Loading...
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