TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce, California Approving Renewal Amendment No. 4 to the Agreement for Self-Insured Claims Administration MEETING DATE: June 25, 2024
RECOMMENDATION:
The City Council will consider adopting a Resolution to execute the Renewal Amendment No. 4 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. 4.
BACKGROUND:
On May 27, 2016, the City Council approved and authorized an agreement and related documents for membership in the Municipal Insurance Cooperative Joint Powers Authority providing the services and maintenance of a joint purchasing program for Worker’s Compensation and other coverage.
The City Administrator executed the Self-Insured Claims Administration Agreement from July 1, 2016 through June 30, 2019 with Keenan & Associates, a full-service brokerage firm with management of the Municipal Insurance Cooperative, to provide the City of Commerce with a Worker’s Compensation program to include a self-insured retention.
On September 17, 2019, the City Council approved and authorized the City Manager to execute Renewal Amendment No. 1 to the July 1, 2016 through June 30, 2019 Self-Insured Claims Administration Agreement, which extended the agreement through June 30, 2022.
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 Self-Insured Claims Administration Agreement, which extended the agreement through June 30, 2023.
On June 13, 2023, the City Council approved and authorized the Mayor or City Manager to execute Renewal Amendment No. 3 to the July 1, 2016 through June 30, 2019 Self-Insured Claims Administration Agreement, which extended the agreement through June 30, 2024. The City Council also approved the additional $40,547 cost associated with this one-year extension.
Staff is now requesting that the City Council approve a resolution authorizing the Mayor or City Manager to execute Renewal Amendment No. 4 to the July 1, 2016 through June 30, 2019 Self-Insured Claims Administration Agreement, which will extend the agreement through June 30, 2025, and approve the $44,601 cost associated with this one-year extension.
ANALYSIS:
The City entered into a Self-Insured Claims Administration Agreement with Keenan & Associates on July 1, 2016, and this agreement was extended on September 17, 2019 and on June 28, 2022. The City Council authorized an additional extension to this agreement on June 13, 2023, which will expire on June 30, 2024.
The annual cost for Renewal Amendment No. 3 for claims management services was $40,547 for July 1, 2023 through June 30, 2024, and the annual cost for Renewal Amendment No. 4 for claims management services is $44,601. Renewal Amendment No. 4 will extend the Self-Insured Claims Administration Agreement for an additional one (1) year beginning July 1, 2024 and ending June 30, 2025.
The Prime Fee Schedule associated with Renewal Amendment No. 3 was approved effective July 1, 2023. The Prime Fee Schedule rates will not increase through June 30, 2025, when the proposed Renewal Amendment No. 4 will expire. Upon approval of Renewal Amendment No. 4, the Prime Fee Schedule will continue as “Exhibit C” to the Self-Insured Claims Administration Amendment.
ALTERNATIVES:
Approve staff’s recommendation to execute Renewal Amendment No. 4 to agreement.
Disapprove staff recommendation.
Provide further direction to staff.
FISCAL IMPACT:
If the City Council approves the one-year extension to the Self-Insured Claims Administration Agreement, the associated amount of $44,601 will be incorporated into the FY 2024-25 baseline 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: Mike Haraway, Employee & Labor Relations Manager Fiscal Impact Reviewed by: Vilko Domic, Assistant City Manager Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
ATTACHMENTS:
Self-Insured Claims Administration Agreement – Fully Executed (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 – Fully Executed (July 1, 2023 through June 30, 2024) Renewal Amendment No. 4 - (July 1, 2024 through June 30, 2025) Prime Fee Schedule
Resolution
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CITY OF COMMERCE
AGENDA REPORT
Item No.