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