Loading...
Staff Report PREPARED BY: LISA VELASCO Human Resources Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 06/20/2017 ITEM NO: 3 DATE: JUNE 13, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE CLAIMS SOLUTIONS, INC. TO EXTEND THE CONTRACT FOR ONE YEAR TO PERFORM WORKERS’ COMPENSATION CLAIMS ADMINISTRATION RECOMMENDATION: Authorize the Town Manager to execute a third amendment to the professional services agreement with Innovative Claims Solutions, Inc. to extend the contract for one year 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. In June 2016, the Town requested an extension through June 30, 2017. DISCUSSION: The Town planned to conduct a formal request for qualifications (RFQ) before the expiration of the contract; however, due to staff vacancies within the Human Resources Department, this was not feasible. Staffing recently stabilized within the Human Resources Department and staff is requesting a one-year contract extension through June 30, 2018 to allow ICS to continue to PAGE 2 OF 2 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE CLAIMS SOLUTIONS, INC. TO EXTEND THE CONTRACT FOR ONE YEAR TO PERFORM WORKERS’ COMPENSATION CLAIMS ADMINISTRATION DATE: JUNE 13, 2017 S:\COUNCIL REPORTS\2017\06-20-17\ICS Contract\Staff Report - ICS Contract FINAL.docx 6/15/2017 9:23 AM LV DISCUSSION (cont’d): administer the Town’s Workers’ Compensation Program without interruptions while staff conducts a formal request for qualifications process. CONCLUSION: ICS has demonstrated effective case management and has produced cost savings in the Town’s Workers’ Compensation Program. It is recommended that ICS continue to serve as the Town’s third party administrator for an additional year, under the same terms as the original contract. This continuation will minimize disruption in the management of claims and will allow the Town staff to conduct a competitive bid process. FISCAL IMPACT: ICS has agreed to extend the agreement through June 30, 2018 and waive an increase in fees. The annual fiscal impact is $51,500, which is the same fee incurred for fiscal year 2016/17 . 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. Proposed Third Amendment to Agreement