| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
Council action is requested to enter a contract with Thomas McGee, LC for Self-funded Workers Compensation Claims Administrative Services as well as Liability claims management assistance, for one year with three one-year extensions. The City reserves the right to extend the contract under the same terms and conditions for additional one-year periods provided such extensions are mutually agreeable to the City and the provider and if funds are available to support the continuation of the contract. |
| | | | | | | | Recommendations:
Council approval to issue a contract. |
| | | | | | | | Executive Summary:
The City requires professional third-party workers’ compensation claims administrative services to support claim administration and payment for injured employees that occur within their scope of duties for the City. In addition, the City utilizes a professional third party to assist with some liability claims made against the City for which the City seeks direction/recommendation on coordination with legal counsel (as needed) and/or claim settlement. Thomas McGee, LC is recommended for a contract following a qualifications-based RFP process. |
| | | | | | | | Background:
The Procurement Division issued a Request for Proposals (RFP) for a self-funded workers’ compensation claims administrative services on October 2, 2023. The RFP was published on Public Purchase, the City’s e-bidding system, with notices sent to numerous potential respondents; 37 accessed the RFP. However, only the incumbent responded by the October 19, 2023, deadline. The last time the City conducted this RFP, a change was made to work with Thomas McGee and has experienced excellent services from them since that change.
A team comprised of City personnel from City Finance and Human Resources Department as well as members from Charlesworth Consulting (the City’s contract risk manager), evaluated the proposals. The evaluation criteria were: 1) expertise and experience of responding firm, 2) professional experience of personnel and claims management philosophy, 3) responsiveness to RFP, 4) experience with claims administration with public entities, 5) claim information system, and 6) fees.
Thomas McGee, LC has demonstrated strong attributes for their expertise and experience that spans across many public entity clients with sizable experience for workers’ compensation claims administration that follow the Missouri Statutes regarding such benefits. They also provide the City a valuable service regarding their assistance with liability claims management. Their office is located in the KC metro area; extensive knowledge and experience and continuing education to stay up with the ever-changing statutory requirements and claim fee schedules. Staff recommends award of a one-year contract with three one-year extensions to Thomas McGee, LC.
Approval of this item authorizes change orders up to ten (10) percent of the authorized amount, providing appropriations are available.
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Fiscal Impact:
The fiscal impact to the City is within the 2023-2024 adopted budget, page 162, as fees are “per claim” and can vary annually based on the claim activity the City is involved. Estimated annual amounts are $110,000 for workers’ compensation claims administration and $35,000 for liability claims administration. Payment is made under Funding Source 3471 (WC TPA) and Funding Source 3473 (Liability TPA).
Estimated annual amounts for the 2024-2025 proposed budget would be $121,000 for workers compensation claims administration and $38,500 for liability claims administration; Estimated annual amounts for the 2025-2026 proposed budget would be $133,100 for workers compensation claims administration and $42,350 for liability claims administration; Estimated annual amounts for the 2026-2027 proposed budget would be $146,410 and $46,585 for liability claims administration.
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| | | | | | | | | Department: Human Resources | Contact Person: Jaime Rehmsmeyer |
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| REVIEWERS: | | Department | Action | | Purchasing Division (Finance Department) | Approved | | Human Resources Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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