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. 3 to the Agreement for Self-Insured Claims Administration Meeting Date: June 13, 2023
RECOMMENDATION:
The City Council will consider adopting a Resolution to execute the Renewal Amendment No.3 to the Agreement for Self-Insured Claims Administration (Worker’s Compensation Claims) with Keenan & Associates and authorize the Mayor or City Manager to execute Renewal Amendment No. 3.
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 July 1, 2016 through June 30, 2019 Agreement for Self-Insured claims administration from July 1, 2019 through June 30, 2022 with options to renew for two additional years.
On June 28, 2022, the City Council approved and authorized the Mayor or City Manager to execute renewal amendment No. 2 to the July 1, 2016 through June 30, 2019 Agreement for Self-Insured claims administration from July 1, 2022 through June 30, 2023 with the option to renew an additional year from 2023 through 2024.
The City Council also approved the additional two year costs for fiscal years 2022 – 2023 and 2023-2024. The total two year fiscal impact for the 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
Staff is now requesting Council to approve a resolution for the Mayor or City Manager to execute agreement No. 3, which is to authorize the option to renew an additional year covering FY 2023 – 2024.
ANALYSIS:
Renewal amendment No.3 stipulates “Exhibit C”, Fee Schedule, which is attached to the amendment No. 3, will supersede “Exhibit C” of the executed amendment No. 2 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, 2023 and end on June 30, 2024.
ALTERNATIVES:
Approve staff’s recommendation to execute amendment No. 3 to agreement.
Disapprove staff’s recommendation
Provide staff with further direction
FISCAL IMPACT:
The renewal payment for the fiscal impact under amendment No. 3 in the amount of $40,547 was approved by the City Council on June 28, 2022 to include in the fiscal year 2023/2024 proposed operating budget, during the approval of amendment No. 2.
If approved to execute amendment No. 3, 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: Vilko Domic, Assistant City Manager 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 (July 1, 2019 through June 30, 2022) Renewal Amendment No. 2 – Fully Executed (July 1, 2022 through June 30, 2023) Renewal Amendment No. 3 – July 1, 2023 through June 30, 2024 Resolution