AGENDA REPORT. Honorable Mayor and Members of City Council Catherine Krysyna, Assistant Finance Manager
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1 Agenda No. 6B Page 1 of 2 CITY OF PACIFIC GROVE 300 Forest Avenue, Pacific Grove, California AGENDA REPORT TO: FROM: MEETING DATE: June 17, 2015 SUBJECT: CEQA Status: Honorable Mayor and Members of City Council Catherine Krysyna, Assistant Finance Manager Resolution authorizing extension of the existing contract with York Risk Services Group, Inc. for workers compensation claims management services Does Not Constitute a Project Per California Environmental Quality Act (CEQA) Guidelines RECOMMENDATION Approve a Resolution authorizing the City Manager to enter into a two-month extension to the City s existing contract with York Risk Services (York) for Workers Compensation Third Party Administration services. DISCUSSION York has provided Workers Compensation claims management services for the City since The scope of their work includes maintaining claim files and records, communicating with injured workers and their attorneys as to their rights and limitations, coordinating with and reporting to City staff on all claims and costs incurred, evaluating the validity of claims as reported and the appropriateness of requested treatments, working with specialty attorneys designated by the City, assisting with required annual State and Medicare reporting, reviewing and paying all claims associated bills, and monitoring the City s claims expense fund. The City s current agreement with York expires on June 30, The City issued a request for proposals (RFP) to solicit proposals from third party administrators to provide Workers Compensation services to the City. Of the five respondents, staff selected the top two for interviews. In discussions with the two candidates, it has been determined that more time is needed to review and evaluate the services offered and their comparative pricing. The current provider is one of the two being considered and has agreed to extend the current contract in order to allow the City the needed time to go through this process thoroughly and effectively. FISCAL IMPACT Extending the existing agreement with the current service provider for an additional two months will cost $7, That is not an increae to the budget, as these are necessary services and have been budgeted for.
2 Agenda No. 6B Page 2 of 2 ATTACHMENTS 1. York Agreement Amendment No RFP Response Comparison Spreadsheet 3. Resolution to extend the current contract RESPECTFULLY SUBMITTED, REVIEWED BY, Catherine Krysyna Assistant Finance Officer Thomas Frutchey City Manager
3 Agenda No. 6B, Attachment 1 Page 1 of 1 Amendment No. 1 to Agreement for Professional Services This Amendment No. 1 is made as of June 30, 2015 by and between the City of Pacific Grove, a political subdivision of the State of California (City) and York Risk Services Group, Inc., a New York Corporation, hereinafter referred to as York. City and York are collectively referred to as the Parties. RECITALS A. On or about July 1, 2012, City and York entered into an agreement for Workers Compensation Self-Insurance Claims Administration (The Agreement). B. The initial term of the Agreement was for a three-year period, ending on June 30, C. By way of this Amendment, the Parties desire to extend the term of the Agreement for an additional two month period. NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: AGREEMENT 1. Amend Terms and Conditions. The following sentence is hereby added to the end of paragraph number 1 titled Term of Agreement : This agreement is hereby extended for an additional two month period ending on August 30, Other Terms. All other terms and conditions of the Agreement remain unchanged and in full force. IN WITNESS WHEREOF, the Parties are signing this Amendment on the date stated in the introductory paragraph. York Risk Services Group, Inc. City of Pacific Grove Jody A. Gray Senior Vice President Thomas Frutchey City Manager
4 Agenda No. 6B, Attachment 2 Page 1 of 2
5 Agenda No. 6B, Attachment 2 Page 2 of 2
6 RESOLUTION NO. 15-xxx Agenda No. 6B, Attachment 3 Page 1 of 2 AGREEMENT WITH YORK RISK MANAGEMENT SERVICES TO EXTEND CURRENT CONTRACT FOR WORKERS COMPENSATION CLAIMS MANAGEMENT SERVICES FINDINGS 1. The City is required by law to provide Workers Compensation benefits to its employees who suffer on-the-job injuries; and 2. YORK Risk Management Services has provided Workers Compensation management services to the City for many years; and 3. The City wishes to continue those services for a two month period while completing the RFP process for a new contract; and 4. The action proposed by this Resolution does not constitute a Project as that term is defined under California Environmental Quality Act (CEQA), CEQA Guideline section NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE: 1. The Council determines that each of the Findings set forth above is true and correct, and by this reference incorporates those Findings as an integral part of this Resolution. 2. The City Manager is authorized to execute all documents and to perform all necessary City acts to enter into a two month extension to the current agreement with YORK Risk Management Services, Inc. and to allow for payment in accordance with and for the period of this contract extension. 3. This Resolution shall become effective immediately following passage and adoption hereof. PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 17th day of June, 2015, by the following vote: AYES: NOES: ABSENT: APPROVED:
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