Report to Mayor and City Council
Wednesday, July 05, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO THE ADMINSURE INC. CONTRACT FOR THE PERIOD AUGUST 15, 2023 THROUGH AUGUST 14, 2024 (CITY COUNCIL)
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I. SUMMARY
The City maintains a contract with a third-party claims administrator (TPA) to process its self-insured workers compensation claims. Adminsure Inc. has provided TPA services to the City since 2015. On July 7, 2020 City Council awarded the current three-year contract with two one-year renewal options. The initial 3-year period of that contract will end on August 15, 2023; therefore, staff is now asking City Council to approve the first of the two one-year extensions for the period of August 15, 2023 through August 14, 2024, at a cost of $110,148.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment No. 1 to the Adminsure, Inc. contract, extending the term through August 14, 2024, at a cost of $110,148.
2. AUTHORIZE the Mayor to execute the amendment to the AdminSure contract after approval as to form by the City Attorney
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
Adminsure has provided TPA services for the City since 2015. The first contract term inclusive of two one-year extensions ended on August 15, 2020.
The City Council awarded the current (i.e. second) three-year contract, with two one-year optional extensions, to Adminsure Inc. on July 7, 2020. The initial three-year term will end on August 15, 2023. With this Amendment No. 1, extending the term by one year, the total compensation for the services, inclusive of the first three-years plus the optional fourth year, shall be four hundred twenty-seven thousand eight hundred twelve Dollars ($427,812).
The administration of a self-insured worker compensation program requires a TPA that is competent and performance oriented. Managing worker compensation claims must be handled in accordance with state law, have ...
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