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HomeMy WebLinkAboutContract 35090i�i i�`t S��F��Ti�Fi� (�� ��NTR�,C�T �'�a ���,��1�� AMENDMENT NO. 3 TO CITY SECRETARY CONTRACT NO. 26923 CONTRACT FOR PROFESSIONAL SERVICES This Amend ent to Con ract for Professional Services (the "Amendment") is made and entered into this � day of ��y, 2007, by and between the City of Fort Worth ("City"), a home-rule municipal corporation situated in Tarrant, Denton and Wise Counties, Texas, acting by and through its duly authorized Assistant City Manager, and CMI Banon Risk Management Services, Inc., a Texas corporation, d/b/a/ CMI Barron Risk Management ("Barron"). WITNESSETH: WHEREAS, City and Barron have entered into a certain Contract for Professional Services, ("the Agreement") effective as of May 22, 2001 ("Effective Date"), same being City of Fort Worth City Secretary Contract ("CSC") NO. 26923; and WHEREAS, on May 9, 2005, the City and Bai-ron amended the Agreement to increase the payments and to add performance goals in which the amendment is styled as CSC No. 31786; and WHEREAS, City and Barron subsequently amended CSC No. 26923 by entering into Amendment No. 2, which is styled as CSC No. 33179 to inodify the payment schedule and certain services. NOW THEREFORE, in consideration of the foregoing and mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Barron hereby further agree to amend the Agreement as follows: SECTION 1. Section A., page 4, Item 24 of Fort Worth City Secretary Contract No. 26923 is hereby amended and after having so amended shall be and read as follows: Provide administrative setvices for the maintenance of all boolcs, documents, papers, accounting records and other evidence pei�taining to the claim costs incui7ed. The contractor shall malce such materials available to the City at all reasonable times during the term of the contract and for three (3) years from the date of closure of the last claim under this contract for inspection and audit by the City. Upon termination or expiration of the contract and until the final disposition of all claims or unless otherwise notified in writing by the City, the Contractor will continue to provide claims seivices and maintain files on all cases reported to it under this contract. Files created under this contract are and remain the property of the City of Fort Worth. Files closed after final disposition of the claim shall not be destroyed but instead returned to the City of Fort Worth, both the hard copy, if any, retained by the Contractor as well as electronic claim file documentation retained by the Contractor. The Contractor shall prepare and submit monthly reports in paper or electronic copy, as agreed by the parties, to the City listing: CMI Ban•on Risk Management Contract No. 26923, Amendment No. 3 Januaty 1, 2007 — December 31, 2007 a. the number of claims; b. the names of claimants; c. the amount of payment for each claim; d. the amount of reserves set up far future payments for each claim; e. the date of injury; f. the department of the City in which the claimant is employed; g. a distinction between the types of indemnification payments, medical payments; and h. accident and injury analysis. The Contractor shall also provide a monthly invoice for services and a statement of the City's account. SECTION 2. Section A., page 5, Item 29 of Fort Worth City Secretary Contract No. 26923 is hereby amended and after having so amended shall be and read as follows: Although this contract may expire or be terminated, provide full service for any open claims for the duration of the benefits authorized and/or to the final conclusion of the claim, or unless notified and instructed otherwise in writing by the City. The cost to the City for such services shall be at those prices in effect at the time the injury was incurred. No additional costs for claims administration services can be imposed during the life of any claim regat•dless of the time factor involved, prior to the final disposition of the claim. In the event that the City notifies contractor that pending claims and losses and closed claims are to revert to the custody and control of the City or its designated agent or representative, contractor shall, within 30 days, provide to the City or its designated agent or representative full, detailed and complete electronic records of all claims, including scanned images. Claim files and/or microfilm/fiche records of claim files shall be transferred to the custody and control of the City or its designated agent or representative as instructed by the City. The City shall pay all costs incurred in such file transfer. SECTION 3. The period January 1, 2007, tluough December 31, 2007, as shown in Item 4, Section C., page 16, of Fort Worth City Secretaty Conh�act No. 26923 is hereby ainended and after having so amended shall be and read as follows: The City will pay claiins administration services for twelve inonths of claims handling according to the following schedules: Schedule 1, Total Claims Adjusting and Administration Seivice Fees shall be paid by the City in twelve equal monthly installments of $55,804.50 each, for a total payment of $669,654.00. Schedule 2, Variable Service Fees shall be paid by the City based on monthly invoices submitted by Barron for 27% of actual PPO Network savings accrued to the benefit of the City. It is estimated that Schedule 2 Fees will be approximately $140,000 during the contract period. CMI Barron Risk Management 2 Contract No. 26923, Amendment No. 3 Januaiy 1, 2007 — December 31, 2007 Schedule 3, Claims Expense Fees shall be billed to the individual affected claim files and paid by Barron on behalf of the City through the City's trustee bank account. Schedule 4, Allocated Loss Adjustment Fees shall be billed to the individual affected claim files and paid by Barron on behalf of the City through the City's trustee bank account. Schedule 5, Optional Ancillary Service Fees shall be billed at cost when such services are required to be provided by the City. It is estimated that Schedule 5 Fees will be approximately $101,251.00 during the contract period. Schedule 6, Services shall be provided by Barron at no additional cost to the City. All Services, Fees and Charges under this contract are contained in the Schedules below. 2007 CONTRACT SERVICES, FEES AND CHARGES SCHEDULES SCHEDULE 1 Claims Adiustinq and Administration Service Fees Schedule 1 A- Claims Adiustinq Services Record Only Claims Handling Medical Only Claims Adjusting Lost Time Claims Adjusting Takeover Claims Adjusting for Injury Dates Prior to 1 /1 /98 Conversion from Record Only to Medical Only Claim Conversion from Record Only to Lost Time Claim Per Claim (Unit) Cost $23.00 $116.00 $692.00 $400.00 $93.00 $669.00 Conversion from Medical Only to Lost Time Claim 576.00 Schedule 1A Sub-Total Claims Adjusting Services Schedule 1 B- Other Claims Administration Services Per Month Cost TWCC Representative $331.17 Estimated Number of Claims 600 875 175 37 200 200 200 2287 Computerized Medical Bill Auditing 9 081.25 Schedule 1 B Sub-Total Other Claims Administration Services SCHEDULE 1A AND 1B SERVICE FEES M/WBE Contractor $3,158.75 SCHEDULE 1 TOTAL CLAIMS ADJUSTING AND CLAIMS ADMINISTRATION SERVICE FEES SCHEDULE 2- VARIABLE SERVICE FEES PPO Network Reduction Fees SCHEDULE3 Claim Expense Fees Charqed to Claim Files CM[ Barron Risk Management Contract No. 26923, Amendment No. 3 Januaiy 1, 2007 — December 31, 2007 27% of Amt. Saved Unit Cost Total Unit Estimate $13,800.00 $101,500.00 $121,100.00 $14,800.00 $18, 600.00 $133,800.00 $115,200.00 $518, 800. 00 Annual Cost $3,974.00 $108,975.00 $112,949.00 ;� - � i � $37,905.00 �669,654.00 Medical Case Management Services Telephonic On-Site Loss Control Services Preauthorization Charge * (* When the number of indemnity + medical only claims exceed 1,453) Utilization Reviews and Peer Reviews Adjuster Attendance at TDI-Division of Workers' Compensation Contested Case Hearing Safety Engineering Services Rehabilitation Services Computerized Medical Bill Audits - Physician Fees Outside Attorney Representation $66.00/hr. or At Cost At Cost $81.00/hr. $71.00/claim * SCHEDULE4 Allocated Loss Adiustment Fees - Charqed to Claim Files Court costs and fees Attorneys and hearing representatives Trial attendance Court reporter and transcript fees Witness fees and travel expense Expense to obtain copies of public records Private investigation, surveillance, video statements, or depositions Expenses chargeable to the defense of a particular claim Other extraordinary services perFormed by Barron at City's request Other extraordinary services, including but not limited to photocopying, travel, express mail, public records, and similar expenses as may be incurred by Barron in fulfilling its obligation beyond the normal level Outside investigations CCH/SOAH/Appeals Panel Reviews/APA Services Charpes Additional to Hourlv Rates: Photos Mileage Recorded Statement Transcriptions Long Distance Cost, Fax Express Mail, Certified Mail Photocopying Public Records Cassette Tapes MVD SCHEDULE5 Optional Ancillarv Services Outside audit services CM( Ban•on Risk Managemeut 4 Conh•act No. 26923, Amendment No. 3 Januaiy 1, 2007 — December 3 l, 2007 $66.00 $166.00 At Cost At Cost At Cost At Cost At Cost At Cost T & E $55/hr At Cost At Cost T & E $55/hr At Cost At Cost At Cost At Cost T & E $55/hr Pass through cost of Attorney $2.25/each $0.45/mile $3.50/page $2.00/page At Cost $0.25/page At Cost $3.00/each $10.00/each Unit Cost At Cost Dedicated computer, telephone equipment & other furniture and fixtures Check Stock Data Transfer Bonds or other policies required by City Off-site closed file storage Re-key of inedical bills if Barron's MCC not chosen to review bills IBNR or other actuarial audits Microfilming of claims files Scanning of claims files with DOI prior to 10/1/2004 Special Reports Surety Bond Transfer Pre-1/1/98 Files from prior TPAs SCHEDULE6 Services Provided at No Additional Cost Adjuster Attendance at TDI-Division of Workers' Compensation Benefit Review Conference Computer Data Processing Ad Hoc Reports Computer to Computer Access and Read Capability Adjuster Desk Audits Scanning current policy period claim files At Cost At Cost $100/hr; $2,500 maximum At Cost At Cost $0.75/bill At Cost At Cost $.08/ page $100/hr At Cost At Cost [previously at cost] Barron has identified an M/WBE certified partner, Injury Management Organization, of 4100 Midway Road, Suite ll45, Carrollton, Texas 75007 as the firm to provide medical case management setvices in conjunction with the administration of the City's claims. Barron will pay at least 6% of the Schedule lA and 1B service fees, or $37,905.00 to the M/WBE contractor for medical case management services. If during the contract year the total number of claims exceeds the number of claims specified in Schedule lA, the City will be billed on a per claim basis at the rates specified in Schedule lA. SECTION 4. City Secretary Contract 26923, Item 4, Section D is hereby amended to add a new paragraph 9, which shall be and read as follows: CMI Bai7on Risk Management (Barron) hereby waiyants to the City that Barron has made full disclosure in writing of any existing or potential conflicts of interest related to Bai-ron's services under this Agreement. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Bar�•on hereby agrees immediately to malce full disclosure to the City in writing for itself and its officers, agents and employees. Barron further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the pi-ior written approval of the City. Ban•on shall store and maintain CMI Barron Risk Management Contract No. 26923, Ainendinent No. 3 Januaiy l, 2007 — December 31, 2007 City Information in a secure manner and a manner reasonably recognized by industry standards as secure, and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Infoimation in any way. Barron shall notify the City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. SECTION 5 All other terms and conditions of City of Fort Worth City Secretary Contract No. 26923, as amended, continue in full force and effect. EXECUTED on this ��ay of ��� �, 2007. ATTEST: CITY OF FORT WORTH By: sy;r ��� �, ;,�'�i %i' � . �� ,, �; < Mart Hendrix Karen L. Montgomery �_f City Secretary Assistant City Manager and Chief Financial Officer A roval Recommended: CMI BARRON RISK MANAGEMENT SERVICES, INC. D/B/A BARRON RISK MANAGEMENT ,� ,, ��� /� ! f / , , , � � — �'' . -� By. �, � �� � .;//_ ,,,: �`�%:/ti By: ,�- �� � �==_�_ _ Karen Marshall " Kimberly Brdwn Human Resources Director Vice President Approved as to Form and Legality t, , , ` Assistant Ci Attorney 111G �-c%! Q l Contract Authorization ' 0 Date CMI Barron Risk Management 6 Contract No. 26923, Amendment No. 3 Ja�ivaiy 1, 2007 — December 31, 2007 Page 1 of 1 City of Fort Worth, Texas Mayor and Council Communication : ._ � . �. . �., ._ .- ��._s:�..�.�_��.�.�����s� r�- COUNCIL ACTION: Approved on 1/9/2007 �-. , __-..�,__: __--.__�Y =�.—.u�� _�_...-�� .. .: - _--,.��_._�_.��=-�� ---__ . .._ ___ �..��_s._�_�_4 -�._��._,_ :.e, DATE: Tuesday, January 09, 2007 LOG NAME: 14BARRON REFERENCE NO.: **C-21916 SUBJECT: Authorize Renewal of Contract with CMI Barron Risk Management Services, Inc., for Workers' Compensation Claims Administration Services R.'.:_-T_?�YS_-r�.�.F._ =�T' -'-i�.u���' 9P-c-.r.-.r�c�� �-_� =.�i �i_`:=.+r.�. 3_-. �.�a� E �-'.s.-- _-�-�-u--�.:_""a_�..�..».�+ic���..�_ -���. :=3 RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the sixth of six one-year contract renewal options with CMI Barron Risk Management Services, Inc., for the period January 1, 2007 through December 31, 2007, for a cost not to exceed $883,000.00. DISCUSSION: The City Council awarded CMI Barron Risk Management Services, Inc., the contract to administer Workers' Compensation claims for occupational injuries on June 1, 2001, with six options for one-year renewals (M&C C-18593). CMI Barron Risk Management Services is responsible for ensuring that all medical and indemnity benefits are paid according to the Texas Workers Compensation Act. CMI Barron Risk Management Services, Inc., has performed all aspects of the contract and services have been acceptable. City staff recommends exercising the sixth renewal option with CMI Barron Risk Management Services, Inc., effective January 1, 2007 through December 31, 2007. The total twelve-month contract cost is estimated at $883,000.00, which represents a 2.5% increase from the previous contract period. However, only nine months of the contract costs, $662,249.97, will be paid in fiscal year 2006-07. The remaining three months' costs of $220,750.03 will be paid in FY2007-08. CMI Barron Risk Management Services, Inc., is in compliance with the City's M/WBE Ordinance, by committing to six percent M/WBE participation on this project. The City's M/WBE goal on this project is five percent. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, the Workers' Compensation Fund. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office b�[; Originating Department Head: Additional Information Contact: FE73 534830 0147310 $662,249.97 Karen Montgomery (6222) Karen Marshall (7783) Ron Josselet (7766) http://www.cfwnet.org/council�acicet/Reports/mc�rint.asp 1 /25/2007