AGENDA MEMORANDUM

Meeting Date:           August 10, 2009

From:                          J. Cunningham Perry, Director, Human Resources and Safety

Subject:                      Resolution approving agreement with Alternative Service Concepts

Agreement to provide third party claims administration for the City’s self-

                                    funded workers’ compensation program

Staff Recommendation:

Staff recommends approving a one year extension to the contract with Alternative Service Concepts to provide third party claims administration for the City’s self-funded workers’ compensation program.

Analysis:

The City of Leesburg maintains a self-funded workers’ compensation program compliant with Florida Statute 440. The City contracts with a third party administrator (TPA) to process and pay claims. On June 9, 2003, the City Commissioners approved a contract with Unisource Administrators to provide TPA services to the City. In August 2008, Unisource Administrators was purchased by Alternative Service Concepts.

Due to a significant reduction in the number of workers’ compensation claims filed by injured City employees last year, staff has been able to negotiate a 15% decrease in the administration fees charged by Alternative Service Concepts. From 2005 through 2007, the City averaged 78 workers’ compensation claims per year with an average annual claims experience of $271,784. In 2008, the City experienced only 58 claims or a 26% decrease in claims from prior years and a loss experience of $77,734 which represents a 71% decrease from prior years. This significant reduction in claims and loss experience can be attributed to our employees working more safely on the job.

Options:

1.  Approve agreement with Alternative Service Concepts

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

 The fee for workers’ compensation claims administration under the proposed one year extension with Alternative Service Concepts will be $28,000 as compared to $32,960 last year.

Submission Date and Time:    8/7/2009 2:56 PM____

Department: Human Resources Prepared by:  Dann Herrin                     Attachments:         Yes___X_   No ______ Advertised:   ____Not Required ______ 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. _065-1350-519-3110___ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO.____________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A ONE YEAR CONTRACT EXTENSION WITH ALTERNATIVE SERVICE CONCEPTS TO PROVIDE ADMINISTRATION SERVICES FOR THE CITY’S SELF-FUNDED WORKERS’ COMPENSATION PROGRAM; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Alternative Service Concepts whose address is 6010 Cattleridge Boulevard, Suite 103, Sarasota, Florida  34232, for administration services for the City’s self-funded workers’ compensation program.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __10th__ day of ___August______ 2009.

                                                                            __________________________________

                                                                             Mayor

ATTEST:

__________________________________

City Clerk