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MODESTO CITY COUNCIL
www.modestogov.com
AGENDA
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, June 14, 2022 at 5:30 PM
*Roll Call - Councilmembers Escutia-Braaton, Kenoyer, Madrigal, Ricci, Wright, Mayor Zwahlen
* Some Councilmembers may be participating in the meeting remotely via teleconferencing or other electronic means consistent with the AB 361.
THIS MEETING WILL BE PHYSICALLY OPEN TO THE PUBLIC AND BY ZOOM
VIDEO CONFERENCING AND TELEPHONE
In order to minimize the spread of the COVID-19 virus, this meeting will be conducted pursuant to AB 361, which amended the Brown Act’s teleconferencing provisions.
You may observe a livestream of the meeting at http://media.modestogov.com. You may also participate in the meeting as indicated below.
PARTICIPATING IN CITY COUNCIL MEETINGS IN CONFORMANCE WITH AB 361
The City of Modesto is providing alternatives to view Council meetings and provide public comments. If you wish to make either a general public comment or to comment on a specific agenda item, you may use one of the following options:
SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Councilmembers - 1 -
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and placed in the record, but will not be read aloud during the meeting. Written comments must be received by 3:00 p.m. on the day of the meeting.
VIRTUAL PARTICIPATION BY ZOOM VIDEO
CONFERENCING AND TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view and participate in Council meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
Enter the following link into an Internet Browser
https://us02web.zoom.us/j/86945970570,
Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID 869 4597 0570
Passcode 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Council meeting.
Joining the City Council meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can participate by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID 869 4597 0570 Passcode 84326
Providing Public Comment on Zoom and by Telephone
The Mayor will request public comment during the Public Comment periods on the meeting agendas and during each Public Hearing and Regular Calendar Item on the Council Agenda.
Once the Mayor has announced the public comment period, please do one of the following.
USING A COMPUTER OR SMART PHONE APP:
Click on the “Raise Hand” feature in the webinar controls. This will notify City staff that you have raised your hand.
City staff will unmute your microphone when it is your turn to provide public comment.
A prompt will appear to confirm you would like to be unmuted and then you will have three minutes to provide public comment.
Once your public comment has ended, you will be muted again.
USING A REGULAR PHONE (not using a computer or smart phone APP):
Dial *9 (star 9), this will notify City staff that you have “raised your hand” for public comment.
City staff will unmute your microphone when it is your turn to provide - 2 -
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public comment.
You will hear “you are unmuted” and then you will have three minutes to provide public comment.
Once your public comment has ended, you will be muted again. If your phone is unmuted, and you are unable to be heard, the host may ask that you Dial *6 to toggle mute on/off in Zoom.
Additional Zoom resources/support
Please visit Zoom’s website support page on helpful tips to prepare for the meeting:
https://support.zoom.us/hc/en-us/categories/201146643
Pledge of Allegiance to the Flag
Invocation: Anthony Bargas, The Center Church
City Clerk’s Announcements
Declaration of Conflicts of Interest
ACKNOWLEDGEMENTS AND PRESENTATIONS
1. Presentation of Proclamation proclaiming June 19, 2022, as Juneteenth in the City of Modesto. (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected]
2. Proclamation recognizing Society for Disabilities 75th Anniversary. (Funding Source:
Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected]
PUBLIC COMMENT PERIOD
Please refer to special public comment instructions above.
Three-minute time limit per speaker.
Only interested persons in the audience may present these matters. Under State law, Councilmembers may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Councilmember or the Council itself may take action to direct staff to place a matter of business on a future agenda.
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CONSENT ITEMS – ROLL CALL VOTE REQUIRED
Information concerning the consent items listed below has been forwarded to each Councilmember prior to this meeting for study. Unless some member of the audience or Councilmember has a question concerning an item and asks that it be withdrawn from the consent list, the Council approves the items at one time. The action taken by the Council in approving consent items is set forth in the explanation of this individual item.
Any and all of the following agenda items are subject to action by the Modesto City Council.
This Agenda is on file at the Modesto-Stanislaus Library Reference Room, 1500 I Street, Modesto, in the City Clerk’s Office, Sixth Floor, 10th Street Place, and is available on the City’s Web site at www.modestogov.com.
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
CONSENT ITEMS
An item may be removed from consent and discussed at the request of an audience member or Councilmember.
Consent
3. Consider approving the minutes from the June 7, 2022 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
Motion approving the minutes from the June 7, 2022 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] Consent
4. Consider approving a resolution continuing to authorize remote teleconference meetings pursuant to Assembly Bill 361. (Funding Source: Not Applicable) Staff Recommendation:
Resolution continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.
CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] - 4 -
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Consent
5. Consider approving a Second Amendment to extend the completion date to December 31, 2022, for the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project (Funding Source:
Not Applicable)
Staff Recommendation:
Resolution approving a no-cost Second Amendment to extend the completion date to December 31, 2022, for the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project, and authorizing the City Manager, or his designee to execute the Amendment to Agreement.
CED; John Rawles, 209-577-5253, [email protected]
Consent
6. Consider approving a First Amendment with Ferguson Waterworks for the Purchase of Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves and Sewer Materials for a revised estimated annual amount from $340,000 to $575,000 and a total revised amount not to exceed from $1,700,000 to $2,405,000 over five years. (Funding Source:
Water and Wastewater Fund)
Staff Recommendation:
Resolution approving a First Amendment with Ferguson Waterworks for the Purchase of Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves and Sewer Materials for a revised estimated annual amount from $340,000 to $575,000 and a total revised amount not to exceed from $1,700,000 to $2,405,000 over five years, and authorizing the Director Finance or her designee to execute the Amendment; and authorizing the Director of Finance, or her designee, the ability to add parts based on the department’s needs, ensuring the total cost does not exceed the authorized amount.
FINANCE DEPARTMENT; Cynthia Kline, 209-577-5412, [email protected] Consent
7. Consider approving the Award of Bid and Agreement for the Furnishing of Personal Protection Equipment (PPE) Cleaning, Inspection and Repair Services to Scotts PPE Recon Inc., Lodi, CA for the Modesto Fire Department, for a two-year Agreement, with three one-year extension options, for an estimated annual amount of $50,000 and total amount not to exceed $250,000 over five years. (Funding Source: General Fund) Staff Recommendation:
Resolution approving the Award of Bid and Agreement for the Furnishing of Personal Protection Equipment (PPE) Cleaning, Inspection and Repair Services to Scotts PPE Recon Inc., Lodi, CA for the Modesto Fire Department, for a two-year Agreement, with three one-year extension options, for an estimated annual amount of $50,000 and total amount not to exceed $250,000 over five years, and authorizing the City Manager, or his designee to execute the Agreement.
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FIRE DEPARTMENT; Alan Ernst, 209-572-9590, [email protected] Consent
8. Consider approving the Award of Proposal and Agreement for Workers’ Compensation Claims Management Services to Athens Administrators, Inc., Concord, California, for a two-year Agreement with three, one-year extension options, for an estimated annual amount of $480,430 and a total amount not to exceed $2,511,820 over five years. (Funding Source: Workers’ Compensation Fund)
Staff Recommendation:
Resolution approving the Award of Proposal and Agreement for Workers’ Compensation Claims Management Services to Athens Administrators, Inc., Concord, California, for a two-year Agreement with three, one-year extension options, for an estimated annual amount of $480,430 and a total amount not to exceed $2,511,820 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.
HUMAN RESOURCES; Joe Rodriguez, 209-577-5446, [email protected] Consent
9. Consider rejecting all bids received for Request for Bid No. 2122-23 for Building Intrusion Alarm Services, and authorizing staff, to re-evaluate and re-issue at a future date. (Funding Source: Various Funds)
Staff Recommendation:
Resolution considering rejecting all bids received for Request for Bid (RFB) No. 2122-23 for Building Intrusion Alarm Services and authorizing staff to reevaluate and re-issue at a future date.
PUBLIC WORKS; Patrick Crowley, 209-342-2274, [email protected] Consent
10. Consider approving a Third Amendment to the Agreement with e-Builder, Inc., Plantation, FL, for a one-year extension for Construction Management Software in an amount not to exceed $79,013 for System Maintenance, Support and Licensing. (Funding Source: Capital Improvement Support Fund)
Staff Recommendation:
Resolution approving a Third Amendment to the Agreement with e-Builder, Inc., Plantation, FL, for a one-year extension for Construction Management Software in an amount not to exceed $79,013 for System Maintenance, Support and Licensing, and authorizing the City Manager, or his designee, to execute the Amendment.
UTILITIES; Robert Davalos, 209-571-5869, [email protected]
COUNCIL COMMENTS & REPORTS
CITY MANAGER COMMENTS & REPORTS
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HEARINGS
Published in the Modesto Bee on May 26, 2022.
11. Hearing to consider approving the Annual Rate Adjustment to the Maximum Rate Schedule for Implementation of Senate Bill (SB) 1383 provisions and Solid Waste Collection Service Contractual Agreements provided by solid waste haulers for an increase of $8.40 per month for residential services, an increase of $9.95 per cubic yard for commercial services, and an increase of $8.05 per pull for industrial services to become effective July 1, 2022, and an increase of $5.40 per month for residential services, an increase of $25 per cart (recycling/organics) for commercial services to become effective January 1, 2023, and rescinding Resolution No. 2021-217, and increasing the fuel rates by $0.33 for residential and $0.47 for commercial to become effective on July 1, 2022, and rescinding Resolution No. 2021-217. (Funding Source:
Solid Waste Funds, Compost Funds)
Staff Recommendation:
Resolution approving the Annual Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the garbage haulers and by R3 Consultants, for an increase of $8.40 per month for residential services, an increase of $9.95 per cubic yard for commercial services, and an increase of $8.05 per pull for industrial services to become effective July 1, 2022, and an increase of increase of $5.40 per month for residential services, an increase of $25 per organics and/or recycling cart (collected once a week) for commercial services to become effective January 1, 2023 and rescinding Resolution No. 2021-217 for the July 1, 2022 and the January 1, 2023 rate adjustment.
Resolution approving a quarterly fuel rate adjustment to the maximum rate schedule for City Solid Waste Collection Services provided by the haulers, for an increase of $0.33 per month for residential services, and an increase of $0.47 per cubic yard for commercial services, to become effective July 1, 2022, and rescinding Resolution No. 2021-217 for the July 1, 2021 Annual Rate Adjustment.
PUBLIC WORKS; Rosene Salmo, 209-577-5453, [email protected]
NEW BUSINESS
12. Consider approving a resolution authorizing the City of Modesto to utilize the services of David Savidge on an interim basis to fulfill the duties of Wastewater Division Manager for a limited duration of up to six months or until the recruitment is completed, whichever is first. (Funding Source: Wastewater Fund- 4210) Staff Recommendation:
Resolution authorizing the City of Modesto to utilize the services of David Savidge on an interim basis to fulfill the duties of Wastewater Division Manager for a limited duration of up to six months or until the recruitment is completed, whichever is first; and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of the action.
HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] - 7 -
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13. Consider adopting a Finding of Conformance for the JM Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project, approving a Grant Agreement in the amount of $10,000,000 with the California State Water Resources Control Board; approving a Consultant Agreement with Woodard & Curran, Inc., Sacramento, CA, for Engineering Design Services in the amount of $1,914,421 for the identified scope of services plus $191,443 in additional services, if needed, for a total amount not to exceed $2,105,864, and amending the Fiscal Year 2022/23 Capital Improvement Program Budget in the amount of $9,101,535. (Funding Source: Water & Wastewater Funds)
Staff Recommendation:
Resolution finding that the JM Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project is within the scope of the project covered by the Final Environmental Impact Report for the City of Modesto Wastewater Master Plan (SCH # 2013082006).
Resolution approving a Grant Agreement for $10,000,000 with State Water Resources Control Board to receive the Proposition 1 Round 2 Stormwater Grant for the JM Pike Park Stormwater to Sanitary Sewer Cross Connection Removal; authorizing the City Manager, or his designee, to execute all grantrelated documents and enter into an Agreement to receive the grant funds, when awarded; and authorizing the Director of Finance to be the signatory of grant invoice forms during requests for reimbursements.
Resolution approving an Agreement with Woodard and Curran Inc., Sacramento, CA, for Engineering Design Services for the JM Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project in the amount $1,914,421 for the identified scope of services, plus $191,443 in additional services, if needed, for a total amount not to exceed $2,105,864, and authorizing the City Manager, or his designee, to execute the Agreement.
Resolution amending the Fiscal Year 2022/23 Capital Improvement Program budget in the amount of $9,101,535 to be transferred into the projects 101313 and 100851 from Wastewater and Water Fund Reserves in order to fully fund the JM Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project.
UTILITIES; Cristian Ciotau, 209-577-5260, [email protected]
MATTERS TOO LATE FOR THE AGENDA
These may be presented by members of the City Council and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that (1) there is a need to take immediate action, and (2) that the need for action came to the City’s attention after the agenda was posted.
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ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
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MODESTO CITY COUNCIL
www.modestogov.com
MINUTES
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, June 07, 2022 at 5:30 PM
Roll Call – Present: Councilmembers Escutia-Braaton, Kenoyer, Madrigal (arrived 5:36 PM), Ricci, Wright, Zoslocki, Mayor Zwahlen
Pledge of Allegiance to the Flag
City Clerk’s Announcements: City Clerk reported 1) No email correspondence was received and 2) Public Comment is limited to three minutes and blue speaker cards are located in the Lobby of our Council Chambers.
Declaration of Conflicts of Interest: None
Reports from Closed Session: Mayor Zwahlen reported City Council has concluded the performance evaluation of the City Attorney. Council unanimously noted City Attorney Sanchez is delivering outstanding City Attorney services. Mayor Zwahlen thanked City Attorney Sanchez for the services.
ACKNOWLEDGEMENTS AND PRESENTATIONS
1. Presentation of Proclamation declaring June 2022 as Men's Health Month. (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected] ACTION: Mayor Zwahlen read the Proclamation into the record declaring June 2022 as Men's Health Month.
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2. Presentation of Proclamation declaring June 2022 as Pride Month. (Funding Source:
Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected] ACTION: Mayor Zwahlen presented Proclamation declaring June 2022 as Pride Month.
PUBLIC COMMENT PERIOD
Louisa Bryant spoke regarding her Mold Inspection Report. She requested assistance with the issue, and provided Council with 12 page copy of a mold report. She stated she was denied the opportunity to be relocated and her health has suffered due to mold exposure. Mayor Zwahlen referred the matter to Scotty Douglass, Deputy City Manager, to follow-up.
Emerson Drake stated that he attended a recent MID Meeting where John Mensinger spoke about the Modesto Water Treatment plants. He spoke about concerns regarding the distribution system, sewer and garbage rates and where the fees will be distributed to, and communication with the public on the water issues. Howard Carman spoke about Covid and the lack of testing protocol with the Street Team services. He spoke about concerns over funding for Covid testing and the need and want for the Street Team to go back to work. Mayor Zwahlen referred the matter to Scotty Douglass and Allison Van Guilder to answer his questions.
Vice Mayor Wright reiterated that it would be worked on the following morning. Ramon Rodriguez spoke about the homeless camps and asked for affordable housing in a formal municipal park. He would like to see affordable housing units that combines with the parks.
CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS 3-9, 11-15, 17: (Wright/Kenoyer; 6/0)
CONSENT ITEMS
Consent
3. Consider approving the minutes from the May 24, 2022 Council Meeting. (Funding Source: Not Applicable)
Motion approving the minutes from the May 24, 2022 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Kenoyer; 6/0) Motion approving the minutes from the May 24, 2022 Council Meeting.
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Consent
4. Consider calling for the holding of a Municipal Election to be held on November 8, 2022, requesting the Stanislaus County Board of Supervisors to Consolidate the City of Modesto Municipal Election to be held on November 8, 2022, requesting the services of the Registrar of Voters, Elections Division of the County of Stanislaus to conduct the Election on behalf of the City of Modesto and the Modesto City School Board; and adopting regulations for candidates for elective office pertaining to candidates statements submitted to the voters at an Election to be held on Tuesday, November 8, 2022. (Funding Source: Election Fund)
Resolution of the City of Modesto calling for the holding of a Municipal Election to be held on November 8, 2022, requesting from the Stanislaus County Board of Supervisors to Consolidate the City of Modesto Municipal Election to be held on November 8, 2022, requesting the services of the Registrar of Voters, Elections Division of the County of Stanislaus to Conduct the Election on behalf of the City of Modesto and the Modesto City Schools Board.
Resolution adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at an Election to be held on Tuesday, November 8, 2022.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-248 of the City of Modesto calling for the holding of a Municipal Election to be held on November 8, 2022, requesting from the Stanislaus County Board of Supervisors to Consolidate the City of Modesto Municipal Election to be held on November 8, 2022, requesting the services of the Registrar of Voters, Elections Division of the County of Stanislaus to Conduct the Election on behalf of the City of Modesto and the Modesto City Schools Board.
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-249 adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at an Election to be held on Tuesday, November 8, 2022.
Consent
5. Consider receiving the 2022 Local Agency Biennial Notice and directing staff to conduct a review of the City’s Conflict of Interest Code and the filing of a Biennial Notice with the City Clerk regarding such review, as required by the Political Reform Act. (Funding Source: Not Applicable)
Motion directing staff to make a formal review of the City’s Conflict of Interest Code, pursuant to the Political Reform Act, and if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to approve any required amendments.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Kenoyer; 6/0) Motion directing staff to make a formal review of the City’s Conflict of Interest Code, pursuant to the Political Reform Act, and if #3..
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necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to approve any required amendments.
Consent
6. Consider approving the recommended budget adjustments to Fiscal Year 2021-22 Annual Operating and Capital Improvement Program Budgets. (Funding Source:
Various Funds)
Resolution amending the Fiscal Year 2021-22 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this resolution.
BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-250 amending the Fiscal Year 2021-22 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this resolution.
Consent
7. Consider acknowledging Receipt of Notification of the Annual Inflationary Adjustment for Capital Facilities Fees and Development User Fees Fiscal Year 2022-23. (Funding Source: Capital Facilities Fees and Development User Fees) Resolution acknowledging Receipt of Notification of the Annual Inflationary Adjustment for Capital Facilities Fees and Development User Fees Fiscal Year 2022-23.
CED; Jessica Hill, 209-577-5321, [email protected]
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-251 acknowledging Receipt of Notification of the Annual Inflationary Adjustment for Capital Facilities Fees and Development User Fees Fiscal Year 2022-23.
Consent
8. Consider approving the updates to the City’s Debt Management Policy. (Funding Source: Not Applicable)
Resolution approving the updates to the City’s Debt Management Policy.
FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-252 approving the updates to the City’s Debt Management Policy.
Consent
9. Consider accepting the Monthly Investment Report for March 2022. (Funding Source:
Various Funds)
Motion accepting the Monthly Investment Report for March 2022.
FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
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ACTION: (Wright/Kenoyer; 6/0) Motion accepting the Monthly Investment Report for March 2022.
Removed from Consent
10. Consider accepting an informational report for the April 2022 Accounts Payable Payment Register and Void report. (Funding Source: Not Applicable) Motion accepting an informational report for the April 2022 Accounts Payable Payment Register and Void report.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Escutia-Braaton; 6/0) Motion accepting an informational report for the April 2022 Accounts Payable Payment Register and Void report.
Consent
11. Consider accepting an informational report on the January and February 2022 grant applications and awards. (Funding Source: Not Applicable) Motion accepting an informational report for the January and February 2022 grant applications and awards.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Kenoyer; 6/0) Motion accepting an informational report for the January and February 2022 grant applications and awards.
Consent
12. Consider approving the Fiscal Year 2022-2023 Appropriation Limit, which is an annual spending limit calculation that identifies the maximum amount of appropriations for publicly funded programs. (Funding Source: Not Applicable) Resolution establishing the appropriation limit for the Fiscal Year 2022-2023 annual budget.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-253 establishing the appropriation limit for the Fiscal Year 2022-2023 annual budget.
Consent
13. Consider approving the First Amendment increasing the Agreement amount with the Public Group aka Public Surplus for the Furnishing of Online Auction Services by $12,000 annually from $18,000 to a revised annual estimated amount of $30,000 and for a revised total amount not to exceed of $114,000 over five years. (Funding Source:
Various Funds)
Resolution approving the First Amendment increasing the Agreement amount with the Public Group aka Public Surplus for the Furnishing of Online Auction #3..
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Services by $12,000 annually from $18,000 to a revised amount estimated amount of $30,000 and for a revised total amount not to exceed $114,000 over five years and authorizing the City Manager or his designee to execute the amendment.
FINANCE DEPARTMENT; Cynthia Kline, 209-577-5412, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-254 approving the First Amendment increasing the Agreement amount with the Public Group aka Public Surplus for the Furnishing of Online Auction Services by $12,000 annually from $18,000 to a revised amount estimated amount of $30,000 and for a revised total amount not to exceed $114,000 over five years and authorizing the City Manager or his designee to execute the amendment.
Consent
14. Consider approving payment of various Equipment Maintenance Agreements for Fiscal Year 2022-2023 with multiple equipment manufacturers for all City Departments, for an annual cost not to exceed $706,022; and authorizing the City Manager, or his designee to execute Equipment Maintenance Agreements associated with the items in Exhibit B – Fiscal Year 2022-2023 Equipment Maintenance Agreements (more than $50,000). (Funding Source: Various Funds)
Resolution approving payment of various Equipment Maintenance Agreements for Fiscal Year 2022-2023 with multiple equipment manufacturers for all City Departments, for an annual estimated cost not to exceed $706,022; and authorizing the City Manager, or his designee, to execute Equipment Maintenance Agreements associated with the items in Exhibit B – Fiscal Year 2022-2023 Equipment Maintenance Agreements (more than $50,000).
FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-255 approving payment of various Equipment Maintenance Agreements for Fiscal Year 2022-2023 with multiple equipment manufacturers for all City Departments, for an annual estimated cost not to exceed $706,022; and authorizing the City Manager, or his designee, to execute Equipment Maintenance Agreements associated with the items in Exhibit B – Fiscal Year 2022-2023 Equipment Maintenance Agreements (more than $50,000).
Consent
15. Consider approving the payment of Hardware and Software Maintenance Support Agreements for Fiscal Year 2022-2023 for an estimated annual cost not to exceed $6,282,787; and Authorizing the City Manager, or his designee to execute routine Renewal Agreements associated with the items in Exhibit B - Hardware/ Software Maintenance Support Agreements for Fiscal Year 2022-2023 (Over $50,000). (Funding Source: Information Technology Fund and Various Funds)
Resolution approving the payment of Hardware and Software Maintenance Support Agreements for Fiscal Year 2022-2023 for an estimated annual cost not #3..
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to exceed $6,282,787; and to authorize the City Manager, or his designee to execute routine Renewal Agreements associated with Exhibit B.
IT; Kevin Harless, 209-571-5593, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-256 approving the payment of Hardware and Software Maintenance Support Agreements for Fiscal Year 2022-2023 for an estimated annual cost not to exceed $6,282,787; and to authorize the City Manager, or his designee to execute routine Renewal Agreements associated with Exhibit B.
Removed from Consent
16. Consider approving the Sole Source Purchase Order with StarChase for 25 Global Positioning System tracking units for law enforcement use for a total cost not to exceed $161,698. (Funding Source: Traffic Safety Fund)
Resolution approving the Sole Source Purchase Order with StarChase for 25 Global Positioning System tracking units for law enforcement use for a total cost not to exceed $161,698; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.
POLICE DEPARTMENT; Steven Stanfield, 209-572-9500, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-257 approving the Sole Source Purchase Order with StarChase for 25 Global Positioning System tracking units for law enforcement use for a total cost not to exceed $161,698; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.
Consent
17. Consider approving an Agreement with National Plant Services, Inc., Hayward, CA, for Pipe Inspection and Assessment Services for the River Trunk Inspection and Assessment Project in the amount of $163,000, plus $16,300 for additional services, if needed, for a total amount not to exceed $179,300 and amending the FY 2021/22 Multi-Year Program Budget in the amount of $189,300. (Funding Source: Wastewater Fund)
Resolution approving an Agreement with National Plant Services, Inc., Hayward, CA, for Pipe Inspection and Assessment Services for the River Trunk Inspection and Assessment Project in the amount of $163,000 for the identified scope of services, plus $16,300 in additional services, if needed, for a total amount not to exceed $179,300 and authorizing the City Manager, or his designee, to execute the Agreement.
Resolution amending the Fiscal Year 2021/22 Multi-Year Program Budget in the amount of $189,300 to be transferred into the project from Wastewater Fund Reserves in order to fully fund the River Trunk Inspection and Assessment Project.
UTILITIES; Robert Englent, 209-577-6222, [email protected] ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-258 approving an Agreement with National Plant Services, Inc., Hayward, CA, for Pipe Inspection and Assessment #3..
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Services for the River Trunk Inspection and Assessment Project in the amount of $163,000 for the identified scope of services, plus $16,300 in additional services, if needed, for a total amount not to exceed $179,300 and authorizing the City Manager, or his designee, to execute the Agreement.
ACTION: (Wright/Kenoyer; 6/0) Resolution 2022-259 amending the Fiscal Year 2021/22 Multi-Year Program Budget in the amount of $189,300 to be transferred into the project from Wastewater Fund Reserves in order to fully fund the River Trunk Inspection and Assessment Project.
COUNCIL COMMENTS & REPORTS
Council Member Escutia-Braaton spoke about various Community Events that she attended that reminded her of the beauty of what is Modesto; highlighting the Assyrian Youth Celebration who give back to the community, a community event in support of Ukraine with other Council members, Latino Leadership initiative, Grand Opening of Dave and Busters. She encouraged the public to participate, and spoke of regrets not being at the First Friday that has returned but looking forward to the next one.
Council Member Ricci spoke regarding his attendance at the Ukraine community event along with other Council Members. He reminded the public of the local elections and casting your vote. Spoke about concern regarding the homeless issues and hopeful they can start the approval soon for safe parking. He also stated the Ranger Program will launch sometime this summer, and ishopeful they can continue expanding homeless assistant program to include a parks program to help clean up parks and restrooms. He also spoke about successes like the Kansas house, Clarion Workforce Housing Project, and services and shelter at Bavarian and Gospel Mission. He also stated the City is working on an Ordinance regarding abandoned commercial buildings. He also stated they are working on an Ordinance to help neighbors who have been impacted by auto inventory parked in front of houses.
Councilmember Kenoyer stated she regretted missing all of the openings as it was something she really enjoyed. She stated she was able to attend the Ukraine event and felt it was wonderful, and is looking forward to attending more events.
Mayor Zwahlen commented on her honor to be invited to the Modesto Police Department’s 10k Event with money raised to transition children's bedrooms. She stated it was a surprise to the children and the smile of the children’s faces were delightful. Mayor Zwahlen stated her appreciation for all the efforts of staff to strengthen relationships with our community.
Vice Mayor Wright attended the Airport Neighborhood Collaborative Summer Community Potluck. He spoke about its’ need of support and it was nice to see Parks and other County staff in attendance. He stated he was happy to see sidewalks and reports about multiple housing projects in the pipeline. He also spoke about the 7 A.M. Good Day Sacramento show that spoke with Chris Murphy at the Graffiti Museum who did a great job speaking about Modesto, and noted the interview can be found on the Good Day Sacramento’s website. He is looking forward to the event on Friday.
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Councilmember Escutia-Braaton stated that Councilmember Kenoyer will be honored as Grand Marshall at the Graffiti event and congratulated her. Mayor Zwahlen reiterated the congratulations.
Councilmember Kenoyer stated she was honored and humbled by accolades she has been receiving. Being Grand Marshall is an honor and having her own plaque is an honor.
CITY MANAGER COMMENTS & REPORTS
None.
HEARINGS
Published in the Modesto Bee on May 27, 2022
18. Hearing to consider and approve the Final Proposed Fiscal Year 2022-23 Operating and Multi-Year Budget and Capital Improvement Program for the City and related Resolutions. (Funding Source: All City Funds)
Resolution approving the adoption of the Fiscal Year 2022-23 Annual and Multi-Year Operating Budgets and the 2022-23 Capital Improvement Program for the City of Modesto and the related Inter-Fund Transfers. Resolution approving the Budget Principles, Policy on Workers Compensation Fund for FY 2022-23, and the Operating Budget Policy as outlined in the Fiscal Year 2022-23 Final Proposed Budget.
Resolution amending the Position Allocation for Fiscal Year 2022-23 as adopted in the Operating Budget.
Resolution amending the Classification Plan for the City of Modesto to create the classification of Police Administrator.
Resolution approving a Leave Bank Purchase option for Modesto City Employees, Modesto Confidential and Management Association, and Modesto Police and Fire Nonsworn Association and authorizing the City Manager or his designee to execute the transactions.
Resolution adopting the Council Unfunded Pension Liability Policy.
BUDGET; Stephan Christensen, 209-577-5390, [email protected] ACTION: (Wright/Escutia-Braaton; 6/0) Resolution 2022-260 approving the adoption of the Fiscal Year 2022-23 Annual and Multi-Year Operating Budgets and the 2022-23 Capital Improvement Program for the City of Modesto and the related InterFund Transfers.
ACTION: (Wright/Escutia-Braaton; 6/0) Resolution 2022-261 approving the Budget Principles, Policy on Workers Compensation Fund for FY 2022-23, and the Operating Budget Policy as outlined in the Fiscal Year 2022-23 Final Proposed Budget.
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ACTION: (Wright/Escutia-Braaton; 6/0) Resolution2022-262 amending the Position Allocation for Fiscal Year 2022-23 as adopted in the Operating Budget.
ACTION: (Wright/Escutia-Braaton; 6/0) Resolution 2022-263 amending the Classification Plan for the City of Modesto to create the classification of Police Administrator.
ACTION: (Wright/Escutia-Braaton; 6/0) Resolution 2022-264 approving a Leave Bank Purchase option for Modesto City Employees, Modesto Confidential and Management Association, and Modesto Police and Fire Nonsworn Association and authorizing the City Manager or his designee to execute the transactions.
ACTION: (Wright/Escutia-Braaton; 6/0) Resolution 2022-265 adopting the Council Unfunded Pension Liability Policy.
NEW BUSINESS
19. Consider approving a successor Memorandum of Understanding (MOU) between the City of Modesto and Modesto City Fire Fighters Association (MCFFA) for a term of July 1, 2022 to June 30, 2024; granting salary changes and benefit offerings to nonsworn unrepresented management and confidential employees including charter officers, executives and unrepresented sworn fire employees; and rescinding Resolution Nos. 2020-310 and 2021-346. (Funding Source: General Fund) Resolution approving a proposed agreement including language changes for a successor Memorandum of Understanding (MOU) between the City of Modesto and Modesto City Fire Fighters Association (MCFFA) for a term of July 1, 2022 to June 30, 2024, authorizing the City Manager to prepare and execute the successor MOU and authorizing the City Manager or his designee to take the necessary administrative action to implement the agreement. Resolution granting salary changes to Unrepresented Sworn Fire Management employees, effective July 22, 2022 and Non-Sworn Unrepresented Management and Confidential employees including Charter Officers and Executives, effective November 26, 2019; rescinding Resolution No. 2020-310, and authorizing the City Manager or his designee to take the necessary administrative action to implement the changes.
Resolution updating benefit offerings for Unrepresented Sworn Fire Management and Non-Sworn Management and Confidential employees, including Charter Officers and Executives; rescinding Resolution No. 2021-346 and authorizing the City Manager or his designee to take the necessary administrative action to implement the changes.
HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] ACTION: (Ricci/Escutia-Braaton; 6/0) Resolution 2022-266 approving a proposed Agreement including language changes for a successor Memorandum of Understanding (MOU) between the City of Modesto and Modesto City Fire Fighters Association (MCFFA) for a term of July 1, 2022 to June 30, 2024, authorizing the City #3..
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Manager to prepare and execute the successor MOU and authorizing the City Manager or his designee to take the necessary administrative action to implement the Agreement.
ACTION: (Ricci/Escutia-Braaton; 6/0) Resolution 2022-267 granting salary changes to Unrepresented Sworn Fire Management employees, effective July 22, 2022 and Non-Sworn Unrepresented Management and Confidential employees including Charter Officers and Executives, effective November 26, 2019; rescinding Resolution No. 2020-310, and authorizing the City Manager or his designee to take the necessary administrative action to implement the changes.
ACTION: (Ricci/Escutia-Braaton; 6/0) Resolution 2022-268 updating benefit offerings for Unrepresented Sworn Fire Management and Non-Sworn Management and Confidential employees, including Charter Officers and Executives; rescinding Resolution No. 2021-346 and authorizing the City Manager or his designee to take the necessary administrative action to implement the changes.
MATTERS TOO LATE FOR THE AGENDA
None.
ADJOURNMENT
This meeting adjourned at 7:25 p.m.
CLOSED SESSION
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Pursuant to Section 54957 of the Government Code)
Title: City Attorney
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: Cherry v. City of Modesto
Case No. 1:18-CV-01268
Attest:____________________________
Diane Nayares-Perez, City Clerk
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
June 14, 2022
Date: June 7, 2022
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284, [email protected] DESCRIPTION:
Consider approving a resolution continuing to authorize remote teleconference meetings pursuant to Assembly Bill 361. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This item is related to the 2020-2025 Strategic Plan goal of promoting trust and engagement.
BACKGROUND:
On March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of the novel coronavirus disease 2019 (“COVID-19”). On March 19, 2020, the City Council adopted Resolution Number 2020-140, ratifying the proclamation of a local emergency by the Director of Emergency Services due to COVID-19.
All meetings of the City Council and the City’s other legislative bodies are open and public, as required by the Ralph M. Brown Act, Government Code section 54950 et seq., so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business. On March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means in order to slow the spread of COVID-19. As a result of Executive Order N-29-20, staff set up virtual meetings for all City Council meetings and other City legislative bodies. On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which, effective September 30, 2021, ended the provisions of Executive Order N-29-20 that allowed local legislative bodies to conduct meetings telephonically or by other means.
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City Council, June 14, 2022
Assembly Bill 361-Continued Remote Teleconference Meetings
DISCUSSION:
On September 16, 2021, the Governor signed Assembly Bill (AB) 3611 (2021) which allows for local legislative bodies to continue to conduct meetings via teleconferencing under specified conditions and includes a requirement that the City Council make specified findings. AB 361 took effect immediately. In addition to other circumstances, the City and its legislative bodies will be allowed to continue to meet remotely during a declared state of emergency when state or local health officials have imposed or recommended measures to promote social distancing, or when the Council finds that meeting in person would present imminent risks to the health or safety of attendees.
On Tuesday, September 28, 2021, the City Council adopted Resolution No. 2021-370, finding that a state of emergency exists and that the County of Stanislaus Health Officer had imposed and recommended social distancing measures for residents within the City. On Tuesday, October 5, 2021, the City Council held their first meeting in accordance with the requirements of Government Code section 54953(e).
In order to continue to hold remote meetings, the City Council must reconsider the state of emergency and declare every 30 days that either (i) the state of emergency continues to directly impact the ability of the members to meet safely in person, or (ii) State or local officials continue to impose or recommend measures to promote social distancing.
The City has reconsidered the state of emergency, as declared by the Governor, which continues in existence. In addition, health officials continue to recommend measures to slow the spread of COVID-19. The Stanislaus County Public Health Services Agency still strongly recommends community members to wear a mask in any indoor public place, along with other recommendations that promote social distancing in indoor spaces. These measures can be found here: http://schsa.org/coronavirus/guidances/face-coverings/.
The proposed resolution includes the necessary findings in order for the City Council and the other legislative bodies of the City to continue holding remote teleconference meetings pursuant to AB 361.
FISCAL IMPACT:
There is no cost associated with this item.
COMMITTEE RECOMMENDATION:
This agenda item was not presented to a Council Committee.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.
1 Assembly Bill No. 361 - An act to add and repeal Section 89305.6 of the Education Code, and to amend, repeal, and add Section 54953 of, and to add and repeal Section 11133 of, the Government Code, relating to open meetings, and declaring the urgency thereof, to take effect immediately. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB361 #4..
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City Council, June 14, 2022
Assembly Bill 361-Continued Remote Teleconference Meetings
Approved by:
Jose M. Sanchez, City Attorney
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Assembly Bill 361
5109882.1
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-XX
RESOLUTION CONTINUING TO AUTHORIZE REMOTE
TELECONFERENCE MEETINGS OF THE CITY OF MODESTO PURSUANT TO ASSEMBLY BILL 361
WHEREAS, the City of Modesto (the “City”) is committed to preserving and promoting public access and participation in meetings of the legislative bodies; and WHEREAS, all meetings of the City are open and public, as required by the Ralph M.
Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City conduct their business; and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of the novel coronavirus disease 2019 (“COVID-19”); and WHEREAS, on March 19, 2020, the City Council adopted Resolution Number 2020-140, ratifying the proclamation of a local emergency by the Director of Emergency Services due to COVID-19; and
WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means; and
WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08- 21, which, effective September 30, 2021, repealed the provisions of Executive Order N29-20 that allowed local legislative bodies to conduct meetings telephonically or by other means; and
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WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 (2021) (“AB 361”), which allows for remote teleconferencing participation in meetings by members of a legislative body without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition of AB 361 is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, AB 361 further requires that state or local officials have imposed or recommended measures to promote social distancing, or, that the legislative body meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, on September 28, 2021, the City Council adopted Resolution No. 2021-370 authorizing remote teleconference meetings pursuant to AB361 (Government Code section 54953(e)); and
WHEREAS, the City is required to make certain findings every thirty (30) days to continue teleconferencing under Government Code section 54953(e)(3), including reconsideration of the state of emergency declared by the Governor pursuant to Government Code section 8625, and whether State or local officials continue to impose or recommend measures to promote social distancing; and #4..
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WHEREAS, the City Council has considered the circumstances of the Governor’s state of emergency proclamation pursuant to Government Code section 8625, which remains active; and
WHEREAS, on March 8, 2022, the County of Stanislaus Board of Supervisors terminated the Declaration of a Local Health Emergency that was issued on March 11, 2020; and
WHEREAS, the Stanislaus County Public Health Services Agency still strongly recommends community members to wear a mask while in “any indoor public space” along with other recommendations intended to promote social distancing measures; and WHEREAS, the City Council, acting for itself and for the benefit of all of the City’s commissions, committees, and other bodies (collectively referred to as the “Legislative Bodies”), does hereby find that the Legislative Bodies shall continue to conduct their meetings without compliance with Government Code section 54953(b)(3), as authorized by Government Code section 54953(e), and that the Legislative Bodies shall continue to comply with the requirements to provide the public with access to the meetings as prescribed in Government Code section 54953(e)(2) as a consequence of the ongoing state of emergency and the continued social distancing measures required by local officials.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MODESTO DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
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Section 2. Consideration of State of Emergency. The City Council has considered the conditions of the state of emergency declared pursuant to Government Code section 8625, and determined that such emergency conditions continue to be present in the City.
Section 3. Continued Social Distancing Measures by State and Local Officials.
The City Council finds that the County of Stanislaus Health Officer’s recommended measures to promote social distancing remain in effect.
Section 4. Remote Teleconference Meetings. The City Council finds that the conditions continue to exist pursuant to Government Code section 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.
The foregoing Resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 14th day of June 2022, by Council Member ________, who moved its adoption, which motion being duly seconded by Council Member ______, was upon roll call carried and the resolution adopted by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _________________________________
JOSE M. SANCHEZ, City Attorney
5120076.1
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Assembly Bill No. 361
CHAPTER 165
An act to add and repeal Section 89305.6 of the Education Code, and to amend, repeal, and add Section 54953 of, and to add and repeal Section 11133 of, the Government Code, relating to open meetings, and declaring the urgency thereof, to take effect immediately.
[Approved by Governor September 16, 2021. Filed with
Secretary of State September 16, 2021.]
legislative counsel’s digest
AB 361, Robert Rivas. Open meetings: state and local agencies:
teleconferences.
(1) Existing law, the Ralph M. Brown Act requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. The act contains specified provisions regarding the timelines for posting an agenda and providing for the ability of the public to directly address the legislative body on any item of interest to the public.
The act generally requires all regular and special meetings of the legislative body be held within the boundaries of the territory over which the local agency exercises jurisdiction, subject to certain exceptions. The act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that the legislative body notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allowed to address the legislative body at each teleconference location, that the legislative body post an agenda at each teleconference location, and that at least a quorum of the legislative body participate from locations within the boundaries of the local agency’s jurisdiction. The act provides an exemption to the jurisdictional requirement for health authorities, as defined. The act authorizes the district attorney or any interested person, subject to certain provisions, to commence an action by mandamus or injunction for the purpose of obtaining a judicial determination that specified actions taken by a legislative body are null and void.
Existing law, the California Emergency Services Act, authorizes the Governor, or the Director of Emergency Services when the governor is inaccessible, to proclaim a state of emergency under specified circumstances.
Executive Order No. N-29-20 suspends the Ralph M. Brown Act’s requirements for teleconferencing during the COVID-19 pandemic provided that notice and accessibility requirements are met, the public members are allowed to observe and address the legislative body at the meeting, and that a legislative body of a local agency has a procedure for receiving and swiftly
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resolving requests for reasonable accommodation for individuals with disabilities, as specified.
This bill, until January 1, 2024, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Brown Act when a legislative body of a local agency holds a meeting during a declared state of emergency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing, during a proclaimed state of emergency held for the purpose of determining, by majority vote, whether meeting in person would present imminent risks to the health or safety of attendees, and during a proclaimed state of emergency when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees, as provided.
This bill would require legislative bodies that hold teleconferenced meetings under these abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internet-based service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body. The bill would require the legislative body to take no further action on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored. The bill would specify that actions taken during the disruption are subject to challenge proceedings, as specified.
This bill would prohibit the legislative body from requiring public comments to be submitted in advance of the meeting and would specify that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time. The bill would prohibit the legislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified. When there is a continuing state of emergency, or when state or local officials have imposed or recommended measures to promote social distancing, the bill would require a legislative body to make specified findings not later than 30 days after the first teleconferenced meeting pursuant to these provisions, and to make those findings every 30 days thereafter, in order to continue to meet under these abbreviated teleconferencing procedures.
Existing law prohibits a legislative body from requiring, as a condition to attend a meeting, a person to register the person’s name, or to provide other information, or to fulfill any condition precedent to the person’s attendance.
92 Ch. 165 — 2 —
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This bill would exclude from that prohibition, a registration requirement imposed by a third-party internet website or other online platform not under the control of the legislative body.
(2) Existing law, the Bagley-Keene Open Meeting Act, requires, with specified exceptions, that all meetings of a state body be open and public and all persons be permitted to attend any meeting of a state body. The act requires at least one member of the state body to be physically present at the location specified in the notice of the meeting.
The Governor’s Executive Order No. N-29-20 suspends the requirements of the Bagley-Keene Open Meeting Act for teleconferencing during the COVID-19 pandemic, provided that notice and accessibility requirements are met, the public members are allowed to observe and address the state body at the meeting, and that a state body has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, as specified.
This bill, until January 31, 2022, would authorize, subject to specified notice and accessibility requirements, a state body to hold public meetings through teleconferencing and to make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the state body. With respect to a state body holding a public meeting pursuant to these provisions, the bill would suspend certain requirements of existing law, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the state body at each teleconference location. Under the bill, a state body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically would satisfy any requirement that the state body allow members of the public to attend the meeting and offer public comment. The bill would require that each state body that holds a meeting through teleconferencing provide notice of the meeting, and post the agenda, as provided. The bill would urge state bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(3) Existing law establishes the various campuses of the California State University under the administration of the Trustees of the California State University, and authorizes the establishment of student body organizations in connection with the operations of California State University campuses.
The Gloria Romero Open Meetings Act of 2000 generally requires a legislative body, as defined, of a student body organization to conduct its business in a meeting that is open and public. The act authorizes the legislative body to use teleconferencing, as defined, for the benefit of the public and the legislative body in connection with any meeting or proceeding authorized by law.
This bill, until January 31, 2022, would authorize, subject to specified notice and accessibility requirements, a legislative body, as defined for purposes of the act, to hold public meetings through teleconferencing and 92 — 3 — Ch. 165
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to make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the legislative body. With respect to a legislative body holding a public meeting pursuant to these provisions, the bill would suspend certain requirements of existing law, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the legislative body at each teleconference location.
Under the bill, a legislative body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically would satisfy any requirement that the legislative body allow members of the public to attend the meeting and offer public comment. The bill would require that each legislative body that holds a meeting through teleconferencing provide notice of the meeting, and post the agenda, as provided. The bill would urge legislative bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(4) This bill would declare the Legislature’s intent, consistent with the Governor’s Executive Order No. N-29-20, to improve and enhance public access to state and local agency meetings during the COVID-19 pandemic and future emergencies by allowing broader access through teleconferencing options.
(5) This bill would incorporate additional changes to Section 54953 of the Government Code proposed by AB 339 to be operative only if this bill and AB 339 are enacted and this bill is enacted last.
(6) The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect. (7) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect. (8) This bill would declare that it is to take effect immediately as an urgency statute.
The people of the State of California do enact as follows:
SECTION 1. Section 89305.6 is added to the Education Code, to read:
89305.6. (a) Notwithstanding any other provision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a legislative body may hold public meetings through teleconferencing 92 Ch. 165 — 4 —
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and make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the legislative body.
(b) (1) For a legislative body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the legislative body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2) For a legislative body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A) Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B) Each teleconference location be accessible to the public. (C) Members of the public may address the legislative body at each teleconference conference location.
(D) Post agendas at all teleconference locations.
(E) At least one member of the legislative body be physically present at the location specified in the notice of the meeting.
(c) A legislative body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically, consistent with the notice and accessibility requirements in subdivisions (d) and (e), shall have satisfied any requirement that the legislative body allow members of the public to attend the meeting and offer public comment. A legislative body need not make available any physical location from which members of the public may observe the meeting and offer public comment.
(d) If a legislative body holds a meeting through teleconferencing pursuant to this section and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the legislative body shall also do both of the following:
(1) Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving any doubt whatsoever in favor of accessibility.
(2) Advertise that procedure each time notice is given of the means by which members of the public may observe the meeting and offer public comment, pursuant to paragraph (2) of subdivision (e).
(e) Except to the extent this section provides otherwise, each legislative body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1) Give advance notice of the time of, and post the agenda for, each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
92 — 5 — Ch. 165
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(2) In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observe the meeting and offer public comment. As to any instance in which there is a change in the means of public observation and comment, or any instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a legislative body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication available at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the legislative body’s internet website.
(f) All legislative bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparency and provide the public access to legislative body meetings.
(g) This section shall remain in effect only until January 31, 2022, and as of that date is repealed.
SEC. 2. Section 11133 is added to the Government Code, to read:
11133. (a) Notwithstanding any other provision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a state body may hold public meetings through teleconferencing and make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the state body.
(b) (1) For a state body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the state body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2) For a state body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A) Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B) Each teleconference location be accessible to the public. (C) Members of the public may address the state body at each teleconference conference location.
(D) Post agendas at all teleconference locations.
(E) At least one member of the state body be physically present at the location specified in the notice of the meeting.
(c) A state body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically 92 Ch. 165 — 6 —
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or otherwise electronically, consistent with the notice and accessibility requirements in subdivisions (d) and (e), shall have satisfied any requirement that the state body allow members of the public to attend the meeting and offer public comment. A state body need not make available any physical location from which members of the public may observe the meeting and offer public comment.
(d) If a state body holds a meeting through teleconferencing pursuant to this section and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the state body shall also do both of the following:
(1) Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving any doubt whatsoever in favor of accessibility.
(2) Advertise that procedure each time notice is given of the means by which members of the public may observe the meeting and offer public comment, pursuant to paragraph (2) of subdivision (e).
(e) Except to the extent this section provides otherwise, each state body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1) Give advance notice of the time of, and post the agenda for, each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
(2) In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observe the meeting and offer public comment. As to any instance in which there is a change in the means of public observation and comment, or any instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a state body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication available at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the state body’s internet website.
(f) All state bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparency and provide the public access to state body meetings.
(g) This section shall remain in effect only until January 31, 2022, and as of that date is repealed.
SEC. 3. Section 54953 of the Government Code is amended to read:
92 — 7 — Ch. 165
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54953. (a) All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided in this chapter.
(b) (1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivisions (d) and (e). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4) For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.
Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c) (1) No legislative body shall take action by secret ballot, whether preliminary or final.
(2) The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3) Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
92 Ch. 165 — 8 —
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(d) (1) Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2) Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3) For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter
2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) (1) A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(2) A legislative body that holds a meeting pursuant to this subdivision shall do all of the following:
(A) The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B) The legislative body shall allow members of the public to access the meeting and the agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3. 92 — 9 — Ch. 165
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In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C) The legislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D) In the event of a disruption which prevents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E) The legislative body shall not require public comments to be submitted in advance of the meeting and must provide an opportunity for the public to address the legislative body and offer comment in real time.
This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F) Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate. (G) (i) A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to register, pursuant to subparagraph (F), to provide public comment until that timed public comment period has elapsed.
(ii) A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii) A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to register, pursuant to subparagraph (F), until the timed general public comment period has elapsed. 92 Ch. 165 — 10 —
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(3) If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A) The legislative body has reconsidered the circumstances of the state of emergency.
(B) Any of the following circumstances exist:
(i) The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii) State or local officials continue to impose or recommend measures to promote social distancing.
(4) For the purposes of this subdivision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 3.1. Section 54953 of the Government Code is amended to read:
54953. (a) All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency in person, except as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal civil rights laws, including, but not limited to, any applicable language access and other nondiscrimination obligations.
(b) (1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body 92 — 11 — Ch. 165
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shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivisions (d) and (e). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4) For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.
Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c) (1) No legislative body shall take action by secret ballot, whether preliminary or final.
(2) The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3) Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d) (1) Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2) Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3) For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter 92 Ch. 165 — 12 —
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2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) (1) A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(2) A legislative body that holds a meeting pursuant to this subdivision shall do all of the following:
(A) The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B) The legislative body shall allow members of the public to access the meeting and the agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3.
In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C) The legislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D) In the event of a disruption which prevents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E) The legislative body shall not require public comments to be submitted in advance of the meeting and must provide an opportunity for 92 — 13 — Ch. 165
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the public to address the legislative body and offer comment in real time.
This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F) Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate. (G) (i) A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to register, pursuant to subparagraph (F), to provide public comment until that timed public comment period has elapsed.
(ii) A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii) A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to register, pursuant to subparagraph (F), until the timed general public comment period has elapsed. (3) If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A) The legislative body has reconsidered the circumstances of the state of emergency.
(B) Any of the following circumstances exist:
(i) The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii) State or local officials continue to impose or recommend measures to promote social distancing.
(4) For the purposes of this subdivision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 4. Section 54953 is added to the Government Code, to read:
54953. (a) All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting 92 Ch. 165 — 14 —
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of the legislative body of a local agency, except as otherwise provided in this chapter.
(b) (1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivision (d). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4) For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.
Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations
(c) (1) No legislative body shall take action by secret ballot, whether preliminary or final.
(2) The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3) Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d) (1) Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, 92 — 15 — Ch. 165
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members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2) Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3) For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter
2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) This section shall become operative January 1, 2024.
SEC. 4.1. Section 54953 is added to the Government Code, to read:
54953. (a) All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, in person except as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal civil rights laws, including, but not limited to, any applicable language access and other nondiscrimination obligations.
(b) (1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the 92 Ch. 165 — 16 —
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legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivision (d). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4) For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.
Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c) (1) No legislative body shall take action by secret ballot, whether preliminary or final.
(2) The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3) Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d) (1) Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2) Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3) For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint 92 — 17 — Ch. 165
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powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter
2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) This section shall become operative January 1, 2024.
SEC. 5. Sections 3.1 and 4.1 of this bill incorporate amendments to Section 54953 of the Government Code proposed by both this bill and Assembly Bill 339. Those sections of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, but this bill becomes operative first, (2) each bill amends Section 54953 of the Government Code, and (3) this bill is enacted after Assembly Bill 339, in which case Section 54953 of the Government Code, as amended by Sections 3 and 4 of this bill, shall remain operative only until the operative date of Assembly Bill 339, at which time Sections 3.1 and 4.1 of this bill shall become operative.
SEC. 6. It is the intent of the Legislature in enacting this act to improve and enhance public access to state and local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options consistent with the Governor’s Executive Order No. N-29-20 dated March 17, 2020, permitting expanded use of teleconferencing during the COVID-19 pandemic.
SEC. 7. The Legislature finds and declares that Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, further, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
This act is necessary to ensure minimum standards for public participation and notice requirements allowing for greater public participation in teleconference meetings during applicable emergencies.
SEC. 8. (a) The Legislature finds and declares that during the COVID-19 public health emergency, certain requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) were suspended by Executive Order N-29-20. Audio and video teleconference were widely used to conduct public meetings in lieu of physical location meetings, and public meetings conducted by teleconference during the COVID-19 public health emergency have been productive, have increased public participation by all members of the public regardless of their location in the state and ability to travel to physical meeting locations, have protected the health and safety of civil servants and the public, and have reduced travel costs incurred by members of state bodies and reduced work hours spent traveling to and from meetings.
92 Ch. 165 — 18 —
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(b) The Legislature finds and declares that Section 1 of this act, which adds and repeals Section 89305.6 of the Education Code, Section 2 of this act, which adds and repeals Section 11133 of the Government Code, and Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, all increase and potentially limit the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
(1) By removing the requirement that public meetings be conducted at a primary physical location with a quorum of members present, this act protects the health and safety of civil servants and the public and does not preference the experience of members of the public who might be able to attend a meeting in a physical location over members of the public who cannot travel or attend that meeting in a physical location. (2) By removing the requirement for agendas to be placed at the location of each public official participating in a public meeting remotely, including from the member’s private home or hotel room, this act protects the personal, private information of public officials and their families while preserving the public’s right to access information concerning the conduct of the people’s business.
SEC. 9. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The facts constituting the necessity are:
In order to ensure that state and local agencies can continue holding public meetings while providing essential services like water, power, and fire protection to their constituents during public health, wildfire, or other states of emergencies, it is necessary that this act take effect immediately.
O
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
June 14, 2022
Date: May 17, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jaylen French, Director of Community and Economic Development SUBJECT: Second Amendment to COZEEP Agreement with California Highway Patrol for SR132
CONTACT: John Rawles, Sr. Civil Engineer, [email protected], (209) 577-5253 DESCRIPTION:
Consider approving a Second Amendment to extend the completion date to December 31, 2022, for the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This action for the SR132 West Freeway/Expressway Project is consistent with the Council’s 2020-2025 Strategic Plan Goal D, Ensure Safe, Efficient and Reliable Infrastructure.
Specifically, this item supports the SR132 West Freeway/Expressway Project and the City’s goal to expand alternative modes of travel, improve transportation flow, and drive economic vitality.
BACKGROUND:
The purpose of the State Route 132 West Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132 (SR132), and enhance safety and operations for the existing and proposed transportation network.
The Phase 1 Project includes construction of an access-controlled, 2-lane expressway (one lane eastbound and one lane westbound) along a new alignment just south of Kansas Avenue starting from the east side of State Route 99 (SR99) at the west end of the Needham Street Bridge, westbound to Dakota Avenue and then along Dakota Avenue to the existing SR132/Maze Boulevard. The Project also includes grade separations at Rosemore Avenue, Carpenter Avenue, Emerald Avenue, and SR99, and improvements to the 5th and 6th Street connections to the new SR132 expressway and the addition of an auxiliary lane at the northbound SR99 on-ramp at L Street.
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City Council, June 14, 2022
Second Amendment to COZEEP Agreement with California Highway Patrol for SR132
Work occurring within the SR99 right-of-way requires traffic control related services from the California Highway Patrol (CHP). Caltrans required implementation of Construction Zone Enhanced Enforcement Program (COZEEP) for this project. Prior to the CHP performing the services required of the COZEEP program an agreement was required.
On December 10, 2019, by Resolution No. 2019-542, Council approved Agreement No. 19R465000 committing the City of Modesto to provide a maximum reimbursement amount of $331,486 to the CHP for all traffic control related services provided to the project during the construction phase of the project. In addition, the agreement provided a time frame for performance of said services from November 1, 2019 to December 31, 2021.
DISCUSSION:
On September 24, 2019, per Resolution No. 2019-439, Modesto City Council awarded a construction contract to Bay Cities Paving & Grading. The original construction contract was for 565 working days. Bid Alternates A & B, which were included in the project because funding was available based on the winning bid, added approximately six months to the base bid construction schedule, in addition to a 3-year Plant Establishment Period.
Construction began in December 2019, and was estimated to be completed in March of 2022, with closeout continuing through June 30, 2022. The original COZEEP Agreement had an end date of December 31, 2021. As a result, a First Amendment to extend the end date of the COZEEP Agreement with CHP was necessary.
On October 12, 2021, per Resolution No. 2021-403, Council approved a First Amendment to the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project, increasing the agreement amount by $110,847.50, from $331,486 for a total not to exceed amount of $442,333.50, and also extended the term end date from December 31, 2021 to June 30, 2022.
The Project experienced a 100-year storm weather delay, delay due to smoke during the fires of 2021, and delay due to social distancing requirements of the state and county due to the COVID-19 pandemic. Additionally, Project will experience a minor delay due to redesign of Carpenter Road to accommodate an enhanced bicycle and pedestrian traffic plan, and redesign of utility access facilities for Modesto Irrigation District. In addition to this extra work, it may be necessary for the Contractor to engage COZEEP services to support minor lane closures required to complete project closeout “punch list“ work. These added COZEEP services can commence when the new highway facilities are opened and in service, which is expected sometime in mid-July. Due to the uncertain nature of this work, staff recommends the COZEEP agreement be extended to the end of the year.
Staff recommends approving this no-cost Second Amendment to the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the project, to extend the term end date from June 30, 2022 to December 31, 2022.
FISCAL IMPACT:
There is no cost to the Second Amendment to the Agreement. #5..
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City Council, June 14, 2022
Second Amendment to COZEEP Agreement with California Highway Patrol for SR132
COMMITTEE RECOMMENDATION:
This item was reviewed by the Economic Development Committee on June 6, 2022 and recommended approval by the City Council.
CEQA/NEPA REQUIREMENTS:
Caltrans has completed California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) review of the Project with approval of the document as part of the PA&ED Phase on March 9, 2018.
RECOMMENDED COUNCIL ACTION:
Staff Recommendation:
Resolution approving a no-cost Second Amendment to extend the completion date to December 31, 2022, for the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project, and authorizing the City Manager, or his designee to execute the Amendment to Agreement.
Approved by:
Jaylen French, Director of CEDD
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Second Amendment to COZEEP Agreement
3. COZEEP Agreement No. 19R465000
4. First Amendment to COZEEP Agreement
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6/14/2022/CEDD/J.Rawles 1 2022-
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING A NO-COST SECOND AMENDMENT TO
EXTEND THE COMPLETION DATE TO DECEMBER 31, 2022, FOR THE
CONSTRUCTION ZONE ENHANCED ENFORCEMENT PROGRAM (COZEEP) AGREEMENT NO. 19R465000 WITH THE STATE OF CALIFORNIA,
DEPARTMENT OF HIGHWAY PATROL FOR THE STATE ROUTE 132 WEST FREEWAY/EXPRESSWAY PHASE 1 PROJECT, AND AUTHORIZING THE
CITY MANAGER, OR HIS DESIGNEE TO EXECUTE THE AMENDMENT TO
AGREEMENT
WHEREAS, the purpose of the State Route 132 West Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132 (SR132), and enhance safety and operations for the existing and proposed transportation network; and WHEREAS, the Phase 1 Project includes construction of an access-controlled, 2- lane expressway (one lane eastbound and one lane westbound) along a new alignment just south of Kansas Avenue starting from the east side of State Route 99 (SR99) at the west end of the Needham Street Bridge, westbound to Dakota Avenue and then along Dakota Avenue to the existing SR132/Maze Boulevard; and WHEREAS, the Project also includes grade separations at Rosemore Avenue, Carpenter Avenue, Emerald Avenue, and SR99, and improvements to the 5th and 6th Street connections to the new SR132 expressway and the addition of an auxiliary lane at the northbound SR99 on-ramp at L Street; and
WHEREAS, work occurring within the SR99 right-of-way requires traffic control related services from the California Highway Patrol (CHP); and WHEREAS, Caltrans required implementation of Construction Zone Enhanced Enforcement Program (COZEEP) for this project; and
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6/14/2022/CEDD/J.Rawles 2 2022-
WHEREAS, prior to the CHP performing the services required of the COZEEP program an agreement was required; and
WHEREAS, on December 10, 2019, by Resolution No. 2019-542, Council approved Agreement No. 19R465000 committing the City of Modesto to provide a maximum reimbursement amount of $331,486 to the CHP for all traffic control related services provided to the project during the construction phase of the project, and provided a time frame of said services from November 1, 2019 to December 31, 2021; and WHEREAS, on September 24, 2019, per Resolution No. 2019-439, Modesto City Council awarded a construction contract to Bay Cities Paving & Grading, and the original construction contract was for 565 working days; and
WHEREAS, Bid Alternates A & B, which were included in the project because funding was available based on the winning bid, added approximately six months to the base bid construction schedule, in addition to a 3-year Plant Establishment Period; and WHEREAS, construction began in December 2019, and was estimated to be completed in March of 2022, with closeout continuing through June 30, 2022; and WHEREAS, the original COZEEP Agreement had an end date of December 31, 2021, and as a result a First Amendment to extend the end date of the COZEEP Agreement with CHP was necessary; and
WHEREAS, on October 12, 2021, per Resolution No. 2021-403, Council approved a First Amendment to the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project, increasing the agreement amount by $110,847.50, from $331,486 for a total not to exceed #5..
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6/14/2022/CEDD/J.Rawles 3 2022-
amount of $442,333.50, and also extended the term end date from December 31, 2021 to June 30, 2022; and
WHEREAS, the Project experienced a 100-year storm weather delay, delay due to smoke during the fires of 2021, and delay due to social distancing requirements of the state and county due to the COVID-19 pandemic; and
WHEREAS, additionally the Project will experience a minor delay due to redesign of Carpenter Road to accommodate an enhanced bicycle and pedestrian traffic plan, and redesign of utility access facilities for Modesto Irrigation District; and WHEREAS, in addition to this extra work, it may be necessary for the Contractor to engage COZEEP services to support minor lane closures required to complete project closeout “punch list“ work; and
WHEREAS, these added COZEEP services can commence when the new highway facilities are opened and in service, which is expected sometime in mid-July; and
WHEREAS, due to the uncertain nature of this work staff recommends the COZEEP agreement be extended to the end of the year; and WHEREAS, staff recommends approving this no-cost Second Amendment to the Construction Zone Enhanced Enforcement Program (COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the project, to extend the term end date from June 30, 2022 to December 31, 2022.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a no-cost Second Amendment to extend the completion date to December 31, 2022, for the Construction Zone Enhanced Enforcement Program #5..
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6/14/2022/CEDD/J.Rawles 4 2022-
(COZEEP) Agreement No. 19R465000 with the State of California, Department of Highway Patrol for the State Route 132 West Freeway/Expressway Phase 1 Project.
BE IT FURTHER RESOLVED, that the City Manager or his designee is hereby authorized to execute the Amendment to Agreement in a form approved by the City Attorney.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of June, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: _________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________
JOSE M. SANCHEZ, City Attorney
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2. The term of this Agreement is:
The parties mutually agree to this amendment as follows. All actions noted below are by this reference made a part of the Agreement and incorporated herein:
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Department of California Highway Patrol
and City of Modesto Community & Economic Development Department CHP Agreement #19R465000-2
Exhibit B, Page 1 of 1
EXHIBIT B
(Standard Agreement)
BUDGET DETAIL AND PAYMENT PROVISIONS
1. Invoicing and Payment
A. The CHP shall provide City of Modesto Community & Economic Development Department with an itemized invoice which details all CHP costs for traffic control services under this Agreement.
Monthly itemized invoices will be submitted in duplicate to:
City of Modesto Community & Economic Development Department Attn: John Rawles, Project Manager
1010 Tenth Street
Modesto, CA 95353
City of Modesto Community & Economic Development Department agrees to pay CHP within thirty (30) days after the date of the invoice(s).
B. This Agreement includes hourly usages and anticipated mileage for the traffic control services.
Officer Overtime Hours 3,000 hours
Sergeant Overtime Hours 300 hours
Patrol car mileage 3,500 miles
C. In consideration for the traffic control services contained here, the City of Modesto Community & Economic Development Department agrees to reimburse the CHP upon receipt of an itemized invoice, for both the actual hours worked by CHP officers (at the overtime rate described below), and at the time services are provided. The rates indicated in this Agreement are for estimate purposes only. It is understood by both parties that rate increases in salary and benefits are governed by collective bargaining agreements and/or statute and that no advance written notification is necessary prior to implementing the increased rates. In the event the CHP is granted a rate increase, the City of Modesto Community & Economic Development Department shall pay the increased rate. The following information is the CHP’s officer and sergeant overtime and mileage rates effective Fiscal Year 21/22 until superseded:
CLASSIFICATION OVERTIME RATE
CHP Officer Overtime
CHP Sergeant Overtime
CHP Automobile
$ 105.91 per hour
$ 124.84 per hour
$ 1.45 per mile
D. Anytime the CHP officer is assigned to the service location, City of Modesto Community & Economic Development Department will pay no less than four (4) hours per shift, even if the CHP officer works less than that.
If the CHP officer(s) report(s) to the assigned service location and if for any reason CHP reassigns the officer(s) away from the service location, City of Modesto Community & Economic Development Department will be billed only for the officer(s) actual time incurred from the CHP Area office to the service location and for the time spent at the assigned service location covered under this Agreement. #5..
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2. The term of this Agreement is:
The parties mutually agree to this amendment as follows. All actions noted below are by this reference made a part of the Agreement and incorporated herein:
DocuSign Envelope ID: 98E37C72-09A2-4C1A-9261-2B8B5BC569DD City Manager
10/21/2021
Joseph Lopez
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Department of California Highway Patrol
and City of Modesto Community & Economic Development Department CHP Agreement #19R465000-1
Exhibit B, Page 1 of 1
EXHIBIT B
(Standard Agreement)
BUDGET DETAIL AND PAYMENT PROVISIONS
1. Invoicing and Payment
A. The CHP shall provide City of Modesto Community & Economic Development Department with an itemized invoice which details all CHP costs for traffic control services under this Agreement.
Monthly itemized invoices will be submitted in duplicate to:
City of Modesto Community & Economic Development Department Attn: John Rawles, Project Manager
1010 Tenth Street
Modesto, CA 95353
City of Modesto Community & Economic Development Department agrees to pay CHP within thirty (30) days after the date of the invoice(s).
B. This Agreement includes hourly usages and anticipated mileage for the traffic control services.
Officer Overtime Hours 3,000 hours
Sergeant Overtime Hours 300 hours
Patrol car mileage 3,500 miles
C. In consideration for the traffic control services contained here, the City of Modesto Community & Economic Development Department agrees to reimburse the CHP upon receipt of an itemized invoice, for both the actual hours worked by CHP officers (at the overtime rate described below), and at the time services are provided. The rates indicated in this Agreement are for estimate purposes only. It is understood by both parties that rate increases in salary and benefits are governed by collective bargaining agreements and/or statute and that no advance written notification is necessary prior to implementing the increased rates. In the event the CHP is granted a rate increase, the City of Modesto Community & Economic Development Department shall pay the increased rate. The following information is the CHP’s officer and sergeant overtime and mileage rates effective Fiscal Year 18/19, until superseded:
CLASSIFICATION OVERTIME RATE
CHP Officer Overtime $ 102.48 per hour
CHP Sergeant Overtime $ 124.67 per hour
CHP Automobile $ 1.41 per mile
D. Anytime the CHP officer is assigned to the service location, City of Modesto Community & Economic Development Department will pay no less than four (4) hours per shift, even if the CHP officer works less than that.
If the CHP officer(s) report(s) to the assigned service location and if for any reason CHP reassigns the officer(s) away from the service location, City of Modesto Community & Economic Development Department will be billed only for the officer(s) actual time incurred from the CHP Area office to the service location and for the time spent at the assigned service location covered under this Agreement. #5..
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
June 14, 2022
Date: May 23, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves, & Sewer Materials CONTACT: Cynthia Kline, Purchasing Manager, [email protected], 209-577-5412 DESCRIPTION:
Consider approving a First Amendment with Ferguson Waterworks for the Purchase of Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves and Sewer Materials for a revised estimated annual amount from $340,000 to $575,000 and a total revised amount not to exceed from $1,700,000 to $2,405,000 over five (5) years. (Funding Source: Water and Wastewater Fund)
STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.
BACKGROUND:
The Finance Department, Central Stores Division inventories circle clamps, gaskets, pipe couplings and tapping sleeves for the Utilities Department, Water Division, for use in the setup and repair of water main lines and installation of residential water services and meters.
Competitively bidding and inventorying these products benefits the City in many ways including the following:
Obtaining best pricing through economies of scale
Products readily available in one location
Staff time reduction in processing one-time bids throughout the year On July 14, 2020 by Resolution 2020-306, Council approved a 1-year purchase agreement, with four (4) 1-year extension options with Ferguson Waterworks for the purchase of circle clamps, gaskets, pipe couplings, tapping sleeves and sewer materials for an estimated annual amount of $340,000 and a total not to exceed $1,700,000 over five years. #6..
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City Council, June 14, 2022
Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves, & Sewer Materials
DISCUSSION:
Over this past year, City staff has received multiple price increases from vendors due to market volatility. Supply chain issues resulting from COVID-19, and weather-related manufacturing shutdowns have created an unstable market, which has yet to show signs of stabilizing. These price increases have been substantiated by the Producer Price Index (PPI)1.
Due to this market volatility, manufacturers are no longer holding annual pricing. The current pricing structure for polyvinyl chloride (PVC) parts which is the main component of this agreement are priced at the time of order and only held for approximately 48 hours.
The PVC market price has increased exponentially over the past several years and continues to rise. Two of the largest PVC producer manufacturers declared a force majeure event due to weather, on August 14, 2021 & August 31, 2021 and were not lifted until late 2021. Since January 2021 to present, pricing has increased 200%.
Manufacturers are currently offering quotes for ductile and stainless-steel parts that are valid for approximately 30 to 90 days. Materials continue to remain in short supply and are still experiencing market volatility. Since January 2021, pricing has increased approximately 20% and 78%, respectively, for ductile and stainless-steel parts.
Further compounding market volatility are fuel increases in the western region of the United States. The cost of fuel has increased almost 90% since January 2021. Additional information regarding the Western Region (California) fuel index can be located on the U.S. Energy Information Administration website.2
Staff continues to monitor supply chain trends on a regular basis, and validates that pricing provided by vendors falls within fair market value. Approving this amendment will ensure that the city can continue to secure the purchase of parts and supplies required to provide safe drinking water. Additionally, by establishing annual extension this will ensure City staff continue to monitor the market and determine if we should solicit a new bid to obtain lower pricing for these goods.
FISCAL IMPACTS:
Current agreement No. 185001 has a total annual estimated amount of $340,000. For years one and two, a total of $651,008 has been expended against the agreement. During the first year, approximately 30% of the funds were utilized for pipe, as opposed to current spend for pipe which now accounts for 71% of funds spent. Staff is requesting an increase to the total spending limit of $1,700,000, for a new total amount not to exceed $2,405,000 over five years.
Funds are budgeted in the Water Fund and Wastewater Fund. 1 https://data.bls.gov/PDQWeb/pc
2 https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_sca_w.htm #6..
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City Council, June 14, 2022
Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves, & Sewer Materials
FUND ACCOUNT
NUMBER
REVISED
ANNUAL
AMOUNT
Water $517,000
4100-45020-53150
4100-45040-53150
4180-100357,
100576, 100577
Wastewater 4210-44211-53150 $58,000
ANNUAL TOTAL NOT TO EXCEED $575,000
FIVE (5) YEAR TOTAL NOT TO EXCEED $2,405,000
COMMITTEE RECOMMENDATION:
This item was presented at the May 23, 2022 Finance Committee and approved to move forward to Council.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving a First Amendment with Ferguson Waterworks for the Purchase of Circle Clamps, Gaskets, Pipe Couplings, Tapping Sleeves and Sewer Materials for a revised estimated annual amount from $340,000 to $575,000 and a total revised amount not to exceed from $1,700,000 to $2,405,000 over five (5) years, and authorizing the Director Finance or her designee to execute the Amendment; and authorizing the Director of Finance, or her designee, the ability to add parts based on the department’s needs, ensuring the total cost does not exceed the authorized amount.
Approved by: _____________________________________________ DeAnna Christensen, Director of Finance
_____________________________________________
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Amendment to Purchase Agreement 185001 – Ferguson Waterworks
3. Annual Agreement – Original
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING A FIRST AMENDMENT WITH FERGUSON
WATERWORKS FOR THE PURCHASE OF CIRCLE CLAMPS, GASKETS,
PIPE COUPLINGS, TAPPING SLEEVES AND SEWER MATERIALS FOR A REVISED ESTIMATED ANNUAL AMOUNT FROM $340,000 TO $575,000 AND A TOTAL REVISED AMOUNT NOT TO EXCEED FROM $1,700,000 TO $2,405,000 OVER FIVE (5) YEARS, AND AUTHORIZING THE DIRECTOR OF FINANCE OR HER DESIGNEE TO EXECUTE THE AMENDMENT; AND
AUTHORIZING THE DIRECTOR OF FINANCE, OR HER DESIGNEE, THE
ABILITY TO ADD PARTS BASED ON THE DEPARTMENTS NEEDS,
ENSURING THE TOTAL COST DOES NOT EXCEED THE AUTHORIZED
AMOUNT
WHEREAS, the Finance Department, Central Stores Division inventories circle clamps, gaskets, pipe couplings, and tapping sleeves for the Utilities Department, Water and Wastewater Divisions; and
WHEREAS, these items are used in repairing and maintaining city water and sewer lines; and
WHEREAS, on July 14, 2020 by Resolution 2020-306, Council approved a One (1) year purchase agreement with four (4) 1-year extension options; and WHEREAS, supply chain issues resulting from COVID19, and weatherrelated manufacturing shutdowns have created an unstable market; and WHEREAS, the polyvinyl chloride (PVC) market has increased exponentially over the past several years and continues to rise; and WHEREAS, the cost of fuel has risen over 90% since January 2021; and WHEREAS, staff continues to monitor supply chain trends on a regular basis, validating market pricing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approve a first amendment with Ferguson Waterworks for the purchase of circle clamps, gaskets, pipe couplings tapping sleeves, and sewer materials from an annual estimated amount of $340,000 to a new annual estimated amount of $575,000 and a total revised amount not to exceed from $1,700,000 to $2,405,000 over five (5) years.
BE IT FUTHER RESOLVED, that the Director of Finance, or her designee, is authorized to execute the amendment.
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BE IF FURTHER RESOLVED, that the Director of Finance, or her designee, is authorized the ability to add parts based on the department’s needs, ensuring the total cost does not exceed the authorized amount.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of June, 2022 by Councilmember? who moved its adoption, which motion being duly seconded by Councilmember?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST:
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY:
JOSE M. SANCHEZ, City Attorney
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1 FIRST AMENDMENT TO AGREEMENT
FOR CIRCLE CLAMPS, GASKETS, PIPE COUPLINGS, TAPPING SLEEVES, &
SEWER MATERIALS WITH FERGUSON WATERWORKS
This FIRST AMENDMENT to the AGREEMENT, made and entered into in the City of Modesto, State of California, this _____ day of _____________, 2022, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and FERGUSON WATERWORKS hereinafter collectively referred to as CONTRACTOR.
This FIRST AMENDMENT to the AGREEMENT is made with reference to the following recitals:
A. An AGREEMENT, hereinafter referred to as AGREEMENT was entered into by and between CITY and CONTRACTOR on the 14TH day of JULY, 2020 to provide circle clamps, gaskets, pipe couplings, tapping sleeves & sewer materials.
B. CITY and CONTRACTOR desire to amend the AGREEMENT by increasing the previously approved annual amount from $340,000 to $575,000 for circle clamps, gaskets, pipe couplings, tapping sleeves & sewer materials identified in the AGREEMENT.
C. CITY and CONTRACTOR now desire to memorialize the change to the terms of the AGREEMENT with this FIRST AMENDMENT.
NOW, THEREFORE, the parties hereto mutually agree to the following:
1. The second paragraph of the AGREEMENT shall be amended to include the following:
“Total amount not to exceed $2,405,000 over five years.”
2. Except as modified and amended by this FIRST AMENDMENT to the AGREEMENT, all other provisions of the Agreement shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the CITY OF MODESTO, a Municipal Corporation, has authorized the execution of this First Amendment to the Agreement by its City Manager and attested #6..
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2 by its City Clerk under authority of Resolution No.__________, adopted by the Council of the City of Modesto on the ____ day of _____________, 2022, and Ferguson Waterworks has caused this First Amendment to the Agreement to be duly executed.
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¹ 34000 – Fire Protection Equipment and Supplies, 93632 – Fire Fighting Equipment Maintenance and Repair, 95405 – Laundry and Linen Service, 96100 – Miscellaneous Services, No. 1 (Not otherwise classified), 96278 – Sewing, Embroidery, Embossing, and Alteration Services
² Staff implemented a virtual bid opening process in an effort to slow the spread of COVID-19.
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
June 14, 2022
Date: May 24, 2022
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Alan Ernst, Fire Chief
SUBJECT: Personal Protection Equipment (PPE) Cleaning, Inspection & Repair Services CONTACT: Alan Ernst, [email protected], 209-572-9590 DESCRIPTION:
Consider approving the Award of Bid and Agreement for the Furnishing of Personal Protection Equipment (PPE) Cleaning, Inspection and Repair Services to Scotts PPE Recon Inc., Lodi, CA for the Modesto Fire Department, for a two-year Agreement, with three one-year extension options, for an estimated annual amount of $50,000 and total amount not to exceed $250,000 over five years. (Funding Source: General Fund)
STRATEGIC PLAN ELEMENT:
This action supports the City of Modesto 2020-2025 Strategic Plan focus on quality of life under Goal A: Improve Community Safety.
BACKGROUND:
The Modesto Fire Department outfits personnel with various items of Personal Protection Equipment (PPE) to protect the department’s fire suppression personnel from both known and unknown occupational safety and health hazards. Most individual PPE items have a set service life according to the National Fire Protection Association’s (NFPA) standards. Based on industry studies and internal risk assessments, the department’s PPE implementation has been standardized throughout the department to ensure firefighter safety and uniformity.
In 2016, by Resolution 2016-478, City Council approved an agreement with Scotts PPE Recon, Inc. which recently expired on December 18, 2021. The department is in need to continue regular cleaning, inspection, and repair services in order to ensure that personnel are adequately protected and that the useful life of department PPE is maximized.
The current Purchase Agreement No 109718 expired on December 18, 2021. #7..
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City Council, June 14, 2022
Personal Protection Equipment (PPE) Cleaning, Inspection & Repair Services
DISCUSSION
The City Manager authorized the Purchasing Manager to issue a formal Request for Bids (RFB) for the furnishing of PPE Cleaning, Inspection and Repair Services.
On January 21, 2022, the Purchasing Division issued RFB NO. 2122-34, PPE Cleaning, Inspection and Repair Services, on Planet Bids via the City’s website under five commodity codes¹. Prospective bidders were notified online and via email of the bid opportunity. Seventeen companies chose to download the RFB document.
On March 1, 2022, bids were formally opened by the City Clerk and broadcast via Microsoft Teams Livestream². One company chose to respond. Based on providing the lowest responsive and responsible bid, City staff recommends the award of the bid for the furnishing of PPE Cleaning, Inspection, and Repair Services for the Modesto Fire Department to Scotts PPE Recon, Inc., Lodi, CA.
Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to follow formal bid procedures.
An award of bid and agreement for the furnishing of PPE Cleaning, Inspection, and Repair Services for the Modesto Fire Department to Scotts PPE Recon Inc., Lodi, CA, conforms to the Modesto Municipal Code because the City complied with the lowest Responsive and responsible bid.
FISCAL IMPACT:
Expenditures over the past five years for the furnishing of PPE Cleaning, Inspection and Repair Services under the previous agreement are listed below:
Fiscal Year Total
FY 16/17 $26,224
FY 17/18 $23,523
FY 18/19 $28,614
FY 19/20 $33,304
FY 20/21 $29,547
Grand TOTAL $141,212
Funds are fully budgeted for each Fiscal Year in the following appropriation units:
Name Fund Cost Center Account Amount
General Fund – Modesto Fire 0100 18210 52160 $34,577
General Fund - Oakdale 0100 18212 52160 $7,941
General Fund - Ceres 0100 18213 52160 $7,482
Total $50,000
COMMITTEE RECOMMENDATION:
This agenda item was presented and forwarded for approval at the May 9, 2022 Safety and Communities Committee meeting.
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City Council, June 14, 2022
Personal Protection Equipment (PPE) Cleaning, Inspection & Repair Services
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Award of Bid and Agreement for the Furnishing of Personal Protection Equipment (PPE) Cleaning, Inspection and Repair Services to Scotts PPE Recon Inc., Lodi, CA for the Modesto Fire Department, for a two-year Agreement, with three one-year extension options, for an estimated annual amount of $50,000 and total amount not to exceed $250,000 over five years, and authorizing the City Manager, or his designee to execute the Agreement.
Approved by:
Alan Ernst, Fire Chief
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Agreement
3. Exhibit B bid submittal
4. Exhibit C RFB
5. Financial Interest Disclosure
6. Cost Abstract
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-?
RESOLUTION APPROVING THE AWARD OF BID AND AGREEMENT FOR
THE FURNISHING OF PERSONAL PROTECTION EQUIPMENT (PPE)
CLEANING, INSPECTION AND REPAIR SERVICES TO SCOTTS PPE RECON INC., LODI, CA FOR THE MODESTO FIRE DEPARTMENT, FOR A TWOYEAR AGREEMENT, WITH THREE ONE-YEAR EXTENSION OPTIONS, FOR AN ESTIMATED ANNUAL AMOUNT OF $50,000 AND TOTAL AMOUNT NOT TO EXCEED $250,000 OVER FIVE YEARS, AND AUTHORIZING THE CITY
MANAGER, OR HIS DESIGNEE TO EXECUTE THE AGREEMENT
WHEREAS, the Modesto Fire Department outfits personnel with various items of Personal Protection Equipment (PPE) to protect the department’s fire suppression personnel from both known and unknown occupational safety and health hazards; and WHEREAS, most individual PPE items have a set service life according to the National Fire Protection Association’s (NFPA) standards; and WHEREAS, in 2016, by Resolution 2016-478, City Council approved an agreement with Scotts PPE Recon, Inc. which recently expired on December 18, 2021; and
WHEREAS, the department is in need to continue regular cleaning, inspection, and repair services in order to ensure that personnel are adequately protected and that the useful life of department PPE is maximized; and
WHEREAS, the City Manager authorized the Purchasing Manager to issue a formal Request for Bids (RFB) for the furnishing of PPE Cleaning, Inspection and Repair Services; and
WHEREAS, on January 21, 2022, the Purchasing Division issued RFB NO. 2122- 34, PPE Cleaning, Inspection and Repair Services, on Planet Bids via the City’s website #7..
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under five commodity codes; prospective bidders were notified online and via email of the bid opportunity, and seventeen companies chose to download the RFB document; and WHEREAS, on March 1, 2022, bids were formally opened by the City Clerk and broadcast via Microsoft Teams Livestream and one company chose to respond. Based on providing the lowest responsive and responsible bid, City staff recommends the award of the bid for the furnishing of PPE Cleaning, Inspection, and Repair Services for the Modesto Fire Department to Scotts PPE Recon, Inc., Lodi, CA; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to follow formal bid procedures. An award of bid and agreement for the furnishing of PPE Cleaning, Inspection, and Repair Services for the Modesto Fire Department to Scotts PPE Recon Inc., Lodi, CA, conforms to the Modesto Municipal Code because the City complied with the lowest Responsive and responsible bid; and WHEREAS, funds are fully budgeted for each Fiscal Year in the following appropriation units: General Fund – Modesto Fire (0100-18210-52160); General Fund – Oakdale (0100-18212-52160); General Fund – Ceres (0100-18213-52160).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the award of bid and agreement for the furnishing of Personal Protection Equipment (PPE) Cleaning, Inspection and Repair Services to Scotts PPE Recon Inc., Lodi, CA for the Modesto Fire Department, for a two-year Agreement, with three one-year extension options, for an estimated annual amount of $50,000 and total amount not to exceed $250,000 over five years.
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BE IT FURTHER RESOLVED that the City Manager or designee is hereby authorized to execute the agreement, in a form approved by the City Attorney.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of June, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST:
DIANE NAYARES-PEREZ,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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1 ANNUAL AGREEMENT NO. 220444
SCOTTS PPE RECON INC.
FOR PPE CLEANING, INSPECTION, AND REPAIR SERVICES
This Agreement, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2022, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Scotts PPE Recon Inc., hereinafter called CONTRACTOR, W I T N E S S E T H:
WHEREAS, the Modesto City Council adopted Resolution No. 2022-_____ authorizing the award of bid and agreement for the furnishing of PPE CLEANING, INSPECTION AND REPAIR SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof; and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof; and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the furnishing of PPE CLEANING, INSPECTION AND REPAIR SERVICES as described in RFB 2122-34, attached hereto as Exhibit “C” and made a part hereof; and
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. SCOPE OF WORK.
a. CONTRACTOR shall furnish PPE CLEANING, INSPECTION AND REPAIR SERVICES insofar as such scope of services are specified in Exhibit “C”, and in strict accordance with the conditions of this complete Agreement.
b. CONTRACTOR shall do and perform the work contemplated hereby in a good and workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall furnish said services at the following contracted rates, for an estimated annual amount of $50,000 and a not to exceed amount of $250,000 over five (5) years:
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2 AGREEMENT PRICING
Item Description Unit Unit Price
Inspection
Outer shell material Each $9.00
Moisture barrier Each $6.00
Thermal liner Each $6.00
Structure helmets Each $5.50
Structure boots Pair $10.00
Structure gloves Pair $1.50
Structure flash hoods Each $1.50
Laundering/Cleaning
Structure Coat Each $17.00
Structure Pant Each $16.00
Wild land Coat Each $8.00
Wild land Pant Each $8.00
EMS ensemble Each $19.00
Structure helmets Each $13.50
Structure boots Pair $24.00
Structure gloves Pair $4.00
Structure flash hoods Each $2.00
Additional Services
Alterations
Item Description Unit Unit Price
Increase hem length Each $150.00
Decrease hem length Each $125.00
Increase sleeve length Each $125.00
Decrease sleeve length Each $115.00
Increase waist size Each $125.00
Decrease waist size Each $115.00
Increase inseam length Each $125.00
Decrease inseam length Each $115.00
Extension Panel w/ outer shell material,
moisture barrier and thermal liner Each $75.00
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3 Additional Services
Installation/Removal/Repair
Item Description Unit Unit Price
Remove letter patch Each $5.00
Mask pouch (sewn on) Each $45.00
Mic tab Each $11.00
Flashlight holder w/ Mic Tab combination Each $21.00
Hanging D ring Each $17.00
Thumb loop Each $5.00
hanging ring (2” diameter) Each $20.00
Steam channel knee Each $48.00
Sleeve cuff Each $30.00
Pant cuff Each $40.00
Small patch Each $10.00
Medium patch Each $15.00
Large patch Each $25.00
Bar tack Each $5.00
Rivets Each $2.00
Snaps Each $3.50
Zipper closures Chest Each $31.00
Zipper closures Fly Each $12.00
Hook and loop closures Chest Each $37.00
Hook and loop closures Fly Each $21.00
Hook and loop pockets Each $22.00
Trim sleeve Each $25.00
Trim chest Each $60.00
Trim hemline Each $60.00
Trim radio pocket Each $12.50
Trim mask pouch Each $20.00
Liner patch – moisture barrier Each $15.00
Liner patch – thermal liner Each $15.00
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4 Additional Services
Manufacture
Item Description Unit Unit Price
Letter Patch w/ Heat seal letters Each $22.00
Mask pouch (sewn on) - 4” x 9” x 15” Each $45.00
Semi-expansion pocket - 2” x 9” x 8” (Coat) Each $45.00 Expansion Cargo, full below - 2” x 10” x
10” (Pant) Each $45.00
Radio pocket w/ Mic Tab combination w/
double notch closure flap - 2” x 3.5” x 7” Each $55.00
Mic Tab Each $11.00
Flashlight holder w/ Mic Tab combination Each $16.00
NOMEX® hand and wrist guard w/ Thumb
loop Each $15.75
Hanging D ring Each $15.00
Standard Knee of specified turnout (Globe®
GXtreme) Each $45.00
Steam channel knee Each $40.00
Nomex embroidery Each $7.50
2. CITY REPRESENTATIVE:
Department Contact: Aurelia Harris, Administrative Analyst, (209) 572-9892 Purchasing Contact: Carol Wattle, Buyer, (209) 577-5406 The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effected only by written change to this Agreement, issued by the City of Modesto, Purchasing Division.
3. CONTRACTOR CONTACT:
CONTRACTOR Contact: Ralph A. Scott, President, (209) 810-3799, [email protected]
4. TERM OF AGREEMENT:
The term of this Agreement shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of CITY, for a total of up to five (5) years.
Year 1: June 21, 2022 through June 20, 2023
Year 2: June 21, 2023 through June 20, 2024
Year 3: June 21, 2024 through June 20, 2025
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5 Year 4: June 21, 2025 through June 20, 2026
Year 5: June 21, 2026 through June 20, 2027
Pricing as set forth in Section 1.c. above shall remain firm for the first two (2) years of this Agreement.
Pricing will remain firm for the first two (2) years of this Agreement. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the CITY.
The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration: Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/ , California data.
Price increases (other than fuel) for subsequent Agreement years three (3) through five (5) shall not exceed the Consumer Price Index (CPI) in any one (1) Agreement year and shall be negotiated through the Purchasing Division. Request for price increases shall be submitted by CONTRACTOR in writing, sixty (60) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.
5. LIABILITY INSURANCE:
CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by Risk Management of the CITY. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
a) General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate #7..
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6 limit shall be twice the required occurrence limit. The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent CONTRACTOR’s and sub-contractors; products and completed operations as applicable.
b) Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
c) Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000.
If at any time any of said policies shall be unsatisfactory to CITY, as to form or substance, or if a company issuing such policy shall be unsatisfactory to CITY, CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Manager via PINS for approval and submit a certificate thereof as herein above provided. Upon failure of CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this agreement, at the election of CITY, may be forthwith declared suspended, or terminated. Failure of CONTRACTOR to obtain and/or maintain any required insurance shall not relieve CONTRACTOR from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of CONTRACTOR concerning indemnification. The CITY, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers’ Compensation, Professional Liability.
The Workers’ Compensation insurer shall agree to waive all rights of subrogation against CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for CITY.
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7 CONTRACTOR’s insurance policy(es) shall include a provision that the coverage is primary as respects CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best’s rating of A:VII or with approval of the Risk Manager. The CONTRACTOR must deliver certificates evidencing existence of the insurance to the CITY prior to the time agreement is signed.
CONTRACTOR agrees to provide CITY with a separate endorsement evidencing proof of CITY’s additional insured status required herein (both general and automobile liability) as well as a separate endorsement for the Workers’ Compensation insurer’s waiver of all subrogation rights as stated above. Every endorsement shall identify the policy number.
For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, agents, employees, and volunteers. Any insurance or selfinsurance maintained by the Entity, its officers, agents, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.
6. PAYMENT:
All invoices shall be paid in full within thirty (30) days after completion and acceptance of the service by the CITY, and receipt of a properly prepared invoice. The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
[email protected]
CONTRACTOR shall establish a separate billing account number for each CITY department and/or division.
At a minimum, invoices shall state the following:
Reference Agreement #: 220444
CITY department/division name and address
Billing period
Service hours worked day and week
Unit price, extended price, sales tax and total
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8 7. INDEMNITY:
The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this Agreement.
CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for CONTRACTOR to procure and maintain a policy of insurance.
8. ARBITRATION:
Any dispute or claim arising or related to this Agreement, its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively, (except as approved below) resolved by final binding arbitration before the American Arbitration Association (AAA), utilizing its Commercial Arbitration Rules. One Arbitrator shall be selected using AAA procedures. The Arbitrator shall use all reasonable efforts to minimize discovery and to complete the arbitration proceedings as expeditiously as possible. The Arbitrator shall render a written decision within thirty (30) calendar days of the hearing. The Arbitrator will not award attorney’s fees, or punitive, incidental, consequential, treble or other multiple or exemplary damages, and the parties hereby agree to waive and not seek such damages. Either party may seek judicial relief to compel the other party to comply with the provisions of this Section, or injunctive or other equitable relief to protect its intellectual property rights, provided (unless prohibited by applicable law) that the remainder of the dispute or claim is submitted to arbitration. The arbitration shall be held in Modesto California; both parties give their irrevocable consent to jurisdiction of courts of or in the State of California, as well as processes of the AAA in California. Awards shall be final, binding and non-appealable (except on the #7..
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9 minimal grounds required under the Federal Arbitration Act or other applicable law). All awards may be filed with one or more courts, state, federal or foreign having jurisdiction over the party against whom such award is rendered or its property, as a basis of judgment and of the issuance of execution for its collection.
9. GOVERNING LAW:
This Agreement shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.
10. COMMENCEMENT AND COMPLETION OF THE WORK:
The work contemplated herein shall be commenced after the contract administrator receives and has on file:
Proofs of insurance (approved by Risk Management); and
Executed Agreement and all exhibits thereto.
11. TERMINATION OF SERVICES:
Termination by CITY for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, at its option, CITY may terminate this Agreement by giving written notification to CONTRACTOR. The termination date shall be the effective date of the notice. For the purposes of this section, material breach of this Agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of CITY's property by CONTRACTOR, dishonesty or theft.
Termination by CITY for Convenience
The CITY may also terminate the CONTRACTOR's performance under this Agreement, either in whole or in part, at its own discretion, or when conditions encountered during the work make it impossible or impracticable to proceed, or when the CITY is prevented from proceeding with this Agreement by act of God, by law, or by official action of a public authority, or upon a determination by the CITY that such termination is in the best #7..
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10 interest and convenience of the CITY, or whenever the CITY is prohibited from completing the work for any reason.
The CITY shall provide no less than ten (10) calendar day’s written notice of its intent to terminate this Agreement for convenience, and shall endeavor to provide the CONTRACTOR with consultation with the CITY prior to termination.
Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, sub-contractors and agents are notified of such termination and act as specified in the notice of termination; b. Terminate all orders and sub-contractors except as necessary to complete any portion of the work that is not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such sub-contractors but in no event shall recovery by any CONTRACTOR or sub-contractor include lost profits for portions of the work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the work whether completed or in process;
e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the work as has not been terminated; #7..
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11 g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the work and/or property related to the work;
h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR's work on the project.
i. The CONTRACTOR understands and agrees that CITY may, in CITY's sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's services which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CITY as of the termination date.
CITY will pay CONTRACTOR an amount based on the percentage of satisfactory work completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under this Agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the work such as subcontractor agreements or contracts for materials; b. The agreement price allocable to the portion of the work properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR.
Authorization to Terminate Agreement
Termination of this Agreement may be invoked by the City Manager, or his/her designee, subject to the right of the CONTRACTOR to appeal the City Manager, or his/her designee’s, decision to the City Council. The CONTRACTOR shall appeal by notifying the City Clerk in writing within ten (10) calendar days #7..
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12 of receipt of written notification from CITY of termination of the agreement. In the event that termination of this agreement is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.
12. COMPLIANCE WITH ALL LAWS:
CONTRACTOR hereby agrees that CONTRACTOR and its sub-contractors, if any, in the performance of the work described, designated and shown upon the plans herein referred to, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.
13. AGREEMENT DOCUMENTS:
The complete agreement between the parties hereto consists of this Agreement and the following documents which are incorporated herein by this reference:
a. Resolution No. 2022-_______;
b. CONTRACTOR submittal;
c. RFB No. 2122-34
d. Insurance Certificates,
These documents include important legal requirements, procedures and restrictions and should be reviewed by CONTRACTOR. They are available for review during normal business hours in the Department of Finance, Purchasing Division). All documents specified above are intended to operate so that any work called for in any one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents.
14. NOTICES:
Any notice, payment or instrument required or permitted by this agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar #7..
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13 week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
CONTRACTOR: Ralph A. Scott
Scotts PPE Recon Inc.
827 Black Diamond Way, Bldg. C
Lodi, CA 95240
[email protected]
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
15. SIGNATOR(IES) FOR CONTRACTOR:
The undersigned signator (ies) for CONTRACTOR warrant(s) and represent(s) that he/she/they is/are legally competent to execute the agreement and has/have full authority to execute this Agreement.
16. ASSIGNMENT:
Neither this Agreement nor any portion thereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.
17. WAIVER:
The waiver by any party to this Agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
18. HEADINGS NOT CONTROLLING:
Headings used in the agreement are for reference purposes only and shall not be considered in construing this Agreement.
19. MISCELLANEOUS:
Time is of the essence in every provision of this Agreement. #7..
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14 20. ENTIRE AGREEMENT:
This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this agreement which vary from CONTRACTOR’s proposal are controlling and are deemed accepted by CONTRACTOR by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and communications relative to this agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this agreement. No future waiver or exception to any of the terms, conditions, and provisions of this agreement shall be considered valid unless specifically agreed to in writing by all the parties.
21. PARTIAL INVALIDITY:
If any provision in this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this agreement in duplicate by its City Manager and attested by its City Clerk under authority of Resolution No. 2022-_______, adopted by the Council of the City of Modesto on the _____________ day of ______________, 2022 and Scotts PPE Recon Inc. has caused this Agreement to be duly executed. #7..
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1 CITY OF MODESTO
REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
FOR
PERSONAL PROTECTION EQUIPMENT CLEANING, INSPECTION AND REPAIR
SERVICES
BID OPENING: MARCH 01, 2022 at 11:00 A.M.
CITY OF MODESTO CONTACT: Carol Wattle, Buyer
E-MAIL ADDRESS: [email protected]
PHONE: (209) 577-5406
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2 CITY OF MODESTO
REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
TABLE OF CONTENTS
Page
. Notice to Bidders................................................................................................................ 3 . City Contacts...................................................................................................................... 4 . Calendar of Events.............................................................................................................. 4 . Offer and Acceptance......................................................................................................... 4 . Covid-19 Response............................................................................................................. 5 . Submittal Checklist............................................................................................................. 6 . REQUIRED DOCUMENT
. Bid Acknowledgement (Signature Form)........................................................................ 7 . Pricing Schedule (Signature Form).............................................................................8-11 . Exceptions, Clarifications, Amendments (if applicable)................................................. 12 . References....................................................................................................................13-14 . Financial Interest Disclosure Form (Signature Form)..............................................15-17 . Support of Local Vendors (if applicable)......................................................................... 18 . Company History Statement ........................................................................................... 19 . Addenda Acknowledgement Page (if applicable) ........................................................... 20 . Warranty Statements ........................................................................................................ 21 . Requirements ................................................................................................................... 22 . Experience ....................................................................................................................... 23 . TECHNICAL SPECIFICATIONS AND REQUIREMENTS
. Scope of Work.................................................................................................................. 24 . Specifications.................................................................................................................... 24 . Required Licenses............................................................................................................. 25 . Insurance......................................................................................................................25-26 . GENERAL REQUIREMENTS
. Bid Submittal.................................................................................................................... 27 . Acceptance/Rejection of Irregular Bids........................................................................... 27 . Complete Bid Document.................................................................................................. 27 . Compliance/Non-Compliance.......................................................................................... 28 . Pricing Format.................................................................................................................. 28 . Pricing Schedule............................................................................................................... 28 . Award of Bid .................................................................................................................... 28 . Term of Agreement .......................................................................................................... 29 . Termination of Services ................................................................................................... 29 . Quantities.......................................................................................................................... 30 . Funding............................................................................................................................. 30 . Other Government/Publicly Funded Agencies................................................................ 30 . Protest and Appeal Procedures....................................................................................32-35 . Payment ............................................................................................................................ 36 . Sample Annual Agreement …………………………………………………………37-50
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3 NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California, will receive at the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 sealed bids for the furnishing of PPE CLEANING, INSPECTION AND REPAIR SERVICES for the City of Modesto, Fire Department.
All equipment, materials, and supplies shall be furnished F.O.B. City of Modesto. Bidders are highly recommended to download all documents from the City’s Purchasing website at http://www.modestogov.com/257/Contracting-Bid-Opportunities; such bids shall include all necessary specifications.
Each bid shall be sealed and filed with the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 prior to Tuesday, March 01, 2022 at 11:00 A.M., at which time bids will be opened, read and recorded.
All bids shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.
Bids will be received only at the address shown above, and prior to the time indicated. Any bid received at or after said time and/or date, or at a place other than the stated address cannot be considered and will be returned to the bidder unopened.
All bids, whether delivered by an employee of the bidder, U.S. Postal Service, courier or package delivery service must be received and time stamped at the stated address prior to the time designated. The City Clerk’s time stamp shall be considered the official timepiece for the purpose of establishing the actual receipt of bids.
The City of Modesto assumes no responsibility for delay in the delivery of the bid.
On the outside of the bid envelope and courier envelope, if any, the bidder shall indicate the following:
NAME AND ADDRESS OF BIDDER
SPECIFICATION NUMBER 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
BID OPENING DATE: MARCH 01, 2022 AT 11:00 A.M.
MAIL TO: CITY CLERK DELIVER/ COURIER TO: CITY CLERK
CITY OF MODESTO CITY OF MODESTO
P.O. BOX 642 1010 10TH STREET, SUITE 6600
MODESTO, CA 95353 MODESTO, CA 95354
The City reserves the right to reject any or all bids or to waive any informalities or minor irregularities in a bid.
No bidder may withdraw his/her bid for a period of ninety (90) days after the date set for the opening thereof.
Note: Deliver or mail bids to the referenced address, only, as indicated in the Notice to Bidders. #7..
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4 CITY CONTACTS
All questions regarding these specifications, terms, and conditions shall be submitted in writing to Carol Wattle, Buyer, via email at: [email protected]
All contact during the bid process shall be through the Purchasing Division. Attempts by the bidder to contact department representatives may result in disqualification of the bidder from the bid process.
CALENDAR OF EVENTS
Event Date
Bid Issued January 21, 2022
Written Questions Due February 01, 2022
Addendum Issued (if required) February 08, 2022 (approximate date) Bid Opening PRIOR 11:00 A.M. on Tuesday, March 01, 2022 Bid Award Approximately June 2022
It is the responsibility of each bidder to be familiar with all of the specifications, terms and conditions and the site condition (if applicable). The bidder agrees and acknowledges all RFB specifications, terms, and conditions and indicates the ability to perform by submission of a bid. By the submission of a bid, the bidder certifies that if awarded an agreement they will make no claim against the City based upon ignorance of conditions or misunderstanding of the specifications.
OFFER AND ACCEPTANCE
Seller represents his/her acceptance to provide products and/or services as follows: CITY's offer to purchase products and/or services is expressly conditioned upon Seller's assent to the terms and conditions set forth in the agreement documents, specifications, supporting data, and these articles. Seller agrees that Seller's Order Acknowledgement terms and conditions received prior to, during, or after order placement by CITY are hereby rejected. CITY agreements signed by the City's Purchasing Manager or designated agent and issued to Seller constitutes written notification to Seller of CITY's rejection of any and all of Seller Order Acknowledgements, counter offers and change to the CITY's terms and conditions. #7..
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5 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
COVID-19 RESPONSE
The City of Modesto is doing our part to slow the spread of COVID-19. The City of Modesto will be broadcasting bid openings electronically via Microsoft Teams at 11:00 a.m. PT on Tuesday, March 01, 2022.
The City Clerk Record of Bid document will be available on Planet Bids by the end of day, Tuesday, March 01, 2022. The public bid opening for RFB 2122-34 PPE Cleaning, Inspection and Repair Services will be available using the URL link, video system or via phone provided below. By submitting your bid for the above stated RFB you acknowledge, understand, and agree to this modified bid opening procedure.
URL-https://teams.microsoft.com/l/meetup
join/19%3ameeting_NTI0YzBiMDMtNDQ0Yi00YjNlLWIwZjYtYzg4ZDVjMDdkM2Mz%40thread.v2/0?context=%7 b%22Tid%22%3a%22125ccacf-fc61-463c-9976-189f876ff90b%22%2c%22Oid%22%3a%229715c333-c997- 4dd7-8984-12cd4deaa705%22%7d
Join Microsoft Teams Meeting
+1 469-998-7409 United States, Dallas
Conference ID: 961 656 049#
Should you have any questions regarding this, please do not hesitate to contact Carol Wattle, by email at [email protected] or telephone at (209)577-5406.
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6 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
SUBMITTAL CHECKLIST
BID SUBMITTAL CHECKLIST
The bidder shall provide a complete bid in a sealed envelope before 11:00 A.M. on the bid opening date.
Failure to provide all the required documents may cause the bid to be considered non-responsive.
PPE CLEANING, INSPECTION AND REPAIR SERVICES
COMPLETE BID Page No.
. Bid Acknowledgement (Signature Form)........................................................................ 7 . Pricing Schedule (Signature Form).............................................................................8-11 . Exceptions, Clarifications, Amendments (if applicable)................................................. 12 . References....................................................................................................................13-14 . Financial Interest Disclosure Form (Signature Form)..............................................15-17 . Support of Local Vendors (if applicable)......................................................................... 18 . Company History Statement ........................................................................................... 19 . Addenda Acknowledgement Page (if applicable) ........................................................... 20 . Warranty Statements ........................................................................................................ 21 . Requirements.................................................................................................................... 22 . Experience ....................................................................................................................... 23 #7..
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7 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
BID ACKNOWLEDGEMENT
The City is soliciting bids from qualified Bidders to furnish its requirements per the specifications, terms and conditions contained in the above referenced bid number. This Bid Acknowledgement must be completed, signed by a responsible officer or employee, dated and submitted with the bid response.
Obligations assumed by such signature must be fulfilled.
1. Preparation of Bids: (a) All prices and notations must be printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the bid. (b) Quote price as specified in bid. No alterations or changes of any kind shall be permitted to the Bid Form. Responses that do not comply shall be subject to rejection in total.
2. Failure to Submit Bid: If you are not submitting a bid but want to remain on the mailing list and receive future bids, complete, sign and return this Bid Acknowledgement and state the reason you are not pricing.
3. Taxes and Freight Charges: (a) Unless otherwise required and specified in the RFB, the prices quoted herein do not include Sales, Use or other taxes. (b) No charge for delivery, drayage, express, parcel post packing, cartage, insurance, license fees, permits, costs of bonds, or for any other purpose, except taxes legally payable by City, will be paid by the City unless expressly included and itemized in the bid. (c) Amount paid for transportation of property to the City is exempt from Federal Transportation Tax. An exemption certificate is not required where the shipping paper shows the consignee as one (1) of the Agencies; as such papers may be accepted by the carrier as proof of the exempt character of the shipment. (d) Articles sold to the Agencies are exempt from certain Federal excise taxes. The Agencies will furnish an exemption certificate.
4. Award: (a) Unless otherwise specified by the bidder or the RFB gives notice of an all-or-none award, the City may accept any item or group of items of any bid. (b) Bids are subject to acceptance at any time within thirty (30) days of opening, unless otherwise specified in the RFB. (c) A valid, written purchase order mailed, or otherwise furnished, to the successful bidder within the time for acceptance specified results in a binding contract without further action by either party. The contract shall be interpreted, construed and given effect in all respects according to the laws of the State of California.
5. Patent Indemnity: Bidders who do business with the City shall hold the City, its officers, agents and employees, harmless from liability of any nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or un-patented invention, article or appliance furnished or used in connection with the contract or purchase order.
6. Samples: Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the bidder’s expense.
7. Rights and Remedies of Agencies for Default: (a) In the event any item furnished by the bidder in the performance of the contract or purchase order should fail to conform to the specifications therefore or to the sample submitted by the bidder with its bid, the City may reject the same, and it shall thereupon become the duty of the bidder to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the bidder fail, neglect or refuse so to do the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items and to deduct from any moneys due or that may there after come due to vendor the difference between the prices named in the contract or purchase order and the actual cost thereof to the City. In the event that the bidder fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. (b) Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the bidder. (c) The rights and remedies of the Agencies provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract.
8. Discounts: (a) Terms of less than ten (10) days for cash discount will be considered as net. (b) In connection with any discount offered, time will be computed from date of complete, satisfactory delivery of the supplies, equipment or services specified in the RFB, or from date correct invoices are received by the City at the billing address specified, if the latter date is later than the date of delivery. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing the City’s check.
9. California Government Code Section 4552: In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tender’s final payment to the bidder.
10. No Guarantee or Warranty: The City makes no guarantee or warranty as to the condition, completeness or safety of any material or equipment that may be traded in on this order.
11. Two “Inked” Signed Original Bid Document Requested: Failure to furnish at least one “inked” signed original bid document may result in disqualification.
THE undersigned acknowledges receipt of the referenced RFB and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the bidder indicated below, in accordance with the specifications, terms and conditions of this RFB and Bid Acknowledgement, for the pricing indicated on the Pricing Schedule.
Firm:
Address:
City/State/Zip:
Signature/Title/Date:
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8 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
PRICING SCHEDULE
All labor, equipment, tools, fuel and insurance necessary to perform the required services shall be included in bid pricing. Bid must be submitted on the Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, Amendments” section on page 12.
ESTIMATED ANNUAL QTY x UNIT PRICE = EXTENDED PRICE
**In case of discrepancy between a unit price and an extended price, the unit price will be presumed to be correct, subject, however, to correction to the same extent and in the same manner. ** Item Description Estimated
Annual
Qty
Unit Unit Price Extended Cost
Inspection
Outer shell material 300 Each $ $
Moisture barrier 300 Each $ $
Thermal liner 300 Each $ $
Structure helmets 300 Each $ $
Structure boots 300 Pair $ $
Structure gloves 300 Pair $ $
Structure flash hoods 300 Each $ $
Laundering/Cleaning
Structure Coat 300 Each $ $
Structure Pant 300 Each $ $
Wild land Coat 300 Each $ $
Wild land Pant 300 Each $ $
EMS ensemble 300 Each $ $
Structure helmets 300 Each $ $
Structure boots 300 Pair $ $
Structure flash hoods 300 Each $ $
Structure gloves 300 Pair $ $
TOTAL ANNUAL COST $
Company Name (Bidder):
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9 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
PRICING SCHEDULE
ADDITIONAL OPTIONS
Alterations
Item Description Qty Unit Unit Price
Increase hem length 1 Each $
Decrease hem length 1 Each $
Increase sleeve length 1 Each $
Decrease sleeve length 1 Each $
Increase waist size 1 Each $
Decrease waist size 1 Each $
Increase inseam length 1 Each $
Decrease inseam length 1 Each $
Extension Panel w/ outer shell material, moisture
barrier and thermal liner 1 Each $
Installation/Removal/Repair
Item Description Qty Unit Unit Price
Remove letter patch 1 Each $
Mask pouch (sewn on) 1 Each $
Mic tab 1 Each $
Flashlight holder w/ Mic Tab combination 1 Each $
Hanging D ring 1 Each $
Thumb loop 1 Each $
hanging ring (2” diameter) 1 Each $
Steam channel knee 1 Each $
Sleeve cuff 1 Each $
Pant cuff 1 Each $
Small patch 1 Each $
Medium patch 1 Each $
Large patch 1 Each $
Bar tack 1 Each $
Rivets 1 Each $
Snaps 1 Each $
Zipper closures Chest 1 Each $
Zipper closures Fly 1 Each $
Hook and loop closures Chest 1 Each $
Hook and loop closures Fly 1 Each $
Hook and loop pockets 1 Each $
Company Name (Bidder):
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10 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
PRICING SCHEDULE
ADDITIONAL OPTIONS
Installation/Removal/Repair
Item Description Qty Unit Unit Price
Trim sleeve 1 Each $
Trim chest 1 Each $
Trim hemline 1 Each $
Trim radio pocket 1 Each $
Trim mask pouch 1 Each $
Liner patch – moisture barrier 1 Each $
Liner patch – thermal liner 1 Each $
Manufacture
Item Description Qty Unit Unit Price
Letter Patch w/ Heat seal letters 1 Each $
Mask pouch (sewn on) - 4” x 9” x 15” 1 Each $
Semi-expansion pocket - 2” x 9” x 8” (Coat) 1 Each $
Expansion Cargo, full below - 2” x 10” x 10” (Pant) 1 Each $ Radio pocket w/ Mic Tab combination w/ double
notch closure flap - 2” x 3.5” x 7” 1 Each $
Mic Tab 1 Each $
Flashlight holder w/ Mic Tab combination 1 Each $
NOMEX® hand and wrist guard w/ Thumb loop 1 Each $
Hanging D ring 1 Each $
Standard Knee of specified turnout (Globe®
GXtreme) 1 Each $
Steam channel knee 1 Each $
Nomex embroidery 1 Each $
Company Name (Bidder):
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11 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
PRICING SCHEDULE
City Business/Delivery License No. __________ Expiration Date: __________ Stated pricing is subject to (______ %) cash discount if invoice is paid within ______ days after acceptance of service.
A City Business License is not required at the time of the bid, however, please note the License No. if bidder should already have one. (See Section 1.4 for further details) Does bidder accept the City’s E-pay Payment Program? Please check one: Yes ____ No ____ Information regarding the program is provided in Section 2.26 Payment.
THE undersigned acknowledges receipt of the referenced RFB and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the bidder indicated below, in accordance with the specifications, terms and conditions of this RFB and Bid Acknowledgement, for the pricing indicated on the Pricing Schedule.
Company Name (Bidder):
By (Person Submitting Bid): (Print)
By (Person Submitting Bid): (Signature)
Title of Person Submitting Bid:
Business Address
(City/State/Zip):
E-Mail Address:
Telephone Number:
Fax Number:
Date:
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12 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
EXCEPTIONS, CLARIFICATIONS, AMENDMENTS
Exceptions, Clarifications, Amendments
List requests for bid clarifications and exceptions below, if any, sign and submit with your bid response. This form is not required to be returned, unless an Exception, Clarification, or Amendment is requested by the bidder. Any requested exception, clarification or amendment may not be accepted and may deem the bidder as non-responsive.
Item
No.
Reference To: Description
Page No. Paragraph No.
Company Name (Bidder):
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13 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
REFERENCES
All Bidders must provide a list of five (5) current or former clients in the area provided below, identifying prior experience with similar type of services requested by the City under Scope of Work.
References shall have similar volume and requirements to those outlined in these specifications, terms and conditions. Bidders failing to provide references may be deemed as non-responsive.
The City may contact some or all of the references provided in order to determine the bidders’ performance record on work and equipment similar to that described in this bid. The City reserves the right to contact references other than those provided in the response and to use the information gained from them in the award process.
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
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14 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
REFERENCES - CONTINUED
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name (Bidder):
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15 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
FINANCIAL INTEREST DISCLOSURE
REQUIRED DISCLOSURE BEGINNING THE COUNCIL MEETING
OF JANUARY 7, 2003
The ordinance requiring financial interest disclosure by all parties having a direct or indirect interest of $2,000 or more (except for certain publicly traded companies) will be effective at the Council meeting of January 7, 2003. This means that any Council action on a contract, agreement or development right must be accompanied by a FINANCIAL INTEREST DISCLOSURE FORM listing by name all parties that have a material financial interest in the agreement, contract or development right.
PLEASE NOTE, any Council action that requires a FINANCIAL INTEREST DISCLOSURE cannot be considered by the City Council until the required reporting is made. That means that Agenda Items without the DISCLOSURE will be removed from the Council Agenda.
FinDisclosure12-19
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16 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
FINANCIAL INTEREST DISCLOSURE FORM
All persons included within the meaning of either of the following tests have a material financial interest in an agreement, or application for development rights, submitted for approval or disapproval by the City Council, and shall be identified by the applicant, by name, on page 17.
Tests of Materiality:
1. Whether it is foreseeable to a reasonable person that the value of their interest in property available for use by an applicant, or their interest in the applicant itself, may increase or decrease by an amount greater than $2,000.00 as a direct or indirect result of Council action on the applicant’s agreement or application for development rights.
2. Whether it is foreseeable to a reasonable person that the person’s gross income from the applicant may increase or decrease by a sum greater than $2,000.00 as a direct or indirect result of Council action on the agreement or application for development rights.
It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the agreement or application or development rights is true, correct and complete.
By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both.
Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
By signing this document, I agree to the information contained within.
COMPANY NAME: ____________________________________________________ __________________________________
APPLICANT’S NAME (SIGNATURE):
__________________________________
APPLICANT’S NAME/TITLE (PRINT):
__________________________________
DATE: ____________________________
Applicable Names: (if any, use page 17)
Questions concerning the application of either test to particular facts should be resolved in advance of Council action by agreement with the department head recommending approval of its agreement/application. #7..
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17 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
FINANCIAL INTEREST DISCLOSURE FORM
COMPANY NAME: __________________________________________ NAMES
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
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18 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
SUPPORT OF LOCAL VENDORS
REQUEST FOR DECLARATION
of
LOCAL BUSINESS
Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 8-3.203 and 8-3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest bid or quote submitted by a local business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the local bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within five (5) business days after notification by City Purchasing staff, provided that said local bidder is deemed to be a responsible bidder as determined by the Purchasing Manager.
To qualify as a local bidder, the bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.
This document is only required should the bidder request to be considered for the Support of Local Vendor preference, and meets the criteria noted above.
I declare I am a local business per the above criteria
SUPPORT OF LOCAL VENDORS
DECLARATION OF ELIGIBILITY
Company Name:
Street Address:
Telephone Number:
Business License Number:
Under penalty of perjury, The Undersigned declares that the foregoing information is true and correct:
Print/Type Name:
Title:
Signature:
Date:
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19 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
COMPANY HISTORY STATEMENT
Your company shall have been in business for a minimum of three (3) continuous years (immediately prior to the time of the RFB submittal date) providing the types of services requested herein.
The company history statement shall be prepared on company letterhead and provided with the bid submittal. #7..
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20 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
ADDENDA ACKNOWLEDGEMENT
The bidder shall check the RFB listing on the City or Planet Bid website, periodically, and in any event, no later than the day prior to bid opening to obtain any addenda information. The changes identified in the addenda modify this request for bid and specifications. The addenda now become a part of this request for bid and specifications. Signing the Bid on the signature portion thereof, the bidder is acknowledging that the bidder has confirmed that he or she has received all addenda issued for this request for bid and specifications, and has included costs for such in the bid submitted. Failure to list and acknowledge all addenda numbers may cause the bid to be considered nonresponsive. Do not attach any of the addenda to this sheet nor include them with the bid.
This document is only required to be returned should addenda have been issued.
The Bid is submitted with respect to the changes to the request for bid and specifications included in addenda numbers:
LIST ALL ADDENDA NUMBERS:_____________________________________________________ Company Name (Bidder):
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21 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
WARRANTY STATEMENTS
Bidder shall attach to his/her bid a written statement detailing the product and workmanship warranty, term and conditions as defined in the RFB.
Materials and workmanship warranty shall be prepared on company letterhead and provided with the bid submittal.
Notwithstanding any other provisions of this bid, bidder warrants that the materials, supplies, or other services furnished shall be on the most suitable grade and exactly as specified in this bid. Such warranty shall include the following; performance, workmanship, labor, materials, and bidder design or engineering contributions. If a defect is discovered in any item of the materials, assemblies, components, supplies or services covered in this bid, bidder shall correct at their expense, such defects as are reported within thirty (30) days of final acceptance.
Upon expiration of the applicable warranty period, all such liability shall terminate except for fraud or such gross mistakes as amount to fraud, latent defects, or specific failure to comply with the terms or any resultant order.
All materials, parts, labor, assemblies and components shall by subject to the warranty conditions and terms unless specifically exempted in writing by the City of Modesto.
Bidder shall state warranty on repairs for the following:
• Structure ensemble
• Wildland ensemble
• EMS Jacket
• Structure boots
• Structure helmet
#7..
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22 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
REQUIREMENTS
Requirements Can meet
Requirement
Cannot meet
Requirement
Follow the established requirements for the NFPA 1851 standard when inspecting, cleaning and/or repair.
Follow the established requirements for NFPA 1977 to inspect and repair wildland ensembles (jackets and pants) and EMS jackets.
Provide and maintain accurate detailed service reports within a fourteen (14) calendar day turnaround time upon request for authorized department personnel.
Provide free evaluation and cost estimate report for repairs over $175.00.
Provide embroidery service and sew flags on turnout ensembles, wildland ensembles, and EMS jackets.
Provide bar coding service for items listed on the pricing schedule.
Guarantee a ninety-six (96) hour turnaround time for cleaning, repairs, and inspection of ensembles and/or boots.
Maintain adequate materials on-site to meet the department’s turnaround time requirement for repairs.
Provide pick-up and delivery and also be able to provide emergency pick-up.
Provide a service center located within a four (4) hour drive (oneway) of Modesto Fire Department (MFD) Stores located at: 1220 Fire Science Lane, Modesto, CA.
Provide service to tailor and repair structure ensembles, wildland ensembles, and EMS coats as described by the respective manufacturer.
Provide service with unvarying materials when installing, manufacturing, or repairing ensembles.
Have the capacity to provide un-scheduled cleaning for a minimum of two-hundred seventy-five (275) ensembles within a seven (7) calendar day turnaround time upon the department’s request.
Provide two (2) annual visits one (1) scheduled and one (1) unannounced visit to inspect the contractor’s facility. #7..
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23 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
EXPERIENCE
Bidder shall provide with their bid submittal complete information for the following:
The Contractor shall have a minimum of two (2) years’ experience within the last five (5) years providing similar cleaning, inspection & repair services of structural firefighter turnouts & wildland ensembles as described within this RFB to a city, county, or state fire department that has at least 150 full-time personnel. #7..
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24 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
TECHNICAL SPECIFICATIONS AND REQUIREMENTS
1.1 SCOPE OF WORK:
The City of Modesto, Fire Department is requesting sealed bids for structural and proximity firefighter personal protection equipment (PPE) cleaning, inspection and repair services on an “as needed” basis, throughout the life of the agreement.
1.2 SPECIFICATIONS:
The Contractor shall provide and maintain the following:
• Provide and maintain valid letters or authorization from respective manufacturer to repair moisture barrier.
• Provide and maintain valid letters or authorization from respective manufacturer to repair and tailor structure ensembles, including outer shell and inner liner, wildland ensembles, EMS coats and leather structure boots.
• The Contractor shall meet the established requirements for NFPA 1851 standard. • The Contractor shall meet the established requirements for NFPA 1977 standard.
1.2.1 COMERCIAL SEWING MACHINE EQUIPMENT REQUIREMENTS:
The Contractor shall be able to provide tailor and repair structure ensembles, wildland ensembles and EMS coats using the equipment listed below:
• Single needle, lock stitch and flat bed
• Double needle, lock stitch, flat-bed 3/16″ spacing
• Bar tracker
• Double needle five (5) spool serger with locking chain stitch • Single needle three (3) spool serger
• Off the arm (filling) machine, double needle, bottom chain stitch • Single needle cylinder
• Double needle cylinder
• Double needle, lock stitch, flat-bed 0/0″ spacing between needles. • Merrow miniature serger, one (1) needle, three (3) spool (complete thumbhole wristlets)
1.2.2 REPAIR ESTIMATE REQUIREMENTS:
The Contractor shall obtain written authorization from the Fire Department contact prior to starting work for item repair estimates over $175.
1.2.3 REPORTS:
The Contractor shall provide a detailed service report upon request for authorized department personnel. The report should include all activities of quantity of items cleaned, types of repairs, overall cost of each item, a time log of retired items, and locations, including boots.
1.2.4 REPAIR MATERIALS:
The Contractor shall maintain adequate materials on-site to meet the department’s turnaround time requirement for repairs. When a variance or exemption is made, the material must be of equal rating, quality, and color and meet all NFPA standards of the material being replaced. Prior authorization is required for repairs with a variance or exemption by the Fire Department PPE Coordinator or designee. #7..
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25 1.3 CONTRACTUAL CHANGES:
Changes of a contractual or business nature shall be affected only by written change to the agreement by the City of Modesto, Purchasing Division.
1.4 REQUIRED LICENSES:
Prior to beginning any service that shall be furnished under this specification, the bidder shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389.
1.5 INSURANCE:
The CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by Risk Management of the CITY. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
A. General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent CONTRACTOR’s and sub-contractors; products and completed operations as applicable.
B. Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
C. Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000.
If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Management via PINS for approval and submit a certificate thereof as hereinabove provided. Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this agreement, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification. The CITY, its agents, officers, officials, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation.
The Workers' Compensation insurer shall agree to waive all rights of subrogation against the CITY, its agents, officers, officials, employees, and volunteers for losses arising from work performed by CONTRACTOR for the CITY.
The CONTRACTOR’s insurance policy(ices) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured; and, #7..
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26 shall be placed with insurer(s) with acceptable Best's rating of A: VII or with approval of the Risk Manager.
For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.
CONTRACTOR shall either require any sub-contractor to procure and to maintain during the term of the subcontract all insurance in the amounts specified above, or shall insure the activities of sub-contractors in the policy specified above. The limits of liability required may vary, depending on the type of permit or contract.
1.6 CHARACTER OF WORKERS:
If any person employed by the contractor fails or refuses to carry out the direction of the City Representative, or appears to be incompetent or acts in a disorderly or improper manner, that person shall be discharged immediately from the site on the request of the City Representative or Purchasing Manager, and such person shall not again work on any City site.
1.7 DELAY BY THE CITY:
Any act or omission of any kind by the City of Modesto, its officers, agents or employees, which causes the Contractor delay in the completion of the work shall be grounds for extension of time on the part of the Contractor to complete the work, but shall give the Contractor no damages for such delay. #7..
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27 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-34
PPE CLEANING, INSPECTION AND REPAIR SERVICES
GENERAL TERMS AND CONDITIONS
2.1 BID SUBMITTAL:
Bidders should submit two (2) “inked” (preferably blue ink) signed original bid document, plus one (1) copy of the signed original bid document, and one (1) electronic copy submitted via USB. The original bid document shall be clearly marked. Photocopies do not constitute an original bid.
FAILURE TO FURNISH AT LEAST ONE “INKED” SIGNED ORIGINAL BID DOCUMENT MAY RESULT IN DISQUALIFICATION.
It is the responsibility of the bidders to identify information in their bid responses that they consider to be confidential under the California Public Records Act. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
All costs associated with the preparation of this bid shall be borne by the bidder.
All exceptions taken to these specifications shall be specifically and clearly identified on Exceptions, Clarifications and Amendments form. Failure to comply with this provision may deem the bid as nonresponsive.
Please review the Sample Annual Agreement and make note on the Exceptions, Clarifications, and Amendments form for any changes.
Exceptions taken shall not affect the overall performance and quality of equipment, materials and/or services required by the City. The Purchasing Manager or designated agent shall make the final decision regarding the acceptability of equipment, materials and/or services with exceptions.
2.1.1 ACCEPTANCE/REJECTION OF IRREGULAR BIDS:
A contract shall be awarded to the bidder whose bid most closely satisfies the needs of the City and is deemed the most advantageous to the City. The City reserves the right to reject any or all bids or to waive any informalities or minor irregularities in a bid.
2.1.2 COMPLETE BID DOCUMENT:
The following forms constitute the makeup of a complete bid document:
• Bid Acknowledgement (Signature Form)
• Pricing Schedule (Signature Form)
• Exceptions, Clarifications, Amendments (if applicable) • References
• Financial Interest Disclosure (Signature Form)
• Support of Local Vendors (if applicable)
• Company History Statement
• Addenda Acknowledgement Page (if applicable)
• Warranty Statements
• Requirements
• Experience
Failure to furnish any of these documents may result in disqualification. #7..
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28 2.1.3 BID PRESENTATION:
Bid submittals should be presented in the order as listed in Section 2.1.2 Complete Bid Document.
2.2 COMPLIANCE:
Bidders are required to sign the “Pricing Schedule, Financial Interest Disclosure, and Bid Acknowledgement Form” of this bid document, thereby acknowledging they are in full compliance with all requirements of Bid No. 2122-34, and any addendum to such bid. Failure to comply may result in disqualification.
The bidder guarantees that the offered equipment, material or services meet all safety requirements applicable in accordance with Cal-OSHA regulations and any other rule or regulation required by the City of Modesto.
All permits and licenses necessary for the prosecution of the scope of work shall be secured and paid for by the Contractor, except those secured by the City and so noted.
2.3 NON-COMPLIANCE:
If you cannot comply with a specification requirement, note on the Exception, Clarifications, and Amendments page of the specification paragraph, your exception, and your recommendation. The Purchasing Manager will evaluate your recommendation. If after evaluation it is determined that the bidder is not in compliance with the specification, the bid may be rejected.
2.4 PRICING FORMAT:
All labor, equipment, fuel, licenses, permits and insurance necessary to perform the required services shall be included in bid pricing.
Unless otherwise stated, the bidder agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
The City of Modesto shall not pay mileage charges or travel time from the Contractor’s place of business to the job site, or from site to site, or for the Contractor’s travel time to pickup materials.
2.5 PRICING SCHEDULE:
Bidders shall use the pricing schedule provided in this document to present bid pricing. No other form or format shall be accepted. Bid must be submitted on the Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, Amendments” section on page 12.
2.6 AWARD OF BID:
Agreements may be awarded to more than one company in order to provide for backup, or in case the “primary” contractor is unable to meet the City’s needs.
The City reserves the right to decline to award an agreement if it is determined that the proposed pricing is not competitively priced based on similar agreements with public agencies within the State of California.
The City reserves the right to select that bid, which best suits the City’s needs. Regardless of City staff’s recommendation, the City Council reserves the right to award an agreement to the bidder that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.
2.7 INSPECTION AND ACCEPTANCE:
Whenever the product or service provided by the Contractor has been delivered to the Modesto, California, delivery point, the designated agent shall make the final inspection and acceptance. #7..
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29 If upon initial inspection the product or service is found to be defective in its construction or deficient in any of the requirements of this specification, the Contractor shall remedy or remove said product in an acceptable manner at the Contractor's expense. No compensation shall be allowed for such correction of product, labor, or transportation of product.
2.8 SUPPORT OF LOCAL VENDORS:
Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 8-3.203 and 8-3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest bid or quote submitted by a local business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the local bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within five (5) business days after notification by City Purchasing staff, provided that said local bidder is deemed to be a responsible bidder as determined by the Purchasing Manager. To qualify as a local bidder, the bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.
2.9 TERM OF AGREEMENT:
The term of the agreement shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of the City, for a total of up to five (5) years.
A. Pricing shall remain firm for the first two (2) years of any agreement, which may be awarded pursuant to this RFB.
B. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City.
The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration:
Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/ , California data.
C. Price increases (other than fuel) for subsequent agreement years, three (3), four (4) and five (5), shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one (1) agreement year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, sixty (60) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.
2.10 TERMINATION OF SERVICES:
The City reserves the right to discontinue services with the provider upon failure to meet contractual expectations and/or obligations, as recommended by the site supervisor or his/her agent. Cancellation of services shall be determined by the collaborative efforts of the Purchasing Manager, or designee, and using department after reviewing the incident(s) of failure to perform.
The City reserves the right to review the service providers’ performance at any time with or without the knowledge or consent of the provider.
The City may terminate the agreement at any time with or without cause. #7..
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30 2.11 QUANTITIES:
No minimum or maximum is guaranteed or implied.
2.12 FUNDING:
All annual extensions are based upon continuous funding for that purpose by the City Council. Failure to fund any annual extension shall result in an immediate termination of the agreement without redress.
2.13 OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:
If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and modified by mutual agreement between all parties may be extended to other government or publicly funded agencies. It shall be understood that all terms and conditions as specified herein shall apply.
2.14 NON-DISCRIMINATION:
A. During the performance of this contract, Contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), or sexual orientation. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. Contractor and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
B. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
C. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.
D. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the City upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or City shall require to ascertain compliance with this clause.
2.15 NON-DISCRIMINATION OF THE HANDICAPPED:
CERTIFICATION OF BIDDER REGARDING NON-DISCRIMINATION OF THE HANDICAPPED By executing this agreement, the bidder hereby certifies that he/she is in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the agreement and any extensions thereof.
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31 2.16 DRUG FREE WORKPLACE:
Bidder/Contractor certifies that he/she is in compliance with Sections 8350 - 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act. Every person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.
2.17 INDEMNITY:
The Contractor shall hold the city, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgements or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of Contractor, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this bid. Contractor’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this bid for Contractor to procure and maintain a policy of insurance. In the indemnity clause contained herein Contractor agrees to defend, indemnify and hold city harmless from the negligence of its employees, among other risks. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third-party suits, arising out of or relation to the operation of city owned vehicles by Contractor’s employees is apportioned to Contractor in accordance with the provisions contained in indemnity.
2.18 ASSIGNMENT OF RIGHTS:
CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the purchase of goods, services, or materials pursuant to this contract or any subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY tender’s final payment to CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).
2.19 CITY PROCESS/PROCEDURE APPROVALS:
CITY approval of any process or procedure shall not relieve the bidder of his/her responsibility to furnish the required items and service meeting all specifications contained herein.
2.20 BIDDER/SELLER REPRESENTATION:
The bidder/seller represents that:
A. He/She has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant purchase order and supporting data, and that he/she has, from the information contained in such documents, specifications, and data, fully acquainted him/her with all conditions relevant to the work.
B. He/She has made all reasonable investigations essential to a full understanding of the difficulties, which may be encountered in performing the work.
C. He/She will complete the work for the compensation stated above.
D. He/She assumes full and complete responsibility for all conditions relevant to the work and all risks in connection therewith.
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32 E. In addition, thereto, the bidder/seller represents that he/she is fully qualified to do the work in accordance with the terms of any Purchase Order or agreement issued within the time specified in it.
2.21 FAILURE TO PERFORM SATISFACTORY:
It is agreed and understood that if the CONTRACTOR fails to perform the work as specified herein, CITY's representative may (1) consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors, (2) have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or (3) recommend termination of contract between said CONTRACTOR and the City of Modesto. Those discrepancies and deficiencies in the work that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the work not corrected or completed.
2.22 CONTRACTOR'S RESPONSIBILITY FOR DAMAGES:
If CONTRACTOR damages any property belonging to the CITY or private property by the Contractor or his employees or agents, the Contractor will be required to make repairs immediately. The CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or require CONTRACTOR to repair the damage to the satisfaction of the CITY at CONTRACTOR's expense.
2.23 LABOR FORCE AND SUPERVISION:
CONTRACTOR shall provide sufficient labor at all times to carry out the project properly and shall ensure that fully experienced competent licensed workers who are skilled in the type of work required are employed.
CONTRACTOR shall ensure that supervision is provided at all times while any work under this contract is being performed. If, in the judgment of the CITY, any person is incompetent or disorderly, CONTRACTOR shall promptly remove such person from the work for the duration of the agreement.
2.24 PROTEST AND APPEAL PROCEDURES:
Potential offerors, bidders, contractors, and sub-contractors wishing to protest or appeal a procurement or contracting decision by the City of Modesto must follow the procedures provided by the section. Protests or appeals which are not submitted in accordance with these procedures will not be reviewed.
DEFINITIONS
For the purposes of this procedure: "Days" means working days in which City Hall is open for business, excluding holidays and weekends.
"Filing Date" or "Submission Date" means the date of receipt by the City Clerk’s office of the City of Modesto. "Interested Party" means an actual or prospective bidder or offeror, or any contractor or subcontractor identified by name in any bid or proposal.
"Bid" includes the term "offer" or "proposal" as used in the context of formal, informal, or negotiated procurements.
"Announced Decision" includes the term “Notice of Intent to Award Letter”. Once the City has issued an Announced Decision, the date noted will begin the time that an Interested Party may lodge a protest .
Procurements valued at $50,000 or less normally will not have an Announced Decision.
A. PROTEST PROCEDURES
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33 1. Any interested party may lodge a written protest to an Announced Decision with the City of Modesto's Purchasing Manager no later than ten (10) days after the Announced Decision.
2. The protest shall be delivered or sent by registered mail and postmarked by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses.
3. The protest shall be accompanied by a certified or cashier's check in the amount of $300.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS) or in such other sum as the City may establish, made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review.
4. The protest filed with the Purchasing Manager shall:
a. Include the name, address, and business telephone number of the protestor; b. Identify the project under protest by name, Request for Bid (RFB)/Request for Proposal (RFP) number, and bid/RFP date;
c. Contain a concise statement of the grounds for protest; d. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
All protests shall either be delivered to:
City Clerk’s Office
Attn: Purchasing Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Purchasing Manager
PO Box 642
Modesto CA 95353
B. PROTEST REVIEW (ANNOUNCED DECISION)
1. Protest to Purchasing Manager
Upon receipt of a complete and timely protest, the Purchasing Manager shall review all the submitted materials and shall create and retain a written record of the review. The Purchasing Manager shall respond at least generally to each material issue raised in the protest not later than ten (10) days after receipt of the protest. Notice of the Purchasing Manager's decision may be given by letter mailed through U.S. Postal Service.
2. Appeal to Deputy City Manager
The Purchasing Manager's decision may be appealed in writing to the City of Modesto's Deputy City Manager(s) no later than ten (10) days after the date of the Purchasing Manager’s Decision.
The scope of the appeal shall be limited by the issues raised in the initial protest to the Purchasing Manager. The Deputy City Manager shall not be permitted to review any newly raised issues. The Deputy City Manager shall review the appeal, accompanying supporting documents, if any, and the written record of the protest review by the Purchasing Manager. #7..
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34 A written record of the Deputy City Manager's review shall be created and maintained. The Deputy City Manager shall give notice of his or her decision to the protestor within ten (10) days after receipt of appeal.
All protest appeals shall either be delivered to:
City Clerk’s Office
Attn: Deputy City Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Deputy City Manager
PO Box 642
Modesto CA 95353
3. Appeal to City Council
Any protestor seeking to appeal to the decision of the Deputy City Manager may appeal in writing to the City Council by filing with the City Clerk a written notice of such appeal not later than fifteen (15) business days after the date of the Deputy City Manager's decision.
The City Clerk will calendar the protest for Council hearing and give notice of the time and place of the hearing as provided in Modesto Municipal Code Sections 1-4.01 through 1-4.05.
The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing, or provide other direction to staff. In such cases, staff cannot reverse a City Council decision.
All protests shall either be delivered to:
City Clerk’s Office
Attn: City Council
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: City Council
PO Box 642
Modesto CA 95353
C. PROTESTS OF PROCUREMENTS EXCEEDING $250,000.00
Interested parties protesting procurements exceeding $250,000.00 shall comply with the procedures contained herein, except that in lieu of appeal to the Deputy City Manager, a protestor may request that the protest be heard and decided at an administrative hearing.
A written request for administrative hearing shall be accompanied by a certified or cashier's check in the amount of $1,500.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS; Refer to Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14) payable to the City of Modesto, and shall be received by the Purchasing #7..
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35 Manager not later than fifteen (15) days after dispatch of the Purchasing Manager's decision. The request for hearing shall include the specific grounds of the appeal.
The City of Modesto shall select and engage an impartial and qualified person to act as hearing officer in the pending protest. The protestor shall have the right to twice reject the selected hearing officer, provided that the City is notified of such rejection within three (3) days of notice to protestor of the name of the hearing officer.
The protest shall be heard not later than twenty (20) days after receipt of protestor's request for hearing and the selection of a hearing officer. Protests not heard in a timely manner shall be deemed withdrawn, unless the City and the protestor mutually agree otherwise in writing. The protestor’s failure to accept a hearing officer after the third attempt by City staff to identify an impartial hearing officer shall be deemed a withdrawal of the protest.
The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses.
The decision of the hearing officer shall be deemed as the final decision of the City, and no other appeal to City Staff or body shall be permitted.
D. PROCUREMENTS OBTAINED WITH FEDERAL FUNDS
1. If the protested procurement involves federal funds, e.g., from the Federal Transit Administration (FTA) of the United States, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven (7) business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. Appeals to the Federal Transit Administration (FTA) shall comply with FTA Circular 4220.1E and the amendments and supplements thereto. Additional information regarding protesting procurements obtained with Federal Funds can be found in the Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14.
2. The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing before Council on the procurement at hand. In such cases, no internal appeal is possible since staff may in no case reverse a City Council decision. In such an event, a disappointed transit bidder or a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the Federal Transit Administration. #7..
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36 2.25 PAYMENT:
• Paper Payment Method:
All invoices shall be paid in full within thirty (30) days after completion and acceptance of the vehicles by the City, and receipt of a properly prepared invoice in duplicate, subject to cash discounts allowed and stated in this bid document.
• Electronic Payment Method:
The City of Modesto provides an E-pay Program which involves payment of invoices by a secure Visa account number assigned to the supplier after award of bid or contract. Notification of payments and required invoice information are issued to the supplier’s designed Accounts Receivable contact by email remittance advice at time of payment.
During the bid evaluation process preference may be shown to bidders that agree to accept E-pay for payment of invoices. Please indicate on the Pricing Schedule whether or not your company will accept the City’s E-pay Program.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
2.26 SAMPLE ANNUAL AGREEMENT:
Please review the Sample Annual Agreement. This Agreement may be modified and subject to change. #7..
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37 SAMPLE ANNUAL AGREEMENT
This Agreement, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2022, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Contractor, hereinafter called CONTRACTOR, W I T N E S E T H:
WHEREAS, the Modesto City Council adopted Resolution No. 2022-_____ authorizing the award of bid and agreement for the furnishing of PPE CLEANING, INSPECTION AND REPAIR SERVICES to Contractor, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the furnishing of PPE CLEANING, INSPECTION AND REPAIR SERVICES as described in RFB 2122-34, attached hereto as Exhibit “C” and made a part hereof, and
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. SCOPE OF WORK.
a. CONTRACTOR shall furnish PPE CLEANING, INSPECTION AND REPAIR SERVICES insofar as such scope of services are specified in Exhibit “B”, and in strict accordance with the conditions of the complete agreement.
b. CONTRACTOR shall do and perform the work contemplated hereby in a good and workmanlike manner under the direction of and to the satisfaction of the City Representative. c. CONTRACTOR shall furnish said services at the following contracted rates, for an estimated annual amount of $ XX, XXX and a not to exceed amount of $ XX, XXX over five (5) years:
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38 AGREEMENT PRICING
Item Description Unit Unit Price
Inspection
Outer shell material Each $
Moisture barrier Each $
Thermal liner Each $
Structure helmets Each $
Structure boots Pair $
Structure gloves Pair $
Structure flash hoods Each $
Laundering/Cleaning
Structure Coat Each $
Structure Pant Each $
Wild land Coat Each $
EMS ensemble Each $
Structure helmets Each $
Structure boots Pair $
Structure gloves Pair $
Structure flash hoods Each $
Additional Services
Alterations
Item Description Unit Unit Price
Increase hem length Each $
Decrease hem length Each $
Increase sleeve length Each $
Decrease sleeve length Each $
Increase waist size Each $
Decrease waist size Each $
Increase inseam length Each $
Decrease inseam length Each $
Extension Panel w/ outer shell material,
moisture barrier and thermal liner Each $
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39 Additional Services
Installation/Removal/Repair
Item Description Unit Unit Price
Remove letter patch Each $
Mask pouch (sewn on) Each $
Mic tab Each $
Flashlight holder w/ Mic Tab combination Each $
Hanging D ring Each $
Thumb loop Each $
hanging ring (2” diameter) Each $
Steam channel knee Each $
Sleeve cuff Each $
Pant cuff Each $
Small patch Each $
Medium patch Each $
Large patch Each $
Bar tack Each $
Rivets Each $
Snaps Each $
Zipper closures Chest Each $
Zipper closures Fly Each $
Hook and loop closures Chest Each $
Hook and loop closures Fly Each $
Hook and loop pockets Each $
Trim sleeve Each $
Trim chest Each $
Trim hemline Each $
Trim radio pocket Each $
Trim mask pouch Each $
Liner patch – moisture barrier Each $
Liner patch – thermal liner Each $
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40 Additional Services
Manufacture
Item Description Unit Unit Price
Letter Patch w/ Heat seal letters Each $
Mask pouch (sewn on) - 4” x 9” x 15” Each $
Semi-expansion pocket - 2” x 9” x 8” (Coat) Each $
Expansion Cargo, full below - 2” x 10” x
10” (Pant) Each $
Radio pocket w/ Mic Tab combination w/
double notch closure flap - 2” x 3.5” x 7” Each $
Mic Tab Each $
Flashlight holder w/ Mic Tab combination Each $
NOMEX® hand and wrist guard w/ Thumb
loop Each $
Hanging D ring Each $
Standard Knee of specified turnout (Globe®
GXtreme) Each $
Steam channel knee Each $
Nomex embroidery Each $
2. CITY REPRESENTATIVE:
Department Contact:
Purchasing Contact: Carol Wattle, Buyer (209 577-5406
The City Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effected only by written change to the agreement, issued by the City of Modesto, Purchasing Division.
3. CONTRACTOR CONTACT:
Contractor Contact: NAME, TITLE, PHONE, EMAIL
4. TERM OF AGREEMENT:
The term of the agreement shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of CITY, for a total of up to five (5) years.
Year 1: XXXX through XXXX
Year 2: XXXX through XXXX
Year 3: XXXX through XXXX
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41 Year 4: XXXX through XXXX
Year 5: XXXX through XXXX
Pricing as set forth in Section 1.c. above shall remain firm for the first two (2) years of the agreement.
Pricing will remain firm for the first two (2) years of the agreement. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City.
The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration: Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/ , California data.
Price increases (other than fuel) for subsequent agreement years three (3) through five (5) shall not exceed the Consumer Price Index (CPI) in any one (1) agreement year and shall be negotiated through the Purchasing Division. Request for price increases shall be submitted by Contractor in writing, sixty (60) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.
5. LIABILITY INSURANCE:
CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by Risk Management of the CITY. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
a) General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate #7..
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42 limit shall be twice the required occurrence limit. The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent CONTRACTOR’s and sub-contractors; products and completed operations as applicable.
b) Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
c) Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000.
If at any time any of said policies shall be unsatisfactory to CITY, as to form or substance, or if a company issuing such policy shall be unsatisfactory to CITY, CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Manager of CITY for approval and submit a certificate thereof as herein above provided. Upon failure of CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this agreement, at the election of CITY, may be forthwith declared suspended, or terminated. Failure of CONTRACTOR to obtain and/or maintain any required insurance shall not relieve CONTRACTOR from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of CONTRACTOR concerning indemnification. CITY, and its officials, agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers’ Compensation, Professional Liability and Financial Institution’s Fidelity. The Workers’ Compensation insurer shall agree to waive all rights of subrogation against CITY, its officials, agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for CITY. CONTRACTOR’s insurance policy(es) shall include a provision that the coverage is primary as respects CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable #7..
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43 Best’s rating of A:VII or with approval of the Risk Manager of CITY. The CONTRACTOR must deliver certificates evidencing existence of the insurance to the City prior to the time agreement is signed.
CONTRACTOR agrees to provide CITY with a separate endorsement evidencing proof of City’s additional insured status required herein (both general and automobile liability) as well as a separate endorsement for the Workers’ Compensation insurer’s waiver of all subrogation rights as stated above.
Every endorsement shall identify the policy number.
CONTRACTOR shall provide CITY with separate an endorsement evidencing proof of the CITY’s additional insured status as to the general liability insurance policy. In addition, CONTRACTOR shall provide CITY with a Workers Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.
For any claims related to this project, the CONTRACTOR’S insurance coverage shall be primary insurance as respects the Entity, its officers, officials, agents, employees, and volunteers. Any insurance or selfinsurance maintained by the Entity, its officers, agents, officials, employees, or volunteers shall be excess of the CONTRACTOR’S insurance and shall not contribute with it.
CONTRACTOR further agrees that the amount of insurance required may from time to time be adjusted by CITY’s Risk Manager and CONTRACTOR agrees to file a new insurance certificate with the CITY via PINS evidencing the new amounts after a thirty (30) day written notice from CITY’s Risk Manager.
6. INDEMNITY:
The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, #7..
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44 officials, officers, employees, or volunteers relating to or during the performance of its obligations under this agreement.
CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this agreement for CONTRACTOR to procure and maintain a policy of insurance.
7. ARBITRATION:
Any dispute or claim arising or related to this agreement, its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively, (except as approved below) resolved by final binding arbitration before the American Arbitration Association (AAA), utilizing its Commercial Arbitration Rules. One Arbitrator shall be selected using AAA procedures. The Arbitrator shall use all reasonable efforts to minimize discovery and to complete the arbitration proceedings as expeditiously as possible. The Arbitrator shall render a written decision within thirty (30) calendar days of the hearing. The Arbitrator will not award attorney’s fees, or punitive, incidental, consequential, treble or other multiple or exemplary damages, and the parties hereby agree to waive and not seek such damages. Either party may seek judicial relief to compel the other party to comply with the provisions of this Section, or injunctive or other equitable relief to protect its intellectual property rights, provided (unless prohibited by applicable law) that the remainder of the dispute or claim is submitted to arbitration. The arbitration shall be held in Modesto California; both parties give their irrevocable consent to jurisdiction of courts of or in the State of California, as well as processes of the AAA in California. Awards shall be final, binding and non-appealable (except on the minimal grounds required under the Federal Arbitration Act or other applicable law). All awards may be filed with one or more courts, state, federal or foreign having jurisdiction over the party against whom such award is rendered or its property, as a basis of judgment and of the issuance of execution for its collection.
8. GOVERNING LAW:
This Agreement shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.
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45 9. COMMENCEMENT AND COMPLETION OF THE WORK:
The work contemplated herein shall be commenced after the contract administrator receives and has on file:
Proofs of insurance (approved by Risk Management); and
Executed Agreement and all exhibits thereto.
10. TERMINATION OF SERVICES:
Termination by City for Default of Contractor
Should Contractor default in the performance of this agreement or materially breach any of its provisions, at its option, City may terminate this agreement by giving written notification to Contractor. The termination date shall be the effective date of the notice. For the purposes of this section, material breach of this agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Contractor, dishonesty or theft.
Termination by City for Convenience
The City may also terminate the Contractor's performance under the agreement, either in whole or in part, at its own discretion, or when conditions encountered during the work make it impossible or impracticable to proceed, or when the Cityis prevented from proceeding with the agreement by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the work for any reason.
The City shall provide no less than ten (10) calendar day’s written notice of its intent to terminate the agreement for convenience, and shall endeavor to provide the Contractor with consultation with the City prior to termination.
Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the Contractor shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, sub-contractors and agents are notified of such #7..
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46 termination and act as specified in the notice of termination; b. Terminate all orders and sub-contractors except as necessary to complete any portion of the work that is not terminated;
c. If directed in writing by the City to do so, assign all right, title and interest in subcontracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such sub-contractors but in no event shall recovery by any Contractor or sub-contractor include lost profits for portions of the work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates,summaries and such other information and material as mayhave been accumulated by the Contractor in performing the work whether completed or in process;
e. Settle outstanding liabilities and claims, subject to the approval of City; f. Complete performance of such part of the work as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the work and/or property related to the work; h. If City so requests, and at City's cost, Contractor shall provide sufficient oral or written status reports to make City reasonably aware of the status of Contractor's work on the project.
i. The Contractor understands and agrees that City may, in City's sole discretion, refuse to pay Contractor for that portion of Contractor's services which were performed by Contractor on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date. #7..
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47 City will pay Contractor an amount based on the percentage of satisfactory work completed in accordance with the notice of termination. The final payment to the Contractor after termination for convenience shall be limited to amounts due and owing under the agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the work such as subcontractor agreements or contracts for materials; b. The agreement price allocable to the portion of the work properly performed or goods supplied to the work site by the Contractor as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the Contractor.
Authorization to Terminate Agreement
Termination of the agreement may be invoked by the City Manager, or his/her designee, subject to the right of the Contractor to appeal the City Manager, or his/her designee’s, decision to the City Council.
The Contractor shall appeal by notifying the City Clerk in writing within ten (10) calendar days of receipt of written notification from City of termination of the agreement. In the event that termination of this agreement is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.
11. COMPLIANCE WITH ALL LAWS:
CONTRACTOR hereby agrees that CONTRACTOR and its sub-contractors, if any, in the performance of the work described, designated and shown upon the plans herein referred to, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted. #7..
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48 12. AGREEMENT DOCUMENTS:
The complete agreement between the parties hereto consists of this agreement and the following documents which are incorporated herein by this reference:
a. Resolution No. 2022-_______;
b. CONTRACTOR submittal;
c. RFB No. 2122-34
d. Insurance Certificates,
These documents include important legal requirements, procedures and restrictions and should be reviewed by CONTRACTOR. They are available for review during normal business hours in the Department of Finance, Purchasing Division). All documents specified above are intended to operate so that any work called for in any one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents.
13. NOTICES:
Any notice, payment or instrument required or permitted by this agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
CONTRACTOR: __________________
__________________
__________________
__________________
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
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49 14. SIGNATOR(IES) FOR CONTRACTOR:
The undersigned signator (ies) for CONTRACTOR warrant(s) and represent(s) that he/she/they is/are legally competent to execute the agreement and has/have full authority to execute this agreement.
15. ASSIGNMENT:
Neither this agreement nor any portion thereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.
16. WAIVER:
The waiver by any party to this agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
17. HEADINGS NOT CONTROLLING:
Headings used in the agreement are for reference purposes only and shall not be considered in construing this Agreement.
18. MISCELLANEOUS:
Time is of the essence in every provision of this agreement.
19. ENTIRE AGREEMENT:
This agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this agreement which vary from CONTRACTOR’s proposal are controlling and are deemed accepted by CONTRACTOR by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and communications relative to this agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this agreement. No future waiver or exception to any of the terms, conditions, and provisions of this agreement shall be considered valid unless specifically agreed to in writing by all the parties. #7..
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50 20. PARTIAL INVALIDITY:
If any provision in this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested by its City Clerk under authority of Resolution No. 2022-_______, adopted by the Council of the City of Modesto on the _____________ day of ______________, 2022 and _____________________has caused this Agreement to be duly executed.
CITY OF MODESTO, CONTRACTOR
A municipal corporation
By:__________________________ By:_________________________________ JOSEPH P. LOPEZ, City Manager (Signature)
By:_________________________________
(Name & Title)
ATTEST: Date:_______________________________
By:______________________ By:_________________________________ DANA SANCHEZ, Interim City Clerk (Signature)
By:_________________________________
(SEAL) (Name & Title)
Date:_______________________________
APPROVED AS TO FORM:
By:_________________________________
JOSE M. SANCHEZ, City Attorney
By:_____________________________
CHRISTINA D. ALGER,
Director of Human Resources (Risk)
Signature Requirements
Corporation:
1.Signature of two (2) officers
or
2.Signature of one (1) officer plus the
corporate seal.
Partnership: Signature of one partner
Sole Proprietorship: Signature of proprietor
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ITEM/DESCRIPTION
ESTIMATED
ANNUAL QTY
UNIT OF
ISSUE
INSPECTION
Outer shell material 300 Each $9.00 $2,700.00
Moisture barrier 300 Each $6.00 $1,800.00
Thermal Liner 300 Each $6.00 $1,800.00
Structure helmets 300 Each $5.50 $1,650.00
Structure boots 300 Pair $10.00 $3,000.00
Structure gloves 300 Pair $1.50 $450.00
Structure flash hoods 300 Each $1.50 $450.00
LAUNDERING/CLEANING
Structure Coat 300 Each $17.00 $5,100.00
Structure Pant 300 Each $16.00 $4,800.00
Wild land Coat 300 Each $8.00 $2,400.00
Wild land Pant 300 Each $8.00 $2,400.00
EMS ensemble 300 Each $19.00 $5,700.00
Structure helmets 300 Each $13.50 $4,050.00
Structure boots 300 Pair $24.00 $7,200.00
Structure flash hoods 300 Each $2.00 $600.00
Structure gloves 300 Pair $4.00 $1,200.00
TOTAL ANNUAL COST: $45,300.00
ADDITIONAL OPTIONS
ALTERATIONS
Increase hem length 1 Each $150.00 $150.00
Decrease hem length 1 Each $125.00 $125.00
Increase sleeve length 1 Each $125.00 $125.00
Decrease sleeve length 1 Each $115.00 $115.00
Increase waist size 1 Each $125.00 $125.00
Decrease waist size 1 Each $115.00 $115.00
Increase inseam length 1 Each $125.00 $125.00
Decrease inseam length 1 Each $115.00 $115.00
Extension Panel w/outer shell material, moisture barrier and thermal liner 1 Each $75.00 $75.00
INSTALLATION/REMOVAL/REPAIR
Remove letter patch 1 Each $5.00 $5.00
Mask pouch (sewn on) 1 Each $45.00 $45.00
Mic tab 1 Each $11.00 $11.00
Flashlight holder w/ Mic Tab combonation 1 Each $21.00 $21.00 Hanging D ring 1 Each $17.00 $17.00
Thumb loop 1 Each $5.00 $5.00
Hanging ring (2" diameter) 1 Each $20.00 $20.00
Steam channel knee 1 Each $48.00 $48.00
Sleeve cuff 1 Each $30.00 $30.00
Pant cuff 1 Each $40.00 $40.00
Small patch 1 Each $10.00 $10.00
Medium patch 1 Each $15.00 $15.00
Large patch 1 Each $25.00 $25.00
Bar tack 1 Each $5.00 $5.00
Rivets 1 Each $2.00 $2.00
Snaps 1 Each $3.50 $3.50
Zipper closures Chest 1 Each $31.00 $31.00
Zipper closures Fly 1 Each $12.00 $12.00
Hook and loop closures Chest 1 Each $37.00 $37.00
Hook and loop closures Fly 1 Each $21.00 $21.00
Hop and loop pockets 1 Each $22.00 $22.00
Trim Sleeve 1 Each $25.00 $25.00
Trim chest 1 Each $60.00 $60.00
Trim hemline 1 Each $60.00 $60.00
Trim radio pocket 1 Each $12.50 $12.50
Trim mask pouch 1 Each $20.00 $20.00
Liner patch - moisture barrier 1 Each $15.00 $15.00
Liner patch - thermal liner 1 Each $15.00 $15.00
MANUFACTURE
Letter Patch w/ Heat seal letters 1 Each $22.00 $22.00
Mask pouch (sewn on) - 4" x 9" x 15" 1 Each $45.00 $45.00 Semi-expansion pocket - 2" x 9" x 8" (Coat) 1 Each $45.00 $45.00 Expansion Cargo, full below - 2" x 10" x 10" (Pant) 1 Each $45.00 $45.00 Radio pocket w/ Mic Tab combination w/ double notch
closure flap - 2" x 3.5" x 7" 1 Each $55.00 $55.00
Mic tab 1 Each $11.00 $11.00
Flashlight holder w/ Mic Tab combonation 1 Each $16.00 $16.00 NOMEX®hand and wrist guard w/ Thumb loop 1 Each $15.75 $15.75 Hanging D ring 1 Each $15.00 $15.00
Standard Knee of specified turnout (Globe® Gxtreme) 1 Each $45.00 $45.00 Steam channel knee 1 Each $40.00 $40.00
Nomex embroidery 1 Each $7.50 $7.50
Low Bidder - Scotts PPE Recon @ $45,300.00
***FOR COSTING PURPOSES ONLY***
Lodi, CA
Scotts PPE Recon Inc.
CITY OF MODESTO
PO BOX 642 MODESTO CA 95353
RFB NO. 2122-34 PPE CLEANING, INSPECTION AND REPAIR SERVICES 3/8/2022
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
June 14, 2022
Date: May 23, 2022
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Award of Agreement for Workers’ Compensation Claims Management CONTACT: Joe Rodriguez, Risk Manager, [email protected], 209-577-5446 DESCRIPTION:
Consider approving the Award of Proposal and Agreement for Workers’ Compensation Claims Management Services to Athens Administrators, Inc., Concord, California, for a two-year Agreement with three, one-year extension options, for an estimated annual amount of $480,430 and a total amount not to exceed $2,511,820 over five years. (Funding Source: Workers’ Compensation Fund)
STRATEGIC PLAN ELEMENT:
This item supports the 2020-2025 Strategic Plan’s Governance and Service Delivery Goals & Strategies – Achieve Financial Sustainability by applying private and public sector best practice financial strategies relative to workers’ compensation claims.
BACKGROUND:
Since 1979, the City of Modesto has been permissibly self-insured for workers’ compensation claim liabilities under a self-insurance certificate issued by the State of California’s Office of Self-Insured Plans. The City’s Workers’ Compensation Fund operates on a budget of around $7,000,000 annually, covering the cost of claims administration, medical, legal, and indemnity payments, as well as excess insurance. The City purchases excess insurance for workers’ compensation liabilities through Public Risk Innovation, Solutions, & Management (PRISM) with a self-insured retention of $750,000. All claim costs below that threshold are the responsibility of the City.
In 2009, the City conducted a request for proposals (RFP) to determine whether it would be more effective to continue self-administering claims, which was not the norm for public entities, or to switch to the more common third-party administrator (TPA) model. Following the RFP, in 2010, the Risk Management Division made the recommendation to switch to a TPA model due to the high caseloads of the City’s internal claims examiners, lack of compliance with State reporting requirements, and the potential cost savings of more effective claims management. #8..
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The City has been administered by a TPA since then and has seen significant improvements in key program metrics including the overall number of open claims. The City’s Workers’ Compensation Program is currently administered by Innovative Claims Solutions, Inc., of San Ramon, California.
On July 12, 2016, by Resolution No. 2016-296, Council approved the award of proposal and contract for the furnishing of workers’ compensation TPA services to Innovative Claims Solutions for a term of two years, with three optional one-year extension options. On August 10, 2021, by Resolution No. 2021-321, Council approved an extension of that agreement through September 1, 2022 to allow staff time to complete a Request for Proposals (RFP) to renew or replace the existing agreement without a significant service disruption.
The current Agreement No 105138 is set to expire August 31, 2022.
DISCUSSION:
With the current agreement approaching the end of its term, the City Manager authorized the Purchasing Manager to issue a formal Request for Proposals (RFP) for the furnishing of workers’ compensation claims management services.
On November 16, 2021, the Purchasing Division issued RFP 2021-44, Workers’ Compensation Claims Management Program, on Planet Bids via the City’s website under two commodity codes1. Prospective proposers were notified online and via email of the bid opportunity. Twenty companies chose to download the RFP document.
On December 28, 2021, proposals were formally opened by the City Clerk and broadcast via Microsoft Teams Livestream2. Six companies chose to respond, none of which were local companies. All six (6) companies provided responsive and responsible proposals.
An evaluation committee comprised of three (3) City staff members evaluated and graded the proposals.
Based on being ranked highest in total evaluation criteria, the evaluation committee recommends the award of proposal and agreement for the furnishing of workers’ compensation claims management program, to Athens Administrators, Inc., Concord, CA.
Athens Administrators has been providing claims services to public entities in California for over 45 years, and their proposal and presentation demonstrated that they would be the best-suited company to administer the City’s workers’ compensation claims. As a mid-size California TPA, Athens applies their core values of Commitment to Service, Commitment to Results, Honesty and Integrity, and a Caring Family Culture to the day-to-day administration of the $2.5 billion in claims liabilities they handle for their clients. Their philosophy is building strong, long-term partnerships that provide the highest levels of claims administration services for their clients.
On the technical side, the City was looking for a TPA that would be able to maximize communication with injured workers to reinforce the sense that they are being taken care of and 1 95300 – Insurance and Insurance Services, (All Types), 95861 – Insurance and Risk Management Services. 2 Staff implemented a virtual bid opening in an effort to slow the spread of COVID-19. #8..
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Award of Agreement for Workers’ Compensation Claims Management
that their medical treatment matters. Athens demonstrated resources that would help the City achieve that, including a web portal and a mobile app for injured workers to view information and status of their claims. Athens also uses automated text message notifications as a way to reinforce, but not replace, person-to-person contact with injured workers.
Another important aspect of the TPA’s role in the claims process is managing third-party claims services including nurse case management, bill review, utilization review, and more.
Collectively, these services are known as managed care services. Athens features its own Managed Care Unit with in-house staff able to coordinate or directly provide those services.
Services that are currently outsourced, such as telephonic injury reporting, will be brought under the Athens Managed Care Unit, giving the City better oversight and control over the level of service provided. Because these services are in-house, they are also directly connected to Athens Claims Management Information System, which allows for near real-time updates to individual claim files. We estimate that the transition to Athens’ in-house managed care services could save the City up to $130,000 per year on claim payments.
The current job market for claims examiners in California is as tough as in any other industry.
TPAs across the state are struggling to recruit and retain examiners with the claims knowledge, skills, and abilities to meet the needs of their clients. Athens Administrators sets themselves apart in the field by investing in their employees’ welfare, making them a “Best Place to Work” in the San Francisco Bay Area 13 times since 2005. Athens’ claims examiners in turn take care of their clients, resulting in a 98% client retention rate over the last five years.
Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid. The award of proposal and contract for workers’ compensation claims management services to Athens Administrators, Inc., Anaheim, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Athens Administrators, Inc was the most responsive and responsible proposer.
FISCAL IMPACT:
Funds for these services are already budgeted in the Workers’ Compensation Fund for FY21/22. It is estimated that all costs of the agreement for the full term will be absorbed by the Workers’ Compensation Fund, specifically accounting string 5320-17320-53300. Expenses for these services for the last five years are provided below.
Year Amount Spent
FY16/17 $324,715.06
FY17/18 $553,280.46
FY18/19 $570,863.36
FY19/20 $583,560.34
FY20/21 $595,522.00
COMMITTEE RECOMMENDATION:
This agenda item was reviewed by Finance Committee on May 23, 2022 and was recommended for forwarding to the City Council for approval. #8..
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City Council, June 14, 2022
Award of Agreement for Workers’ Compensation Claims Management
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Award of Proposal and Agreement for Workers’ Compensation Claims Management Services to Athens Administrators, Inc., Concord, California, for a two-year Agreement with three, one-year extension options, for an estimated annual amount of $480,430 and a total amount not to exceed $2,511,820 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.
Approved by:
Christina Alger, Director of Human Resources
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Athens Administrators Inc., Agreement
3. RFP 2021-44 Workers Compensation Claims Management Services
4. Financial Interest Disclosure
5. Athens Bid Submittal
6. Scoring Abstract for RFP No. 2021-44
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3 MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE AWARD OF PROPOSAL AND
AGREEMENT FOR WORKERS’ COMPENSATION CLAIMS MANAGEMENT
SERVICES TO ATHENS ADMINISTRATORS, INC., CONCORD,
CALIFORNIA, FOR A TWO-YEAR AGREEMENT WITH THREE, ONE-YEAR
EXTENSION OPTIONS, FOR AN ESTIMATED ANNUAL AMOUNT OF
$480,430 AND A TOTAL AMOUNT NOT TO EXCEED $2,511,820 OVER FIVE YEARS; AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO
EXECUTE THE AGREEMENT
WHEREAS, since 1979, the City of Modesto has been permissibly self-insured for workers’ compensation claim liabilities under a self-insurance certificate issued by the State of California’s Office of Self-Insured Plans, and WHEREAS, the City purchases excess insurance for workers’ compensation liabilities through Public Risk Innovation, Solutions, & Management (PRISM) with a self-insured retention of $750,000, and
WHEREAS, on July 12, 2016, by Resolution No. 2016-296, Council approved the award of proposal and contract for the furnishing of workers’ compensation TPA services to Innovative Claims Solutions for a term of two years, with three optional one-year extension options. On August 10, 2021, by Resolution No. 2021-321, Council approved an extension of that agreement through September 1, 2022 to allow staff time to complete a Request for Proposals (RFP) to renew or replace the existing agreement without a significant service disruption, and
WHEREAS, with the current agreement approaching the end of its term, the City Manager authorized the Purchasing Manager to issue a formal Request for Proposals (RFP) for the furnishing of workers’ compensation claims management services, and #8..
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4 WHEREAS, on November 16, 2021, the Purchasing Division issued RFP 2021- 44, Workers’ Compensation Claims Management Program, on Planet Bids via the City’s website under two commodity codes1. Prospective proposers were notified online and via email of the bid opportunity. Twenty companies chose to download the RFP document, and
WHEREAS, on December 28, 2021, proposals were formally opened by the City Clerk and broadcast via Microsoft Teams Livestream2. Six companies chose to respond, none of which were local companies. All six (6) companies provided responsive and responsible proposals, and
WHEREAS, an evaluation committee comprised of three (3) City staff members evaluated and graded the proposals, and
WHEREAS, based on being ranked highest in total evaluation criteria, the evaluation committee recommends the award of proposal and agreement for the furnishing of workers’ compensation claims management program, to Athens Administrators, Inc., Concord, CA, and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to be formally bid. The award of proposal and contract for workers’ compensation claims management services to Athens Administrators, Inc., Anaheim, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Athens Administrators, Inc was the most responsive and responsible proposer. 1 95300 – Insurance and Insurance Services, (All Types), 95861 – Insurance and Risk Management Services.
2 Staff implemented a virtual bid opening in an effort to slow the spread of COVID-19. #8..
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5 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an agreement with Athens Administrators Inc. Concord, California, for a two-year Agreement with three, one-year extension options, for an estimated annual amount of $480,430 and a total amount not to exceed $2,511,820 over five years.
BE IT FURTHER RESOLVED, that the City Manager, or his designee, is authorized to execute the agreement, in a form approved by the City Attorney.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of June, 2022, by Councilmember ?, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: _____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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-1- City of Modesto
Workers’ Compensation Claims Management Program
STANDARD CONSULTANT SERVICES AGREEMENT NO. 223388
FOR WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
ATHENS ADMINISTRATORS, INC.
THIS AGREEMENT, made and entered into in the City of Modesto, State of California, this day of , 2022 (“Effective Date”), by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "City", and Athens Insurance Services Inc. (DBA Athens Administrators), a California S Corporation, hereinafter referred to as "Consultant."
This Agreement is made with regard to the following recitals:
A. The City has determined that a Workers’ Compensation Claims Management Program is needed to process claims for the City.
B. Consultant represents that it is qualified, willing and able to provide the services to prepare said document(s).
NOW, THEREFORE, in consideration of this agreement, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:
1. SCOPE OF SERVICES.
Consultant shall undertake and complete the preparation of the scope of work as set forth and described in the RFP 2021-44 documents attached hereto and referred to as Exhibit "A" or "project". The Consultant shall perform the services as described in Exhibit "A" in a manner compatible with the standards of its profession, and shall produce a fully complete project that is acceptable to City.
2. TERM OF AGREEMENT.
This agreement is effective for a term date of September 1, 2022 to August 31, 2024, with the option to extend on an annual basis for up to three (3) additional years and will continue in effect until City's acceptance of and payment for all services authorized by City #8..
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and performed by Consultant, unless terminated earlier in accordance with the provisions of the termination clause in this agreement.
3. COMPENSATION.
Consultant agrees to accept an estimated annual amount of $480,430 during each agreement term, and not to exceed a combined amount of two million five hundred eleven thousand eight hundred twenty and 00/100 DOLLARS ($2,511,820.00) as full remuneration for performing all services and furnishing all staffing and materials called for in Exhibit "A" and for performance by Consultant of all of its duties and obligations under this agreement excluding managed care services provided by Consultant.
The Compensation shall be paid pursuant in the manner and at the rates set forth below:
All work to be performed under this agreement shall be billed at the rates set forth in Exhibit “B” attached hereto, Consultant shall submit monthly invoices to City which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any out-of-pocket, reimbursable costs paid by Consultant in connection with work performed on this project.
4. OBLIGATIONS OF CONSULTANT.
Throughout the term of this agreement, Consultant shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business.
Consultant warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to provide the City with the services contemplated by this agreement. Consultant further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.
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5. PERFORMANCE BY KEY EMPLOYEE.
Consultant has represented to City that James Jenkins, President will be the person primarily responsible for the performance of the services referred to in this agreement.
City has entered into this agreement in reliance on that representation by Consultant.
6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.
Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the City, and may be used by City as it may require without any additional cost to City. No reports shall be used by the Consultant for purposes other than this agreement without the express prior written consent of City.
Title to Data
If, as a part of the agreement, Consultant is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the originals of all such data generated under this agreement will be delivered to City upon the completion or termination of services under the agreement.
All materials, documents, data or information obtained from the City data files or any City medium furnished to Consultant in the performance of this agreement will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Consultant after termination of this agreement without written consent of the City.
7. NEWS AND INFORMATION RELEASE.
Consultant agrees that it will not issue any news releases in connection with either the award of this agreement, or any subsequent amendment of or efforts under this #8..
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agreement, without first obtaining review and approval of said news releases from City through the City Manager.
8. INTEREST OF CONTRACTOR.
Consultant warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this agreement. Consultant warrants that, in performance of this agreement, Consultant shall not employ any person having any such interest. Consultant agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this agreement if so required at the option of City.
9. AMENDMENTS.
Both parties to this agreement understand that it may become desirable or necessary during the execution of this agreement, for City or Consultant to modify the scope of services provided for under this agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original agreement prior to the performance of the additional work.
Until a change order is so executed, City will not be responsible to pay any charges Consultant may incur in performing such additional services, and Consultant shall not be required to perform any such additional services.
10. INDEPENDENT CONTRACTOR.
All acts of Consultant, its agents, officers, and employees and all others acting on behalf of Consultant relating to the performance of this agreement, shall be performed as independent contractors and not as agents, officers, or employees of City. Consultant, by virtue of this agreement, has no authority to bind or incur any obligation on behalf of City.
Consultant has no authority or responsibility to exercise any rights or power vested in the City.
No agent, officer, or employee of the City is to be considered an employee of Consultant. It is #8..
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understood by both Consultant and City that this agreement shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture.
Consultant, its agents, officers and employees are and, at all times during the terms of this agreement, shall represent and conduct themselves as independent contractors and not as employees of City.
Consultant shall determine the method, details and means of performing the work and services to be provided by Consultant under this agreement. Consultant shall be responsible to City only for the requirements and results specified in this agreement, and, except as expressly provided in this agreement, shall not be subjected to City's control with respect to the physical action or activities of the Consultant in fulfillment of this agreement. Consultant has control over the manner and means of performing the services under this agreement. Consultant is permitted to provide services to others during the same period service is provided to City under this agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this agreement.
If in the performance of this agreement any third persons are employed by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the Consultant.
It is understood and agreed that as an independent contractor and not an employee of City neither the Consultant or Consultant's assigned personnel shall have any entitlement as a City employee, right to act on behalf of the City in any capacity whatsoever as an agent, or to bind the City to any obligation whatsoever. #8..
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It is further understood and agreed that Consultant must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Consultant's personnel.
As an independent contractor, Consultant hereby indemnifies and holds City harmless from any and all claims that may be made against City based upon any contention by any third-party that an employer-employee relationship exists by reason of this agreement.
11. ASSIGNMENT.
Neither this agreement nor any portion thereof shall be subcontracted or assigned without the express prior written consent of the City in each and every instance.
12. PATENT/COPYRIGHT MATERIALS.
Unless otherwise expressly provided in the agreement, Consultant shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this agreement. Consultant shall furnish a warranty of such right to use to City at the request of City.
13. NOTICES.
Any and all notices permitted or required to be given hereunder shall be deemed duly given and effective (a) upon actual delivery, if delivery is by hand; or (b) five (5) days after delivery into the United States mail if delivery is by postage paid registered or certified (return receipt requested) mail. Each such notice shall be sent to the parties at the address respectively indicated below or to any other address as the respective parties may designate from time to time.
FOR Consultant: Name: Athens Administrators, Inc.
Address: P.O. Box 696
Concord, CA 94522
Attention: James Jenkins, President
Phone: (925) 826-1100
Email: [email protected]
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Workers’ Compensation Claims Management Program
FOR CITY: Name: City of Modesto
Address: P.O. Box 642
Modesto, CA 95354
Attention: Christina Alger
Phone: (209)571-5126
Email: [email protected]
14. INSURANCE REQUIREMENTS.
The Consultant shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the City as may be required by the Risk Manager of the City. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the City via PINS Advantage Insurance Program, for all of the following stated insurance policies. (a) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent consultants and subconsultants; products and completed operations; and/or professional liability. (b) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
(c) Worker's Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000. (d) Professional Liability (Errors and Omissions) Insurance with a minimum limit of $1,000,000 per claim, $2,000,000 policy aggregate. If coverage is on a claim made basis it shall be maintained for at least three (3) years following completion of the work. #8..
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Workers’ Compensation Claims Management Program
If at any time any of said policies shall be unsatisfactory to the City, as to form or substance, or if a company issuing such policy shall be unsatisfactory to the City, the Consultant shall promptly obtain a new policy, submit the same to the Risk Management via PINS for approval and submit a certificate thereof as hereinabove provided. Upon failure of the Consultant to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the City, may be forthwith declared suspended or terminated.
Failure of the Consultant to obtain and/or maintain any required insurance shall not relieve the Consultant from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the Consultant concerning indemnification. The City, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation and Professional Liability. Consultant shall provide City with separate endorsements evidencing proof of the City’s additional insured status as to both the general liability and automobile liability insurance policies. The Workers' Compensation insurer shall agree to waive all rights of subrogation against the City, its agents, officers, employees, and volunteers for losses arising from work performed by Consultant for the City. In addition, Consultant shall provide City with a Workers Compensation subrogation waiver by way of a separate endorsement. The Consultant's insurance policy(es) shall include a provision that the coverage is primary as respects the City; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A: VII or with approval of the Risk Manager. The Consultant must deliver certificates evidencing existence of the insurance listed above to the City prior to the time the agreement is signed.
All endorsements referenced above must include the applicable policy number.
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15. TERMINATION OF AGREEMENT.
Termination by Either Party
Either party, within one-hundred eighty (180) day notice can terminate this agreement with prior written notice to the designated contacts listed in this .
Termination by City for Default of Consultant
Should Consultant default in the performance of this agreement or materially breach any of its provisions, at its option, City may terminate this agreement by giving written notification to Consultant. The termination date shall be the effective date of the notice.
For the purposes of this section, material breach of this agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Consultant, dishonesty or theft.
Termination by City for Convenience
The City may also terminate the Consultant's performance under the agreement, either in whole or in part, at its own discretion, or when conditions encountered during the work make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the agreement by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the work for any reason. The City shall provide no less than ten (10) calendar days written notice of its intent to terminate the agreement for convenience, and shall endeavor to provide the Consultant with consultation with the City prior to termination.
Termination by City for Lack of Budgeted Funds
The City may terminate this agreement effective July 1 of any given year upon the City's determination to not appropriate sufficient funds for this agreement for the ensuing fiscal year. In such event City shall give Consultant not less than 30 days written notice of termination.
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Termination by City for Change of Consultant's Tax Status If City determines that Consultant does not meet the requirements of federal and state tax laws for independent contractor status, City may terminate this agreement by giving written notice to Consultant. The termination date shall be the effective date of the notice.
Post-Termination Procedures
If this agreement is terminated pursuant to this Section, Consultant shall:
1. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, sub-consultants and agents are notified of such termination and act as specified in the notice of termination;
2. Terminate all orders and sub-consultants except as necessary to complete any portion of the work that is not terminated;
3. If directed in writing by the City to do so, assign all right, title and interest in sub-contracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any Consultant or sub-consultant include lost profits for portions of the work not completed or undertaken, including materials not delivered;
4. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the Consultant in performing the work whether completed or in process;
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5. Settle outstanding liabilities and claims, subject to the approval of City and Consultant;
6. Complete performance of such part of the work as has not been terminated;
7. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the work and/or property related to the work;
8. If City so requests, and at City's cost, Consultant shall provide sufficient oral or written status reports to make City reasonably aware of the status of Consultant's work on the project.
9. The Consultant understands and agrees that City may, in City's sole discretion, refuse to pay Consultant for that portion of Consultant's services which were performed by Consultant on the project prior to the termination date and which remain
unacceptable and/or not useful to City as of the termination date.
City will pay Consultant an amount based on the percentage of satisfactory work completed in accordance with the notice of termination that will be agreed to by the City and the Consultant. If the agreement is terminated pursuant to the subparagraph entitled Termination by City for Default of Consultant, Consultant understands and agrees that City may, in City's sole discretion, refuse to pay Consultant for that portion of Consultant's services which were performed by Consultant on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date. The final payment to the Consultant after termination for convenience shall be limited to amounts due and owing under the agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the #8..
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Workers’ Compensation Claims Management Program
termination of the work such as sub-consultant agreements or contracts for materials;
b. The agreement price allocable to the portion of the work properly performed or goods supplied to the work site by the Consultant as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the Consultant.
16. INDEMNITY.
The Consultant shall hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any act or omission of Consultant.
Consultant's obligation to defend, indemnify, and hold the City, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this agreement for Consultant to procure and maintain a policy of insurance.
17. DISPUTE RESOLUTION.
All claims, controversies, or disputes arising out of, or relating to the formation of this agreement, or the breach, termination execution, enforcement, interpretation, or validity of this agreement, including the determination of the scope or applicability of this agreement provision shall be determined by binding arbitration in Modesto, California by one arbitrator, except as otherwise specified in this agreement. The American Arbitration Association shall administer the arbitration under its Arbitration Rules then in effect, subject o the #8..
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Workers’ Compensation Claims Management Program
modifications of those rules contained in this paragraph. This agreement to arbitrate shall be specifically enforceable under the prevailing law of any court having jurisdiction, and the award rendered by the arbitrator may be entered in any court having jurisdiction. The appropriate venue for any arbitration or court proceeding relating to or arising out of this provision shall be in Stanislaus County, California.
This paragraph is not intended to and does not waive the claim filing requirements found in California Government Code section 900 et seq. In the event that a timely and legally sufficient, arbitrable claim is filed by Consultant with City, and the claim is rejected in whole or in part by City, this paragraph shall result in the conclusive, final, and binding resolution of all the issues presented in the claim by Consultant so long as any issues presented by the claim are arbitrable. Claims rejected by City or by operation of law, shall be submitted by Consultant to arbitration pursuant to the Arbitration Rules of the American Arbitration Association within ninety (90) days after mailing of the written rejection by City to Consultant.
Otherwise, the claim or claims shall be deemed waived in their entirety.
The “fast track” rules of the American Arbitration Association shall apply to any claim or counterclaim less than ONE HUNDRED FIFTY THOUSAND AND 00/100 ($150,000.00) DOLLARS. In arbitration not proceeding under the “fast track” rules, the arbitrator shall have the power to order that depositions be taken and other discovery be made.
Both City and Consultant shall have the right, upon written notice to take no more than three (3) depositions of the other as a matter of right in an arbitration proceeding under the “fast track” rules.
Whether or not City and Consultant may be engaged in interstate commerce, any controversy or dispute mentioned above shall be determined by, and the parties shall be bound by, the substantive law of the State of California, and not the Federal Arbitration Act at 9 USC Section 1 et seq.
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The arbitrator may grant any remedy or relief deemed by the arbitrator just and equitable under the circumstances, whether or not such relief could be awarded in a court of law. The arbitrator shall be empowered to award monetary sanctions against a party for failure of cooperation in the arbitration. The arbitrator shall, in written award, allocate all the costs of the arbitration, including the fees of the arbitrator and the reasonable attorney fees of the prevailing party, against the party who did not prevail. The prevailing party shall be the party in whose favor the majority of the central issues in the case are resolved.
Notwithstanding anything in this provision to the contrary, the arbitrator shall have no power to award punitive damages or other damages not measured by the party’s actual damages (excluding litigation costs and fees) against any party. This limitation of the arbitrator’s powers under this agreement shall not operate as an exclusion of the issue of punitive damages from this agreement to arbitrate sufficient to vest jurisdiction in a court with respect to that issue.
Consultant shall include in all subcontracts a specification whereby the subconsultant consents to being joined in an arbitration between City and Consultant involving the work of the subconsultant to be joined. Consultant’s failure to do so shall be a breach of this agreement.
The parties waive any rights provided by Title 9.2 of the California Code of Civil Procedure, Section 1293. The arbitrator’s award shall be deemed final, conclusive and binding to the fullest extent allowed by California law.
18. ENTIRE AGREEMENT.
This agreement and its exhibits contain the entire understanding between Consultant and City. Additional or new terms contained in this agreement which vary from Consultant's proposal are controlling and are deemed accepted by Consultant by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and #8..
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communications relative to this agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this agreement. No future waiver of or exception to any of the terms, conditions, and provisions of this agreement shall be considered valid unless specifically agreed to in writing by all the parties.
19. PARTIAL INVALIDITY.
If any provision in this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
20. WAIVER.
The waiver by any party to this agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
21. AUDIT.
The City's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Consultant's charges to City under this agreement.
Consultant agrees to retain reports, records, documents, and files related to charges under this agreement for a period of four (4) years following the date of final payment for Consultant services. City's representative shall have the right to reproduce any of the aforesaid documents.
22. GOVERNING LAW.
This agreement shall be governed according to the laws of the State of California.
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23. HEADINGS NOT CONTROLLING.
Headings used in the agreement are for reference purposes only and shall not be considered in construing this agreement.
24. COMPLIANCE WITH LAWS.
Consultant shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. Consultant shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.
25. CITY BUSINESS LICENSE.
Consultant shall have a City of Modesto business license.
IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this agreement in duplicate by its City Manager and attestation by its City Clerk under authority of Resolution No. 2022- adopted by the Council of the City of Modesto on the day of ,2022, and Athens Insurance Services, Inc. (DBA Athens Administrators), has caused this Agreement to be duly executed in duplicate as of the Effective Date.
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1 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
FOR
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
Non-Mandatory Pre-Proposal Conference
To be held on
Monday, November 30, 2021 at 9:00 A.M.
Location:
Microsoft Teams meeting
Join on your computer or mobile app
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Or call in (audio only)
+1 469-998-7409,48176356# United States, Dallas
Phone Conference ID: 481 763 56#
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PROPOSAL OPENING: December 28, 2021 at 11:00 A.M.
CITY OF MODESTO CONTACT: Carol Wattle, Buyer
E-MAIL ADDRESS: [email protected]
PHONE: (209) 577-5406
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2 CITY OF MODESTO
REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
TABLE OF CONTENTS
Page
. Notice to Proposers.............................................................................................................3 . City Contacts.......................................................................................................................4 . Calendar of Events..............................................................................................................4 . Offer and Acceptance..........................................................................................................4 . Covid-19 Response .............................................................................................................5 . Submittal Checklist ............................................................................................................6 FORMS
. Proposal Acknowledgement (Signature Form)................................................................7 . Pricing Schedule (Signature Form) ............................................................................ 8-10 . References................................................................................................................... 11-12 . Exceptions, Clarifications, Amendments (if applicable)..................................................13 . Financial Interest Disclosure (Signature Form) ....................................................... 14-16 . Company History Statement ............................................................................................17 . Minimum Qualifications ..................................................................................................17 . Addenda Acknowledgement page (if applicable) ...........................................................18 . Proposal Evaluation Criteria.............................................................................................19 . Acronym and Term Glossary............................................................................................20 . Specific Requirements......................................................................................................21 . Programs ...........................................................................................................................22 . Third-party Administrator Questionnaire................................................................... 23-26
TECHNICAL SPECIFICATIONS AND REQUIREMENTS
. Statement of Work ............................................................................................................27 . Background ................................................................................................................. 27-28 . Specific Requirements................................................................................................ 28-38 . Performance Based Contract Provision Requirements .............................................. 38-39 . Insurance Requirements.............................................................................................. 39-40 . Pre-Proposal Conference ..................................................................................................40
GENERAL TERMS AND CONDITIONS
. Proposal Submittal............................................................................................................41 . Complete Proposal Document..........................................................................................42 . Compliance / Non-Compliance ........................................................................................42 . Pricing Format...................................................................................................................42 . Pricing Schedule................................................................................................................42 . Award of Proposal ............................................................................................................43 . Evaluation Process............................................................................................................43 . Term of Agreement...........................................................................................................43 . Payment Terms .................................................................................................................50 . Exhibit A – Self Insured Annual Reports................................................................... 51-54 . Exhibit B – PRISM..................................................................................................... 55-61 . Exhibit C – EWC Reporting....................................................................................... 62-63 . Sample Standard Consultant Agreement.................................................................... 64-78 #8..
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3 NOTICE TO PROPOSERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California, will receive at the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 sealed proposals for the furnishing of Workers’ Compensation Claims Management Program for the City of Modesto.
Proposals shall be submitted on the proposal sheet provided and shall be downloaded from the City’s Purchasing website at http://www.modestogov.com/257/Contracting-Bid-Opportunities; such proposals shall include all necessary specifications. It is highly recommended all proposal documents be downloaded from the City’s website.
Each proposal shall be sealed and filed with the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 prior to Tuesday, December 28, 2021 at 11:00 A.M., at which time proposals will be opened, read and recorded. All proposals shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.
Proposals will be received only at the address shown above, and prior to the time indicated. Any proposal received at or after said time and/or date, or at a place other than the stated address cannot be considered and will be returned to the proposer unopened.
All proposals, whether delivered by an employee of the proposer, U.S. Postal Service, courier or package delivery service must be received and time stamped at the stated address prior to the time designated. The City Clerk’s time stamp shall be considered the official timepiece for the purpose of establishing the actual receipt of proposals. The City of Modesto assumes no responsibility for delay in the delivery of the proposal.
On the outside of both the proposal envelope and courier envelope, the proposer shall indicate the following:
NAME AND ADDRESS OF PROPOSER
SPECIFICATION NUMBER 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROPOSAL OPENING DATE: DECEMBER 28, 2021 AT 11:00 A.M.
MAIL TO: CITY CLERK COURIER TO: CITY CLERK
CITY OF MODESTO CITY OF MODESTO
P.O. BOX 642 1010 10TH STREET, SUITE 6600
MODESTO, CA 95353 MODESTO, CA 95354
The City reserves the right to reject any or all proposals or to waive any informalities or minor irregularities in a proposal.
No proposer may withdraw his/her proposal for a period of one-hundred twenty (120) days after the date set for the opening thereof.
Note: Deliver or mail proposals to the referenced address, only as indicated in the Notice to Proposers.
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4 CITY CONTACTS
All questions regarding these specifications, terms, and conditions shall be submitted in writing to Carol Wattle, Buyer, via email at: [email protected] All contacts during the proposal process shall be through the Purchasing Division. Attempts by the proposer to contact department representatives may result in disqualification of the proposer from the proposal process.
CALENDAR OF EVENTS
Event Date
Proposal Issued November 16, 2021
Non-Mandatory Pre-Proposer Conference November 30, 2021 Written Questions Due December 7, 2021
Addendum Issued (if required) December 14, 2021
Response Due PRIOR 11:00 A.M. on Tuesday, December 28, 2021 Proposal Award Date Approximately, June, 2022
It is the responsibility of each proposer to be familiar with all of the specifications, terms and conditions and the site condition (if applicable). The proposer agrees and acknowledges all RFP specifications, terms, and conditions and indicates the ability to perform by submission of a proposal.
By the submission of a proposal, the proposer certifies that if awarded an agreement they will make no claim against the City based upon ignorance of conditions or misunderstanding of the specifications.
OFFER AND ACCEPTANCE:
Seller represents his/her acceptance to provide products and/or services as follows: City’s offer to purchase products and/or services is expressly conditioned upon Seller’s assent to the terms and conditions set forth in the City’s agreement documents, specifications, supporting data, and these articles. Seller agrees that Seller’s Order Acknowledgement terms and conditions received prior to, during, or after order placement by City are hereby rejected. City agreements signed by the City’s Purchasing Manager or designated agent and issued to Seller constitutes written notification to Seller of City’s rejection of any and all of Seller Order Acknowledgements, counter offers and change to the City’s terms and conditions.
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5 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
COVID-19 RESPONSE
The City of Modesto is doing our part to slow the spread of COVID-19. The City of Modesto will be broadcasting bid openings electronically via Microsoft Teams at 11:00 a.m. PT on Tuesday, December 28, 2021. The City Clerk Record of Proposal document will be available on Planet Bids by the end of day, Tuesday, December 28, 2021. The public bid opening for RFP 2021-44 Workers’ Compensation Claims Management Services, will be available using the URL link, video system or via phone provided below. By submitting your proposal for the above-stated RFP you acknowledge, understand, and agree to this modified bid opening procedure.
URL - https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NTI0YzBiMDMtNDQ0Yi00YjNlLWIwZjYtYzg4ZDVjMDdkM2Mz%40thread.v2/0?co ntext=%7b%22Tid%22%3a%22125ccacf-fc61-463c-9976-
189f876ff90b%22%2c%22Oid%22%3a%229715c333-c997-4dd7-8984-12cd4deaa705%22%7d Join Microsoft Teams Meeting
+1 469-998-7409 United States, Dallas
Conference ID: 961 656 049#
Should you have any questions regarding this, please do not hesitate to contact Carol Wattle, by email at [email protected] or telephone at (209)577-5406. #8..
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6 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
SUBMITTAL CHECKLIST
PROPOSAL SUBMITTAL CHECKLIST
The proposer shall provide a complete proposal in a sealed envelope before 11:00 A.M. on the proposal opening date. Failure to provide all the required documents may cause the proposal to be considered non-responsive.
COMPLETE PROPOSAL Page No.
. Proposal Acknowledgement (Signature Form)................................................................7 . Pricing Schedule (Signature Form) .............................................................................. 7-9 . References................................................................................................................... 10-11 . Exceptions, Clarifications, Amendments (if applicable)..................................................12 . Financial Interest Disclosure Form (Signature Form).............................................. 13-15 . Company History Statement ............................................................................................16 . Minimum Qualifications ..................................................................................................16 . Addenda Acknowledgement Page (if applicable) ...........................................................17 . Specific Requirements .....................................................................................................20 . Programs ..........................................................................................................................21 . Third-party Questionnaire ......................................................................................... 21-25 #8..
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7 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROPOSAL ACKNOWLEDGEMENT
The City is soliciting proposals from qualified proposers to furnish its requirements per the specifications, terms and conditions contained in the above referenced proposal number. This Proposal Acknowledgement must be completed, signed by a responsible officer or employee, dated and submitted with the proposal response.
Obligations assumed by such signature must be fulfilled.
1. Preparation of Proposals: (a) All prices and notations must be printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the proposal. (b) Quote price as specified in proposal. No alterations or changes of any kind shall be permitted to the Proposal Form. Responses that do not comply shall be subject to rejection in total.
2. Failure to Submit Proposal: If you are not submitting a proposal but want to remain on the mailing list and receive future proposals, complete, sign and return this Proposal Acknowledgement and state the reason you are not pricing.
3. Taxes and Freight Charges: (a) Unless otherwise required and specified in the RFP, the prices quoted herein do not include Sales, Use or other taxes. (b) No charge for delivery, drayage, express, parcel post packing, cartage, insurance, license fees, permits, costs of bonds, or for any other purpose, except taxes legally payable by City, will be paid by the City unless expressly included and itemized in the proposal. (c) Amount paid for transportation of property to the City is exempt from Federal Transportation Tax. An exemption certificate is not required where the shipping paper shows the consignee as one (1) of the Agencies; as such papers may be accepted by the carrier as proof of the exempt character of the shipment. (d) Articles sold to the Agencies are exempt from certain Federal excise taxes. The Agencies will furnish an exemption certificate.
4. Award: (a) Unless otherwise specified by the proposer or the RFP gives notice of an all-or-none award, the City may accept any item or group of items of any proposal. (b) Proposals are subject to acceptance at any time within thirty (30) days of opening, unless otherwise specified in the RFP. (c) A valid, written purchase order mailed, or otherwise furnished, to the successful proposer within the time for acceptance specified results in a binding agreement without further action by either party. The agreement shall be interpreted, construed and given effect in all respects according to the laws of the State of California.
5. Patent Indemnity: Proposers who do business with the City shall hold the City, its officers, agents and employees, harmless from liability of any nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or un-patented invention, article or appliance furnished or used in connection with the contract or purchase order.
6. Samples: Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the proposer’s expense.
7. Rights and Remedies of Agencies for Default: (a) In the event any item furnished by the proposer in the performance of the agreement or purchase order should fail to conform to the specifications therefore or to the sample submitted by the proposer with its proposal, the City may reject the same, and it shall thereupon become the duty of the proposer to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the proposer fail, neglect or refuse so to do the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items and to deduct from any moneys due or that may there after come due to vendor the difference between the prices named in the agreement or purchase order and the actual cost thereof to the City.
In the event that the proposer fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. (b) Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the proposer. (c) The rights and remedies of the Agencies provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the agreement.
8. Discounts: (a) Terms of less than ten (10) days for cash discount will be considered as net. (b) In connection with any discount offered, time will be computed from date of complete, satisfactory delivery of the supplies, equipment or services specified in the RFP, or from date correct invoices are received by the City at the billing address specified, if the latter date is later than the date of delivery. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing the City’s check.
9. California Government Code Section 4552: In submitting a proposal to a public purchasing body, the proposer offers and agrees that if the proposal is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the proposer for sale to the purchasing body pursuant to the proposal. Such assignment shall be made and become effective at the time the purchasing body tender’s final payment to the proposer.
10. No Guarantee or Warranty: The City makes no guarantee or warranty as to the condition, completeness or safety of any material or equipment that may be traded in on this order.
11. Two “Inked” Signed Original Proposal Document Required: Failure to furnish at least one “inked” signed original proposal document may result in disqualification.
THE undersigned acknowledges receipt of the referenced RFP and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the proposer indicated below, in accordance with the specifications, terms and conditions of this RFP and Proposal Acknowledgement, for the pricing indicated on the Pricing Schedule.
Firm:
Address:
City/State/Zip:
Signature/Title/Date:
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8 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PRICING SCHEDULE
Proposers shall provide an annual flat fee cost for all services described in this RFP document. Proposals must be submitted on the Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, Amendments” section on page 13.
FLAT FEE FOR ANNUAL SERVICES
Description Fee
Transition Cost (First year only) $__________________________________/YR Flat Annual Fee for Services – (First year,) $__________________________________/YR Flat Annual Fee for Services – (Second year) $__________________________________/YR Flat Annual Fee for Services – (Third year,) $__________________________________/YR Flat Annual Fee for Services – (Fourth year,) $__________________________________/YR Flat Annual Fee for Services – (Fifth year,) $__________________________________/YR TOTAL (Five-Year Program) $_____________________________________ Nurse Care Management Services
For occupational illness/injuries, managed care costs are paid from the involved claim files, and are not additionally billable to the client. The City of Modesto may, at its option, request managed care services to be provided for non-occupational illness/injuries. Please list the per hour costs for the listed services for both occupational and non-occupational cases.
Service Type Occupational Non-Occupational
Early Intervention / Telephone Case Management $________________/Hour $________________/Hour On-site Case Management (medical and vocational) $________________/Hour $________________/Hour Catastrophic Case Management $________________/Hour $________________/Hour Telephonic Case Management $________________/Hour $________________/Hour Company Name (Proposer):
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9 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PRICING SCHEDULE
Bill Review Services
All Bills, with the exception of pharmaceutical billings, are subject to Bill Review. The City of Modesto requests your firm to provide pricing based on a “hybrid” billing schedule. All reviewed bills in which charges in excess of the State Official Medical Fee Schedule were reduced to the State-authorized level shall be billed at a flat fee. All reviewed bills in which charges were reduced to below the state-authorized fee may also be subject to a share of the savings based on a percentage of the difference between the State-authorized fee and the adjusted amount paid below the state-authorized fee. Below, please provide your per-bill review rate (note that no charge can be imposed on bills that required no adjustment) and your proposed savings percentage.
Per-bill Cost $___________________________________/Each Percent of Savings Below Official Medical Fee Schedule ____________________________________% Utilization Review Services
List Service Type Occupational Non-Occupational
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
$______________/Hour $______________/Hour
Company Name (Proposer):
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10 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PRICING SCHEDULE
Does proposer accept the City’s Epay Payment Program? Please check one: Yes ____ No ____ Information regarding the program is provided in Section 2.25 Payment.
City Business/Delivery License No. __________ Expiration Date: __________ THE undersigned acknowledges receipt of the referenced RFP and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the proposer indicated below, in accordance with the specifications, terms and conditions of this RFP and Proposal Acknowledgement, for the pricing indicated on the Pricing Schedule.
Company Name (Proposer):
By (Person Submitting Proposal): (Print)
By (Person Submitting Proposal): (Signature)
Title of Person Submitting Proposal:
Business Address
(City/State/Zip):
E-Mail Address:
Telephone #:
Fax #:
Date:
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11 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
REFERENCES
All proposers must provide a list of five (5) current or former clients in the area provided below, identifying prior experience with the same type of services requested by the City under Scope of Work. References shall have similar volume and requirements to those outlined in these specifications, terms and conditions.
Proposer’s failing to provide references shall be deemed unacceptable.
The City may contact some or all of the references provided in order to determine the Proposers’ performance record on services similar to that described in this proposal. The City reserves the right to contact references other than those provided in the response and to use the information gained from them in the award process.
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
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12 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
REFERENCES-CONTINUED
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name (Proposer):
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13 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
EXCEPTIONS, CLARIFICATIONS, AMENDMENTS
Exceptions, Clarifications, Amendments
List requests for proposal clarifications and exceptions below, if any, sign and submit with your proposal response.
Item No. Reference To: Description
Page No. Paragraph No.
Company Name (Proposer):
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14 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
FINANCIAL INTEREST DISCLOSURE
REQUIRED DISCLOSURE BEGINNING THE COUNCIL MEETING
OF JANUARY 7, 2003
The ordinance requiring financial interest disclosure by all parties having a direct or indirect interest of $2,000 or more (except for certain publicly traded companies) will be effective at the Council meeting of January 7, 2003. This means that any Council action on a contract, agreement or development right must be accompanied by a FINANCIAL INTEREST DISCLOSURE FORM listing by name all parties that have a material financial interest in the agreement, contract or development right.
PLEASE NOTE, any Council action that requires a FINANCIAL INTEREST DISCLOSURE cannot be considered by the City Council until the required reporting is made. That means that Agenda Items without the DISCLOSURE will be removed from the Council Agenda.
FinDisclosure12-19
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15 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
FINANCIAL INTEREST DISCLOSURE
All persons included within the meaning of either of the following tests have a material financial interest in an agreement, or application for development rights, submitted for approval or disapproval by the City Council, and shall be identified by the applicant, by name.
Tests of Materiality:
1. Whether it is foreseeable to a reasonable person that the value of their interest in property available for use by an applicant, or their interest in the applicant itself, may increase or decrease by an amount greater than $2,000.00 as a direct or indirect result of Council action on the applicant’s agreement or application for development rights.
2. Whether it is foreseeable to a reasonable person that the person’s gross income from the applicant may increase or decrease by a sum greater than $2,000.00 as a direct or indirect result of Council action on the agreement or application for development rights.
It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the agreement or application or development rights is true, correct and complete.
The applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
By signing this document, I agree to the information contained within.
COMPANY NAME: ____________________________________________________ __________________________________
APPLICANT’S NAME (SIGNATURE):
__________________________________
APPLICANT’S NAME/TITLE (PRINT):
__________________________________
Applicable Names (if any, use page 16): DATE:
(See attached list)
Questions concerning the application of either test to particular facts should be resolved in advance of Council action by agreement with the department head recommending approval of its agreement/application.
DIRECTOR
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16 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
FINANCIAL INTEREST DISCLOSURE
COMPANY NAME: __________________________________________ NAMES
Signature / Print:
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17 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
COMPANY HISTORY STATEMENT
Your company shall have been in business for a minimum of three (3) continuous years (immediately prior to the time of the RFP submittal date) providing the types of services requested in this RFP.
The company history statement shall be prepared on company letterhead and provided with the proposal submittal.
MINIMUM QUALIFICATIONS
Minimum Qualifications are mandatory for proposal consideration, and at a minimum shall include the following:
Financial Stability (Provided in a sealed separate envelope):
Proposers shall submit a copy of their company’s most recent professionally prepared Financial Statements (Income Statement and Balance Sheet). These statements, if un-audited, shall be accompanied by a cover letter that states the name and title of the preparer, the basis of the financial statement presentation (cash or accrual) and whether these statements have been prepared in accordance with Generally Accepted Accounting Principles for the most recent fiscal year end of the proposer. Audited financial statements shall be submitted in their entirety, including the auditor’s opinion and notes to the financial statements.
A separate document shall be provided and signed under penalty of perjury by the proposer’s financial officer or owner that explains the proposer’s inability to provide statements for a fiscal period that ended at least eight (8) months before the required date of submittal, if such inability exists.
One complete set of Financial Statements shall be submitted in a sealed separate envelope filed with the (original proposal document), marked with the following:
FINANCIAL STATEMENTS
NAME AND ADDRESS OF PROPOSER
SPECIFICATION NO. RFP 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROPOSAL OPENING DATE: TUESDAY, DECEMBER 28, 2021 AT 11:00 A.M. #8..
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18 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
ADDENDA ACKNOWLEDGEMENT
The proposer shall check the RFP listing on the City’s Planet Bid website, periodically, and in any event, no later than the day prior to the proposal opening to obtain any addenda information. The changes identified in the addenda modify this request for proposal and specifications. The addenda now become a part of this request for proposal and specifications. Signing the Proposal on the signature portion thereof, the proposer is acknowledging that the proposer has confirmed that he or she has received all addenda issued for this request for proposal and specifications, and has included costs for such in the proposal submitted. Failure to list and acknowledge all addenda numbers may cause the proposal to be considered non-responsive. Do not attach any of the addenda to this sheet nor include them with the proposal.
This document is only required to be returned should addenda have been issued.
The Proposal is submitted with respect to the changes to the request for proposal and specifications included in addenda numbers:
LIST ALL ADDENDA NUMBERS: ____________________________________________________ Company Name (Proposer):
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19 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROPOSAL EVALUATION CRITERIA
Most of the material needed to present a comprehensive proposal can be placed into one of the sections referenced below under Evaluation Criteria. Responses should be complete and detailed. However, if relevant information needs to be presented to further support the proposers’ case other appropriate sections may be added in the proposers’ submittal.
EVALUATION
All proposals submitted will be reviewed by a City of Modesto evaluation committee. At the completion of the proposal review, finalists may be asked to provide an in-depth presentation in Modesto. Whether or not a presentation shall be performed is wholly within the discretion of the evaluation committee. The committee will select the proposal which best fulfills the City’s requirements and represents the best value to the City of Modesto as determined by the evaluation committee. No single factor will determine the final award decision.
Overall responsiveness to the Request for Proposal is an important factor in the evaluation process.
EVALUATION CRITERIA
1. REFERENCES (MINIMUM OF 5):
2. SPECIFIC REQUIREMENTS:
3. PROGRAMS:
4. THIRD-PARTY ADMINISTRATOR QUESTIONNAIRE:
5. COST:
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20 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
ACRONYM AND TERM GLOSSARY
ACOEM American College of Occupational and Environmental Medicine ADA Americans with Disabilities Act of 1990
ADA-FEHA Americans with Disabilities Act of 1990-California Fair Employment and Housing Act AME Agreed Medical Examiner
AOE/COE Arising Out of Employment/Course of Employment
Cal/OSHA California Occupational Safety & Health Administration Cal/PERS California Public Employee’s Retirement System PRISM California State Association of Counties Excess Insurance Authority DIR Department of Industrial Relations, State of California DOR Declaration of Readiness
EAMS Electronic Adjudication Management System
EDD Employment Development Department, State of California EFJA Essential Functions Job Analysis
E.L. Employer’s Liability
EPA United States Environmental Protection Agency
F.O.B Shall mean without charge for delivery to destination and placing on board a carrier at a specified point (Free on Board)
FY Fiscal Year (July 1 through June 30)
L.C. or LC Refers to California Labor Code
LC 4610 Refers to California Labor Code section 4610
MCMA Modesto Confidential and Management Association
MMI Maximum Medical Improvement
MPN Medical Provider Network
MSC Mandatory Settlement Conference
ODG Official Disability Guidelines
OMFS Official Medical Fee Schedule
OSHA Refers to California Occupational Safety and Health Administrations P & S Permanent and Stationary
PD Permanent Disability
PPN Preferred Provider Networks
PPO Preferred Provider Organization
QIW Qualified Injured Worker
QME Qualified Medical Examiner
QRR Qualified Rehabilitation Representative
RFP Request for Proposal
RSI Repetitive Stress Injuries
RTW Return-to-Work
SB899 Refers to Senate Bill 899, the most recent overhaul of the State of California workers’ compensation system passed on 4/19/04
SIP Self-Insurance Plans, California Department of Industrial Relations SIR Self-insured Retention
TPA Third-party Administrator
WC Workers’ Compensation
WCAB Workers’ Compensation Appeals Board
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21 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
SPECIFIC REQUIREMENTS
Proposer shall provide detailed information on the following:
Contractor shall be licensed with the California Department of Industrial Relations, Self-Insurance Plans (SIP).
A copy of the license shall be provided to the City as part of the proposal response.
Proposer shall list their physical office location address, City and State, administering the City’s claims. If the successful proposer has multiple adjusting locations the City reserves the right to choose which office will adjust the City’s claims.
Because of the need to be fully aware of and compliant with the terms of SB899, Contractor shall have a minimum of five (5) years’ experience working with public agencies with public safety employees of combined size equal to the City. The experience shall be within the past eight (8) years. Please provide detailed history. #8..
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22 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROGRAMS
Proposer shall provide a detailed overview of their firm’s processes on the following programs:
A. Claims Management
B. General Program Administration
C. General Claims Administration
D. Accounting Control
E. Medical Administration
F. Litigation Management
G. Investigation Management
H. Auditing
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23 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
THIRD-PARTY ADMINISTRATOR QUESTIONNAIRE
This section of the RFP provides a series of questions which will give the City an overview of the claim’s administrator for the type and extent of services required.
Proposer shall repeat the question in their response and provide the answer immediately following.
A. About the Firm
1. Give a brief history of your firm since inception, including:
o A list of principals
o An organizational chart
o Size and location(s) of your firm, including numbers of employees at each location o A description of the types of services provided by your firm and the number of years provided, and
o The contact person(s) for this RFP process
2. Discuss any major changes in your firm’s structure or ownership over the past three (3) years.
Discuss anticipated changes in your firm’s structure or ownership in the next three (3) years.
3. Discuss your firm’s affiliation, if any, with a parent firm.
4. Discuss your firm’s affiliation with:
o Medical service providers
o Utilization review services
o Medical bill review services
5. Describe your firm’s mission and goals as related to corporate growth, customer service, quality assurance/quality control management and affirmative action standards.
6. Describe the number and types of clients your firm currently provides TPA services to, both corporately and locally. Please list all public agency clients with 1,000 or more employees and the number of years served. Provide contact name and phone number for each.
7. Provide information regarding any contracts which have been terminated within the past thirty-six (36) months with an explanation of the termination. Provide contact name and phone number for each.
8. Provide a history of PRISM audit results for the past five (5) years, if applicable, including an explanation of any negative findings.
9. Provide a history of State audit results for the past five (5) years including an explanation for any penalties that may have been assessed.
10. Submit a detailed implementation plan, including the expected timeline for each of the following:
a) Staff recruitment and training.
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24 b) Data conversion of the City’s existing electronic claim files. c) Transfer of existing hard copy files from current TPA. d) Distribution of all required notifications (vendors, claimants, WCAB, etc.). e) Providing printed forms.
f) Training and coordination of IT systems and operational procedures with City staff B. About Your Firm’s Management Information System(s) (MIS)
1. Describe the type of data processing hardware and software proposed for this contract. Discuss your firm’s experience in using the system, whether the system is owned and operated in-house or through an agreement with another provider, the general capabilities of this system, compatibility with other existing systems for continuity of data and transferring of historical data, and any projected upgrades or changes during the term of this contract.
2. List and describe the management information reports generated by your firm’s data processing system. Identify those reports which are standard and included in the service fee. Identify those reports which are optional and the cost for generating these reports. Include in each description the interval at which the reports are generated. Provide a one-page example of each of five (5) reports listed and explain how each will assist the City of Modesto in managing its program.
3. Describe the unique features of the management information reports provided by your firm which are not typically provided by other TPAs.
4. Discuss the methods used by your firm to segregate and track OSHA-recordable injuries, first aid injuries, medical-only injuries, time loss injuries, denials, aggravations and any other claim type designations.
5. Describe how your system differentiates Workers’ Compensation injuries and days lost from OSHA-recordable injuries and days lost. Provide an example of the OSHA 300 Log report provided by your firm. Discuss how this report is generated and reconciled against Workers’ Compensation data.
6. Describe your firm’s ability to provide the City of Modesto with a minimum of three (3) MIS user connections on existing personal computers allowing for full database access and standard/ad hoc report writing/generating.
7. Discuss the MIS technical support services provided by your firm. Include the location of MIS staff and how many clients are serviced from that location.
C. Claims Administration Services
1. Discuss the allocation of personnel your firm will use to staff a dedicated claims unit to adjust City of Modesto’s claims. Describe the title, function and minimum ongoing training/experience requirements for each position.
2. Please indicate which of the personnel you plan to use to staff this claims unit have attained certification to administer self-insured claims (SIP) Certification and when all staff members will be certified.
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25 2. Discuss your firm’s standard ratio for case closures as related to new claims. Explain how you utilize closure performance comparisons and the frequency that these comparisons are calculated. Explain other criteria used to determine the appropriateness of closing claims.
4. Please submit your firm’s Claims and Litigation Management Guidelines.
5. Explain how the claims adjuster will coordinate legal activities with counsel once a claim is assigned to defense counsel.
6. Discuss your interaction with clients in reporting on account management or claims related issues.
How frequently do you expect supervisors and/or adjusters to initiate contact with City of Modesto? What is your protocol regarding returning telephone and/or E-Mail messages?
7. Identify the firm’s criteria for designating a claim as a first aid, medical only or indemnity case.
8. Explain your firm’s current policies regarding the assignment of claims to each claims supervisor, claims examiner and claims assistant. Include a description of the number and types of claims assigned to each position.
9. Describe the criteria for re-indexing existing claims.
10. Describe the firm’s policies and practices in establishing and maintaining reserves for indemnity, medical care, expenses and future medical benefits.
11. Describe the firm’s policies and procedures to ensure timely review and appropriate payment of benefits and bills.
12. Describe how the firm will assist and facilitate Return-to-Work activity at the earliest possible opportunity.
13. Describe how the firm communicates temporary and permanent work restrictions in a timely manner.
14. Discuss your firm’s policy on payments of fines and penalties resulting from errors internal to your firm. Describe how your firm accounts for such payments and provide the total dollar amount of fines and penalties paid to State or Federal regulators in each of the preceding five fiscal years.
D. Summary
1. Describe in detail your firm’s data processing and staff experience with converting claim and financial records data from former TPAs to your proposed system. Provide the client’s company name, type of system converted from, contact name and phone number.
2. Describe your firm’s plan for provision of each of the following service elements. Include documentation of your firm’s philosophy, protocol and readiness to provide the following services:
• Utilization Review
• Preferred Provider Organization Network*
• Bill Review Services
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26 *Include the number of members in the PPO to be used and the number of specialties represented. In addition, provide the PPO member’s contract provision language which specifies the percentage below the California Official Medical Fee Schedule to which the PPO member has agreed.
3. List and describe the features that distinguish your firm from other third-party administrators. #8..
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27 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
TECHNICAL SPECIFICATIONS AND REQUIREMENTS
1.1 STATEMENT OF WORK:
A. Intent:
The City of Modesto is seeking a qualified third-party administrator (TPA) to perform claims administration services as required by law and in accordance with City policy for its self-insured workers’ compensation program. The City’s program is currently administered by Innovative Claim Solutions.
The successful proposer shall work with ancillary service providers, and cooperate with them at no additional cost to the City.
B. Scope:
There are approximately fifteen-hundred (1500) full-time or part-time employees covered in the City workers’ compensation program. Of these approximately three-hundred forty (340) are safety employees in the Police and Fire Departments. Public Safety personnel are afforded salary continuation benefits under Labor Code §4850.
All full-time employees are members of California Public Employees’ Retirement System (CalPERS).
The City’s total payroll for the 2020/21 fiscal year is approximately $104,389,085. Currently the City maintains a self-insured retention amount (SIR) of $750,000 per incident and is a member of the Public Risk Innovation, Solutions, and Management (PRISM) insurance pool, a Joint Powers Authority which provides excess workers’ compensation coverage.
The TPA shall provide claims administration services for all existing claims.
As of Dec. 31, 2020, the City currently has two-hundred ninety-eight (298) open claims, which includes:
one-hundred thirty-one (131) Future Medical, one-hundred forty (140) Indemnity and twenty-seven (27) Medical Only. The City’s Self Insurance Plan Reports for the last four (4) years are included in (Exhibit A).
1.2 BACKGROUND:
The TPA shall coordinate all aspects of the workers’ compensation program in conjunction with the City’s Risk Management Division. This includes reporting of injuries; employee contact; providing lost time and salary information; training managers, supervisors, and employees on workers’ compensation procedures; and the administration of return to work programs (RTW), claim audits, payment of benefits, litigation management, and medical management.
The Contractor shall work with and fully cooperate with any ancillary vendor(s) selected by the City. In addition, the Contractor shall not charge the City or the ancillary vendor(s) for setting up and maintaining this relationship including, but not limited to, implementation fees, electronic data interface, or scanning fees.
The City currently uses Company Nurse for employees to report injuries telephonically and electronically submit claim information to the (TPA) to generate employer first reports of injury (5020). #8..
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28 Currently, the City does not have a medical provider network (MPN) nor a pharmacy program but may be interested in exploring both further.
1.3 SPECIFIC REQUIREMENTS:
The Contractor shall be licensed with the California Department of Industrial Relations, Self-Insurance Plans (SIP). A copy of the license shall be provided to the City as part of the proposal response.
The Contractor shall administer the City’s claims from an office located within a reasonable distance of City. If the successful proposer has multiple adjusting locations the City reserves the right to choose which office will adjust the City’s claims.
Because of the need to be fully aware of and compliant with the terms of SB899, Contractor shall have a minimum of five (5) years’ experience working with public agencies with public safety employees of combined size equal to the City. The experience shall be within the past eight (8) years.
The Contractor shall perform all services required to supervise and administer a self-insured workers’ compensation program for the City and act as the City’s representative in matters relating to the City’s obligations under the workers’ compensation laws of the State of California.
In addition to the above, the Contractor shall perform claims administration services in accordance with City specific policies and industry standards. The claims administrative services required shall include, but are not limited to, the following:
A. City Program Requirements:
1. Subcontractor Approvals: The City reserves the right to require reassignment of subcontractors that are not performing in a manner satisfactory to the City.
2. Americans with Disabilities Act-California Fair Employment and Housing Act (ADA-FEHA) Program: Contractor shall provide appropriate disability information to the City to assist the City with departmental and Citywide (ADA-FEHA) accommodation efforts. Disability information including specific permanent restrictions and the City Essential Functions Job Analysis (EFJA) completed by Workers’ Compensation (WC) doctors shall be provided to contacts designated by the City.
3. Return-To-Work Program: Contractor shall obtain disability information and temporary restrictions from the primary treating physician and forward them to the City within 24 hours of the provider appointment. Documentation providing for temporary modified duty, including restrictions and duration shall be entered into the claims management system.
4. Cal/PERS Disability Retirement Services: Contractor shall cooperate with all inquiries made in relation to disability retirement applications for City employees. Such cooperation shall include, but is not limited to, responses to verbal and written inquiries by the City, and provision of documents and case notes as requested. Cooperation may include direct contact, and/or the exchange of information and documents between Risk Management and the assigned worker’s compensation defense attorney. Contractor shall respond to written inquiries regarding the existence and status of WC claims and provide copies of medical files within one (1) week of receipt of a request from Risk Management.
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29 5. Essential Functions Job Analysis (EFJA): Contractor shall obtain from Risk Management, the (EFJA) for the injured employee’s generic or specific job class and shall be responsible for sending the (EFJA) to the Qualified Medical Examiner (QME), Agreed Medical Examiner (AME), and/or the primary treating physician prior to the Permanent and Stationary (P&S) determination. Contractor shall obtain the completed form from the evaluator with the medicallegal reports. If one is not available, Contractor shall refer the request for an (EFJA) to an approved vendor within one (1) week.
6. Contractor shall provide Risk Management P&S Reports within two (2) days of Contractor’s receipt.
7. Contractor shall provide Risk Management Work Status Reports within twenty-four (24) hours of receipt.
8. Penalty Reimbursement: Contractor shall be responsible for all costs and penalties incurred as a result of its errors or delays in the administration of claims. This includes, but is not limited to, penalties as a result of failure to determine compensability or to pay claims timely, self-imposed penalties, and penalties imposed by the Workers’ Compensation Appeals Board (WCAB) or other regulatory agencies. Contractor shall reimburse the City, for any such penalties incurred, on a quarterly basis.
9. Payments through the City’s Trust Account: The City requires that certain payments made through the trust account be pre-approved by the Risk Manager or designee. This includes all payments to the Contractor for ancillary services. The Contractor shall cooperate with the City in developing a process so that the bills are paid in a timely manner.
10. Transitional Work Services: The (TPA) shall include these services in the overall agreement administration fee. The services expected under this program include but are not limited to:
• Review of all injuries for which temporary work restrictions are provided • Work with injured employees, physicians, therapists and departments to clarify restrictions, appropriateness of assigned tasks and scheduling of ongoing treatment/therapy while employee remains on transitional duty • Track duration of transitional work assignments within database system in order to meet OSHA/CAL-OSHA reporting requirements
B. Ancillary Services:
The City reserves the right to discuss modifications and additions to the agreed upon agreement services throughout the term of the agreement. Should additional services become desirable, the City of Modesto and the (TPA) shall negotiate the terms of such desired services as appropriate. If the (TPA) is unable to provide any of the below desired services in a manner acceptable to the City, the City of Modesto may identify an alternate service provider and obtain the services in a manner agreeable to all involved parties. The Contractor shall work with and fully cooperate with any managed care vendor(s) selected by the City if not provided for by (TPA).
1. Nurse Case Management Services: The (TPA) shall establish a clear protocol by which Nurse Case Management Services are triggered. Nurse Case Management costs shall be allocated to the involved claim files, not included as part of the agreement administration fee, and subject to the prevailing rates. In addition, the Contractor shall not charge the City or the managed care vendor(s) for setting up and maintaining this relationship including, but not limited to, implementation fees, electronic data interface, or scanning fees. The City has established #8..
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30 relationships with two (2) nurse case management providers and wishes to continue utilizing those services.
2. Telephonic/Electronic Claim Reporting: The City desires that authorized individuals have the capacity to electronically complete the Employer’s First Report of Injury (Form 5020) in conjunction with the current Company Nurse telephonic claims reporting service.
3. Preferred Provider Organization (PPO) Network: The (TPA) shall make available to the City participation in an established and extensive PPO network. This PPO must provide significant savings below the medical services fees contained within the State of California Official Medical Fees Schedule. The (TPA) shall provide information on its proposed PPO along with the benefits to the City if treatment is directed to members within the proposed PPO network. The City of Modesto reserves the right to reject use of the (TPA’s) PPO and/or require use of an alternate PPO/Preferred Service Provider.
4. Bill Review Services: The (TPA) shall provide bill review services for all invoices received unless otherwise specified by City. Fees associated with the Bill Review Service shall be on a per-bill basis. For bills submitted by PPO members, the (TPA) shall share a percentage of the savings below the California Official Medical Fee Schedule rates in addition to the per-bill charge. For Joint Ventures or for (TPA’s) without in-house or affiliated bill review services, this function must be contracted to a single bill review company.
5. Utilization Review Services: The (TPA) shall be responsible for evaluating situations that may require and/or benefit from referral to an approved UR provider. It is expected that the experienced examiner will make most first line UR decisions and defer to formal UR assessment when an appropriate medical expertise is needed or when required by the State. The (TPA) shall work with the City to develop utilization standards and guidelines to review treatment requests and outline all review fees to include physician reviews and any automatic per file referral fees.
For Joint Ventures or for (TPA’s) without in-house or affiliated UR services, this function must be contracted to a single UR vendor. The (TPA’s) medical director shall be Board certified as required by law. The (TPA) shall provide monthly reports.
C. Claims Management:
1. Information Technology: The City requires access to the Contractor’s claims management system. Contractor shall provide training in accessing information, creating reports. Contractor shall provide reports within twenty-four (24) hours of a request.
Regardless of the type of claims management system used, the Contractor shall provide City with online, full access for three (3) designated City representatives. The City representatives should have access to, but not be limited to, the following:
• Diary access,
• Status notes,
• Payments & reserves,
• Correspondence to attorneys & investigators,
• Appointment letters,
• Correspondence to physician,
• Correspondence to injured workers and their agency/departments, • Work status access.
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31 The Contractor shall comply with the requirements of the state Electronic Adjudication Management System (EAMS) at no additional charge to the City.
2. Meetings, Audits, Coding, and Training: Contractor shall be responsible for the following:
• Preparing and maintaining a City/Contractor policy and procedure manual, • Preparing status reports for and participating in monthly claims review, meetings with respective Agency/Department liaisons and City,
• Providing documentation for the bi-weekly bill and check register audits, • Participating in Risk Management meetings quarterly and as needed, • Using and updating, as needed, the City’s agency and department location, coding and occupational coding that correspond with City budget and job classifications, and • Utilizing appropriate pay codes for all transactions.
3. General Program Administration:
a. Contractor shall provide a claims team dedicated to the City of Modesto account and sufficient claims personnel so that no claims adjuster will be required to handle more than one-hundred forty (140) open indemnity claims at any one time. The claims count shall be reviewed on a quarterly basis. It is expected that the team will consist of two senior examiners.
b. Contractor shall have sufficient staff at all times to effectively handle the City’s workers’ compensation claims including back-up personnel when primary personnel are unavailable.
Insurance Code Section 11761 requires the Contractor to certify that their personnel meet minimum standards. Contractor will ensure that all claims personnel assigned to the City’s account shall meet the annual requirement for continuing education. In addition, the City requires that all personnel managing claims or contacting the public or employees must fluently speak and write English for the effective administration of this agreement. The City expects that claims staff will meet or exceed the experience and professional qualifications listed below and have successfully completed a background check. i. The Claims Manager, Claims Supervisor, and Claims Adjusters shall be state-certified, Self-Insurance Administrators as set forth in Title 8, California Code of Regulations, Section 15452.
ii. The Claims Supervisor shall have a minimum of five (5) years of workers’ compensation claims experience with a California public agency with public safety employees and at least two (2) years workers’ compensation claims supervisory experience. Supervisors shall not carry caseloads but may handle sensitive claims. iii. Senior Claims Adjusters shall be state-certified and experienced with the competency to handle medical, indemnity and litigated claims. The Senior Claims Adjuster shall have a minimum of five (5) years of workers’ compensation claims experience and a minimum of two (2) years’ experience with a California public agency with public safety employees.
iv. Claims Adjusters handling medical-only claims shall be state-certified with a minimum of three (3) years of workers’ compensation claims experience. #8..
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32 v. Throughout the term of this agreement, City shall have the right but not the obligation to participate in (TPA’s) hiring of personnel to service the City account; however, the City retains the right to reject or require the removal of any individual assigned to the City account without establishment of cause.
vi. Contractor shall conduct training in workers’ compensation law and procedures, claims system procedures, and orientation meetings for the City’s personnel involved in the workers’ compensation program, including supervisors and department liaisons. vii. Contractor shall provide the City with information on changes or proposed changes in legislation and rules and regulations affecting the City’s self-insured workers’ compensation program.
c. Contractor shall identify problem areas and recommended solutions on an on-going basis with City representatives. Contractor shall provide consultation services, as needed, to ensure the success of the program, including cost containment and reduction of losses. d. Contractor shall provide loss and injury reports for the City, as a whole, and for each Agency/Department quarterly and prepare annual stewardship reports, SIP, Cal/OSHA, and other reports as requested.
e. City reserves the right to renegotiate the annual fee in the event of a significant change (e.g. 20%) in the claims inventory or in the number of open claims.
4. General Claims Administration:
a. All correspondence is to be date-stamped and distributed to staff within one day of receipt. b. Claims shall be reviewed and setup within twenty-four (24) hours of receipt. The Contractor shall determine the compensability of claimed injuries and illnesses in accordance with the Labor Code by making a 3-point contact with the injured employee, supervisor, and physician within forty-eight (48) hours of receipt.
c. Contractor shall code claims as first-aid/incident only, medical only, or indemnity. d. Claims Adjusters and supervisors shall respond to phone calls and emails within one working day and to written inquiries within three (3) working days. e. Claims Adjusters will preface any written correspondence to claimants with a phone call to claimant explaining the reason for the correspondence.
f. A copy of the Employer’s First Report Form (5020), shall be forwarded to the Contractor within five (5) days of receipt. If requested, the Contractor shall send a copy of the (5020) to the City within forty-eight (48) hours.
g. Contractor shall review and timely process all claims for workers’ compensation benefits in accordance with the California Department of Industrial Relations (DIR) report and notification requirements.
h. Contractor shall request a report from the Index Bureau on all new indemnity claims.
Subsequent requests should be made every six to twelve months thereafter or earlier if required. #8..
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33 i. Contractor shall determine eligibility for and provide timely payments of medical and indemnity benefits and schedule QME examinations to determine the compensability of claims. Prior to the initial payment of temporary disability, a medical report must be received or the medical provider contacted to establish the nature and extent of injury, causal relation to the alleged incident, treatment plan and estimated return-to-work date. Contractor shall obtain medical reports and contact the medical provider, as needed, for verification of continuing indemnity payments.
j. Contractor shall make disability voucher payments in accordance with the City’s bi-weekly payroll schedule. In the event of continuing disability, the Contractor shall obtain medical documentation and contact the medical provider, as needed, for verification of continuing indemnity payments prior to issuing the temporary disability payment and document all activities in claim notes.
k. Contractor shall set up and maintain appropriate reserves based on ultimate claims cost and, according to SIP requirements, using a diary system for regular review of adequacy, but at least every forty-five (45) days. Contractor shall establish reserves within two (2) days of receipt of the new claims and re-evaluate them at each diary date. The basis for any changes shall be documented in the file. If there are no adjustments, the file should be documented to show that the review was conducted and that no changes are required. l. Contractor shall obtain and evaluate medical reports as to the amount of any residual permanent disability to be anticipated, causation for apportionment and subrogation potential. m. Contractor shall review, compute, and authorize timely payment for mileage and temporary and permanent disability benefits due to injured employees whether paid voluntarily or under Decisions, Orders, Findings & Awards of the WCAB, or Compromise & Release settlements.
Payments shall be paid in accordance with the terms of the settlements and awards, Labor Code, or PRISM Workers’ Compensation Administration Guidelines, whichever provides the timeliest payment to the injured worker.
n. Contractor shall assist in the preparation of litigated cases, negotiation of Stipulated Awards, Compromise & Release settlements, and subrogation actions. Contractor shall not assign attorneys without first obtaining approval by the Claims Supervisor and the City. The Contractor shall utilize City approved defense firms/attorneys. The Contractor shall send copies of all legal referral letters outlining issues to be handled, status of case, and supporting documents to the City.
o. Contractor shall evaluate and arrange for the investigation of questionable claims and the disability status of injured employees in order to adjust all claims, minimize disability, and assist in the trial or settlement of claims in a cost-effective manner. Outside investigation services shall be employed only when necessary and only with the Claims Supervisor’s authorization and the City’s approval. The Contractor shall utilize City approved investigators. The Contractor shall send copies of all investigation referral letters to the City outlining issues and desired outcomes.
p. Contractor shall timely report all claims to the excess insurance carrier when the reserves reach (50%) of the City’s Self-Insured Retention (SIR) or as required by the PRISM Excess Workers’ Compensation Claim Reporting and Reimbursement Procedures (see Exhibit B). Upon notice #8..
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34 from the City, Contractor shall post all checks received from PRISM to the appropriate claim file.
q. Contractor shall negotiate State Employment Development Department (EDD) and other liens and attend Mandatory Settlement Conferences (MSC) as required for proper case administration.
EDD payments shall be coordinated with the City’s Human Resources Department. r. Contractor shall code all claims with proper City 2-tier organization codes and City occupational titles.
s. Each open indemnity claim file shall include a plan for case activity and resolution. Such plan shall be reviewed regularly while the claim remains open and identified and dated by the person who established the plan. Open indemnity claims shall be reviewed at thirty (30) days unless there is a compelling reason, as determined by the Claims Supervisor, not to do so (e.g. future medical cases). All such reviews and summaries shall be documented in the claim notes. t. On all future medical award cases, Contractor shall ensure that awards are specific as to the body parts(s) and/or specific condition for which future care has been awarded. Coverage parameters outlined on the P&S report should be stated in file notes and referenced prior to authorization of future medical treatment.
u. Contractor shall complete the Public Self Insurers’ Annual Report and submit it to the City by September 1st of each year.
v. Contractor shall subrogate all claims where a third-party is the cause of the injury and copy the City on initial notice and final resolution. If legal counsel is required, Contractor shall notify the City of such action. The City shall approve all third-party recovery agreements. Reimbursement should be sent directly to the City. Contractor shall post recovery to the appropriate claim file upon notice from the City.
w. Contractor shall follow the settlement authority process in accordance with the City/PRISM settlement guidelines.
x. Contractor shall obtain and review all past medical records as part of the process for managing possible apportionment.
y. Contractor shall maintain complete claim files, including subpoenaed medical records, depositions, defense attorneys’ records, and surveillance and investigation reports. z. Contractor shall administer claims in accordance with the PRISM Claims Administration Guidelines see (Exhibit I) and PRISM Excess Workers’ Compensation Claim Reporting and Reimbursement Procedures see (Exhibit B).
5. Workers’ Compensation Revolving Account:
The City shall establish a revolving fund checking account in an amount to be determined by the parties and confirmed by written document to cover payments and reimbursements applicable to the selfinsured workers’ compensation program. Checks shall be protected with state-of-the-art security measures. The trust fund shall be established in the name of the Contractor as the agent of the City.
Deposits shall be made to the account as required to ensure that funds are available for payments of lawful and approved claim benefits, settlements and allocated expenses, including Labor Code Section #8..
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35 132a claims. “Allocated expense” shall include all WCAB costs, legal fees, copy and process service expenses, independent investigation expenses, expert witness fees, and other costs as approved by the City.
Contractor shall not draw on the fund for any purposes other than for the payment of lawful expenses.
Contractor shall provide the City with a bi-weekly check register in EXCEL format of all payments from the fund. The register shall include, but not be limited to, the date and check number, transaction purpose, name of claimant, claim number, name of adjuster, name of payee, and amount paid.
Appropriate supporting documentation shall be made available upon request from the City. In addition, the Contractor shall provide to the City a monthly check register in EXCEL format.
The City requires that certain payments be pre-approved. This includes any payments made to the Contractor for ancillary services. The Contractor shall assist the City in developing a pre-approval process so that bills are paid in a timely manner.
In addition, the Contractor shall reconcile the revolving fund checking account within three (3) working days of the receipt of the bank statement and provide the information to the City.
Contractor shall develop, implement, and maintain necessary security procedures to safeguard the checks and the funds from fraud.
If the Contractor uses its own bank, the City requires that the bank provide the following:
• Hard copy of the monthly bank statement and a soft copy of the cashed checks in an EXCEL format, and
• An electronic record of the cashed checks showing the front and the back of each check.
6. Medical Administration:
a. Contractor shall coordinate with the City to maintain a panel of medical practitioners for the initial treatment of injured employees including specialists to be used for long-term disabilities, for those requiring special treatment, or for second opinions. b. Contractor shall take a proactive role in handling initial medical control including contacting initial treatment providers within two (2) days of notice of claim. c. Contractor shall redirect care where the injured employee has not initially gone to a designated facility or pre-designated physician.
d. Contractor shall maintain contact with treating physicians to ensure employees receive proper medical treatment and are returned to full or modified employment at the earliest possible date. e. Contractor shall work with the managed care provider(s) to assure appropriateness of treatment and follow utilization review procedures, American College of Occupational and Environmental Medicine (ACOEM) guidelines, and Official Disability Guidelines (ODG). Contractor shall manage medical treatment for the $10,000 cap on all delayed claims. Contractor shall authorize medical case management and nurses per agreed upon criteria and monitor their use for necessity and reasonableness.
f. Contractor shall pay bills in accordance with the California Labor Code. Medical bills shall be reviewed by the Claims Adjuster for relation to injury before being transmitted to the bill review vendor. Prompt and appropriate notice to providers shall be sent regarding any medical charges #8..
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36 that are questionable and/or disputed. Uncontested medical bills shall be paid in accordance with the Labor Code. Contractor shall use appropriate pay code when processing bill payments.
Contractor shall ensure that a utilization review process in compliance with California Labor Code section 4610 (LC 4610) is in place and that Contractor shall ensure a cost-effective efficient bill review process is in place to help minimize medical treatment costs. g. Contractor shall provide complete claims administration and processing of all lifetime medical cases awarded or ordered by WCAB in accordance with current laws and utilization review. h. Contractor shall monitor temporary disability and restricted duty cases. Contractor shall contact the primary treating physician every thirty (30) days on claims where employees remain on temporary disability with the goal of returning employee to temporary modified work or to regular work as soon as possible.
i. Contractor shall monitor all claims where injured employees are on temporary modified work with a goal of returning them to full duty or maximum medical improvement (MMI) as soon as possible. These claims shall be monitored in compliance with City policy.
7. Litigation Management:
a. Contractor shall assist the City in creating a panel of defense firms/attorneys. Defense attorney referrals shall be approved by the Claims Supervisor and the City prior to assignment. b. Cases should be assigned to law firms using criteria specified by the City. Referral to defense counsel shall be authorized by the City.
c. Contractor shall monitor performance of and require all defense attorneys to provide a case summary along with recommendations for resolution and an action plan within 30 days of referral and provide justifications for settlement proposals 30 days before the MSC or trial. The Contractor shall copy the City on correspondence as specified by the City. d. Contractor shall obtain settlement authority from the City and provide such authority to defense counsel at least two (2) weeks prior to Mandatory Settlement Conference and trial dates. e. Contractor shall hold periodic meetings and file reviews on selected cases with Risk Management, department liaisons and defense attorney.
8. Investigation Management:
a. Contractor shall assist the City in creating a panel of investigators and assignment criteria.
Investigation referrals shall be approved by the Claims Supervisor and City. b. Cases should be assigned to investigators by the Contractor on an “as-needed” basis as specified by the City. All claims requiring referral to investigators shall be accompanied by a referral letter outlining the status of the case, issues to be handled. A copy of the referral shall be sent to the City.
c. SIU Investigation Management. Contractor shall develop and implement a process to refer potentially fraudulent claims to the City. If warranted, the Contractor shall prepare the case and refer it to the District Attorney’s Office SIU for prosecution. Contractor shall provide quarterly reports of these activities, including results of sub-rosa investigations. All potential fraudulent claims shall also be referred to the State Department of Insurance and copies be sent to the City. #8..
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37 d. Contractor shall monitor performance of and require all investigators to provide a final report within seven (7) days of receipt of assignment. The Contractor shall copy the City on correspondence as specified by the City.
9. Audit:
The City reserves the right to audit files for claims handling and payments. In addition, the City may require periodic claims audits and/or actuarial studies to be conducted by independent auditors or actuaries, at the City’s expense. Contractor shall cooperate fully with audits and/or actuarial studies at no additional expense to the City. Additionally, Contractor shall provide City personnel and/or representatives with work space and provide aid by locating files and invoices for these audits and studies.
10. Quality Assurance:
The Contractor shall provide the City with a description of its quality assurance program. The program shall include, but not be limited to, the following areas:
• Employee Qualification and Training
o Minimum education and/or work experience requirements for each position o On-going training as required by the state
o Staff meetings
o Performance evaluation
• Claims Handling
o An acceptable staff to supervisor ratio
o Random internal audits
o Regularly updated claims processing manual
o Phone monitoring
• Supervisor’s Qualification and Training
o Minimum education and/or work experience
o On-going training as required by the state
o Credentials and continuing education requirements
11. Reporting Services and Records Retention:
In addition to the information described in, Specific Requirements, Contractor shall provide the City with monthly, quarterly, and annual reports in the format and number requested by the City. Such reports shall include, but not be limited to, the following:
a. Annual “Self-Insurer’s Annual Report” to the California Department of Industrial Relations b. Annual tax statement, including Federal Form 1099 and State Form 599 as appropriate c. Annual Cal/OSHA Log 300 by Agency/Department and by Unit d. Report of claimants off work and claimants on modified duty e. Annual Stewardship Reports
f. Monthly Loss Runs
g. Bi-weekly voucher payment reports. Contractor shall make disability voucher payments in accordance with the City’s bi-weekly payroll schedule. All reports must be received by end of business on “payroll” Monday. Certain holidays may impact payroll processing and the City shall provide at least two (2) weeks’ notice to contractor should the voucher report need to be produced earlier to run payroll.
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38 Standard, Custom and Adhoc Reports shall be furnished at no additional cost. All requests for Custom and Adhoc Reports shall be authorized by the Risk Management Division. Reports identified by the City shall automatically be generated at the intervals specified during the negotiation process.
All claims files, records, and other documents and materials pertaining to the City’s claims shall be the property of the City. They shall be available for the City’s use at any time and shall be delivered to the City upon termination of the agreement.
1.4 PERFORMANCE BASED CONTRACT PROVISION REQUIREMENTS
CSAC Excess Insurance Authority shall conduct a biennial claims audit, which shall be used as one of the bases for evaluating performance, in addition to providing timely, and accurate claim data as requested.
The claims audit shall evaluate compliance with the PRISM Workers’ Compensation Claims Administration Guidelines (claim guidelines). The claims audit shall measure the percentage of compliance achieved in each of seven (7) selected audit categories. If the claims audit composite score is below 90%, penalties to the claim’s administration fees would apply as outlined below.
If the performance as identified by the audit is at a level significantly below the 90% composite score noted previously, such that the City schedules an interim audit with an independent auditor, the cost of said interim audit shall be the responsibility of TPA to reimburse the City upon submission of the paid invoice.
1.5 PENALTY CALCULATION:
TPA can be assessed a penalty of $1,000 or up to $7,000 for each of the audit categories listed below where the composite rating for a category is below 90%:
1.6 AUDIT CATEGORY:
• Medicare Reporting
• Three Point Contact
• Indexing
• Disability Management
• Reserving
• Reimbursement & Recovery
• Excess Reporting
1.7 AUDITOR CONTROLS:
In conducting the annual audit, the auditor shall limit the evaluation to areas directly under TPA’s control.
The audit shall be limited to activity performed by TPA since the previous audit. The sample size obtained for each audit category shall be at least thirty (30) files representing all City claims, or that audit category shall be disregarded. As respects the audit category of “Reserving”, the auditor shall consider file to be complying if reserve changes are properly considered and documented and the auditor’s reserve recommendation is within 5% of the indicated reserve. However, in the event of a dispute the independent auditor’s final opinion shall be the determining factor.
1.8 PAYMENT OF PENALTY:
The penalty shall apply to claims administration fees earned during the July 1st to June 30th contract year during which the audit is completed. The penalty shall be payable in equal monthly installments over the contract year immediately following the subject audit year. (For example, if the audit is completed during the 2012/13 contract year, the penalty shall be assessed during the 2013/14 contract year.) The penalty is separate from the annual administration fee. Should this contract be cancelled, or not renewed beyond the term of this #8..
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39 Agreement, the balance of the penalty shall be payable within thirty (30) days of the termination or nonrenewal.
1.9 CLAIM REPORTS:
The monthly claim reports and bi-weekly voucher reports are to be fully checked for quality prior to submitting to the City, and shall be provided timely. Monthly reports must be received before the 15th of the month and biweekly voucher reports shall be received by end of business on payroll Mondays. Certain holidays may impact payroll processing and the City shall provide at least two weeks’ notice to contractor should the voucher report need to be produced earlier to run payroll. Failure to provide accurate and timely reports shall result in a $100 penalty for the first report missed. Late or inaccurate reporting penalty shall be capped at $2,600 for each contract year, with the penalty being assessed at the end of that contract year.
If the City is required to re-request data due to errors identified due to adjuster or system error, or the reports are submitted after the indicated due date and time, the penalty provision shall apply.
1.10 INSURANCE:
The CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by the City Clerk of the CITY. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
A. General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent contractors and subcontractors; products and completed operations; and/or professional liability.
B. Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
C. Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000.
D. Professional Liability – insurance with a minimum limit of $1,000,000 per claim and $2,000,000 policy aggregate. If coverage is on a claim made basis it shall be maintained for at least three (3) years following completion of the work.
If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Management via PINS for approval and submit a certificate thereof as hereinabove provided. Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this agreement, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification. The CITY, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation. #8..
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40 The Workers' Compensation insurer shall agree to waive all rights of subrogation against the CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for the CITY.
The CONTRACTOR's insurance policy(ies) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A: VII or with approval of the Risk Manager.
For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
CONTRACTOR shall either require any subcontractor to procure and to maintain during the term of the subcontract all insurance in the amounts specified above, or shall insure the activities of subcontractors in the policy specified above. The limits of liability required may vary, depending on the type of permit or contract.
1.11 PRE-PROPOSAL CONFERENCE:
A pre-proposal conference is scheduled for Tuesday, November 30, 2021, beginning at 9:00 A.M. (PT), via Microsoft Teams. Please utilize the following information to join.
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+1 469-998-7409,48176356# United States, Dallas
Phone Conference ID: 481 763 56#
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Persons attending the pre-proposal conference assume all risks of damage or loss to person and property and specifically release the City of Modesto from liability therefore. #8..
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41 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
GENERAL TERMS AND CONDITIONS
2.1 PROPOSAL SUBMITTAL:
Proposers shall submit two (2) “inked” (preferably blue ink) signed original proposal document, plus one (1) copy of the signed original proposal document and one (1) electronic copy submitted via USB. The original proposal document shall be clearly marked. Photocopies do not constitute an original proposal document.
FAILURE TO FURNISH AT LEAST ONE “INKED” SIGNED ORIGINAL PROPOSAL DOCUMENT MAY RESULT IN DISQUALIFICATION.
It is the responsibility of the proposers to identify information in their proposal responses that they consider confidential under the California Public Records Act. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
All costs associated with the preparation of this proposal shall be borne by the proposer.
All exceptions taken to these specifications shall be specifically and clearly identified on the Exceptions, Clarifications, and Amendments Form. Failure to comply with this provision is grounds for proposal rejection.
Exceptions taken shall not affect the overall performance and quality of equipment, materials and/or services required by the City. The Purchasing Manager or designated agent shall make the final decision regarding the acceptability of equipment, materials and/or services with exceptions.
Proposal shall be made in the format specified below. All requested exhibits shall be submitted with the completed Proposal and in the designated format. No oral, telegraph, telephone, facsimile or electronic proposals will be accepted. Failure to comply with all requirements may result in proposal rejection.
2.1.1 PROPOSAL PREPARATION:
Proposal shall be submitted in a three-ring binder with section tabs (A through Z as needed) with responses in the order described below. In those instances where specific questions are asked, each question shall be repeated in the proposal with the response following the question. Extraneous or marketing information shall not be included.
If a service requirement cannot be met, Proposer shall indicate “No Proposal” in the relevant section of the proposal. In this case, proposer may offer an alternative equivalent service.
2.1.2 ACCEPTANCE/REJECTION OF IRREGULAR PROPOSALS:
An agreement shall be awarded to the proposer whose proposal most closely satisfies the needs of the City and is deemed the most advantageous to the City. The City reserves the right to reject any or all proposals or to waive any informalities or minor irregularities in a proposal. #8..
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42 2.1.3 COMPLETE PROPOSAL SUBMITTAL:
The following documents constitute the makeup of a complete proposal submittal:
• Proposal Acknowledgement (Signature Form)
• Pricing Schedule (Signature Form)
• References
• Exceptions, Clarifications, Amendments (if applicable) • Financial Interest Disclosure (Signature Form)
• Company History Statement
• Minimum Requirements
• Addenda Acknowledgement page (if applicable)
• Debarment and Suspension
• Specific Requirements
• Programs
• Third-party Administrator Questionnaire
Failure to furnish any of these documents may result in disqualification.
2.1.4 PROPOSAL PREPARATION:
Proposals shall be prepared in the order listed in Section 2.1.3 Complete Proposal Submittal. Proposals shall be tabbed with dividers. Tabbed dividers shall be clearly marked indicating the appropriate document.
2.2 COMPLIANCE:
Proposers are required to sign the “Pricing Schedule, Financial Interest Disclosure and Proposal Acknowledgement Form” of this proposal document, thereby acknowledging they are in full compliance with all requirements of RFP No. 2021-44, and any addendum to such proposal. Failure to comply may result in disqualification.
The proposer guarantees that the offered equipment, material or services meet all safety requirements applicable in accordance with Cal-OSHA regulations and any other rule or regulation required by the City of Modesto.
2.3 NON-COMPLIANCE:
If you cannot comply with a specification requirement, note as an addendum on the Exceptions, Clarifications, Amendments Form specification paragraph, your exception, and your recommendation. The Purchasing Manager will evaluate your recommendation. If after evaluation it is determined that the proposer is not in compliance with the specification, the proposal may be rejected.
2.4 PRICING FORMAT:
All labor, materials, parts, equipment, tools, licenses and insurance necessary to perform the services shall be included in the proposed pricing.
Unless otherwise stated, the proposer agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
2.5 PRICING SCHEDULE:
Proposers shall use the pricing schedule provided in this document to present their proposal. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, Amendments” section on page 13. #8..
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43 2.6 AWARD OF PROPOSAL:
Proposals shall be evaluated by a committee and will be ranked in accordance with the RFP section entitled “Evaluation Criteria.”
The committee shall recommend award to the proposer who, in its opinion, has submitted a proposal that best serves the overall interests of the City, and attains the highest overall point score. Award may not necessarily be made to the proposer with the lowest price.
The City reserves the right to decline to award a contract if it is determined that the proposed pricing is not competitively priced based on similar contracts with public agencies within the State of California.
The City reserves the right to select that proposal, which best suits the City’s needs. Regardless of City staff’s recommendation, the City Council reserves the right to award a contract to the proposer that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.
2.7 EVALUATION PROCESS:
Proposals shall be evaluated using a three (3) step process:
Level 1 – Minimum Qualifications Review: The City shall perform an initial responsiveness review to determine compliance and shall notify disqualified Proposers. Proposers that do not meet the “Minimum Qualifications” requirements shall be deemed non-responsive and/or/non-responsible to this RFP and will receive no further consideration.
Level 2 – Proposal Content and Cost Ratings: Proposals that meet Level 1 Minimum Qualifications Review shall be evaluated based on the evaluation criteria “Proposal Evaluation Criteria”. Proposer submittals shall be evaluated and scored. Proposer cost information shall be evaluated as part of Level 2 evaluation process.
Level 3 – Short List (Oral Presentations): At the sole discretion of the Evaluation Committee, a “short list” of proposers may be developed of the highest rated written submissions, based on Level 1 and Level 2 rankings. If the Evaluation Committee chooses, these proposers would be invited to give presentations. Final scoring of “short list” proposals shall be completed upon the conclusion of presentations.
2.8 TERM OF AGREEMENT:
The term of the agreement shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of City, for a total of up to five (5) years.
A. Pricing shall remain firm for the first two (2) years of any contract, which may be awarded pursuant to this RFP.
B. Price increases for subsequent agreement years, three, four and five, shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one agreement year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, sixty (60) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.
2.9 QUANTITIES:
The successful proposer shall be required to provide whatever quantities may be required during the agreement term. No minimum or maximum is guaranteed or implied.
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44 2.10 FUNDING:
All annual extensions are based upon continuous funding for that purpose by the City Council. Failure to fund any annual extension shall result in an immediate termination of the agreement without redress.
2.11 INSPECTION AND ACCEPTANCE:
Whenever the product or service provided by the supplier has been delivered to the delivery point, the designated agent shall make the final inspection and acceptance. If upon initial inspection the product or service is found to be defective in its construction or deficient in any of the requirements of this specification, the supplier shall remedy or remove said product in an acceptable manner at the supplier's expense. No compensation shall be allowed for such correction of product, labor, or transportation of product.
2.12 CITY BUSINESS LICENSE:
Prior to beginning any service, that shall be furnished under this specification and proposal, the Proposer shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389.
2.13 OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:
If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and modified by mutual agreement between all parties may be extended to other government or publicly funded agencies. It shall be understood that all terms and conditions as specified herein shall apply.
2.14 NON-DISCRIMINATION:
A. During the performance of this contract, Contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), or sexual orientation. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment.
Contractor and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
B. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
C. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.
D. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the City upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or City shall require to ascertain compliance with this clause. #8..
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45 2.15 NON-DISCRIMINATION OF THE HANDICAPPED:
CERTIFICATION OF PROPOSALDER REGARDING NON-DISCRIMINATION OF THE
HANDICAPPED
By executing this agreement, the proposer hereby certifies that he/she is in compliance with The Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the agreement and any extensions thereof.
2.16 DRUG FREE WORKPLACE:
Proposer/Contractor certifies that he/she is in compliance with Sections 8350 - 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act. Every person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.
2.17 INDEMNITY:
The CONTRACTOR shall hold the CITY, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities and damages from every cause, including but not limited to injury to person or property or wrongful death, with the indemnity to include reasonable attorney's fees, and all costs and expenses, arising directly or indirectly out of any act or omission of CONTRACTOR, whether or not the act or omission arises from the sole negligence or other liability of CITY, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under the Agreement.
2.18 ASSIGNMENT OF RIGHTS:
CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the purchase of goods, services, or materials pursuant to this contract or any subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY tender’s final payment to CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).
2.19 CITY PROCESS/PROCEDURE APPROVALS:
CITY approval of any process or procedure shall not relieve the proposer of his/her responsibility to furnish the required items and service meeting all specifications contained herein.
2.20 PROPOSAL/SELLER REPRESENTATION:
The proposer/seller represents that:
A. He/She has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant purchase order and supporting data, and that he/she has, from the information contained in such documents, specifications, and data, fully acquainted him/her with all conditions relevant to the work.
B. He/She has made all reasonable investigations essential to a full understanding of the difficulties, which may be encountered in performing the work.
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46 C. He/She will complete the work for the compensation stated above.
D. He/She assumes full and complete responsibility for all conditions relevant to the work and all risks in connection therewith.
E. In addition, thereto, the proposer/seller represents that he/she is fully qualified to do the work in accordance with the terms of any Purchase Order issued within the time specified in it.
F. Anything mentioned in the specifications and not in the Purchase Order, or mentioned in the Purchase Order and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both.
In case of difference between the specifications and the Purchase Order, the Purchase Order shall govern.
2.21 FAILURE TO PERFORM SATISFACTORY:
It is agreed and understood that if the CONTRACTOR fails to perform the work as specified herein, CITY's representative may (1) consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors, (2) have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or (3) recommend termination of contract between said CONTRACTOR and the City of Modesto. Those discrepancies and deficiencies in the work that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the work not corrected or completed.
2.22 CONTRACTOR'S RESPONSIBILITY FOR DAMAGES:
If CONTRACTOR damages any property belonging to the CITY, the CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or require CONTRACTOR to repair the damage to the satisfaction of the CITY at CONTRACTOR's expense.
2.23 LABOR FORCE AND SUPERVISION:
CONTRACTOR shall provide sufficient labor at all times to carry out the project properly and shall ensure that fully experienced competent licensed workers who are skilled in the type of work required are employed.
CONTRACTOR shall ensure that supervision is provided at all times while any work under this contract is being performed. If, in the judgment of the CITY, any person is incompetent or disorderly, CONTRACTOR shall promptly remove such person from the work for the duration of the contract.
2.24 PROTEST AND APPEAL PROCEDURES:
Potential offerors, bidders, contractors, and subcontractors wishing to protest or appeal a procurement or contracting decision by the City of Modesto must follow the procedures provided by the section. Protests or appeals which are not submitted in accordance with these procedures will not be reviewed.
DEFINITIONS
For the purposes of this procedure: "Days" means working days in which City Hall is open for business, excluding holidays and weekends.
"Filing Date" or "Submission Date" means the date of receipt by the City Clerk’s office of the City of Modesto. "Interested Party" means an actual or prospective bidder or offeror, or any contractor or subcontractor identified by name in any bid or proposal.
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47 "Bid" includes the term "offer" or "proposal" as used in the context of formal, informal, or negotiated procurements.
"Announced Decision" includes the term “Notice of Intent to Award Letter”. Once the City has issued an Announced Decision, the date noted will begin the time that an Interested Party may lodge a protest.
Procurements valued at $50,000 or less normally will not have an Announced Decision.
A. PROTEST PROCEDURES
1. Any interested party may lodge a written protest to an Announced Decision with the City of Modesto's Purchasing Manager no later than ten (10) days after the Announced Decision.
2. The protest shall be delivered or sent by registered mail and postmarked by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses.
3. The protest shall be accompanied by a certified or cashier's check in the amount of $300.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS) or in such other sum as the City may establish, made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review.
4. The protest filed with the Purchasing Manager shall:
a. Include the name, address, and business telephone number of the protestor; b. Identify the project under protest by name, Request for Bid (RFB)/Request for Proposal (RFP) number, and bid/RFP date;
c. Contain a concise statement of the grounds for protest; d. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
All protests shall either be delivered to:
City Clerk’s Office
Attn: Purchasing Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Purchasing Manager
PO Box 642
Modesto CA 95353
B. PROTEST REVIEW (ANNOUNCED DECISION)
1. Protest to Purchasing Manager
Upon receipt of a complete and timely protest, the Purchasing Manager shall review all the submitted materials and shall create and retain a written record of the review. The Purchasing Manager shall respond at least generally to each material issue raised in the protest not later #8..
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48 than ten (10) days after receipt of the protest. Notice of the Purchasing Manager's decision may be given by letter mailed through U.S. Postal Service.
2. Appeal to Deputy City Manager
The Purchasing Manager's decision may be appealed in writing to the City of Modesto's Deputy City Manager(s) no later than ten (10) days after the date of the Purchasing Manager’s Decision.
The scope of the appeal shall be limited by the issues raised in the initial protest to the Purchasing Manager. The Deputy City Manager shall not be permitted to review any newly raised issues. The Deputy City Manager shall review the appeal, accompanying supporting documents, if any, and the written record of the protest review by the Purchasing Manager.
A written record of the Deputy City Manager's review shall be created and maintained. The Deputy City Manager shall give notice of his or her decision to the protestor within ten (10) days after receipt of appeal.
All protest appeals shall either be delivered to:
City Clerk’s Office
Attn: Deputy City Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Deputy City Manager
PO Box 642
Modesto CA 95353
3. Appeal to City Council
Any protestor seeking to appeal to the decision of the Deputy City Manager may appeal in writing to the City Council by filing with the City Clerk a written notice of such appeal not later than fifteen (15) business days after the date of the Deputy City Manager's decision.
The City Clerk will calendar the protest for Council hearing and give notice of the time and place of the hearing as provided in Modesto Municipal Code Sections 1-4.01 through 1-4.05.
The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing, or provide other direction to staff. In such cases, staff cannot reverse a City Council decision.
All protests shall either be delivered to:
City Clerk’s Office
Attn: City Council
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
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49 City Clerk’s Office
Attn: City Council
PO Box 642
Modesto CA 95353
C. PROTESTS OF PROCUREMENTS EXCEEDING $250,000.00
Interested parties protesting procurements exceeding $250,000.00 shall comply with the procedures contained herein, except that in lieu of appeal to the Deputy City Manager, a protestor may request that the protest be heard and decided at an administrative hearing.
A written request for administrative hearing shall be accompanied by a certified or cashier's check in the amount of $1,500.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS; Refer to Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14) payable to the City of Modesto, and shall be received by the Purchasing Manager not later than fifteen (15) days after dispatch of the Purchasing Manager's decision. The request for hearing shall include the specific grounds of the appeal.
The City of Modesto shall select and engage an impartial and qualified person to act as hearing officer in the pending protest. The protestor shall have the right to twice reject the selected hearing officer, provided that the City is notified of such rejection within three (3) days of notice to protestor of the name of the hearing officer.
The protest shall be heard not later than twenty (20) days after receipt of protestor's request for hearing and the selection of a hearing officer. Protests not heard in a timely manner shall be deemed withdrawn, unless the City and the protestor mutually agree otherwise in writing. The protestor’s failure to accept a hearing officer after the third attempt by City staff to identify an impartial hearing officer shall be deemed a withdrawal of the protest.
The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses.
The decision of the hearing officer shall be deemed as the final decision of the City, and no other appeal to City Staff or body shall be permitted.
D. PROCUREMENTS OBTAINED WITH FEDERAL FUNDS
1. If the protested procurement involves federal funds, e.g., from the Federal Transit Administration (FTA) of the United States, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven (7) business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. Appeals to the Federal Transit Administration (FTA) shall comply with FTA Circular 4220.1E and the amendments and supplements thereto. Additional information regarding protesting procurements obtained with Federal Funds can be found in the Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14. #8..
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50 2. The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing before Council on the procurement at hand. In such cases, no internal appeal is possible since staff may in no case reverse a City Council decision. In such an event, a disappointed transit bidder or a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the Federal Transit Administration.
2.25 PAYMENT:
• Paper Payment Method:
All invoices shall be paid in full within thirty (30) days after completion and acceptance of services by the City, and receipt of a properly prepared invoice.
• Electronic Payment Method:
The City of Modesto provides an E-pay Program which involves payment of invoices by a secure Visa account number assigned to the supplier after award of bid or contract. Notification of payments and required invoice information are issued to the supplier’s designed Accounts Receivable contact by email remittance advice at time of payment.
During the evaluation process preference may be shown to proposers that agree to accept E-pay for payment of invoices. Please indicate on the Pricing Schedule whether or not your company will accept the City’s E-pay Program.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
2.26 SAMPLE ANNUAL AGREEMENT:
Please review the Sample Annual Agreement. This Agreement maybe modified and subject to change. #8..
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51 EXHIBIT A
SELF INSURED ANNUAL REPORTS
FY16/17
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52 FY17/18
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53 FY18/19
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54 FY19/20
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55 EXHIBIT B
Workers’ Compensation Claims Administration Standards
Adopted: December 6, 1985
Last Amended: July 1, 2019
WORKERS' COMPENSATION
CLAIMS ADMINISTRATION STANDARDS
The following Standards have been adopted by Public Risk Innovation, Solutions, and Management (hereinafter PRISM) in accordance with Article 18(b) of the PRISM Joint Powers Agreement. It is the intent of these Standards to ensure compliance with all applicable Labor Code and California Code of Regulations Sections. In the event that there exists a conflict between the Standards, the Labor Code or the Code of Regulations, the most stringent requirement shall apply.
I. CLAIMS HANDLING - ADMINISTRATIVE
A. Case Load
1. Each claims examiner assigned to the Member should handle a targeted caseload of 150 but not to exceed 165 claims. In situations where caseloads include future medical and medical only claims, these claims shall be counted as 2:1 in the caseload limit.
2. Supervisory personnel should not handle a caseload, although they may handle specific issues or a small number of conflicted claims.
B. Case Review and Documentation
1. Documentation shall reflect any significant developments in the file and include a plan of action. Plan of action statements shall be updated at the time of examiner diary review.
2. The examiner shall review indemnity and medical-only files at intervals not to exceed 45 calendar days. Future medical files shall be reviewed at intervals not to exceed 90 calendar days.
3. The supervisor shall review all new claims within 60 calendar days of initial set up and subsequently monitor activity on indemnity files at intervals not to exceed 120 calendar days. Future medical files shall be reviewed by the supervisor at intervals not to exceed 180 calendar days.
4. File contents shall comply with Code of Regulations Sections 10101, 10101.1 and 15400, and be kept in a neat and orderly fashion. If claims are maintained in a paperless system, documents shall be clearly identified (e.g., medical report, WCAB Orders, legal, etc.).
5. Medical Only Claims
a. If a medical-only claim is still open at 90 calendar days, it shall be transferred to an indemnity examiner.
b. If, at any time, it is anticipated there will be indemnity benefits paid, the claim shall be transferred to an indemnity claim type.
c. If the medical-only claim remains open at 180 days, the claim shall be converted to an indemnity claim type, unless there is documentation showing that medical treatment will be ending and the claimant will be discharged from care within the next 30 days, or the claimant is only seeking treatment for a bloodborne pathogen exposure protocol.
C. Communication
1. Telephone Inquiries
Return calls shall be made within 1 working day of the original telephone inquiry. All documentation shall reflect these efforts.
2. Incoming Correspondence
All correspondence received shall be clearly stamped with the date of receipt.
3. Return Correspondence
All correspondence requiring a written response shall have such response completed and transmitted within 5 working days of receipt.
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56 4. Ongoing Claimant Contact
On cases involving unrepresented injured workers who are off work, telephone contact shall be made at a minimum of once every 30 days and within 3 working days after discharge from the hospital or outpatient facility following a surgical procedure. This is in addition to nurse case management involvement on claims where nurse case managers are assigned.
D. Fiscal Handling
1. Fiscal handling for indemnity benefits on active cases shall be balanced with appropriate file documentation on a semi-annual basis and prior to sending a benefit termination notice to verify that statutory benefits are paid appropriately. Balancing is defined as, “an accounting of the periods and amounts due in comparison with what was actually paid”.
2. In cases of multiple losses with the same person, payments shall be made on the appropriate claim file.
E. Medicare Reporting
Mandatory reporting to the Center for Medicaid Services (CMS) shall be completed directly or through a reporting agent in compliance with Section 111 of the Medicare Medicaid and SCHIP Extension Act of 2007 (“MMSEA”). Medicare eligibility shall be documented in the claim file at time of settlement evaluation.
II. CLAIM CREATION
A. Three-Point Contact
Three-point contact shall be conducted on all claims with the non-represented injured worker, employer representative and treating physician within 3 working days of receipt of the claim by the third-party administrator or self-administered entity. If a nurse case manager is assigned to the claim, initial physician contact may be conducted by either the claims examiner or the nurse case manager.
This initial contact should be substantive and clearly documented in the claim file. In the event a party is non-responsive, there shall be evidence of at least three documented attempts to reach the individual.
B. Compensability
1. The initial compensability determination (accept claim, deny claim or delay acceptance pending the results of additional investigation) and the reasons for such a determination shall be made and documented in the file within 14 calendar days of the filing of the claim with the employer.
In the event the claim is not received by the third-party administrator or self-administered entity within 14 calendar days of the filing of the claim with the employer, the third-party administrator or selfadministered entity shall make the initial compensability determination within 7 calendar days of receipt of the claim.
2. Delay of benefit letters shall be mailed in compliance with the Division of Workers’ Compensation (DWC) guidelines. In the event the employer does not provide notice of lost time to the third-party administrator or self-administered entity timely to comply with DWC guidelines, the third-party administrator or self-administered entity shall mail the benefit letters within 7 calendar days of notification.
3. The final compensability determination shall be made by the claim’s examiner or supervisor within 90 calendar days of employer receipt of the claim form.
C. AOE/COE Investigation
If a decision is made to delay benefits on a claim, an AOE/COE investigation shall be initiated within 3 working days of the decision to delay. This may include, but is not limited to, assigning out for witness/injured worker statements, initiating the QME/AME process, requesting medical records, etc.
D. Reserves
1. Using the information available at claim file set up, an initial reserve shall be established for the most probable case value.
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57 2. The initial reserve shall be electronically posted to the claim within 14 calendar days of receipt of the claim.
E. Indexing
All claims shall be reported to the Index Bureau at time of initial set up and re-indexed on an as needed basis thereafter. Blood borne pathogen exposure claims are an exception to this requirement.
PRISM maintains membership with the Index Bureau that members can access.
III. CLAIM HANDLING – TECHNICAL
A. Payments
1. Initial Temporary and Permanent Disability Indemnity Payment a. The initial indemnity payment shall be issued to the injured worker within 14 calendar days of knowledge of the injury and disability. In the event the third-party administrator or selfadministered entity is not notified of the injury and disability within 14 calendar days of the employer’s knowledge, the third-party administrator or self-administered entity shall make payment within 7 calendar days of notification. Initial permanent disability payments shall be issued within 14 calendar days after the date of last payment of temporary disability. Effective 1/1/2013, permanent disability payments shall be issued upon approval of an Award pursuant to Labor Code Section 4650(b)(2). Prior to a PD Award, advances may be due if the employer has not offered the employee a position paying at least 85% of their wages and compensation at time of injury or the employee is not employed in a position paying at least 100% of their wages and compensation at time of injury. This shall not apply with salary continuation. b. The properly completed DWC Benefit Notice shall be mailed to the employee within 14 calendar days of the first day of disability. In the event the third-party administrator or selfadministered entity is not notified of the first day of disability until after 14 calendar days, the DWC Benefit Notice shall be mailed within 7 calendar days of notification. c. Self-imposed penalty shall be paid on late payments in accordance with Section III.
A.7 of this document.
d. Overpayments shall be identified and reimbursed timely where appropriate. The third-party administrator or self-administered entity shall request reimbursement of overpaid funds from the party that received the funds. If necessary, a credit shall be sought as part of any resolution of the claim.
2. Subsequent Temporary and Permanent Disability Payments a. Eligibility for indemnity payments subsequent to the first payment shall be verified, except for established long-term disability.
b. Ongoing indemnity payments shall be paid in accordance with Labor Code Section 4650(c).
c. Subsequent DWC benefit notices shall be issued in accordance with CCR 9812. d.
Self-imposed penalty shall be paid on late payments in accordance with Section III. A.7 of this document.
3. Final Temporary and Permanent Disability Payments
a. All final indemnity payments shall be issued timely. b. The appropriate DWC benefit notices shall be issued in accordance with CCR 9812. c. Self-imposed penalty shall be paid on late payments in accordance with Section III.
A.7. of this document.
4. Award Payments
a. The claim file shall reflect demonstrated efforts to initiate/batch payments on undisputed Awards, Commutations, or Compromise and Release agreements within 10 working days following receipt of the appropriate document, unless the Award indicates payment is due sooner.
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58 b. For all claims in the Primary Workers’ Compensation (PWC) Program and/or excess reportable claims, copies of all Awards shall be provided to PRISM at time of payment.
5. Medical Payments
a. Medical treatment billings (physician, pharmacy, hospital, physiotherapist, etc.) shall be reviewed for correctness, approved for payment and paid within 60 days of receipt. b. The medical provider shall be notified in writing within 30 days of receipt of an itemized bill if a medical bill is contested, denied or incomplete. c. A bill review process should be utilized whenever possible. There should be participation in a PPO and/or MPN whenever possible.
6. Injured Worker Reimbursement Expense
a. Reimbursements to injured workers shall be issued within 15 working days of the receipt of the claim for reimbursement.
b. Advance travel expense payments shall be issued to the injured worker 10 working days prior to the anticipated date of travel.
7. Penalties
a. Penalties shall be coded so as to be identified as a penalty payment. b. If the Member utilizes a third-party administrator, the Member shall be advised of the assessment of any penalty for delayed payment and the reason thereof, and the administrator’s plans for payment of such penalty, on a monthly basis. c. If the Member utilizes a third-party administrator, the Member, in their contract with the administrator, shall specify who is responsible for specific penalties.
B. Medical Treatment
1. Each Member shall have in place a Utilization Review process as set forth in Labor Code Section 4610.
2. Disputes regarding utilization review determinations shall be resolved using the Independent Medical Review process set forth in Labor Code Section 4610.5.
3. Nurse case managers shall be utilized where appropriate. Rationale for assignment and continued necessity shall be documented in the claim notes at each regular diary review.
4. If enrolled in a Medical Provider Network, the network shall be utilized whenever appropriate.
C. Apportionment
1. Investigation into the existence of apportionment shall be documented.
2. If potential apportionment is identified, all efforts to reduce exposure shall be pursued.
D. Disability Management
1. The third-party administrator or self-administered entity shall work proactively to obtain work restrictions and/or a release to full duty on all cases. The TPA or self-administered entity shall notify a designated Member representative immediately upon receipt of temporary work restrictions or a release to full duty, and work closely with the Member to establish a return to work as soon as possible.
2. The third-party administrator or self-administered entity shall notify a designated Member representative immediately upon receipt of an employee’s permanent work restrictions so that the Member can determine the availability of alternative, modified or regular work.
3. If there is no response within 20 calendar days, the third-party administrator or selfadministered entity shall follow up with the designated Member representative.
4. Members shall have in place a process for complying with laws preventing disability discrimination, including Government Code Section 12926.1, which requires an interactive process with the injured worker when addressing a return to work particularly with permanent work restrictions.
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59 5. Third-party administrators or self-administered claims professional shall cooperate with members to the fullest extent, in providing medical and other information the member deems necessary for the member to meet its obligations under federal and state disability laws.
E. Supplemental Job Displacement Benefits
1. Supplemental Job Displacement Benefits – Dates of injury on or after 1/1/04 and before 1/1/13: Benefits pursuant to Labor Code Section 4658.5 shall be timely provided. Dates of injury on or after 1/1/13: Benefits pursuant to Labor Code 4658.7 shall be timely provided.
2. The third-party administrator or self-administered entity shall secure the prompt conclusion of SJDB.
F. Reserving
1. Reserves shall be reviewed at regular diary and at time of any significant event, e.g. - surgery, P&S/MMI, return to work, etc., and adjusted accordingly. This review shall be documented in the file regardless of whether a reserve change was made. Where the SIP model does not apply, claims shall be reserved for the most probable value.
2. Indemnity reserves shall reflect actual temporary disability indemnity exposure with 4850 differentials listed separately.
3. Permanent disability indemnity exposure shall include life pension reserve if appropriate.
4. Future medical claims shall be reserved in compliance with CCR 15300 (b)(4) allowing adjustment for reductions in the approved medical fee schedule, undisputed utilization review, medically documented non-recurring treatment costs and medically documented reductions in life expectancy.
5. Allocated expense reserves shall include medical cost containment, legal, investigation, copy service and other related fees.
6. A reserve worksheet shall be utilized and/or detailed rationale substantiating reserve levels shall be documented within the claim file.
G. Resolution of Claim
1. Within 10 working days of receiving medical information indicating that a claim can be finalized, the claims examiner shall begin appropriate action to finalize the claim.
2. Follow up finalization efforts shall continue and be documented at regular diary reviews until resolution is complete. 3. Settlement value shall be documented appropriately utilizing all relevant information.
4. Where settlement includes resolution of future medical for a Medicare beneficiary or an expected Medicare beneficiary, the settlement shall document the strategy to protect Medicare’s secondary payer status.
5. Pursuant to CCR15400.2, claim files with awards for future benefits shall be reviewed for administrative closure two years after the last provision of benefits.
H. Settlement Authority
1. No agreement shall be authorized involving liability, or potential liability, of PRISM without the advance written consent of PRISM. The member shall be notified of any settlement request submitted to PRISM.
2. The third-party administrator shall obtain the Member’s authorization on all settlements or stipulations in excess of the settlement authority provided in any provision of the individual contract between the Member and the claims administrator.
3. Proof of settlement authorization(s) shall be maintained in the claim file.
IV. LITIGATED CASES
The third-party administrator or self-administered entity shall establish written guidelines for the handling of litigated cases. The guidelines should, at a minimum, include the points below, which may be adopted and incorporated by reference as "the Guidelines".
1. The third-party administrator or self-administered entity shall promptly initiate investigation of issues identified as material to potential litigation. The Member shall be alerted to the need for in- #8..
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60 house investigation, or the need for a contract investigator who is acceptable to the Member. The Member shall be kept informed on the scope and results of investigations.
2. The third-party administrator or self-administered entity shall, in consultation with the Member, assign defense counsel from a list approved by the Member. Initial referral and ongoing litigation management shall be timely and appropriate. The third-party administrator or selfadministered entity shall maintain control of the ongoing claim activities.
3. Settlement proposals directed to the Member shall be forwarded by the third-party administrator, self-administered entity or defense counsel in a concise and clear written form with a reasoned recommendation. Settlement proposals shall be presented to the Member as directed so as to insure receipt in sufficient time to process the proposal.
4. Knowledgeable Member personnel shall be involved in the preparation for medical examinations and trial, when appropriate or deemed necessary by the Member so that all material evidence and witnesses are utilized to obtain a favorable result for the defense.
5. The third-party administrator or self-administered entity shall comply with any reporting requirement of the Member.
V. SUBROGATION
1. In all cases where a third-party (other than a Member employee or agent) is responsible for the injury to the employee, attempts to obtain information regarding the identity of the responsible party shall be made within 14 calendar days of recognition of subrogation potential.
2. Once identified, the third-party shall be contacted within 14 calendar days with notification of the Member's right to subrogation and the recovery of certain claim expenses.
3. If the third-party is a governmental entity, a claim shall be filed with the governing board (or State Board of Control as to State entities) within 6 months of the injury or notice of the injury. If the third-party is a nongovernmental entity, a complaint shall be filed in civil court within two years in order to preserve the statute of limitations.
4. Periodic contact shall be made with the responsible party and/or insurer to provide notification of the amount of the estimated recovery to which the Member shall be entitled.
5. If the injured worker brings a civil action against the party responsible for the injury, the claims administrator shall consult with the Member about the value of the subrogation claim and other considerations. Upon Member authorization, subrogation counsel shall be assigned to file a Lien or a Complaint in Intervention in the civil action.
6. Whenever practical, the claims administrator shall aggressively pursue recovery in any subrogation claim. They should attempt to maximize the recovery for benefits paid, and assert a credit against the injured worker’s net recovery for future benefit payments.
7. Member (and PRISM if applicable) approval is required to waive pursuit of subrogation or agree to a settlement of a third-party recovery. This approval shall be documented in the claim file.
In cases of self-administered entities, a process shall be documented noting the authority levels within the member organization to waive pursuit of subrogation or agree to a settlement of a thirdparty recovery.
VI. EXCESS COVERAGE
A. Claims meeting the definition of reportable excess workers’ compensation claims as defined by the Memorandum of Coverage Conditions Section shall be reported to PRISM within five working days of the day on which it is known the criterion is met. Utilize the Excess Workers’ Compensation First Report Form available through PRISM’s website.
B. Subsequent reports shall be transmitted to PRISM on a quarterly basis on all indemnity claims and on a semi-annual basis on all future medical claims or sooner if claim activity warrants, or at such other intervals as requested by PRISM, in accordance with Underwriting and Claims Administration Standards. Utilize the Excess Workers’ Compensation Status Report Form available through PRISM’s website, or a comparable form to be approved by PRISM. #8..
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61 C. Reimbursement requests shall be submitted in accordance with PRISM’s reporting and reimbursement procedures on a quarterly or semi-annual basis depending on claims payment activity. Utilize the Excess Workers’ Compensation Claim Reporting and Reimbursement Procedures available through PRISM’s website.
D. A closing report with a copy of any settlement documents not previously sent shall be sent to PRISM.
Following is the history of amendments to this document:
Amended: March 4, 1988
Amended: October 7, 1988
Amended: October 6, 1995
Amended: October 1, 1999
Amended: June 6, 2003
Amended: March 2, 2007
Amended: July 1, 2009
Amended: July 1, 2011
Amended: March 2, 2012
Amended: October 4, 2013
Amended: July 1, 2019
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62 Exhibit C
EWC Reporting
CSAC EXCESS INSURANCE AUTHORITY EXCESS WORKERS’ COMPENSATION CLAIM
REPORTING AND REIMBURSEMENT PROCEDURES
In accordance with the Conditions Section of the Memorandum of Coverage:
1. All Workers’ Compensation claims meeting the following conditions are to be reported to the PRISM within five (5) working days of the day on which it is known the criterion is met. a. Any occurrence for which total incurred (total paid to date plus remaining reserves) exceed 50% of the member’s SIR.
b. The reopening of any claim in which further award might exceed 50% of the member’s SIR.
c. Any occurrence involving:
• Death
• Injury to the spinal cord
• Amputation of a major extremity
• Serious head injury
• Severe burns
• Permanent total disability as defined by law
• An occurrence involving serious injury to two (2) or more employees
2. EIA has developed a First Report Form that requires narrative discussion of the pertinent issues. When properly completed this should eliminate the need to forward any file material to EIA.
3. Subsequent to reporting, additional information including a complete copy of the member’s claim file may be requested by the EIA at any time.
4. The EIA, at its own discretion, may become actively involved in the day to day handling of any claim.
5. Although the member’s third-party administrator should be performing all reporting, it is the ultimate responsibility of the member to report to the EIA.
6. Once total payments per occurrence exceed the SIR, the member or its third-party administrator shall submit a PRISM reimbursement request form summarizing the amounts paid for Indemnity, Medical, Vocation Rehabilitation and Expenses, a record of any dollars recovered for duplicate payments, and a data processing run that specifically includes:
a. Check or warrant number
b. Issue date
c. Payee
d. Paid Amount
e. Disability period or dates of service
f. Payment Type
After the initial reimbursement, subsequent reimbursement requests shall be submitted in the same manner as described above, on a quarterly or semi-annual basis depending on claim payment activity.
7. In accordance with the Conditions Section of the Memorandum of Coverage, no settlement, either Compromise and Release or Stipulation, may be entered into without the prior written consent of EIA.
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63 8. In the absence of full documentation of payments, the EIA will make partial reimbursements for those amounts in excess of the SIR for which valid evidence of payment has been provided, as outlined in paragraph 6 above. The balance of amounts to be reimbursed will be paid upon receipt of valid evidence of payment.
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SAMPLE STANDARD AGREEMENT
FOR CONSULTANT SERVICES
THIS AGREEMENT, made and entered into in the City of Modesto, State of California, this day of , 2022 (“Effective Date”), by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "City", and ___________________________, a California corporation, hereinafter referred to as "Consultant."
This Agreement is made with regard to the following recitals:
A. The City has determined that a Workers’ Compensation Claims Management Program is needed to process claims for the City.
B. Consultant represents that it is qualified, willing and able to provide the services to prepare said document(s).
NOW, THEREFORE, in consideration of this agreement, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:
1. SCOPE OF SERVICES.
Consultant shall undertake and complete the preparation of the scope of work as set forth and described in the RFP documents attached hereto and referred to as Exhibit "A" or "project". The Consultant shall perform the services as described in Exhibit "A" in a manner compatible with the standards of its profession, and shall produce a fully complete project that is acceptable to City.
2. TERM OF AGREEMENT.
This Agreement is effective for a term date of Month, Day, Year to Month, Day, Year, with the option to extend on an annual basis for up to three (3) additional years and will continue in effect until City's acceptance of and payment for all services #8..
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authorized by City and performed by Consultant, unless terminated earlier in accordance with the provisions of the termination clause in this Agreement.
Price increases for subsequent years shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one agreement year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Consultant(s) in writing, at least sixty (60) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.
3. COMPENSATION.
Consultant agrees to accept a sum not to exceed $XX AND XX/100 DOLLARS ($XXX,XXX.XX) as full remuneration for performing all services and furnishing all staffing and materials called for in Exhibit "A" and for performance by Consultant of all of its duties and obligations under this Agreement.
The Compensation shall be paid pursuant in the manner and at the times set forth below:
All work to be performed under this Agreement shall be billed at the rates set forth in Exhibit “B” attached hereto, Consultant shall submit monthly invoices to City which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any out-of-pocket, reimbursable costs paid by Consultant in connection with work performed on this project.
4. OBLIGATIONS OF CONSULTANT.
Throughout the term of this Agreement, Consultant shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business.
Consultant warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to provide the City with the services contemplated by this Agreement. Consultant further warrants that it will follow #8..
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the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.
5. PERFORMANCE BY KEY EMPLOYEE.
Consultant has represented to City that NAME, TITLE, will be the person primarily responsible for the performance of the services referred to in this Agreement.
City has entered into this Agreement in reliance on that representation by Consultant. Consultant therefore agrees that 100 percent (100%) or more of the time to be devoted to the project that is the subject of this Agreement will be that of the above-named person.
6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.
Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the City, and may be used by City as it may require without any additional cost to City. No reports shall be used by the Consultant for purposes other than this agreement without the express prior written consent of City.
Title to Data
If, as a part of the agreement, Consultant is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the originals of all such data generated under this agreement will be delivered to City upon the completion or termination of services under the agreement.
All materials, documents, data or information obtained from the City data files or any City medium furnished to Consultant in the performance of this Agreement will at all times remain the property of the City. Such data or information may not be used or copied for #8..
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direct or indirect use by Consultant after termination of this Agreement without written consent of the City.
7. NEWS AND INFORMATION RELEASE.
Consultant agrees that it will not issue any news releases in connection with either the award of this Agreement, or any subsequent amendment of or efforts under this Agreement, without first obtaining review and approval of said news releases from City through the City Manager.
8. INTEREST OF CONTRACTOR.
Consultant warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Consultant warrants that, in performance of this Agreement, Consultant shall not employ any person having any such interest. Consultant agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this agreement if so required at the option of City.
9. AMENDMENTS.
Both parties to this Agreement understand that it may become desirable or necessary during the execution of this Agreement, for City or Consultant to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original agreement prior to the performance of the additional work.
Until a change order is so executed, City will not be responsible to pay any charges Consultant may incur in performing such additional services, and Consultant shall not be required to perform any such additional services. #8..
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10. INDEPENDENT CONTRACTOR.
All acts of Consultant, its agents, officers, and employees and all others acting on behalf of Consultant relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of City. Consultant, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of City.
Consultant has no authority or responsibility to exercise any rights or power vested in the City.
No agent, officer, or employee of the City is to be considered an employee of Consultant. It is understood by both Consultant and City that this Agreement shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture.
Consultant, its agents, officers and employees are and, at all times during the terms of this Agreement, shall represent and conduct themselves as independent contractors and not as employees of City.
Consultant shall determine the method, details and means of performing the work and services to be provided by Consultant under this Agreement. Consultant shall be responsible to City only for the requirements and results specified in this Agreement, and, except as expressly provided in this Agreement, shall not be subjected to City's control with respect to the physical action or activities of the Consultant in fulfillment of this Agreement. Consultant has control over the manner and means of performing the services under this Agreement.
Consultant is permitted to provide services to others during the same period service is provided to City under this Agreement. If necessary, Consultant has the responsibility for employing other persons or firms to assist Consultant in fulfilling the terms and obligations under this Agreement.
If in the performance of this Agreement any third persons are employed by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, #8..
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discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the Consultant.
It is understood and agreed that as an independent contractor and not an employee of City neither the Consultant or Consultant's assigned personnel shall have any entitlement as a City employee, right to act on behalf of the City in any capacity whatsoever as an agent, or to bind the City to any obligation whatsoever.
It is further understood and agreed that Consultant must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Consultant's personnel.
As an independent contractor, Consultant hereby indemnifies and holds City harmless from any and all claims that may be made against City based upon any contention by any third-party that an employer-employee relationship exists by reason of this Agreement.
11. ASSIGNMENT.
Neither this Agreement nor any portion thereof shall be subcontracted or assigned without the express prior written consent of the City in each and every instance.
12. PATENT/COPYRIGHT MATERIALS.
Unless otherwise expressly provided in the Agreement, Consultant shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this Agreement. Consultant shall furnish a warranty of such right to use to City at the request of City.
13. NOTICES.
Any and all notices permitted or required to be given hereunder shall be deemed duly given and effective (a) upon actual delivery, if delivery is by hand; or (b) five (5) days after delivery into the United States mail if delivery is by postage paid registered or certified (return receipt requested) mail. Each such notice shall be sent to the parties at the address respectively #8..
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indicated below or to any other address as the respective parties may designate from time to time.
FOR Consultant:
Name:
Address:
Attention:
Phone: ( )
FOR CITY:
Name:
Address:
Attention:
Phone: ( )
14. INSURANCE REQUIREMENTS.
The Consultant shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the City as may be required by the Risk Manager of the City. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the City via PINS Advantage Insurance Program, for all of the following stated insurance policies. (a) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent consultants and subconsultants; products and completed operations; and/or professional liability. (b) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
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(d) Professional Liability (Errors and Omissions) Insurance with a minimum limit of $1,000,000 per claim, $2,000,000 policy aggregate. If coverage is on a claim made basis it shall be maintained for at least three (3) years following completion of the work.
If at any time any of said policies shall be unsatisfactory to the City, as to form or substance, or if a company issuing such policy shall be unsatisfactory to the City, the Consultant shall promptly obtain a new policy, submit the same to the Risk Management via PINS for approval and submit a certificate thereof as hereinabove provided. Upon failure of the Consultant to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the City, may be forthwith declared suspended or terminated.
Failure of the Consultant to obtain and/or maintain any required insurance shall not relieve the Consultant from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the Consultant concerning indemnification. The City, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation and Professional Liability. Consultant shall provide City with separate endorsements evidencing proof of the City’s additional insured status as to both the general liability and automobile liability insurance policies. The Workers' Compensation insurer shall agree to waive all rights of subrogation against the City, its agents, officers, employees, and volunteers for losses arising from work performed by Consultant for the City. In addition, Consultant shall provide City with a Workers Compensation subrogation waiver by way of a separate endorsement. The Consultant's insurance policy(es) shall include a provision that the coverage is primary as respects the City; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A: VII or with approval of the Risk Manager. The Consultant must deliver certificates evidencing existence of the insurance listed above to the City prior to the time the agreement is signed. #8..
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All endorsements referenced above must include the applicable policy number.
15. TERMINATION OF AGREEMENT.
Termination by City for Default of Consultant
Should Consultant default in the performance of this Agreement or materially breach any of its provisions, at its option, City may terminate this Agreement by giving written notification to Consultant. The termination date shall be the effective date of the notice. For the purposes of this section, material breach of this Agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Consultant, dishonesty or theft.
Termination by City for Convenience
TheCitymay also terminate theConsultant's performance underthe Agreement, eitherin whole orin part, at its own discretion, or when conditions encountered duringthe work make it impossible orimpracticable to proceed, or when theCityis prevented fromproceedingwith the Agreement by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the work for any reason. TheCityshall provide no lessthan ten (10) calendar days written notice of its intent to terminate the Agreement for convenience, and shall endeavor to provide the Consultant with consultation with the City prior to termination.
Termination by City for Lack of Budgeted Funds
The City may terminate this Agreement effective July 1 of any given year upon the City's determination to not appropriate sufficient funds for this Agreement for the ensuing fiscal year. In such event City shall give Consultant not less than 30 days written notice of termination.
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Termination by City for Change of Consultant's Tax Status If City determines that Consultant does not meet the requirements of federal and state tax laws for independent contractor status, City may terminate this Agreement by giving written notice to Consultant. The termination date shall be the effective date of the notice.
Post-Termination Procedures
If this Agreement is terminated pursuant to this Section, Consultant shall:
1. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, sub-consultants and agents are notified of such termination and act as specified in the notice of termination;
2. Terminate all orders and sub-consultants except as necessary to complete any portion of the work that is not terminated;
3. If directed in writing by the City to do so, assign all right, title and interest in sub-contracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such sub-consultants, but in no event shall recovery by any Consultant or sub-consultant include lost profits for portions of the work not completed or undertaken, including materials not delivered;
4. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates,summaries and such other information and material as mayhave been accumulated by the Consultant in performing the work whether completed or in process;
5. Settle outstanding liabilities and claims, subject to the approval of City;
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6. Complete performance of such part of the work as has not been terminated;
7. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the Work and/or property related to the work;
8. If City so requests, and at City's cost, Consultant shall provide sufficient oral or written status reports to make City reasonably aware of the status of Consultant's work on the project.
9. The Consultant understands and agrees that City may, in City's sole discretion, refuse to pay Consultant for that portion of Consultant's services which were performed by Consultant on the project prior to the termination date and which remain
unacceptable and/or not useful to City as of the termination date.
City will pay Consultant an amount based on the percentage of satisfactory work completed in accordance with the notice of termination. If the Agreement is terminated pursuant to the subparagraph entitled Termination by City for Default of Consultant, Consultant understands and agrees that City may, in City's sole discretion, refuse to pay Consultant for that portion of Consultant's services which were performed by Consultant on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date. The final payment to the Consultant after termination for convenience shall be limited to amounts due and owing under the Agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the work such as sub-consultant agreements or contracts for materials;
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b. The Agreement price allocable to the portion of the work properly performed or goods supplied to the work site by the Consultant as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the Consultant.
16. INDEMNITY.
The Consultant shall hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any act or omission of Consultant whether or not the act or omission arises from the sole negligence or other liability of City, or its agents, officers, and employees or volunteers relating to or during the performance of its obligations under this agreement.
Consultant's obligation to defend, indemnify, and hold the City, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for Consultant to procure and maintain a policy of insurance.
17. ENTIRE AGREEMENT.
This Agreement and its exhibits contain the entire understanding between Consultant and City. Additional or new terms contained in this Agreement which vary from Consultant's proposal are controlling and are deemed accepted by Consultant by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of #8..
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or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all the parties.
18. PARTIAL INVALIDITY.
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
19. WAIVER.
The waiver by any party to this Agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
20. AUDIT.
The City's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Consultant's charges to City under this Agreement.
Consultant agrees to retain reports, records, documents, and files related to charges under this Agreement for a period of four (4) years following the date of final payment for Consultant services. City's representative shall have the right to reproduce any of the aforesaid documents.
21. GOVERNING LAW.
This Agreement shall be governed according to the laws of the State of California.
22. HEADINGS NOT CONTROLLING.
Headings used in the Agreement are for reference purposes only and shall not be considered in construing this Agreement.
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23. COMPLIANCE WITH LAWS.
Consultant shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. Consultant shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.
24. CITY BUSINESS LICENSE.
Consultant shall have a City of Modesto business license. #8..
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attestation by its City Clerk under authority of Resolution No. 2022- adopted by the Council of the City of Modesto on the day of ,2022, and CONSULTANT, has caused this Agreement to be duly executed in duplicate as of the Effective Date.
CITY OF MODESTO, CONSULTANT, INC.
a municipal corporation a California corporation*
By ___________________________ By________________________________ JOSEPH P. LOPEZ, City Manager Name Title
By ________________________________
Name Title
ATTEST:
(Seal)
By ___________________________
DANA SANCHEZ, Interim City Clerk
Consultant’s Federal ID #XX-XXXXXXX
APPROVED AS TO FORM:
By ________________________________
JOSE M. SANCHEZ, City Attorney
APPROVED AS TO FORM:
By ________________________________
CHRISTINA D. ALGER,
Director of Human Resources (Risk)
* Corporations - signature of two (2) officers
required or one (1) officer plus corporate seal
* LLC - signature of two (2) officers required
Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor
required
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Athens Administrators, Inc.
P.O. Box 696
Concord, CA 94522
Specification No. 2021-44
Workers’ Compensation Claims Management Program
Proposal Opening Date: December 28, 2021, At 11:00 A.M.
City Clerk
City of Modesto
1010 10th Street, Suite 6600
Modesto, CA 95354
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ORIGINAL
Response to Request for Proposal (Specification No. 2021-44) Due December 28, 2021, 11:00AM
Prepared for
CITY OF MODESTO
Prepared by:
Third Party Administrator of Workers’ Compensation Claims 2552 Stanwell Drive
Concord, CA 94520
Kevin Cichurski, Director of Sales • Office – (925) 826-1103; Cell – (925) 822-7224 • [email protected] #8..
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City of Modesto
REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
FOR
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
Table of Contents Tab
Cover Letter 1
Proposal Acknowledgement 2
Pricing Schedule 3
References 4
Financial Interest Disclosure 5
Company History Statement 6
Minimum Requirements 7
Addenda Acknowledgement 8
Debarment and Suspension Statement 9
Specific Requirements 10
Programs 11
Third-party Administrator Questionnaire 12
Questionnaire Attachments
Organizational Chart 13
Concord Office WC Department Organizational Chart 14
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Athens Litigation Guidelines 21
Additional Response Attachments
Athens Administrators_ Self-Insured Administrators Certificate 2020_2023 22 Athens Administrators_CA DOI Independent Adjuster Lic._Exp. 05.31.2022 23 Athens Administrators_State of California Certificate of Status 24 Transition Plan Tracking_Timeline 15
Onboarding Checklist 16
Sample RMIS System Reports 17
Sample CalOSHA Reports 18
Sample Stewardship Report 19
Workers’ Compensation Claims Best Practices 20
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December 15, 2021
Carol Wattle, Buyer
City of Modesto
1010 10th Street, Suite 6600
Modesto, CA 95354
RE: Response to Request for Proposal (Specification Number 2021-44) For Workers’ Compensation Claims Management Program
Dear Ms. Wattle:
Athens Administrators, Inc., a local Bay Area California S Corporation of approximately 390 employees, is pleased to submit our proposal to provide Claims Management of Workers’ Compensation Benefits Including Managed Care & OSHA Reporting services for City of Modesto. We have read the City’s request for proposal and can comply with all the expectations stated within this document. We are confident in our ability to design and implement a program that will satisfy your specific needs and exceed your expectations. We also believe that we will be able to achieve significant reductions in the overall cost of your workers’ compensation program.
This will be accomplished through a high level of communication with your organization as well as applying unique approaches to claim administration that will be applied by experienced staff in a closely managed environment.
Athens Administrators has provided workers’ compensation claims services to self-insured public municipalities throughout California for forty-five (45) years. Since our incorporation in 1976, Athens Administrators has been a family-owned organization. Being privately held, we are able to provide exceptional customer service and have a tremendous amount of flexibility when it comes to developing and implementing programs for our valued client-partners.
We currently have Public Agency clients located throughout the State of California. Our Public Agency clientele include Cities, Transportation Districts, Counties, Park Districts, Fire Districts, Housing Authorities, School Districts, Utility Districts and Water Districts. Athens has a high level of expertise in providing service to California based Public Agencies.
Reasons to Partner with Athens
Athens constantly works to distinguish ourselves for service, innovation and results produced within the California marketplace. We work hard to be better than our competition. We believe that there are several key reasons why we are the best choice TPA for the City.
These include;
→ Value: It is important to offer a great product at a competitive price. Athens maximizes technology and we manage a very efficient company. This allows us to operate in a cost efficient way which allows us to deliver great service at the most competitive prices. → Service/People: The key to successful TPA services is the people who work the claims and that interact with injured workers on a daily basis. Athens’ core business model is to take care of our people and to create an environment that attracts and retains the very best. We have been recognized as a Best Place to Work in the San Francisco Bay area (13) times since 2005. Our staff is stable and happy and they take great care of our clients.
Many TPA’s will claim to “have a great culture”, but only Athens has proof! #8..
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→ Communication: Through the life of a claim communication is crucial. Outside of the conventional methods of communication; phone calls, email and letters, Athens has recently released an outstanding new tool; client claims app and direct text messaging. In today’s fast paced world this is a must have. To date it has been well received by our early adopting clients.
→ Results: TPA’s are regularly audited by clients, reinsurance carriers and by the State. We are proud of the results that we have achieved over the years. In our latest audit, three of our California Workers’ Compensation locations (Concord, Sacramento and Orange) were audited by the Division of Workers’ Compensation. In all three instances we received exceptional audit results. We believe that this points to the consistently high quality claim administration that occurs throughout our entire company. In fact we have passed every audit conducted by the State since our foundation in 1976! → Transparency: Athens provides detailed pricing for all services. There are no hidden or unknown fees.
We have read and understand the entire request for proposal document. Athens Administrators intends to adhere to the provisions described within the RFP and would commit to enter into a binding contract. We have no conflicts of interest that would limit our ability to provide the requested services. We agree to be bound to the terms of our proposal and offer for a period of (120) one-hundred twenty calendar days following the close of the RFP on December 28, 2021, 11:00 AM. Lastly, we have received and included signed copies of all city issued addendums to this RFP as well as attached all applicable licenses to operate and do business in California.
Our core team consists of myself as President, Doug Gibb, EVP Workers’ Compensation Claims and Jeanette Mason, Claims Director. Kevin Cichurski, Sales Director, will be the main contact person for the RFP solicitation process and can be reached at Office (925) 826-1103, Cell (925) 822-7224, Fax (925) 521-8509, via email at [email protected] or at 2552 Stanwell Drive, Concord, CA 94520.
We understand that going through a RFP process may be challenging, but if selected, you can be assured that Athens Administrators will do everything possible to make the transition as seamless as possible for not only the City of Modesto, but also for your injured workers. You will have my full support and commitment that Athens Administrators will deliver as promised and I will always be available directly to respond to any problems or concerns you may have. I will also be the individual responsible for contractual terms outlined in our proposal. Please feel free to contact me directly to discuss our proposal. I can be reached at (925) 826-1100 or toll free 866-482-3535 extension 1100, Fax (925) 609-5401, email [email protected].
Best Regards,
James R. Jenkins, President
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REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
11 REFERENCES
All proposers must provide a list of five (5) current or former clients in the area provided below, identifying prior experience with the same type of services requested by the City under Scope of Work. References shall have similar volume and requirements to those outlined in these specifications, terms and conditions.
Proposer’s failing to provide references shall be deemed unacceptable.
The City may contact some or all of the references provided in order to determine the Proposers’ performance record on services similar to that described in this proposal. The City reserves the right to contact references other than those provided in the response and to use the information gained from them in the award process.
Company Name: East Bay Regional Park District
Address: 2950 Peralta Oaks Court
City, State, Zip Code: Oakland, CA 94605
Contact Person: Sean Donnelly, Risk Management
Email Address: [email protected]
Telephone Number: (510) 544-2171
Type of Business: Public Agency
Date of Service: 2012 - present
Annual Contract Value $243,000
Company Name: City of Stockton
Address: 400 E Main Street, 3rd Floor
City, State, Zip Code: Stockton, CA 95202
Contact Person: Timothy Claiborne, Risk Manager, Safety Officer Email Address: [email protected]
Telephone Number: (209) 937-8618
Type of Business: Public Municipality
Date of Service: 2018 - present
Annual Contract Value $705,223
Company Name: County of Marin
Address: 3501 Civic Center Drive
City, State, Zip Code: San Rafael, CA 94903
Contact Person: Karen Shelar, Risk Manager
Email Address: [email protected]
Telephone Number: (415) 473-6445
Type of Business: Public Agency
Date of Service: 2019 - present
Annual Contract Value $342,000
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REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
12 Company Name (Proposer): Athens Administrators, Inc.
REFERENCES-CONTINUED
Company Name: County of Solano
Address: 675 W. Texas Street, Suite 1800
City, State, Zip Code Fairfield, CA 94533
Contact Person: Melissa Tharp, Risk Analyst
Email Address: [email protected]
Telephone Number: (707) 784-6186
Type of Business: Public Agency
Date of Service: 2015 - present
Annual Contract Value $464,000
Company Name: City of Ventura
Address: 501 Poli Street, Suite 210
City, State, Zip Code Ventura, CA 93001
Contact Person: Lisa Oland, Risk Manager
Email Address: [email protected]
Telephone Number: (805) 654-7760
Type of Business: Public Municipality
Date of Service: 2017 - present
Annual Contract Value $223,000
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Company History Statement
Foundation of Athens Administrators
Founded in 1976, we have delivered over 45 years of measurably outstanding service and results.
We provide third party workers’ compensation, liability, and managed care services to a variety of organizations. Engaged, effective and constantly evolving, Athens Administrators offers companies an industry leading claims administration partner as committed to their success as they are. We are real people delivering real results, offering our clients expert guidance with a personal touch as we help them navigate the many complexities of the claims administration landscape.
Athens Administrators is wholly owned, private, “S” type corporation owned by Jim Jenkins, Chairman and James Jenkins, President. Athens Administrators is a third generation, familyowned Northern California based business. In 1976, Athens Administrators was established to begin servicing self‐insured, workers’ compensation clients. Since that time, we have consistently grown and expanded. Today we have 380 employees in our organization and manage tens of thousands of open claims encompassing $2.5 billion in total incurred, with a significant amount of public entity experience that includes the administration of claims that involved LC 4850 benefits. Athens maintains four (4) workers’ compensation office locations within California (Concord, Orange, Agoura Hills and San Diego).
Mission
The Mission of the Athens brand is to partner with clients to create specialized solutions that deliver measurable results, saving our clients time, money, and heartache in the process.
Vision
The Vision of the Athens brand is to become a model for a highly effective, industry leading claims administration organization that is valued and admired for both the results it delivers to customers and the positive impact it has on employees, the industry, and the community. We are committed to doing a great job and exceeding expectations at all levels of the Company, for every client.
Core Values
We believe what sets us apart as an employer and service provider is our Core Values:
- Commitment to Service
- Commitment to Results
- Honesty and Integrity
- Caring Family Culture
They drive our culture, and our culture drives our business to be successful. #8..
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Philosophy & Approach
Athens Administrators’ philosophy is to build strong, long-term partnerships and provide the highest level of claims administration services for our clients. Our focus is to always be excellent in everything we do. We believe in:
Partnership – We support our clients’ objectives and philosophies by setting goals and regularly communicating with the objective of never surprising our clients. We measure our performance and frequently report back. We are always accountable for our actions.
People – The people at Athens drive results for our clients. We attract the highest caliber staff and equip them with all of the necessary resources to succeed. Technology – We continually invest in systems to provide reliable data, which enables all stakeholders to make powerful decisions.
Service –The key to our success is a sense of urgency to constantly deliver exceptional service to our clients through professionalism, communication and quality.
Problem Solving – We always ask questions and take the next logical steps. We don’t stop at barriers, we keep moving ahead until we can provide a solution. Maximum Cost Savings – We achieve maximum cost savings by focusing on return to work, reducing litigation, curtailing medical costs and expediting claim closure.
Our approach is to partner with our clients to provide service that translates into lasting benefits.
Through innovative methods and technologies, we bring solutions to life in ways that save our clients time, effort and money.
By creating close relationships with our clients, we can understand exactly what they need and how best to deliver solutions for their unique business challenges. And we foster an open, collaborative work environment that makes us a team working toward the same goal. #8..
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REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
COMPANY HISTORY STATEMENT
Your company shall have been in business for a minimum of three (3) continuous years (immediately prior to the time of the RFP submittal date) providing the types of services requested in this RFP.
The company history statement shall be prepared on company letterhead and provided with the proposal submittal.
Please see included Company History statement included as separate attachment.
MINIMUM QUALIFICATIONS
Minimum Qualifications are mandatory for proposal consideration, and at a minimum shall include the following:
Financial Stability (Provided in a sealed separate envelope):
Proposers shall submit a copy of their company’s most recent professionally prepared Financial Statements (Income Statement and Balance Sheet). These statements, if un-audited, shall be accompanied by a cover letter that states the name and title of the preparer, the basis of the financial statement presentation (cash or accrual) and whether these statements have been prepared in accordance with Generally Accepted Accounting Principles for the most recent fiscal year end of the proposer. Audited financial statements shall be submitted in their entirety, including the auditor’s opinion and notes to the financial statements.
Please see included Financial Statements in sealed separate envelope filed with original proposal document.
A separate document shall be provided and signed under penalty of perjury by the proposer’s financial officer or owner that explains the proposer’s inability to provide statements for a fiscal period that ended at least eight (8) months before the required date of submittal, if such inability exists.
One complete set of Financial Statements shall be submitted in a sealed separate envelope filed with the (original proposal document), marked with the following:
FINANCIAL STATEMENTS
NAME AND ADDRESS OF PROPOSER
SPECIFICATION NO. RFP 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
PROPOSAL OPENING DATE: TUESDAY, DECEMBER 28, 2021 AT 11:00 A.M. 17 #8..
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18 REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
ADDENDA ACKNOWLEDGEMENT
The proposer shall check the RFP listing on the City’s Planet Bid website, periodically, and in any event, no later than the day prior to the proposal opening to obtain any addenda information. The changes identified in the addenda modify this request for proposal and specifications. The addenda now become a part of this request for proposal and specifications. Signing the Proposal on the signature portion thereof, the proposer is acknowledging that the proposer has confirmed that he or she has received all addenda issued for this request for proposal and specifications, and has included costs for such in the proposal submitted. Failure to list and acknowledge all addenda numbers may cause the proposal to be considered non-responsive. Do not attach any of the addenda to this sheet nor include them with the proposal.
This document is only required to be returned should addenda have been issued.
The Proposal is submitted with respect to the changes to the request for proposal and specifications included in addenda numbers:
LIST ALL ADDENDA NUMBERS: ____________________________________________________ Company Name (Proposer):
Addenda #1
Athens Administrators, Inc.
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TECHNICAL RFP RESPONSE City of Modesto
Specific Requirements
REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44
WORKERS’ COMPENSATION CLAIMS MANAGEMENT PROGRAM
SPECIFIC REQUIREMENTS
Proposer shall provide detailed information on the following:
Contractor shall be licensed with the California Department of Industrial Relations, Self-Insurance Plans (SIP). A copy of the license shall be provided to the City as part of the proposal response.
We have included within our proposal submission the below documents:
1. California Department of Industrial Relations License to Administer-Expiration June 30, 2023
2. Department of Insurance State of California Claims Adjuster License-Expiration May 31, 2022
3. California Secretary of State Certificate of Status: Active (Good Standing) Proposer shall list their physical office location address, City and State, administering the City’s claims.
If the successful proposer has multiple adjusting locations the City reserves the right to choose which office will adjust the City’s claims.
Athens Administrators proposes that the City’s claims be administered from our Corporate Headquarters in Concord, CA.
Physical address:
Athens Administrators, Inc.
2552 Stanwell Drive
Concord, CA 94520
Phone (866) 482-3535
Mailing address:
Athens Administrators, Inc.
P.O. Box 696
Concord, CA 94522
Phone (866) 482-3535
Because of the need to be fully aware of and compliant with the terms of SB899, Contractor shall have a minimum of five (5) years’ experience working with public agencies with public safety employees of combined size equal to the City. The experience shall be within the past eight (8) years. Please provide detailed history.
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Since 1976, for the past 45 years, Athens Administrators has provided claims administration services to public agencies, including cities, counties, and fire districts, throughout California that includes the administration of claims that involved LC 4850 benefits and the providing of benefits to public safety officers. In summary:
• We understand public safety officer presumptions
• We timely and effective administer Labor Code 4850 benefits • We provide high-level stewardship reports that analyze your program on a fiscal year basis • Understand that we are an extension of our public entity clients • Show complete transparency with the public funds that you have entrusted us with To demonstrate our experience, below is a sample listing of self-insured, public agency clients with public safety employees, for whom Athens provides workers’ compensation claims administration services. The scope of work performed for each is Workers’ Compensation Claims Administration, Managed Care, Bill Review and Utilization Review. In addition to the references we have provided, if the city would like to contact any of the below clients, we would be happy to provide their contact information.
Client Claims (annually) Inception
Bay Area Rapid Transit District (BART) 624 2005-current Ventura County Self-Funding Authority (VCSSFA) 555 2019-current County of San Mateo 554 2017-current
City of Stockton 296 2018-current
Fire Agencies Self-Insured System (FASIS) JPA (191 Fire Districts) 261 2005-current County of Imperial 247 2015-current
County of Solano 226 2015-current
City of Ventura 80 2017-current
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TECHNICAL RFP RESPONSE City of Modesto – Programs Response REQUEST FOR PROPOSAL AND SPECIFICATIONS NO. 2021-44 WORKERS’
COMPENSATION CLAIMS MANAGEMENT PROGRAM PROGRAMS
Proposer shall provide a detailed overview of their firm’s processes on the following programs:
A. Claims Management
A Stewardship Approach
Athens takes a “Stewardship” approach to managing claims programs. A true partnership between the customer and the administrator is imperative to the successful management of a workers’ compensation program. This relationship takes a high level of communication, trust and a lot of work.
Our process is interactive and dynamic. We monitor our performance on an on-going basis, analyze effectiveness and review our findings to identify accident cause and source. We present the hard data found in the format of our Sample Stewardship Report to our customers who can then benchmark results and determine strategies to optimize their unique programs.
We also bring to each of our client’s programs state-of-the-art claim cost containment techniques at the onset of all claims. These techniques and standards of performance include thorough investigation of all questionable claims, timely and accurate provision of benefits, management of medical treatment, using the most cost-effective application of all managed care disciplines, litigation management, negotiation/resolution of claims and a strong commitment to returning the employee to work.
Our “Stewardship” approach ensures that adjusters are focused on identifying key issues that have a large financial impact on the overall claim and proactively utilize all available internal and external cost containment resources to address and resolve these issues in an expedient fashion.
The key to good claims management, avoiding penalties and keeping deadlines, is an effective diary system that enables an adjuster to properly manage each claim in an expedient manner.
Adjusters are required to review open Indemnity claims at least every 30 days. Our RIMS system has an automated diary system that is utilized by all our staff. A detailed list of diaries is displayed each time a user logs onto the computer. The automated diary system sets the adjuster diary for 28 days and a Supervisor Diary for 30 days from the date the claim is entered.
A second manual diary is also maintained. At a minimum the claims unit supervisors are required to review open Indemnity claims every 90 days.
Companywide Claims Closing Incentive Program in Place – Fraction of the Action We recognize, as do our clients, that "the longer claims stay open, the more they will cost". As such, we have developed an internal recognition incentive program for our staff called Fraction #8..
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of the Action, which rewards our claim staff up to two extra paid vacation days per quarter if they meet their claim closing goals and their fines and penalties goals. Specifically, for every new claim entered in each quarter, they must close at least 1.25 claims. Everyone participates in this program and bonuses are granted for both individual and team results. Thus, eligibility extends from the mail room staff through the unit supervisors. Competition and peer recognition is accentuated by quarterly posting of individual and team performance and results.
This process is closely monitored and controlled to prevent premature closings.
Lastly, it is our commitment to address the concerns and recommendations from the City in an immediate fashion. We believe that the staffing model provided to the City will allow this, since at the very minimum the City will have a one point-contact person by way of designated supervisor, along with the rest of our executive team if needed.
B. General Program Administration
Athens Administrators understands that the City has issued this request for proposal for a thirdparty administrator to provide workers’ compensation claims management services. As we have provided these services for 45 years, Athens is uniquely qualified. In reading the City’s requirements and reviewing the project schedule, we are able to meet them as stated.
Athens also understands that if we earn the City’s business, we become an extension of the City responsible for its funds and well-being of its employees.
The claims process has become very complex and highly regulated. The focus of our claims team is to manage the claim, control costs, and bring the claim to quick resolutions. To do this there must be a plan and a way to track the process. This is accomplished through detailed workflows, innovative programs, and a tight diary system.
We understand that our role includes cost savings for the City through claim closures, medical management, and managed care cost containment and litigation management.
As stated previously, Athens utilizes a “Stewardship” approach to managing claims programs.
A true partnership between the customer and the administrator is imperative to the successful management of a workers’ compensation program. This relationship takes a high level of communication, trust and a lot of work. Our hands-on team approach is what has led to the development of many strong partnerships over the years. This involves partnering with our clients to assess specific needs and to then develop customized claims management programs that are designed to combat claim exposures and costs. The process is interactive and dynamic.
We monitor our performance on an on-going basis, analyze effectiveness and review our findings to identify accident cause and source. We present the hard data to our customers who can then benchmark results and with our assistance, determine strategies to optimize their unique programs.
Our hands-on team approach is what has led to the development of many strong partnerships over the years. This involves partnering with our clients to assess specific needs and to then #8..
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develop customized claims management programs that are designed to combat claim exposures and costs. The key elements of the program are:
Define - Learn and evaluate needs of the customer
Perform - Deliver and be accountable to expectations
Measure - Analyze effectiveness
Report – Present hard data
Recommend – Suggest proactive strategies to improve results The process is interactive and dynamic. We monitor our performance on an on-going basis, analyze effectiveness and review our findings to identify accident cause and source. We present the hard data found in the format of our Stewardship Report to our customers who can then benchmark results and determine strategies to optimize their unique programs.
We also bring to each of our client’s programs state-of-the-art claim cost containment techniques at the onset of all claims. These techniques and standards of performance include thorough investigation of all questionable claims, timely and accurate provision of benefits, management of medical treatment, using the most cost-effective application of all managed care disciplines, litigation management, and a strong commitment to returning the employee to work. Our clients are not just the employers but also the employees who have sustained industrial injuries or illnesses while working within the course and scope of their employment.
We focus upon promptly providing these employees the benefits due to them and maintaining open and on-going communication during the course of their claims. Programs that provide this positive approach will produce lower overall workers’ compensation costs, including significantly reduced litigation rates. Our “Stewardship” approach ensures that the examiners are focused on identifying key issues that have a large financial impact on the overall claim and proactively utilize all available internal and external cost containment resources to address and resolve these issues in an expedient fashion.
Additionally, Athens Administrators, along with the City’s input, will develop customized Special Account Instructions. These standards will provide the general approach to our claims administration for the City, which will include instructions and policies on processing all claims.
Athens Administrators has approximately 60% of our business in the public sector arena. With Athens Administrators being so involved and familiar in this arena, we are confident that we would be able to create a successful and cost-effective program for the City and we are uniquely suited to address the specific challenges within the public entity industry.
Specifically:
Understand that we are an extension of our public entity clients Show complete transparency with the public funds that you have entrusted us with. #8..
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We timely and effective administer Labor Code 4850 benefits We provide high-level stewardship reports that analyze your program on a fiscal year basis We understand public safety officer presumptions
C. General Claims Administration
Our approach revolves around the life of the claim. Elements include:
Claim Notification
Claims are reported promptly and can be done via phone, fax, e-mail, or the web.
Initial Supervisor Review
Immediately upon receipt, the claims supervisor reviews the claim to identify any potential red flags and to provide initial direction to the claims examiner.
Claim Set-Up
The claim is set up in our SIMS claims system. Custom codes are used for each client to capture required information.
Initial Investigation – 3 Point Contact
The initial investigation is critical to learn the facts of the claim, to confirm coverage, obtain medical information, and to identify any issues or red flags, including:
Inconsistencies with the claim
Subrogation potential
Witnesses
Pre-existing conditions
Nature or extent of injuries
Lost time and available modified work
The initial contact with the injured worker allows the examiner to establish a connection, provide contact information, answer questions, and limit the risk of litigation.
ISO Claim Search
All indemnity claims are submitted to ISO when the claim is received. Subsequent submissions are done every 6 months.
Initial Claim Evaluation and Reserve Analysis
Reserves are based on all information available and reflect the probable ultimate cost of the claims. Reserves are determined by the examiner with oversight and approval by the supervisor.
Compensability Determination
A decision to accept, delay or deny the claim is made within 14 days. Claims placed on delay are reviewed by both the examiner and the supervisor every 30 days until a compensability decision is made. Final decisions are reviewed first with the client.
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Determination of Work Status/Availability of Modified Work Communication with the employer and coordination of benefits is critical. The examiner facilitates the process to notify the medical provider of modified work and obtain work restrictions.
Timely Delivery of Benefits and Notifications
Appropriate benefits are provided timely with required notices. A customized “Care Card” is sent to the injured worker.
Diaries Are Established and Maintained
Diaries are the key to timely claim resolution and lower costs. Automatic diaries for the examiner and supervisor are set and are updated and maintained throughout the life of the claim.
On-Going Communication with All Parties
The examiner will provide regular information and status to the employer and maintain contact with the injured worker while off work.
Document Management, Record Keeping, Reporting
All claim documents are reviewed and approved. They are electronically attached to the claim in our claims management system. Data and information is collected and entered into the claims system. All transactions are maintained for audit purposes. Regular, detailed notes are entered into the system by the claims team. Individual claims reports are provided as requested to the client.
Continuing Return to Work Coordination
The examiner works closely with employer contacts, including Human Resources and Payroll, to coordinate benefits and to facilitate the injured employee’s return to work.
Medical Management
The claims team obtains regular status from the treating doctor and monitors all medical treatment. Medical treatment plans are reviewed for reasonableness. Utilization Review is performed when appropriate. The examiner manages the Nurse Case Manager and schedule QME and medical legal evaluations. All medical bills are submitted for Bill Review. The examiner monitors the Prescription Drug Card and drug usage.
Investigation
The examiner constantly reviews the claim and will recognize any red flags that might occur.
A referral to an investigator will be made if needed with client approval. The examiner will refer the claim to the Special Investigation Unit if there is any suspected fraud.
Vendor Management
The claims team reviews all vendor services and approves all invoices. All bills and invoices are reviewed before being paid.
Litigation Management
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settlements.
Continued Claim Review with Timely Accurate Reserving
Subsequent reviews are performed every 60 days by the examiner and every 90 days by the supervisor. Reserves are adjusted, if necessary, as the case develops.
Permanent Disability
The examiner strives to return the injured worker as soon as possible to pre-injury status. If there are permanent restrictions, they will evaluate the level of permanent disability, identify apportionment, and seek contribution from third party co-defendants.
Settlement and Claim Resolution
Each case is evaluated for settlement potential and value. Authority and approval are provided by the supervisor and client at agreed upon authority levels. The examiner negotiates nonlitigated cases.
Potential Future Medical Award
Claims with ongoing Future Medical Awards will remain open as long as the injured worker utilizes medical treatment. These claims will continue to be closely monitored. Treatment plans will be reviewed, and Utilization Review will be performed when appropriate. There are continued efforts to settle these claims.
Subrogation Efforts
The examiner identifies potential subrogation and seeks recovery from responsible third parties.
Excess Reporting
Claims are monitored for excess policy thresholds. The examiner reports directly to the appropriate excess carrier.
Claim Closure
Once all claim issues have been resolved and payments made, the claim will be promptly closed.
Excess Reporting
The reporting of potential excess cases to the excess carrier is typically based on our client partner’s requirements within the Scope of Service along with the excess carrier’s requirements. Typical reporting requirements followed by our examiners include:
a. when a total reserve for the occurrence exceeds 50% of the City’s SIR
b. when the re-opening of any claim in which further award might exceed 50% of the City’s SIR
c. when any occurrence may involve:
• fatality
• brain injury
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• paraplegics and quadriplegics
• injury to the spinal cord
• amputation of a major extremity
• serious health injury
• serious burns, defined as 2nd or 3rd degree burns involving 25% or more of the body
• permanent total disability as defined by law possible disability of more than nine (9) months
• an occurrence involving serious injury to two (2) or more employees
Claims are monitored for excess policy thresholds and our examiners report directly to the carrier and document the file.
D. Accounting Control
Bank account setups, reconciliations, deposits, and cash disbursements are managed by Athens Administrators' Finance department and are segregated from the Claims department. A separate funding account is utilized for each client to pay claim benefits. Funds are not commingled. To ensure proper segregation of duties, Finance employees who are responsible for bank account setup do not have access to enter payee data, modify payment batches, or print checks.
Two types of bank accounts are utilized to fund benefit payments. If the client elects to establish their payment registers are typically provided to the client as requested.
Alternatively, the client may request that Athens Administrators establish a funding account with the client providing funds for deposit into that account. Athens Administrators' Finance department sets up, reconciles, and manages all funding accounts.
Signature cards for both types of accounts are completed. Athens Administrators has multiple signers, and every check has at least two signatures.
Bank Account Management and Monitoring
Athens Administrators provides each client with system-generated activity reports, including payment registers and financial reconciliation reports. The frequency and distribution of these reports is determined by each client.
If the client utilizes their own bank account, Athens Administrators' Finance department provides payment information to assist them with their own reconciliation. If Athens Administrators maintains a funding account for the client, the timeframes, and procedures for funding these accounts are agreed upon with the client. Funds are received either by check or electronic transfer. We recommend a funding level of twice the average monthly payout. This enables Athens Administrators to continue paying benefits into the second month while the account is replenished for the prior month. Additional requests for funding are made in the event of a large payment or when the account balance drops below the required funding level.
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benefit payments are automatically issued using the client's bank and check information.
Payment Authority
All claim payments are made using the claims management system. Users may enter payments subject to their individual payment authority level. Payments can also be scheduled to recur at specific date intervals subject to the same rules. Payments exceeding an individual user authority level must be entered by another user with higher authority as assigned in system maintenance. Each payment is automatically processed at the time of entry and must be verified before it will be saved. There must be adequate reserves on the claim, the payment category must match the reserve category for that claim, and service dates must be valid. Each payment is automatically searched against a database in the system for OF AC compliance and duplicate payments. Payments can only be made to the claimant, a beneficiary, or a previously entered vendor. Payments can only be made from bank accounts assigned to the client and to that claim.
All payment transactions are dated and identify the user who entered the payment. Payments cannot be deleted and the date and number of payments cannot be edited. Payments can be transferred from one claim to another by users with system authority. The event table maintains a record of all transfer transactions. A payment comment can be added to each claim to alert the payer of pertinent information.
Payments can be entered or approved in the claims management system by the claims staff according to authority levels. Payments over $10,000 must be entered by a supervisor.
Payments over $25,000 must be entered by a division manager. Payments over $100,000 must be entered by the Director. Payments over $300,000 must be entered by the EVP, Workers’ Compensation.
Payments can be entered manually or imported through electronic interface. Payments entered manually are validated by the system at the time of entry for the user's authority level, adequate claim reserves, and active vendor. Payments that are received electronically are uploaded into a payment module that automatically performs the same validation .
After payments have been entered, Athens Finance department performs the payment processing function in the claims management system. Each funding account is reviewed by a Finance representative to ensure that adequate funds are available. A formal check for adequate reserves, payment authority, and vendor validation is performed during payment processing after which the payments are changed to a ready to print status.
All payments are saved within the claims management system. Each payment identifies the claim, payment information including check number, amount, date and payment type, and vendor or payee information. System generated reports are provided to the client and utilized by Athens Administrators staff to reconcile against the claim and the funding account.
When requested by the client, payment information is provided electronically to the bank for positive pay programs and possible fraud detection. These electronic files are provided daily using security protocols required by each bank.
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E. Medical Administration
Cost Containment Services
Our cost containment and medical management programs are offered through Athens Managed Care, Inc. (AMC). We created Athens Managed Care so that we could help provide the highest quality of proactive management of our Workers’ Compensation cases and to help lower claim costs while delivering improved health results for patients.
Athens Managed care offers:
• Experienced Managed Care Team
• Fully Integrated with Claims Systems
• Complete Transparency with Bill Review, Claims and Case Management • Aggressive Claims Management Strategies
• Client Specific Criteria Development
• Highly Efficient Referral Process
• Highest Level of Timeliness, Communication and Accuracy Athens Managed Care services include:
• Bill review
• Utilization review
• Nurse case management
• Pharmacy benefits program
• MPN, PPO networks
• DME networks
• Private investigation
• Radiology network
• Copy services
• Transportation and translation services
The claims team obtains regular status from the treating doctor and monitors all medical treatment. Medical treatment plans are reviewed for reasonableness. Utilization Review is performed when appropriate. The examiner manages the Nurse Case Manager and schedule QME and medical legal evaluations. All medical bills are submitted for Bill Review. The examiner monitors the Prescription Drug Card and drug usage.
Bill Review (Organization Owned)
Our bill review service operations are not run in the traditional manner where either service is done in-house by leasing software or service bureau. We employ a unique hybrid model that we feel maximizes savings, increases turn-around time and provides our clients with the best possible outcomes.
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Currently, AMC, Inc.’s employees total (14) fourteen. All of our staff is experienced in workers’ compensation bill review rules and regulations. Continuing education is constantly being provided and our new hires go through an extensive training program.
Professional qualifications and major job responsibilities of bill review staff include:
a. Administrative staff
All managed care components of the City’s program will be overseen by Athens Managed Care Cost Containment Director, Leann Farlander. She has 24 years of workers’ compensation medical bill review experience and will work closely with the bill review staff. Leann will be tasked with monitoring your program to ensure that we producing the best possible outcomes and achieving the highest level of savings. b. Review staff
All bill review staff dedicated to the City’s account will have at least 5 years of workers’ compensation experience.
c. Provider inquiries staff
The provider inquiries staff is required to have 3 years of workers’ compensation experience, great communication skills and the ability to navigate challenging provider calls.
d. Auditing staff
The auditing staff is required to have 5 years of workers’ compensation experience as they are the most experienced. They have a great understanding of the CA official medical fee schedule and a thorough knowledge of the state’s regulations.
Athens Managed Care, Inc. has a partnership with Accuro Solutions to provide medical bill review, state reporting and PPO networks. All of these services are overseen by Athens Managed Care. This unit is tasked with monitoring the work product, interfacing with our clients and guaranteeing that our program standards are adhered to.
Our software is utilized nationally throughout a wide variety of organizations. The flexibility of this software allows for unique customization to meet the needs of our clients.
We believe that the seamless integration between the claims team and the bill review analyst is invaluable creating an overall ease to the process. The claims team can easily access the resources they need to get things completed in an efficient, expedited manner.
Athens Administrators will ensure that medical bills are reduced to the Official Medical Fee Schedule rates established by the Administrative Director of Workers' Compensation.
Athens Administrators has flexibility and options when it comes to choosing your PPO Networks for Bill Review purposes. We utilize multiple PPO networks, such as Blue Cross and First Health. Our bill review software is state-of-the-art software that is updated on a regular basis to reflect current fee schedules and PPO networks. The medical bill review software system is used to detect a broad range of questionable billing practices, excessive and duplicate charges, over-utilization, and unnecessary services. #8..
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Our qualified trained staff reviews each bill and medical report to determine appropriateness of treatment and to ensure provider compliance with fee schedule ground rules.
Our Cost Containment Program incorporates multiple strategies to control costs, as follows:
• Before costs are incurred: through pre-authorization of inpatient and outpatient treatment plans, according to guidelines and channeling to network providers whenever possible.
• During the life of the claim: by channeling specialty care to network providers, when possible, within the confines of the workers’ compensation statute, early identification of red flags, and through concurrent review of treatment plans against medical necessity and appropriateness guidelines and length of stay/treatment criteria. • Retrospectively: through comprehensive fee schedule audit procedures and application of workers’ compensation network discounts (when applicable).
Athens Administrators utilizes the claims software SIMS and we currently have an EDI established for bill review data exchange. Athens Managed Care (AMC) can accept paper or electronic provider bills. All bills are sent to our main mailroom for preparation and scanning.
Once they are scanned the bills are routed to the owning examiner. The examiner then determines if the bill is payable and routes it to Athens Managed Care. A file is created daily and uploaded for processing nightly. All paper bills are converted to an electronic format and OCR is used when processing.
The City will be provided quarterly and monthly bill savings reports in your desired format.
Also, Generate Explanations of Reductions (EOR) containing all required information will be produced for every provider bill that is processed.
Any bill that is not considered your standard medical i.e. physical therapy, chiropractic bill is given special handling and is routed to a more experienced analyst for processing.
Special handling bills are listed below:
• Surgery bills
• In/Out patient hospital bills
• Med-legal
• High level office visits
• By report codes or unlisted CPT codes
• OMFS exempt facilities/services
• Hearing aides
• Air Ambulance
• Critical acute care facilities
Turn-around times are as follows:
• Standard bills: 2-3 business days
• Hospital bills: 5-7 business days
• Negotiations: 3-5 business days
• Complex surgery bills: 5-7 business days
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• Med-legal bills: 3-5 business days
Every bill is date stamped when it is received and that is captured in the bill review system.
There are several turn-around reports that we generate to ensure timelines are met.
Our bill review system has the ability to identify duplicate bills and not issue over payments.
There are numerous data elements: patient name, claim number, DOS, CPT code billed, dollar amount, provider Tax ID#, ICD.9 codes that are crossed checked before a payment recommendation is made. This process ensures that duplicates are zeroed out and no allowance is made
Procedures for handling pending payments with no provider in the system If a provider is not in the bill review system it is placed in pend status and a vendor add request is sent to the claims administrator. We have a dedicated person who performs this task. They obtain the W9 and then add the provider to the daily transfer file. Once the file is uploaded the bill is un-pended and reviewed for payment.
Assisting the City with the new Independent Bill Review process AMC handles all aspects of the IMR process for our clients, the steps are listed below.
Step one –
EOR is received by the provider if they feel that they are due additional monies they can submit a request for a “secondary bill review”
Step two –
Secondary bill review request, the provider has 90 days to submit Step three –
Final EOR determination, the claims administrator has 14 calendar days from receipt of a Request for Second Review to respond with a final written determination on each of the items or amounts in dispute by issuing a final EOR
Step four -
Request Independent Bill Review (IBR) California guidelines state that to qualify for IBR, the following pre-conditions must be met:
1. The provider previously submitted a Second Bill Review within designated timelines.
2. The provider has received the final EOR and still disputes the application of the fee schedule.
3. The provider then has 30 calendar days from receipt of the EOR to elect IBR if they still disagree with reimbursement and wish to pursue an independent determination
All our medial/pharmacy bills are put through our bill review software and all state mandated fee schedules rules and regulations are applied. California utilizes the Medi-Cal fee schedule to ensure that reimbursement costs are applied to the billing. The rates are updated accordingly #8..
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and are reviewed to the prevailing schedule. After the bill is reviewed, a highly experienced expert confirms that the proper reductions were taken.
Utilization Review (Organization Owned)
Athens Managed Care is a URO – Utilization Review Organization and URAC accredited. Our highly experienced teams of nurse(s) and utilization review specialists perform utilization review for Athens Administrators clients. Having our UR process imbedded into our claims handling processes helps to expedite the very sensitive UR timeframes. With the adoption of the new UR regulations it is a huge advantage to have a seamless integrated solution.
Our utilization review program provides prospective, concurrent and retrospective reviews to determine appropriateness of care, frequency and care setting. AMC’s experienced staff of utilization review specialist and peer review physicians utilize medical treatment protocols and expert systems technology to determine the medical appropriateness of care as well as frequency, duration and setting.
AMC offers a team of Registered Nurses who are contracted through RehabWest but are monitored and supervised by AMC. These qualified, licensed professionals have experience in treatment planning, medical and specialty case management with a focus on return-to-work.
Their professional case management staff has an average of 8.5 years of experience in managing California Workers’ Compensation injuries. Additionally, AMC provides our clients with bilingual case management nurses throughout California that include Field & Telephonic services. At the request of the client, AMC offers dedicated, on-site nurses.
All UR and NCM personnel work on the same internet-based software allowing for real-time updates and easy accessibility.
The benefits of having the UR unit connected to the examiners is bountiful. • Communication – Seamless communication
• Information – Robust reporting of your managed care results • Control - Ability to customize your approach to utilization review. • Speed - Expedited timelines in accordance with the guidelines and regulations of SB863
• Efficiency – Integrated referral process leads to quicker service delivery & lower claim costs.
• Relationships – Creating a better connection.
Service Standards and Guidelines
Athens Managed Care works directly with our medical director and peer review providers in order to ensure all processes are in compliance with Labor Code 4610. We began our program by teaming with a knowledgeable medical director who understands the workers compensation system and what is needed for a successful Utilization Review program. We then contracted with a peer review company who has long time experience with regulations and timeframes.
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involved with handling cases understand new regulations, trends in treatment and new case laws which may affect the review process. Our suggested Adjuster Approval Guidelines were reviewed by our director and peer review providers to ensure appropriateness of directing care outside the medical review.
Our software program is completely customizable to the data and workflows needed to ensure the best product is generated. The system generates the due date based on date received, jurisdictions and types of reviews. This provides accurate timeframes without the worry of miscalculations. All records and determinations made save within the system for future viewing. This allows reviewers a complete history of treatment done to date when handling a new request for authorization.
Our Utilization Review program integrates with claims staff to ensure a streamlined process for all parties. Direct communications with examiners allows reviewers to quickly move through the review process, decreasing timeframes and getting determinations to all parties quickly. Our Managed Care team has direct access to the claims system to review important information such as claim status, accepted body parties, and medical history information. This creates a more complete, timely review that is accurate and defendable. This decreases the amount of appeals and overturned Independent Medical Reviews in the future.
Determinations to approve, modify, delay, or deny requests by a physician prior to, retrospectively, or concurrent with the provisions of medical treatment services to employees are done as follows:
Upon receipt of a request for Utilization Review, the file is processed into our program and a notification of case receipt is emailed to the assigned claims staff. The receipt outlines the date received by the adjuster, treatment being requested and all parties associated with the claim.
This allows for a quick check to ensure accuracy in our data and acknowledgment that the file was received. As the case is moved through the Utilization Review process, letters are generated as needed and sent via email to the assigned claims staff and faxed and/or mailed to all appropriate parties. All reviews are flagged with a follow up via fax or email (if necessary) to ensure deliver to the handling claims examiner.
Utilization Review Interaction with Clients and the Independent Medical Review Process (IMR)
Athens Managed Care monitors all Independent Medical Review outcomes. Upon receipt of the Notification of Assignment, claims staff forwards the notice to the Managed Care team.
This document is loaded to the review in our program and flagged for any future reporting requests. We discuss with the claims staff the review and provide any documentation that may have been received on the Managed Care side that they are not showing in the claim file. Once the determination is received from the IMR provider, the claims staff submits the outcome to the Managed Care team. This is also uploaded to the review file and flagged for future reporting. Should the determination be overturned, the Utilization Review department will send out the required written documentation on behalf of the claims staff. Any determinations that are overturned are discussed with the peer review provider to review the rationale and guidelines utilized by the IMR provider to determine if any changes need to be made in the Utilization Review workflow.
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Athens Administrators - Adjuster Authorization Guidelines Below treatments/services should be authorized at the adjuster level. Any treatment/service that falls outside this list or is for a body part that is not accepted, should be referred directly to Utilization Review.
• Plain x‐rays for all orthopedic injuries
• MRI/CT after major trauma, or with documentation of neurological deficit • EMG/NCS after four (4) weeks of conservative treatment (CTS/cubital tunnel syndrome, cervical/lumbar radiculopathy), or less than four (4) weeks of conservative treatment with documented neurological deficit
• Routine pre‐op testing (CBC, chem. panel, CXR, EKG)
• Pain Buster (for shoulder/knee arthroscopy)
• Neoprene brace
• Other braces under $200.00
• Chiropractic treatment – 6 visits or less
• Physical Therapy / Occupational Therapy – 6 visits or less • Physical Therapy / Occupational Therapy – initial 12 post‐op visits • Acupuncture – 6 visits or less
• Home Health Care – post‐op 6 visits or less for assistance with daily activities only; medical Home Health Care (wound care) through UR
• Specialist Referral for consult only; Spine Surgeons, Pain Management, Psychiatrist/Psychologist, General Surgeons should go through UR; request for consult and treatment should go through UR
• Ergonomic Evaluations.
AMC understands that not all clients are the same and that these protocols may not fit the City’s program. These UR protocols can be customized to meet the City’s unique needs.
Athens takes a proactive approach to Utilization Review and is fully compliant with regulatory requirements. Athens currently utilizes Fair Isaac for most of our utilization review. We have worked closely with Fair Isaac to develop efficient work flows in order to meet the stringent time frames for medical management. Frequency, duration, and site of care are reviewed for each case. Once a treatment is pre-authorized, the appropriate documents are submitted to the treating facility and so noted in the claim record for the examiner, auditors and Clients. This information is accessible to all authorized participants. With the efficiencies brought about by AthenScan, our paperless document image system, our examiners are able to electronically submit utilization referrals immediately from their desktop. The Utilization Review responses are returned within 48 to 72 hours of the request or sooner in accordance with any applicable State requirement(s). The examiner receives these results electronically and they are also loaded into our bill review software to ensure that only certified treatment is paid. UR results can also be provided electronically to the employer or defense attorney as requested. Our software allows us to monitor and track these services.
Mechanism for identifying inappropriate utilization patterns Our utilization review software platform allows us to capture a large range of data to review a variety of patterns in treatment. Included in the monthly reporting is a breakdown of the percentage of outcomes, peer review outcomes and percentage of treatments based on category #8..
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types. This reporting allows us to review at a high-level spike in treatment categories and drill down to determine a reason. Our system can also look at individual claims to review provider patterns. Should there be a concern as to the treatment a specific injured worker is receiving or the treatment history of a specific provider, we can review the claims provider history to see how many cases have been reviewed, when the provider first submitted a request and the approval percentage rating. With this type of information, we can easily identify providers that are not meeting the standards of care in correlation with evidence-based medicine and regulated guidelines.
Nurse Case Management
Our goal is to insure efficient, reasonable, and appropriate treatment, support return-to-work efforts, and control or reduce costs. We always consult with the client regarding the desirability of retaining the services. These services are only utilized with the prior consent and approval of the client.
Case Management Services
Athens Managed Care (AMC) understands that the City may occasionally need nurse case managers with specific expertise in addition to the UR process.
AMC oversees a team of Registered Telephonic and Field Case Management Nurses both onsite at Athens Administrators and in the field, who are qualified, licensed professionals with experience in treatment planning, medical and specialty case management.
Our nurse case managers have experience with the following:
Amputations Multiple trauma
Blood-born pathogen exposure Musculoskeletal disorders
Burns Neurological issues
Cardiac Occupational Medicine
Catastrophic case management Onsite case management for employer Catastrophic injury Orthopedic injuries / rehabilitation Case management Patient assessment and education
Chronic pain Physical / occupational rehabilitation
Discharge Planning Reflex sympathetic dystrophy (RSD)
Disease and infection control Repetitive stress
Field case management Risk management
General medicine Spinal cord injury
Head injuries Telephonic case management
Infectious diseases Traumatic brain injury
Initial evaluations Triage
Intensive care Utilization review
Internal medicine Vascular injuries
Kidney transplant Wound / incision site care
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Medical Management
The claims team obtains regular status from the treating doctor and monitors all medical treatment. Medical treatment plans are reviewed for reasonableness.
Utilization Review is performed when appropriate. The examiner manages the Nurse Case Manager and schedules QME and medical legal evaluations. All medical bills are submitted for Bill Review.
Cases that would benefit from medical case management. Some cases require an on-site nurse for field case or limited task assignments. It is recommended the following cases be considered for these types of assignments:
• Lost time of 21 days or more
• Back surgery/fusion or second back injury
• Rotator cuff tear, ACL tear, meniscus tear
• Treater delaying RTW or P&S report
• Slow healing fractures
• Diseases or disorders (RSD, Chronic Pain Syndrome)
• Multiple medical providers, frequent changes in providers • Prolonged light duty with no progression to regular duty • History of multiple work injuries
• Continued missed appointments
• Chronic illness
• Accepted psychiatric issues
• Catastrophic Injuries: Burns, head injuries, spinal cord injuries • No progress noted 6 weeks post-surgery
• Complicated family dynamics
• Hospitalization
• Major multiple fractures, cardiac
• Amputations
Activities to expect from a Case Manager: Upon referral of a case management assignment, the Case Manager follows these timelines:
• Referral Source Contact: Within in (1) day of case assignment, verify and or obtain missing information.
• Attorney Contact (if represented): Within one (1) day of case assignment • Injured worker/Physician/Employer Contact: Within one (1) day of case assignment or attorney authorization
• Initial Interview: Meet as soon as possible with the injured worker, and if possible, attend the next medical appointment or visit hospital or physician office. • Initial Report: Within the first seven (7) days of case assignment Medical Provider Networks
We have worked with several of our clients to help choose and file MPN’s. We are experienced in working in an MPN environment and can take over the management of an existing MPN if #8..
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necessary. Athens Administrators would be available to help evaluate and if necessary, amend the City’s MPN with no additional charges for this service.
Athens can assist the City with selecting medical providers. A review of your current top treaters will be evaluated and reviewed with the City, our nurse case managers and claims examiners. We will help to identity the treaters who you want in the MPN and exclude the ones you do not want in the network.
Our preferred recommended MPN partner is Anthem MPN. Unlike other MPNs who only include entire groups, Anthem’s outcomes based MPNs are customized at the individual physician level based on meeting proprietary ranking criteria. Anthem’s MPN participant clients have achieved significantly better savings results than their previous MPN partners.
Additionally, Anthem has and supports hundreds of approved MPNs for clients who are the applicant utilizing Anthem's network and Compliance Vaults for customization, provider finder, affirmations, MAA, outcomes analytics, and more.
Anthem’s service model is transformational because they understand the complexities of MPN compliance and believe in making it easy for adjusters, injured workers and other key stakeholders to obtain quality care within the MPN. Anthem’s MPN includes an expert team that manages compliance with all the regulations and the network performance including enforcing referring within network, prohibition against out of office dispensing, compliance with all required reports, treatment in accordance with MTUS and client’s utilization review.
Anthem’s un-wavering commitment to the quality of their provider data and the client experience is proven by dedicated call centers that verifies over 100K records every year to ensure our provider directory information accuracy. Their proprietary compliance technology includes real time updates for any changes of the provider’s directory information including real time removal of providers that are deceased, retired, or no longer with the group, etc.
Anthem also performs real time removal of all DWC suspended providers or those that are on the California Medical Board Hot List from the network and MPN daily to ensure compliance.
Anthem has direct contracts with providers as the preferred provider network that is utilized for any MPN. Anthem contracts with most providers in the State and represent a significant if not the most significant payor relationship they have. Our clout is leveraged on the client’s behalf to a degree that no other MPN service provider or network can. Only the Chiropractic and Acupuncture networks are leased from American Specialty Health Plan (ASHP).
During the Medical Access Assistant scheduling process, the adjuster is alerted if a compliant appointment initial primary or specialty care with an MPN provider is not available to ensure proper notification to the injured worker to prevent any penalty exposure. Typically, our experience has shown that the injured worker prefers to continue with the MAA assisting in the location and scheduling of an appointment within the MPN list of providers.
F. Litigation Management
While we have clients who mandate referral to defense counsel upon receipt of Notices of Representation and Applications for Adjudication, we do not believe that files should automatically be referred to defense attorneys. We have highly trained and experienced claims experts, and they should be able to handle matters of litigation outside the need for #8..
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depositions or WCAB appearances. Even when files are referred to defense attorneys, we continue to direct the claim, and we never defer to defense counsel on matters that can be handled by the claims examiner, which would include the subpoena of records, setting medical or medical-legal appointments, and lodging objections to the treating physicians.
We recognize that there are some cases that are better referred to defense counsel in order to achieve maximum results. These cases generally involve serious complex claims, very questionable claims where significant discovery, including depositions, are required or where there is a great likelihood that the case will go to trial. Referral to a defense attorney only occurs when approved by the City.
When a decision to refer to defense counsel has been made, the examiner will send a narrative letter to the attorney with an outline of the case, the issues and clear directions for further handling by the attorney. This letter must be reviewed and approved by the Claims Supervisor. The examiner will remain actively involved in the claim, continue to direct all legal activity and perform as much of the routing handling as possible on these cases. Once a claim has been referred to defense counsel, the examiner will continue to oversee all activity on the claim.
Settlements
Athens will submit a written analysis of a case, including settlement options and recommendations to Risk Management at least ten working days prior to any settlement offer or conference. Authority will be obtained from Risk Management before any settlement is entered in to. Athens has a customizable settlement authority template which includes financials on the claim (paid, reserved, and incurred). We will work with the City to determine the preferred method of receipt of the authority request (email, U.S. mail, or fax).
Athens, in conjunction with our clients, carefully selects attorneys that are known to us and continue to provide good legal defense. Athens’ philosophy is to select the best individual attorneys, not the firm. Referral to a defense attorney only occurs when approved by the client. We recognize that there are some cases that are better referred to defense counsel in order to achieve maximum results. These cases generally involve serious complex claims, very questionable claims where significant discovery, including depositions, are required or where there is a great likelihood that the case will go to trial. Each client can customize a legal panel based on their choice and/or we can recommend those vendors that will provide the best legal defense and outcome.
Defense attorneys who bill at the traditional fee for service method must agree to work within specific guidelines similar to those outlined below. These guidelines were developed as part of our litigation cost control program in an effort to maintain control over the legal billing process. All legal expenses and bills must be itemized and are reviewed prior to payment. • Itemized by date of activity
• Identify all billing entities
• When there are multiple files, no duplication of charges • All billings should reflect actual time spent
• Prorate all multiple appearances between employers
• Itemize all expense items
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• No bill for inquiries
Monitoring quality and cost of legal work
Athens Administrators values the relationships with all partners and believes that any successful relationship is based on clear and concise expectations for both parties well prior to commencing work together. These entry level discussions should focus on claims handling philosophies, expectations of representation of the City and Athens, as well as agreed upon hourly rates for the service. Once these agreements are in place, Athens Administrators sends a litigation plan and budget request on all legal referrals. The adjuster will aggressively follow up on both items from defense counsel. Upon receipt, a detailed review of both the plan and budget will be completed and documented in claim notes by the adjuster. This review will focus on the proposed legal analysis, legal recommendations, timelines/expected duration of litigation as well as the estimated costs. If we are in agreement with the legal recommendations, action plan and costs, we will continue to work with our attorney and monitor the monthly expenditures to ensure that what is approved is in line with what is being incurred. Should there be a discrepancy identified in the initial review/cost analysis by our adjuster, Athens Administrators will contact the defense attorney to discuss and ensure complete agreement is reached between all parties with full documentation in claim notes.
Additionally, Defense attorneys who bill at the traditional fee for service method must agree to work within specific guidelines like those outlined below. These guidelines were developed as part of our litigation cost control program to maintain control over the legal billing process. All legal expenses and bills must be itemized and are reviewed prior to payment.
• Hourly rates to be broken down in to 1/10ths
• Itemized by date of activity
• Identify all billing entities
• When there are multiple files, no duplication of charges • All billings should reflect actual time spent
• No minimum billing rates
• Prorate all multiple appearances between employers
• Itemize all expense items
• Mileage will be reimbursed at the current IRS rate
• Incoming faxes will not be billed
• Outgoing faxes will be paid on an itemized long distance phone rate • Postage will be paid as an actual itemized cost
• Only bill for long distance phone calls at itemized long-distance rate • No bill for local phone calls
• No bill for inquiries
G. Investigation Management
Investigations
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believe such an investigation is necessary and also obtain the client’s consent prior to making the assignment.
When using outside investigators, we coordinate our assignments with the client and possibly the defense attorney on the claim. Athens works with the client to identify a client contact person so that no unexpected communication is made. Athens has an extremely comprehensive Special Investigation Unit (SIU) program. This program is focused on AntiFraud compliance; which includes maintaining a formal Fraud Plan, annual filings, and training. Through this program, fraud training is available to both Athens staff and directly to our clients.
The claims team receives on-going extensive training on fraud procedures and reporting to the Fraud Bureau. We are experts at identifying and pursuing fraudulent claims activity. We conduct thorough investigations, which includes taking recorded statements on all questionable and delayed claims and utilizing a formal red flag checklist to identify potential fraudulent claims. “Red Flags” or indicators that may prompt an investigation include:
• Anonymous phone call or letter alleging possible fraud • Three or more Index Returns in the past two years involving the claimant • Claimant does not report the injury in a timely manner • Claimant only receives mail at a PO Box and will not provide a home address • Claimant possesses an unusual knowledge about workers’ compensation benefits and claim procedures
• Claimant has received a disciplinary action, been terminated or is disgruntled just prior to the accident
• Claimant is never home
• Claimant’s accident description differs from the medical history • Injury is un-witnessed
• Claimant is known to be active in sports or other strenuous activities • Claimant has calloused, dirty or stained hands
• Claimant misses appointments or refuses treatment
• Conflicting medical reports or inconsistent findings
• Medical reports appear to photocopies or boilerplate reports • Claimant immediately seeks an attorney
These situations often require that a field investigator evaluate the employees in their home environment, listen to their version of events and facts, and personally assess their credibility and witness potential at deposition and/or trial. (This same criterion is often employed in evaluating and securing the statement of key witnesses.) Should the resultant field investigator's report raise additional questions including possible fraud, we may recommend that sub rosa investigation be pursued. Criteria that might trigger such a request by Athens could include:
Receipt of applicant's medical report that varies greatly from our doctors' as to degree and duration of disability.
Evidence that the claimant may be working while on disability or engaged in meaningful physical activities (i.e., fresh grease under fingernails at time of our IME). #8..
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Missed medical appointments and/or refusal to cooperate with scheduled examinations. Index Bureau returns indicating a prior pattern of industrial and non-industrial claims. Evidence of conflicting testimony in deposition.
Evidence of a second, previously undisclosed job.
Receipt of a phone call from a co-worker or personal acquaintance as to possible fraud.
Claims requiring outside field investigation require notifying the client as to our reasons we believe such an investigation is necessary and obtain the client’s consent prior to making the assignment. When using outside investigators, Athens provides the action plan instructions and always controls the assignment. Our primary objective is to aggressively investigate and defend the City’s interests while settling claims at the earliest possible time, for the least expense to the City.
Fraud
We are experts at identifying and pursuing fraudulent claims activity. Our staff has received extensive training on fraud procedures and reporting to the Fraud Bureau. In addition to identifying potential fraudulent claims, The City’s senior examiner will develop an aggressive action plan to guide and monitor further fraud investigation, coordinate efforts with the local District Attorney’s office and keep key City personnel apprised of all updates. We have online access for reporting claims to the Fraud Unit. All potential fraud cases are given to the unit supervisors for screening. All fraud referrals are reviewed by the SIU manager before final submission. We have reported many cases to the Bureau, resulting in conviction, sentencing and restitution for our clients!
Investigative services are contracted. Our best-in-class partner, RJN Investigations, has provided California public agencies these services for 28 years. Disclaimer: While Athens Administrators partners with our investigative partner, the City is under no obligation to utilize them and we are open to whomever the City wishes to use for their investigative services.
H. Auditing
Athens Administrators has a formal written Quality Control Program. Our approach to the management of our clients’ claims and programs centers on quality, service and results. We are committed to a constant focus on these key elements of our total claims management approach.
Our knowledgeable, dedicated operations management team provides strong leadership and objectives. There are (4) levels of supervision and accountability: President, oversees the entire claims operations, Chief Operations Officer manages the claims technical processes and overall claims results and claims operations, and Division Manager monitors supervisory compliance with best practice performance standards, client specific special account instructions, legal and regulatory compliance. The designated Division Manager and supervisor will monitor the City’ Workers’ Compensation claims in accordance with our Supervisory Audit Procedures.
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responsibility of this position is to ensure that the processes and procedures of the Claims Department meet the overall quality expectations and are in compliance with state and federal regulations and customer requirements. This position involves analyzing and reviewing insurance claims for accuracy by performing routine and focused audits of all aspects of the claims process, including coverage, documentation, coding, payments, reserves, claim denials, and claim closure. Individual findings and recommendations will be provided as feedback to the claims staff. Both detailed and summary results will be provided and reviewed with the EVP Workers’ Compensation Claims.
Audits vary from program to program and are not scheduled on a regular basis to ensure that quality is always given on every claim, not just before an audit.
Additionally, Athens Administrators conducts internal file reviews and roundtables. This includes random audits by our internal Quality Control specialist, supervisory reviews of examiner files and roundtables for all catastrophic claims and claims which include a fatality.
Our roundtable review panel is comprised of the EVP, Workers’ Compensation Claims, Divisional Claim Managers, Claims Supervisors and Senior Claim Examiners. Our Quality Control specialists completes random reviews throughout each quarter and our roundtable reviews are completed as frequently as necessary.
Examiners are required to review open Indemnity claims at least every 30 days. Our computer system has an automated diary system that is utilized by all our staff. A detailed list of diaries is displayed each time a user logs onto the computer. The automated diary system sets and examiner diary for 28 days and a Supervisor Diary for 30 days from the date the claim is entered. A second manual diary is also maintained. At a minimum the claims unit supervisors are required to review open Indemnity claims every 90 days. These timeframes are our best practices but may be modified within the client’s special claim handling instructions.
Additionally, annually, Athens Administrators also engages an independent auditor (Armeruno) to provide an Independent Service Auditor's Report on a Description of a Service Organization's System and the Suitability of the Design and Operating Effectiveness of Controls.
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City of Modesto
Third-Party Administrator Questionnaire Response
REQUEST FOR PROPOSAL AND SPECIFICATIONS NO.
2021-44 WORKERS’ COMPENSATION CLAIMS
MANAGEMENT PROGRAM
THIRD-PARTY ADMINISTRATOR QUESTIONNAIRE
This section of the RFP provides a series of questions which will give the City an overview of the claim’sadministrator for the type and extent of services required.
Proposer shall repeat the question in their response and provide the answer immediately following.
A. About the Firm
1. Give a brief history of your firm since inception, including:
For 45 years, since 1976, Athens Administrators has been providing claims administration services to public agencies in the State of California. As noted in our cover letter, we currently support hundreds of Cities, Counties, Park Districts, Transportation Districts, Fire Districts, Housing Authorities, School Districts, Utility Districts and Water Districts.
Athens Administrators has approximately 60% of our business in the public sector arena. • A list of principals
We are a stable and independent company and are fully owned and operated by the Jenkins family and led by Jim Jenkins, Chairman and James Jenkins, President. We believe that being a privately held organization in the marketplace today gives us a competitive advantage for providing flexible options for our clients. • An organizational chart
Please see the included organizational chart in attachments • Size and location(s) of your firm, including numbers of employees at each location Today we have over 380 full time employees in our organization, and we manage over 22,000 open claims encompassing $2.5 billion in total incurred.
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Athens Administrators has four (4) California locations in:
• Concord (177 Employees)
• San Diego (21 Employees)
• Orange (63 Employees)
• Sacramento (8 Employees)
• A description of the types of services provided by your firm and the number of year provided, and
• The contact person(s) for this RFP process
Kevin Cichurski, Director of Sales
Phone: (925) 826-1103
Email: [email protected]
2. Discuss any major changes in your firm’s structure or ownership over the past three (3) years. Discuss anticipated changes in your firm’s structure or ownership in the next three (3) years.
Athens Administrators has not had any changes to our structure or ownership in the past three years and we do not anticipate any in the coming three years.
3. Discuss your firm’s affiliation, if any, with a parent firm.
As Athens Administrators is a wholly owned family-owned organization, we do not have any affiliations with parent firms.
SERVICE YEARS
OFFEERED
Workers’ Compensation Claims Administration 45
P&C Liability Claims Administration 13
Medical Bill Review (MBR) 45
Preferred Provider Organization (PPO) 45
Medical Provider Network (MPN) 11
Internal Bill Negotiation 45
Specialty Bill Review (SBR) 45
PBM 11
(Index/ISO) 23
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4. Discuss your firm’s affiliation with:
• Medical service providers
For your MPN solutions, we work with Anthem Blue Cross which provides exceptional coverage in the Modesto area.
We have worked with several of our clients to help choose and file MPN’s. We are experienced in working in an MPN environment and can take over the management of an existing MPN if necessary. Athens Administrators would be available to help evaluate and if necessary, amend the City’s MPN with no additional charges for this service.
Athens can assist the City with selecting medical providers. A review of your current top treaters will be evaluated and reviewed with the City, our nurse case managers and claims examiners. We will help to identity the treaters who you want in the MPN and exclude the ones you do not want in the network.
Our preferred recommended MPN partner is Anthem MPN. Unlike other MPNs who only include entire groups, Anthem’s outcomes based MPNs are customized at the individual physician level based on meeting proprietary ranking criteria. Anthem’s MPN participant clients have achieved significantly better savings results than their previous MPN partners. Additionally, Anthem has and supports hundreds of approved MPNs for clients who are the applicant utilizing Anthem's network and Compliance Vaults for customization, provider finder, affirmations, MAA, outcomes analytics, and more.
Anthem’s service model is transformational because they understand the complexities of MPN compliance and believe in making it easy for adjusters, injured workers and other key stakeholders to obtain quality care within the MPN. Anthem’s MPN includes an expert team that manages compliance with all the regulations and the network performance including enforcing referring within network, prohibition against out of office dispensing, compliance with all required reports, treatment in accordance with MTUS and client’s utilization review.
Anthem’s un-wavering commitment to the quality of their provider data and the client experience is proven by dedicated call centers that verifies over 100K records every year to ensure our provider directory information accuracy. Their proprietary compliance technology includes real time updates for any changes of the provider’s directory information including real time removal of providers that are deceased, retired, or no longer with the group, etc. Anthem also performs real time removal of all DWC suspended providers or those that are on the California Medical Board Hot List from the network and MPN daily to ensure compliance.
Anthem has direct contracts with providers as the preferred provider network that is utilized for any MPN. Anthem contracts with most providers in the State and represent a significant if not the most significant payor relationship they have. Our clout is leveraged on the client’s behalf to a degree that no other MPN service provider or #8..
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network can. Only the Chiropractic and Acupuncture networks are leased from American Specialty Health Plan (ASHP).
During the Medical Access Assistant scheduling process, the adjuster is alerted if a compliant appointment initial primary or specialty care with an MPN provider is not available to ensure proper notification to the injured worker to prevent any penalty exposure. Typically, our experience has shown that the injured worker prefers to continue with the MAA assisting in the location and scheduling of an appointment within the MPN list of providers.
• Utilization review services
Athens Managed Care is a URO – Utilization Review Organization and URAC accredited. Our highly experienced teams of nurse(s) and utilization review specialists perform utilization review for Athens Administrators clients. Having our UR process imbedded into our claims handling processes helps to expedite the very sensitive UR timeframes. With the adoption of the new UR regulations it is a huge advantage to have a seamless integrated solution.