Staff Report - ICS Amendment to Agreement
DATE:
August 1, 2019
TO:
Mayor and Town Council
FROM:
Laurel Prevetti, Town Manager
SUBJECT:
Authorize the Town Manager to Execute a Sixth Amendment to the Professional Services Agreement with Innovative Claims Solutions, Inc. to Extend the Contract for Four Months to Perform
Workers’ Compensation Claims Administration
RECOMMENDATION:
Authorize the Town Manager to execute a sixth amendment (Attachment 7) to the professional services agreement with Innovative Claims Solutions, Inc. to extend the contract for four months
to perform workers’ compensation administration.
BACKGROUND:
The Town uses Innovative Claims Solutions, Inc. (ICS), a third-party administrator, for its self-funded workers’ compensation program. ICS was selected through a competitive bid process
conducted in 2010. The original agreement with ICS was established through June 30, 2012. Subsequent amendments (Attachments 2-6) extending the agreement were approved through June
30, 2019.
DISCUSSION:
Due to the length of time since a formal request for proposals (RFP) has been solicited for workers’ compensation claims administration services, a new request has been sent to vendors
with a submittal deadline of August 19, 2019. Staff anticipates completing the selection process by September 30, 2019 and bringing a new agreement for Council consideration on October
15, 2019 with a proposed effective date of November 1, 2019. ICS is amenable to extending the agreement (Attachment 7) for four additional months, at the current monthly rate of $4,067,
to allow sufficient time for the RFP process to be completed.
CONCLUSION:
Staff recommends that ICS continue to serve as the Town’s third-party administrator for an additional four months through October 31, 2019, at the current rate. This extension will
enable staff to complete the competitive bid process.
FISCAL IMPACT:
ICS has agreed to extend the agreement through October 31, 2019 at the current monthly rate of $4,067 per month. Funding to support this agreement was included in the FY 2019/20 Adopted
Operating Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
Original Agreement
First Amendment to Agreement
Second Amendment to Agreement
Third Amendment to Agreement
Fourth Amendment to Agreement
Fifth Amendment to Agreement
Proposed Sixth Amendment to Agreement