June 28, 2022
Human Resources
DATE: June 28, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Laura Marquez, Risk Manager
Subject:
Proposed 6-Month Extension Contract with Acclamation
Insurance Management Services, Inc. to Continue
Serving as the City's Third-Party Administrator of
Workers' Compensation Claims.
FINANCIAL IMPACT: Funding for this year’s portion of the total expenditure ($314,386) is included within the proposed fiscal year
2022-2023 budget, Human Resources Management
Department, Risk Management Division (50182216).
PREVIOUS COUNCIL
ACTION:
STATEMENT OF THE
ISSUE:
City staff is recommending that Acclamation
Insurance Management Services, Inc. (AIMS) be
retained for an additional six months to continue
providing workers’ compensation claims
administration services.
RECOMMENDED ACTION:
APPROVE a third contract amendment with
Acclamation Insurance Management Services, Inc. to
continue serving as the City's third-party administrator of workers' compensation claims, for a total payment
limit not to exceed $314,386, and extending the term
six-months through December 31, 2022 – Human
Resources, Risk Management Division (Laura
Marquez 620-6974).
AGENDA
REPORT
June 28, 2022
DISCUSSION:
The City generates approximately 189 new workers’ compensation claims each year and currently carries a caseload of 402 files. The highest frequency of claims filed are from the Police Department, Fire Department, and Public Works Department.
Accordingly, extensive experience in handling public safety claims with special expertise and knowledge of Labor Code sections that pertain to police and fire personnel (as well as for all other employees) is essential.
For the past five (5) years, the current administrator of the City’s workers’ compensation claims program has been Acclamation Insurance Management Services, Inc. (AIMS). In February of 2022, a new request for proposals (RFP) was initiated. City staff is carefully reviewing the proposals and evaluating the current workers’ compensation claims administration process. In addition, the City Attorney’s Office, in coordination with Risk Management and Finance, will be evaluating the City’s organizational needs with respect to the administration of workers’ compensation claims. To prevent a lapse in services while City staff completes this evaluation, City staff recommends extending the current contract with AIMS for a period of six months, through December 31, 2022, and increasing the contract not to exceed amount to $314,386.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – First Amendment
Attachment 3 – Second Amendment
Attachment 4 – Third Amendment (proposed)