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1 <br /> THE CITY OF <br /> lig CITY COUNCIL AGENDA REPORT <br /> pLEASANTONo <br /> June 21, 2011 <br /> Administrative Services <br /> TITLE: APPROVE CONTRACT WITH INNOVATIVE CLAIM SOLUTIONS, <br /> INC. TO PROVIDE THIRD-PARTY ADMINISTRATION OF WORKERS' <br /> COMPENSATION CLAIMS <br /> SUMMARY <br /> The City of Pleasanton utilizes the services of a third-party administrator to handle <br /> claims administration, reporting and compliance requirements in the specialized field of <br /> workers' compensation. The City's Human Resources division conducted a request for <br /> proposal process (RFP) and ultimately interviewed two firms. Innovative Claim <br /> Solutions, Inc., the City's current provider since 2001, quoted the lower fee and has <br /> provided exceptional service in past years. <br /> RECOMMENDATION <br /> Approve the contract for services with Innovative Claim Solutions, Inc. for three years, <br /> with the option to extend by an additional two years, to provide third-party administration <br /> for workers' compensation claims for the City of Pleasanton and authorize the City <br /> Manager to execute the contract. <br /> FINANCIAL STATEMENT <br /> The proposed administrative fee for the three year contract is $452,379. An optional <br /> fourth year and fifth year are available at $156,744 and $159,818 respectively. There <br /> are sufficient funds in the 2011/2012 FY Budget to cover these expenses. <br />