SUBJECT/RECOMMENDATION:
Title
Approve the initial one-year renewal term in the Agreement with Commercial Risk Management, Inc., of Tampa, Florida, for the management and administration of workers compensation claims and two additional one-year renewal terms, pursuant to City Code Section 2.564 (l) (i), for services associated with Workers Compensation exempt from bidding for a not-to-exceed total of $75,000; and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The Risk Management Division of the Finance Department has a current agreement approved by City Council in February 2018, expiring January 31, 2019, with Commercial Risk Management, a third-party administrator, for administration of workers compensation claims including lost time claims, claims involving litigation, complex medical claims, and medical only claims (when warranted).
The annual contract presented retains the same fee structure as the current agreement.
For indemnity/lost time claims the fee is $1,000, and for medical-only claims, $250. Complicated medical-only claims, and/or claims needing investigation have a fee of $500.
The second annual term of this Agreement will commence February 1, 2019 and will have two additional renewal term options to be documented in writing by both parties.
The retention of Commercial Risk Management to administer and manage our more complex and litigative claims will provide Risk Management and the City greater effectiveness in the investigative and fiscal management of our Workers Compensation claims program if needed. We project that a maximum of 20 - 25 claims annually will be referred for their services.
APPROPRIATION CODE AND AMOUNT:
Account # 5909830-530300 $75,000