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.
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.
1. Approve agreement with Alternative Service Concepts
2. Such alternative action as the Commission may deem appropriate
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.
Department: Human Resources
Prepared by: Dann Herrin
Attachments: Yes___X_ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. ___________JB______
Deputy C.M. ___________________
City Manager ___________________
Account No. _065-1350-519-3110___
Project No. ___________________
WF 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.