TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Lisa Jenkins, Human Resources Director
Briza Morales, Risk Manager
SUBJECT:Title
Consideration of a Resolution Approving a Five-Year Agreement with AdminSure, Inc. for Third Party Administration Services in Support of the Self-Insured Workers' Compensation Program for an Amount Not-To-Exceed $1,221,144 (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 21-0055
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve an agreement with AdminSure, Inc. (AdminSure) for an amount not-to-exceed $1,221,114 over five years for third party administration of workers' compensation claims and ancillary medical management services.
Body
FISCAL IMPLICATIONS:
Funds in the amount of $230,004.00 are budgeted in the Fiscal Year (FY) 2021-2022 Risk Management Workers' Compensation Claims Administration and Claims Paid Funds. Funds for FY 2022-2023 through FY 2025-2026 will be budgeted accordingly.
Fiscal Year Amount
2021 - 2022 $ 230,004.00
2022 - 2023 $ 236,916.00
2023 - 2024 $ 244,020.00
2024 - 2025 $ 251,328.00
2025 - 2026 $ 258,876.00
5-Year Total $1,221,144.00
BACKGROUND:
The City has been permissibly self-insured for workers' compensation since May 1, 1974. Historically, the City has maintained a self-insured retention (SIR) level and purchased excess workers' compensation coverage through risk-sharing pools. Since 2002, the City has maintained a SIR level of $750,000. From 1983 through 2017, the City purchased excess workers' compensation coverage through the Independent Cities Risk Management Authority (ICRMA). Since 2017, the City has purchased excess workers' compensation coverage through the Public Risk Innovation, Solutions, and Management (PRISM) pool, formerly named the California State Association of...
Click here for full text