Staff Report
PREPARED BY: LISA VELASCO
Human Resources Director
Reviewed by: Assistant Town Manager Town Attorney Finance
S:\COUNCIL REPORTS\2018\05-01-18\03 Innovative Claim Solutions\Staff Report - ICS Agreement V1.docx 4/26/2018 4:42 PM LV
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/01/2018
ITEM NO: 03
DATE: APRIL 24, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOURTH AMENDMENT
TO THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE CLAIMS
SOLUTIONS, INC. TO EXTEND THE CONTRACT FOR TWO MONTHS TO
PERFORM WORKERS’ COMPENSATION CLAIMS ADMINISTRATION
RECOMMENDATION:
Authorize the Town Manager to execute a fourth amendment (Attachment 1) to the
professional services agreement with Innovative Claims Solutions, Inc. to extend the contract
for two months to perform workers’ compensation claims 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. In
August 2013, the Town extended the contract through June 30, 2016. Two subsequent one -
year extensions were approved through June 30, 2018.
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 will be sent to vendors in
May 2018. Since the timeframe before the current agreement expires is brief, ICS is amenable
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SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOURTH AMENDMENT TO
THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE CLAIMS SOLUTIONS, INC.
TO EXTEND THE CONTRACT FOR TWO MONTHS TO PERFORM WORKERS’
COMPENSATION CLAIMS ADMINISTRATION
APRIL 24, 2018
110 E. Main Street Los Gatos, CA 95030 ● 406-354-68xx
www.facebook.com/losgatosca
DISCUSSION (cont’d):
to extending the agreement for two additional months, at the lower renewal rate, 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 two months through August 31, 2018, at a renewal rate reduced from $4,292 to
$4,067 per month based on claims submission experience.
FISCAL IMPACT:
ICS has agreed to extend the agreement through August 31, 2018 at the lower renewal rate
that will be effective on July 1, 2018. The two-month 2018/19 fiscal impact is a total reduction
of $450. Funding to support this agreement is in the Adopted Operating Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Original Agreement
2. First Amendment to Agreement
3. Second Amendment to Agreement
4. Third Amendment to Agreement
5. Proposed Fourth Amendment to Agreement