Lane
Street
Walnut Creek. CA 94598
City, State, Zip
October 4. 1923
Date