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