AGENDA MEMORANDUM

Meeting Date:           December 19, 2011

From:                          Mike Thornton, Purchasing Manager

Subject:                      Purchase request 44228 to Preferred Governmental for workers compensation insurance administration fee

Staff Recommendation:

Staff recommends approval of the purchase request to Preferred Governmental for a total amount of $28,000.00.

Analysis:

The City is required to provide workers compensation insurance for its workforce.  The City is self insured for this coverage and therefore does not pay insurance premiums for workers compensation.  The City does however pay a third party, Preferred Governmental, to administer the workers compensation insurance program.

The vendor is responsible for processing of all claims and payments and charges the City an annual fee for these services.  This purchase request is for the payment of the fee to administer our self insured workers compensation insurance program.

Options:

1.  Approve the purchase request to Preferred Governmental Insurance Trust; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Funds in the amount of $28,000.00 are available in the 2012 fiscal year in the account listed for this purpose.

Submission Date and Time:    12/14/2011 7:44 PM____

Department: _Human Resources_______ Prepared by:  _Mike Thornton________                      Attachments:         Yes____   No ___X___ Advertised:   ____Not Required ___X__ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. _______JB_________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _065-1350-519.31-10___ Project No. __NA______________ WF No. _____NA_______________ Budget  _____$29,400.00_________ Available ____$28,998.26_________