HomeMy WebLinkAbout05.M- Human Resources RESOLUTION (ID# 2935) DOC ID: 2935 C
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Helen Tran M/CC Meeting Date: 03/03/2014
Prepared by: Linda Wynn, (909) 384-5161
Dept: Human Resources 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 Vendor Services Agreement Between York Risk Services
Group, Inc., and the City of San Bernardino for Workers' Compensation Third Party Claims
Administrator Services. (#2935)
Current Business Registration Certificate: Yes
Financial Impact:
The annualized cost of this amendment is $335,000, which includes the amount of$76,629.50 to
provide services through the current fiscal year(2013/14). A portion of this amount ($25,484)
will be billed to the Water Department through Account No. 678-110-0057-5949; the remainder
being paid from Account No. 678-110-0057-5502, which is an Internal Service Fund.
It is requested that the amount of$77,000 be transferred from Account No. 678-110-0057-5181
to Account No. 678-110-0057-5502.
The Water Department participates in the City's Workers' Compensation Program. The annual
cost-share portion to the Water Department is estimated at$111,663 plus the cost of workers'
compensation claims paid. This will reduce the remainder of the City's contribution to $223,337,
which will be paid out of the Internal Service Fund.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
On March 18, 2013, the Mayor and Common Council authorized the execution of a Vendor
Services Agreement between York Risk Services Group, Inc., and the City of San Bernardino for
Workers' Compensation Third Party Claims Administrator Services (Resolution No. 2013-54).
Background:
On March 18, 2013, the Mayor and Common Council approved the agreement with York Risk
Services Group Inc. (York)to perform the workers' compensation claims administrative services
and to satisfy the State's self-insured certification requirement for workers' compensation.
York's integrated model offered the City a more efficient way of managing its program through
a single vendor, with minimal service disruption to staff, employees and, most importantly, the
injured worker by providing a single point of contact.
The out-sourcing process was a large undertaking and included a very detailed and meticulous
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Updated: 2/25/2014 by Jolena E.Grider C �cl�et �` �
5.M
2935
approach, with a priority to not interrupt workers' compensation benefits and to greatly improve
services in terms of accuracy and quality. The actual implementation took approximately 45 days
and included a higher-than-anticipated data file conversion of over 500 workers' compensation
claims, scanning and uploading individual claims file information into a paperless system, staff
training and system trouble shooting. York's local office has made this transition possible at a
measurable cost savings to the City.
The current City data on claims administration is trending an overall reduction in terms of open
claims versus closed claims (Exhibit`B"). Essentially,the City is closing workers' compensation
claims faster than opening claims. Based on nine (9) months of claims-paid data, the City's
estimated annual claims expenditure is $562,078 under the budgeted amount. This savings is
largely due to implementing best practice processes, professional claims administrative
procedures and medical and utilization review. Historically, workers' compensation paid claims
have exceeded the fiscal year's budgeted amounts.
This amendment will allow staff and York to further build on refining current processes and
achieve greater cost containment results. In the upcoming months, a complete years' worth of
claims administrative data will be reviewed to better focus on performance outcomes to include
indemnity losses, medical costs, average worker's time off, and time reduction for worker's
return to work. Exhibit "C" (attached) provides an annual cost analysis of the workers'
compensation claims. Staff and York will continue to develop opportunities to reduce medical
review timelines so that injured workers will receive faster and more effective medical care. This
is a very dynamic process and will require ongoing review and occasional adjustment to cost-
effective workers' compensation claims administration and benefits. It is for these cost-saving
efforts and claim administrative services that staff is recommending a one (1) year contract
amendment with the option to extend the contract for two (2), one-year terms, at the same flat
fee.
City Attorney Review:
Supporting Documents:
reso 2935 (PDF)
agrmt 2935 (PDF)
Exhibit B YTD graphs (PDF)
Exhibit C Workers' Comp Self Insured Annual Report FY (PDF)
Updated:2/25/2014 by Jolena E.Grider C Packet Pg. 196
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 THE VENDOR SERVICES AGREEMENT BETWEEN YORK
RISK SERVICES GROUP, INC,. AND THE CITY OF SAN BERNARDINO FOR
4 WORKERS' COMPENSATION THIRD PARTY CLAIMS ADMINISTRATOR
5 SERVICES.
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 of the City of San Bernardino is hereby authorized Z
p 8 �.
9 and directed to execute on behalf of said City a First Amendment to the Vendor Service E
10 Agreement between York Risk Services Group Inc. and the City of San Bernardino for a
11 Workers' Compensation Third Party Claims Administration Services, a copy of which is r_
12
attached hereto marked Exhibit "A" and incorporated herein by reference as fully as though 8
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set forth at length. �
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SECTION 2. The Director of Administrative Services is hereby authorized to do a
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16 budget transfer of $77,000 from Account No. 678-11-0057-5181 to Account No. 678-110-
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17 0057-5502. --
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SECTION 3. The Director of Administrative Services is hereby authorized to issue a 0
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20 Purchase Order to York Risk Services Group Inc. for Workers' Compensation Third Party d
21 Claims Administration Service, for a total annual amount not to exceed $335,000.00, with the
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22 option of two, one-year extensions, at the same flat fee. Q
23 SECTION 4. The authorization granted hereunder shall expire and be void and of no
24 further effect if the agreement is not executed by both parties and returned to the Office of the
25
City Clerk within sixty(60)days following the effective date of the Resolution.
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Packet Pg197
I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
2 OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
AMENDMENT TO THE VENDOR SERVICES AGREEMENT BETWEEN YORK
3 RISK SERVICES GROUP, INC,. AND THE CITY OF SAN BERNARDINO FOR
WORKERS' COMPENSATION THIRD PARTY CLAIMS ADMINISTRATOR
4 SERVICES.
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6
and Common Council of the City of San Bernardino at a meeting
7
thereof, held on the day of , 2014, by the following vote,to wit: z°
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9 Council Members: AYES NAYS ABSTAIN ABSENT -Eo
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10 MARQUEZ a
11
BARRIOS
12 N
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VALDIVIA
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14 SHORETT N
15 NICKEL c
16 JOHNSON M
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17 MULVIHILL W)
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20 Georgeann Hanna, City Clerk
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21 The foregoing Resolution is hereby approved this day of ,2014.
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23 R. Carey Davis, Mayor
24 City of San Bernardino
25 Approved as to form:
26 Gary D. jSaenz, City Attorney
27 B
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1 acK Pg. 198
EXHIBIT
FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND
YORK RISK SERVICES GROUP, INC.
THIS First Amendment is made and entered into as of March 3, 2094 by and between the City
of San Bernardino, a charter city ("City"), and York Risk Services Group. Inc. ("Vendor"). 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 March 18, 2013, the City and Vendor entered into a Vendor Services Agreement for
a total amount of two hundred ninety eight thousand five hundred and eighteen dollars c
and no cents ($298,518.00). Z
b. The parties now desire to amend the Agreement for an annual amount of three hundred
thirty five thousand dollars and no cents ($335,000.00) with two, one-year options to E
extend and amend the Agreement as set forth in this Amendment. _
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2, Section 2. Compensation of the Agreement is hereby amended to increase the amount a
that the City agrees to pay the Vendor, a flat fee not-to-exceed an annual amount of three
hundred thirty five thousand dollars and no cents ($335,000.00) with two, one-year options —
to extend at the same flat fee. City shall pay Vendor for services rendered pursuant to this
Agreement at the time and in the manner set forth herein. Z
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3. Section 3.1. Term of the Agreement is hereby amended to extend the term of the N
Agreement to March 18, 2015, unless the options to extend are implemented or the it
Agreement is previously terminated as provided for herein. L
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4. Except for the changes specifically set forth herein, all other terms and conditions of the LO
Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by M
and through their respective authorized officers, as of the date first above_writte.n. _._.__._...............
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CITY OF SAN BERNARDINO E
as
By: a
Allen Parker, City Manager Date E
CONSULTANT r
York Risk Services Group Inc.
a
By:
Jody Gray, Senior Vice President Date
Approved as to Form:
Gary D. Saenz, City Attorney
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Packet P9. 199
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Exhibit B
Opened/Closed WC Claims 2013-14 FY
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