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City of San Leandro Meeting Date: April 17, 2017 Staff Report Agenda Section:File Number:17-181 CONSENT CALENDAR Agenda Number:8.L. TO:City Council FROM:Chris Zapata City Manager BY:Jeff Kay Assistant City Manager FINANCE REVIEW:David Baum Finance Director TITLE:Staff Report for a Resolution Approving a Consulting Services Agreement with Intercare Holdings Insurance Services, Inc. (“Intercare”) for Workers’ Compensation Third Party Claims Administration (TPA) Services for three years in the amount of $301,054 plus a flat fee structure for bill review charges estimated at $64,080 SUMMARY AND RECOMMENDATIONS Staff recommends the approval of a Consulting Services Agreement with Intercare Holdings Insurance Services, Inc. (“Intercare”) for Workers’ Compensation Third Party Claims Administration (TPA) Services for three years in the amount of $301,054 plus a flat fee structure for bill review charges estimated at $64,080. BACKGROUND The City of San Leandro is self-insured for its Workers’ Compensation program and uses a Third Party Administrator (TPA) for claims administration. The TPA’s responsibility is to manage, track, and process payments for all Workers’ Compensation claims reported. The City had contracted with JT2 Integrated Resources since June 1, 2014 for these services. The contract with JT2 expires May 30, 2017. In October 2015, a Request for Proposal (RFP) for Workers’ Compensation TPA services was issued in partnership with the Cities of Hayward and Newark. In response to the RFP, eight proposals were received from the following vendors: Acclamation Insurance Management Services Athens Administrators Hazelrigg Claims Management Services Innovative Claim Solutions, Inc. Intercare Holdings Insurance Services, Inc. JT2 Integrated Resources Page 1 City of San Leandro Printed on 4/10/2017 56