HomeMy WebLinkAbout05.F- City Manager RESOLUTION (ID #2938) DOC ID: 2938 B
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Allen Parker M/CC Meeting Date: 03/03/2014
Prepared by: Linda Wynn, (909) 384-5161
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of a First Amendment to the Consultant Services Agreement Between Gus Papagolos
Consulting and the City of San Bernardino for Consulting Services. (#2938)
Current Business Registration Certificate: Yes
Financial Impact:
The costs associated with this amendment are$40,000; therefore it is requested that$40,000 be
transferred from Account No. 678-110-0057-5181 to Account No. 678-110-0057-5505.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
None.
UBackl1round:
On December 1, 2013, a Consultant Services Agreement was initiated between Gus Papagolos
Consulting and the City of San Bernardino for consulting services, in the amount of$24,950.00
Gus Papagolos Consulting is a municipal consulting firm serving public agencies solely in the
State of California. This amendment will provide the needed support to continue essential City-
wide reorganization and cost-containment initiatives. These services have yielded the complete
design, procurement, and implementation of a self-insured third party workers compensation and
a general liability claims administration program. In concept, the outsourcing was first discussed
in November 2012, and today both programs are fully implemented. The results of the Worker's
Compensation Program are producing reduced paid claims amounts below Fiscal Year 2013-
2014 budgeted levels.
Recently, the benefits of utilizing Gus Papagolos Consulting were due to the discovery of costly
property insurance layers and the utilization of overseas insurance carriers. These practices have
been replaced with a strategy to provide complete insurance wholesale commission transparency
to the City. By marketing the property insurance to only domestic carriers, it is estimated to
generate a cost savings of 10% to 17.5% from the current property insurance premium of$1.4
million. Gus Papagolos Consulting is currently leading the process of property insurance renewal
to capitalize on lowering the City's property insurance costs. In addition, Gus Papagolos
Consulting is working on an earthquake cost-sharing strategy that will lower earthquake
insurance premiums by nearly 50%without coverage compromise. The City's property insurance
is scheduled to renew in July 2014.
Updated:2/27/2014 by Georgeann"Gigi"Hanna B Packet''Pg.63
2938
The essential City-wide reorganization and cost containment initiatives will include:
Establish complete Worker's Compensation Third Party Administrator monitoring tools,
and procedures and review of past excess insurance payments.
• Payment validation
• Develop performance measurements for claims processing
• Develop ancillary cost reviews and containment support and training
General Liability Third Party Claims Administration subrogation development for
initiated City claims and full cost allocation reimbursement.
Continued documentation of the City's Internship Program with California State
University, San Bernardino, and other institutions of higher learning in the area.
Cost containment on benefits/health care reform
Assist City Manager's Office with program operating budget
Develop and Document City-wide Operational Procedures
Analysis and development of City-wide reorganizational cost-saving opportunities
• City-wide Risk Management Program Policy and Procedures.
o Provide Surety bond review/valuation on all performance, material and labor
bonds
o Risk Management Program Reporting
o Risk Management Documentation Guidelines and Training
Also, Gus Papagolos Consulting has worked closely with the Human Resources Division
Manager to negotiate savings of $44,000 annually on the employee benefit insurance broker
services and $30,000 savings on property and liability insurance broker services. Additional
work is advancing with analysis and potential development of workers' compensation carve-out
initiatives designed to improve overall service and reduce workers' compensation claim costs by
speeding up medical review and medical scheduling process. This concept will help reduce over
time hours in order to backfill staff levels impacted by workers' compensation claims.
This First Amendment will enable these needed cost-saving services to continue, and the City
will continue to benefit from the services and expertise provided by Gus Papagolos Consulting.
Specifically, Gus Papagolos Consulting will work to identify and evaluate other risk
management processes and provide additional operational cost-saving alternatives. As process
efficiencies are approved, these services will also work to ensure training, implementation and
follow-up review and re-evaluation to bench mark total benefits.
City Attorney Review:
Supporting Documents:
reso 2938 (PDF)
agrmt 2938 (PDF)
Scope of Services (DOCX)
Updated:2/27/2014 by Georgeann"Gigi"Hanna B Packet Pg.64'
RESOLUTION NO.
1
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
3 AMENDMENT TO A CONSULTANT SERVICES AGREEMENT BETWEEN GUS
PAPAGOLOS CONSULTING AND THE CITY OF SAN BERNARDINO.
4
5 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
6 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The City Manager is hereby authorized and directed to execute a First z°
8
Amendment to the Consultant Services Agreement between the City of San Bernardino '
9
10 and Gus Papagolos Consulting. a
11 SECTION 2. The Director of Administrative Services is hereby authorized to do a
12 budget transfer of $40,000 from Account No. 678-110-0057-5181 to Account No. 678-110- 0
N
13 0057-5505. °
0
14
SECTION 3. The Director of Administrative Services is hereby authorized to a
15 3
16 ncrease the Purchase Order to Gus Papagolos Consulting by an additional amount not to 0
00
M
17 exceed $40,000.
t 00
18 SECTION 4. The authorization granted hereunder shall expire and be void and of N
19 o
no further effect if the Agreement is not executed by both parties and returned to the Office
a
20
I
21 of the City Clerk within sixty (60) days following the effective date of this Resolution. E
�
°
22
23
24 111
25
26
27
28
Packet Pg.65
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
1 OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
2 AMENDMENT TO A CONSULTANT SERVICES AGREEMENT BETWEEN GUS
PAPAGOLOS CONSULTING AND THE CITY OF SAN BERNARDINO.
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
5 and Common Council of the City of San Bernardino at a meeting
6 thereof,held on the day of , 2014, by the following vote,to wit:
7 Council Members: AYES NAYS ABSTAIN ABSENT z°
r
8 =
MARQUEZ E
9 =
10 BARRIOS Q
°i
11 VALDIVIA =
w
N
12 SHORETT o
U
13 NICKEL °th
0
14 ='
JOHNSON a
15
16 MULVIHILL
00
M
17 N
1 M
M
8
C1
Georgeann Hanna, City Clerk o
19 N
L
20 The foregoing Resolution is hereby approved this day of ,2014.
i E
21
°
Y_
22 R. Carey Davis, Mayor a
23 City of San Bernardino
24 Approved as to form:
25 Gary D. Saenz, City Attorney
26 By. r
A 27
28
Packet Pg.frs
Exhibit A
FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND
GUS PAPAGOLOS CONSULTING
THIS First Amendment is made and entered into as of March 3, 2014 by and between the City
of San Bernardino, a charter city ("City"), and Gus Papagolos Consultant ("Consultant"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
1. This Amendment is made with respect to the following facts and purposes:
a. On December 1, 2013, the City and Consultant entered into a Consultant Services r
Agreement for a total amount of twenty four thousand nine hundred and fifty dollars and z6
no cents ($24,950.00).
c
b. The parties now desire to amend the Agreement for an additional amount not to exceed
forty thousand dollars and no cents ($40,000.00). _
d
2. Section 2. Compensation of the Agreement is hereby amended to increase the amount the a
City agrees to pay the Consultant, not-to-exceed an additional forty thousand dollars and no c
cents ($40,000.00). City shall pay Consultant for services rendered pursuant to this
Agreement at the time and in the manner set forth herein. N
c
0
3. Section 3.1. Term of the Agreement is hereby amended to extend the term of the
Agreement to June 30, 2015, unless the Agreement is previously terminated as provided for o
herein.
4. Except for the changes specifically set forth herein, all other terms and conditions of the �-
Agreement shall remain in full force and effect
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their respective authorized officers, as of the date first above written.
f 00
M
CITY OF SAN BERNARDINO
By: Dated:
Allen Parker, City Manager
d
E
CONSULTANT
Gus Papagolos Consulting a
By: Dated:
Gus Papagolos, Owner
Approved as to Form:
Gary D. Saenz, City Attorney
By:
Packet Pg.67
5.F.c
Gus Papagolos Consulting
Scope of Work
FY 2013 -2015
Establish/Complete Worker's Comp TPA Monitoring Tools, and Procedures
• Payment validation
• Develop performance measurements for claims processing
• Develop ancillary cost reviews and containment support and training
• Routine claims management and reporting processes
• Establish department informational claim status reports --
6
General Liability Third Party Claims Administration Z
Develop general liability TPA program procedures, management controls and oversight
devices in connection with the investigation, adjustment, processing, supervision and E
resolution of general liability, motor vehicle liability, property damage and potential money
damage claims asserted by third parties against City, or against parties for whom City is Q
alleged to be legally responsible. Essential areas:
c
■ General Liability Claims Management N
■ Auto Liability Claims Management Q
■ Property Claims Management L)
■ Risk Management Control and Safety Programs o
■ SIR Claims Administration 0
■ Subrogation Recovery Services Q
■ Trial Preparation Support a
■ Risk Management Control and Safety Programs
■ Ongoing Risk Management Administrative Support c�
co
Re-establish Claims Review Committee procedures to function as the reviewer and
approving authority for all settlements as designated by the City Manager on claims above
Ten Thousand Dollars ($10,000.00), but not exceeding Twenty Thousand ($20,000.00)
U
Establish Citywide Internship Program and Workforce Investment Act Grant
Opportunities o
• Develop paid internship Program with CSUSB on match funds bases a)
Market Internship program to CSUSB Seniors & Graduate Students o
• Focus effort on San Bernardino Residents
r
c
Cost Containment on Benefits/Health Care Reform E
• Private / Medicare exchange for retirees
• Maintain a high level of benefit at an affordable costYf°,
• Benefit Administration efficiencies Q
• Benefit Exchange Program (2014-2015) Renewal
Assist City Manager's Office with Program Operating Budget
• Prioritize Risk Management Program Cost and Allocation of Limited Resources
• Calculate Program Expenditures Associated with City Services
• Confirm Revenue Sources
• Work with City Departments to Establish Detailed Program Costs and Forecasted
Revenues
Packet Pg. 68
• Assist With the Development of Program Budget Performance Measurements
Work with Departments on Reorganizational Structure
• Cost saving Measures
• Efficient use of resources and avoid any duplication of effort within the Department
• Proper classification and compensation
Workers' Comp Carve-Out Program
• Develop a work plan with schedule to achieve the below items:
• Identify potential advantages for the injured worker
• Identify potential advantages for the employer z6
• Identify problems and goals,
• Design the carve-out to meet City goals
• Identify and follow the procedures to create a carve-out =
• Determine features for inclusion in the carve-out
• Develop agreed lists of providers: a
• Treating physicians that may be the exclusive source of all medical treatment
• An agreed, limited list of qualified medical evaluators and agreed medical N
evaluators that may be the exclusive source of qualified medical evaluators and c
agreed medical evaluators U
N
• Joint labor-management safety committee o
• A light-duty, modified job or return-to-work program °a�
• A vocational rehabilitation or retraining program that includes an agreed list of
providers of rehabilitation/retraining services that may be the exclusive source of a
providers of rehabilitation/retraining services.
• Define the role of the ombudsman, mediator, and arbitrator 0,
• Identify the role of attorneys N
• Third-party claims
• Development of mutual agreement
• Ongoing carve-out maintenance
Develop and Document Human Resources Procedures 0
W
• Disability Retirement Process o
• Industrial Disability can
• Non-Industrial Disability
0
Analysis of the City's Property and Excess Liability Insurances for Cost-Saving
Opportunities w
• Expand BICEP Services a
• Brokers Services for Property and General Liability
• Partner for Earth Quake Coverages to Reduce Premium Costs
• Research Opportunities to Join Insurance Authority Memberships
• Reduce Property Excess Coverage Layers to Reduce Overall Premium Cost
PacketPg•69