CITY COUNCIL: Agreement with Tristar Risk Management for Processing Workers Compensation Claims

Meeting Date: July 1, 2008
Prepared by: Joyce Giuffre,
Admin. Services Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution amending the agreement with Tristar Risk Management for processing workers compensation claims.

Description: Effective July 1, 2006, the City entered into an agreement with Tristar Risk Management to process workers compensation claims related to the City’s self-insured policy. The City’s self-insured policy ended June 30, 2006. Tristar Risk Management continues to process the run-out claims related to this policy.

Due to lower claims activity, the agreement with Tristar was amended on July 1, 2007, and the annual claims administration fee was lowered to $30,000 based on an open claims volume of 20 files. The open claims volume now is down to 15 files. Effective July 1, 2008, the City wishes to execute a second amendment, per the Exhibit A amendment attached, to further reduce the cost of the annual claims administration fees from $30,000 to $25,200, resulting in annual savings of $4,800. The case management fees remain the same. The amended agreement will continue in full force and effect until June 30, 2009.

Overall Cost: City Funds: Annual cost of $25,200 plus case management fees, if necessary
Grant Funds: n/a

Staff Recommendation: Authorize the City Administrator to amend the agreement with Tristar Risk Management for the period July 1, 2008 through June 30, 2009.

Important Considerations: The amended agreement will result in annual savings o $4,800 in claims administration fees due to decreased claims volume.

Decision Record: None

Reviewed by:

______________________________ _________________
Rich Guillen, City Administrator Date


CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING THE AGREEMENT WITH TRISTAR RISK MANAGEMENT FOR PROCESSING WORKERS COMPENSATION CLAIMS
__________________________________________________________________
WHEREAS, the City entered into an agreement with Tristar Risk Management effective July 1, 2006, for processing workers’ compensation run-out claims associated with the City’s prior self-insured policy; and

WHEREAS, the City desires to amend the agreement effective July 1, 2008 through June 30, 2009 per the Exhibit “A” amendment attached, which will result in lower claims administration fees for the City.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Authorize the City Administrator to amend the agreement with Tristar Risk Management effective July 1, 2008 through June 30, 2009 per the Exhibit A amendment attached.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 1st day of July 2008 by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED,

_________________________
Heidi Burch, City Clerk

ATTEST:

_________________________
SUE McCLOUD, MAYOR