Laserfiche WebLink
City of San Leandro <br />City Council <br />Meeting Date: June 5, 2023 <br />Agenda Number: 10.b. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 23-229 <br />File Type: Staff Report <br />Adopt a Resolution to Approve and Authorize the City Manager to Execute an Amendment to the <br />Consulting Services Agreement with Intercare Holdings Insurance Services, Inc. for Workers’ <br />Compensation Third Party Claims Administration Services for a Not-to-Exceed Amount of $577,409 <br />within a three-year period <br />COUNCIL PRIORITY <br />·Infrastructure <br />SUMMARY <br />The City’s Consulting Services Agreement (CSA) with Intercare Holdings Insurance Services, Inc. <br />(“Intercare”) for Workers’ Compensation Third Party Claims Administration (TPA) services will <br />expire on June 30, 2023. An amendment to the CSA will ensure uninterrupted services in <br />Workers’ Compensation administration. <br />RECOMMENDATIONS <br />Staff recommends City Council approve and authorize the City Manager to execute an <br />amendment to the CSA with Intercare for three years for a not-to-exceed amount of $577,409 , <br />which includes $371,503.32 administration fee plus a flat fee structure for bill and utilization <br />review charges estimated at $205,905. <br />BACKGROUND <br />In late 2015, a Request for Proposal (RFP) for Workers’ Compensation TPA services was issued <br />in partnership with the Cities of Hayward and Newark. After a comprehensive review and <br />evaluation process, Intercare was selected as the most qualified TPA to provide workers’ <br />compensation claims administration services for the City. On June 1, 2017, the City Council <br />approved a three-year CSA with Intercare and provided the City Manager with the option to <br />extend the contract for an additional three years. On July 7, 2000, the contract was extended <br />during the onset of the COVID-19 pandemic through June 30, 2023. A new RFP will be initiated <br />prior to the expiration of this extended contract. <br />Analysis <br />Since 2017, Intercare has provided quality service, operational efficiency, and cost savings in the <br />administration of the City’s workers’ compensation claims. Staff was able to negotiate the lowest <br />renewal option and if authorized, the existing contract will be extended for three years ending <br />Page 1 City of San Leandro Printed on 5/31/2023