(3)AR 020309 Tristar - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF FEBRUARY 3, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ANTHONY ARROYO, HUMAN RESOURCES DIRECTOR SUBJECT: Approve the Contract Extension with Tristar—the City of Colton's Workers' Compensation Third Party Administrator DATE: January 22, 2009 BACKGROUND: ITEM #3 In June 2006, the City of Colton entered into a three year contract with Tristar, the city's third party administrator for work-related injuries. The initial contract amount for Year 1 was $56,746, Year 2 was $57,732 and Year 3 is currently $60,788. These costs include all labor associated with the administration of work-related injuries (i.e., contacting the injured employee, arranging for doctor visits, follow up letters, etc.). The cost for doctor's visits, surgery or subrogation is not included in this cost. Tristar has provided superb service to the city's employees and has assured cost- effectiveness in regard to work-related injuries. DISCUSSION/ANALYSIS: A one year contract extension for FY 2009-10 is being sought in order to continue with uninterrupted service through June 30, 2010. The contract amount for the one year extension will be $62,916, which still maintains the 3.5% annual increase as was stipulated in the original contract. The Human Resources Department is very satisfied with the level of attention each injured employee receives; in addition, Tristar is one of the few companies in compliance with the mandated changes involving workers' compensation that took effect last year. The city's Purchasing Ordinance allows for contract extensions to be signed by the city manager upon Council approval (§3.08.070(g)). Section 3.08.140 (E) of the CMC authorizes the Council to waive the formal proposal process for professional services agreements when the City Manager determines that it is in the best interest of the City and its Administrative operations to dispense with public bidding. The City Manager believes it is in the best interest of the City in this case because staff has been very busy with various negotiations pertaining to other liability issues, preparing for safety meetings with all departments, and facilitating the administration of the CAUOSHA mandated Injury and Illness Prevention Program. There is not sufficient time to complete a request for proposal and to interview the various companies who respond to the request for proposals. The cost of $62,916 is commensurate with what other agencies of Colton's size are paying. The City of Colton does not pay for any additional administrative services unlike many contracts that are customary for other municipalities. FINANCIAL IMPACT: The one year extension will cost $62,916. Funds will be included in the 2009-10 FY to cover this cost. ENVIRONMENTAL IMPACT: None. Report for One Year Contract Extension with Tristar 01-22-09 (BBK REVISE).doc01/21/09 Pagel of 2