CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce, California Approving Renewal Amendment No. 2 to the Agreement for Self-Insured Claims Administration Meeting Date: June 28, 2022
RECOMMENDATION:
The City Council will consider adopting a Resolution to execute the Renewal Amendment No.2 to the Agreement for Self-Insured Claims Administration (Worker’s Compensation Claims) with Keenan & Associates and authorize the Mayor or City Manager to execute the Renewal Amendment No. 2.
BACKGROUND:
The City Council approved and authorized the Mayor to execute an agreement of the Worker’s Compensation membership in the Municipal Insurance Cooperative Join Powers Authority providing the services and maintenance of a Joint Purchasing Program for Worker’s Compensation and other coverage.
The City Council provided authorization to the City Manager to execute any other documents needed to effectuate the City’s membership.
The City Manager executed an agreement from July 1, 2016 through June 30, 2019 with Keenan & Associates, a full service brokerage firm and management of the Municipal Insurance Cooperative, to provide the City of Commerce with a worker’s compensation program to include a self-insured retention.
In 2019, the City Council approved and authorized the Mayor to execute renewal amendment No. 1 to the Agreement for Self-Insured claims administration from July 1, 2019 through June 30, 2022.
ANALYSIS:
Renewal amendment No.2 stipulates “Exhibit C”, Fee Schedule, which is attached to the amendment No. 2, will supersede “Exhibit C” of the executed amendment No. 1 of the renewal agreement from July 1, 2016 through June 30, 2019.
The renewal period for the amended agreement is proposed to renew for an additional one year beginning on July 1, 2022 and end on June 30, 2023 with an option to extend an additional one year term to extend from July 1, 2023 through June 30, 2024.
Staff is recommending renewing the agreement for the one year and accepting the option to renew an additional year to extend the agreement through June 30, 2024.
ALTERNATIVES:
Approve staff’s recommendation to renew for 2 years and execute amendment to agreement No. 2 Disapprove staff’s recommendation
Provide staff with further direction
FISCAL IMPACT:
The total two year fiscal impact for the renewal of this revised two (2) year agreement is $76,597 to be paid as follows:
July 1, 2022: $36,050 - FY 2022 - 2023
July 1, 2023: $40,547 - FY 2023 – 2024
The Fiscal Year 2022/23 operating budget includes funding for this contract. If approved, the changes made by this amendment to the agreement will be included in the future Fiscal Year 2023/24 proposed operating budget.
RELATIONSHIP TO STRATEGIC GOALS:
This agenda report relates to the 2016 City of Commerce Strategic Guiding Principles as follows:
City Organization; Guiding Principle 2: Foster an environment that continuously seeks to improve service and organizational responsiveness to internal and external customers.
Fiscal Sustainability; Guiding Principle 2: Implement city business processes and operational efficiencies to streamline the cost of government including the examination and identification of cost of services and cost of recovery policies.
Prepared by: Ela Pappo, Director of Human Resources
Fiscal Impact reviewed by: Josh Brooks, Director of Finance Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager ATTACHMENTS:
Self-Insured Claims Administration Agreement (July 1, 2016 through June 30, 2019) Renewal Amendment No. 1 – Fully Executed
Renewal Amendment No. 2
Resolution