HomeMy WebLinkAbout2019-05-21; City Council; ; First extension term to the Agreement with AdminSure, Inc., for the third party administration of workers' compensation claims.~ CITY COUNCIL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
May 21, 2019
Mayor and City Council
Scott Chadwick, City Manager
Donna Hernandez, Human Resources Manager
donna.hernandez@carlsbadca.gov or 760-602-7533
CA Review WC,
Subject: First extension term to the Agreement with AdminSure, Inc., for the third
party administration of workers' compensation claims.
Recommended Action
Adopt a Resolution authorizing the City Manager to execute the first extension term and
granting the City Manager authority to execute the second and final future extension to the
Agreement with AdminSure, Inc., for the third party administration of workers' compensation
claims.
Executive Summary
On May 8, 2018, City Council awarded an Agreement to AdminSure, Inc., ("AdminSure") to
provide third party administration of workers' compensation claims. The original term of the
Agreement with AdminSure was for one year with a possibility to extend it for two additional
one-year periods based upon satisfactory review of the contractor's performance.
Staff recommends extending the Agreement for one year and authorizing the City Manager to
execute the second and final extension (third year) in the future based upon continued
satisfactory review of the contractor's performance as outlined in the Agreement.
Pursuant to Section 3.28.060 of the Carlsbad Municipal Code the city council shall be the
awarding authority for procurement of professional services for which the cost to the city is
more than $100,000 per agreement year. This includes authorizing extensions to the
professional service agreements unless that authority is granted to the City Manager.
Discussion
As a Third Party Administrator (TPA), Adminsure performs claims services in accordance with
the State of California, Division of Workers' Compensation, coordinates medical treatment,
performs OSHA log tracking, medical bill review and utilization review, provides reporting
services and performs other functions related to workers' compensation.
Per the Agreement, the annual fee for the first year was $123,300. The annual fees for years
two and three would be $127,000 and $130,809 (a three percent increase per year):
May 21, 2019 Item #2 Page 1 of 5
Fiscal Analysis
Sufficient funds have been included in the Fiscal Year 2018-19 budget for the second year
expenditure and future fiscal year funds will be included in the annual budget process.
Next Steps
Staff will complete all administrative actions necessary to implement the extended Agreement
with AdminSure Inc.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonable foreseeable indirect physical change in the environment;
and therefore, does not require environmental review.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the posting of the agenda.
Exhibits
1. City Council Resolution.
May 21, 2019 Item #2 Page 2 of 5
RESOLUTION NO. 2019-067
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE
FIRST EXTENSION TERM AND GRANTING THE CITY MANAGER THE
AUTHORITY TO EXECUTE FUTURE EXTENSIONS OF THE AGREEMENT
WITH ADMINSURE INC. FOR THIRD PARTY ADMINISTRATION OF
WORKERS' COMPENSATION CLAIMS.
WHEREAS, AdminSure, Inc., provides third party administration of workers' compensation
claims for the City of Carlsbad under an Agreement authorized by City Council by Resolution No.
2018-162, adopted on May 8, 2018; and
WHEREAS, the City Council has determined it is in the best interest of the city to grant the
first one-year extension of this Agreement; and
WHEREAS, the initial term of the Agreement will expire on May 31, 2019.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California,
as follows:
1. That the above recitations are true and correct.
2. That the City Manager is hereby authorized to execute the first extension of the
Agreement with AdminSure, Inc., for a term of one year, attached hereto as Attachment "A."
3. That the City Manager or designee is hereby authorized to execute the second and
final extension of the Agreement with AdminSure, Inc., in the future if it is determined to be in
the best interest of the city.
PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council of the City of
Carlsbad on the 21st day of May 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
Hamilton.
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AMENDMENT NO. 1 TO EXTEND THE AGREEMENT FOR THIRD PARTY ADMINISTRATION
FOR WORKERS' COMPENSATION CLAIMS ADMINISTRATION
ADMINSURE, INC.
This Amendment No. 1 is entered into and effective as of the At, c~ day of
7 ~ \..«.~ , 2019, extending the agreement dated June 1, 2018 (the
"Agreeme by and between the City of Carlsbad, a municipal corporation, ("City"), and
AdminSure Inc., a corporation ("Contractor") (collectively, the "Parties") for third party
administration of workers' compensation claims.
RECITALS
A On June 1, 2018 the Parties executed the Agreement for third party administration
of workers' compensation claims services; and
B. The Parties desire to extend the Agreement for a period of one (1) year.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. The Agreement, as may have been amended from time to time, is hereby extended
for a period of one (1) year ending on May 31, 2020 and funded in amount not to exceed one
hundred twenty seven thousand dollars ($127,000).
2. All other provisions of the Agreement, as may have been amended from time to
time, shall remain in full force and effect.
3. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, shall include coverage for this
Amendment.
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City Attorney Approved Version 1/30/13
May 21, 2019 Item #2 Page 4 of 5
4. The individuals executing this Amendment and the instruments referenced on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions hereof of this Amendment.
CONTRACTOR
:~~/(~
(sign here)
ar/A1tL 1/arr;/iS• ((o(.lf, f r:,~Jfn/-
(p · t name/title)
By:
(\ign here)
h /l St{ Ir Sec.re.-+4.r
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
ATTEST:
....
If required by City, proper notarial acknowledgment of execution by Contractor must be attached.
If a corporation, Agreement must be signed by one corporate officer from each of the following
two groups:
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CELIA A. BREWER, City Attorney
BY:
fkJ_ {}__,
-------------Assistant City Attorney
City Attorney Approved Version 1/30/13
2
May 21, 2019 Item #2 Page 5 of 5