HomeMy WebLinkAboutContract 36319-R2 CITY SECRETARY CONTRACT NO. '3 1.c 31 q— R�t,
SECOND RENEWAL OF CITY SECRETARY CONTRACT NO. 36319
AGREEMENT FOR WORKERS' COMPENSATION CLAIMS ADMINISTRATION SERVICES
STATE OF TEXAS §
COUNTY OF TARRANT §
This Second Renewal of City Secretary Contract No. 36319,Agreement for Workers' Compensation Claims
Administration Services (the "Second Renewal") is made and entered into this.n_r1f\ day of December,
2011, by and between the City of Fort Worth ("CITY"), a home-rule municipal corporation of the State of
Texas, acting by and through its duly authorized Assistant City Manager, and CCS Consulting, L.P.
("CCS"), a Texas Limited Partnership, acting by and through the duly authorized President of CCS's
general partner, Contract Claim Services, Inc.
WITNESSETH:
WHEREAS, CITY and CCS entered into an Agreement for Workers' Compensation Claims
Administration Services, the same being City Secretary Contract No. 36319 (the "Agreement"); and
WHEREAS, in July 2010, CITY and CCS entered into a First Amendment to the Agreement (City
Secretary Contract No. 36319-A1) to allow CCS to provide medical cost containment services that were
previously furnished by a subcontractor; and
WHEREAS, the Agreement provides for an initial three-year term and the possibility of two
additional one-year renewal periods; and
WHEREAS, the City and CCS entered into a First Renewal agreement (City Secretary Contract
No. 36319-R1), which expires December 31, 2011; and
WHEREAS, CITY and CCS wish to continue in their relationship by exercising the second renewal
option.
NOW THEREFORE, CITY and CCS agree to renew and extend City Secretary Contract No.
36319, as amended, for a second Renewal Term as follows:
SECTION 1.
Fort Worth City Secretary Contract No. 36319 is hereby amended to revise Section 3, "Term and Renewal,"
to add the following:
3.4 CITY and CCS mutually agree to renew and extend City Secretary Contract No. 36319, as
amended by City Secretary Contract No. 36319-A1, for a one-year second Renewal Term,
beginning January 1, 2012 and ending December 31, 2012, under the same terms and
conditions ullpless OTherwig—eTulffffe—r—ailinended herein.
OFFICIAL RECORD'
CITY SECRETARY
Second Renewal of CSC 36319 ! Page 1 of 4 Pages
FT. WORTH, TX-, � ; -
SECTION 2.
For purposes of the second Renewal Term, Attachment A of Fort Worth City Secretary Contract No. 36319
is deleted in its entirety and replaced with the Attachment A appended to this Second Renewal.
SECTION 3.
All other terms and conditions of City Secretary Contract No. 36319, as amended by City Secretary
Contract 36319-A1, that are not amended herein shall remain in full force and effect throughout the second
Renewal Term.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment, this day of
0g,zr xLo r 2011.
CITY OF FORT WORTH: CCS CONSULTING, L.P.:
By: 'TAP
Bw
Suss anis, Assistant City Manager Lisa McManus, President
Contract Claim Services, Inc., General Partner or
CCS Consulting, L.P.
Approval Recommended:
By:
Karen Marshall, Human Reso rces Director
Approved as to Form and Legality:
Den C, McElro ,X ssistant City Attorney
Contract Authorization: M&C C-22526
Date Approved: November 27, 2007 44� F
Attest:
°
° G
B d
City Secretary
OFFICIAL RECORD'
CITY SECRETARY I
Second Renewal of CSC 36319 FT WORTH, TX Page 2 of 4 Pages
k I
ATTACHMENT A
SERVICES, FEES AND CHARGES SCHEDULES
January 1,2012 through December 31, 2012
SCHEDULE 1 Year 5
01/01/12
Claims Handling and Adjusting Service Fee Structure thru
Fees Billing Code 12/31/12
Claims handling and adjusting of
approximately 400 Lost Time claims and
900 medical only claims; set-up of FLAT ANNUAL
approximately 600 record-only claims FEE (4%ANNUAL 1 $701,914.72
annually; claims handling and adjusting of INCREASE)
approximately 800 open run-in or takeover
claims from the prior TPA.
Additional Claims Supervisor Annual Salary $90,000.00 annually
Additional Lost Time Adjuster Annual Salary 5 $70,000.00 annual)
Additional Medical Only Adjuster Annual Salary $60,000.00 annual)
Additional Clerical Staff Annual Salary $45,000.00 annually
SCHEDULE 2 Year 5
01/01/12
thru
Ancilla Claims Administration Services Fee Structure Billing Code 12/31/12
Data Conversion Services AT COST 3 AT COST
Custom-Designed Reports AT COST 3 AT COST
Off-Site Records Storage AT COST 1 AT COST
Microfiche Records AT COST 2 AT COST
General Safety,Accident Preventions, Loss Per Hour 2 $110.00 per Hour,
Control Services Maximum of 250 Hours
TDI-DWC Austin Representative AT COST 2 AT COST
Actuarial Services AT COST 2 AT COST
Claims Adjusting Services AT COST 2 AT COST
Bank Check Stock AT COST 2 AT COST
SCHEDULE 3 Year 5
01/01/12
VARIABLE CLAIMS EXPENSES thru
CHARGED/ALLOCATED TO CLAIM Fee Structure Billing Code 12/31/12
Computerized Medical Bill Auditing Per Bill 4 $6.00 per bill
Second Renewal of CSC 36319 Page 3 of 4 Pages
Medical Case Management Services Per Hour, plus
(includes Telephonic and Field Case Travel Mileage 4 $70.00 per hour, plus
Management) (excludes travel Mileage at$0.445/mile
wait time)
Preauthorization Services (Includes
Requests for Reconsideration and Per Request 4 $145.00 per Request
Physician Review Fees)
Utilization Reviews and Peer Reviews AT COST 4 AT COST
Required Medical Exam (RME)/
Designated Doctor(DD) Exam Coordination AT COST 4 AT COST
Maximum Medical Improvement(MMI)/
Impairment Rating IR) Review AT COST 4 AT COST
Per Hour, plus $75.00 per hour, plus
Vocational Rehabilitation Services Expenses Incurred 4 Mileage at$0.445/mile
Expert Accident Investigation, Loss Control
Services chargeable to claim files Per Hour 4 $110.00 per hour
Outside Attorney Representation AT COST 4 AT COST
Expert Witnesses, testimony and
associated travel expenses AT COST 4 AT COST
Court costs, fees, expenses AT COST 4 AT COST
Costs of depositions, court reporter and
transcript fees AT COST 4 AT COST
Copies of public records AT COST 4 AT COST
Copies of medical records AT COST 4 AT COST
Private investigation, surveillance, video
statements, photos, depositions AT COST 4 AT COST
Recorded Statement Transcriptions AT COST 4 AT COST
Express Mail, Certified Mail AT COST 4 AT COST
SCHEDULE 4
Services Provided at No Additional Cost
Adjuster Attendance at TDI-Division of Workers' Compensation Benefit Review Conference
Risk Management Information System (RMIS) Services
Ad Hoc Reports
Computer to Computer Access and Read Capability
Electronic Data Interchange (EDI) and E-billing Services
Adjuster Desk Audits
Scanning and Indexing current policy period claim files
Continuing Education Training Courses offered to adjusters
Insurance Services Organization (ISO) Claims Indexing
Billing Cod..
00
(1/12) of flat fee amount to be billed monthly to CITY
2 Monthly billing to CITY for services provided
3 Final billing to CITY upon completion of service
4 Bill to individual claim files (requires invoice)
5 Additional staffing subject to Sections 1.3.6 and 5 of Agreement
Second Renewal of CSC 36319 Page 4 of 4 Pages
FORT WORTH
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 1112712007
DATE: 11/27/2007 REFERENCE NO.: **C-22526 LOG NAME: 14SERVICES
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT: Award of Contract for Workers' Compensation Claims Administration Services to CCS
Consulting, L.P.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a three-year contract
with CCS Consulting, L.P., for Workers' Compensation claims administration services.
DISCUSSION:
The City Council has authorized a Workers' Compensation Self-Insurance Plan for the City of Fort
Worth and authorized the City Manager to contract for claims administration services since
1973. Currently, the City's self-insured Workers' Compensation claims administration program is
administered by a third party claims administrator(TPA), Sedgwick CMS/CMI Barron Risk
Management. The incumbent TPA has provided these services to the City since January 1, 1998,
and has paid claims expenses totaling $8,353,027 in FY2006-07.
The City's current Workers' Compensation claims administration contract expires on December 31,
2007, with no additional extensions for renewal as all six options have been exhausted under the
original contract (City Secretary Contract No. 26923). The Human Resources Department, through
the Purchasing Division of the Finance Department, issued a Request for Proposal (RFP) No. 07-
0090 on April 4, 2007, soliciting bids for a TPA to administer the City's Workers' Compensation
program.
Proposals were received from 13 companies in response to the City's RFP. An evaluation committee
comprised of employee representatives from City departments and Human Resources staff was
formed to review and evaluate the proposals received and make a formal recommendation based
upon evaluation criteria. McGriff, Seibels& Williams, the City's consultant/broker for Workers'
Compensation provided consulting services. Based on an evaluation of the proposals, the committee
identified the following three finalists:
• CCS Consulting, LP;
• TRISTAR Risk Management; and
• JI Companies.
Upon further review of the proposals. presentations, claims management systems and site visits of
the finalists. the evaluation committee and Human Resources staff recommend that the City of Fort
Worth contract with CCS Consulting, L P , because their proposal provides the best value for the
City. CCS Consulting, L.P., subscribes to a customer service philosophy that exemplifies standards of
Council Date: 2/10/2009
0
r service comparable to that of the City. CCS Consulting, L.P., provides risk management services
including Workers' Compensation claims handling and administration services, medical cost
containment and other medical management services for private sector employers, the Federal
government, and Texas political subdivisions.
CCS Consulting, L.P., is in compliance with the City's M/ BE ordinance by committing to 7 percent
MM/BE participation on this project.
Human Resources staff recommends the contract for Workers' Compensation claims administration
services be awarded to CCS Consulting, L.P., for a first year cost not to exceed $667,000, with a 4
percent increase in claims handling fees annually thereafter. The annual claims administration fees
for the initial three-year contract period would be as follows:
SERVICE TYPE YEAR 1 YEAR 2 YEAR 3
Claims Handling/Adjusting $ 600000.00 $ 624000.00 $ 648960.00
Other Administrative Expenses $67,000.00 $67,000.00 $67.000.00
Total Annual Costs $667000.00 $ 691000.00 $ 715960.00
RENEWAL OPTIONS - The contract will begin January 1, 2008, and expire December 31, 2010. This
agreement may be renewed for two one-year terms at the City's option. This action does not require
specific City Council approval, provided that the City Council has appropriated sufficient funds to
satisfy the City's obligations during the renewal term.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as
appropriated, of the Workers' Compensation Fund.
TO„Fund/Account/Centers FROM Fund/Account/Centers
FE73 5.34600 0147310 $667,000:00
Su_bmitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Mark Washington (8058)
ATTACHMENTS
Council Date: 2/10/2009