HomeMy WebLinkAboutContract 33179 CITY SECRETARY
CONTRACT NO, MO .
AMENDMENT NO. 2
TO CITY SECRETARY CONTRACT NO. 26923
This agreement is made and entered into by and between the City of Fort Worth
(the "City"), a home rule municipal corporation situation in Tarrant, Denton, and Wise
counties, Texas, acting by and through its duly authorized Assistant City Manager, and
CMI Barron Risk Management Services, Inc., a Texas Corporation, d/b/a CMI Barron
Risk Management ("Barron"), acting by and through Bart Griffin, its duly authorized
Executive Vice President.
WHEREAS, the City and Barron entered into City Secretary Contract No. 26923,
a professional services agreement for the administration of Workers' Compensation
claims ("the Agreement"), on May 22, 2001 ("Effective Date"); and
WHEREAS, on May 9, 2005, the City and Barron amended the Agreement to
increase the payments and to add performance goals in City Secretary Contract No.
31786; and
WHEREAS, the City and Barron desire to further amend the Agreement.
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, the City and Barron hereby agree to
further amend the Agreement as follows:
Section 1.
The period January 1, 2006, through December 31, 2006, as shown in Item 4,
Section C., page 14, of Fort Worth City Secretary Contract No. 26923 is hereby
amended and after having been so amended shall be and read as follows:
Claims administration will be for a twelve month time period. The City will pay twelve
monthly installments based on the total amount billed by Barron for claims administration
each month. Unless otherwise provided below, the total payments under this Agreement
shall not exceed $617,651. The claims handling charges are based on the following
estimates of claims per year: 763 Indemnity, 908 Medical only, 1 Record only.
CMI Barron has identified an M/WBE certified partner, Injury Management Organization,
of 6404 International Parkway, Suite 2200, Plano, Texas as the firm we will utilize to
provide medical case management services in conjunction with the administration of the
City's claims. CMI Barron will pay at least 6% of the contract price above, or$37,059.06
to the M/WBE contractor for medical case management services.
In accordance with Workers' Compensation fee guidelines below, and until dissolution of
fee guidelines and implementation of networks, at which time the discount rate may be
negotiated directly between the City or its Preferred Provider Network for Workers'
Compensation health care services, the City will be invoiced monthly for medical case
management services as incurred. If in any one contract year the total number of claims
Amendment No. 2 to CSC No. 26923
Claims Administration for Workers' Compensation Benefit Pian
CMI Barron Risk Management
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exceeds the estimates listed above, the City will be billed on a per claim basis for the
those claims in excess of the estimates above at the following rates:
Claim Services Cost
No Claim Reports $22.00 each
Medical Only Claims $113.00 each
Indemnity $675.00 each
(Lost Time claims requiring indemnification)
Conversion $91.00 each
(From a No claim report to a Medical only claim)
Conversion $653.00 each
(From a No claim report to an Indemnity claim)
Conversion $562.00 each
(From a Medical only claim to an Indemnity claim)
Takeover Claims (Injury date prior to 1/1/98) $400.00 each
(Encompassing adjusting services for the duration of this contract and any
extension periods)
Additionally, the City will pay the following service fees:
Service Fees Cost
Administrative Services $3,877.00 annually
(TWCC Representative)
Rehabilitation Services At Cost
Case Management Services $65.00 per hour
Telephonic At Cost
On-site At Cost
Loss Control $81.00 per hour
Safety Engineering At Cost
Computerized medical Audit $106,317.00 annual
(Includes pre-certification services)
Physicians fees At Cost
Note: pre-authorization charge if number of $69.00 per claim
Indemnity and medical only exceeds 1,453
Amendment No. 2 to CSC No. 26923
Claims Administration for Workers' Compensation Benefit Plan `
P
CMI Barron Risk ManagementL�"�
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fa
Data processing No Charge
Computer to Computer Dial in and read capability
Ad Hoc Reports
Litigation Preparation (optional) No Charge
Expenses will be
allocated
Utilization Reviews/Peer Reviews $65.00 per hour
(plus Physician fees)
Desk Audits At Cost
Allocated Expenses See Allocated
Expense Sheet
Additional Medical Reduction - For any medical service provided through CMI
Barron preferred provider network, any reduction below the TWCC fee schedule
shall be shared between parties on the basis of 73/27. (For example, for each
$100 of savings to the City, City shall pay CMI Barron $27).
Other approved networks At Cost
TDI WC Hearings
BRC No charge
CCH attendance $162.00 per CCH
Annual/Bi-annual Audits At Cost (no mark up)
Surety Bond At Cost (no mark-up)
Section 2.
All other terms and conditions of City of Fort Worth City Secretary Contract No.
26923 that are not amended herein shall continue in full force and effect.
[Signature Page Follows]
Amendment No. 2 to CSC No. 26923
Claims Administration for Workers' Compensation Benefit Plan ,
CMI Barron Risk Management `
LEXECUTED on this ,day of , 2006.
ATTEST: CITY F FORT WORT
By: - L L By: TQ�:�
Marth� H ndrix Richa Zavala
(� City Secretary ActingAssistant City Manager
Approval Recommended: CMI BARRON RISK MANAGEMENT
SERVICES INC. DIB/A BARRON RISK
MANAGEME
By: By:
Karen Marshall, Human Resources Director Bart Griffin, Executive Vice
President
Approved as to Form and Legality
Assistant Cky Attorney
M&C C-21201: Approved 12/20/05
Contract Authorization
Date
Amendment No. 2 to CSC No. 26923
Claims Administration for Workers' Compensation Benefit Plant
CMI Barron Risk Management
T,
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/20/2005
DATE: Tuesday, December 20, 2005
LOG NAME: 14BARRON REFERENCE NO.: **C-21201
SUBJECT:
Authorize Renewal of Contract with CMI Barron Risk Management Services, Inc., for Workers'
Compensation Claims Administration Service
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the fifth (of six) one-year
contract renewal options with CMI Barron Risk Management Services, Inc., for the period January 1, 2006
through December 31, 2006, for a cost not to exceed $617,651.
DISCUSSION:
On June 1, 2001, (M&C C-18593) the City Council awarded CMI Barron Risk Management Services, Inc.
the contract to administer Workers' Compensation claims for occupational injuries, with six options for one-
year renewals. CMI Barron Risk Management Services is responsible for ensuring that all medical
expenditures and compensation is 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 fifth renewal option with CMI Barron Risk Management
Services, Inc., effective January 1, 2006 through December 31, 2006, for an estimated cost not to exceed
$617,651.
CMI Barron Risk Management Services, Inc., is in compliance with the City's M/WBE Ordinance, by
committing to 6% M/WBE participation on this project. The City's M/WBE goal on this project is 5%.
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/C enters
FE73 534830 0147310 $617,651.00
Submitted for City Manager's Office b Richard Zavala (Acting) (6222)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Mark Washington (8058)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/13/2006