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THE CITY OF <br />-- ' ~ -~~ ~"' CITY COUNCIL AGENDA REPORT <br />~L£f~S~4NTONo <br />August 21, 2007 <br />Administrative Services Department <br />TITLE: AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT FOR <br />INNOVATIVE CLAIM SOLUTIONS, INC. TO PROVIDE THIRD-PARTY <br />ADMINISTRATION OF WORKERS' COMPENSATION CLAIMS <br />SUMMARY <br />Cities normally contract with third-party administrators to handle the specialized <br />responsibility of workers' compensation programs. This report recommends that the City <br />Council adopt the attached resolution authorizing athree-year contract for Innovative <br />Claim Solutions, Inc. (ICS) to continue providing third-party administration for workers' <br />compensation claims. ICS has been providing third-party administration for all city <br />workers' compensation claims since 2001 and has provided exceptional customer <br />service and efficient, consistent administration that is compliant with laws governing <br />workers' compensation programs. <br />RECOMMENDATION <br />Authorize the City Manager to execute athree-year contract with Innovative Claim <br />Solutions, Inc. to provide third-party administration for workers' compensation claims for <br />the City of Pleasanton. <br />FINANCIAL STATEMENT <br />The proposed administrative fee for this contract is $127,578 in fiscal year 2007/08, <br />$133,958 in fiscal year 2008/09 and $140,656 in fiscal year 2009/10. This reflects a <br />6.4% increase in year one from the previous contract and an additional 5% increase in <br />years two and three. The current budget includes $130,000 for these services. <br />