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CITY OF COLTON <br />AGENDA REPORT/CONSENT CALENDAR <br />FOR CITY COUNCIL MEETING OF JUNE 01, 1999 <br />TO: Honorable Mayor and City <br />APPROVAL: Henry Garcia, City Manage�(/// / <br />FROM: Dennis Morris, Human Res lft�rce Direct ay & <br />Joanne Knowles/Risk Safety Analyst (� <br />SUBJECT: Contract: Award Contract for Self -In ured Workers' Compensation Claims <br />Administration to Tristar Risk Management <br />DATE: May 19,1999 <br />BACKGROUND: The City currently has an agreement with Hazeingg Risk Management for administration of <br />workers' compensation claims and related services. The existing agreement is a two-year agreement that expires <br />on Jure 30, 1999. <br />DISCUSSION/ANALYSIS: Requests for proposal were sent out to fifteen (15) firms with a deadline to <br />respond of April 15, 1999; five (5) proposals were submitted. Personnel staff interviewed all five firm. Annual <br />flat fee rates presented ranged from $46,600 through $61,800. The decision for selection was based on the <br />following: proposal and firm presentation, experience in adjusting; early claims resolution, customer response, <br />philosophy, computer technology; reports, claim reporting, and outside references. <br />The City's Risk Management Division of the Personnel Department has continually provided excellent employee <br />medical care, training, response, and service. Due to continual cost contamment measures, our City has realized <br />a 50% drop in claims over the past nine years. Because of this decline, we were offered more economical pricing <br />for our workers' compensation TPA rates this contract period. <br />Although many of the firms were well qualified, staff felt that Tristar Risk Management met and exceeded all <br />requirements of the proposal. Their firm has also included training, on line service, cost containment reporting, <br />and first year conversion in their three-year annual fee structure. <br />FINANCIAL IMPACT: The amount is budgeted in Self -Insurance Account No. 605-8600-8601-2350. This <br />contract will lock in the service fee for three years, thereby, saving the City $43,800 plus any additional <br />service fee increases. <br />RECOMMENDATION: That City Council authorize staff to enter into a three-year agreement with Tristar <br />Risk Management and authorize the City Manager to execute the agreement on behalf of the City. <br />PREPARED BY: Joanne Knowles <br />05-24-99 y�,{{ <br />Workers' Compensation TPA Awar&agm& report Item # 16 <br />